CHICAGO, Aug. 2, 2023
/PRNewswire/ -- Donnelley Financial Solutions, Inc. (NYSE:
DFIN) (the "Company" or "DFIN") today reported financial
results for the second quarter of 2023.
Highlights:
- Total net sales of $242.1 million
and net earnings of $37.7 million, or
$1.24 per diluted share.
- Record quarterly software solutions net sales of $75.7 million, an increase of 5.7%, or 7.9% on an
organic basis(a), from the second quarter of 2022.
- Adjusted EBITDA(a) of $74.3
million and Adjusted EBITDA margin(a) of 30.7%,
down 30 basis points from the second quarter of 2022.
- Non-GAAP gross leverage of 1.1x and non-GAAP net leverage of
1.0x.
- During the second quarter, the Company repurchased 42,987
shares for $1.9 million at an average
price of $43.59 per share. As of
June 30, 2023, the remaining share repurchase authorization
was $121.1 million.
(a) Organic net sales, Adjusted EBITDA, and Adjusted EBITDA
margin are non-GAAP financial measures that exclude the impact of
certain items noted in the reconciliation tables below. The tables
below provide reconciliations to the most comparable GAAP
measures.
"We are pleased with our second-quarter results, including the
acceleration of software solutions net sales, which resulted in
record quarterly net sales in software solutions. Total software
solutions net sales increased 5.7%, or 7.9% on an organic basis,
compared to the second quarter of 2022, with growth in both our
recurring compliance and transactional software offerings exceeding
the trend from the last several quarters. Recurring compliance
software featuring ActiveDisclosure and Arc Suite delivered net
sales growth of approximately 9% in aggregate. Venue net sales grew
nearly 9% in the second quarter, significantly outpacing the market
for its primary use case, mergers and acquisitions. Additionally,
the demand for our capital markets traditional compliance offering
remained robust during this year's peak filing season, enabling us
to exceed last year's very strong second-quarter compliance sales,"
said Daniel N. Leib, DFIN's
president and chief executive officer.
Leib continued, "Our results in the second quarter further
demonstrate our ability to sustainably operate at a higher level of
profitability in challenging market conditions. We delivered an
Adjusted EBITDA margin of 30.7% in the second quarter, despite a
nearly 40% reduction in transactional revenue driven by the ongoing
weakness in the capital markets transactions environment. Our
strong margin performance in the quarter reflects the combination
of our ongoing migration to a more favorable sales mix, permanent
reductions to our cost structure, and operating efficiencies, while
also investing to drive recurring revenue growth."
"As we enter the second half of the year, we are pleased with
the momentum in our software solutions net sales and believe we are
well positioned for future growth. Further, we are encouraged by
the level of capital markets transactional activity so far in the
third quarter, a continuation of the improvement we saw in June."
Leib concluded.
Net Sales
Net sales in the second quarter of 2023 were $242.1 million, a decrease of $24.1 million, or 9.1% (a decrease of 8.3% on an
organic basis), from the second quarter of 2022. Net sales
decreased primarily due to lower capital markets transactional
volumes, which decreased approximately $28.1
million year-over-year, and the impact of the EdgarOnline
disposition, partially offset by higher software solutions net
sales in Arc Suite, Venue, and ActiveDisclosure.
Net Earnings
For the second quarter of 2023, net earnings were $37.7 million, or $1.24 per diluted share, as compared to
$46.0 million, or $1.42 per diluted share, in the second quarter of
2022. Net earnings in the second quarter of 2023 included after-tax
charges of $2.9 million, or
$0.10 per diluted share, primarily
related to share-based compensation expense, partially offset by a
credit in restructuring, impairment and other charges, net. Net
earnings in the second quarter of 2022 included after-tax charges
of $3.9 million, or $0.12 per diluted share, primarily related to
share-based compensation expense.
Adjusted EBITDA and Non-GAAP Net Earnings
For the second quarter of 2023, Adjusted EBITDA was $74.3 million, a decrease of $8.3 million as compared to the second quarter of
2022. Adjusted EBITDA margin was 30.7%, a decrease of approximately
30 basis points as compared to the second quarter of 2022.
For the second quarter of 2023, non-GAAP net earnings were
$40.6 million, or $1.34 per diluted share, as compared to
$49.9 million, or $1.54 per diluted share, in the second quarter of
2022.
Reconciliations of net earnings to Adjusted EBITDA, Adjusted
EBITDA margin and non-GAAP net earnings are presented in the
tables.
Company Results and Conference Call
DFIN's earnings press release for the second quarter of 2023,
which is included as Exhibit 99.1 to the Company's Current Report
on Form 8-K that has been furnished to the SEC on August 2, 2023, is available on the Company's
investor relations website at investor.dfinsolutions.com. A
supplemental trending schedule of historical results, including
additional breakouts of segment-level net sales, is also available
on the Company's investor relations website.
DFIN will hold a conference call and webcast on August 2, 2023, at 9:00
a.m. Eastern time to discuss financial results for the
second quarter of 2023, provide a general business update and
respond to analyst questions.
A live webcast of the call will also be available on the
Company's investor relations website. Please visit
investor.dfinsolutions.com at least fifteen minutes prior to
the start of the event to register, download and install any
necessary audio software.
If you are unable to participate live, a replay of the webcast
will be available following the conference call on the Company's
investor relations website, along with the earnings press release,
and related financial tables.
About DFIN
DFIN is a leading global risk and compliance solutions company.
We provide domain expertise, enterprise software, and data
analytics for every stage of our clients' business and investment
lifecycles. Markets fluctuate, regulations evolve, technology
advances, and through it all, DFIN delivers confidence with the
right solutions in moments that matter. Learn about DFIN's
end-to-end risk and compliance solutions online at
DFINsolutions.com or you can also follow us on Twitter
@DFINSolutions or on LinkedIn.
Use of Non-GAAP Information
This news release contains certain non-GAAP financial measures,
including non-GAAP gross profit, adjusted non-GAAP gross profit,
non-GAAP gross margin, adjusted non-GAAP selling, general, and
administrative expenses ("SG&A"), adjusted non-GAAP income from
operations, adjusted non-GAAP operating margin, Adjusted EBITDA,
Adjusted EBITDA margin, non-GAAP effective tax rate, adjusted
non-GAAP net earnings, adjusted non-GAAP diluted earnings per
share, Free Cash Flow and organic net sales. The Company believes
that these non-GAAP financial measures, when presented in
conjunction with comparable GAAP measures, provide useful
information about the Company's operating results and liquidity and
enhance the overall ability to assess the Company's financial
performance. The Company uses these measures, together with other
measures of performance under GAAP, to compare the relative
performance of operations in planning, budgeting and reviewing the
performance of its business.
The Company's non-GAAP statement of operations measures, which
include non-GAAP gross profit, adjusted non-GAAP gross profit,
non-GAAP gross margin, adjusted non-GAAP SG&A, adjusted
non-GAAP income from operations, adjusted non-GAAP operating
margin, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP effective
tax rate, adjusted non-GAAP net earnings and adjusted non-GAAP
diluted earnings per share, are adjusted to exclude the impact of
certain costs, expenses, gains and losses and other specified items
that management believes are not indicative of our ongoing
operations. These adjusted measures exclude the impact of expenses
associated with the Company's non-income tax, net, accelerated rent
expense, share-based compensation and eliminate potential
differences in results of operations between periods caused by
factors such as historic cost and age of assets, financing and
capital structures, taxation positions or regimes, restructuring,
impairment and other charges, net and gain or loss on certain
investments, business sales and asset sales.
Free Cash Flow is a non-GAAP financial measure and is defined by
the Company as net cash flow provided by operating activities less
capital expenditures. By adjusting for the level of capital
investment in operations, the Company believes that free cash flow
can provide useful additional basis for understanding the Company's
ability to generate cash after capital investment and provides a
comparison to peers with differing capital intensity.
Organic net sales is a non-GAAP financial measure and is defined
by the Company as reported net sales adjusted for the changes in
foreign currency exchange rates and the impact of dispositions.
These non-GAAP financial measures should be considered in
addition to, not a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP. In
addition, these measures are defined differently by different
companies in our industry and, accordingly, such measures may not
be comparable to similarly-titled measures of other companies.
Use of Forward-Looking Statements
This news release includes certain "forward-looking statements"
within the meaning of, and subject to the safe harbor created by,
Section 21E of the Securities Exchange Act of 1934, as amended,
with respect to the business, strategy and plans of DFIN and its
expectations relating to future financial condition and
performance. Statements that are not historical facts, including
statements about DFIN management's beliefs and expectations, are
forward-looking statements. Words such as "believes,"
"anticipates," "estimates," "expects," "intends," "aims,"
"potential," "will," "would," "could," "considered," "likely,"
"estimate" and variations of these words and similar future or
conditional expressions are intended to identify forward-looking
statements but are not the exclusive means of identifying such
statements. While DFIN believes these expectations, assumptions,
estimates and projections are reasonable, such forward-looking
statements are only predictions and involve known and unknown risks
and uncertainties, many of which are beyond DFIN's control. By
their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend upon future
circumstances that may or may not occur. Actual results may differ
materially from DFIN's current expectations depending upon a number
of factors affecting the business and risks associated with the
performance of the business. These factors include such risks and
uncertainties detailed in DFIN periodic public filings with the
SEC, including but not limited to those discussed under "Special
Note Regarding Forward-Looking Statements" and in Part I, Item 1A.
Risk Factors of DFIN's Annual Report on Form 10-K for the
fiscal year ended December 31, 2022,
those discussed under "Special Note Regarding Forward-Looking
Statements" in DFIN's Quarterly Reports on Form 10-Q, and in other
investor communications of DFIN's from time to time. DFIN does not
undertake to and specifically declines any obligation to publicly
release the results of any revisions to these forward-looking
statements that may be made to reflect future events or
circumstances after the date of such statement or to reflect the
occurrence of anticipated or unanticipated events.
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
Condensed Consolidated
Balance Sheets
|
(UNAUDITED)
|
(in millions,
except per share data)
|
|
|
|
June 30,
2023
|
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
19.4
|
|
|
$
|
34.2
|
|
Receivables, less
allowances for expected losses of $17.8 in 2023 (2022 -
$17.1)
|
|
|
243.1
|
|
|
|
163.5
|
|
Prepaid expenses and
other current assets
|
|
|
30.9
|
|
|
|
28.1
|
|
Assets held for
sale
|
|
|
2.6
|
|
|
|
2.6
|
|
Total current
assets
|
|
|
296.0
|
|
|
|
228.4
|
|
Property, plant and
equipment, net
|
|
|
16.4
|
|
|
|
17.6
|
|
Operating lease
right-of-use assets
|
|
|
26.7
|
|
|
|
33.3
|
|
Software,
net
|
|
|
82.6
|
|
|
|
75.6
|
|
Goodwill
|
|
|
406.0
|
|
|
|
405.8
|
|
Other intangible
assets, net
|
|
|
6.6
|
|
|
|
7.8
|
|
Deferred income taxes,
net
|
|
|
38.7
|
|
|
|
33.4
|
|
Other noncurrent
assets
|
|
|
29.2
|
|
|
|
26.4
|
|
Total
assets
|
|
$
|
902.2
|
|
|
$
|
828.3
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
51.6
|
|
|
$
|
49.2
|
|
Operating lease
liabilities
|
|
|
15.1
|
|
|
|
16.3
|
|
Accrued
liabilities
|
|
|
142.4
|
|
|
|
159.3
|
|
Total current
liabilities
|
|
|
209.1
|
|
|
|
224.8
|
|
Long-term
debt
|
|
|
219.8
|
|
|
|
169.2
|
|
Deferred compensation
liabilities
|
|
|
14.4
|
|
|
|
13.6
|
|
Pension and other
postretirement benefits plans liabilities
|
|
|
41.3
|
|
|
|
42.9
|
|
Noncurrent operating
lease liabilities
|
|
|
21.2
|
|
|
|
28.4
|
|
Other noncurrent
liabilities
|
|
|
20.4
|
|
|
|
19.9
|
|
Total
liabilities
|
|
|
526.2
|
|
|
|
498.8
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Preferred stock, $0.01
par value
|
|
|
|
|
|
|
Authorized: 1.0
shares; Issued: None
|
|
|
—
|
|
|
|
—
|
|
Common stock, $0.01
par value
|
|
|
|
|
|
|
Authorized: 65.0
shares;
|
|
|
|
|
|
|
Issued and
outstanding: 37.9 shares and 29.4 shares in 2023 (2022 - 36.9
shares and 28.9 shares)
|
|
|
0.4
|
|
|
|
0.4
|
|
Treasury stock, at
cost: 8.5 shares in 2023 (2022 - 8.0 shares)
|
|
|
(242.3)
|
|
|
|
(221.8)
|
|
Additional paid-in
capital
|
|
|
292.3
|
|
|
|
280.2
|
|
Retained
earnings
|
|
|
407.4
|
|
|
|
353.9
|
|
Accumulated other
comprehensive loss
|
|
|
(81.8)
|
|
|
|
(83.2)
|
|
Total
equity
|
|
|
376.0
|
|
|
|
329.5
|
|
Total liabilities
and equity
|
|
$
|
902.2
|
|
|
$
|
828.3
|
|
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
Condensed Consolidated
Statements of Operations
|
(UNAUDITED)
|
(in millions, except
per share data)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Tech-enabled
services
|
|
$
|
104.5
|
|
|
$
|
133.3
|
|
|
$
|
182.9
|
|
|
$
|
225.0
|
|
Software
solutions
|
|
|
75.7
|
|
|
|
71.6
|
|
|
|
145.8
|
|
|
|
141.4
|
|
Print and
distribution
|
|
|
61.9
|
|
|
|
61.3
|
|
|
|
112.0
|
|
|
|
110.8
|
|
Total net
sales
|
|
|
242.1
|
|
|
|
266.2
|
|
|
|
440.7
|
|
|
|
477.2
|
|
Cost of sales
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Tech-enabled
services
|
|
|
37.0
|
|
|
|
40.2
|
|
|
|
70.3
|
|
|
|
77.9
|
|
Software
solutions
|
|
|
26.9
|
|
|
|
28.6
|
|
|
|
55.3
|
|
|
|
56.1
|
|
Print and
distribution
|
|
|
34.3
|
|
|
|
42.9
|
|
|
|
62.9
|
|
|
|
76.6
|
|
Total cost of
sales
|
|
|
98.2
|
|
|
|
111.7
|
|
|
|
188.5
|
|
|
|
210.6
|
|
Selling, general and
administrative expenses (a)
|
|
|
76.2
|
|
|
|
77.4
|
|
|
|
146.7
|
|
|
|
141.7
|
|
Depreciation and
amortization
|
|
|
14.4
|
|
|
|
11.2
|
|
|
|
26.8
|
|
|
|
21.9
|
|
Restructuring,
impairment and other charges, net
|
|
|
(2.2)
|
|
|
|
0.2
|
|
|
|
8.7
|
|
|
|
2.0
|
|
Other operating income,
net
|
|
|
(0.1)
|
|
|
|
(0.2)
|
|
|
|
(0.4)
|
|
|
|
(0.2)
|
|
Income from
operations
|
|
|
55.6
|
|
|
|
65.9
|
|
|
|
70.4
|
|
|
|
101.2
|
|
Interest expense,
net
|
|
|
4.6
|
|
|
|
2.1
|
|
|
|
8.1
|
|
|
|
3.6
|
|
Investment and other
income, net
|
|
|
(0.3)
|
|
|
|
(0.3)
|
|
|
|
(7.2)
|
|
|
|
(0.5)
|
|
Earnings before
income taxes
|
|
|
51.3
|
|
|
|
64.1
|
|
|
|
69.5
|
|
|
|
98.1
|
|
Income tax
expense
|
|
|
13.6
|
|
|
|
18.1
|
|
|
|
16.0
|
|
|
|
25.7
|
|
Net
earnings
|
|
$
|
37.7
|
|
|
$
|
46.0
|
|
|
$
|
53.5
|
|
|
$
|
72.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.28
|
|
|
$
|
1.46
|
|
|
$
|
1.83
|
|
|
$
|
2.25
|
|
Diluted
|
|
$
|
1.24
|
|
|
$
|
1.42
|
|
|
$
|
1.76
|
|
|
$
|
2.17
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
29.5
|
|
|
|
31.5
|
|
|
|
29.3
|
|
|
|
32.2
|
|
Diluted
|
|
|
30.4
|
|
|
|
32.4
|
|
|
|
30.4
|
|
|
|
33.4
|
|
__________
(a)
|
Exclusive of
depreciation and amortization
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
Components of
depreciation and amortization:
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Cost of
sales
|
|
$
|
12.8
|
|
|
$
|
10.4
|
|
|
$
|
24.3
|
|
|
$
|
20.4
|
|
Selling, general and
administrative expenses
|
|
|
1.6
|
|
|
|
0.8
|
|
|
|
2.5
|
|
|
|
1.5
|
|
Total depreciation and
amortization
|
|
$
|
14.4
|
|
|
$
|
11.2
|
|
|
$
|
26.8
|
|
|
$
|
21.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(b)
|
|
$
|
131.1
|
|
|
$
|
144.1
|
|
|
$
|
227.9
|
|
|
$
|
246.2
|
|
Exclude: Depreciation
and amortization
|
|
|
12.8
|
|
|
|
10.4
|
|
|
|
24.3
|
|
|
|
20.4
|
|
Non-GAAP gross
profit
|
|
$
|
143.9
|
|
|
$
|
154.5
|
|
|
$
|
252.2
|
|
|
$
|
266.6
|
|
Gross margin
(b)
|
|
|
54.2
|
%
|
|
|
54.1
|
%
|
|
|
51.7
|
%
|
|
|
51.6
|
%
|
Non-GAAP gross
margin
|
|
|
59.4
|
%
|
|
|
58.0
|
%
|
|
|
57.2
|
%
|
|
|
55.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SG&A as a % of
total net sales (a)
|
|
|
31.5
|
%
|
|
|
29.1
|
%
|
|
|
33.3
|
%
|
|
|
29.7
|
%
|
Operating
margin
|
|
|
23.0
|
%
|
|
|
24.8
|
%
|
|
|
16.0
|
%
|
|
|
21.2
|
%
|
Effective tax
rate
|
|
|
26.5
|
%
|
|
|
28.2
|
%
|
|
|
23.0
|
%
|
|
|
26.2
|
%
|
__________
(b)
|
Inclusive of
depreciation and amortization
|
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
Reconciliation of GAAP
to Non-GAAP Measures
|
For the Three and Six
Months Ended June 30, 2023
|
(UNAUDITED)
|
(in millions, except
per share data)
|
|
|
For the Three Months
Ended June 30, 2023
|
|
|
Gross
profit
|
|
|
SG&A
(a)
|
|
|
Income (loss)
from
operations
|
|
|
Operating
margin
|
|
|
Net
earnings
(loss)
|
|
|
Net
earnings (loss)
per diluted
share
|
|
GAAP basis
measures
|
$
|
131.1
|
|
|
$
|
76.2
|
|
|
$
|
55.6
|
|
|
|
23.0
|
%
|
|
$
|
37.7
|
|
|
$
|
1.24
|
|
Exclude: Depreciation
and amortization
|
|
12.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
measures
|
|
143.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP % of total
net sales
|
|
59.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
impairment and other charges, net
|
|
—
|
|
|
|
—
|
|
|
|
(2.2)
|
|
|
|
(0.9)
|
%
|
|
|
(1.4)
|
|
|
|
(0.04)
|
|
Share-based
compensation expense
|
|
—
|
|
|
|
(6.7)
|
|
|
|
6.7
|
|
|
|
2.8
|
%
|
|
|
4.7
|
|
|
|
0.15
|
|
Accelerated rent
expense
|
|
0.1
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
Non-income tax,
net
|
|
—
|
|
|
|
0.2
|
|
|
|
(0.2)
|
|
|
|
(0.1)
|
%
|
|
|
(0.2)
|
|
|
|
(0.01)
|
|
Gain on sale of
long-lived assets
|
|
—
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
Gain on investments in
equity securities (c)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
(0.01)
|
|
Total Non-GAAP
adjustments (b)
|
|
0.1
|
|
|
|
(6.5)
|
|
|
|
4.3
|
|
|
|
1.8
|
%
|
|
|
2.9
|
|
|
|
0.10
|
|
Adjusted Non-GAAP
measures (b)
|
$
|
144.0
|
|
|
$
|
69.7
|
|
|
$
|
59.9
|
|
|
|
24.7
|
%
|
|
$
|
40.6
|
|
|
$
|
1.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2023
|
|
|
Gross
profit
|
|
|
SG&A
(a)
|
|
|
Income (loss)
from
operations
|
|
|
Operating
margin
|
|
|
Net
earnings
(loss)
|
|
|
Net
earnings (loss)
per diluted
share
|
|
GAAP basis
measures
|
$
|
227.9
|
|
|
$
|
146.7
|
|
|
$
|
70.4
|
|
|
|
16.0
|
%
|
|
$
|
53.5
|
|
|
$
|
1.76
|
|
Exclude: Depreciation
and amortization
|
|
24.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
measures
|
|
252.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP % of total
net sales
|
|
57.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
impairment and other charges, net
|
|
—
|
|
|
|
—
|
|
|
|
8.7
|
|
|
|
2.0
|
%
|
|
|
6.4
|
|
|
|
0.21
|
|
Share-based
compensation expense
|
|
—
|
|
|
|
(11.0)
|
|
|
|
11.0
|
|
|
|
2.5
|
%
|
|
|
4.9
|
|
|
|
0.16
|
|
Accelerated rent
expense
|
|
0.5
|
|
|
|
(0.1)
|
|
|
|
0.6
|
|
|
|
0.1
|
%
|
|
|
0.4
|
|
|
|
0.01
|
|
Gain on sale of
long-lived assets
|
|
—
|
|
|
|
—
|
|
|
|
(0.4)
|
|
|
|
(0.1)
|
%
|
|
|
(0.3)
|
|
|
|
(0.01)
|
|
Non-income tax,
net
|
|
—
|
|
|
|
0.4
|
|
|
|
(0.4)
|
|
|
|
(0.1)
|
%
|
|
|
(0.3)
|
|
|
|
(0.01)
|
|
Gain on investments in
equity securities (c)
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5.0)
|
|
|
|
(0.16)
|
|
Total non-GAAP
adjustments (b)
|
|
0.5
|
|
|
|
(10.7)
|
|
|
|
19.5
|
|
|
|
4.4
|
%
|
|
|
6.1
|
|
|
|
0.20
|
|
Adjusted non-GAAP
measures (b)
|
$
|
252.7
|
|
|
$
|
136.0
|
|
|
$
|
89.9
|
|
|
|
20.4
|
%
|
|
$
|
59.6
|
|
|
$
|
1.96
|
|
__________
(a)
|
Exclusive of
depreciation and amortization.
|
(b)
|
Totals may not foot due
to rounding.
|
(c)
|
Gain on investments in
equity securities is recorded within investment and other income,
net on the Company's Unaudited Condensed Consolidated Statements of
Operations.
|
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
Reconciliation of GAAP
to Non-GAAP Measures
|
For the Three and Six
Months Ended June 30, 2022
|
(UNAUDITED)
|
(in millions, except
per share data)
|
|
|
For the Three Months
Ended June 30, 2022
|
|
|
Gross
profit
|
|
|
SG&A
(a)
|
|
|
Income (loss)
from
operations
|
|
|
Operating
margin
|
|
|
Net
earnings
(loss)
|
|
|
Net
earnings (loss)
per diluted
share
|
|
GAAP basis
measures
|
$
|
144.1
|
|
|
$
|
77.4
|
|
|
$
|
65.9
|
|
|
|
24.8
|
%
|
|
$
|
46.0
|
|
|
$
|
1.42
|
|
Exclude: Depreciation
and amortization
|
|
10.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
measures
|
|
154.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP % of total
net sales
|
|
58.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
impairment and other charges, net
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.1
|
%
|
|
|
0.1
|
|
|
|
—
|
|
Share-based
compensation expense
|
|
—
|
|
|
|
(5.9)
|
|
|
|
5.9
|
|
|
|
2.2
|
%
|
|
|
4.2
|
|
|
|
0.13
|
|
COVID-19 related
recoveries
|
|
(0.1)
|
|
|
|
0.1
|
|
|
|
(0.2)
|
|
|
|
(0.1)
|
%
|
|
|
(0.1)
|
|
|
|
—
|
|
Gain on sale of
long-lived assets
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
(0.1)
|
%
|
|
|
(0.2)
|
|
|
|
(0.01)
|
|
Non-income tax,
net
|
|
—
|
|
|
|
0.2
|
|
|
|
(0.2)
|
|
|
|
(0.1)
|
%
|
|
|
(0.1)
|
|
|
|
—
|
|
Total Non-GAAP
adjustments (b)
|
|
(0.1)
|
|
|
|
(5.6)
|
|
|
|
5.5
|
|
|
|
2.1
|
%
|
|
|
3.9
|
|
|
|
0.12
|
|
Adjusted Non-GAAP
measures (b)
|
$
|
154.4
|
|
|
$
|
71.8
|
|
|
$
|
71.4
|
|
|
|
26.8
|
%
|
|
$
|
49.9
|
|
|
$
|
1.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2022
|
|
|
Gross
profit
|
|
|
SG&A
(a)
|
|
|
Income (loss)
from
operations
|
|
|
Operating
margin
|
|
|
Net
earnings
(loss)
|
|
|
Net
earnings (loss)
per diluted
share
|
|
GAAP basis
measures
|
$
|
246.2
|
|
|
$
|
141.7
|
|
|
$
|
101.2
|
|
|
|
21.2
|
%
|
|
$
|
72.4
|
|
|
$
|
2.17
|
|
Exclude: Depreciation
and amortization
|
|
20.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
measures
|
|
266.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP % of total
net sales
|
|
55.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
impairment and other charges, net
|
|
—
|
|
|
|
—
|
|
|
|
2.0
|
|
|
|
0.4
|
%
|
|
|
1.4
|
|
|
|
0.04
|
|
Share-based
compensation expense
|
|
—
|
|
|
|
(9.5)
|
|
|
|
9.5
|
|
|
|
2.0
|
%
|
|
|
5.0
|
|
|
|
0.15
|
|
COVID-19 related
recoveries
|
|
(0.1)
|
|
|
|
0.1
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
Gain on sale of
long-lived assets
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
(0.01)
|
|
Non-income tax,
net
|
|
—
|
|
|
|
0.5
|
|
|
|
(0.5)
|
|
|
|
(0.1)
|
%
|
|
|
(0.3)
|
|
|
|
(0.01)
|
|
Total non-GAAP
adjustments (b)
|
|
(0.1)
|
|
|
|
(8.9)
|
|
|
|
10.6
|
|
|
|
2.2
|
%
|
|
|
5.8
|
|
|
|
0.17
|
|
Adjusted non-GAAP
measures (b)
|
$
|
266.5
|
|
|
$
|
132.8
|
|
|
$
|
111.8
|
|
|
|
23.4
|
%
|
|
$
|
78.2
|
|
|
$
|
2.34
|
|
__________
(a)
|
Exclusive of
depreciation and amortization.
|
(b)
|
Totals may not foot due
to rounding.
|
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
Segment GAAP to
Non-GAAP Reconciliation and Supplementary Information
|
For the Three Months
Ended June 30, 2023 and 2022
|
(UNAUDITED)
|
(in
millions)
|
|
|
|
Capital
Markets -
Software
Solutions
|
|
|
Capital Markets
-
Compliance and
Communications
Management
|
|
|
Investment
Companies -
Software
Solutions
|
|
|
Investment
Companies -
Compliance and
Communications
Management
|
|
|
Corporate
|
|
|
Consolidated
|
|
For the Three Months
Ended June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
47.7
|
|
|
$
|
122.9
|
|
|
$
|
28.0
|
|
|
$
|
43.5
|
|
|
$
|
—
|
|
|
$
|
242.1
|
|
Income (loss) from
operations
|
|
|
4.4
|
|
|
|
47.0
|
|
|
|
6.7
|
|
|
|
16.1
|
|
|
|
(18.6)
|
|
|
|
55.6
|
|
Operating margin
%
|
|
|
9.2
|
%
|
|
|
38.2
|
%
|
|
|
23.9
|
%
|
|
|
37.0
|
%
|
|
nm
|
|
|
|
23.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
impairment and other charges, net
|
|
|
1.0
|
|
|
|
(4.0)
|
|
|
|
0.7
|
|
|
|
(0.2)
|
|
|
|
0.3
|
|
|
|
(2.2)
|
|
Share-based
compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.7
|
|
|
|
6.7
|
|
Accelerated rent
expense
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
Gain on sale of
long-lived assets
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.1)
|
|
Non-income tax,
net
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
Total Non-GAAP
adjustments
|
|
|
0.9
|
|
|
|
(4.0)
|
|
|
|
0.6
|
|
|
|
(0.2)
|
|
|
|
7.0
|
|
|
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss)
from operations
|
|
$
|
5.3
|
|
|
$
|
43.0
|
|
|
$
|
7.3
|
|
|
$
|
15.9
|
|
|
$
|
(11.6)
|
|
|
$
|
59.9
|
|
Non-GAAP operating
margin %
|
|
|
11.1
|
%
|
|
|
35.0
|
%
|
|
|
26.1
|
%
|
|
|
36.6
|
%
|
|
nm
|
|
|
|
24.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
7.9
|
|
|
|
1.9
|
|
|
|
3.4
|
|
|
|
1.2
|
|
|
|
—
|
|
|
|
14.4
|
|
Adjusted
EBITDA
|
|
$
|
13.2
|
|
|
$
|
44.9
|
|
|
$
|
10.7
|
|
|
$
|
17.1
|
|
|
$
|
(11.6)
|
|
|
$
|
74.3
|
|
Adjusted EBITDA margin
%
|
|
|
27.7
|
%
|
|
|
36.5
|
%
|
|
|
38.2
|
%
|
|
|
39.3
|
%
|
|
nm
|
|
|
|
30.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
6.3
|
|
|
$
|
1.9
|
|
|
$
|
3.8
|
|
|
$
|
0.7
|
|
|
$
|
0.5
|
|
|
$
|
13.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
46.3
|
|
|
$
|
150.0
|
|
|
$
|
25.3
|
|
|
$
|
44.6
|
|
|
$
|
—
|
|
|
$
|
266.2
|
|
Income (loss) from
operations
|
|
|
3.1
|
|
|
|
60.5
|
|
|
|
5.9
|
|
|
|
13.7
|
|
|
|
(17.3)
|
|
|
|
65.9
|
|
Operating margin
%
|
|
|
6.7
|
%
|
|
|
40.3
|
%
|
|
|
23.3
|
%
|
|
|
30.7
|
%
|
|
nm
|
|
|
|
24.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
impairment and other charges, net
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
0.2
|
|
|
|
0.2
|
|
Share-based
compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5.9
|
|
|
|
5.9
|
|
COVID-19 related
recoveries
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
Gain on sale of
long-lived assets
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
Non-income tax,
net
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
Total Non-GAAP
adjustments
|
|
|
0.1
|
|
|
|
(0.4)
|
|
|
|
(0.1)
|
|
|
|
(0.2)
|
|
|
|
6.1
|
|
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss)
from operations
|
|
$
|
3.2
|
|
|
$
|
60.1
|
|
|
$
|
5.8
|
|
|
$
|
13.5
|
|
|
$
|
(11.2)
|
|
|
$
|
71.4
|
|
Non-GAAP operating
margin %
|
|
|
6.9
|
%
|
|
|
40.1
|
%
|
|
|
22.9
|
%
|
|
|
30.3
|
%
|
|
nm
|
|
|
|
26.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
5.6
|
|
|
|
1.7
|
|
|
|
2.8
|
|
|
|
1.1
|
|
|
|
—
|
|
|
|
11.2
|
|
Adjusted
EBITDA
|
|
$
|
8.8
|
|
|
$
|
61.8
|
|
|
$
|
8.6
|
|
|
$
|
14.6
|
|
|
$
|
(11.2)
|
|
|
$
|
82.6
|
|
Adjusted EBITDA margin
%
|
|
|
19.0
|
%
|
|
|
41.2
|
%
|
|
|
34.0
|
%
|
|
|
32.7
|
%
|
|
nm
|
|
|
|
31.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
7.5
|
|
|
$
|
2.0
|
|
|
$
|
4.2
|
|
|
$
|
0.7
|
|
|
$
|
0.5
|
|
|
$
|
14.9
|
|
__________
nm - Not meaningful
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
Segment GAAP to
Non-GAAP Reconciliation and Supplementary Information
|
For the Six Months
Ended June 30, 2023 and 2022
|
(UNAUDITED)
|
(in
millions)
|
|
|
|
Capital
Markets -
Software
Solutions
|
|
|
Capital Markets
-
Compliance and
Communications
Management
|
|
|
Investment
Companies -
Software
Solutions
|
|
|
Investment
Companies -
Compliance and
Communications
Management
|
|
|
Corporate
|
|
|
Consolidated
|
|
For the Six Months
Ended June 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
91.4
|
|
|
$
|
217.0
|
|
|
$
|
54.4
|
|
|
$
|
77.9
|
|
|
$
|
—
|
|
|
$
|
440.7
|
|
Income (loss) from
operations
|
|
|
3.8
|
|
|
|
63.6
|
|
|
|
11.7
|
|
|
|
24.2
|
|
|
|
(32.9)
|
|
|
|
70.4
|
|
Operating margin
%
|
|
|
4.2
|
%
|
|
|
29.3
|
%
|
|
|
21.5
|
%
|
|
|
31.1
|
%
|
|
nm
|
|
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
impairment and other charges, net
|
|
|
3.0
|
|
|
|
4.3
|
|
|
|
0.6
|
|
|
|
—
|
|
|
|
0.8
|
|
|
|
8.7
|
|
Share-based
compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11.0
|
|
|
|
11.0
|
|
Accelerated rent
expense
|
|
|
—
|
|
|
|
0.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.6
|
|
Gain on sale of
long-lived assets
|
|
|
—
|
|
|
|
(0.4)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.4)
|
|
Non-income tax,
net
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.4)
|
|
Total Non-GAAP
adjustments
|
|
|
2.7
|
|
|
|
4.5
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
11.8
|
|
|
|
19.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss)
from operations
|
|
$
|
6.5
|
|
|
$
|
68.1
|
|
|
$
|
12.2
|
|
|
$
|
24.2
|
|
|
$
|
(21.1)
|
|
|
$
|
89.9
|
|
Non-GAAP operating
margin %
|
|
|
7.1
|
%
|
|
|
31.4
|
%
|
|
|
22.4
|
%
|
|
|
31.1
|
%
|
|
nm
|
|
|
|
20.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
14.1
|
|
|
|
3.7
|
|
|
|
6.7
|
|
|
|
2.3
|
|
|
|
—
|
|
|
|
26.8
|
|
Adjusted
EBITDA
|
|
$
|
20.6
|
|
|
$
|
71.8
|
|
|
$
|
18.9
|
|
|
$
|
26.5
|
|
|
$
|
(21.1)
|
|
|
$
|
116.7
|
|
Adjusted EBITDA margin
%
|
|
|
22.5
|
%
|
|
|
33.1
|
%
|
|
|
34.7
|
%
|
|
|
34.0
|
%
|
|
nm
|
|
|
|
26.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
11.8
|
|
|
$
|
3.0
|
|
|
$
|
7.3
|
|
|
$
|
1.0
|
|
|
$
|
0.7
|
|
|
$
|
23.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
91.0
|
|
|
$
|
253.6
|
|
|
$
|
50.4
|
|
|
$
|
82.2
|
|
|
$
|
—
|
|
|
$
|
477.2
|
|
Income (loss) from
operations
|
|
|
7.4
|
|
|
|
89.4
|
|
|
|
12.1
|
|
|
|
21.8
|
|
|
|
(29.5)
|
|
|
|
101.2
|
|
Operating margin
%
|
|
|
8.1
|
%
|
|
|
35.3
|
%
|
|
|
24.0
|
%
|
|
|
26.5
|
%
|
|
nm
|
|
|
|
21.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
impairment and other charges, net
|
|
|
1.0
|
|
|
|
0.4
|
|
|
|
0.1
|
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
2.0
|
|
Share-based
compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9.5
|
|
|
|
9.5
|
|
COVID-19 related
recoveries
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
Gain on sale of
long-lived assets
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
Non-income tax,
net
|
|
|
(0.3)
|
|
|
|
(0.1)
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.5)
|
|
Total Non-GAAP
adjustments
|
|
|
0.7
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
9.8
|
|
|
|
10.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss)
from operations
|
|
$
|
8.1
|
|
|
$
|
89.3
|
|
|
$
|
12.1
|
|
|
$
|
22.0
|
|
|
$
|
(19.7)
|
|
|
$
|
111.8
|
|
Non-GAAP operating
margin %
|
|
|
8.9
|
%
|
|
|
35.2
|
%
|
|
|
24.0
|
%
|
|
|
26.8
|
%
|
|
nm
|
|
|
|
23.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
10.7
|
|
|
|
3.2
|
|
|
|
5.7
|
|
|
|
2.2
|
|
|
|
0.1
|
|
|
|
21.9
|
|
Adjusted
EBITDA
|
|
$
|
18.8
|
|
|
$
|
92.5
|
|
|
$
|
17.8
|
|
|
$
|
24.2
|
|
|
$
|
(19.6)
|
|
|
$
|
133.7
|
|
Adjusted EBITDA margin
%
|
|
|
20.7
|
%
|
|
|
36.5
|
%
|
|
|
35.3
|
%
|
|
|
29.4
|
%
|
|
nm
|
|
|
|
28.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
12.8
|
|
|
$
|
2.7
|
|
|
$
|
7.2
|
|
|
$
|
1.3
|
|
|
$
|
0.8
|
|
|
$
|
24.8
|
|
__________
nm - Not meaningful
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
|
Condensed Consolidated
Statements of Cash Flows
|
|
(UNAUDITED)
|
|
(in
millions)
|
|
|
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
2023
|
|
|
2022
|
|
Operating
Activities
|
|
|
|
|
|
|
Net earnings
|
|
$
|
53.5
|
|
|
$
|
72.4
|
|
Adjustments to
reconcile net earnings to net cash used in operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
26.8
|
|
|
|
21.9
|
|
Provision for expected
losses on accounts receivable
|
|
|
7.7
|
|
|
|
4.2
|
|
Share-based
compensation expense
|
|
|
11.0
|
|
|
|
9.5
|
|
Deferred income
taxes
|
|
|
(5.5)
|
|
|
|
(1.0)
|
|
Net pension plan
income
|
|
|
(0.3)
|
|
|
|
(0.5)
|
|
Gain on investments in
equity securities
|
|
|
(6.9)
|
|
|
|
—
|
|
Amortization of
right-of-use assets
|
|
|
6.7
|
|
|
|
8.0
|
|
Other
|
|
|
0.3
|
|
|
|
0.5
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(86.7)
|
|
|
|
(79.8)
|
|
Prepaid expenses and
other current assets
|
|
|
(2.9)
|
|
|
|
(5.9)
|
|
Accounts
payable
|
|
|
(2.9)
|
|
|
|
22.9
|
|
Income taxes payable
and receivable
|
|
|
0.6
|
|
|
|
4.1
|
|
Accrued liabilities
and other
|
|
|
(23.6)
|
|
|
|
(52.3)
|
|
Operating lease
liabilities
|
|
|
(8.2)
|
|
|
|
(9.7)
|
|
Pension and other
postretirement benefits plans contributions
|
|
|
(0.9)
|
|
|
|
(0.7)
|
|
Net cash used in
operating activities
|
|
|
(31.3)
|
|
|
|
(6.4)
|
|
Investing
Activities
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(23.8)
|
|
|
|
(24.8)
|
|
Proceeds from sales of
investments in equity securities
|
|
|
9.9
|
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(13.9)
|
|
|
|
(24.8)
|
|
Financing
Activities
|
|
|
|
|
|
|
Revolving facility
borrowings
|
|
|
169.0
|
|
|
|
209.0
|
|
Payments on revolving
facility borrowings
|
|
|
(118.5)
|
|
|
|
(99.0)
|
|
Treasury share
repurchases
|
|
|
(20.6)
|
|
|
|
(116.6)
|
|
Proceeds from exercise
of stock options
|
|
|
1.3
|
|
|
|
0.3
|
|
Finance lease
payments
|
|
|
(1.2)
|
|
|
|
(0.9)
|
|
Net cash provided by
(used in) financing activities
|
|
|
30.0
|
|
|
|
(7.2)
|
|
Effect of exchange rate
on cash and cash equivalents
|
|
|
0.4
|
|
|
|
1.7
|
|
Net decrease in cash
and cash equivalents
|
|
|
(14.8)
|
|
|
|
(36.7)
|
|
Cash and cash
equivalents at beginning of year
|
|
|
34.2
|
|
|
|
54.5
|
|
Cash and cash
equivalents at end of period
|
|
$
|
19.4
|
|
|
$
|
17.8
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
Income taxes paid (net
of refunds)
|
|
$
|
20.8
|
|
|
$
|
22.0
|
|
Interest
paid
|
|
$
|
8.7
|
|
|
$
|
2.8
|
|
Non-cash investing
activities:
|
|
|
|
|
|
|
Capitalized software
included in accounts payable
|
|
$
|
5.1
|
|
|
$
|
1.7
|
|
Non-cash consideration
from sale of investment in an equity security
|
|
$
|
2.9
|
|
|
$
|
—
|
|
Additional
Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
20.2
|
|
|
$
|
45.8
|
|
|
$
|
(31.3)
|
|
|
$
|
(6.4)
|
|
Less: capital
expenditures
|
|
|
13.2
|
|
|
|
14.9
|
|
|
|
23.8
|
|
|
|
24.8
|
|
Free Cash
Flow
|
|
$
|
7.0
|
|
|
$
|
30.9
|
|
|
$
|
(55.1)
|
|
|
$
|
(31.2)
|
|
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
|
Reconciliation of
Reported to Organic Net Sales - By Segment
|
|
(UNAUDITED)
|
|
(in
millions)
|
|
|
|
|
|
Capital
Markets -
Software
Solutions
|
|
|
Capital Markets
-
Compliance and
Communications
Management
|
|
|
Investment
Companies -
Software
Solutions
|
|
|
Investment
Companies -
Compliance and
Communications
Management
|
|
|
Consolidated
|
|
Reported Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30, 2023
|
|
$
|
47.7
|
|
|
$
|
122.9
|
|
|
$
|
28.0
|
|
|
$
|
43.5
|
|
|
$
|
242.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30, 2022
|
|
$
|
46.3
|
|
|
$
|
150.0
|
|
|
$
|
25.3
|
|
|
$
|
44.6
|
|
|
$
|
266.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
change
|
|
|
3.0
|
%
|
|
|
(18.1)
|
%
|
|
|
10.7
|
%
|
|
|
(2.5)
|
%
|
|
|
(9.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
non-GAAP information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year impact
of changes in foreign exchange rates
|
|
|
—
|
|
|
|
(0.3)
|
%
|
|
|
—
|
|
|
|
(0.2)
|
%
|
|
|
(0.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year impact
of the EOL disposition
|
|
|
(3.5)
|
%
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net organic sales
change
|
|
|
6.5
|
%
|
|
|
(17.8)
|
%
|
|
|
10.7
|
%
|
|
|
(2.3)
|
%
|
|
|
(8.3)
|
%
|
|
|
|
|
Capital
Markets -
Software
Solutions
|
|
|
Capital Markets
-
Compliance and
Communications
Management
|
|
|
Investment
Companies -
Software
Solutions
|
|
|
Investment
Companies -
Compliance and
Communications
Management
|
|
|
Consolidated
|
|
Reported Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2023
|
|
$
|
91.4
|
|
|
$
|
217.0
|
|
|
$
|
54.4
|
|
|
$
|
77.9
|
|
|
$
|
440.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2022
|
|
$
|
91.0
|
|
|
$
|
253.6
|
|
|
$
|
50.4
|
|
|
$
|
82.2
|
|
|
$
|
477.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
change
|
|
|
0.4
|
%
|
|
|
(14.4)
|
%
|
|
|
7.9
|
%
|
|
|
(5.2)
|
%
|
|
|
(7.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
non-GAAP information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year impact
of changes in foreign exchange rates
|
|
|
(0.4)
|
%
|
|
|
(0.5)
|
%
|
|
|
(0.6)
|
%
|
|
|
(0.1)
|
%
|
|
|
(0.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year impact
of the EOL disposition
|
|
|
(3.5)
|
%
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net organic sales
change
|
|
|
4.3
|
%
|
|
|
(13.9)
|
%
|
|
|
8.5
|
%
|
|
|
(5.1)
|
%
|
|
|
(6.5)
|
%
|
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
|
Reconciliation of
Reported to Organic Net Sales - By Services and Products
|
|
(UNAUDITED)
|
|
(in
millions)
|
|
|
|
|
|
Tech-enabled
Services
|
|
|
Software
Solutions
|
|
|
Print and
Distribution
|
|
|
Consolidated
|
|
Reported Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30, 2023
|
|
$
|
104.5
|
|
|
$
|
75.7
|
|
|
$
|
61.9
|
|
|
$
|
242.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30, 2022
|
|
$
|
133.3
|
|
|
$
|
71.6
|
|
|
$
|
61.3
|
|
|
$
|
266.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
change
|
|
|
(21.6)
|
%
|
|
|
5.7
|
%
|
|
|
1.0
|
%
|
|
|
(9.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
non-GAAP information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year impact
of changes in foreign exchange rates
|
|
|
(0.2)
|
%
|
|
|
—
|
|
|
|
(0.5)
|
%
|
|
|
(0.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year impact
of the EOL disposition
|
|
|
—
|
|
|
|
(2.2)
|
%
|
|
|
—
|
|
|
|
(0.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net organic sales
change
|
|
|
(21.4)
|
%
|
|
|
7.9
|
%
|
|
|
1.5
|
%
|
|
|
(8.3)
|
%
|
|
|
|
|
Tech-enabled
Services
|
|
|
Software
Solutions
|
|
|
Print and
Distribution
|
|
|
Consolidated
|
|
Reported Net
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2023
|
|
$
|
182.9
|
|
|
$
|
145.8
|
|
|
$
|
112.0
|
|
|
$
|
440.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2022
|
|
$
|
225.0
|
|
|
$
|
141.4
|
|
|
$
|
110.8
|
|
|
$
|
477.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
change
|
|
|
(18.7)
|
%
|
|
|
3.1
|
%
|
|
|
1.1
|
%
|
|
|
(7.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
non-GAAP information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year impact
of changes in foreign exchange rates
|
|
|
(0.4)
|
%
|
|
|
(0.5)
|
%
|
|
|
(0.5)
|
%
|
|
|
(0.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year impact
of the EOL disposition
|
|
|
—
|
|
|
|
(2.3)
|
%
|
|
|
—
|
|
|
|
(0.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net organic sales
change
|
|
|
(18.3)
|
%
|
|
|
5.9
|
%
|
|
|
1.6
|
%
|
|
|
(6.5)
|
%
|
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
|
Reconciliation of Net
Earnings to Adjusted EBITDA
|
|
(UNAUDITED)
|
|
(in
millions)
|
|
|
|
|
|
For the Twelve
Months Ended
|
|
|
For the Three Months
Ended
|
|
|
June 30,
2023
|
|
|
June 30,
2023
|
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
|
September 30,
2022
|
|
Net
earnings
|
|
$
|
83.6
|
|
|
$
|
37.7
|
|
|
$
|
15.8
|
|
|
$
|
10.9
|
|
|
$
|
19.2
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
impairment and other charges, net
|
|
|
14.4
|
|
|
|
(2.2)
|
|
|
|
10.9
|
|
|
|
3.1
|
|
|
|
2.6
|
|
Share-based
compensation expense
|
|
|
20.8
|
|
|
|
6.7
|
|
|
|
4.3
|
|
|
|
5.4
|
|
|
|
4.4
|
|
Accelerated rent
expense
|
|
|
1.4
|
|
|
|
0.1
|
|
|
|
0.5
|
|
|
|
0.6
|
|
|
|
0.2
|
|
Loss on sale of a
business
|
|
|
0.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.7
|
|
|
|
—
|
|
Disposition-related
expenses
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
Gain on investments in
equity securities
|
|
|
(7.4)
|
|
|
|
(0.2)
|
|
|
|
(6.7)
|
|
|
|
—
|
|
|
|
(0.5)
|
|
Non-income tax,
net
|
|
|
(0.8)
|
|
|
|
(0.2)
|
|
|
|
(0.2)
|
|
|
|
(0.2)
|
|
|
|
(0.2)
|
|
Gain on sale of
long-lived assets
|
|
|
(0.4)
|
|
|
|
(0.1)
|
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
—
|
|
COVID-19 related
recoveries
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
(0.1)
|
|
Depreciation and
amortization
|
|
|
51.2
|
|
|
|
14.4
|
|
|
|
12.4
|
|
|
|
12.7
|
|
|
|
11.7
|
|
Interest expense,
net
|
|
|
13.7
|
|
|
|
4.6
|
|
|
|
3.5
|
|
|
|
3.3
|
|
|
|
2.3
|
|
Investment and other
income, net
|
|
|
(2.8)
|
|
|
|
(0.1)
|
|
|
|
(0.2)
|
|
|
|
(0.2)
|
|
|
|
(2.3)
|
|
Income tax
expense
|
|
|
27.1
|
|
|
|
13.6
|
|
|
|
2.4
|
|
|
|
3.1
|
|
|
|
8.0
|
|
Total Non-GAAP
adjustments
|
|
|
117.7
|
|
|
|
36.6
|
|
|
|
26.6
|
|
|
|
28.4
|
|
|
|
26.1
|
|
Adjusted
EBITDA
|
|
$
|
201.3
|
|
|
$
|
74.3
|
|
|
$
|
42.4
|
|
|
$
|
39.3
|
|
|
$
|
45.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tech-enabled
services
|
|
$
|
338.8
|
|
|
$
|
104.5
|
|
|
$
|
78.4
|
|
|
$
|
68.5
|
|
|
$
|
87.4
|
|
Software
solutions
|
|
|
284.0
|
|
|
|
75.7
|
|
|
|
70.1
|
|
|
|
68.7
|
|
|
|
69.5
|
|
Print and
distribution
|
|
|
174.3
|
|
|
|
61.9
|
|
|
|
50.1
|
|
|
|
30.5
|
|
|
|
31.8
|
|
Total net
sales
|
|
$
|
797.1
|
|
|
$
|
242.1
|
|
|
$
|
198.6
|
|
|
$
|
167.7
|
|
|
$
|
188.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
%
|
|
|
25.3
|
%
|
|
|
30.7
|
%
|
|
|
21.3
|
%
|
|
|
23.4
|
%
|
|
|
24.0
|
%
|
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
|
Reconciliation of Net
Earnings to Adjusted EBITDA
|
|
(UNAUDITED)
|
|
(in
millions)
|
|
|
|
|
|
For the Twelve
Months Ended
|
|
|
For the Three Months
Ended
|
|
|
|
June 30,
2022
|
|
|
June 30,
2022
|
|
|
March 31,
2022
|
|
|
December 31,
2021
|
|
|
September 30,
2021
|
|
Net
earnings
|
|
$
|
140.2
|
|
|
$
|
46.0
|
|
|
$
|
26.4
|
|
|
$
|
25.6
|
|
|
$
|
42.2
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
impairment and other charges, net
|
|
|
12.0
|
|
|
|
0.2
|
|
|
|
1.8
|
|
|
|
6.7
|
|
|
|
3.3
|
|
Share-based
compensation expense
|
|
|
20.0
|
|
|
|
5.9
|
|
|
|
3.6
|
|
|
|
5.3
|
|
|
|
5.2
|
|
Non-income tax,
net
|
|
|
(1.2)
|
|
|
|
(0.2)
|
|
|
|
(0.3)
|
|
|
|
(0.2)
|
|
|
|
(0.5)
|
|
LSC multiemployer
pension plans obligations
|
|
|
(2.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.3)
|
|
|
|
0.2
|
|
Gain on sale of
long-lived assets, net
|
|
|
(0.9)
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.7)
|
|
Gain on investment in
an equity security
|
|
|
(0.6)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.6)
|
|
COVID-19 related
recoveries
|
|
|
(0.2)
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
42.3
|
|
|
|
11.2
|
|
|
|
10.7
|
|
|
|
10.4
|
|
|
|
10.0
|
|
Interest expense,
net
|
|
|
19.0
|
|
|
|
2.1
|
|
|
|
1.5
|
|
|
|
9.5
|
|
|
|
5.9
|
|
Investment and other
income, net
|
|
|
(2.7)
|
|
|
|
(0.3)
|
|
|
|
(0.2)
|
|
|
|
(1.1)
|
|
|
|
(1.1)
|
|
Income tax
expense
|
|
|
51.7
|
|
|
|
18.1
|
|
|
|
7.6
|
|
|
|
7.4
|
|
|
|
18.6
|
|
Total Non-GAAP
adjustments
|
|
|
137.3
|
|
|
|
36.6
|
|
|
|
24.7
|
|
|
|
35.7
|
|
|
|
40.3
|
|
Adjusted
EBITDA
|
|
$
|
277.5
|
|
|
$
|
82.6
|
|
|
$
|
51.1
|
|
|
$
|
61.3
|
|
|
$
|
82.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tech-enabled
services
|
|
$
|
492.0
|
|
|
$
|
133.3
|
|
|
$
|
91.7
|
|
|
$
|
124.9
|
|
|
$
|
142.1
|
|
Software
solutions
|
|
|
284.5
|
|
|
|
71.6
|
|
|
|
69.8
|
|
|
|
73.8
|
|
|
|
69.3
|
|
Print and
distribution
|
|
|
181.2
|
|
|
|
61.3
|
|
|
|
49.5
|
|
|
|
34.1
|
|
|
|
36.3
|
|
Total net
sales
|
|
$
|
957.7
|
|
|
$
|
266.2
|
|
|
$
|
211.0
|
|
|
$
|
232.8
|
|
|
$
|
247.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
%
|
|
|
29.0
|
%
|
|
|
31.0
|
%
|
|
|
24.2
|
%
|
|
|
26.3
|
%
|
|
|
33.3
|
%
|
Donnelley Financial
Solutions, Inc. and Subsidiaries ("DFIN")
|
|
Debt and Liquidity
Summary
|
|
(UNAUDITED)
|
|
(in
millions)
|
|
|
|
Total
Liquidity
|
|
June 30,
2023
|
|
|
December 31,
2022
|
|
|
June 30,
2022
|
|
Availability
|
|
|
|
|
|
|
|
|
|
Stated amount of the
Revolving Facility (a)
|
|
$
|
300.0
|
|
|
$
|
300.0
|
|
|
$
|
300.0
|
|
Less: availability
reduction from covenants
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Amount available under
the Revolving Facility
|
|
|
300.0
|
|
|
|
300.0
|
|
|
|
300.0
|
|
|
|
|
|
|
|
|
|
|
|
Usage
|
|
|
|
|
|
|
|
|
|
Borrowings under the
Revolving Facility
|
|
|
95.5
|
|
|
|
45.0
|
|
|
|
110.0
|
|
Impact on availability
related to outstanding
letters of credit
|
|
|
1.0
|
|
|
|
—
|
|
|
|
—
|
|
Amount used under the
Revolving Facility
|
|
|
96.5
|
|
|
|
45.0
|
|
|
|
110.0
|
|
|
|
|
|
|
|
|
|
|
|
Availability under the
Revolving Facility
|
|
|
203.5
|
|
|
|
255.0
|
|
|
|
190.0
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
19.4
|
|
|
|
34.2
|
|
|
|
17.8
|
|
|
|
|
|
|
|
|
|
|
|
Net Available
Liquidity
|
|
$
|
222.9
|
|
|
$
|
289.2
|
|
|
$
|
207.8
|
|
|
|
|
|
|
|
|
|
|
|
Term Loan A
Facility
|
|
$
|
125.0
|
|
|
$
|
125.0
|
|
|
$
|
125.0
|
|
Borrowings under the
Revolving Facility
|
|
|
95.5
|
|
|
|
45.0
|
|
|
|
110.0
|
|
Unamortized debt
issuance costs
|
|
|
(0.7)
|
|
|
|
(0.8)
|
|
|
|
(0.9)
|
|
Total debt
|
|
$
|
219.8
|
|
|
$
|
169.2
|
|
|
$
|
234.1
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA for the
twelve months ended June 30, 2023 and 2022, and the year ended
December 31, 2022
|
|
$
|
201.3
|
|
|
$
|
218.3
|
|
|
$
|
277.5
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Gross
Leverage (defined as total debt divided by Adjusted
EBITDA)
|
|
|
1.1x
|
|
|
|
0.8x
|
|
|
|
0.8x
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Debt
(defined as total debt less cash and cash equivalents)
|
|
|
200.4
|
|
|
|
135.0
|
|
|
|
216.3
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net
Leverage (defined as non-GAAP Net Debt divided by Adjusted
EBITDA)
|
|
|
1.0x
|
|
|
|
0.6x
|
|
|
|
0.8x
|
|
__________
(a)
|
The Company has a
$300.0 million senior secured revolving credit facility (the
"Revolving Facility"). The Revolving Facility is subject to a
number of covenants, including a minimum Interest Coverage Ratio
and a maximum Consolidated Net Leverage Ratio, both as defined and
calculated in the credit agreement. As of June 30, 2023, there were
$95.5 million of borrowings outstanding under the Revolving
Facility as well as $2.6 million in outstanding letters of credit
and bank guarantees, of which $1.0 million of the outstanding
letters of credit reduced the availability under the Revolving
Facility. Based on the Company's results of operations for the
twelve months ended June 30, 2023 and existing debt, the Company
would have had the ability to utilize the remaining $203.5 million
of the $300.0 million Revolving Facility and not have been in
violation of the terms of the Revolving Facility
agreement.
|
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SOURCE Donnelley Financial LLC