[April 18, 2018] |
|
RRD Realigns Organizational Structure to Drive Growth Strategy
R.R. Donnelley & Sons Company (NYSE: RRD) ("RRD" or the "Company") today
announced new financial reporting segments to align with recent changes
to its global operating structure. Effective with the first quarter of
2018, RRD will report its results under two new segments: Marketing
Solutions, a preeminent provider of multichannel marketing activation
programs, and Business Services, a premier global provider of business
communications services.
This segment structure organizes RRD's global product and service
offerings by their common strategic purposes to best meet rapidly
evolving client needs and will allow various stakeholders to more easily
assess the Company's progress against its long-term growth strategy. The
two segments are designed to help companies optimize engagement with
their customers across the entire customer journey - from the marketing
programs that first attract and convert customers to the brand, to the
critical business communications that service those customers and extend
the brand over time. Together, the powerful combination of Marketing
Solutions and Business Services will help RRD's clients create
consistent customer experiences across all touch points - online,
offline and in-store - with reduced complexity and increased efficiency.
Previously, the Company reported its segments as Variable Print,
Strategic Services and International, which grouped together product and
service offerings that shared related internal operational features.
Certain unallocated costs reported in the Company's Corporate segment
will not be impacted by the new structure.
"We have united our capabilities under two key segments to directly
align our businesses with our clients' evolving needs and strategic
objectives," said Dan Knotts, RRD's President and Chief Executive
Officer. "This structure further leverages our extensive business
portfolio to help our clients more effectively manage the complexities
of personalized marketing and sustain meaningful connections with their
customers across the full customer relationship. Further, we believe
this realignment will accelerate growth and drive improved profitability
by focusing each business on the most attractive opportunities within
our large addressable markets."
RRD Marketing Solutions
RRD Marketing Solutions leverages an integrated portfolio of data
analytics, creative services and multichannel execution to deliver
comprehensive, end-to-end solutions that drive marketing ROI. RRD's key
capabilities include:
-
Data Management - integrating data to set the foundation for personal
marketing
-
Advanced Analytics - uncovering meaningful insights to deliver
relevant marketing
-
Creative Services - simplifying the art of capturing customer attention
-
Online Channels - leveraging martech to execute successful digital
marketing initiatives
-
Offline Response - maximizing the power of print to capture customer
attention
-
Onsite Services - enhancing the customer environment to educate,
engage and convert
Marketing Solutions reported net sales of $1.2 billion in 2017. This
segment includes the Company's direct mail, in-store marketing, digital
print and digital solutions businesses and will be led by Doug Ryan.
Doug brings over 25 years of experience in integrated marketing,
including most recently having served as President of DigitasLBi North
America.
RRD Business Services
RRD Business Services provides customized solutions at scale to help
clients inform, service and transact with their customers with reduced
complexity and increased efficiency. RRD's key capabilities include:
-
Commercial Print Services - full spectrum of print, assembly and
fulfillment capabilities
-
Customized Customer Communications - personalized, regulatory -
compliant messaging
-
Product and Brand Communications - comprehensive packaging and
labeling solutions
-
Business Process Services - supply chain, global outsourcing and
logistics
Business Services reported net sales of $5.8 billion in 2017. This
segment includes commercial print, packaging, labels, statement
printing, forms, logistics, supply chain management and business process
outsourcing.
The Business Services segment will be led by John Pecaric, a 30 - year
veteran of RRD who most recently served as Executive Vice President and
Chief Commercial Officer. John's previous leadership roles at RRD
included President - International, and Senior Vice President of
Operations.
"We are excited about these organizational changes as they mark a
pivotal next step in our ongoing strategic transformation," Knotts
continued. "The pace of innovation is accelerating and our clients are
increasingly challenged to navigate the rapidly changing customer
communications landscape. Through our powerful marketing solutions and
business services platforms, we are providing purpose-built solutions,
at scale, to help our clients improve customer engagement and drive
business performance."
Historical reclassified results for the new segments are included in
this press release and will be available in the Company's Form 8-K which
will be filed with the Securities and Exchange Commission. In addition,
supplemental slides regarding the new segments are available under the
Presentation tab in the Investors section of RRD's website at www.rrd.com.
About RRD
RRD is a leading global provider of marketing and communications
services. With more than 50,000 clients and nearly 43,000 employees
across 34 countries, RRD offers the industry's most comprehensive
portfolio of solutions designed to help companies - from Main Street to
Wall Street - optimize customer engagement and streamline business
connections across the full customer journey.
For more information, visit RRD's website at www.rrd.com.
Use of non-GAAP Information
This news release contains non-GAAP financial measures, including
non-GAAP income (loss) from operations, non-GAAP Adjusted EBITDA, and
non-GAAP organic net sales. The Company believes that these non-GAAP
measures, when presented in conjunction with comparable GAAP measures,
provide useful information about its operating results and enhance the
overall ability to assess the Company's financial performance. These
measures should be considered in addition to, and not as a substitute
for, or superior to, measures of financial performance prepared in
accordance with GAAP. RRD uses these non-GAAP measures, together with
other measures of performance under GAAP, to compare the relative
performance of operations in planning, budgeting and reviewing the
performance of its business. Additional information relating to the
adjustments for the non-GAAP income (loss) from operations, non-GAAP
Adjusted EBITDA and non-GAAP organic net sales for RRD is set forth in
the attached schedules and in the Investors section of the Company's
website.
Use of Forward-Looking Statements
This news release includes certain "forward-looking statements" within
the meaning of, and subject to the safe harbor created by, Section 21E
of the Securities Exchange Act of 1934, as amended, with respect to the
business, strategy and plans of the Company and its expectations
relating to future financial condition and performance. Statements that
are not historical facts, including statements about RR Donnelley
management's beliefs and expectations, are forward-looking statements.
Words such as "believes," "anticipates," "estimates," "expects,"
"intends," "aims," "potential," "will," "would," "could," "considered,"
"likely," "estimate" and variations of these words and similar future or
conditional expressions are intended to identify forward-looking
statements but are not the exclusive means of identifying such
statements. While RR Donnelley believes these expectations, assumptions,
estimates and projections are reasonable, such forward-looking
statements are only predictions and involve known and unknown risks and
uncertainties, many of which are beyond RR Donnelley's control. By their
nature, forward-looking statements involve risk and uncertainty because
they relate to events and depend upon future circumstances that may or
may not occur. Actual results may differ materially from RR Donnelley's
current expectations depending upon a number of factors affecting the
business and risks associated with the performance of the business.
These factors include such risks and uncertainties detailed in RR
Donnelley's periodic public filings with the SEC, including but not
limited to those discussed under the "Risk Factors" section in RR
Donnelley's Form 10-K for the fiscal year ended December 31, 2017, and
other filings with the SEC and in other investor communications of RR
Donnelley from time to time. RR Donnelley 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.
|
|
R.R. Donnelley & Sons Company
|
|
Segment GAAP to Non-GAAP Income from Operations and Non-GAAP
Adjusted EBITDA and Margin Reconciliation
|
|
For the Twelve Months Ended December 31, 2017
|
|
(UNAUDITED)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Services
|
|
|
Marketing Solutions
|
|
|
Corporate
|
|
|
Consolidated
|
|
|
|
Net sales
|
|
|
$
|
5,762.7
|
|
|
$
|
1,176.9
|
|
|
$
|
-
|
|
|
$
|
6,939.6
|
|
Income (loss) from operations (1)
|
|
|
|
248.6
|
|
|
|
30.8
|
|
|
|
(68.0
|
)
|
|
|
211.4
|
|
Operating margin %
|
|
|
|
4.3
|
%
|
|
|
2.6
|
%
|
|
nm
|
|
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, impairment and other charges - net (2)
|
|
|
|
17.8
|
|
|
|
25.3
|
|
|
|
9.9
|
|
|
|
53.0
|
|
Spinoff-related transaction expenses (3)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3.3
|
|
|
|
3.3
|
|
Total Non-GAAP adjustments
|
|
|
|
17.8
|
|
|
|
25.3
|
|
|
|
13.2
|
|
|
|
56.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss) from operations
|
|
|
$
|
266.4
|
|
|
$
|
56.1
|
|
|
$
|
(54.8
|
)
|
|
$
|
267.7
|
|
Non-GAAP operating margin %
|
|
|
|
4.6
|
%
|
|
|
4.8
|
%
|
|
nm
|
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
139.9
|
|
|
|
47.4
|
|
|
|
4.1
|
|
|
|
191.4
|
|
Investment and other income - net (1) (4)
|
|
|
|
3.8
|
|
|
|
-
|
|
|
|
17.9
|
|
|
|
21.7
|
|
Non-GAAP Adjusted EBITDA
|
|
|
$
|
410.1
|
|
|
$
|
103.5
|
|
|
$
|
(32.8
|
)
|
|
$
|
480.8
|
|
Non-GAAP Adjusted EBITDA margin %
|
|
|
|
7.1
|
%
|
|
|
8.8
|
%
|
|
nm
|
|
|
|
6.9
|
%
|
(1)
|
|
Income (loss) from operations is reflective of the adoption of ASU
No. 2017-07 "Compensation-Retirement Benefits (Topic 715): Improving
the Presentation of Net Periodic Pension Cost and Net Periodic
Postretirement Benefit Cost," which changes the presentation of net
periodic pension and postretirement benefit cost (net benefit cost).
The amendment was adopted January 1, 2018 with retrospective
adoption and requires the bifurcation of net benefit cost, with the
service cost component to be presented in income from operations,
while the other components are reported separately outside of income
from operations. The adoption resulted in a decrease of $15.1
million in income from operations and a corresponding increase of
$15.1 million in investment and other income-net for the twelve
months ended December 31, 2017.
|
(2)
|
|
Restructuring, impairment and other charges - net: includes
pre-tax charges of $23.5 million for employee termination costs;
$21.3 million for the impairment of goodwill; $4.8 million of
lease termination and other restructuring costs; $2.3 million for
multi-employer pension plan withdrawal obligations unrelated to
facility closures; $0.2 million related to the impairment of
intangible assets; and $0.9 million of net impairment charges of
long-lived assets.
|
(3)
|
|
Spinoff-related transaction expenses: includes charges
related to consulting and other expenses associated with the 2016
spinoff transactions.
|
(4)
|
|
Investment and other income - net: represents amounts in
investment and other income-net that are not non-GAAP adjustments,
and primarily include other net benefit costs related to pension
and other postretirement benefit plans (excluding service cost),
proceeds from company-owned life insurance and dividend income
from LSC. Non-GAAP adjustments from investment and other
income-net for the twelve months ended December 31, 2017, included
a pre-tax net realized gain of $94.0 million resulting from the
debt-for-equity exchange of the Company's retained shares of
Donnelley Financial for certain outstanding senior notes and a
pre-tax gain of $1.3 million resulting from the sale of certain of
the Company's affordable housing investments, partially offset by
a pre-tax loss of $51.6 million resulting from the sale of the
Company's retained shares in LSC and pre-tax charges of $1.6
million related to lump-sum pension settlement payments.
|
|
|
|
R.R. Donnelley & Sons Company
|
|
Segment GAAP to Non-GAAP Income from Operations and Non-GAAP
Adjusted EBITDA and Margin Reconciliation
|
|
For the Twelve Months Ended December 31, 2016
|
|
(UNAUDITED)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Services
|
|
|
Marketing Solutions
|
|
|
Corporate
|
|
|
Consolidated
|
|
|
|
Net sales
|
|
|
$
|
5,681.1
|
|
|
$
|
1,151.9
|
|
|
$
|
-
|
|
|
$
|
6,833.0
|
|
Loss from operations (1)
|
|
|
|
(73.8
|
)
|
|
|
(99.4
|
)
|
|
|
(151.7
|
)
|
|
|
(324.9
|
)
|
Operating margin %
|
|
|
|
(1.3
|
%)
|
|
|
(8.6
|
%)
|
|
nm
|
|
|
|
(4.8
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, impairment and other charges - net (2)
|
|
|
|
400.9
|
|
|
|
173.0
|
|
|
|
10.4
|
|
|
|
584.3
|
|
Spinoff-related transaction expenses (3)
|
|
|
|
0.1
|
|
|
|
-
|
|
|
|
7.9
|
|
|
|
8.0
|
|
Acquisition-related expenses (4)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.7
|
|
|
|
2.7
|
|
Net (gain) loss on disposal of businesses (5)
|
|
|
|
(12.5
|
)
|
|
|
-
|
|
|
|
0.6
|
|
|
|
(11.9
|
)
|
Total Non-GAAP adjustments
|
|
|
|
388.5
|
|
|
|
173.0
|
|
|
|
21.6
|
|
|
|
583.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss) from operations
|
|
|
$
|
314.7
|
|
|
$
|
73.6
|
|
|
$
|
(130.1
|
)
|
|
$
|
258.2
|
|
Non-GAAP operating margin %
|
|
|
|
5.5
|
%
|
|
|
6.4
|
%
|
|
nm
|
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
153.6
|
|
|
|
48.3
|
|
|
|
2.3
|
|
|
|
204.2
|
|
Investment and other income - net (1) (6)
|
|
|
|
1.1
|
|
|
|
-
|
|
|
|
28.2
|
|
|
|
29.3
|
|
Non-GAAP Adjusted EBITDA
|
|
|
$
|
469.4
|
|
|
$
|
121.9
|
|
|
$
|
(99.6
|
)
|
|
$
|
491.7
|
|
Non-GAAP Adjusted EBITDA margin %
|
|
|
|
8.3
|
%
|
|
|
10.6
|
%
|
|
nm
|
|
|
|
7.2
|
%
|
(1)
|
|
Loss from operations is reflective of the adoption of ASU No.
2017-07 "Compensation-Retirement Benefits (Topic 715): Improving the
Presentation of Net Periodic Pension Cost and Net Periodic
Postretirement Benefit Cost," which changes the presentation of net
periodic pension and postretirement benefit cost (net benefit cost).
The amendment was adopted January 1, 2018 with retrospective
adoption and requires the bifurcation of net benefit cost, with the
service cost component to be presented in income (loss) from
operations, while the other components are reported separately
outside of income (loss) from operations. The adoption resulted in
an increase of $24.3 million in loss from operations and a
corresponding increase of $24.3 million in investment and other
income-net for the twelve months ended December 31, 2016.
|
(2)
|
|
Restructuring, impairment and other charges - net: includes
pre-tax charges of $527.8 million for the impairment of goodwill;
$29.7 million for the impairment of customer relationships; $21.9
million for employee termination costs; $3.5 million of lease
termination and other restructuring costs; $2.3 million of other
charges; and a net gain of $0.9 million related to the sale of
previously impaired other long-lived assets.
|
(3)
|
|
Spinoff-related transaction expenses: includes charges
related to consulting and other expenses associated with the 2016
spinoff transactions.
|
(4)
|
|
Acquisition-related expenses: includes charges related to
legal, accounting and other expenses associated with completed or
contemplated acquisitions.
|
(5)
|
|
Net (gain) loss on disposal of businesses: primarily
includes a pre-tax net gain on the sale of entities in the
Business Services segment.
|
(6)
|
|
Investment and other income - net: represents amounts in
investment and other income-net that are not non-GAAP adjustments,
and primarily include other net benefit costs related to pension
and other postretirement benefit plans (excluding service cost),
proceeds from company-owned life insurance and dividend income
from LSC. Non-GAAP adjustments from investment and other
income-net for the twelve months ended December 31, 2016, included
pre-tax charges of $21.1 million related to lump-sum pension
settlement payments and a pre-tax loss of $1.4 million resulting
from the impairment of one of the Company's equity investments,
partially offset by a pre-tax gain of $19.5 million as a result of
curtailments of the Company's other postretirement benefit plan
and a pre-tax gain of $0.1 million resulting from the sale of
certain of the Company's affordable housing investments.
|
|
|
|
R.R. Donnelley & Sons Company
|
|
Segment GAAP to Non-GAAP Income from Operations and Non-GAAP
Adjusted EBITDA and Margin Reconciliation
|
|
For the Three Months Ended March 31 and June 30, 2017
|
|
(UNAUDITED)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Services
|
|
|
Marketing Solutions
|
|
|
Corporate
|
|
|
Consolidated
|
|
For the Three Months Ended March 31, 2017
|
|
|
|
Net sales
|
|
|
$
|
1,376.4
|
|
|
$
|
282.5
|
|
|
$
|
-
|
|
|
$
|
1,658.9
|
|
Income (loss) from operations
|
|
|
|
58.7
|
|
|
|
4.9
|
|
|
|
(20.3
|
)
|
|
|
43.3
|
|
Operating margin %
|
|
|
|
4.3
|
%
|
|
|
1.7
|
%
|
|
nm
|
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, impairment and other charges - net
|
|
|
|
5.4
|
|
|
|
2.1
|
|
|
|
1.6
|
|
|
|
9.1
|
|
Spinoff-related transaction expenses
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.1
|
|
|
|
2.1
|
|
Total Non-GAAP adjustments
|
|
|
|
5.4
|
|
|
|
2.1
|
|
|
|
3.7
|
|
|
|
11.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss) from operations
|
|
|
$
|
64.1
|
|
|
$
|
7.0
|
|
|
$
|
(16.6
|
)
|
|
$
|
54.5
|
|
Non-GAAP operating margin %
|
|
|
|
4.7
|
%
|
|
|
2.5
|
%
|
|
nm
|
|
|
|
3.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
35.1
|
|
|
|
12.2
|
|
|
|
1.3
|
|
|
|
48.6
|
|
Investment and other income - net
|
|
|
|
0.9
|
|
|
|
-
|
|
|
|
4.9
|
|
|
|
5.8
|
|
Non-GAAP Adjusted EBITDA
|
|
|
$
|
100.1
|
|
|
$
|
19.2
|
|
|
$
|
(10.4
|
)
|
|
$
|
108.9
|
|
Non-GAAP Adjusted EBITDA margin %
|
|
|
|
7.3
|
%
|
|
|
6.8
|
%
|
|
nm
|
|
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2017
|
|
|
|
Net sales
|
|
|
$
|
1,348.7
|
|
|
$
|
271.3
|
|
|
$
|
-
|
|
|
$
|
1,620.0
|
|
Income (loss) from operations
|
|
|
|
43.1
|
|
|
|
7.4
|
|
|
|
(16.1
|
)
|
|
|
34.4
|
|
Operating margin %
|
|
|
|
3.2
|
%
|
|
|
2.7
|
%
|
|
nm
|
|
|
|
2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, impairment and other charges - net
|
|
|
|
2.9
|
|
|
|
0.1
|
|
|
|
0.8
|
|
|
|
3.8
|
|
Spinoff-related transaction expenses
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1.2
|
|
|
|
1.2
|
|
Total Non-GAAP adjustments
|
|
|
|
2.9
|
|
|
|
0.1
|
|
|
|
2.0
|
|
|
|
5.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss) from operations
|
|
|
$
|
46.0
|
|
|
$
|
7.5
|
|
|
$
|
(14.1
|
)
|
|
$
|
39.4
|
|
Non-GAAP operating margin %
|
|
|
|
3.4
|
%
|
|
|
2.8
|
%
|
|
nm
|
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
34.9
|
|
|
|
11.7
|
|
|
|
0.9
|
|
|
|
47.5
|
|
Investment and other income - net
|
|
|
|
1.0
|
|
|
|
-
|
|
|
|
3.8
|
|
|
|
4.8
|
|
Non-GAAP Adjusted EBITDA
|
|
|
$
|
81.9
|
|
|
$
|
19.2
|
|
|
$
|
(9.4
|
)
|
|
$
|
91.7
|
|
Non-GAAP Adjusted EBITDA margin %
|
|
|
|
6.1
|
%
|
|
|
7.1
|
%
|
|
nm
|
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R.R. Donnelley & Sons Company
|
|
Segment GAAP to Non-GAAP Income from Operations and Non-GAAP
Adjusted EBITDA and Margin Reconciliation
|
|
For the Three Months Ended September 30 and December 31, 2017
|
|
(UNAUDITED)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Services
|
|
|
Marketing Solutions
|
|
|
Corporate
|
|
|
Consolidated
|
|
For the Three Months Ended September 30,
2017
|
|
|
|
Net sales
|
|
|
$
|
1,440.6
|
|
|
$
|
294.3
|
|
|
$
|
-
|
|
|
$
|
1,734.9
|
|
Income (loss) from operations
|
|
|
|
51.0
|
|
|
|
(6.9
|
)
|
|
|
(12.3
|
)
|
|
|
31.8
|
|
Operating margin %
|
|
|
|
3.5
|
%
|
|
|
(2.3
|
%)
|
|
nm
|
|
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, impairment and other charges - net
|
|
|
|
5.7
|
|
|
|
22.8
|
|
|
|
5.3
|
|
|
|
33.8
|
|
Total Non-GAAP adjustments
|
|
|
|
5.7
|
|
|
|
22.8
|
|
|
|
5.3
|
|
|
|
33.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss) from operations
|
|
|
$
|
56.7
|
|
|
$
|
15.9
|
|
|
$
|
(7.0
|
)
|
|
$
|
65.6
|
|
Non-GAAP operating margin %
|
|
|
|
3.9
|
%
|
|
|
5.4
|
%
|
|
nm
|
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
35.0
|
|
|
|
11.0
|
|
|
|
1.0
|
|
|
|
47.0
|
|
Investment and other income - net
|
|
|
|
0.9
|
|
|
|
-
|
|
|
|
4.4
|
|
|
|
5.3
|
|
Non-GAAP Adjusted EBITDA
|
|
|
$
|
92.6
|
|
|
$
|
26.9
|
|
|
$
|
(1.6
|
)
|
|
$
|
117.9
|
|
Non-GAAP Adjusted EBITDA margin %
|
|
|
|
6.4
|
%
|
|
|
9.1
|
%
|
|
nm
|
|
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended December 31,
2017
|
|
|
|
Net sales
|
|
|
$
|
1,597.0
|
|
|
$
|
328.8
|
|
|
$
|
-
|
|
|
$
|
1,925.8
|
|
Income (loss) from operations
|
|
|
|
95.8
|
|
|
|
25.4
|
|
|
|
(19.3
|
)
|
|
|
101.9
|
|
Operating margin %
|
|
|
|
6.0
|
%
|
|
|
7.7
|
%
|
|
nm
|
|
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring, impairment and other charges - net
|
|
|
|
3.8
|
|
|
|
0.3
|
|
|
|
2.2
|
|
|
|
6.3
|
|
Total Non-GAAP adjustments
|
|
|
|
3.8
|
|
|
|
0.3
|
|
|
|
2.2
|
|
|
|
6.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss) from operations
|
|
|
$
|
99.6
|
|
|
$
|
25.7
|
|
|
$
|
(17.1
|
)
|
|
$
|
108.2
|
|
Non-GAAP operating margin %
|
|
|
|
6.2
|
%
|
|
|
7.8
|
%
|
|
nm
|
|
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
34.9
|
|
|
|
12.5
|
|
|
|
0.9
|
|
|
|
48.3
|
|
Investment and other income - net
|
|
|
|
1.0
|
|
|
|
-
|
|
|
|
4.8
|
|
|
|
5.8
|
|
Non-GAAP Adjusted EBITDA
|
|
|
$
|
135.5
|
|
|
$
|
38.2
|
|
|
$
|
(11.4
|
)
|
|
$
|
162.3
|
|
Non-GAAP Adjusted EBITDA margin %
|
|
|
|
8.5
|
%
|
|
|
11.6
|
%
|
|
nm
|
|
|
|
8.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R.R. Donnelley & Sons Company
|
|
Reconciliation of Reported to Organic Net Sales
|
|
Full Year and By Quarter in 2017
|
|
(UNAUDITED)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Services
|
|
|
|
Marketing Solutions
|
|
|
|
Consolidated
|
|
For the Twelve Months Ended December 31,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net sales change
|
|
|
|
1.4
|
%
|
|
|
|
2.2
|
%
|
|
|
|
1.6
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of acquisitions (1)
|
|
|
|
---
|
%
|
|
|
|
3.2
|
%
|
|
|
|
0.7
|
%
|
Year-over-year impact of dispositions (2)
|
|
|
|
(0.1
|
%)
|
|
|
|
---
|
%
|
|
|
|
(0.1
|
%)
|
Year-over-year impact of new sales under the Commercial Agreements (3)
|
|
|
|
1.3
|
%
|
|
|
|
---
|
%
|
|
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net organic sales change
|
|
|
|
0.2
|
%
|
|
|
|
(1.0
|
%)
|
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net sales changes
|
|
|
|
1.0
|
%
|
|
|
|
4.9
|
%
|
|
|
|
1.6
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of acquisitions (1)
|
|
|
|
---
|
%
|
|
|
|
5.5
|
%
|
|
|
|
0.9
|
%
|
Year-over-year impact of changes in foreign currency (FX) rates
|
|
|
|
(0.6
|
%)
|
|
|
|
---
|
%
|
|
|
|
(0.5
|
%)
|
Year-over-year impact of dispositions (2)
|
|
|
|
(0.2
|
%)
|
|
|
|
---
|
%
|
|
|
|
(0.1
|
%)
|
Year-over-year impact of new sales under the Commercial Agreements (3)
|
|
|
|
2.9
|
%
|
|
|
|
---
|
%
|
|
|
|
2.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net organic sales change
|
|
|
|
(1.1
|
%)
|
|
|
|
(0.6
|
%)
|
|
|
|
(1.0
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net sales changes
|
|
|
|
(0.2
|
%)
|
|
|
|
2.5
|
%
|
|
|
|
0.2
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of acquisitions (1)
|
|
|
|
---
|
%
|
|
|
|
5.8
|
%
|
|
|
|
0.9
|
%
|
Year-over-year impact of changes in FX rates
|
|
|
|
(1.0
|
%)
|
|
|
|
---
|
%
|
|
|
|
(0.8
|
%)
|
Year-over-year impact of dispositions (2)
|
|
|
|
(0.1
|
%)
|
|
|
|
---
|
%
|
|
|
|
(0.1
|
%)
|
Year-over-year impact of new sales under the Commercial Agreements (3)
|
|
|
|
1.9
|
%
|
|
|
|
---
|
%
|
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net organic sales change
|
|
|
|
(1.0
|
%)
|
|
|
|
(3.3
|
%)
|
|
|
|
(1.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net sales change
|
|
|
|
1.4
|
%
|
|
|
|
(3.3
|
%)
|
|
|
|
0.5
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of acquisitions (1)
|
|
|
|
---
|
%
|
|
|
|
1.9
|
%
|
|
|
|
0.3
|
%
|
Year-over-year impact of changes in FX rates
|
|
|
|
0.4
|
%
|
|
|
|
---
|
%
|
|
|
|
0.3
|
%
|
Year-over-year impact of dispositions (2)
|
|
|
|
(0.1
|
%)
|
|
|
|
---
|
%
|
|
|
|
(0.1
|
%)
|
Year-over-year impact of new sales under the Commercial Agreements (3)
|
|
|
|
0.5
|
%
|
|
|
|
---
|
%
|
|
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net organic sales change
|
|
|
|
0.6
|
%
|
|
|
|
(5.2
|
%)
|
|
|
|
(0.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended December 31,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net sales change
|
|
|
|
3.3
|
%
|
|
|
|
4.9
|
%
|
|
|
|
3.6
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year impact of changes in FX rates
|
|
|
|
1.2
|
%
|
|
|
|
---
|
%
|
|
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net organic sales change
|
|
|
|
2.1
|
%
|
|
|
|
4.9
|
%
|
|
|
|
2.6
|
%
|
(1)
|
|
The reported results of the Company include the results of acquired
businesses from the acquisition date forward. To calculate the
impact of the acquisition of Precision Dialogue in August of 2016,
the Company has calculated pro forma net sales as if the acquisition
took place on January 1, 2016 for the purposes of this schedule.
This resulted in the addition of $14.8 million, $15.7 million, and
$6.3 million of pro forma net sales during the three months ended
March 31, June 30 and September 30, 2016, respectively, and $36.8
million for full year 2016.
|
(2)
|
|
Adjusted for net sales of disposed businesses: entities within the
Business Services segment were disposed in the first and third
quarters of 2016.
|
(3)
|
|
Adjusted for new sales as a result of the Commercial Agreements
entered into in conjunction with the spinoff transactions.
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180418005361/en/
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