NYSE$DFIN

Donnelley Financial Solutions Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Donnelley Financial Solutions reported first-quarter 2021 results with revenue up 11.1% and Adjusted EBITDA up 136.2% compared to the first quarter of 2020.

Donnelley Financial Solutions (DFIN) reported a strong first quarter in 2021, with significant growth in net sales and Adjusted EBITDA. Net sales increased by 11.1% to $245.3 million, driven by strength in capital markets and software solutions. Adjusted EBITDA saw a substantial increase of 136.2% to $71.1 million, with the Adjusted EBITDA margin more than doubling to 29.0%.

  • Net sales increased by 11.1% compared to Q1 2020, reaching $245.3 million.
  • Software solutions net sales grew by 27.5% year-over-year, accounting for 24.6% of total net sales.
  • Adjusted EBITDA increased by 136.2% compared to Q1 2020, reaching $71.1 million.
  • Adjusted EBITDA margin more than doubled, reaching 29.0%.

Headline financials

Total Revenue

$245M

Previous: $221M+11.1%
EPS (adj)

$1.15

Previous: $0.21+447.6%
Adjusted EBITDA

$71.1M

Previous: $30.1M+136.2%
Adjusted EBITDA Margin

29.0%

Previous: 13.6%+113.2%
Capital Expenditures

-$8M

Previous: -$6.9M-15.9%
Free Cash Flow

$27.2M

Previous: -$2.8M+1071.4%
Net Income

$35.2M

Previous: $4.1M+758.5%
Operating Income

$50.9M

Previous: $11.9M+327.7%
Gross Profit

-$112M

Previous: -$137M+18.8%
Cash & Equivalents

$38.5M

Previous: $7.7M+400.0%
Total Assets

$900M

Previous: $935M-3.7%
Stock-Based Comp

$3.1M

Previous: $2.3M+34.8%

Revenue & EPS history

Donnelley Financial Solutions · Revenue · Quarterly

$245M

Q1 2021+11.1%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Donnelley Financial Solutions · $245M total across 3 segments · Q1 2021

  • Tech-enabled Services
    $119M+44.7%
  • Print and Distribution
    $66.5M-27.3%
  • Software Solutions
    $60.3M+27.5%

Forward guidance

The company anticipates the momentum in equity capital markets will continue into the second quarter and reaffirms estimates for print-related net sales reduction of approximately $130 million to $140 million, a net earnings reduction of approximately $4 million to $7 million, and an Adjusted EBITDA reduction of approximately $5 million to $10 million for 2021.

Tailwinds

  • Momentum in equity capital markets is expected to continue into Q2 2021.
  • Company is well-positioned to benefit from market leadership.
  • Company remains focused on investing in software products.
  • Company aims to grow software solutions sales.
  • Company is focused on the "44 in '24" strategy to create shareholder value.

Headwinds

  • SEC Rule 30e-3 is expected to reduce print-related 2021 net sales by approximately $130 million to $140 million.
  • Associated reduction in net earnings is expected to be approximately $4 million to $7 million in 2021.
  • Associated reduction in Adjusted EBITDA is expected to be approximately $5 million to $10 million in 2021.
  • SEC Rule 498A is expected to reduce print-related 2021 net sales.
  • Exiting certain printing and distribution relationships is expected to reduce print-related 2021 net sales.

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 2021

Historical avgQ1 2021

-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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