Q1 2006 RR Donnelley Earnings Conference Call - Final.
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OPERATOR: Good morning. My name is Crystal and I’ll be your conference operator today. At this time I would like to welcome everyone to the RR Donnelley first quarter 2006 results conference call. [OPERATOR INSTRUCTIONS]. The host of today’s call is Mr. Dan Lieb, the Company’s Vice President of Investor Relations. Ladies and gentlemen, you may now begin your conference. DAN LIEB, IR, RR DONNELLEY: Thank you, Crystal. Good morning and thank you for joining us for RR Donnelley’s first quarter 2006 earnings conference call. Earlier this morning, we released our earnings report, a copy of which can be found in the investor section of rrdonnelley.com. During this call we will refer to forward-looking statements which are subject to uncertainties. For a complete discussion, please refer to the cautionary statement included in our earnings release and further detailed in our annual report on Form 10-K and other filings with the SEC. Further, we will discuss non- AAP and pro forma financial information during this call. We believe the presentation of non-GAAP and pro forma results provides you with useful supplementary information concerning the Company’s ongoing operation and are an appropriate way for you to evaluate the Company’s performance, but they are provided for informational purposes only. Please refer to the press release and related footnotes for GAAP information and a reconciliation of GAAP to non GAAP information. We have also posted to our website in the investors presentation section a description of non-GAAP measures to which we will refer on this call. This morning I’m joined by Mark Angelson, Chief Executive Officer, and executive vice presidents, Tom Quinlan and Michael Krause. I will now turn the call over to Mark. MARK ANGELSON, CEO, RR DONNELLEY: Thank you, Dan. Good morning everyone. As we announced last week, Glenn Richter will resign to take on expanded responsibilities at Nuveen Investments. I thank Glenn for his contribution and I wish him well in his new endeavor. I had high hopes for him with us and I will miss him. Glenn will remain with us to complete the first quarter reporting requirements and to ensure an orderly transition. One of the attributes of our management team is bench strength. EVP Operations, Tom Quinlan an experienced senior financial and operating executive who is intimately familiar with our business has agreed to take on the additional role of Interim Chief Financial Officer. Tom is widely respected in our business for his leadership skills and as an industry veteran who has served in senior financial and operating positions with R.R. Donnelly and its predecessors since 2000. Tom has been primarily responsible for the integration of RR Donnelley and Moore Wallace and the earlier integration of Moore corporation and Wallace computer services. We intend to name a permanent CFO after an appropriate process. Our momentum continued during the first quarter as revenues climbed 17.7% over the same quarter a year ago. And non GAAP earnings per share for the quarter were $0.57, up 5.6% from the comparable quarter in 2005. Pro forma organic revenue growth was 6.5%, as we won new customers and increased our share with existing clients and we realized additional revenue gains from acquisitions that we completed in fiscal 2005. The value that RR Donnelley creates by wrapping our unmatched product portfolio with a host of value-added services resonates with all our customers. We have long provided services that allow customers to outsource a range of business processes to us. From our earliest outsourcing of customers’ print functions decades ago to onsite facilities management of their digital asset libraries to fulfillment of vital customer relationship functions. |