Donnelley Financial Solutions(US:DFIN)2022-11-01 16:00Financial Performance - Total net sales for the three months ended September 30, 2022, were $247.7 million, a decrease from $760.5 million for the nine months ended September 30, 2021[17]. - Net earnings for the three months ended September 30, 2022, were $42.2 million, compared to $120.3 million for the nine months ended September 30, 2021[17]. - The company reported a comprehensive income of $18.0 million for the three months ended September 30, 2022, down from $122.1 million for the same period in 2021[19]. - Net earnings for the nine months ended September 30, 2022, were $91.6 million, a decrease of 23.9% compared to $120.3 million for the same period in 2021[27]. - Total net sales for the nine months ended September 30, 2022, were $665.9 million, compared to $394.6 million for the same period in 2021, representing a 68.7% increase[54]. - Total operating segments for the nine months ended September 30, 2022, reported net sales of $665.9 million, compared to $760.5 million for the same period in 2021, a decrease of approximately 12.4%[106]. - Income from operations for the nine months ended September 30, 2022, was $127.9 million, down from $177.9 million in the same period of 2021, reflecting a decline of about 28.1%[106]. Expenses and Costs - The cost of sales for tech-enabled services was $39.6 million for the three months ended September 30, 2021, compared to $113.2 million for the nine months ended September 30, 2021[17]. - Selling, general and administrative expenses were $77.0 million for the three months ended September 30, 2021, down from $225.6 million for the nine months ended September 30, 2021[17]. - The company reported a total cost of sales of $93.1 million for the three months ended September 30, 2022, compared to $320.9 million for the nine months ended September 30, 2021, indicating a reduction of 71.0%[17]. - Income from operations for the three months ended September 30, 2022, was $26.7 million, down from $65.0 million in the same period of 2021, reflecting a decrease of about 58.9%[104]. - Depreciation and amortization increased to $33.6 million from $29.9 million year-over-year, reflecting a rise of 22.8%[27]. Assets and Liabilities - Total assets decreased to $850.8 million as of September 30, 2022, down from $883.3 million at December 31, 2021, representing a decline of approximately 3.0%[23]. - Long-term debt increased to $191.7 million as of September 30, 2022, compared to $124.0 million at December 31, 2021, indicating a rise of 54.5%[23]. - Total liabilities rose to $519.3 million, up from $506.3 million at the end of 2021, marking an increase of 2.9%[23]. - The company’s total assets held for sale included land with a carrying value of $2.6 million, with an agreement to sell for $13.0 million[45]. Cash Flow and Investments - Cash and cash equivalents significantly decreased to $10.8 million at the end of the period, down from $54.5 million at the beginning of the year, reflecting a decline of 80.2%[27]. - The company reported a net cash provided by operating activities of $76.9 million for the nine months ended September 30, 2022, down from $103.2 million in the prior year, a decrease of 25.4%[27]. - Net cash used in investing activities was $39.4 million, compared to $27.3 million in the prior year, indicating a 44.4% increase[27]. - Net cash used in financing activities increased to $83.6 million from $27.5 million, reflecting a significant rise of 203.6%[27]. Shareholder Actions - The company repurchased treasury shares amounting to $150.0 million during the period, compared to $26.5 million in the previous year[27]. - The company repurchased 959,579 shares for $32.3 million at an average price of $33.72 per share during the three months ended September 30, 2022[91]. - The total remaining authorized amount for stock repurchases as of September 30, 2022, was $137.9 million[91]. - The company’s stock repurchase program has been extended through December 31, 2023, with a total remaining repurchase authorization of $150 million[88]. Future Outlook - The company anticipates continued challenges due to the volatility of the global economy and financial markets affecting transactional volume[12]. - The company is focused on maintaining client referrals and attracting additional clients to support future growth[12]. - The company anticipates ongoing demand for its software solutions and services as clients prepare for regulatory changes and compliance requirements[11]. Segment Performance - DFIN's software solutions segment generated $69.3 million in net sales for the three months ended September 30, 2021, compared to $196.2 million for the nine months ended September 30, 2021[17]. - Capital Markets - Compliance and Communications Management segment generated net sales of $83.3 million in Q3 2022, compared to $142.5 million in Q3 2021, indicating a decline of approximately 41.5%[104]. - Investment Companies - Software Solutions segment reported net sales of $23.7 million for Q3 2022, down from $21.2 million in Q3 2021, showing an increase of about 11.8%[104]. - The Investment Companies segment offers software solutions and services to mutual fund companies and other investment entities to ensure compliance with SEC regulations[100].