08.04.21
R.R. Donnelley & Sons Company (RRD) reported financial results for the second quarter of 2021.
Net sales in the second quarter were $1.15 billion, up $136 million or 13.5% from the same period in 2020. The increase includes higher volume reflecting strengthening demand for most of the company’s products and services. Notably, higher demand for e-commerce sales have contributed to four consecutive quarters of net sales growth in the company’s Packaging and Labels products. Net sales also grew in the quarter due to continued recovery from the COVID-19 pandemic.
Income from operations was $28.2 million in the second quarter of 2021 compared to loss from operations of $19 million in the second quarter of 2020. The second quarter of 2021 included net restructuring, impairment and other charges of $9.7 million, a decrease of $18.7 million from the prior year period primarily due to lower consulting and employee termination costs.
GAAP operating margin improved 440 bps while non-GAAP improved by 150 bps, driven by leverage on increased sales volumes and aggressive cost-out actions.
Total debt is down $494 million from a year ago. Gross leverage ratio of 3.8x improved 0.9x from June 30, 2020; net leverage ratio of 3.3x improved 0.6x from the same period.
“RRD delivered strong second quarter performance as we continue to successfully execute our strategic initiatives while protecting the health and safety of our global colleagues,” said Dan Knotts, RRD president and CEO. “Our double-digit organic sales growth, driven by an improving market and increased volumes in our strategic product categories, marked our fourth consecutive quarter of improving sales trends. Through our ongoing actions to strengthen our core and enhance our financial flexibility, we reported Q2 adjusted income from operations that surpassed our pre-pandemic earnings in 2019 and our debt was at the lowest second quarter level since the spin.”
Net sales in the second quarter were $1.15 billion, up $136 million or 13.5% from the same period in 2020. The increase includes higher volume reflecting strengthening demand for most of the company’s products and services. Notably, higher demand for e-commerce sales have contributed to four consecutive quarters of net sales growth in the company’s Packaging and Labels products. Net sales also grew in the quarter due to continued recovery from the COVID-19 pandemic.
Income from operations was $28.2 million in the second quarter of 2021 compared to loss from operations of $19 million in the second quarter of 2020. The second quarter of 2021 included net restructuring, impairment and other charges of $9.7 million, a decrease of $18.7 million from the prior year period primarily due to lower consulting and employee termination costs.
GAAP operating margin improved 440 bps while non-GAAP improved by 150 bps, driven by leverage on increased sales volumes and aggressive cost-out actions.
Total debt is down $494 million from a year ago. Gross leverage ratio of 3.8x improved 0.9x from June 30, 2020; net leverage ratio of 3.3x improved 0.6x from the same period.
“RRD delivered strong second quarter performance as we continue to successfully execute our strategic initiatives while protecting the health and safety of our global colleagues,” said Dan Knotts, RRD president and CEO. “Our double-digit organic sales growth, driven by an improving market and increased volumes in our strategic product categories, marked our fourth consecutive quarter of improving sales trends. Through our ongoing actions to strengthen our core and enhance our financial flexibility, we reported Q2 adjusted income from operations that surpassed our pre-pandemic earnings in 2019 and our debt was at the lowest second quarter level since the spin.”
