Highlights:
- First-quarter 2012 GAAP earnings per diluted share of $0.21
increased 31% from GAAP earnings per diluted share of $0.16 in the
first quarter of 2011
- First-quarter 2012 non-GAAP earnings per diluted share of $0.44
increased 33% from the non-GAAP earnings per diluted share of $0.33
in the first quarter of 2011
- Company reaffirms 2012 full-year guidance for both non-GAAP
earnings per diluted share and operating cash flow less capital
expenditures
R.R. Donnelley & Sons Company (Nasdaq:RRD)
today reported first-quarter net earnings attributable to common
shareholders of $37.4 million, or $0.21 per diluted share, on net
sales of $2.5 billion compared to net earnings of $33.9 million, or
$0.16 per diluted share, on net sales of $2.6 billion in the first
quarter of 2011. First-quarter 2012 net earnings attributable to
common shareholders included pre-tax charges for restructuring
($40.7 million) and impairment ($9.3 million, non-cash), a loss on
debt extinguishment ($12.1 million), acquisition-related expenses
($0.3 million) and a $19.8 million pre-tax favorable adjustment to
accounts receivable for prior periods' over-accruals of rebates
owed to certain customers within the office products reporting unit
in the U.S. Print and Related Services segment. First-quarter 2011
net earnings attributable to common shareholders included pre-tax
charges for restructuring ($42.7 million) and impairment ($8.1
million, non-cash) and acquisition-related expenses ($0.4
million).
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.
Non-GAAP net earnings attributable to common shareholders
totaled $78.8 million, or $0.44 per diluted share, in the first
quarter of 2012 compared to $68.6 million, or $0.33 per diluted
share, in the first quarter of 2011. First-quarter non-GAAP
net earnings attributable to common shareholders exclude
restructuring and impairment charges and acquisition-related
expenses for both years as well as the loss on debt extinguishment
in 2012. For non-GAAP comparison purposes, the effective tax
rate decreased to 29.3% in the first quarter of 2012 from 32.7% in
the first quarter of 2011, resulting from a release of valuation
allowances on deferred tax assets within Europe. A
reconciliation of GAAP net earnings attributable to common
shareholders to non-GAAP net earnings attributable to common
shareholders is presented in the attached schedules.
"We are pleased with our first-quarter results," said Thomas J.
Quinlan III, RR Donnelley's President and Chief Executive
Officer. "The revenue trend improved from the fourth quarter
of 2011, reflecting a favorable trend in customer demand and new
customer wins that we added to the platform during the
quarter. We expect this improved trend, in conjunction with
our continuing cost management efforts, to have a positive impact
going forward."
Business Review
The Company reports its results in two reportable
segments: 1) U.S. Print and Related Services and 2)
International. The Company reports as Corporate its
unallocated expenses associated with general and administrative
activities.
Summary
Net sales in the quarter were $2.5 billion, down $58.6 million,
or 2.3%, from the first quarter of 2011. Pro forma for
acquisitions, net sales decreased 2.7%, due to volume declines in
certain product offerings, price erosion and a 76 basis point
unfavorable impact of changes in foreign exchange rates, partially
offset by an adjustment to accounts receivable for prior periods'
over-accruals of rebates owed to certain customers within the
office products reporting unit. Gross margin of 23.0% in the
first quarter of 2012 declined from 24.3% in the first quarter of
2011 as an unfavorable product mix, pricing pressure and the
reinstatement of the Company's 401k plan match more than offset
lower pension expense and the impact of the rebate
adjustment. SG&A expense as a percentage of net sales in
the first quarter of 2012 improved to 11.2% from 12.7% in the first
quarter of 2011 primarily due to productivity improvements as well
as lower pension and variable compensation expenses. Operating
earnings of $121.4 million, which were impacted by restructuring
and impairment charges and acquisition-related expenses totaling
$50.3 million in the first quarter of 2012, compared to operating
earnings of $109.4 million in the first quarter of 2011, which
included restructuring and impairment charges and
acquisition-related expenses totaling $51.2 million.
Excluding restructuring and impairment charges and
acquisition-related expenses, non-GAAP operating margin improved to
6.8% in the first quarter of 2012 from 6.2% in the first quarter of
2011. Lower pension expense, the customer rebate adjustment,
lower depreciation and amortization, productivity improvements and
lower variable compensation expense more than offset an unfavorable
product mix and continued pricing pressure.
Segments
Net sales for the U.S. Print and Related Services segment
decreased 3.1% from the first quarter of 2011 to $1.9 billion in
the first quarter of 2012. Pro forma for acquisitions, net
sales in the segment decreased 3.6%, as volume declines in books
and directories, variable print and financial print, lower
pass-through paper sales and continued pricing pressure across the
segment more than offset the customer rebate adjustment and volume
increases in logistics. The segment's operating income of
$139.2 million in the first quarter of 2012, which was negatively
impacted by charges for restructuring and impairment of $39.7
million, decreased $2.7 million from operating income of $141.9
million in the first quarter of 2011, which included charges for
restructuring and impairment of $38.2 million. The segment's
non-GAAP operating margin of 9.5% in the first quarter of 2012
improved 20 basis points from the first quarter of 2011, as
productivity improvements, the customer rebate adjustment, lower
depreciation and amortization, and lower variable compensation
expense more than offset volume declines, an unfavorable product
mix, pricing pressure and a lower recovery on by-products.
Net sales for the International segment of $643.5 million
increased slightly from the first quarter of 2011. Volume
growth in business process outsourcing, Asia and Latin America and
higher pass-through paper sales in Europe were mostly offset by a
$19.7 million (307 basis points) unfavorable impact of changes in
foreign exchange rates, volume declines in Europe and the impact of
continued pricing pressure across the segment. The segment's
operating income of $30.6 million in the first quarter of 2012,
which was negatively impacted by charges for restructuring and
impairment of $5.4 million, decreased $13.5 million from operating
income of $44.1 million in the first quarter of 2011, which
included charges for restructuring and impairment of $9.2
million. The segment's non-GAAP operating margin declined to
5.6% in the first quarter of 2012 from 8.3% in the first quarter of
2011 as pricing pressure, wage and other inflationary increases in
certain countries and an unfavorable product mix were only
partially offset by lower depreciation and amortization and lower
variable compensation expense.
Unallocated Corporate operating expenses decreased to $48.4
million in the first quarter of 2012 as compared to $76.6 million
in the first quarter of 2011. Excluding charges for restructuring
and impairment and acquisition-related expenses totaling $5.2
million in the first quarter of 2012 and $3.8 million in the first
quarter of 2011, unallocated Corporate operating expenses decreased
$29.6 million to $43.2 million in the first quarter of
2012. Lower pension expense, a lower provision for bad debt,
productivity improvements and lower variable compensation expense
were partially offset by the reinstatement of the 401k match and
higher benefits-related expense.
Outlook - 2012 Full-Year Guidance
For the full year of 2012, the Company continues to project
non-GAAP net earnings per diluted share to be in the range of $1.84
to $1.92. This guidance assumes no additional shares are
repurchased pursuant to the current authorization from the
Company's board of directors. The non-GAAP effective tax rate
for 2012 is expected to be in the range of 29% to 32%. GAAP net
earnings per diluted share in 2012 may include restructuring and
impairment charges, acquisition-related expenses, the resolution of
certain tax items and other items that are not currently
determinable, but may be significant. For that reason, the
Company is unable to provide full-year GAAP net earnings estimates
at this time. In addition, the Company continues to project
2012 operating cash flow less capital expenditures of at least $500
million.
Conference Call
RR Donnelley will host a conference call and simultaneous
webcast to discuss its first-quarter results today, Wednesday, May
2, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The
live webcast will be accessible on RR Donnelley's web site:
www.rrdonnelley.com. Individuals wishing to participate can
join the conference call by dialing 847.413.9014, confirmation
number 32251771. 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. The Company works collaboratively with more
than 60,000 customers worldwide to develop custom communications
solutions that reduce costs, drive top-line growth, 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
services to 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.
| R. R. Donnelley &
Sons Company |
| Condensed Consolidated Balance
Sheets |
| As of March 31, 2012 and
December 31, 2011 |
| (UNAUDITED) |
| (in millions, except per share
data) |
| |
|
|
| |
March 31,
2012 |
December 31,
2011 |
| Assets |
|
|
| |
|
|
| Cash and cash equivalents |
$ 415.0 |
$ 449.7 |
| Receivables, less allowance for doubtful
accounts |
1,858.8 |
1,844.2 |
| Income taxes receivable |
44.3 |
32.4 |
| Inventories |
518.9 |
510.9 |
| Prepaid expenses and other current
assets |
137.7 |
131.4 |
| Total Current Assets |
2,974.7 |
2,968.6 |
| Property, plant and equipment -
net |
1,802.8 |
1,854.6 |
| Goodwill |
2,228.2 |
2,222.1 |
| Other intangible assets - net |
568.3 |
590.3 |
| Other noncurrent
assets |
638.8 |
646.1 |
| Total
Assets |
$ 8,212.8 |
$ 8,281.7 |
| |
|
|
| Liabilities |
|
|
| |
|
|
| Accounts payable |
$ 973.8 |
$ 1,063.3 |
| Accrued liabilities |
758.4 |
817.0 |
| Short-term and current portion of
long-term debt |
346.8 |
243.7 |
| Total Current Liabilities |
2,079.0 |
2,124.0 |
| Long-term debt |
3,408.5 |
3,416.8 |
| Pension liability |
1,050.4 |
1,076.3 |
| Postretirement benefits |
227.8 |
227.3 |
| Other noncurrent
liabilities |
355.3 |
375.1 |
| Total
Liabilities |
7,121.0 |
7,219.5 |
| Equity |
|
|
| |
|
|
| Common stock, $1.25 par value |
303.7 |
303.7 |
| Authorized shares: 500.0 |
|
|
| Issued shares: 243.0 in 2012 and
2011 |
|
|
| Additional paid-in capital |
2,823.3 |
2,888.7 |
| Retained earnings |
333.4 |
342.4 |
| Accumulated other comprehensive
loss |
(820.6) |
(863.3) |
| Treasury stock, at cost, 62.7 shares in
2012 (2011 - 64.5 shares) |
(1,567.4) |
(1,628.8) |
| Total RR Donnelley shareholders'
equity |
1,072.4 |
1,042.7 |
| Noncontrolling
interests |
19.4 |
19.5 |
| Total
Equity |
1,091.8 |
1,062.2 |
| Total Liabilities and
Equity |
$ 8,212.8 |
$ 8,281.7 |
| |
| |
| R. R. Donnelley &
Sons Company |
| Condensed Consolidated
Statements of Operations |
| For the Three Months Ended
March 31, 2012 and 2011 |
| (UNAUDITED) |
| (in millions, except per share
data) |
| |
|
| |
For the
Three Months Ended March 31, |
| |
2012 GAAP |
ADJUSTMENTS TO
NON-GAAP |
2012 NON-GAAP |
2011 GAAP |
ADJUSTMENTS TO
NON-GAAP |
2011 NON-GAAP |
| Products |
$ 2,196.5 |
$ -- |
$ 2,196.5 |
$ 2,266.4 |
$ -- |
$ 2,266.4 |
| Services |
328.4 |
-- |
328.4 |
317.1 |
-- |
317.1 |
| Total net sales |
2,524.9 |
-- |
2,524.9 |
2,583.5 |
-- |
2,583.5 |
| |
|
|
|
|
|
|
| Products cost of sales (exclusive of
depreciation and amortization) |
1,702.9 |
-- |
1,702.9 |
1,726.8 |
-- |
1,726.8 |
| Services cost of sales (exclusive of
depreciation and amortization) |
242.1 |
-- |
242.1 |
229.4 |
-- |
229.4 |
| Selling, general and administrative expenses
(exclusive of depreciation and amortization) |
283.5 |
(0.3) |
283.2 |
326.9 |
(0.4) |
326.5 |
| Restructuring and impairment
charges-net |
50.0 |
(50.0) |
-- |
50.8 |
(50.8) |
-- |
| Depreciation and
amortization |
125.0 |
-- |
125.0 |
140.2 |
-- |
140.2 |
| Total operating expenses |
2,403.5 |
(50.3) |
2,353.2 |
2,474.1 |
(51.2) |
2,422.9 |
| Income from
operations |
121.4 |
50.3 |
171.7 |
109.4 |
51.2 |
160.6 |
| |
|
|
|
|
|
|
| Interest expense - net |
60.7 |
-- |
60.7 |
57.9 |
-- |
57.9 |
| Investment and other (income) expense -
net |
(1.2) |
-- |
(1.2) |
0.2 |
-- |
0.2 |
| Loss on debt extinguishment |
12.1 |
(12.1) |
-- |
-- |
-- |
-- |
| |
|
|
|
|
|
|
| Earnings before income
taxes |
49.8 |
62.4 |
112.2 |
51.3 |
51.2 |
102.5 |
| |
|
|
|
|
|
|
| Income tax expense |
11.9 |
21.0 |
32.9 |
17.0 |
16.5 |
33.5 |
| |
|
|
|
|
|
|
| Net
earnings |
37.9 |
41.4 |
79.3 |
34.3 |
34.7 |
69.0 |
| |
|
|
|
|
|
|
| Less: Income attributable to noncontrolling
interests |
0.5 |
-- |
0.5 |
0.4 |
-- |
0.4 |
| |
|
|
|
|
|
|
| Net earnings attributable to RR
Donnelley common shareholders |
$ 37.4 |
$ 41.4 |
$ 78.8 |
$ 33.9 |
$ 34.7 |
$ 68.6 |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Earnings per share attributable to RR
Donnelley common shareholders: |
|
|
|
|
|
|
| Basic net earnings per share |
$ 0.21 |
|
$ 0.44 |
$ 0.16 |
|
$ 0.33 |
| Diluted net earnings per share |
$ 0.21 |
|
$ 0.44 |
$ 0.16 |
|
$ 0.33 |
| Weighted average common shares
outstanding: |
|
|
|
|
|
|
| Basic |
179.4 |
|
179.4 |
207.2 |
|
207.2 |
| Diluted |
180.4 |
|
180.4 |
209.8 |
|
209.8 |
| |
|
|
|
|
|
|
| The
Company believes that certain non-GAAP measures, when presented in
conjunction with comparable GAAP 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
this indicator. These measures should be considered in addition to,
not a substitute for, or superior to, measures of financial
performance prepared in accordance with GAAP. |
| |
| |
| R.R. Donnelley &
Sons Company |
| Reconciliation of GAAP to
Non-GAAP Measures |
| For the Three Months Ended
March 31, 2012 and 2011 |
| (UNAUDITED) |
| (in millions, except per share
data) |
| |
|
|
|
|
|
|
|
|
| |
For the Three Months
Ended March 31, 2012 |
For the Three Months
Ended March 31, 2011 |
| |
Income from operations |
Operating margin |
Net earnings attributable to common
shareholders |
Net earnings attributable to common
shareholders per diluted share |
Income from operations |
Operating margin |
Net earnings attributable to common
shareholders |
Net earnings attributable to common
shareholders per diluted share |
| GAAP basis measures |
$ 121.4 |
4.8% |
$ 37.4 |
$ 0.21 |
$ 109.4 |
4.2% |
$ 33.9 |
$ 0.16 |
| |
|
|
|
|
|
|
|
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
| Restructuring charges (1) |
40.7 |
1.6% |
27.0 |
0.15 |
42.7 |
1.7% |
28.8 |
0.14 |
| Impairment charges (2) |
9.3 |
0.4% |
6.2 |
0.03 |
8.1 |
0.3% |
5.5 |
0.03 |
| Acquisition-related expenses (3) |
0.3 |
-- |
0.3 |
0.00 |
0.4 |
0.0% |
0.4 |
0.00 |
| Loss on debt extinguishment (4) |
-- |
-- |
7.9 |
0.05 |
-- |
-- |
-- |
-- |
| Total Non-GAAP adjustments |
50.3 |
2.0% |
41.4 |
0.23 |
51.2 |
2.0% |
34.7 |
0.17 |
| Non-GAAP measures |
$ 171.7 |
6.8% |
$ 78.8 |
$ 0.44 |
$ 160.6 |
6.2% |
$ 68.6 |
$ 0.33 |
| |
|
|
|
|
|
|
|
|
| (1) Restructuring charges
(pre-tax): Operating results for the three months ended March
31, 2012 and 2011 were affected by the following restructuring
charges: |
| |
|
|
|
|
|
|
|
|
| |
2012 |
2011 |
|
|
|
|
|
|
| Employee termination costs (a) |
$ 36.8 |
$ 24.8 |
|
|
|
|
|
|
| Other charges (b) |
3.9 |
17.9 |
|
|
|
|
|
|
| Total restructuring
charges |
$ 40.7 |
$ 42.7 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| (a) employee
termination costs resulted from the reorganization of sales and
administrative functions across all segments, as well as facility
closures and the reorganization of certain operations. |
| |
|
|
|
|
|
|
|
|
| (b) includes lease
termination and other facility costs. |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| (2) Impairment charges
(pre-tax): Operating results for the three months ended March
31, 2012 and 2011 were affected by the following impairment
charges: |
| |
|
|
|
|
|
|
|
|
| |
2012 |
2011 |
|
|
|
|
|
|
| Other long-lived asset
impairments |
9.3 |
8.1 |
|
|
|
|
|
|
| Total impairment
charges |
$ 9.3 |
$ 8.1 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| (3) Acquisition-related
expenses: Legal, accounting and other expenses associated with
acquisitions completed or contemplated. |
| |
|
|
|
|
|
|
|
|
| (4) Loss on debt
extinguishment: Pre-tax loss of $12.1 million on the
repurchase of $341.8 million of 4.95% senior notes due April 1,
2014 and $100.0 million of 5.50% senior notes due May 15,
2015. |
| |
| |
| R. R. Donnelley &
Sons Company |
| Segment GAAP to Non-GAAP
Operating Income and Margin Reconciliation |
| For the Three Months Ended
March 31, 2012 and 2011 |
| (UNAUDITED) |
| (in millions) |
| |
|
|
|
|
| |
U.S. Print and Related
Services |
International |
Corporate |
Consolidated |
| |
|
|
|
|
| For the Three Months Ended
March 31, 2012 |
|
|
|
|
| Net sales |
$ 1,881.4 |
$ 643.5 |
$ -- |
$ 2,524.9 |
| Operating expense |
1,742.2 |
612.9 |
48.4 |
2,403.5 |
| Income (loss) from operations |
139.2 |
30.6 |
(48.4) |
121.4 |
| Operating margin % |
7.4% |
4.8% |
nm |
4.8% |
| |
|
|
|
|
| Non-GAAP Adjustments |
|
|
|
|
| Restructuring charges |
31.7 |
4.4 |
4.6 |
40.7 |
| Impairment charges |
8.0 |
1.0 |
0.3 |
9.3 |
| Acquisition-related expenses |
-- |
-- |
0.3 |
0.3 |
| Total Non-GAAP adjustments |
39.7 |
5.4 |
5.2 |
50.3 |
| |
|
|
|
|
| Non-GAAP income (loss) from
operations |
$ 178.9 |
$ 36.0 |
$ (43.2) |
$ 171.7 |
| Non-GAAP operating margin % |
9.5% |
5.6% |
nm |
6.8% |
| |
|
|
|
|
| Depreciation and amortization |
87.6 |
27.5 |
9.9 |
125.0 |
| Capital expenditures |
27.1 |
11.1 |
7.1 |
45.3 |
| |
|
|
|
|
| For the Three Months Ended
March 31, 2011 |
|
|
|
|
| Net sales |
$ 1,941.1 |
$ 642.4 |
$ -- |
$ 2,583.5 |
| Operating expense |
1,799.2 |
598.3 |
76.6 |
2,474.1 |
| Income (loss) from operations |
141.9 |
44.1 |
(76.6) |
109.4 |
| Operating margin % |
7.3% |
6.9% |
nm |
4.2% |
| |
|
|
|
|
| Non-GAAP Adjustments |
|
|
|
|
| Restructuring charges |
31.3 |
8.7 |
2.7 |
42.7 |
| Impairment charges |
6.9 |
0.5 |
0.7 |
8.1 |
| Acquisition-related expenses |
-- |
-- |
0.4 |
0.4 |
| Total Non-GAAP adjustments |
38.2 |
9.2 |
3.8 |
51.2 |
| |
|
|
|
|
| Non-GAAP income (loss) from
operations |
$ 180.1 |
$ 53.3 |
$ (72.8) |
$ 160.6 |
| Non-GAAP operating margin % |
9.3% |
8.3% |
nm |
6.2% |
| |
|
|
|
|
| Depreciation and amortization |
99.9 |
30.4 |
9.9 |
140.2 |
| Capital expenditures |
17.3 |
25.8 |
4.0 |
47.1 |
| |
| |
| R. R. Donnelley &
Sons Company |
| Condensed Consolidated
Statements of Cash Flows |
| For the Three Months Ended
March 31, 2012 and 2011 |
| (UNAUDITED) |
| (in millions) |
| |
|
|
| |
|
|
| |
2012 |
2011 |
| Operating
Activities |
|
|
| |
|
|
| Net earnings |
$ 37.9 |
$ 34.3 |
| Adjustment to reconcile net earnings to
net cash used in operating activities |
179.0 |
151.3 |
| Changes in operating
assets and liabilities |
(268.9) |
(192.8) |
| Net cash used in operating
activities |
$ (52.0) |
$ (7.2) |
| |
|
|
| Net cash used in investing
activities |
$ (46.3) |
$ (64.3) |
| |
|
|
| Net cash provided by (used in)
financing activities |
$ 52.0 |
$ (56.4) |
| |
|
|
| Effect of exchange rate on cash and cash
equivalents |
11.6 |
8.1 |
| |
|
|
| Net decrease in cash and cash
equivalents |
$ (34.7) |
$ (119.8) |
| |
|
|
| Cash and cash equivalents at beginning of
period |
449.7 |
519.1 |
| |
|
|
| Cash and cash equivalents at
end of period |
$ 415.0 |
$ 399.3 |
| |
| |
| R.R. Donnelley &
Sons Company |
| Reconciliation of Reported to
Pro Forma Net Sales |
| For the Three Months Ended
March 31, 2012 and 2011 |
| (UNAUDITED) |
| (in millions) |
| |
|
|
|
| |
Reported net sales |
Adjustment for net sales of acquired
businesses |
Pro forma net sales |
| For the Three Months Ended
March 31, 2012 |
|
|
|
| U.S. Print and Related Services |
$ 1,881.4 |
$ -- |
$ 1,881.4 |
| International |
643.5 |
-- |
643.5 |
| Consolidated |
$ 2,524.9 |
$ -- |
$ 2,524.9 |
| |
|
|
|
| For the Three Months Ended
March 31, 2011 |
|
|
|
| U.S. Print and Related Services |
$ 1,941.1 |
$ 11.3 |
$ 1,952.4 |
| International |
642.4 |
-- |
642.4 |
| Consolidated |
$ 2,583.5 |
$ 11.3 |
$ 2,594.8 |
| |
|
|
|
| Net sales
change |
|
|
|
| U.S. Print and Related Services |
(3.1%) |
|
(3.6%) |
| International |
0.2% |
|
0.2% |
| Consolidated |
(2.3%) |
|
(2.7%) |
| |
|
|
|
| |
| The reported results of the
Company include the results of acquired businesses from the
acquisition date forward. The Company has provided this
schedule to reconcile reported net sales for the three months ended
March 31, 2012 and 2011 to pro forma net sales as if the
acquisitions took place as of January 1, 2011. |
| |
|
|
|
| There were no acquisitions during
the three months ended March 31, 2012. |
| |
|
|
|
| For the three months ended
March 31, 2011, the adjustment for net sales of acquired businesses
reflects the net sales of Journalism Online (acquired March 24,
2011), Helium, Inc. (acquired June 21, 2011), Sequence Personal LLC
(acquired August 15, 2011), LibreDigital, Inc. (acquired August 16,
2011), Genesis Packaging & Design Inc. (acquired September 6,
2011) and StratusGroup, Inc. (acquired November 21, 2011). |
| |
| |
| R.R. Donnelley
& Sons Company |
| Liquidity
Summary |
| As of March 31, 2012 and
December 31, 2011 |
| (UNAUDITED) |
| (in millions) |
| |
|
|
| |
|
|
| Total Liquidity (1) |
March 31, 2012 |
December 31, 2011 |
| Cash (2) |
$ 415.0 |
$ 449.7 |
| Committed Credit Agreement (3) |
1,518.7 |
1,417.7 |
| |
1,933.7 |
1,867.4 |
| Usage |
|
|
| Borrowings under Credit Agreement |
327.0 |
65.0 |
| |
|
|
| Net Available Liquidity |
$ 1,606.7 |
$ 1,802.4 |
| |
|
|
| |
|
|
| (1) Liquidity does not
include credit facilities of non-U.S. subsidiaries, which are
uncommitted facilities. |
| |
|
|
| (2) Approximately 89% of cash
as of March 31, 2012 and as of December 31, 2011 was located
outside the U.S., most of which is subject to U.S. federal income
taxes and local country taxes if repatriated to the U.S. In
addition, repatriation of some foreign cash is further restricted
by local laws. |
| |
|
|
| (3) $1.75 billion unsecured
and committed credit agreement (the "Credit Agreement") expiring on
December 17, 2013. The Credit Agreement contains a financial
covenant that limits total debt to four times adjusted EBITDA (as
defined in the Credit Agreement) for the last twelve months as
described therein. Based on the results of operations for the three
months ended March 31, 2012 and existing debt at that date, the
current amount available under the Credit Agreement at March 31,
2012 is $1.2 billion. See the table below for a reconciliation of
the stated amount to the current availability. |
| |
|
|
| |
March 31, 2012 |
|
| Stated amount of Credit Agreement |
$ 1,750.0 |
|
| Less: availability reduction from
covenants |
231.3 |
|
| Total amount available |
1,518.7 |
|
| Less: borrowings under Credit
Agreement |
327.0 |
|
| Current availability at March 31,
2012 |
$ 1,191.7 |
|
CONTACT: Media:
Doug Fitzgerald
EVP, Communications
630.322.6830
doug.fitzgerald@rrd.com
Investors:
Dave Gardella
SVP, Investor Relations
312.326.8155
david.a.gardella@rrd.com
Donnelley (R.R.) & Sons Co. (NYSE:RRD.WI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Donnelley (R.R.) & Sons Co. (NYSE:RRD.WI)
Historical Stock Chart
From Jul 2023 to Jul 2024
