MIRA INFORM REPORT

 

 

Report Date :

25.01.2011

 

IDENTIFICATION DETAILS

 

Name :

R R DONNELLEY&SONS COMPANY

 

 

Registered Office :

Corporation Trust Center 1209 Orange Street - Wilmington - New Castle - DE

 

 

Country :

United States 

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

07.05.1956

 

 

Legal Form :

Corporation for Profit

 

 

Line of Business :

Communications Provider

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

United States 

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

GEOPOLITICS - UNITED STATES

 

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal


Economic Risk: Nil

Currency: USD

Branch Situation: Stable

 

 

IDENTIFICATION

 

Ordered as:

R R Donnelley & Sons Company

Address in the order:

111 South Wacker Drive, Chicago, IL 60606

 

 

Legal Name:

R DONNELLEY&SONS COMPANY

 

 

Legal Address

Corporation Trust Center 1209 Orange Street - Wilmington - New Castle - DE - USA (Registered agent)

Operative Address

111 South Wacker Drive - Chicago, IL 60606-4301 - USA (headquarters)

Telephone:

(312) 326-8000

ID :

0499927

Fax:

(312) 326-8000

Legal Form:

Corporation for Profit

Email:

info@rrdonnelley.com

Registered in:

Delaware

Website:

http://www.rrdonnelley.com/

Date Created:

1864

Manager:

Mr. Thomas J. Quinlan III, CEO

Date Incorporated:

May, 7th. 1956

Staff:

56,800

Stock:

205,474,233

 

 

Value:

$1.25 par value

Activity:

Communications provider

 

 

BANKS

 

Name of the Bank

CITIBANK, N.A.

Name of the Bank

LASALLE NATIONAL BANK ASSOCIATION

 

BUSINESS

 

HISTORY

 

The company was created in 1864

PRINCIPAL ACTIVITY

 

Communications provider

Products/Services description:

 

The company's primary products and related service offerings include magazines, catalogs, retail inserts, books, directories, financial print, direct mail, forms, labels, office products, statement printing, pre media, and logistics services.

 

R.R. Donnelley & Sons Company also offers business process outsourcing services that comprise transactional print and outsourcing services, statement printing, direct mail, and print management services; and product configuration, customized kitting, and order fulfillment for technology, medical device, and other companies.

Sales are:

 

Wholesale

Clients:

 

Professionals of the industry, mainly the Business services industry

Operations area:

 

National, International

The company exports to worldwide, depending on the demand

The subject employs 56,800 employee(s)

PAYMENTS

 

made on a 85 days basis - monitored over the last 12 months

 

 

LOCATION

Headquarters

 

The company is headquartered at: 111 South Wacker Drive - Chicago, IL 60606-4301 - USA

Comments on location:

 

The Company leases or owns 344 U.S. facilities, some of which have multiple buildings and warehouses.

 

The Company leases or owns 203 international facilities in Canada, Latin America, South America, Europe, and Asia.

 

 

Shareholders - Manager - Related Companies

 

Listed at the stock exchange:

 

YES

Capital:

 

% of Shares Held by All Insider and 5% Owners: 0%

% of Shares Held by Institutional & Mutual Fund Owners: 88%

% of Float Held by Institutional & Mutual Fund Owners: 89%

Number of Institutions Holding Shares: 384

Shareholders Parent Company(ies):

 

Major Direct Holders

 

Quinlan Thomas J Iii

Paloian John

Knotts Daniel L.

Bettman Suzanne S.

Mchugh Miles W.

 

Top Institutional Holders

 

Allianz Global Investors of America L.P.

Capital Research Global Investors

Vanguard Group, INC. (THE)

Putnam Investment Management, LLC

Ameriprise Financial, Inc.

State Street Corporation

Lsv Asset Management

Elm Ridge Management LLC

BlackRock Institutional Trust Company, N.A.

Blackrock Investment Management LLC

 

Top Mutual Fund Holders

 

Allianz Fds-NFJ Dividend Value Fd

American Mutual Fund INC

Investment Company Of America

Income Fund Of America INC

Putnam Voyager Fund

Vanguard Mid-Cap Index Fund

Vanguard Total Stock Market Index Fund

American Beacon Large Cap Value Fd

Vanguard 500 Index Fund

Ishares Dow Jones Select Dividend Index Fund

Management:

 

-Mr. Thomas J. Quinlan III, Chief Exec. Officer, President

-Mr. Miles W. McHugh, Chief Financial Officer and Exec. Vice President

-Mr. John R. Paloian, Chief Operating Officer       

-Mr. Daniel L. Knotts, Exec. Vice President and Group Pres of RR Donnelley Brand           

-Ms. Suzanne S. Bettman, Chief Compliance Officer, Exec. Vice President, Gen. Counsel and Corp. Sec. 

Related Companies:

 

Anthology, Inc.            

Asia Printers Group Limited                     

Astron Lasercom SA                 

Banta Corporation                     

Banta Europe BV                      

Banta Global Turnkey (Shenzhen) Co., Ltd.                     

Banta Global Turnkey LTD                     

Banta Global Turnkey BV                      

Banta Global Turnkey Kft                       

Banta Global Turnkey Limited                

Banta Global Turnkey Ltd.                     

Banta Global Turnkey Ltd.                     

Banta Global Turnkey, Ltd.                    

Banta Global Turnkey, s.r.o.                  

Banta Integrated Media-Cambridge, Inc.              

Beijing Donnelley Printing Co., Ltd.                     

BGT-US LLC                

Brightime Ventures Limited

 

(Among others)

 

Financials - COMMERCIAL TRENDS AND FORECAST

 

The subject is a public company traded at the stock exchange at NASDAQ under ticker symbol "RRD". Please find enclosed the financial statements

 

 There are several UCC** files listed with the Secretary of State of Delaware.

 

Filing Number: 2010 3811589

Filing Date: 11-01-2010

Filing Jurisdiction: DELAWARE

Secured Party: PACIFIC RIM CAPITAL, INC.

Secured Party Address: 15 ENTERPRISE STE 400

ALISO VIEJO  CA   92656- 2655

Debtor: RR DONNELLEY & SONS COMPANY

 

 

Filing Number: P10008338-2

Filing Date: 10-08-2010

Filing Jurisdiction: IOWA

Secured Party: ANDERSON & VREELAND, INC.

Secured Party Address: 8 EVANS ST

FAIRFIELD  NJ   07004- 2210

Debtor: R.R. DONNELLEY & SONS COMPANY

 

Filing Number: 015664533

Filing Date: 10-08-2010

Filing Jurisdiction: ILLINOIS

Secured Party: ANDERSON & VREELAND, INC.

Secured Party Address: 8 EVANS ST

FAIRFIELD  NJ   07004- 2210

Debtor: R.R. DONNELLEY & SONS COMPANY

 

 

Filing Number: 2010 3084468

Filing Date: 09-02-2010

Filing Jurisdiction: DELAWARE

Secured Party: OCE NORTH AMERICA, INC.

Secured Party Address: 5600 BROKEN SOUND BLVD NW

BOCA RATON  FL   33487- 3515

Debtor: R.R. DONNELLEY & SONS COMPANY

 

 

Filing Number: 2010 3056763

Filing Date: 09-01-2010

Filing Jurisdiction: DELAWARE

Secured Party: OCE NORTH AMERICA, INC.

Secured Party Address: 5600 BROKEN SOUND BLVD NW

BOCA RATON  FL   33487- 3515

Debtor: R.R. DONNELLEY & SONS COMPANY

 

 

There are various claims, lawsuits, and pending actions against the Company and its subsidiaries incident to the operations of its businesses. It is the opinion of management, after consultation with counsel, that the ultimate resolution of such claims, lawsuits and pending actions will not have a material adverse effect on the Company's consolidated financial position, results of operations or liquidity.

 

THE COMPANY IS NOT LISTED ON THE OFAC LIST.*

 

 For information:

 

* The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

** The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America. 

 

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

 

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

 

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

 

 

Rating

 

Local credit bureau gave a Low credit rate.

 

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

 Final Opinion

 

This company has been in business for 146 years; it has a staff of 56,800, which makes it a large sized company.

 

There were no significant legal filings found against the company or its legal representatives.

 

Due to a NEGATIVE net income for the year 2009, we strongly suggest working with GUARANTEES.

 

 

 

SUMMARY

 


FINANCIAL SUMMARY


DEBT COLLECTIONS AND PAYMENTS

Profitability

NEGATIVE

Public Records

NO

Indebtedness

CONTROLLED

Payments

REGULAR

Cash

NORMAL

 

 

 

Financial

 

Income Statement

 

View: Annual Data |

All numbers in thousands

 

Period Ending

Dec 31, 2009

Dec 31, 2008

Dec 31, 2007

Total Revenue

9,857,400  

11,581,600  

11,587,100  

Cost of Revenue

7,462,900  

8,576,300  

8,532,400  

 

Gross Profit

2,394,500  

3,005,300  

3,054,700  

 

 

Operating Expenses

 

Research Development

-  

-  

-  

 

Selling General and Administrative

1,088,500  

1,220,500  

1,302,300  

 

Non Recurring

382,700  

1,184,700  

839,000  

 

Others

579,000  

640,600  

598,300  

 

 

 

Total Operating Expenses

-  

-  

-  

 

 

 

 

 

Operating Income or Loss

344,300  

(40,500)

315,100  

 

 

 

 

Income from Continuing Operations

 

 

Total Other Income/Expenses Net

(16,600)

(2,400)

3,600  

 

 

Earnings Before Interest And Taxes

93,100  

(42,900)

318,700  

 

 

Interest Expense

-  

226,400  

227,300  

 

 

Income Before Tax

93,100  

(269,300)

91,400  

 

 

Income Tax Expense

114,500  

(83,900)

136,500  

 

 

Minority Interest

(5,900)

(6,300)

(3,300)

 

 

 

 

Net Income From Continuing Ops

(21,400)

(191,700)

(48,400)

 

 

 

 

Non-recurring Events

 

 

Discontinued Operations

-  

1,800  

(500)

 

 

Extraordinary Items

-  

-  

-  

 

 

Effect Of Accounting Changes

-  

-  

-  

 

 

Other Items

-  

-  

-  

 

 

 

 

 

Net Income

(27,300)

(189,900)

(48,900)

 

Preferred Stock And Other Adjustments

-  

-  

-  

 

 

 

Net Income Applicable To Common Shares

($27,300)

($189,900)

($48,900)

 

 

 

Balance Sheet

 

View: Annual Data |

All numbers in thousands

 

Period Ending

Dec 31, 2009

Dec 31, 2008

Dec 31, 2007

 

Assets

Current Assets

 

Cash And Cash Equivalents

499,200  

331,900  

442,900  

 

Short Term Investments

-  

-  

-  

 

Net Receivables

1,812,900  

2,148,800  

2,283,400  

 

Inventory

561,800  

695,700  

709,500  

 

Other Current Assets

87,000  

104,600  

85,500  

 

Total Current Assets

2,960,900  

3,281,000  

3,521,300  

Long Term Investments

-  

-  

-  

Property Plant and Equipment

2,271,400  

2,564,000  

2,726,000  

Goodwill

2,333,300  

2,425,900  

3,264,900  

Intangible Assets

747,400  

831,100  

1,323,200  

Accumulated Amortization

-  

-  

-  

Other Assets

434,600  

392,300  

1,251,300  

Deferred Long Term Asset Charges

-  

-  

-  

 

Total Assets

8,747,600  

9,494,300  

12,086,700  

 

Liabilities

Current Liabilities

 

Accounts Payable

1,699,800  

1,409,800  

1,383,400  

 

Short/Current Long Term Debt

339,900  

923,500  

725,000  

 

Other Current Liabilities

-  

153,500  

656,800  

 

Total Current Liabilities

2,039,700  

2,486,800  

2,765,200  

Long Term Debt

2,982,500  

3,203,300  

3,601,900  

Other Liabilities

1,358,900  

1,224,800  

940,000  

Deferred Long Term Liability Charges

205,500  

260,900  

872,300  

Minority Interest

27,000  

-  

-  

Negative Goodwill

-  

-  

-  

 

Total Liabilities

6,613,600  

7,175,800  

8,179,400  

 

Stockholders' Equity

Misc Stocks Options Warrants

-  

-  

-  

Redeemable Preferred Stock

-  

-  

-  

Preferred Stock

-  

-  

-  

Common Stock

303,700  

303,700  

303,700  

Retained Earnings

662,900  

903,800  

1,312,900  

Treasury Stock

(1,193,800)

(1,194,000)

(909,000)

Capital Surplus

2,906,200  

2,885,700  

2,858,400  

Other Stockholder Equity

(545,000)

(580,700)

341,300  

 

Total Stockholder Equity

2,134,000  

2,318,500  

3,907,300  

 

Net Tangible Assets

($946,700)

($938,500)

($680,800)

 

 

Income Statement

 

View: | Quarterly Data

All numbers in thousands

 

Period Ending

Sep 30, 2010

Jun 30, 2010

Mar 31, 2010

Dec 31, 2009

Total Revenue

2,488,100  

2,408,600  

2,415,100  

2,583,100  

Cost of Revenue

1,898,700  

1,819,600  

1,841,700  

1,982,400  

 

Gross Profit

589,400  

589,000  

573,400  

600,700  

 

 

Operating Expenses

 

Research Development

-  

-  

-  

-  

 

Selling General and Administrative

261,700  

268,200  

273,500  

281,300  

 

Non Recurring

48,700  

10,700  

15,500  

148,600  

 

Others

130,300  

134,800  

138,600  

142,300  

 

 

 

Total Operating Expenses

-  

-  

-  

-  

 

 

 

 

 

Operating Income or Loss

148,700  

175,300  

145,800  

28,500  

 

 

 

 

Income from Continuing Operations

 

 

Total Other Income/Expenses Net

700  

(800)

(9,000)

(1,700)

 

 

Earnings Before Interest And Taxes

91,800  

121,700  

81,100  

(29,100)

 

 

Interest Expense

-  

-  

-  

-  

 

 

Income Before Tax

91,800  

121,700  

81,100  

(29,100)

 

 

Income Tax Expense

39,000  

32,200  

32,400  

49,500  

 

 

Minority Interest

500  

(700)

3,900  

(900)

 

 

 

 

Net Income From Continuing Ops

53,300  

88,800  

52,600  

(73,600)

 

 

 

 

Non-recurring Events

 

 

Discontinued Operations

-  

-  

-  

-  

 

 

Extraordinary Items

-  

-  

-  

-  

 

 

Effect Of Accounting Changes

-  

-  

-  

-  

 

 

Other Items

-  

-  

-  

-  

 

 

 

 

 

Net Income

53,300  

88,800  

52,600  

(79,500)

 

Preferred Stock And Other Adjustments

-  

-  

-  

-  

 

 

 

Net Income Applicable To Common Shares

$53,300  

$88,800  

$52,600  

($79,500)

 

 

 

Balance Sheet

 

View: Annual Data |

All numbers in thousands

 

Period Ending

Dec 31, 2009

Dec 31, 2008

Dec 31, 2007

 

Assets

Current Assets

 

Cash And Cash Equivalents

499,200  

331,900  

442,900  

 

Short Term Investments

-  

-  

-  

 

Net Receivables

1,812,900  

2,148,800  

2,283,400  

 

Inventory

561,800  

695,700  

709,500  

 

Other Current Assets

87,000  

104,600  

85,500  

 

Total Current Assets

2,960,900  

3,281,000  

3,521,300  

Long Term Investments

-  

-  

-  

Property Plant and Equipment

2,271,400  

2,564,000  

2,726,000  

Goodwill

2,333,300  

2,425,900  

3,264,900  

Intangible Assets

747,400  

831,100  

1,323,200  

Accumulated Amortization

-  

-  

-  

Other Assets

434,600  

392,300  

1,251,300  

Deferred Long Term Asset Charges

-  

-  

-  

 

Total Assets

8,747,600  

9,494,300  

12,086,700  

 

Liabilities

Current Liabilities

 

Accounts Payable

1,699,800  

1,409,800  

1,383,400  

 

Short/Current Long Term Debt

339,900  

923,500  

725,000  

 

Other Current Liabilities

-  

153,500  

656,800  

 

Total Current Liabilities

2,039,700  

2,486,800  

2,765,200  

Long Term Debt

2,982,500  

3,203,300  

3,601,900  

Other Liabilities

1,358,900  

1,224,800  

940,000  

Deferred Long Term Liability Charges

205,500  

260,900  

872,300  

Minority Interest

27,000  

-  

-  

Negative Goodwill

-  

-  

-  

 

Total Liabilities

6,613,600  

7,175,800  

8,179,400  

 

Stockholders' Equity

Misc Stocks Options Warrants

-  

-  

-  

Redeemable Preferred Stock

-  

-  

-  

Preferred Stock

-  

-  

-  

Common Stock

303,700  

303,700  

303,700  

Retained Earnings

662,900  

903,800  

1,312,900  

Treasury Stock

(1,193,800)

(1,194,000)

(909,000)

Capital Surplus

2,906,200  

2,885,700  

2,858,400  

Other Stockholder Equity

(545,000)

(580,700)

341,300  

 

Total Stockholder Equity

2,134,000  

2,318,500  

3,907,300  

 

Net Tangible Assets

($946,700)

($938,500)

($680,800)

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.58

UK Pound

1

Rs.72.79

Euro

1

Rs.62.01

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.