NYSE$DFIN

Donnelley Financial Solutions Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Donnelley Financial Solutions reported first quarter results, showing a decrease in net sales but an increase in net earnings and adjusted EBITDA.

Donnelley Financial Solutions reported a decrease in net sales by 3.9% to $220.7 million compared to the first quarter of 2019. However, the company saw an increase in GAAP net earnings to $4.1 million and an improvement in Adjusted EBITDA to $30.1 million, with Adjusted EBITDA margin expanding by 330 basis points to 13.6%.

  • DFIN's revenue mix is improving towards software solutions and tech-enabled services.
  • Adjusted EBITDA margin expanded for the third consecutive quarter.
  • Total debt decreased by $75 million compared to Q1 2019.
  • The company retracted its full-year 2020 financial guidance due to COVID-19 uncertainty.

Headline financials

Total Revenue

$221M

Previous: $230M-3.9%
EPS (adj)

$0.21

Previous: $0.06+250.0%
Adjusted EBITDA

$30.1M

Previous: $23.7M+27.0%
Adjusted EBITDA Margin

13.6%

Previous: 10.3%+32.0%
Gross Margin

38.2%

No prior period
Operating Margin

5.4%

No prior period
Capital Expenditures

-$6.9M

Previous: -$15.1M+54.3%
Free Cash Flow

-$2.8M

Previous: -$16.5M+83.0%
Net Income

$4.1M

Previous: -$1.4M+392.9%
Operating Income

$11.9M

Previous: $6.6M+80.3%
Gross Profit

-$137M

Previous: $800K-17262.5%
Cash & Equivalents

$7.7M

Previous: $10.5M-26.7%
Total Assets

$935M

Previous: $1B-6.7%
Stock-Based Comp

$2.3M

Previous: $1.5M+53.3%

Revenue & EPS history

Donnelley Financial Solutions · Revenue · Quarterly

$221M

Q1 2020-3.9%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Donnelley Financial Solutions · $221M total across 3 segments · Q1 2020

  • Print and Distribution
    $91.5M
  • Tech-enabled Services
    $81.9M
  • Software Solutions
    $47.3M

Forward guidance

The company is suspending its previously announced full-year 2020 financial guidance due to the unpredictability of the duration and magnitude of the impact of the COVID-19 pandemic.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-2.6%

Avg return

Earnings day

-2.8%

Avg return

5 days after

-2.8%

Avg return

30 days after

40%

17 / 42 earnings

Positive

+25.5%

Q2 2022

Best reaction

-22.6%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-15.0%-23.6%
Q4 2025+12.3%+21.2%+20.0%
Q3 2025-14.3%-10.3%-5.1%
Q1 2025+3.9%+11.6%+17.4%
Q4 2024-22.6%-26.3%-32.5%
Q3 2024-11.6%-9.5%-5.7%
Q2 2024-7.0%-12.7%-4.0%
Q1 2024-0.6%+0.6%-2.9%
Q4 2023+3.2%+3.9%+1.4%
Q3 2023+1.8%+1.3%+6.9%
Q2 2023+1.0%+2.3%+6.2%
Q1 2023+1.6%+1.7%+8.9%
Q4 2022-14.6%-13.5%-22.0%
Q3 2022-18.9%-16.9%-8.9%
Q2 2022+25.5%+26.9%+17.0%
Q1 2022-14.6%-12.2%+0.4%
Q4 2021-3.9%+0.5%+3.3%
Q3 2021+15.4%+23.0%+12.5%
Q2 2021+10.4%+6.4%+5.3%
Q1 2021-16.4%-14.2%+1.1%
Q4 2020+14.4%+24.3%+20.9%
Q3 2020+2.6%-0.1%+22.4%
Q2 2020+23.1%+17.5%+9.9%
Q1 2020+13.1%+0.3%+35.6%
Q4 2019+1.4%+6.9%-37.3%
Q3 2019-16.4%-14.1%-10.4%
Q2 2019-1.0%-11.3%-22.0%
Q1 2019+6.4%+2.1%-18.3%
Q4 2018-12.0%-10.7%-7.8%
Q3 2018+6.9%+7.3%+1.1%
Q2 2018-10.4%-11.8%+0.8%
Q1 2018-7.3%-7.8%-17.8%
Q4 2017-15.4%-10.1%-14.2%
Q3 2017-8.2%-12.6%-4.5%
Q2 2017-5.9%-9.7%-7.7%
Q1 2016-2.2%-1.4%+2.6%
Q1 2017+3.6%-0.9%+15.7%
Q2 2016-13.9%-18.4%-25.9%
Q4 2016-13.9%-18.4%-25.9%
Q4 2014-13.9%-18.4%-25.9%
Q4 2015-5.5%-0.7%-2.0%
Q3 2016-5.5%-0.7%-2.0%
Q3 2015
Q2 2015
Q1 2015

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