RR Donnelley Reports Growth for First-Quarter 2007
Chicago-based printer R.R. Donnelley & Sons Company today reported first-quarter 2007 net earnings from continuing operations of $138.9 million, an increase of 21 percent over the net earnings from continuing operations reported in the same period last year.
In a conference call earlier this morning, R.R. Donnelley president and CEO Tom Quinlin said first quarter sales were $2.8 billion, an increase of 23.2 percent over the same period last year, while pro forma revenue growth increased 3.6 percent. "Our first quarter results illustrate a point that we have made repeatedly as we have discussed our strategy for refurbishing and expanding our manufacturing logistics and business services platform," Quinlin said. "We are building a capability to attract business that provides more even utilization of our assets across the year, rather than just handling traditional and seasonal surges."
The company, which acquired Banta Corporation and Perry Judd’s in the first quarter, also reported non-GAAP (Generally Accepted Accounting Principles) net earnings from continuing operations, which totaled $145.9 million, a 17 percent increase over $124.4 million reported in first quarter of 2006. It is unclear why the company reported on non-GAAP figures, but said in a statement the measures "are useful because the information is an appropriate measure for evaluating the company’s operating performance."
Quinlin said the integration of Banta and Perry Judd’s is being executed "better than any other integration" he has ever been involved with, calling it a "homerun in terms of providing much-needed flexibility." Quinlin said the company is already implementing new business that was team-sold by Banta and R.R. Donnelley sales people.
The company’s recent acquisition of book printer Von Hoffman is expected to close this spring, said Quinlin. "The capital that we have deployed, and the acquisitions that we have made during the past three years have enabled us to build and refurbish our unique global platform and it has occurred without a hiccup," he added.
Quinlin also addressed the anticipated postal rate changes expected to take effect this month. R.R. Donnelley is working with clients to redesign pages and formats to improve efficiencies, along with co-mailing capabilities and co-palletization services. "The real key is finding titles whose schedules coincide with their own," said Quinlin. "To help our customers mitigate the postal increase, we are expanding our multi-site co-palletization and co-mail service operations, adding co-mail services for polybag and large format or table-sized publications, and increasing our central facility distribution program that takes the mail deeper into the postal stream."
Corporate operating expenses increased to $54.3 million in the first quarter of 2007, from $28.4 million in the first quarter of 2006. The company plans to host an investment meeting for June 21 in New York City for investors.