Flexographic Printing Machine
RR Donnelley Q3 Earnings Down 55%2012-11-03 21:44:54
Third-quarter 2012 GAAP income from operations of $186.7 million increased $29.9 million, or 19.1%, from GAAP income from operations of $156.8 million in the third quarter of 2011
The Company believes that certain non-GAAP measures, when presented in conjunction with comparable GAAP (Generally Accepted Accounting Principles) measures, are useful because that information is an appropriate measure for evaluating the Company's operating performance. Internally, the Company uses this non-GAAP information as an indicator of business performance, and evaluates management's effectiveness with specific reference to these indicators. These measures should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
Non-GAAP net earnings attributable to common shareholders totaled $92.9 million, or $0.51 per diluted share, in the third quarter of 2012 compared to $98.0 million, or $0.51 per diluted share, in the third quarter of 2011. Third-quarter non-GAAP net earnings attributable to common shareholders exclude restructuring and impairment charges and acquisition-related expenses in both years, as well as the recognition of a tax provision related to certain foreign earnings no longer considered to be permanently reinvested in 2012, and in 2011, the loss on debt extinguishment and the recognition of previously unrecognized tax benefits. For non-GAAP comparison purposes, the effective tax rate increased to 33.1% in the third quarter of 2012 from 24.1% in the third quarter of 2011, primarily due to certain state tax matters in the third quarter of 2011. A reconciliation of GAAP net earnings attributable to common shareholders to non-GAAP net earnings attributable to common shareholders is presented in the attached schedules.
"While our top line continues to be pressured by challenging industry dynamics and ongoing global economic headwinds, we remained focused on managing our cost structure to drive improved operating earnings and margins in the third quarter," said Thomas J. Quinlan III, RR Donnelley's President and Chief Executive Officer. "As we close the year and look ahead to 2013, our focus on aggressively aligning the cost structure with revenue will remain intact."