Results for the three months ended December 31, 2020, included: *Net Sales — Net sales were $843 million in 2020, down 21% from 2019, primarily due to the economic impact from the COVID-19 pandemic, and ongoing print industry volume and pricing pressures. However, the fourth quarter decline represents another quarter of sequential revenue improvement during the pandemic, as compared to a 28% decline in the third quarter of 2020 and a 38% decline in the second quarter of 2020. *Net Earnings (Loss) From Continuing Operations — Net loss from continuing operations was $86 million in 2020, or $1.69 diluted loss per share, as compared to net earnings of $7 million, or $0.14 diluted earnings per share in 2019. This variance was mainly driven by $75 million of restructuring and non-cash impairment expenses due to fourth quarter 2020 plant closure announcements, and lower net sales. Results for full-year ended December 31, 2020, included: *Net Sales — Net sales were $2.9 billion in 2020, down 25% from 2019, primarily due to the economic impact from the COVID-19 pandemic, and ongoing print industry volume and pricing pressures. *Net Loss From Continuing Operations — Net loss from continuing operations was $107 million in 2020, or $2.10 diluted loss per share, as compared to a net loss of $56 million, or $1.11 diluted loss per share in 2019. The increase in net loss is mostly due to $35 million of higher restructuring, impairment and transaction-related charges, and lower net sales. *Free Cash Flow — Free Cash Flow was $129 million in 2020, an increase of $23 million from 2019, primarily due to a $50 million decrease in capital expenditures, partially offset by a $27 million decrease in cash earnings.
Q4 Key messages *GAAP net sales, including the impact of dispositions and FX, decreased 5.6%; Non-GAAP organic net sales decreased 4.8%; both decline rates improved sequentially from the prior two quarters *GAAP earnings per share from continuing operations of $0.46 and Non-GAAP adjusted earnings per share from continuing operations of $0.71 both increased significantly from the prior year *Operating cash flow of $124.6 million in the quarter is down from prior year; 2020 amount includes $47 million paid to terminate 25 deferred compensation plans and cash taxes on the gain from selling the Logistics businesses in addition to the expected impact from accelerating working capital improvements to earlier quarters in 2020 *Gross leverage ratio of 3.7x improves 1.0x from September 30, 2020 and 0.5x from December 31, 2019; net leverage ratio of 3.0x improves 0.7x from both September 30, 2020 and December 31, 2019
American Litho, a leading direct mail solutions provider, has installed the first HP PageWide Web Press T250 HD in the U.S. to boost power to deliver personalized direct mail for digital trigger marketing campaigns. The 22-inch continuous inkjet HP PageWide Web Press T250 with HP Brilliant Ink enables new versatility with an expanded color and paper gamut for high-volume commercial, publishing, transaction, and direct mail applications. “At American Litho, we tailor our capabilities to meet the needs of our customers, and in 2020 we found ourselves adapting more than ever. Investing in our equipment to further propel the powerful combination of print and digital services is vital to providing a standout product every time,” said Frank Arostegui, Executive Vice President of Sales.
Quad/Graphics, Inc. and the Quadracci family’s Windhover Foundation are announcing a three-year, $1 million commitment to The BrandLab, a non-profit dedicated to changing the face and voice of the marketing industry by creating opportunities for young people from diverse ethnic and socioeconomic backgrounds. This new partnership will enable The BrandLab to expand into the Milwaukee community and bring together local agencies, corporations and student interns who identify as Black, Indigenous and People of Color (BIPOC), or who come from low-income families. Already operational in Kansas City and Minneapolis, The BrandLab’s success in bringing young, diverse voices into the creative profession directly aligns with Quad’s decades-long dedication to creating a better way. “The BrandLab starts by exposing students to creative and viable careers before they graduate from high school and then we stay with them on their journey to their first full-time role,” said Ellen Walthour, Chief Executive Officer of The BrandLab. “This is a long-term solution that requires long-range vision from the industry’s top leaders. Quad understands that our work not only advances racial equity, but it makes the creative field so much stronger.”
R.R. Donnelley & Sons Company announced its work to create tangible moments for Kindli, a social media alternative focused on positivity and connecting people with acts of kindness. Kindli Cards, printed by RRD, are Kindli’s proprietary, patent-pending method of tracking kind acts all around the world. These cards include a unique, user-specific QR code and personalized messages. Kindli’s strategic partnership with RRD allows for this level of customization. This includes workflows specific to variable programming required for personalized codes and automated order entry, enabling quick speed-to-market regardless of order quantity.
The Phoenix Group of Companies, a full-service provider of comprehensive printing, packaging, mailing, and fulfillment solutions in Philadelphia, announced that its affiliate, Phoenix Lithographing, and long-time industry partner ICS Corp., of West Deptford, N.J., are merging forces to create Phoenix-ICS Group of Companies. The new partnership brings together ICS, a direct mail organization offering strategic development and creative services, and Phoenix Lithographing, one of the largest privately-held commercial printing companies in the marketplace. The group will benefit from ICS’s expertise in mailing and creative development, and Phoenix’s comprehensive print production knowledge.
Worzalla, an employee-owned book printer specializing in printing high-quality children’s books, cookbooks, and hard-cover best sellers, was ranked the fourth largest North American book printer in Printing Impressions’ latest industry rankings titled 2020 Printing Impressions 350. Worzalla was also ranked the 63rd largest book printer by annual sales on the general list that includes all printing companies North America. This is the first time Worzalla has been ranked as a Top 5 Market Segment Leader in the book printing category. Worzalla also rose 24 spots in this year’s general rankings compared to last year. In 2020, Worzalla completed a modernization and expansion plan that added 50,000 square feet to the company’s manufacturing headquarters, upgraded equipment, and added additional associates.
R.R. Donnelley & Sons Company announces expanded operations in Sacramento, establishing a robust center of excellence for commercial print in Northern California as Pacific Standard Print (PSP). This strategic investment brings new and diverse capabilities to the region for the purpose of serving RRD client needs. After undergoing an extensive year-long renovation, PSP has increased capacity for digital, sheetfed, mailing and print fulfillment services. The new 136,000-square-foot location boasts upgraded, best-in-class digital presses, plus 40-inch offset, sheetfed presses. PSP will offer an elevated security infrastructure for data and mailing services with an increased volume of storage to support critical warehousing and fulfillment needs throughout the region. PSP clients will also benefit from the multitude of complementary services that RRD provides, including advanced analytics, email marketing, content and creative services. PSP has a rich history of delivering on the communication needs of a diverse client base. Whether it’s time-sensitive election-related print, one-to-one direct mail communications, secure healthcare requirements or retail solutions, PSP is uniquely positioned to help clients break through the complexity of their communications while driving out costs, increasing revenue, and mitigating risk.
Sun Chemical will increase prices across a broad portfolio of its packaging and commercial sheetfed inks, coatings, and adhesives in North America (also EMEA and Latin America), effective March 15, 2021. A combination of raw material shortages, including petrochemical, vegetable oils and derivatives, dramatically increased international freight transport costs, and demand due to economic recovery, are all contributing factors for the cost increases in Sun Chemical’s raw material feedstocks.
Moore announces the acquisition of Worcester Envelope Company, an industry leader specializing in custom envelope manufacturing. This acquisition comes less than 12 months from the $31 million investment Moore made in envelope manufacturing with the opening of Richmond Print Group in Virginia. Moore is investing in Worcester Envelope to expand its envelope manufacturing in overall capacity, redundancy and location diversification. Based in Auburn, Massachusetts, Worcester Envelope specializes in the manufacturing of high color direct mail envelopes to service the medium to large volume mail industry.