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RR Donnelley & Sons (RRD)

Participants
Brian Feeney Senior Vice President-Investor Relations
Dan Knotts President and Chief Executive Officer
Terry Peterson Chief Financial Officer
Charlie Strauzer CJS Securities
David Phipps Citi
Bill Mastoris Baird and Company
Michael McCaffery Shenkman Capital
Call transcript
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Operator

Welcome to the R.R. Donnelley’s First Quarter 2018 Results Conference Call. My name is Louise and I'll be your operator for today's call. [Operator Instructions] Please note that this call is being recorded. I would now like to turn the call over to Brian Feeney, R.R. of President Vice Senior Investor Relations. Donnelley’s ahead. go Please

Brian Feeney

for Thank quarter first everyone you, and thank Louise joining XXXX RRD’s you results call. conference

Executive on of conclusion me Dan, President our today's are Financial Officer questions. Chief Chief Dan Peterson, and will At today's and prepared Joining Officer. Terry I Knotts, call Terry and the RRD's take remarks,

www.rrd.com. tab today's our be found can As we a which of have reminder, section the prepared in Events call, website Investors supplemental at slides for the under

first on who This slides will advancing results is our the call, filed which of release, press we we at in follow that all reference review SEC this reviewed call, website our current results of comments we supplemental posted copy As of to uncertainties. on a our could will the by the page quarter during our financial detail outlook the involve information our on call for actual will section first today's yesterday. expectations. Form the on themselves. materially to along and numbers which wish The is quarter from be more slides addressed participants those differ Therefore, Investors was to we strategy, also statements, forward-looking X-K from rrd.com. and also including risks furnished this refer Throughout information in

in We non-GAAP investors will cautionary filings in discuss our believe on cause information. included financial that factors other ongoing with are XX-Q Further, non-GAAP a reports performance. useful Form the we under to Any our quarterly supplementary Investors the the annual actual Form will now financial results earnings and financial our to are the the to of with for results presentation the For evaluate XX-K, turn statement in reconciled differ factors Presentation report on concerning provides appropriate and release Company's non-GAAP way to over of references provided please the discussion could informational the of They to our to I measures complete materially, section refer release Company's measures our the only. operations risk and purposes press our call and website an the comparable the GAAP tab. Dan. is information SEC.

Dan Knotts

these our Great. you I'm for we are morning, advancing call Logistics how by first today, On sustained actions delivering everyone represent transformation and value of demonstrate in with second steps a each followed and within financial our growth. Good of the our will these Thanks, for of joining the services mail our delivered sales strategic component to our and of few segments solutions pleased our share provide and realignment examples us. business. also momentum our sales into report quarter, performance including Brian. logistics and started segments. our that consecutive print on two business broader of that recent going for we overview clients of thank I'm pending services I transformation, announcements key organic two of new year review and an quarter strategies our the the Both strategy. regarding our an marketing update sale businesses to the

services Page for by see can organic the organic you X the slides, segment organic growth a marketing increased X% on X.X% quarter. solutions total our and growth delivering achieving of As with supplemental sales segment X.X%, business our our

win to large unfavorable the negatively and a were foreign changes rates. sales onetime related reflects a for channels line clients. capabilities in to and strategic our performance new our focused favorable expand executing objectives, Our results top our impacted our relationships our higher-than-expected exchange charge in and retail perspective, From a profitability of quarter bankruptcy our clients leveraging including with approach growth existing industry-leading the disciplined by client

expected these two impact productivity performance within of our mostly business factors, volumes our increased the offset businesses. couple as our occurring and from improvements positive in line with Aside headwinds was expectations a overall of

actively a year of improvement the more our our cover we including programs initiatives, the We're the through on are Terry call. to in in that our number are are plan, these confident later of acceleration facing businesses key addressing We guidance. will deliver business challenges in ability and reaffirming detail our full

X. Slide to Turning

our customers helping upon a new our our As solutions, path activation over play the customers premier services, role to in communications a business communications clients based provider to business realigned profitable industry-leading provider interactions and and growth utilize into services on leading to a touch-point, businesses to online, the evolving complex long-term strengthen connect acquire efficiency. an objective and their and offline repeat clients. customers that best marketing every we marketing are during strategic manage portfolio their through marketplace drive preeminent complexity and further customers segments, increasingly range with expand our are global strategic a our strategic a two depend relationships inspire they offerings, reduced multichannel business communications the with in in on new of of our capabilities To to meet with the clients full positioned time. marketing programs; businesses company, and better the we marketing serving that the each programs quarter, of to store, needs uniquely communications multichannel across help increased With those clients, they service we our they business of and with of our of by have

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a client We increase will the data company a retention their order gain to understanding assist started of large messaging and target client audience in activating increase recently this rates. electrical from user of also also have with that Pentair. separated high-performance personalization to conversion We've nVent, their with their deeper working and

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the is awarded time large institution first ever financial work. outsourced very business, which they've statement their Additionally, a this recently customer

efforts base the purpose-built to is forward. our business transaction our enable relationship operations for in full best services our this this opportunity marketing company the the a drive announced and new begin communications our at summer. LSC actively their providing the an We of going enhance and team to customer we Through across this business strategic solutions to represents our solutions business segments, focus customer spectrum business engaged combination logistics scale to engagement two morning, will print portfolio this a marketing performance. this significant of business leading opportunity we success to optimize with are and also providing and believe and optimization further as help ramp-up Our Communications. with important Earlier services, clients us of while sale onboard a mail powerful step

are our are a which will closing of take between in advancing transaction, of we strategic solid and expected of Overall, XXXX. progress efforts our facilitating in now All this aimed the smooth signing transformation. at QX making place transition

our We deep client's requirements. client and behaviors needs, of a understanding future have

is reshaping value We've resonating, sales our announced match a business to portfolio. new our an drive step winning objectives important we've and businesses business realigned in best client's as and our Our to organic growth. divestiture proposition we're strategic

markets work businesses. our of address and also recognized the We we to that the capture a the have do opportunities couple impacting to serve we more of challenges

aggressively to remain We continue capabilities executing highly strengthen initiatives. our focused. improvement We business while our

ability our to details in Our teams and confident over to are Terry execute provide outlook. With to engaged, actively our performance hand the and plan. financial I'll our you. over to call are we that, Terry more on

Terry Peterson

primary non-GAAP Thank focus comments The of and measures. you, my results on be certain will Dan.

For quarter. $X.XX a Page client sales X net also and and by basis. wins million Net X billion as with each These mail participants please the a geography reported growth both continue as I'm just happy a segments segment, first on are Packaging, in in report for refer of and I sales a product going for categories performance on segment second business foreign my up to our X.X% the quarter, begin of Net those segment shows we of remarks. organic reported or sales experienced were of an X.X% in services we into the and X excluding up categories Page growth seven as basis reported are Page changes quarter few logistics, in quarter. as who net the and Both well by expanded supplemental work the RRD. the that higher the XXXX. by and had that results in up we rate of with along to quarter labels in direct the sales new existing slides, volume of benefit consolidated impacted exchange year. following and by to organic trend quarter the deck were than provides snapshot better $XX.X our the sales consolidated on first in services the impact increased XX were see product that were consecutive and clients. segments. organic both services expected

secular ongoing significantly Our large Commercial to Print specialty addition reducing products see to a their continue card declines in volume the in client quarter.

stronger the million lessen card quarters $XX.X because Page than quarter first of first year-over-year down reported in was later specialty X, the million expect less million we sales $XX.X While income of XXXX, was XXXX be versus to quarters. throughout $XX.X quarter adjusted much operations impact the in future will XXXX. of from On

changes related As Dan quarter. $XX million than results negatively we unfavorable both exchange earlier, charge in anticipated greater the approximately impacted foreign had the FX $X.X mentioned The of rates XXXX. and of in million impact client bankruptcy going into was

In were on modest segment. taking see volume these cost in challenges actions volume and offset where price services from addition, we anticipated cost I'd from provide two an higher increases, the issues inefficiencies reductions pressure you from favorable impact by are our resulting client-specific the initiatives we the to going our update business to forward. inflationary clients and like these address with and in inflationary impact than more from slightly reduction large negative

increasing areas. Paper market price in these mid-last rising and year, offset increases costs. Asia rapidly we to We inflationary continue two been cost costs continue to have to in primarily pursue since increases, experience

costs these fully several quarters expect to and paper to suppliers will our increases. lessen impact to the more continue pass the impact along offset take market paper to to As price business. We we cost these of to it rise, believe adjustments continue overall seek further effective

second started impact which related is of increased also inflationary to year. costs The transportation, mid-last

rate these We intermodal more strategies, deploying increased to our alternative services to permitted a recover costs. along including adjustments and are market passing actively shift as client within procurement contracts

and We production the in quarter the continuing be due to structure projections late clients. adjusting to facilities, which aggressively expect neutral first XXXX is XXXX, revenue our costs the this these single client results into these match each dedicated Getting of last with incurred two bottom quarter fourth half we our issue for In better a volumes. client in of of mostly both to line revised of to we our are of in the year. lower cost cases, inefficiencies to

year-over-year the later For throughout XXXX later volume lower higher XXXX two these the in our in because first to cost first remain we the implementing are to with due of was we quarters clients, the quarters. of expect actions quarter demand improving than comparisons and

year. For we the volumes last half do in of the expect see the recover client, second to

and profits were income expense period, operations rate, mix Asia, negative primarily from per the pretax offset partially baked interest As effective quarter, our client reminder, benefits and as impact a headwinds related impact from million. the to which their were higher to into as tax the discrete increases the and lower reductions these tax they on included primarily going volume minimize $X.XX to results inflationary were nearly rate from in the XXXX while actions and well anticipated the rate $X.X of into loss year income Adjusted $X.XX for diluted of XXXX. per share lower down first from our prior $X.XX tax was tax previous related XXXX reductions quarter diluted of per in adjusted guidance rate reflected reported of share per an the unfavorable share by share by in reform jurisdiction. effective in The retroactive

rate of the increase. half year the in profitability half the significantly we to expected last tax but in is to fluctuates effective normalize first when Our expect

million, $X.X the charges GAAP million other year for $X.X tax also Our million initially charge quarter the transaction to a included charges pretax or $X.X XXXX related prior share to GAAP included an recorded tax restructuring included and for $X.X pretax adjustment per to a results expense results reform. quarter related estimate related restructuring other spin-off expenses. associated of $X.XX the provisional and and with Results for in for million of

net attributable up was our primarily $XX.X operations the products Page quarter and million wins. and of first clients from marketing $XXX.X was volume. prior driven X.X% the basis. sales and new sales growth for up was versus of each Next, organic mail growth were XXXX and year due to actions of our higher recent on to our impact reduction or direct from solutions our to the cost client $X.X million in reported direct million the for an by highlights segments. period existing will I million On both income XXXX XX, quarter Adjusted of segment of discuss the The a $X.X mail

changes, products modest income of delivered lower mentioned Page while million and increases foreign down $X.X the for surcharges the exchange rate Adjusted and Packaging impacted sales we to XX. segment or were effect by increased segment cost for organic of initiatives driven The X.X% sales. than products Logistics Print the business Logistics our a secular to price million, pressure services year increase due versus in adjusting the Turning sales. headwinds. were net volume up from growth from in prior Fuel XXXX of previously X% $XX.X favorable $X.XX million segment quarter. After card specialty sales to net while offset down Volume pressure net and across the the our $XX.X was the negatively by quarter. $XX.X services, in primarily operations in Commercial million impact more increased period. was and XXXX were reduction billion

XXXX driven quarter $X.X charge bankruptcy increased of by bad higher unallocated previously which $X.X non-GAAP $XX million million. million, corporate client debt included of First the mentioned expense, expenses

$XXX.X were year-over-year compared to of $X Asia higher due operating our to taxes net unfavorability. used charge, the initiatives. expenses driven this cash timing cost XX, execution first reasons the On Excluding activities our key in primarily in Page million the in of by for the in XXXX. capital and Net vendor reduction payments as successful quarter corporate was for changes unallocated decreased million working cash

million the in expect to We reverse expenditures second begin the $XX.X vendor payments were timing XXXX. in XXXX Capital unfavorable quarter to million of in the versus $XX.X quarter.

facility million quarter during planned we In vacant for the cash. executed in a Europe sale a addition, of $XX

the to now balance sheet. Turning

hand cash we of million credit outstanding drawn as credit and $XXX.X had our XX, the $XXX on of facility. XX. of total including March million of $XXX million March availability $X.XX facility was billion, Remaining total on debt against As

Before I ongoing for would I priorities. to shift to XXXX, of remind our capital expectations our like you

business, in in evaluate sale to optimize portfolio opportunities quarters, expect Europe strategic of have first stockholder continuously business. As quarter make investments investments like potential logistics we our the pending in including I sale our and strategic for value, past we and building stated print the organic to and acquisitions, our both

dividend, expect although to the And our do addition, quarterly in each repurchase shares to we our not foreseeable review does future. In remain our board dividend we quarter. committed recommendation

which for since last call, expectations Our full supplemental XX are year XXXX, of the changed not have on our reflected slides. Page

As of business, our logistics our in clarification, pending the close sale not impact a point which expectations to of quarter. print reflect do expected is the the of early third

year, to in $X.X $X.XX to range as XXXX. Shifting XXXX. billion to For expect $X.X as from to XXXX earnings compared the in to share flow. per Adjusted to $X.XX to net full diluted share sales compared billion $X.X is billion per we expected $X.XX our range from cash

million We will operations higher compares flow are improvements tax range XXXX. expected to reported include from payments, $XXX.X $XXX payments. to related reform, $XXX to tax expect cash working million. which interest million million, and $XXX contemplates capital range an which expenditures to Capital from $XX $XXX million This to in lower million to from range estimated

XXXX. to estimate at up, would our up second I to levels our slightly I for first the Before comment similar quarter quarter year. expected We to be sales of performance like wrap net versus on the but

continue costs volumes two be our negatively unfavorable by to reduced from transportation results paper We and clients. inefficiencies higher foreign from exchange to variances, and impacted expect

mix inflationary-related to supplier adjustments increases from further expect benefit along our through reduction we additional However, market and pass changes. cost including initiatives, price

higher and expect to continue to expense to our to lower rate tax tax be due In reform. addition, effective we interest remain

line to these and of guidance. our years, half cash flow be operator, now the seasonally factors considered in year. of expected have past strongest in been last for As questions. year are open let's in the full up earnings our the And Each

Operator

question ahead. Please And first Instructions] go from CJS you. from is Thank Charlie our [Operator Strauzer Securities.

Charlie Strauzer

morning. good Hi,

Dan Knotts

Charlie. morning, Good

Terry Peterson

Hi, Charlie.

Charlie Strauzer

Hey, a you. of couple questions for

how growth spike about, line you for you driving talked kind that you Toys"R"Us had the of second the good playing What's quarter, obviously again that into had better-than-expected straight organic First, that? the does headwinds Are about, any that of declines able in showing seeing that to let's kind as talk bankruptcy seen? sustainability of obviously have you're results, peers versus well. you've And top your kind there? more that kind – do of you like trends you're – is it some seeing organic been of this that those growth versus

Dan Knotts

for the question. thanks Hey, Dan. Charlie, It's

attributable are our across our differentiated and the can I organic going because think to growth a that segmentation of the make continuing the on, capabilities refined think we the significant portfolio and our approach which our and of and demonstrate directly be such sales efforts how go-to-market of have I sales from focus channels can company we we services. value progress clients are portfolio in for we leveraging deliver have products to

Our side searching that's, solutions things. increased for to we going searching the searching they're and doing our in those both ability for engagement efficient them and more they're They're marketing drive help things. consumer all clients, have of their And of areas. results two business in ways to for business services side, turn,

I business even into step marketing drive services of level. segments a So we the realigning organization quarter the to have, solutions able taking focus greater and focused to that sales channel our and that during to next it's that the capabilities differentiated approach be think

service Now for I had quarter. and with thing other think the XX that the sales the of growth to offerings as mentioned, recognize quarter, product plays our during important seven Terry

and challenges Our Print It largest business, secular side. hard are there's the Commercial some on overcome. cards that the within specialty going Print but to the on by that space we're address significant down was impacted Commercial working also was

deliver the just particular though, not great services one quarter our doing seven teams across the app XX for a XX product in of demonstrates it's those we increase fact, – are job In seven can board. area, that

Charlie Strauzer

that if growth as similar see what line I'm you And QX. for correctly? doing organic some QX Terry, you also Does flat in – should trend saw my well talked about to math in that top QX imply we the

Terry Peterson

I year expect We net quarter, as as company to but to to up organic we absolutely, did the comparable whole, that Yes. small we of see in Yes, prior a be level well. Actually, anticipate mention will roughly we expect amount kind a of that the sales be growth period. and do. that the from do the benefits second FX quarter, would for first

Charlie Strauzer

Excellent. print And margins, then just to you in of additional terms us sales Can transaction sort frame that the signs as of Thanks. terms other of gears that little of logistic this of provide of business in will business. switching sense churns a help bit can maybe you any of the on color be revenue, well helpful?

Terry Peterson

because are different that sales we little But last look will a $XXX But eventually able Certainly, provide I I'm roughly to million for color will specific does and certainly of tell sales the announced to different. Logistics customer provide mean you try report this that I very year. they when about within it terms But will be a sales so that of business, us net of our portion in mix, sales million XXXX, we've represented how they report not can LSC basis. of that our jointly obviously $XXX begin number on deal. for for net us, Yes. Charlie, since large the I to was

business which sales, that there, that a of thing certainly other part important significant essentially in business, piece there have is is a so The as no of within was margin the piece that pass-through know that that too. postage is to print space logistics that of a

Clearly, I think a the that what So we're a to space. is articulate think Logistics tied terms. to as that we being solely business valuation that business. But the for you purchase this reducer price of didn't as about the normalized the here, terms, is selling a mean, margin or print

asset-light print multiple as for you be you akin thinking would in more So what should like you generalized logistics to see multiples, companies. the not think services expectations, about marketplace

Charlie Strauzer

with not also so is freight – not well. if that? of this asset-sensitive like anything how in much as things really of of you drivers asset-light It's a find really kind broker, terms will, And and a more like

Terry Peterson

not certainly would that employ. do from We outside. we procure the Yes, drivers that

Charlie Strauzer

appreciate for question, of imply quarter And trend one on the two? improving on just In think that sequentially I the still should should How the we more then the which you the respect improve things color, in EBITDA QX? there Great. Terry, from top is about EBITDA QX, QX line. to on that mentioned some

Terry Peterson

Yes, no-brainer say I as or anticipate the QX kind the not bankruptcy-related going and foresee to would think is certainly customers. about do biggest of of QX first you charge we our any to another

certainly, So we'd quarter to the would would one But that That at all. that to and we quarter. the change between repeat not expect end to or $X.X million, customers something have now our be first develop contemplated change. with nothing of second I for of in perspectives gave for

I sources some beginning recoveries continue like those extra market about of I see alternative have in to the that using rate move those, that kind you'll think of headwinds we the so continuation in what a did an that provided increasingly mention of even but better offsetting. year, and like will of though those, on, impact to we've other stuff arrangements, of adjustments, many think, of supplier for the quarter color since by is against many second as forward have is way outlook transportation, them our I thing, other you The the contemplated that

even honestly, added all So as certainly, reduction number to that. initiatives, second quite some certain year, certainly our that bit business of of accelerated we just those even benefit. programs cost continue to the improve flow-through and on continue after as into have have go offset we've some plans. pressure improvement to get a challenges, to contemplates see – a And in these normal QX we on regarding practice those quarter our every those And of We'll we areas. headwinds perspective we've two, and headwinds a price should ongoing

we'd to offset expect again, So some more ability that way.

Charlie Strauzer

improvements If say fair maybe should show in around of EBITDA, I QX year, million is growth which I of these mean, think was to of to that I'm last in comparing year-over-year QX it $XX some EBITDA? it some

Terry Peterson

entirely about hard lot our were happen rates, second weakening U.S. driven the that's guidance we quarter and see contemplates into in we the possible. of China hurt certainly largely speak the our explicitly saw quarter. but I our of We there's by and too and RMB first by But is certainly, dollar exchange – that side with a pretty range, range. as side there. plus in FX, the it of minus can possibility things continuing a so That's and in well. didn't that the We the quarter obviously, first as that certainly within on

Although to year-over-year the came a second just in start the will certainly improve the year, in an kind to bit quarter. and specifically benefit kind headwind what activity for and quarters charges come be what but of ongoing probably prior us given that of through

Charlie Strauzer

you Thank Excellent. very much.

Terry Peterson

Yes.

Operator

you. Thank line And the Phipps Citi. Please go from question of ahead. from is our David next

David Phipps

Hi, thank the you question. for taking

walk through lasted would mitigate some you're throughout as the period, half you the that of them you to extended the expect when the year of quarters through we So that first cost go headwinds facing an in XXXX?

Terry Peterson

there's And examples to do would. impact. that couple a We of Yes, out we become an really less of there. good expect

to we cost the that half to relates the it issue time first the line impact us from a as really see we of being of by year. as think I negative behind the bottom the exit transportation,

and improvements be in more will volume and areas to to an issue fuller continue and actions more the partial some recoveries bottom other versus to that our mature the see we So quarter. client of periods the and quarter cost saw stuff have time as reductions a first line. We'll of second benefit related time that's half, the to neutral in that should

all of by in the we quarter in of in of offsetting those case one offsetting in progress yes, particular So terms expect do here. cases, fully or end second

David Phipps

Logistics looked out the figure maybe third, love business? And I'd side trying business, the of we're sold? your print to much being is of this didn't how second, And represents the then process, your that, that on sale to price does you the mention for I'm what compared And size. that's relatively company your this we so – to at out small account fact assuming guidance, logistics a for then

Dan Knotts

plan the again which initial early as that contemplate sale that Yes, does that not which updated the quarter. just expect sale. the reaffirmation appropriate part guidance of clarify, any is after We in to for to guidance adjustments adjust is a third we of guidance, the completed, to be would

but clarify, for adjustment not pending So, an include sale. just the that to does

we are this it right, the transaction, the not company. material have that selling You to price negotiated overall after is

not Obviously, detail impacts close. the outlook. as yet. to has other more be the disclosed does that it coming on our well We'll once front been information will as provide that transaction So

but I most that got to – information So do really to transaction that what I'd so probably be questions, can. able again, provide the at I'm this any – provided amount on time, of happy I if you other

David Phipps

One and in. were And capital year was this time, last flow you final working your was can reversal kind of different about, a XXXX I and you you that temporarily, quarter look different big at liabilities used talked to will work if And get which were that reverse. big the that refund means one year, quarter. accrued when did first The XXXX tax first said from you cash in look that this very pay would that year? taxes a anything there last numbers pressure

Terry Peterson

in start refund – that again, a were surprise a for payments, that small our year, We see Yes. was in us. to absolutely, situation situation that was contemplated this vendor recovery. so year payment and cash not flow, last net and The to a delta so that we'll

probably absolutely, It component to working is capital business. seen on payable. some But away issues. something do quarter. We a timing the given receivables. happen nice negative our the time was most us from in that to that, have actually had created reverse positives we historically I to that and offsetting is accounts abnormal net-net, we us, it the then for some and does has But volatility volatility, time is And not right that as to second to begin anticipate here that mentioned,

David Phipps

how about that much On grew could you that, to that in. if and represented how sneak year-over-year more available? One Asia, is talk break much out is it used

Terry Peterson

that see it back you you is X. provided data. Yes, some largely if slide refer can geographical I

of for reported you growth geography. about what Asia is is And on slide, growth we is – break can that those XX.X% that out. which one that see geographies

David Phipps

much very taking you Thank questions. my for

Terry Peterson

Sure, thank you.

Operator

and from And Please ahead. Bill Baird Company. question is Mastoris our from next go

Bill Mastoris

Thank you.

of we this additional kind of Thank of down use question So expect any be ¼ very would first plans will portfolio XXXX is to coming greatly going have a XX used road? question. the sale is the be comments that the can then the be proceeds, pruning that sales for the of where updated the second you reduction? appreciated. That beginning much. on of And debt will to then And be the redeem you

Terry Peterson

ahead pieces credit outstanding there. reduce go borrowings the I'll the to is Terry. proceeds this plan the transaction take take and The those our facility. to under and to is use from last This two

be will plan not to And on in the with approach out. maturity for in those of terms further identified an the take updated any that we next of developments year the of those have proceeds. then notes, quarter first plans So to dealing

told kind A Plan I will, and you on past, credit is, facility credit availability our in take will the latter the is execute would again, to use have on As to many we and the this actually company to into if solidify our flow the facility But Plan those call really on of to for year that the A. before against of out. sufficient depend that half cash

Dan Knotts

Dan. the your And Bill, take it's I'll part question. other of

profile that align always for markets the to with businesses serve. in of our opportunities the portfolio of to going look clients we are We to our needs and reshape

and our been So like divested businesses. we've acquisitive done we've historically, we've

We to will evaluate a basis. continue on those going-forward opportunities

portfolio over fit will the clients going the our say to that at statement, no, going to we fact look opportunities our than definitive other, way forward. reshape continue the needs best one – client to the of So other are the to we

Bill Mastoris

attractive competitive last as follow-up wins far new now. right nature enjoyed as same? because the you one that terms of maybe about What's those a Can contractual then historically? actually much have which And the kind getting Okay. you environment new those it's whether of talk wins or pretty question, it's would the that are that margins go and you're that versus more be

Dan Knotts

real. of efficiency that. Obviously, pursuing very think on clients a competitive opportunities is are I market dynamic of your top assessment

certainly advance our range a is the well. I wide general, to look the of assume within occur as bring margins business that those and to them part margins in But overall like there's over opportunity fair strategy profile. think time our So I of onboard, and businesses they think it's

Bill Mastoris

so color. Thank I for overall it. appreciate you much the

Dan Knotts

you. Thank

Operator

go McCaffery Our Please Michael Shenkman from next ahead. from question is Capital.

Michael McCaffery

answered been has question My thanks.

Operator

Instructions] [Operator

Dan Knotts

more have Louise, call. we one for time

Operator

a Sure, Charlie follow-up Strauzer from from CJS Securities. is question that

Dan Knotts

Charlie. back Welcome

Charlie Strauzer

Thanks.

reflected, and think for marketplace? with What here growth that taking Just organic wanted to having Obviously, for very had. especially in to trends the we're as as of perception the in second of market in these think here, down that kind quarter I the stocking discussion disconnect being is little kind bit the bit positive your in that's of showing you're implying pick seems consecutive are we regarding of the kind up view positive be the spite disconnect on a the little the next quarter given since well. we do growth investor not you quarter some a that there you organic our of print

Dan Knotts

find of a been I question while it's Charlie, about would I is to for that the that kind find. answer. we've answer say question consistent, here's an a appropriate pursuing what and to great pretty a and it's or think And tough

we different In the are is are standpoint the believe a the there, with into is are organic day, case, general in that different a published and time performance, top particular we're being forward for the we and different somebody differentiated. dynamics different are drive think competitors spends and just companies to differentiated do growth we're – at We're and do companies product that industry – the what our performance at focus control. I to end the pleased can organic we march to – with continue performance look And If sustain from are lines line our on the our we going of think from to going that there that we controlling set. produce. and that results on convert to in earnings. leads driving continuing that

I the absolutely about setting performance in plans those place pleased of performance a line we about, have sure aside the make bad talked business, to And want of address. and Terry look debt, we when with business to to we the are of with as FX the at that's couple As expectations. underlying in talked factors, that underlying our

driving talked answer aggressively cost that fully fact overcome that and like to level negative love improvement now. it the bankruptcies that but from And and factors would is mentioned all at to the completely and I'd different business are line, et in about, know a that with pursuing continue to the that business, out and follow-up right starts have need initiatives. away in those Terry have take do occurring impact, cost our with – that price love within to question performance that summary, actions the I and FX we also doesn't the we we're effort line, out because new overcome driving actions, think understand to we by we to and top – starts other win an the and business that. all our that cetera, It headwinds increases bottom to that the those However, drive in

Charlie Strauzer

think that Thank is fair. very much I you Dan.

Dan Knotts

Charlie. Thanks

Operator

Thank remarks. you. And please go closing ahead with any

Dan Knotts

again, us Great. Louise. the XX the Thanks today. call everyone, joining for on for listed the Slide key are deck. quarter takeaways Thanks, supplemental of on The

to like do the serve for around I'd clients our to for commitment every addition, dedication day your team thank company you ongoing work members In and world. to tremendous the our and this that

better to a talented With connections across I team turn We the it Brian. clients back we're have positioned customers our journey. with create will believe entire customer in We that, help our well place. over

Brian Feeney

Thanks, Dan.

our Quarter press of posted the in a to First As quarter is Donnelley's the of section be Investor a our can found XXXX reminder, replay at on rrd.com. telephonic first website which Call access RR of information release, Results copy

that RRD the In will Call. be on Services Macquarie addition, Thursday, and at I Earnings joining Terry Conference for the XX. you May Business concludes First in XXXX Quarter Boston us, presenting Thank C-Suite and

Operator

for you participation today. AT&T for for that conclude And Executive you. Thank our and your using Teleconference. conference does Thank

disconnect. may You now