RR Donnelley Reports Fourth-Quarter And Full-Year 2012 Results

Highlights:
  • Company achieved or exceeded the high end of its previous guidance on revenue, non-GAAP operating margin and cash flow as follows:
 
  Full-year 2012 Guidance Full-year 2012 Actual
Revenue $10.1 to $10.2 billion $10.2 billion
Non-GAAP Operating margin 7.2% to 7.3% 7.3%
Free Cash Flow (1) Approximately $450 million $486.0 million
 
(1) Defined as Operating Cash Flow less Capital Expenditures
  • Company reduced total debt by $221.9 million in 2012, ending the year with gross leverage of 2.8x

Fourth-quarter summary:
  • Fourth-quarter 2012 revenue of $2.7 billion declined 2.2% from the fourth quarter of 2011
  • Fourth-quarter 2012 GAAP loss per diluted share of $4.70, compared to GAAP loss per diluted share of $1.78 in 2011; GAAP results include non-cash impairment charges of $1.0 billion, or $5.04 per diluted share, in the fourth quarter of 2012 and $488.5 million, or $2.25 per diluted share, in the fourth quarter of 2011
  • Fourth-quarter 2012 non-GAAP earnings per diluted share of $0.43, compared to non-GAAP earnings per diluted share of $0.46 in the fourth quarter of 2011

Full-year summary:
  • Full-year 2012 revenue of $10.2 billion declined 3.7% from 2011
  • Full-year 2012 GAAP loss per diluted share of $3.61, compared to GAAP loss per diluted share of $0.63 in 2011; GAAP results include non-cash impairment charges of $1.0 billion, or $5.11 per diluted share, in 2012 and $531.5 million, or $2.26 per diluted share, in 2011
  • Full-year 2012 non-GAAP earnings per diluted share of $1.86, compared to non-GAAP earnings per diluted share of $1.82 in 2011

CHICAGO, Feb. 26, 2013 (GLOBE NEWSWIRE) -- R.R. Donnelley & Sons Company (Nasdaq:RRD) today reported a 2012 fourth-quarter net loss attributable to common shareholders of $849.0 million, or $4.70 per diluted share, on net sales of $2.7 billion compared to a net loss of $326.7 million, or $1.78 per diluted share, on net sales of $2.7 billion in the fourth quarter of 2011. The fourth-quarter net loss attributable to common shareholders included pre-tax net charges, primarily related to non-cash impairment, totaling $1.0 billion in 2012 and $483.9 million in 2011. The non-cash impairment charges followed our annual impairment test of indefinite-lived assets. Additional details regarding the nature of these and other items are included in the attached schedules.   

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.

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