RRD Reports Third Quarter 2022 Results

*GAAP net sales, including the impact of foreign exchange, increased $113 million or 8.9%; Non-GAAP organic net sales, excluding the impact of foreign exchange, increased 10.8% primarily from higher client demand for most of the Company’s products and services
*GAAP net income from continuing operations was up $26 million versus the prior year period
*Cash used in operating activities during the nine months ended September 30, 2022 was $221 million compared to $29 million in the prior year period; current year results reflect working capital investments due to increased volume and inflation in addition to $80 million of merger related payments
*Gross leverage ratio of 3.2x improved 0.5x from September 30, 2021; net leverage ratio of 2.7x improved 0.4x from the same period last year

Net sales in the third quarter were $1.38 billion, up $113.0 million or 8.9% from the third quarter of 2021. The majority of the increase relates to higher client demand for most of the Company’s products and services, and price increases to offset inflationary cost increases. The Company experienced significant growth in Commercial Print, Packaging, Labels and Direct Marketing products. Organic net sales increased 10.8%, excluding a negative impact of $24.8 million due to changes in foreign exchange rates.

Income from operations was $100.1 million in the third quarter of 2022 compared to $74.5 million in the third quarter of 2021. During the third quarter of 2022, net restructuring, impairment and other charges of $4.7 million increased $0.7 million from the prior year period.

Net income from continuing operations was $54.9 million in the third quarter of 2022 compared to $29.0 million reported in the third quarter of 2021. The increase in net income from continuing operations mostly reflects increased income from operations. The 2022 effective tax rate of 27.1% decreased from 42.6% in the prior year period primarily due to higher earnings relative to the non-deductible tax adjustments.
details at: https://investor.rrd.com/news/news-details/2022/RRD-Reports-Third-Quarter-2022-Results/default.aspx

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