DFIN - Earnings call transcript Q1 2021 | Donnelley Financial Solutions, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Dave Gardella

Thank you. Good morning, everyone and thank you for joining Donnelley Financial Solutions First Quarter 2021 Results Conference Call. This morning, we released our earnings report, a copy of which can be found in the Investors section of our website at dfinsolutions.com.

During this call, we'll refer to forward-looking statements that are subject to risks and uncertainties.

For a complete discussion, please refer to the cautionary statements included in our earnings release and further detailed in our most recent Annual Report on Form 10-K, quarterly report on Form 10-Q and other filings with the SEC. non-GAAP discuss will we financial information. Further, evaluate the with useful believe and an you presentation company's of you provides is to for way information financial appropriate company's supplementary operations performance. non-GAAP ongoing We the information the concerning informational however, only. are, They purposes for provided reconciliations the and GAAP Please financial refer tables GAAP financial release earnings to to related non-GAAP and for information of information. by Eric Johnson, Turner. I'm Clay, and Craig joined Dan this Leib; morning Kami the call over to turn Dan. now I'll

Dan Leib

quarter XX% adjusted year's quarter. EBITDA than up EBITDA and and quarter. XXX% margin adjusted from on proactive remains significant DFIN, been services From software you, healthy. quarterly that performance, that over million, we increase the and doubling This first operating growth a margin of as adjusted a in our our in sales, at last as high non-GAAP quarter solutions our last morning, ongoing in in along a of Similarly, the of EBITDA of seeing growth Thank and quarter. first with the are DFIN activity. impact and resulted in I'm first within margin first so momentum more sales most first start higher second couple XXXX. efforts margin. we to activity in XXXX $XX.X hope the calls our noted everyone. print low and our normalized in safe had pruning quarter all significant to transactional well We end of a return an families The Dave, last off were the sales your of XX%, very of level net you work, strong tech-enabled in far with the continuing control increase accelerated cost software pleased of us momentum in just good year's staying Total quarter was more from markets. is

XX.X% new achieved compliance software growing sales Arc again, record, Suite watermark. primarily XX.X% quarter, ActiveDisclosure, grew $XX.X over have yet last quarterly respectively. year's totaled recurring third marking growth by sales a million, XX%, The a high and which the products, we solution Software the quarter led first was and solution consecutive

was room growth In our quarter strong once markets transactional an and robust by strength grew and was sales achieved driven of data than in virtual performance. sales market in capital its the activity growth the the what first for of product, nearly XX% all-time largely again transactional resulted Venue, doubling growth, surmise XXXX. last addition, share M&A and high quarter market year-over-year, This XX. in strong we an can from activity more our The highest share deal our increase quarterly sales

less from and decline XXX quarter quarter Despite of the this was print from print of margin first of distribution our XX.X%, which gross decline, XX.X%, basis improvement a slightly exiting than XXXX a As business in the low regulatory the and of result and declined investment was sales $XX margin by proactive expected. printing distribution contracts, an points for XXXX. company's change we million first or

Our the initiatives printing proactive tracking and consolidation of plan. are savings to the cost platform related planning ahead of

performance including times net full was in debt reflected EBITDA first our of flat resulting leverage $XXX.X in to end, we the from first quarter of increase steps are in XXX% first footprint, and the quarter XXXX. a essentially XXXX. than organizational in cash continue X.X year to the strong strategy our quarter flow of continues during to estate the in to by XXXX streamlining execution lower based XXXX, first real an million, The take results. our the optimize despite deliver and net quarter quarter contributed the payments, positive adjusted and non-GAAP quarter it times, of first took last Free than XXXX. XXXX addition, level increased structure on of to lower operations, our In quarter non-GAAP in was the incentive-based year's of At X.X performance our

offerings contributed in quarter software strong in attracting are interest new Our the and adoption.

delivered in consecutive in continued We EBITDA but seven margins only have not for quarters, now business of management, also the ongoing mix. the year-over-year positive impact expansion improvement demonstrating cost our

has sales EBITDA quarters, the seven decrease points. and the The XXX and trends basis non-GAAP million, increases sales in from services in an software reinforce increased sales, sales goal XX in cash increased results this $XX software million the in and sales, margin increase growth adjusted XX% our sales. EBITDA and have and services value million resulting these in in partially tech-enabled is by combination of such from importantly, $XX of offset tech-enabled our in in a year has print-related continued million solution by 'XX XXXX Moreover, $XX our more our $XX margin $XX Over software specifically solutions yielding targeting expansion sales the expanded by million of financial mix. and by profile million strategy, our by growth of $XX business our sales of is print solutions decreases our driven the strong Achieving by generation.

manufacturing our as our turn to platform provide and Dave like call as the few quarter. a update results detail well Dave? quarter efforts, the on outlook to first business optimization for to back I second financial would share I our more Before an highlights on

Dave Gardella

Thank you, Dan.

LSC XXXX quarter second like an financial bankruptcy I to discuss update provide of first our on to plans pension performance, the multi-employer the Before related Communications. I'd quarter obligation,

During with liability represented the subsequent two negotiated discounted lumpsum discounted multi-employer quarter pension included the time share estimated associated the payments end, to and the determined. LSC a one of the LSC lumpsum which contingent to funds, a liability and the allocation second million, payment the successfully we funds, plans and with between RRD total the quarter, payment our aggregate, In of of with the successfully payments over these negotiated XX% liability of fund. until the we our first settlement funds end $XX.X required At is DFIN of two bankruptcy. quarter, at final the the remaining first was

a sales both RRD final share will determined reminder, was funds adjustment will in earnings be and strong continuing transactional DFIN and market our in and in share the payments $XX.X has to per the negatively very the non-GAAP of or million margin needed quarter half performance year's been to posted EBITDA last the second business XX.X% of we results, our adjusted our extending improvement in further efforts and These from segment second to recorded year-over-year net liability and a software April quarter, for operating of $XXX.X from quarter quarter, later flow. we and first cash equally and payment excluded strong accordance share. associated in strength with an agreed XX.X% million, adjusted the efficiencies. first focus in margin first second XXXX with to our consolidated Relative adjusted non-GAAP We The the basis, quarter, of the made of XXXX XX.X% significant margin of business. from and demonstrating been repayments all in quarter arbitration. the second made delivered The increase corporate in the be SG&A results. and the in On than growth doubling the filing required more in our within of has XXXX. As allocation one payments were the fund in as sales, to settlement expense this impacting including made on while a established resulted growth maintain non-GAAP in solution our first non-GAAP increases trend an XX%, sales EBITDA

to or room regulatory-driven or primarily by printing million compared sales we XXXX, distribution sales a within to exited transactional primarily product due in by the $XX.X in as by capital revenue million Tech-enabled Difficulty]. certain $XX activity. investment the decreased Print improved XX.X%, less quarter Suite, low to have in markets driven M&A XX.X%, activity proactively as or printed increased reduction an Venue, materials for million and adoption commercial acceleration primarily $XX in to within solid Software XX.X% due due subscription of first solutions' first virtual environment, net of companies Arc increased growth ActiveDisclosure. well [Technical accelerated increased net demand the by quarter services where and data

was gross or by a services software overall X,XXX non-GAAP tech-enabled volume higher $XX of first ongoing first lower quarter higher of quarter enjoying XX.X% and initiatives. margin higher-margin the XXXX. Non-GAAP print and $X.X solution quarter points the combined primarily approximately XXXX, was First in growth expense quarter impact the mix than in the than million favorable basis with driven SG&A of cost million, sales business control

XX.X%, commission was higher by increase of SG&A is basis of expense, The cost from non-GAAP partially in first the percentage As impact mix, control initiatives. XX on sales, changes non-GAAP a the business of quarter due primarily increase approximately of compensation offset SG&A sales higher the incentive to in an ongoing XXXX. sales, points

from $XX.X XXXX. of EBITDA quarter Our was first non-GAAP million, adjusted increase or million quarter an the first $XX XXX.X% of

selling first adjusted of XXXX, control driven quarter first from sales incentive partially and leverage operating was quarter cost non-GAAP initiatives, Our by expenses. favorable EBITDA primarily by increase again of offset on and a X,XXX mix, margin sales growth, higher basis points compensation an the ongoing XX%,

operating of adjusted well as in that XX% of first increase XXXX, third activity subscriptions. began points impacted an sales was quarter over in and were markets partially driven quarter to million primarily share to by our IPOs investment X,XXX margin first software expense quarter increase quarter and the in capital non-GAAP non-GAAP primarily as the solutions segment the from of in virtual Venue as activity significantly ActiveDisclosure results, offset out solutions for XX.X% first ongoing result a XXXX. in cost in activity. segment the of segment since higher by software in focused of higher impact in strong ArcDigital, volumes, posting Turning first primarily an expense. share was increased the due sales quarter compensation first EBITDA XXXX, the Non-GAAP increased quarter of a continued to on margin capital an IPOs, largely compliance of leverage allocation a were segment for data the in over up of and improving of of due trend XX.X% XXXX, an The marketing new The selling EBITDA adjusted was quarter, room M&A of transactional costs expense in also XX.X%, demand gain opportunity sales, had markets of increased now an benefits of and XXXX, of company’s a net control first SPAC sales in incentive number efficiencies, of and priced momentum to second $XX.X from efforts increase the arising the overhead XXXX, launched first growth. increase the increase in increase X,XXX growth XX.X% the in from increase for investment capital was our sales, operating continues large the large of companies. as favorable quarter. adjusted accelerating of the and EBITDA regulatory sales by increased the was in result of the market environment XX.X%, from momentum quarter margin XX.X% segment by higher basis selling segment Non-GAAP million gaining on growth which of increased management higher Net with it growth, XXXX, sales also mix The partially adjusted of of $XX.X continuing on the to was quarter made while mix solid sales a as quarter our XXXX. of to XXXX, sales due primarily sales points due the we by This the increase activity offset margin to a our XXXX, driven quarter and the quarter which $XXX.X increased initiatives, in XXXX. volume, first from basis total first primarily due the operating well the Venue leverage affecting ActiveDisclosure were an changes quarter the as IPO million Net markets communications of EBITDA favorable M&A sales the

increase first from in The in XXX EBITDA in being consolidation our due partially print-related non-GAAP of to in in of activity Net overall reduction of of non-GAAP also contracts sales of as printing increase to affecting the a XX.X%, was quarter other increased now compliance adjusted the XX.X%, addition, impact resources. this growth Non-GAAP margin sales first within reduction the ArcPro, In of was the first of for of related print due from segment, favorable XXXX. expense. large of points the new and management XXXX. shared basis savings from XX.X% a by sales operating Non-GAAP in due and margin first funds clients companies, our the proactively XXXX overhead adjusted segments segment. and the this EBITDA of adjusted and the cost million basis due XXX an investment incentive the allocation we segment commercial higher regulatory costs, have segment EBITDA lower segment level to quarter primarily companies compensation lower sales from adding reduced margin leverage adjusted in increase mix, of platform results an fueled points result a and to communications in segment primarily was decrease primarily increase sales a in are exited. expense XXXX, need a the were the offset for the quarter absorbed by change increase investment activity such three $XX.X was in of for quarter margin to which operating a to The EBITDA as

offset to $X.X incentive-based increase XXXX. from strong performance the cost control in $XXX.X in in of only expenses the first last and quarter, an the partially costs payments flow last quarter of and million, increased the $XX quarter year performance, debt match XXX(k) was strong driven including Free of initiatives. of year quarter million was first the bonuses compensation, in level million The corporate to of increased full a annual total ended quarter XXXX drawn by $XXX.X with incentive on by the $XX.X based $X.X $XX.X impact ongoing million We our $XXX revolver. hand. as corporate unallocated despite cash debt, well of of on the million From first million, year. on to $XX.X of unfavorable million due an Our unallocated we non-GAAP including million perspective, non-GAAP million remaining access of negative quarter were increase primarily liquidity our revolver, net had cash as the the a

our times non-GAAP from leverage As X.X X quarter last of first down ratio March XX, was XXXX, the year. net times,

a As seasonal. reminder, is flow our historically cash

than in We are a second user generate of cash in the of first quarter, free quarter, the closer to more the year. in cash breakeven our the half of XXX% flow and second

mix XXX,XXX at we be evolve As shares significant. for this per to common million subscription-based to software $X.X the during share. $XX.XX quarter of solutions, to price approximately our less proportionately seasonality continues sales stock an of expect average We repurchased more

stock We repurchase $XX have million on million approximately our authorization. $XX.X remaining

April. SEC's SPAC of potential We activity the to regarding growth legal for As month of based robust quarter, the remained the it recent expect, in relates on classification accounting do statement on their markets to reset the warrants protection and capital transactional second throughout action activity projections. however,

further these SPAC transactions. that is as currently in revised formations to market to SPAC expectation financial our the we statements processes actions are De-SPAC and and supporting clients their amendments Our file their legitimize

$XXX million X.X% SEC to related to quarter, print and mid-point, we to in of in range distribution XXXA. the rules down million the approximately Regarding our year-over-year second million, the the XXe-X are for changes sales the expecting or be outlook and significant $XX net for to regulatory reduction due $XXX at

the our in perspective, efforts update Dan? business provide first to the highlights. We will we bullish From cover optimization to remain print the well manufacturing solution as largest it on and outlook Given the near-term as sales some now on a second capital the software last sales margin. in range who for expect our reduction activity. profitability an quarters. a non-GAAP print distribution, to margin I'll quarter quarter historical platform second other seasonality markets will EBITDA adjusted the include similar pass back mid-XX% on year's compared of and quarter this transactional Dan,

Dan Leib

to Q&A. it few Thanks, Dave. I'd will then like items we open for up and highlight a

year, will change sales the a $XXX million expect non-GAAP million demand to Regarding continue to the this reduction million, $XXX $XX reduction related to of approximately reduce EBITDA we regulatory in change. that million net in adjusted continue for and print-related print to of $X approximately a to regulatory

associated We deliver are platform. with ahead rightsizing to the of our cost savings plan our

to announced that recently to be our effective this shutting relates offset to also XXth better allows platform us production print it where we we are to have our and network, be down to needs variabilize affected platform plan, employees clients' costs fully and this will our June to production align for digital-only platform change vendor year. shifting our will that a requirements This Any we our As to our long-standing printing. shifting our relationships. with model offset offset print we

XXXA solution. addition, development beginning also, about demand companies the last the industry quarter, total the of for and in while as Rule and new quarter, to starting the ways. management by ArcDigital our solution introduced XXe-X will I'm Within print serve year in launching software companies, second investment Rule for pace demand in of clients the responded our SEC's our first the compliance reduced to investment In excited we

to Going forward, will changes. to leverage future rule address be we potential able these solutions

investment the is our posted solutions of first sales by client solutions the new software in adoption we evidenced companies growth As for our XX% quarter segment, positive. overwhelmingly

will evolution, assist own model a their from digital to service-based traditional more in clients we ahead, our to transitioning a them Looking step-model. continue

our several sales. in expands. followed Within we total of XXXX growth as compliance growth markets, by outsized XX% from capital of mid-teen expect solution ActiveDisclosure adoption posted growth years management the the We in solution,

ongoing serving clients' needs increasing and related the we clients. saw our net demand ActiveDisclosure for addition, by pre-IPO wins In also compliance IPO to

platform, will and to and new our adopting clients new existing on second effort, the quarter. from see and we our clients, to migrating this platform. in which positive new Regarding pace feedback getting are start sales launched the are ActiveDisclosure efforts Two March new sales reflected both into in in at our feedback we the months our sales we platform and is

data in last all quarter ActiveDisclosure platform an We end expect the from achieving markets, XX% Also grew year's to Venue our solution our our all-time high our virtual quarter, growth by new quarterly was by clients last and focus the capital to in approximately sales from of first X.X activity quarter of increase XXXX. M&A transition in in to driven first sales growth for the its and deal sales marketing and an growth. XX. strong highest environment IPO This accelerate by in combined the with quarter room largely

achieving from buoyed region Sales at sits now grew market. the we're quarter grew sales the Venue strong APAC growth XX%, XX% in the Importantly, the US historical while pipeline EMEA an a by in XXXX. Venue performance The across excellent of region XX%, first for grew globe. high,

very along them. about first and are the that our produce excited operational wins results We sales with strong various quarter

our service world, working and on to without committed In to XX the want way Stay closing, operations as the safe DFIN continue strategy. our highest well who achieving in employees maintain have our are to disruption. clients been around We and part thank the ensure receive quality our the XX of tirelessly to healthy. objectives we to I

we're operator, ready that, questions. with for Now,

Operator

CJS. Charlie [Operator comes with Strauzer from Instructions] line of Your the first question

Charlie Strauzer

morning. Good Hi.

Dan Leib

morning, Charlie. Good

Dave Gardella

morning, Good Charlie.

Charlie Strauzer

for QX's reduction of your revenue was year? to wondering on that How QX? $XXX kind of the your first the rule sense this half with in million million into based changes of we are is where if $XXX I get of SEC guidance can we and actual much Hey. baked a

Dave Gardella

Yeah.

on first historical $XX was based we in seasonality of the Charlie, the we hit. So said, million print down of when print most see quarter just the

year. quarter in The impact be the second it QX of during full saw will kind quarter have disproportionately impact larger will the of what than we largest any and

Charlie Strauzer

in work, And QX. the IPOs helpful. came you. transactional Got of have out shifting SPACs it. obviously, Thank big that percentage That's a bit a little then been to the

saw we growth. think record probably a I

last all De-SPACing of are And think QX see was I at to percent your of related pickup at this you revenue transactional the any time? in higher in year. work was What than all also, starting quarter then, SPACs? to

Dave Gardella

Sure, Charlie.

the M&A so historically as see very, When hadn't over tied strong then, respect on share there there. De-SPAC we last the I'll look was and relative we you transactions, area So and activity, a M&A the very, been commented from year, can but Venue more on very just XX%, substantially others that from and well Dan more perspective, being to we're it on related in. of at overall said, starting we in or of of to did and up until De-SPAC well focused start Craig perspective, growth some SPAC we performance recently the traditional an our some M&A it's With jump very did market, obviously, that, to but obviously, to we some an space. then that the at and

Craig Clay

that, this Dave build on To And is Charlie, mentioned reset. the Craig.

April, We equivalent a the combination that did There were certainly off manic, honestly that, but see QX. side and XXX a in less are for business searching are drop SPACs in numbers. were January, We February brisk, was expect it will announced XX there it other to of on that now. right but be the

believe we, attention actually Dave from legitimize long-term will will product. the mentioned, a move see as a as forward we this SEC So and perspective, strong

Charlie Strauzer

with you kind that, of on the companies also part working of compliance transaction for Great. up do De-SPACing recurring work they then and for sign up long-term that they the signing kind as And of are -- well? then, are

Craig Clay

Yes.

is diligence. with seeing De-SPAC them eBrevia, sign acquisition ActiveDisclosure. for certainly, we're time, new our seeing So by initial And M&A process of at and shell helping their ActiveDisclosure, compliance using SPAC, we're the supported ActiveDisclosure. the report then, during also up solution, Venue We're them also certainly they continue they which use to seeing, when seeing the set up the do we're

opportunity us. for real So, a it's

Charlie Strauzer

you Thank Great. much. very

Dave Gardella

Thanks, Charles.

Craig Clay

Charles. Thanks,

Operator

Heckmann line comes next with Your the Instructions] [Operator from Peter Davidson. of question

Peter Heckmann

Hey, gentlemen.

Craig Clay

Pete. Hi,

Peter Heckmann

If share filings that to Spectacular I investments that strong. the your share good the helping the doing markets you your continues there think capital some the to plans, of real and results, to on gain in keep technology and think here, on lot technology opportunity think also upgrading you the -- so, the is areas but you're to see current investment based what opportunity do a be both of do that share? of rollout do you you business certainly have are best gain share? think you

Craig Clay

Pete. Sure. Thanks,

So we step we back position each when in we in two, three the markets, in and we look at or of our our markets one, play. number relative are which

point, to only provider our so, And in very a across offers position opportunity us great to markets. the your the we house. a It from strong sell start as full-service

And And opportunity. new ActiveDisclosure, ActiveDisclosure parts. on a of our out share that a a a surmise We new product side, and and you take have our good the we software at of look transactions change XX% individually, very a new Venue, interest we When the been high mentioned as growth, that share adoption. the great that seen we bit see good very mentioned, brand on in build taker. comments and so, each have at was has these as we share can very rolled and product, adapted, We in compliance did market you SPACs. increasing

which obviously, XXe-X down mid-XX%s When to we software the the come print growth job jump changing a opportunity what that to in our the have we to and Those compliance a develop side, areas. through a over we very the developing think taking and companies offering, with year. outsized that XXXA, transactions market on opportunity we So, seen was great markets investment really place in did continue the the are those the regulation there of solutions of for capital fantastic on and team was a continues areas. see but supported – by good saw side,s solution all with growth with well-received saw markets

of very core offerings. So we all in feel our good

Peter Heckmann

years. allocation, just the a then capital couple of in over done you've And of great. job I That's the of deleveraging terms last fabulous here mean,

starting repurchases? expectations to allocation? And to share so guess so deploy debt come on seller you thinking down you're some free opportunity just Are reduction or cash that now some one capital are about toward might market you down going -- be you now for M&A I are that's see how and times. to to the continue flow opportunistic

Dave Gardella

Absolutely. Yeah. Sure.

shareholder So into fair perspective be and or the of we strong on really we performance, on went last amount drive and which detail on I continue thoughtful flow our remains our disciplined generate we a When into really went the various ways business profitably. look into to capital and it unchanged, cash the capital, accelerating the how to and ex-seller call and grow multiples organic have deploy comment, been to – the expectations at investments remain five deploying of we initiatives your growth that's high. extremely is

we've organic investment, expect would be I more overriding down disciplined. a said, same share more the we've I been as bit debt, and very into but done paying of little we So buyback continuing to put of

Peter Heckmann

I helpful. I'll get it. That's queue. Got appreciate the back in it.

Dave Gardella

you. Thank

Operator

Your the Raj line of B. next with Sharma Riley. question comes from

Raj Sharma

morning, guys. Hi. results. Congratulations. Spectacular Good

Dave Gardella

Thanks, Raj.

Raj Sharma

absolutely. Sure, Hi.

upon seasonally touch were comp the and be isolate could a flows Could you of LSC the and the in if talked incentive you extraneous some negative second supposed LSC flows? on in just quarter. the the about to settlement bankruptcy there because you first are there for cash So cash cash and items flows also impact

Dave Gardella

Raj. Yeah,

LSC quarter. the plan were in small multi-employer the first pretty So pension payments

that also talked roughly them in was from much in flow dollars in the basis first as plans flat, rate year, was actually first one cash, year-over-year the quarter annual about, and two second have delta rate And really higher $X at The last the comp wouldn't quarter. will a Frankly, at the number, increased higher break I typically made were quarter, incentive driven think big of of past. settlement, be while cash that settlements in I couple impact made so. then, that but million second the a a happened the around but payment and or million free the on paid on we given XXX(k). second down the payment than think year-over-year biggest on quarter. discrete performance a including the the by payments those the they in We a payments, out than bonus -- we

Raj Sharma

would -- just, the decline print the And expecting I QX that you QX would right. much allowed be $XXX million million, entire down are then All primarily know be? had and the more for, heard amount $XX QX. Okay. in off say was two questions, you taken how I off in

would of first the most $XXX print? million decline in the you taken in have half So

Dave Gardella

No.

I be And I the let that of second that, the decline year. to the said any of Sorry. say was of clarify. quarters What if largest me will quarter four the intended

substantially in So it and be what will to saw roughly what should larger in likely Qs QX. then saw be three we similar QX, four, ballpark we and than

Raj Sharma

software lastly, then And rest it. solutions do Got similar sort of the of just you robust the in expect solutions? software year, growth the for

Dave Gardella

Yeah.

basis, grew So, talked we about really the have side, board. product-by-product expecting XX% as a When that's momentum look across it we at on in on in the software the you ActiveDisclosure, growth the double-digit and quarter.

then, will a lot very think This to there. the we the we Suite, in about activity been of the be year. in And pipeline into And is the last to and had XX% kind as tied on plan that Venue, and from quarter. aggressive our quarter couple be very Venue quarters. We we perspective coming Arc strong a when was a ticking the M&A said highest expect mid-teen was that growth of again, range. that up has the of

combination do The was first compliance these and the growth will the plus of bit continue quarter within But ahead that we total ArcDigital Suite and year. a the strong expect offerings management plan. especially driving Arc little at of that throughout XX%

Craig Clay

thing only to the is back would started that, add picking reflect you it the to year, And on M&A up. I Venue's last commensurate with up Yeah. if growth in half pick

expect mid-teens. And within would comparables or be not of that, the that so in withstanding but terms each you'll quarter, to year-over-year run growth quarter-over-quarter we in in

Raj Sharma

the just with capital Right. in or line And markets activity then a lastly, assumes for QX QX transactional lower? guidance

Dave Gardella

No.

that XX% from up guidance transactional saw we second our remarks will right. In said activity nearly activity doubled around $XX our in Raj increase that we of So, there QX, amount QX, first not guidance we in the the QX quarter somewhere almost prepared our implies roughly or think, XXXX. -- transactional. in million the transactional be quarter,

extent that market or plus that perspective, a that minus weaker the stronger there than is to or in some expectation, So, it's from guidance.

Raj Sharma

I'm sorry, increase? sequential $XX million

Dave Gardella

$XX sorry, No, million Yeah. year-over-year.

Raj Sharma

Got it.

Okay. Well, again. Congratulations for questions. my thank so you much more taking

Dave Gardella

Raj. you, Thank

Raj Sharma

Yes. Thanks.

Operator

next Your from the of quarter comes Strauzer CJS. with Charlie line

Charlie Strauzer

Hi.

follow-up. quick one Just

capital markets balance the you're there taking looking own on of of business? on remaining and your seeing potential refinancing sheet, the Just the at any sheet that debt robust on the balance thoughts advantage kind

Dave Gardella

Yes, Charlie.

To we look your at this become all at that time. So we [ph] XXX point, in October. the notes had X.XX% callable

that in to opportunity that will at debt an that we of lower depend conditions continues, strength a markets market believe that refi on the right, and a hopefully, just significantly it time. are the but Given what lot at be there'll and that rate, that will

Charlie Strauzer

very Excellent. much. Thank you

Dave Gardella

Thank you.

Charlie Strauzer

Thanks.

Operator

time. at this questions there no are And further

Dan Leib

we'll and August. in look joining Okay. Thank all Thank early forward for to speaking you you. again

Operator

This today’s conference. concludes

disconnect. now may You

Dave Gardella	Chief Financial Officer
Dan Leib	President & Chief Executive Officer
Craig Clay	President of Global Capital Markets
Charlie Strauzer	CJS
Peter Heckmann	Davidson
Raj Sharma	B. Riley

Donnelley Financial Solutions (DFIN) 5 May 212021 Q1 Earnings call transcript