RR Donnelley’s net sales in the quarter were $2.6 billion, up $106.1 million, or 4.2%, from the third quarter of 2012. After adjusting for the impact of acquisitions, changes in foreign exchange rates, pass-through paper sales and the 2012 rebate adjustment, organic sales grew by 2.2% from the third quarter of 2012, driven by volume growth in many offerings, a timing shift of a project in Latin America and an increase in pass-through postage revenue.
“As we communicated in our October 24th announcement, we are very pleased with our third-quarter performance. We have shown steady improvement over the past four quarters in our top-line performance, reflecting positive trends in a number of our offerings,” said Thomas J. Quinlan III, R.R. Donnelley’s President and Chief Executive Officer. “In addition, our free cash flow remained strong in the quarter, improving$101 million from the third quarter of 2012, contributing to a year-to-date free cash flow that exceeded the prior year by $158 million. Our third-quarter cash flow performance was in line with our expectations, and we are reiterating our full-year guidance in the range of $400 million to$500 million. This level of cash flow provides us the ability to migrate toward our targeted gross leverage range of 2.25x to 2.75x on a long-term sustainable basis.” Quinlan continued, “We look forward to completing the acquisition of Consolidated Graphics, expected in the first quarter of 2014.”
Source: R.R.Donnelley Press Release
