RR Donnelley Provides Full-Year 2011 Guidance and Announces Fourth Quarter and Full-Year 2011 Earnings Conference Call on Feb...
January 16 2012 - 8:00PM
R.R. Donnelley & Sons Company (Nasdaq:RRD)
today announced expected full-year 2011 free cash flow (cash flow
from operations less capital expenditures) to be in the range of
$650 million to $700 million, an increase from the previous
guidance that called for free cash flow of approximately $600
million. Revenue is expected to be $10.6 billion, non-GAAP
operating margin is expected to be 6.6% to 6.7%, non-GAAP effective
tax rate is expected to be 23% to 24% and fully-diluted weighted
average share count is expected to be 196 million to 197 million.
All other previous guidance issued in November is generally
consistent with expected results. Previous guidance is posted under
the investors / presentations section of our website
at www.rrd.com.
"We are pleased that free cash flow exceeded expectations," said
Thomas J. Quinlan III, RR Donnelley's President and Chief Executive
Officer. "Our debt continued to decline in the fourth quarter,
and we expect to close 2011 comfortably within our targeted gross
leverage range of 2.5x to 3.0x. In 2012, despite an elevated
level of pension funding as previously communicated, we expect to
once again generate strong free cash flow of over $500
million. We continue to target a range of 2.5x to 3.0x gross
leverage on a sustainable basis, recognizing that at times we will
operate outside of this range. We look forward to providing a
full update on 2011 performance as well as additional guidance for
2012 on our February 22 conference call."
For 2011, non-GAAP operating margin excludes restructuring and
impairment charges, a pension curtailment gain, acquisition-related
expenses and other items, the exact amount of which are not
currently determinable, but which may be significant. For
that reason, the company is unable to provide GAAP operating
earnings estimates at this time.
Furthermore, the expected 2011 non-GAAP results are subject to
completion of the Company's year-end accounting processes, which
include the finalization of several potentially significant items
that could affect these results. These items include, among others,
the valuation of accounts receivable and inventories and estimation
of certain liabilities. Final results could also be affected
by certain subsequent events in accordance with GAAP.
The Company believes that certain non-GAAP measures, when
presented in conjunction with comparable GAAP (Generally Accepted
Accounting Principles) measures, are useful because that
information is an appropriate measure for evaluating the Company's
operating performance. Internally, the Company uses this
non-GAAP information as an indicator of business performance, and
evaluates management's effectiveness with specific reference to
these indicators. These measures should be considered in
addition to, not a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP.
Fourth-quarter and full-year 2011 earnings conference
call
The Company will release its financial results for the fourth
quarter and full year ended December 31, 2011 on Wednesday,
February 22, before the market opens. On the same day, at 9:00am
Central time, management will host a conference call to be
broadcast simultaneously over the internet to review the company's
results. The live webcast will be accessible on RR Donnelley's web
site: http://www.rrd.com.
Individuals wishing to dial in to the call should register in
advance at http://www.meetme.net/rrd. After
registering, participants will receive dial-in numbers, a passcode,
and a personal identification number (PIN) that is used to uniquely
identify their presence and automatically join them into the audio
conference. Participants who do not wish to register in
advance can join the call by dialing 847-413-9014 and use
confirmation number 31610164.
A webcast replay will be archived on the Company's web site for
30 days after the call. In addition, a telephonic replay of
the call will be available for seven days at 630-652-3042, passcode
9850121#.
About RR Donnelley
RR Donnelley (Nasdaq:RRD) is a global provider of integrated
communications. Founded more than 147 years ago, the Company
works collaboratively with more than 60,000 customers worldwide to
develop custom communications solutions that reduce costs, enhance
ROI and ensure compliance. Drawing on a range of proprietary
and commercially available digital and conventional technologies
deployed across four continents, the Company employs a suite of
leading Internet-based capabilities and other resources to provide
premedia, printing, logistics and business process outsourcing
products and services to leading clients in virtually every private
and public sector.
For more information, and for RR Donnelley's Corporate Social
Responsibility Report, visit the company's web site at
http://www.rrdonnelley.com.
Use of Forward-Looking Statements
This news release contains "forward-looking statements" as
defined in the U.S. Private Securities Litigation Reform Act of
1995. Readers are cautioned not to place undue reliance on
these forward-looking statements and any such forward-looking
statements are qualified in their entirety by reference to the
following cautionary statements. All forward-looking
statements speak only as of the date of this news release and are
based on current expectations and involve a number of assumptions,
risks and uncertainties that could cause the actual results to
differ materially from such forward-looking statements. The
Company does not undertake to and specifically declines any
obligation to publicly release the results of any revisions to
these forward-looking statements that may be made to reflect future
events or circumstances after the date of such statement or to
reflect the occurrence of anticipated or unanticipated
events. The factors that could cause material differences in
the expected results of RR Donnelley include, without limitation,
the following: the successful execution and integration of
acquisitions and the performance of the company's businesses
following acquisitions; the ability to implement comprehensive
plans for the integration of the sales force, cost containment,
asset rationalization and other key strategies; competitive
pressures in all markets in which the company operates; the
volatility and disruption of the capital and credit markets, and
adverse changes in the global economy; our ability to access
unsecured debt in the capital markets and the reliability of the
participants to our contractual lending and insurance agreements;
factors that affect customer demand, including changes in postal
rates and postal regulations, changes in the capital markets,
changes in advertising markets, the rate of migration from
paper-based forms to digital format, customers' budgetary
constraints and customers' changes in short-range and long-range
plans; customers financial strength; shortages or changes in
availability, or increases in costs of, key materials (such as ink,
paper and fuel); and other risks and uncertainties described in RR
Donnelley's periodic filings with the Securities and Exchange
Commission (SEC). Readers are strongly encouraged to read the
full cautionary statements contained in RR Donnelley's filings with
the SEC.
CONTACT: Media Contact: Doug Fitzgerald,
Executive Vice President Communications
Tel: 630-322-6830
E-mail: doug.fitzgerald@rrd.com
Investor Contact: Dave Gardella,
Senior Vice President Investor Relations
Tel: 312-326-8155
E-mail: david.a.gardella@rrd.com
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