Revenue during the quarter grew 3.70 percent to $1,876.30 million from $1,809.30 million in the previous year period. Gross margin for the quarter contracted 126 basis points over the previous year period to 19.38 percent. Operating margin for the quarter stood at negative 24.88 percent as compared to a positive 4.83 percent for the previous year period.

Operating loss for the quarter was $466.90 million, compared with an operating income of $87.40 million in the previous year period.

However, the adjusted operating income for the quarter stood at $101.80 million compared to $100.60 million in the prior year period. At the same time, adjusted operating margin contracted 13 basis points in the quarter to 5.43 percent from 5.56 percent in the last year period.

"The fourth quarter of 2016 was a pivotal quarter in our history as we completed the previously announced spinoffs of LSC Communications and Donnelley Financial Solutions at the beginning of the quarter and then began operating as a standalone company intensely focused on providing integrated multichannel communications, supply chain and logistics solutions to our customers," said Dan Knotts, RR Donnelley’s president and chief executive officer. "We are pleased with our fourth quarter results as we grew both our net sales and non-GAAP income from operations. And, although we exited the spin with debt leverage above our long-term target range, we remain on track to utilize the proceeds from disposing of our equity stakes in LSC Communications and Donnelley Financial Solutions, as well as cash generated from ongoing operating activities, to reduce our outstanding debt obligations."

For financial year 2017, R.R. Donnelley & Sons Company projects revenue to be in the range of $6,800 million to $7,000 million. The company projects adjusted operating income to be in the range of $275 million to $300 million. It company forecasts diluted earnings per share to be in the range of $0.90 to $1.20 on adjusted basis.

The company has spent $210.50 million cash to meet investing activities during the year as against cash outgo of $317.10 million in the last year.

Cash flow from financing activities was $29 million for the year as against cash outgo of $436.50 million in the last year period.

Cash and cash equivalents stood at $317.50 million as on Dec. 31, 2016, up 9.98 percent or $28.80 million from $288.70 million on Dec. 31, 2015.

Working capital increases sharply
R.R. Donnelley & Sons Company has recorded an increase in the working capital over the last year. It stood at $965.80 million as at Dec. 31, 2016, up 26.35 percent or $201.40 million from $764.40 million on Dec. 31, 2015. Current ratio was at 1.62 as on Dec. 31, 2016, up from 1.33 on Dec. 31, 2015.

Cash conversion cycle (CCC) has increased to 14 days for the quarter from 11 days for the last year period. Days sales outstanding went up to 33 days for the quarter compared with 31 days for the same period last year.

Days inventory outstanding was almost stable at 12 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 30 days for the quarter from 32 for the same period last year.