RRD Reports Second Quarter 2022 Results

Q2 Key messages
GAAP net sales, including the impact of foreign exchange, increased $143 million or 12.5%; Non-GAAP organic net sales increased 13.8% primarily from higher client demand for most of the Company’s products and services
GAAP net income from continuing operations was up $39 million versus the prior year period
Non-GAAP adjusted EBITDA of $116 million increased 47% over the second quarter of 2021; related margin increased 210 bps to 9.0%
Non-GAAP adjusted net income of $44 million was up $39 million versus the prior year period
Cash used in operating activities during the six months ended June 30, 2022 was $256 million compared to $65 million in the prior year period; current year results reflect working capital investments due to increased volume and inflation in addition to $79 million of merger related payments
Gross leverage ratio of 3.3x and net leverage ratio of 2.8x; both improved 0.5x from June 30, 2021 due to higher trailing 12 months adjusted EBITDA which improved from $401 million in 2021 to $478 million in 2022

Net sales in the second quarter were $1.29 billion, up $143.2 million or 12.5% from the second quarter of 2021. Net sales were negatively impacted $14.9 million due to changes in foreign exchange, while the majority of the increase relates to higher client demand for most of the Company’s products and services, and price increases to mostly offset inflationary cost increases. The Company experienced significant growth in Commercial Print, Direct Marketing and Labels products. Organic net sales increased 13.8%.

Income from operations was $60.7 million in the second quarter of 2022 compared to $28.2 million in the second quarter of 2021. During the second quarter of 2022, net restructuring, impairment and other charges of $19.8 million increased $10.1 million from the prior year period due primarily to a $12 million asset impairment charge related to an equity investment.

Net income from continuing operations was $30.1 million in the second quarter of 2022 compared to a net loss from continuing operations of $9.2 million reported in the second quarter of 2021. The increase in net income from continuing operations reflects increased income from operations and lower interest expense, partially offset by higher income taxes on improved pre-tax income.
details at: https://investor.rrd.com/news/news-details/2022/RRD-Reports-Second-Quarter-2022-Results/default.aspx

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