Company profile

Ticker
RRD
Exchange
Website
CEO
Daniel L. Knotts
Employees
Incorporated in
Location
Fiscal year end
Industry (SEC)
Former names
Donnelley R R & Sons Co
SEC CIK
IRS number
361004130

RRD stock data

(
)

Calendar

29 Apr 20
4 Jul 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Sep 19 Jun 19
Revenue 1.41B 1.63B 1.62B 1.51B
Net income -12.9M -89.7M 12.9M -7.4M
Diluted EPS -0.18 -1.27 0.18 -0.1
Net profit margin -0.92% -5.52% 0.80% -0.49%
Operating income 8.8M -19.4M 73.8M 20.9M
Net change in cash 259.9M 46.1M -75.8M -53.8M
Cash on hand 450.7M 190.8M 144.7M 220.5M
Cost of revenue 1.14B 1.3B 1.31B 1.23B
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 6.28B 6.8B 6.94B 6.83B
Net income -92.7M -9.6M -33.2M -494.6M
Diluted EPS -1.31 -0.16 -0.49 -7.09
Net profit margin -1.48% -0.14% -0.48% -7.24%
Operating income 98.6M 208.6M 211.4M -324.9M
Net change in cash -179.8M 97.2M -44.1M 28.8M
Cash on hand 190.8M 370.6M 273.4M 317.5M
Cost of revenue 5.09B 5.54B 5.62B 5.48B

Financial data from company earnings reports

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
14 May 20 Pope John C Common Stock Grant Aquire A No 1.03 117,486 121.01K 327,269
14 May 20 Pope John C Phantom Stock Common Stock Grant Aquire A No 0 91,251 0 91,251
14 May 20 Phipps Paul Cody Common Stock Grant Aquire A No 1.03 76,502 78.8K 159,343
14 May 20 Phipps Paul Cody Phantom Stock Common Stock Grant Aquire A No 0 59,420 0 59,420
14 May 20 Gianinno Susan M Common Stock Grant Aquire A No 1.03 76,502 78.8K 183,323
14 May 20 Gianinno Susan M Phantom Stock Common Stock Grant Aquire A No 0 59,420 0 59,420
14 May 20 Mclevish Timothy R Common Stock Grant Aquire A No 1.03 76,502 78.8K 179,359
14 May 20 Mclevish Timothy R Phantom Stock Common Stock Grant Aquire A No 0 59,420 0 59,420
14 May 20 Irene M Esteves Common Stock Grant Aquire A No 1.03 76,502 78.8K 154,863
14 May 20 Irene M Esteves Phantom Stock Common Stock Grant Aquire A No 0 59,420 0 59,420
76.9% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 126 146 -13.7%
Opened positions 10 16 -37.5%
Closed positions 30 21 +42.9%
Increased positions 36 45 -20.0%
Reduced positions 50 49 +2.0%
13F shares
Current Prev Q Change
Total value 278.55M 780.79M -64.3%
Total shares 54.87M 63.45M -13.5%
Total puts 17.1K 1.45M -98.8%
Total calls 34.7K 276.6K -87.5%
Total put/call ratio 0.5 5.3 -90.6%
Largest owners
Shares Value Change
BLK BlackRock 10.89M $10.44M -8.8%
Saba Capital Management 4.72M $4.53M +5785.3%
Vanguard 4.49M $4.3M -7.2%
Charles Schwab Investment Management 3.63M $3.48M +22.6%
Whitebox Advisors 2.4M $2.3M +89.2%
STT State Street 2.36M $2.26M +6.0%
BAC Bank of America 2.04M $1.95M -1.5%
Acadian Asset Management 2.04M $1.95M -6.9%
Brigade Capital Management 1.84M $1.74M +31.5%
JPM JPMorgan Chase & Co. 1.56M $1.5M +17.8%
Largest transactions
Shares Bought/sold Change
Chatham Asset Management 0 -9.14M EXIT
Saba Capital Management 4.72M +4.64M +5785.3%
Whitebox Advisors 2.4M +1.13M +89.2%
Jacobs Levy Equity Management 0 -1.1M EXIT
BLK BlackRock 10.89M -1.05M -8.8%
NMR Nomura 1.52M +708.22K +87.0%
Charles Schwab Investment Management 3.63M +668.43K +22.6%
Aqr Capital Management 653.95K +582.42K +814.3%
Norges Bank 0 -564.07K EXIT
BCS Barclays 58.62K -551.43K -90.4%

Financial report summary

?
Risks
  • Global market and economic conditions, as well as the effects of these conditions on our clients’ businesses, may adversely affect us.
  • Changes in customer preferences have reduced, and may continue to reduce, demand for our products and services in certain markets. In addition, failure to manage changes in our relationships with our significant clients may have an adverse effect on our results of operations.
  • Our business is dependent upon brand reputation and the quality of our client support and services offerings. If we fail to offer effective client support and services, our brand reputation could be harmed and clients may not use our products and services, which may have an adverse effect on our results of operations.
  • Our operations are subject to political and regulatory risks in the countries in which we operate.
  • We are subject to taxation related risks in multiple jurisdictions.
  • Adverse financial market conditions, our operating performance and our creditworthiness may limit our ability to obtain future financing and the cost of any such capital may be higher than in past periods.
  • Our ABL Credit Agreement limits our borrowing capacity to the value of certain of our assets. In addition, our obligations under our ABL Credit Agreement and Term Loan Credit Agreement are secured by substantially all of the assets of the Company and our material domestic subsidiaries and lenders may exercise remedies against the collateral if an event of default occurs.
  • Restrictive covenants in our ABL Credit Agreement and Term Loan Credit Agreement could limit our financial and operating flexibility.
  • An increase in interest rates could have a material adverse effect on our business.
  • We may be adversely affected by a decline in the availability of raw materials or by fluctuations in the costs of paper, ink, energy and other raw materials.
  • We may be unable to improve our operating efficiency rapidly enough to meet market conditions.
  • A decline in our Company’s or our individual reporting units’ expected profitability may result in the impairment of assets, including goodwill, other long-lived assets and deferred tax assets.
  • Our services depend on the reliability of computer systems we and our vendors maintain. If our systems fail or are unreliable, our operations may be adversely affected.
  • We may suffer a material data breach of sensitive information. If our efforts to protect the security of such information are unsuccessful, any such material failures may result in significant costs to investigate and remediate the data-breach, private litigation expense and costly government enforcement actions and penalties, and may have an adverse effect on our operations and reputation.
  • We have in the past acquired, and intend in the future to acquire, other businesses, and we may be unable to successfully integrate the operations of these businesses and may not achieve the cost savings and increased net sales anticipated as a result of these acquisitions.
  • The trend of increasing costs to provide health care and other benefits to our employees and retirees may continue.
  • Changes in market conditions or lower returns on assets may increase required pension and OPEB plan contributions in future periods.
  • We may be more vulnerable to adverse events and trends associated with operations outside the U.S.
  • We are exposed to significant risks related to potential adverse changes in currency exchange rates.
  • Catastrophic events may damage or destroy our factories, distribution centers or other facilities, which may disrupt our business.
  • Changes in rules and regulations to which we are subject may increase our costs, which may adversely affect us.
  • Changes in postal rates, regulations and delivery structure may adversely affect demand for our products and services.
  • Increased transportation costs and changes in the relationships with independent shipping companies may have an adverse effect on our business.
  • Undetected errors or failures found in our products and services may result in loss of or delay in market acceptance of our products and services that may seriously harm our business.
  • We may be contingently liable for various LSC Communications, Inc. and Donnelley Financial Solutions, Inc. operating leases.
  • The spinoff transactions of LSC and Donnelley Financial in October 2016 could result in significant tax liability.
Management Discussion
  • Net sales for the year ended December 31, 2019 were $6,276.2 million, a decrease of $524.0 million, or 7.7%, compared to the year ended December 31, 2018. Net sales decreased $307.3 million due to business dispositions and $54.9 million due to changes in foreign exchange rates. Net sales also decreased due to lower volume in commercial print due to ongoing secular pressure and the continued planned reductions in low margin sales, as well as price pressures. Decreases in net sales were partially offset by higher volume in direct marketing primarily attributable to the 2020 Census contract.
  • Income from operations for the year ended December 31, 2019 was $98.6 million, a decrease of $110.0 million compared to the year ended December 31, 2018. Income from operations decreased due to a non-cash charge of $98.5 million to recognize the impairment of goodwill in the logistics reporting unit within the Business Services segment, as well as cost inflation, price pressures and lower sales volume, partially offset by lower selling, general and administrative expenses and lower depreciation and amortization expense.
  • We continue to assess opportunities to reduce our cost structure and enhance productivity throughout the business. During the year ended December 31, 2019, we realized cost savings from previous restructuring activities, including the reorganization of administrative and support functions across all segments, as well as facility consolidations.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
New words: absence, accelerate, accelerated, adequacy, adhere, adherence, aforementioned, aggressively, agreed, aimed, amidst, assurance, began, benchmark, broad, cancellation, capable, Caribbean, CDC, Chile, Chilean, cloth, concentrated, concentration, connection, counterparty, cruise, default, degree, delayed, difficult, discretionary, Disease, disposable, distancing, diversified, dollar, doubtful, downturn, duration, economy, effort, emerged, emergency, employ, enforcing, entity, essential, essentially, evolving, face, fail, flexibility, flexible, Force, forced, forecast, forecasted, franchise, freeing, fully, functional, furlough, globe, governmental, growing, hand, heavily, highest, home, hotel, Hubei, hundred, hygiene, indemnify, ingenuity, Interbank, intervention, intraperiod, Investor, largest, leadership, lessen, lessor, lifetime, light, line, manner, marketplace, master, medical, merit, methodology, Mexico, minimal, mitigate, modification, monitor, monthly, navigate, nearer, nonperformance, notification, opportunistically, outbreak, Overview, pandemic, past, people, percent, posed, predicted, preserve, preserving, proactive, programmatic, Province, provision, quoted, recommendation, recovery, refinancing, repaid, reserve, safety, Seller, serve, settle, significantly, Simplifying, slightly, small, spinoff, spread, stabilizing, staggered, stand, strain, strategy, strong, successor, suspend, suspended, suspension, swap, Task, team, telecommuting, temporarily, temporary, training, travel, type, uncertain, uncollectible, vendor, voluntarily, weakened, wear, weather, withholding, workforce, world, written, Wuhan
Removed: acceptable, acceptance, amended, Amendment, application, approval, archival, audience, bank, billed, borrow, branded, capitalized, capitalizing, carry, clarity, classification, Cloud, collateral, combined, comparative, composition, configuration, contractually, country, creating, custom, deficit, deposit, description, disclose, durable, Easement, email, foregoing, forwarding, freight, generate, guaranteed, healthcare, hosting, imaging, impaired, impose, incurrence, industrial, initial, insignificant, interaction, intermodal, judgment, July, junior, lien, mail, managing, meeting, met, MotifTM, newsstand, offer, opening, option, order, package, packaged, parcel, permit, personalized, pharmaceutical, point, post, printed, producing, promotional, ranging, reclassify, regularly, released, repay, representing, require, restate, restated, restrictive, retail, retired, rigid, ROU, RRDigital, secure, segmentation, separating, shipment, shipped, situation, software, solution, spending, spot, stranded, sublease, subsequently, Supplemental, taxable, tender, testing, timing, transit, transportation, treating, truckload, typically, unfavorable, utilization, variety, workflow