Part I - Financial Information [Item 1: Condensed Consolidated Financial Statements (unaudited)](index=4&type=section&id=Item%201%3A%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) This section presents the unaudited financial performance for the three months ended March 31, 2024, compared to the same period in 2023, including statements of operations, balance sheets, cash flows, and detailed notes [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales increased to $203.4 million in Q1 2024, with net earnings significantly rising to $33.3 million or $1.09 per diluted share, driven by service and software growth and other operating income Consolidated Statements of Operations (Q1 2024 vs Q1 2023) | (in millions, except per share data) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Total net sales** | **$203.4** | **$198.6** | | Tech-enabled services | $82.9 | $78.4 | | Software solutions | $80.3 | $70.1 | | Print and distribution | $40.2 | $50.1 | | **Income from operations** | **$44.6** | **$14.8** | | **Net earnings** | **$33.3** | **$15.8** | | **Diluted Net earnings per share** | **$1.09** | **$0.52** | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $867.8 million as of March 31, 2024, driven by receivables and cash, while total liabilities rose to $458.9 million due to increased long-term debt Balance Sheet Summary | (in millions) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $268.1 | $208.5 | | **Total assets** | **$867.8** | **$806.9** | | **Total current liabilities** | $179.9 | $201.6 | | **Long-term debt** | $204.5 | $124.5 | | **Total liabilities** | **$458.9** | **$404.7** | | **Total equity** | **$408.9** | **$402.2** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $27.9 million in Q1 2024, while financing activities provided $48.6 million, primarily from borrowings and share repurchases Cash Flow Summary (Q1 2024 vs Q1 2023) | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | **($27.9)** | **($51.5)** | | Net cash provided by (used in) investing activities | $0.2 | ($1.7) | | Net cash provided by financing activities | $48.6 | $47.7 | | **Net increase (decrease) in cash** | **$20.6** | **($5.4)** | | Cash and cash equivalents at end of period | $43.7 | $28.8 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies and financial results, covering revenue disaggregation, a land sale gain, debt structure, and share repurchase activities - On March 29, 2024, the company sold land for net proceeds of **$13.2 million**, recognizing a net pre-tax gain of **$10.6 million**, with **$9.8 million** recorded in Q1 2024[38](index=38&type=chunk) - As of March 31, 2024, the company had **$204.5 million** in total long-term debt, consisting of a **$125.0 million** Term Loan A Facility and **$80.0 million** in borrowings under its Revolving Facility[62](index=62&type=chunk) - In Q1 2024, the company repurchased **139,893 shares** for **$8.8 million** at an average price of **$62.61 per share** under its authorized stock repurchase program[83](index=83&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2024 financial results, business segments, and financial condition, covering revenue drivers, profitability, market impacts, non-GAAP measures, liquidity, and capital resources [Executive Overview](index=24&type=section&id=Executive%20Overview) Q1 2024 net sales increased 2.4% to $203.4 million, while income from operations surged to $44.6 million, driven by transactional volumes, software performance, a land sale gain, and reduced restructuring charges - Net sales for Q1 2024 increased by **$4.8 million (2.4%)** year-over-year, primarily due to higher capital markets transactional volumes and increased Venue volumes and pricing[108](index=108&type=chunk) - Income from operations for Q1 2024 increased by **$29.8 million** year-over-year, benefiting from a net pre-tax gain on a land sale, reduced restructuring charges, higher sales volumes, and a favorable sales mix[109](index=109&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Consolidated net sales reached $203.4 million in Q1 2024, driven by growth in software and tech-enabled services, while operating income benefited from a land sale gain and reduced restructuring charges Net Sales by Offering (Q1 2024 vs Q1 2023) | (in millions) | Q1 2024 | Q1 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Tech-enabled services | $82.9 | $78.4 | $4.5 | 5.7% | | Software solutions | $80.3 | $70.1 | $10.2 | 14.6% | | Print and distribution | $40.2 | $50.1 | ($9.9) | (19.8%) | | **Total net sales** | **$203.4** | **$198.6** | **$4.8** | **2.4%** | - Restructuring charges decreased significantly to **$1.8 million** in Q1 2024 from **$10.9 million** in Q1 2023[112](index=112&type=chunk)[122](index=122&type=chunk) - Other operating income was **$9.8 million** in Q1 2024, primarily from a net pre-tax gain on the sale of land[112](index=112&type=chunk)[123](index=123&type=chunk) [Information by Segment](index=26&type=section&id=Information%20by%20Segment) Segment performance varied, with Capital Markets - Software Solutions showing strong growth and profitability, while Capital Markets - Compliance and Communications improved operating income, and Investment Companies segments faced sales pressure Segment Performance Summary (Q1 2024 vs Q1 2023) | (in millions) | Net Sales Q1 2024 | Net Sales Q1 2023 | Income from Ops Q1 2024 | Income from Ops Q1 2023 | | :--- | :--- | :--- | :--- | :--- | | Capital Markets - Software Solutions | $53.0 | $43.7 | $9.5 | ($0.6) | | Capital Markets - Compliance & Comms | $91.1 | $94.1 | $38.6 | $16.6 | | Investment Companies - Software Solutions | $27.3 | $26.4 | $3.8 | $5.0 | | Investment Companies - Compliance & Comms | $32.0 | $34.4 | $7.1 | $8.1 | [Non-GAAP Measures](index=28&type=section&id=Non-GAAP%20Measures) Adjusted EBITDA, a key non-GAAP measure, significantly increased to **$55.2 million** in Q1 2024, with reconciliation from net earnings including adjustments for restructuring, share-based compensation, and asset sales Reconciliation of Net Earnings to Adjusted EBITDA | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net earnings** | **$33.3** | **$15.8** | | Restructuring, impairment and other charges, net | $1.8 | $10.9 | | Share-based compensation expense | $5.1 | $4.3 | | Gain on sale of long-lived assets | ($9.8) | ($0.3) | | Depreciation and amortization | $13.9 | $12.4 | | Other adjustments | $1.3 | ($4.3) | | **Adjusted EBITDA** | **$55.2** | **$42.4** | [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$43.7 million** in cash and **$219.0 million** available under its Revolving Facility, totaling **$262.7 million** in net available liquidity, with 2024 capital expenditures projected at **$65-70 million** - As of March 31, 2024, the company had net available liquidity of **$262.7 million**, including **$43.7 million** in cash and **$219.0 million** available under its Revolving Facility[164](index=164&type=chunk) - The company expects capital expenditures to be approximately **$65 million to $70 million** for the full year 2024, primarily for software development[157](index=157&type=chunk) - In Q1 2024, the company had net borrowings of **$80.0 million** under its Revolving Facility and used **$30.8 million** for common stock repurchases[159](index=159&type=chunk) [Item 3: Quantitative and Qualitative Disclosure About Market Risk](index=32&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) No significant changes to the company's market risk were reported compared to the Annual Report on Form 10-K for the year ended December 31, 2023 - There have been no significant changes to the Company's market risk disclosed in the Annual Report[169](index=169&type=chunk) [Item 4: Controls and Procedures](index=32&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with a new quote-to-cash (QTC) process being implemented as a significant internal control component - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of March 31, 2024[170](index=170&type=chunk) - The company is currently implementing a new quote-to-cash (QTC) process, including new systems, which is a significant component of its internal control over financial reporting[171](index=171&type=chunk) Part II - Other Information [Item 1: Legal Proceedings](index=33&type=section&id=Item%201%3A%20Legal%20Proceedings) The company refers to Note 7 for litigation details, stating that management believes current legal proceedings will not materially affect its financial position or results - For a discussion of litigation, the report refers to Note 7, Commitments and Contingencies, to the Unaudited Condensed Consolidated Financial Statements[173](index=173&type=chunk) [Item 1A: Risk Factors](index=33&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes to the risk factors identified in the Annual Report on Form 10-K for the year ended December 31, 2023, were reported during Q1 2024 - There were no material changes during the three months ended March 31, 2024 to the risk factors identified in the Annual Report[174](index=174&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **486,256 shares** at an average price of **$64.37** in Q1 2024, with **$141.2 million** remaining available under the stock repurchase program Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Remaining Authorization (in millions) | | :--- | :--- | :--- | :--- | :--- | | Jan 2024 | 23,671 | $61.66 | 21,000 | $148.7 | | Feb 2024 | 28,690 | $63.45 | 28,690 | $146.9 | | Mar 2024 | 433,895 | $64.58 | 90,203 | $141.2 | | **Total** | **486,256** | **$64.37** | **139,893** | **$141.2** | - On November 14, 2023, the Board authorized a new stock repurchase program of up to **$150 million**, effective from January 1, 2024, to December 31, 2025[175](index=175&type=chunk) [Item 3: Defaults Upon Senior Securities](index=33&type=section&id=Item%203%3A%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[177](index=177&type=chunk) [Item 4: Mine Safety Disclosures](index=33&type=section&id=Item%204%3A%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[178](index=178&type=chunk) [Item 5: Other Information](index=33&type=section&id=Item%205%3A%20Other%20Information) On March 27, 2024, CEO Daniel Leib adopted a Rule 10b5-1 trading plan for the potential sale of up to **30,000 shares** of common stock between August 15 and September 30, 2024 - On March 27, 2024, President and CEO Daniel Leib adopted a Rule 10b5-1 trading plan to sell up to **30,000 shares** of common stock[179](index=179&type=chunk) [Item 6: Exhibits](index=34&type=section&id=Item%206%3A%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, a real estate sale agreement amendment, CEO and CFO certifications, and XBRL data files - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL documents (101.INS, 101.SCH, 104)[181](index=181&type=chunk)

Donnelley Financial Solutions, Inc. (NYSE:DFIN) Q1 2024 Earnings Conference Call May 1, 2024 9:00 AM ET Company Participants Mike Zhao - Head, Investor Relations Dan Leib - Chief Executive Officer, Board Member Dave Gardella - Chief Financial Officer Eric Johnson - President of Global Investment Companies Craig Clay - President of Global Capital Markets Conference Call Participants Charles Strauzer - CJS Securities Pete Heckmann - D. A. Davidson Kyle Peterson - Needham Raj Sharma - B. Riley Securities Opera ...

Donnelley Financial Solutions (DFIN) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.98%. A quarter ago, it was expected that this financial communications and data services provider would post earnings of $0.62 per share when it actually produced earnings of $0.61, delivering a su ...

Revenue Growth and Sales Performance - Total net sales increased by 2.4% to $203.4 million in Q1 2024, driven by growth in software solutions and tech-enabled services, partially offset by lower print and distribution net sales[6] - Net sales for Q1 2024 increased to $203.4 million, up from $198.6 million in Q1 2023[26][28] - Total net sales increased to $203.4 million in Q1 2024 from $198.6 million in Q1 2023, reflecting a 2.4% growth[41] - Software solutions net sales reached a record $80.3 million, up 14.6% YoY, accounting for 39.5% of total net sales, an increase of 420 basis points from Q1 2023[6] - Software Solutions segment net sales increased by 14.6% to $80.3 million in Q1 2024, up from $70.1 million in Q1 2023[34] - Software solutions net sales rose to $80.3 million in Q1 2024, a 14.6% increase from $70.1 million in Q1 2023[41] - Tech-enabled Services segment net sales grew by 5.7% to $82.9 million in Q1 2024, compared to $78.4 million in Q1 2023[34] - Tech-enabled services net sales grew to $82.9 million in Q1 2024, up 5.7% from $78.4 million in Q1 2023[41] - Print and Distribution segment net sales declined by 19.8% to $40.2 million in Q1 2024, down from $50.1 million in Q1 2023[34] - Print and distribution net sales declined to $40.2 million in Q1 2024, down 19.8% from $50.1 million in Q1 2023[41] - Net organic sales change for the consolidated company was 2.8% in Q1 2024, driven by growth in Software Solutions and Tech-enabled Services[34] - The eBrevia disposition had a year-over-year impact of $(0.6%) on net sales for Q1 2024[34] - Total net sales for the twelve months ended March 31, 2024 were $802.0 million, down from $821.2 million in 2023[37] - Tech-enabled services revenue for the twelve months ended March 31, 2024 was $341.4 million, down from $367.6 million in 2023[37] - Software solutions revenue for the twelve months ended March 31, 2024 was $302.9 million, up from $279.9 million in 2023[37] - Print and distribution revenue for the twelve months ended March 31, 2024 was $157.7 million, down from $173.7 million in 2023[37] Profitability and Earnings - Net earnings surged 110.8% to $33.3 million, or $1.09 per diluted share, compared to $15.8 million, or $0.52 per diluted share, in Q1 2023[6] - GAAP net income for Q1 2024 was $33.3 million, compared to $15.8 million in Q1 2023[26] - Net earnings for Q1 2024 increased to $33.3 million, up from $15.8 million in Q1 2023, reflecting a significant year-over-year growth[30] - Net earnings more than doubled to $33.3 million in Q1 2024 from $15.8 million in Q1 2023[41] - Diluted earnings per share increased to $1.09 in Q1 2024 from $0.52 in Q1 2023[41] - Net earnings for the twelve months ended March 31, 2024 were $99.7 million, compared to $91.9 million for the same period in 2023[37] Adjusted EBITDA and Margins - Adjusted EBITDA increased by 30.2% to $55.2 million, with Adjusted EBITDA margin expanding to 27.1%, up 580 basis points from Q1 2023[6] - Adjusted EBITDA for Q1 2024 was $55.2 million, compared to $42.4 million in Q1 2023[28] - Adjusted EBITDA for the twelve months ended March 31, 2024 was $220.2 million, up from $209.6 million in 2023[37] - Adjusted EBITDA margin for the twelve months ended March 31, 2024 was 27.5%, up from 25.5% in 2023[37] - Non-GAAP operating margin for Q1 2024 was 20.3%, up from 15.1% in Q1 2023[26] - Gross margin improved to 54.1% in Q1 2024 compared to 48.7% in Q1 2023[41] - Non-GAAP gross margin increased to 60.6% in Q1 2024 from 54.5% in Q1 2023[41] - Operating margin significantly improved to 21.9% in Q1 2024 from 7.5% in Q1 2023[41] Cash Flow and Liquidity - Operating Cash Flow improved by $23.6 million and Free Cash Flow improved by $21.9 million compared to Q1 2023[6] - Net cash used in operating activities for Q1 2024 was $27.9 million, compared to $21.5 million in Q1 2023[30] - Free Cash Flow for Q1 2024 was $(40.2) million, an improvement from $(62.1) million in Q1 2023[31] - Total liquidity as of March 31, 2024 was $262.7 million, compared to $218.3 million as of March 31, 2023[39] Segment Performance - Capital Markets - Compliance and Communications Management segment generated $91.1 million in net sales with a 42.4% operating margin in Q1 2024[28] - Investment Companies - Software Solutions segment reported $27.3 million in net sales with a 13.9% operating margin in Q1 2024[28] - Capital Markets - Software Solutions segment reported a 21.3% increase in net sales to $53.0 million in Q1 2024, up from $43.7 million in Q1 2023[34] - Investment Companies - Compliance and Communications segment saw a 7.0% decline in net sales to $32.0 million in Q1 2024, down from $34.4 million in Q1 2023[34] Share Repurchase and Leverage - The company repurchased 139,893 shares for approximately $8.8 million at an average price of $62.61 per share during Q1 2024[6] - The remaining share repurchase authorization was $141.2 million as of March 31, 2024[6] - Gross leverage stood at 0.9x and net leverage at 0.7x as of March 31, 2024[6] - Non-GAAP Gross Leverage as of March 31, 2024 was 0.9x, down from 1.1x as of March 31, 2023[39] - Non-GAAP Net Leverage as of March 31, 2024 was 0.7x, down from 1.0x as of March 31, 2023[39] Expenses and Other Financial Metrics - Total capital expenditures for Q1 2024 were $12.3 million, up from $10.6 million in Q1 2023[28] - Share-based compensation expense increased to $5.1 million in Q1 2024 from $4.3 million in Q1 2023[26][28] - Depreciation and amortization expenses rose to $13.9 million in Q1 2024 from $12.4 million in Q1 2023[28] - The company recorded a $9.8 million gain on sale of long-lived assets in Q1 2024[26][28] - Effective tax rate rose to 19.6% in Q1 2024 compared to 13.2% in Q1 2023[41] Product and Market Performance - Venue, the virtual dataroom product, grew approximately 43% YoY, contributing to a 16.0% organic growth in software solutions net sales[4] - Capital markets transactional revenue increased by $7 million, or 17%, compared to Q1 2023, reflecting improving market activity[4]

CHICAGO, April 23, 2024 /PRNewswire/ -- Donnelley Financial Solutions (NYSE: DFIN), a leading provider of risk and compliance solutions, today announced it has met another major milestone in advance of the July 24 compliance deadline for the Tailored Shareholder Reports (TSR) rule. DFIN, the provider of industry-leading financial software, successfully test filed a full Form N-CSR based on the new regulatory requirements, including an iXBRL-tagged TSR, via its proprietary SaaS solution ArcReporting® to the ...

CHICAGO, April 17, 2024 /PRNewswire/ -- Donnelley Financial Solutions (NYSE: DFIN) will hold a conference call and webcast on Wednesday, May 1, 2024, at 9:00 a.m. Eastern time to discuss its first-quarter fiscal year 2024 financial results, 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 ...

CHICAGO, April 9, 2024 /PRNewswire/ -- Donnelley Financial Solutions (NYSE: DFIN), a leading provider of risk and compliance solutions, today announced it has met a critical milestone in advance of the July 24 compliance deadline for the Tailored Shareholder Reports (TSR) rule.  DFIN, the provider of industry-leading financial software, successfully test filed a full N-CSR based on the new regulatory requirements, including an iXBRL tagged TSR, to the U.S. Securities and Exchange Commission (SEC) on behalf ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to fin ...

ActiveDisclosure Enables Collaboration; Delivers Audit-Ready ReportsCHICAGO, March 7, 2024 /PRNewswire/ -- Donnelley Financial Solutions (NYSE: DFIN), a leading risk and compliance company, makes complying with the U.S. Securities and Exchange Commission's (SEC) new climate-related disclosure mandate easy and cost-effective. "The SEC's announcement ends the years-long speculation of what will be required of companies when reporting corporate climate impact. DFIN is already helping our clients manage and re ...

Non-GAAP Financial Measures & Forward-Looking Statements - The presentation includes forward-looking statements provided on a non-GAAP basis only, without GAAP reconciliation due to "unreasonable efforts"[3, 4] - DFIN uses non-GAAP financial measures like Adjusted EBITDA, Organic Net Sales to assess financial performance[4] - These non-GAAP measures exclude certain costs, expenses, gains, and losses not indicative of ongoing operations[4] - Free Cash Flow is defined as net cash flow from operating activities less capital expenditures[4] - Organic net sales is reported net sales adjusted for foreign currency changes and the impact of acquisitions and dispositions[4] Consolidated Financial Performance - Consolidated Non-GAAP Adjusted EBITDA for 2023 is $207.4 million [10] - Non-GAAP Adjusted EBITDA Margin % for 2023 is 26%[10] - Consolidated Net Sales for 2023 is $797.2 million[26] - Trailing 4-Quarter % of Net Sales: Software solutions is 37%, Tech-enabled services is 42%, Print and distribution is 21%[11, 28] Segment Performance (2023) - Capital Markets - Software Solutions net sales is $185.9 million[46] - Capital Markets - Compliance & Communications Management net sales is $355.4 million[46] - Investment Companies - Software Solutions net sales is $106.8 million[24] - Investment Companies - Compliance & Communications Management net sales is $149.1 million[24]