Net sales for the third quarter were $1,040 million versus $1,109 million for the same period in 2011. Third quarter 2012 Adjusted EBITDA was $155 million compared to $174 million for the same period in 2011, and Adjusted EBITDA margin was 14.9% as compared to 15.6% in 2011. The quarterly results reflect expected volume declines as well as pricing pressures on print and byproduct sales. Partially offsetting these impacts in the quarter were lower selling, general and administrative costs and $23 million in incremental synergy savings.
For the first nine months of 2012 net sales were $2,964 million versus net sales of $3,109 million for the same period in 2011, reflecting expected volume and price pressures. Year-to-date Adjusted EBITDA was $393 million versus $431 million in 2011, reflecting lower volumes and pricing pressures on print and byproduct sales, partially offset by lower selling, general and administrative costs and incremental synergy savings. Recurring Free Cash Flow was $220 million for the first nine months of 2012 compared to $143 million in the first nine months of 2011, continuing a track record of solid cash flow generation.
“We continue to generate significant Recurring Free Cash Flow to support our disciplined capital deployment strategy, which we adjust based on current circumstances and what we think is best for shareholder value creation. As a result, we are raising our original guidance for full-year 2012 Recurring Free Cash Flow from in excess of $300 million to now equal or surpass the $340 million we generated in fiscal 2011,” said John Fowler, Executive Vice President & Chief Financial Officer. “We are also proud of the progress we continue to make in managing our debt to maintain a strong balance sheet, which provides us with the flexibility to adjust to changing economic conditions. Despite being in our peak season for working capital, we repaid $16 million in debt during the quarter and $148 million year-to-date. Our quarter-end leverage ratio of 2.25x remains within our targeted range of 2.0x to 2.5x.”