R.R. Donnelley Q4 Profit Falls, But Adj. EPS Tops View - Quick Facts

(RTTNews) - R.R. Donnelley & Sons Co. (RRD) reported that its fourth-quarter 2014 net earnings attributable to common shareholders fell to $19.5 million, or $0.10 per share, from $104.0 million, or $0.56 per share, in the fourth quarter of 2013.

The fourth-quarter 2014 diluted share count increased by 17.6 million shares from the fourth quarter of 2013, primarily related to shares issued in connection with the acquisitions of Consolidated Graphics and the North American operations of Esselte. The fourth-quarter net earnings attributable to common shareholders included pre-tax charges of $143.6 million and $74.5 million in 2014 and 2013, respectively.

Non-GAAP net earnings attributable to common shareholders totaled $105.8 million, or $0.52 per share compared to $89.8 million, or $0.49 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter were $3.1 billion, up $314.0 million, or 11.4%, from the fourth quarter of 2013, largely due to the acquisitions of Consolidated Graphics and the North American operations of Esselte. Wall Street expected revenues of $3.12 billion for the quarter.

After adjusting for the impact of acquisitions, changes in foreign exchange rates, dispositions and changes in pass-through paper, organic sales increased 0.5% from the fourth quarter of 2013, as increases in the Strategic Services, International and Variable Print segments were partially offset by the decline in the Publishing and Retail Services segment.

Looking ahead for 2015, the company expects net sales to be in the range of $11.7 billion to $11.9 billion. Wall Street expects revenues of $11.72 billion for fiscal 2015.