Electronics For Imaging, Inc. announced that Aahs Signs in greater Los Angeles has purchased an EFI™ VUTEk® LX3 Pro superwide-format printer with an EFI Fiery® proServer Premium digital front end (DFE). The company plans to leverage the versatility, throughput and speed of the hybrid flatbed/roll-to-roll printing device to expand its already thriving online novelty gift-production business and to meet growing demand for specialty large-format printing in the décor market. “About three years ago we started creating and selling products online, through Amazon and eBay. The business is doing well, but with our previous capacity, we couldn’t keep up with demand. With the new VUTEk, I’ll be able to fulfill the growing demand for our products and grow that business,” said Gurmeet Sawhney, president and CEO of Aahs Signs. Click Read More below for additional information.
R.R. Donnelley & Sons Company (NYSE: RRD) (“RRD” or the “Company”) today reported financial results for the fourth quarter and full year of 2019.
Full year key messages:
*Reported net sales, including the impact of dispositions and FX, declined 7.7%; organic net sales declined 2.3%
*GAAP loss per share of $1.31 includes a fourth quarter goodwill impairment charge of $1.38 per share; Non-GAAP adjusted earnings per share of $0.66 includes a fourth quarter charge of $0.09 cents per share for a state tax valuation allowance
*GAAP income from operations down 52.7% for the year; Non-GAAP adjusted income from operations improves 1.1% from prior year and adjusted operating margin improves 34 bps
*Reduced total debt by $273 million from prior year while increasing investments for strategic projects; total liquidity, including availability on credit facility and cash on hand, exceeds $800 million
“Despite a challenging industry backdrop, I am pleased to report that we delivered solid full year results in 2019,” said Dan Knotts, RRD President and Chief Executive Officer. “For the year, we reported growth in adjusted income from operations and expanded operating margins by improving our core operating performance, leveraging our extensive portfolio of capabilities to expand existing client relationships, and continuing to win new clients. Further, we significantly reduced our debt outstanding and expanded our liquidity in line with our strategic focus to improve our balance sheet flexibility. As we look to 2020, we have a strong client opportunity pipeline, a relentless focus on lowering our cost to serve, and a strengthened financial position to execute our strategy as a leading marketing and business communications company.”
Net sales in the quarter were $1.63 billion, down $137.2 million or 7.8% from the fourth quarter of 2018. The decrease includes a $78.2 million impact from business dispositions and a $5.6 million reduction due to changes in foreign exchange rates. On an organic basis, consolidated net sales declined 3.0%. The Marketing Solutions segment grew 12.4% organically driven by higher volumes in the Direct Marketing and Digital Print product categories. The Business Services segment was down 6.6% organically due primarily to declines in Commercial Print and Logistics, partially offset by growth in Labels.
Loss from operations was $19.4 million in the fourth quarter compared to income from operations of $90.0 million in the fourth quarter of 2018. The fourth quarter of 2019 included a non-cash charge of $98.5 million to recognize the impairment of goodwill in the logistics reporting unit and net restructuring and other charges of $6.0 million. Prior year GAAP results included restructuring and other charges of $16.0 million.