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Dec 31, 2020
Donnelley Financial Solutions Q4 2020 Earnings Report
Reported solid consolidated net sales growth and record quarterly software solutions net sales and Free Cash Flow.
Key Takeaways
Donnelley Financial Solutions reported a strong fourth quarter and full year 2020. The company's net sales increased by 10.5% compared to the fourth quarter of 2019, driven by a strong IPO market and growth in software solutions. Record quarterly software solutions net sales and Free Cash Flow were achieved. The company also announced a $50 million common stock repurchase program.
Net sales increased by 10.5% from the fourth quarter of 2019, driven by a strong IPO market and continued growth in software solutions.
Record quarterly software solutions net sales increased by 8.0% from the fourth quarter of 2019.
Record quarterly operating cash flow increased by 73.3% from the fourth quarter of 2019.
The company announced a $50 million common stock repurchase program.
Revenue by Segment
Forward Guidance
The implementation of SEC Rule 30e-3 (elimination or reduction of print annual and semi-annual reports), Rule 498A (elimination or reduction of print summary prospectus) and the Company’s exiting of certain printing and distribution relationships is expected to reduce the Company’s print-related 2021 net sales by approximately $130 million to $140 million, and the associated reduction in net earnings and Adjusted EBITDA is expected to be approximately $4 million to $7 million and approximately $5 million to $10 million, respectively, in 2021.
Challenges Ahead
- Print-related net sales are expected to be reduced by approximately $130 million to $140 million in 2021.
- The associated reduction in net earnings is expected to be approximately $4 million to $7 million in 2021.
- The associated reduction in Adjusted EBITDA is expected to be approximately $5 million to $10 million in 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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