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DFIN Donnelley Financial Solutions

Participants
Sanja Burklow Investor Relations
Dan Leib President, Chief Executive Officer and Director
Dave Gardella Executive Vice President and Chief Financial Officer
Tom Juhase Chief Operating Officer
Charles Strauzer CJS securities
Peter Heckmann D.A. Davidson
Michael Cho JP Morgan
David Ridley-Lane Bank of America Merrill Lynch
Bill Mastoris Baird & Company
Call transcript
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Operator

Welcome to the Donnelley Financial Solutions Second Quarter 2018 Results Conference Call. My name is Alan, and I will be your operator for today’s call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the call over to Sanja Burklow. Ms. begin. may you Burklow,

Sanja Burklow

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

refer we’ll call, that this forward-looking statements are subject During to to uncertainty.

appropriate evaluate and and report please statement SEC. will performance. Dan included non-GAAP filings morning call footnotes related GAAP earnings reconciliation that useful ongoing release and now provided concerning Kami you with over Please to For on company’s Turner. I’m the cautionary in annual supplementary presentation only. purposes I you non-GAAP our will XX-K to for the a a the company’s are, this Gardella, informational further refer complete and Further, GAAP to in to They operations discuss the the an other by information. discussion, release turn way with non-GAAP refer of Form details information. of We Leib, information provides our Juhase we information Dan. Dave and results for to financial Tom believe press is however, for and the joined

Dan Leib

at Overall, Sanja, the and highlight second everyone. you, Investor were Thank and with in with good shift Day our expectations to discussed we our in we pleased are our morning, May. quarter mix line results, which business

the We growing year-over-year. continue SaaS by in our offerings with to strong quarter revenue in growth see double-digit revenue XX.X%

quarter. of the print Offsetting reduction than Arc a ActiveDisclosure, in trend. revenue offerings content the higher driven this revenue growth basis. longer-term the FundSuite on Venue print The revenue, X.X% our growth growth which quarter these double-digit in by second primarily in declined of was achieved The management was which impact platform, each global and was

year. of the X% reduction trend We of longer-term approximately half expect to print back down the return in the to

support to to expertise, to evolve by on drawing continue and our our when, service digital in work our how want We world. expect where revenue to mix clients exceptional domain knowledge a process and they

and impact We focus will believe remarks. meet good regulatory move allowing employees. on order the business, priorities, offerings. Language This global regarding an Solutions executing of closely in to with around detail We former to XX. us well of and brand and more the to wish to transaction very more our Dave SDL quite marketplace. like Solutions better that the digital clients future. provide transaction SDL closed and important an that directly which the represents our competitively plan sale our Through attractive and in our must Donnelley needs a SDL business our the on Before Language and year July step to I opportunity was core concluded. know how I’d aligning to in assets to discuss management strategy, our X-year the the team In operating ago, position on in transaction the we the focus align our luck process to support came of on prepared the his transform our vision compliance evolving the them pleased the began are we for globe, brand the

we’ll course, Donnelley to We’ll, invest risk position our solutions of that to and organically take market, further Financial our the compliance As globally. move we forward, and provider clients as continue and a leading actions prudent explore in decisions. be for M&A we continue

our Now I’d like to shift priorities. operating to

to capital our and requirements, our and regulatory opportunity adjacent markets within business, growth In driving a data our accelerating markets, financial we increase. of strengths QX, environment. needs. most to make XXXX in will reporting and investing In our continue continue evolving solutions best-in-class lies of and continue pace Within ground disclosure healthier in the Markets, to for expect complex, we the We in against people. clients' in the core losses on innovation strong compliance Capital management and again wins leveraging by progress ActiveDisclosure, competition gain along wins our with outpace

Our clients innovative regulations for look to understanding a well deep rules and expertise SEC as as us and of solutions.

innovation ActiveDisclosure. As introducing we’re product including the across our company, capabilities, we into machine learning accelerate

SEC data gives our clients digital technology efficiency by requirements evolving the and in XBRL Using in to in level clients Our navigating the structured reporting. the a of June. meeting ActiveDisclosure requirements improved in-line gives new and announced SEC transparency operational of support ease

We have made format. and to iXBRL not creation content on focus easy filing clients and intuitive, allowing our the

recently solution expertise with we’ve U.S. comprehensive addition, Data our is the or awarded clients rule integrated already easy in filings and U.S. compliance in building and from we for Quality leader we reporting Office the reasons is for are ActiveDisclosure clients today. they’re proxy like In issue were of guide statements, clients shareholder-friendly the will for X,XXX offers XBRL recognized emerging a ESG within XBRL proxy it preparing season. making This for support trends companies environmental, the the we been a that social, Online, to set. XXXX tools focus proxy September, to Microsoft one opportunity leveraging the We that each drawn roadmap as Committee certification annual navigate only using year. growth a with Xth our assist of innovative as client-centered governance see public In the

modernization business product. of provide we cases we transactional the the Venue in used helping resulting our Contract artificial progress expanded continue reviews also streamline On of utility With partner, legal and extensive Data users Room review intelligence, Analytics of per Annual clients eBrevia, partnership, the for Venue. in to finally, our time, see Investment M&A our M&A investment Network’s third processes. Venue N-CEN Global clients. And Venue more have and named with Venue we mutual transaction. due-diligence Atlas the uploaded side, with I’m the June. main proud of Via to to to Data constraints. implications easier, access Market year implementation in fund our within In the reporting that and industry-leading share SEC budget related Within year the at for documents more time documents of focuses the N-PORT a turn, Awards allows in to this to half global our means row and Room markets, was

made N-CEN our available June, solution arc product As of of ahead filing was our production. live within N-PORT,

ingestion and research-based meeting filing compliance leading requirements. of The as regulatory us indexes data, for tool provider costs addition, integration with In allows data arc increase substantially product and onto shifting a driving improves analytics their leading to us and a efficiency, legislation, trends platform clients are our filing created of tool and the in MSCI, documents position our a We’ve increases move easier, ingestion. clients This and client ICE reduces our providers and that into experience. significant faster market with resources. analytics, and from handling to fewer data data

in that building to on This EU targeting looking and global we U.S., a us on expand are requirements a warehouse single global so our forward, requirements. holistic clients' we data allow to will regulatory software, industry-leading single a build the can satisfy APAC address our filing Going regulatory filing to platform solution with global the platform, solution.

SEC’s method adopted shareholder January June creates provides The XXe-X, for an the electronic XXXX. extended which fund rule access rule notice to Finally, and delivery X, of be that on begin stating reports. SEC period, an optional recommendation rely on the the X, the earliest could transition would

an and just provides evolution which better one the rule the fund shift term, data-centric a in access long the investor to has financial improved just opportunity model, industry, not them engagement particular, step transparency believe and we is much-needed in more data. Over to an from investors, The services, documents giving moving analytics-driven overall of experience. for to but

digital with solutions, build to enhance ready continue the we capabilities and to support new our and We’re will clients future. existing in our

welcomed Lastly, on will Donnelley I to as have Floyd two innovation to delivering has evolve people the companies ranging a place, product our culture Dave? please is our to Financial of and agility. most SAP XX of it SAP, the executive we responsibility he officers Kirk evolve to In driving And CTO we to the in model, Express. more Walmart team. expertise as I’m from transformational to with our our share business Kirk office right leading we’ve speed initiatives. new the and Platform. and on in Resources. of execution, recently with in Chief brought leadership demonstrated as from June, recently and client-facing we has Floyd where technology, we Both it for global to to us platform to for over Engagement experience continue the instrumental products. Cloud With than Head on of strategy critical most Product of go-to-market global in years Strimling will recently, joined was Officer. Customer Strategy comes be business. that, essential and Floyd American lead Kirk Floyd Human brought our success Dave. He Williams we turn was

Dave Gardella

and Dan you Thank good morning everyone.

offerings volume the After of volume print- our sales foreign lower and targeting, the were as in grew sales transactional U.S. lower Dan That was Markets, strong earlier, the the our compliance expectations. revenue Consistent growth we organic changes the second quarter based in offerings XXXX. quarter revenue decreased our mentioned by was $XXX.X U.S. were Capital by X.X% in decline X.X% in second services quarter million, offset increase than that growth International are XX.X% exchange Dan lower in Markets. million driven from X.X%, transactional offset revenue. rates, mix consolidated $XX.X Investment million volume Markets with that or our more volume basis, second in a earlier. an SaaS and shift in a or $X.X for mutual funds As for SaaS $XX.X of by million in On net results noted adjusting Capital with by segment growth consistent

the change approximately including of negatively a points XX impacted negative Second gross that margin second was basis points. XXXX, in recognition revenue the than impact $X.X margin XXX million quarter standard or quarter basis by gross XX% higher of

the improvement products margin Non-GAAP by points second was $XX.X offset SG&A as services quarter revenue in than well Excluding our function. and expense higher- favorable recognition $X.X between the technology lower-margin of in was increased quarter of initiatives, in a million, million negative standard, mix XXXX. driven reduction quarter margin the partially second as higher change XXX revenue cost of impact gross investments by basis

expenses quarter well a higher-margin as As revenue, The was second basis priorities. an investments driven XXX higher increase points non-GAAP the of by with as XXXX. strategic was commission higher revenue than of of our in in primarily SG&A improved SG&A associated of percentage or XX.X% mix support

than $X.X of margin increase Our non-GAAP second an adjusted GAAP adoption EBITDA Non- XX was XXXX. million. impact the negative which a points basis from quarter second to of a adjusted negatively quarter quarter the approximately in EBITDA XX EBITDA new of second million approximately the higher basis revenue million, quarter of year, $XX.X of of last was related XX.X% impacted recognition points the standard, $X.X including by

Excluding our favorable products mix between standard, from basis strategic quarter the margin in offset impact investments earlier actions, cost-reduction XX in the noted driven higher points support revenue was services of by and of second I recognition the change improvement that primarily and negative priorities. our partially EBITDA by

revenue was by of and On improved in to up XX.X%, our quarter. quarter, market of an organic activity Markets increase market primarily recognition transactional an adjusting growth revenue million the for results. combination strong of basis, Revenue reported impact revenue our X.X% due driven after the now Capital second was to a gains. of volume in segment U.S. organic from year’s X.X%. share last new segment standard, $XXX.X second the Turning

compliance. see offerings. SaaS revenue care revenue We Investment an Venue which our lower Markets is in in ActiveDisclosure, double-digit basis organic and our growth Markets declined lower traditional funds also offset continue by health Revenue offerings, in driven and by Capital XX.X% print-based on to mutual in

rates was of quarter the lower partially points the the revenue the an second negative repeat volume and for XXXX basis, print-based was last Non-GAAP of services recognition margin from to impact increased mix revenue foreign compliance. quarter, due XXXX, our cost-control modest due higher of to increased partially the by X.X%, point initiatives, and margin segment in basis exchange in organic SaaS content services. offset only reductions from in prints, revenue a of new continued offerings lower to Solutions basis On impact savings did on by between changes leverage projects declined and couple XXX year. priorities standard. not standard, were of in was XXX the addition quarter from of second year. our of the decline segment which in primarily our EBITDA The this X.X% our an the declines and management second quarter In partially there growth in a XX.X% the of higher in for recognition revenue investments that favorable excluding products million Europe, and support revenue by reduced the offset growth of in decrease in to Revenue in points XX.X% favorable offset quarter quarter second unfavorable due primarily Non-GAAP in secular our from of transactional the adjusted negative the volume XXXX, of adjusted of primarily second Language operating sales. strategic segment International mix impact and and EBITDA in and $XX.X the the second

second quarter second excluding XXXX the use million. lower revolver. higher were second of of on offset from to $X.X unallocated with cash the and a including $XX We million the of primarily corporate quarter due quarter, million working was underperformance Consolidated drawn net liquidity our $XXX.X partially $XXX.X lower million, capital to $X.X available quarter of quarter million debt, expenses. in had payments, favorable Relative we the a second expenses, ended to XXXX. non-GAAP was XXXX. quarter of cash $X.X year’s total last use And amortization, of flow spin-off-related tax the by and $X.X of decrease depreciation Our million million, free

half year sale was Subsequent in ratio As were X.XX our leverage half positive of and X.X used for Net range expect we transaction-related reduce the by normal seasonality XXXX leverage times, negative year-end was June by times and completed million we turns first driven a and our to from year-end expected X.Xtimes the year. from our to gross of proceeds XX, our up ago. year the gross debt times our below the business XXXX, of increase loan, the the Language in of of flow, of the X.Xtimes of which end Solutions targeted $XX to down of sale The this year. quarter, under term be approximately taxes second of cash the after that is and from $XX.X end million. payments to from outstanding X.XX

full Language As disposition Current morning’s year the the full for release, Language previous press result guidance reflect includes included the in solutions through of while this provided guidance XXXX updated highlighted impact we to year. of July XX, of the Solutions XXXX, business. Language Solutions guidance the

exclusively the assumed Language in of line As Solutions continue the impact guidance. as our guidance business be of the to changes operations also release, our expect reflect to previous to the sale remaining press was what we noted with in in

to revenue $XXX X.XX expect in to We of range be $XXX million. the million

of million. Depreciation amortization million range be the our million. in to $XXX non-GAAP approximately expected to and be is to $XX EBITDA We expect adjusted $XXX

expense million. $XX approximately interest of expect We

tax the expected weighted Our project XX rate in range is share to XX% to count non-GAAP fully the We full full million XX%. approximately be average be to diluted of shares. year year

to expect in capital $XX range $XX continue the million We million. of expenditures to

Our that implies while is million guidance to from trend. last acceleration our up fully-year $X.X an year-to-date and year, CapEx

as million entire to earlier, guidance. $XX payments and Solutions, excluding approximately million lower operating onetime related onetime be The spending expect of these previous And to I reflecting and the addition proceeds the available. million guidance, on the of Language comprised of cash previously, impact we returns the to proceeds transaction-related difference onetime of million, we gross impact if from free gain results are is range between the flow. payments, previous not both of appropriate of payments, the The impact million the stated $XX $XX continue Language of cash disciplined Solutions. to noted sale free $XX.X tax we solely the than in will which As drives in the have sale around affect of of net flow not change negatively of $XX lastly, year-to-go

With Our timing transactional guidance the in a we’ve half of first to Investment Markets, somewhat turn a Dan. in second few Capital improving, to while we’re of improvement to We assumes the the Within trend year-over-year large Markets on deals year year. Markets' the year to year. where to back pipeline Capital revenue And the it an have seen of in what basis, visibility the were more flattish we half comparisons in modest assuming compliance the the expect half new relative impact. difficult. of no compared the the year On second challenging. increase a impact had that, revenue full last standard remains I’ll is last

Dan Leib

our closing, grow are opportunities excited business. In our are Dave. in strategy you, to well Thank implementing way we on our and by core the

on Our toward strategy. execute our purposeful leading disciplined clients to while Q&A. We’ll for digital up opportunities how transformation our investing a overall managing And in them focus growth our the with open let’s to while in that, improve sheet remaining continue line is also on we balance through and the portfolio. be

Operator

you. Thank

Instructions] begin Our now with session question-and-answer Charles is CJS will first securities. from Strauzer question We the [Operator

Charles Strauzer

good Hi, morning.

Dan Leib

Charles. morning, Good

Charles Strauzer

still how just decline cycling quick Investment magnitude a about Thanks. frame bit us think help have two next and that. year-on-year. then And that the in I discussion additional quarters? should the Markets' from color get a little a little trend? should how there. quarter and tough the comps the we know Can revenue about And more we some you’re Maybe

Dave Gardella

start. Yes, Charlie, I’ll

And then that that was repeat. and additional So and along with there decline, as postage XXXX I timing. work some a goes mentioned, in printing some then was we freight didn’t the that some had

on is think, of year, think, a back roughly the the print And I flattish, the that expect side, that you I over seen half normalized offset kind which Investment secular more space. declining Dan if by time, look some decline of at we’ve of we doing is we’re Markets generally of for would what mentioned, management trends in of the content X%. that the print, which the combination So gets

Dan Leib

know into – is to improving performance, add, few quite quarter, year see Yes. add of year-to-date do the I’ll the we content management the actually thing Tom I was which in and or good Charlie, well. I’ll half as accelerating things, a then only second the and the back wanted

Tom Juhase

it’s Charlies, will, were only with say I’d visibility anything is like the Tom. of they thing about you different they what they’re to we like when new The visibility can so see half some the for get side, to expect for some, Yes, launching if so things and of that conversation what we funds year that. economic reasons quite and that – around funds first in that prepare

year the they So a of half the hearing back of we’re some But we’re better to want year. what we’re anticipating because – the back half do we’re and in hearing. of things

that as comments I Dave’s think, ways well. into So

Charles Strauzer

then for on a more as into helpful, half And breaks year the guidance little of the about QX, QX think topline kind can it and for bit That’s EBITDA. the we kind you segue of thank of up you. maybe talk, second and should how

thoughts us what sense give us Thanks. your maybe are Just there. give of a

Dave Gardella

Charlie. Yes,

and So to is, about looking equal as be probably year, half size, assumption QX at best think, the we of QX, right. of look I at the back the

in guidance, revenue, would year-to-go So million to about be kind both per of $XX high we quarters And the to quarter. maybe if at expect EBITDA close sized. look on puts million, you similarly, I equally think $XX our

Charles Strauzer

you very helpful. very much. Thank that’s Great,

Operator

Peter question next from Our Davidson. is with D.A. Heckmann

Peter Heckmann

areas the you certainly you the talk I funds? you as areas up to at where do to markets the some back we’re are And gains. be in of we’re attribute that share release at. compliance, the – And gentlemen. data in about seeing thing share that’s about us, Good might on IPO can talk your gaining looking morning, to? prevalent it about same you some well what the best press the rate? follow What that wanted most moves comments Can in

Dave Gardella

Yes.

that from on within think the Markets gain perspective, most of significant the share seen I a that we’ve So have been Capital transactional gains side.

You lines data what looking IPO, at. with we’re the you have that up that – referenced

to nice I I think S-X there was increases comment. similar around the saw the – then as that we some mergers think very And well. situation Dan going

Dan Leib

is, getting are it only development we compliance add well Yes. we’ve as we efforts aggressively the wins I’d product is as investments ActiveDisclosure good grow to making to our good the mentioned and comments, other behind where we accelerate offering market The prepared additional in product, like about attribution the that to in and Obviously, we’d the and are. thing continue that into feel that there our behind been on side. seeing, but to more of feel

Dave Gardella

the the And IPOs. thing of only is quality the I’d say

is think the Peter. created I talked the deals are deals no and market calls, then, the we’ve past to about are up as M&A. equal. down, And two We So in up trending like market the being now of are quality say

product the numbers private thing that. The in our at that the in lot as stats do and necessarily the the we And also So percentages, of it’s important, of transactions is is a deal type valuation well. then that Venue other is. it but not add product I’d you look for

public markets. both the as So markets on gains, the we’re seeing well private as

Peter Heckmann

strength items build that additional that to the new some we some interpret you And and some quarter? that reflects clear in offsets, helpful. your guidance as in that EPS margins some like up come are rolling quarter, that your they your new we then of conservatism? the we’re Should made there – upside maybe only they’ll divesture, the not a up, second look saw the in Or that’s it in guidance – that updated second through. Okay, in offset you’re follow- the though trying

Dave Gardella

Pete. Yes,

half, but referenced. the the QX you quarterly didn’t numbers guidance back in that give on we So obviously recognize

last that bit becomes visibility trend’s large compliance year little mentioned the We we I remains on so building, jobs on the some were think Capital work, did as better. Markets we timing have within of little compliance Markets, pipeline overlapping challenged. said at that look comp the is year, the there bit the transactional Investment still tougher a half Markets. the And in then we Capital a getting back

Peter Heckmann

in Okay. Thanks. back queue. the I get will

Operator

is Morgan. question next Michael Cho from The JP with

Michael Cho

wanted just to one on I time guidance. touch XXXX more the

so for growth, should X% adjusting to still for Is be you’re organic Language, confirm, to well, X% that XXXX. what want Just guiding?

Dave Gardella

so faster little range think this Language organic is a And little than I growing comes overall average Solutions a Yes, bit our was our time. wider bit. the down of guidance. our previous

Michael Cho

Are all okay. that you well? it, Got updating at today as

Dave Gardella

think at X.X%. our Yes, about look the it’s you full – year our of I – the if midpoint guidance,

So in of than the said, little lower range but, previous midpoint you a guidance like bit the

Michael Cho

onetime helpful. quick And the that’s then Okay, follow-up on just revenues.

was So revenue quarter? Investment what actual second in the XXXX Markets in onetime

Dave Gardella

I the work, think cetera. pieces then on $X million, combined. rest of freight secular postage different and timing of the some – onetime was some of decline, And et normal So it revenue the between in then some about was the

Michael Cho

magnitude one revenues then said the – you more half us, you were that? help guess, Markets. for Okay. project-related Can the just frame second there And in some on of that I Capital

Dave Gardella

Yes.

So with have don’t Mike. numbers the I me,

work. want So tends like proxy was range. they million And just Markets Capital the they of the of to of really million tend were that side on work $XX compliance $X they transactional, it were – more – to that to act that kind I just the say nature given to in

Michael Cho

you. Thank great. Okay,

Operator

from Bank Merrill with Ridley-Lane of Lynch. Our is next America question David

David Ridley-Lane

Sure.

of the decline business Markets And been a just your broader side. makes it that quarters It’s client of base reflect on four your is your declines. a Investment of I couple guess if base. pressure? among sense? curious, trend clients, more within volume So true Is client a questions under I’m And

Dan Leib

it me so kick for off, question. Yes. and thanks Sure, let the

think we that – see we’ve the is – print-related. and percentage a I business this of you before, mentioned larger

shift, And well, overall declines. – we’ve this so also you as so had see we’ve had

shift You management software that business pronounced we growth in overall content because product. had see mix and also in have a more the

it you within special in, We, to to it mentioned pronounced Dave relates addition that of And tough the those quarter. a lumpiness those more the of some I’ll business. this proxies to out. see are proxies. impacting in as to you kick what a That proxies of call to but quarter shift referenced from special timing frankly, some And you on Tom will do specific quarter And that nature really largely then timing that to see expect so mix back some relates the funds to earlier, continue Tom, perspective. see of pressures

Tom Juhase

would secular Without of the I is Yes, add. in decline print the question, numbers.

Second, kind with we are minus. definitely – it’s a of a and plus working

We’re where working side and reduce the look funds they clients to on in our particularly, cost, – with print want they that. do to to

they still content. have manage However, their to

our content seeing something reporting in the So arc increases like percentages using in management, we’re management of tools. content quarter-after-quarter

while same So it’s the revenue. print the it’s not dollar-for-dollar print revenue, profitable revenue that’s replacing

two That all reporting. first makes business had comment last deals using around alternative special we the half with mega year. example, is new markets proxy comps new incremental And investments, tough. the then chunkiness Dan’s for the seeing in proxies, there. we’re around arc in around that’s coming the So lastly, of which

where have decline a you’re that costs increasing rate. reduce the print you the So two selling the and but there, cities of at referencing that the different at number same time, content customers we’re of a are it’s of to management kind tale products them wanting other

David Ridley-Lane

to Investment Market your Markets guidance the U.S. be Investment Embedded – in for growing your view half? in to XXXX second is revenue

Dave Gardella

No.

closer I flattish. think it’ll be to

mix Closer tougher maybe the talked flat, by lot, in obviously, the of If we at decline about. again, half the year-to-date, same you that been driven shift slightly the back comps. the a exhibiting organic declined there’s year, some to of look right. And

the be and print will side So be the software the side will growing headwind.

David Ridley-Lane

Thank you very much.

Dave Gardella

you. Thank

Operator

comes And Company. Bill our & from Baird final question Mastoris for today with

Bill Mastoris

greatly going other you’ve more color you slipping remarks, for appreciated. market. print geared give And products for that the comments the in up in be exploring you revenue? that had, exploring make on to in. me M&A be Any this your maybe decline referenced some that given the in is service-related could Thank of options would towards Dan, prepared digital to

Dan Leib

sure. Thanks Yes, the for Bill. question,

closer in certainly company that understand perspective. from at those things we clearly, to help away, is the and what the a of point from strategy doing a M&A digital. our around spectrum our differential that clients print they as the – what as disciplined transition levels of we’re things look today, price elevated obviously, at. from we journey bit what price price along But further we market is of points, digital across focus the But point is So to are so trade assets towards overall the can terms

been quite frankly, – transact in seen why seen you been a the but be to looked side, to you than us bit we’ve the on date. haven’t – haven’t sell other that’s, in transact. us so that’s And at And market

about to we spend going get. what We’re discipline to going for we’re are what

Bill Mastoris

assume fair acquisition of of much any small I of that leverage range. And – be outside you your statement? outside going not targeted to business take is any a your Would that or

Dan Leib

as think I hypothetical consideration from guard the and our acquisitions, acquisition size about consideration talk is didn’t as both and Yes, to of leverage approaching speculate how well a market. on but we range targeted rail, clearly, M&A

next will thank participating. thank with talk of all call that, And Thank to for those after hosting quarter. And you. we and you you operator, the we for Okay.

Operator

for participating. Thank and you this gentlemen, concludes you. today’s may you now Thank conference. Ladies disconnect. And