NYSE$DFIN

Donnelley Financial Solutions Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Donnelley Financial Solutions reported strong performance driven by capital markets transactional activity and cost control initiatives.

Donnelley Financial Solutions reported second-quarter net sales of $254.0 million, a decrease of 1.9% year-over-year. GAAP net loss was $1.3 million, or $0.04 per diluted share, while non-GAAP fully diluted earnings per share were $0.87, up $0.13 from the second quarter of 2019. Adjusted EBITDA was $60.8 million, up 8.4% from the second quarter of 2019, with an Adjusted EBITDA margin of 23.9%.

  • Net sales increased significantly from the outlook provided on the first-quarter earnings call, driven by stronger than anticipated capital markets transactional activity.
  • Software solutions net sales accounted for 18.7% of total net sales, up 20 basis points from the second quarter of 2019.
  • Non-GAAP fully diluted earnings per share increased by $0.13 from the second quarter of 2019, primarily due to cost control initiatives and an improved business mix.
  • Adjusted EBITDA margin improved by 220 basis points from the second quarter of 2019.

Headline financials

Total Revenue

$254M

Previous: $259M-1.9%
EPS (adj)

$0.87

Previous: $0.74+17.6%
Adjusted EBITDA

$60.8M

Previous: $56.1M+8.4%
Adjusted EBITDA Margin

23.9%

Previous: 21.7%+10.1%
Capital Expenditures

-$8.8M

Previous: -$11.1M+20.7%
Free Cash Flow

-$10.1M

Previous: $6.2M-262.9%
Net Income

-$1.3M

Previous: $17.3M-107.5%
Operating Income

$3.9M

Previous: $33.4M-88.3%
Gross Profit

-$141M

Previous: $1.7M-8388.2%
Cash & Equivalents

$37.4M

Previous: $9.5M+293.7%
Total Assets

$964M

Previous: $1.01B-4.5%
Stock-Based Comp

$3.1M

Previous: $3.6M-13.9%

Revenue & EPS history

Donnelley Financial Solutions · Revenue · Quarterly

$254M

Q2 2020-1.9%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Donnelley Financial Solutions · $254M total across 3 segments · Q2 2020

  • Tech-enabled Services
    $115M
  • Print and Distribution
    $91M
  • Software Solutions
    $47.6M

Forward guidance

The combination of our market position, cost structure and strong balance sheet positions us well heading into the back half of the year and into 2021.

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 Q2 2020

Historical avgQ2 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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