RRD reports full-year 2021 sales up 4%
R.R. Donnelley & Sons Company (RRD) reported full-year 2021 GAAP Net sales, increased $197 million or 4.1%; Non-GAAP organic net sales increased 3.2% primarily from higher demand for many of the company’s products and services GAAP income from operations was up $55 million versus the prior year.
“We delivered a strong year of performance capped by fourth-quarter results that exceeded our expectations. I am proud of the RRD team as we continue to successfully execute our strategy and navigate through the COVID-19 pandemic. Our full-year 2021 adjusted income from operations and operating margin represent our third consecutive year of improved performance, while also representing our best performance in those metrics since 2016,” said Dan Knotts, RRD President and Chief Executive Officer. “We have remained laser-focused on executing our strategic priorities and have a business that is consistently delivering profitable growth and improving margins through organic sales growth and a leaner cost structure. In addition, our balance sheet is in its best shape since the spin in 2016. I would like to thank our 32,000 employees for their many contributions and dedication to deliver the high level of business performance we have today for our stockholders. RRD is well positioned for continued success under the expected future ownership of Chatham Asset Management.”
Financial highlights
The following table provides an overview of RRD’s financial performance:
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|
4th Quarter Results |
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|
|
Q4 2021 |
Q4 2020 |
% Change |
|
Net sales |
$1.38 billion |
$1.35 billion |
2.1% |
|
Income from operations |
$37.1 million |
$78.1 million |
(52.5%) |
|
Diluted (loss) earnings per share from continuing operations |
($0.19) |
$0.46 |
nm |
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|
|
|
|
|
Adjusted income from operations – non-GAAP (1) |
$96.4 million |
$94.5 million |
2.0% |
|
Adjusted diluted earnings per share from continuing operations – non-GAAP (1) |
$0.58 |
$0.71 |
(18.3%) |
|
|
Full Year Results |
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|
|
FY 2021 |
FY 2020 |
% Change |
|
Net sales |
$4.96 billion |
$4.77 billion |
4.1% |
|
Income from operations |
$163.5 million |
$108.1 million |
51.2% |
|
Diluted earnings (loss) per share from continuing operations |
$0.04 |
($0.37) |
nm |
|
|
|
|
|
|
Adjusted income from operations – non-GAAP (1) |
$256.3 million |
$239.7 million |
6.9% |
|
Adjusted diluted earnings per share from continuing operations – non-GAAP (1) |
$1.29 |
$1.21 |
6.6% |
|
(1) |
Refer to “Use of Non-GAAP Information” for additional information on the usage and presentation of non-GAAP financial measures, and refer to the schedules for reconciliations to the most directly comparable GAAP financial measures. |
Net sales in the fourth quarter were $1.38 billion, up $28.6 million or 2.1% from the same period in 2020. While fourth-quarter net sales benefitted $3 million due to changes in foreign exchange rates, the majority of the increase relates to higher client demand for many of the Company’s products and price increases to partially offset inflationary cost increases. Notably, net sales of Commercial Print products were up significantly due to strong demand for domestic trading cards as well as other printed products produced in China while net sales in Supply Chain Management were negatively impacted by the large one-time COVID projects in the prior year period. Organic net sales increased 1.9%.
Income from operations was $37.1 million in the fourth quarter of 2021 compared to income from operations of $78.1 million in the fourth quarter of 2020. The fourth quarter of 2021 included $40.8 million of expenses related to the planned merger, and net restructuring, impairment and other charges of $13.8 million which was an increase from $6.2 million in the prior year period.