DFIN Reports First-Quarter 2025 Results
DFIN reported mixed first-quarter 2025 results, with record software solutions net sales of $84.6 million, up 5.4% year-over-year. Total net sales slightly decreased by 1.1% to $201.1 million.
The company achieved net earnings of $31.0 million ($1.05 per diluted share) and Adjusted EBITDA of $68.2 million, marking a significant 23.6% increase. EBITDA margin expanded to 33.9%, up 680 basis points from 2024.
Key highlights include:
- Software solutions reached 42.1% of total sales
- ActiveDisclosure and Arc Suite products grew 16%
- Company maintained strong financial position with 0.8x leverage
- Repurchased 861,301 shares for $41.8 million
- Secured new credit agreement with $115M term loan and $300M revolving facility
Despite market volatility, DFIN's recurring compliance offerings provide stability while the company continues to focus on increasing recurring sales mix and managing costs.
DFIN ha riportato risultati contrastanti nel primo trimestre del 2025, con vendite nette record di soluzioni software pari a 84,6 milioni di dollari, in crescita del 5,4% rispetto all'anno precedente. Le vendite nette totali sono leggermente diminuite dell'1,1%, attestandosi a 201,1 milioni di dollari.
L'azienda ha registrato un utile netto di 31,0 milioni di dollari (1,05 dollari per azione diluita) e un EBITDA rettificato di 68,2 milioni di dollari, con un aumento significativo del 23,6%. Il margine EBITDA è salito al 33,9%, in crescita di 680 punti base rispetto al 2024.
Punti salienti:
- Le soluzioni software hanno rappresentato il 42,1% delle vendite totali
- I prodotti ActiveDisclosure e Arc Suite sono cresciuti del 16%
- L'azienda ha mantenuto una solida posizione finanziaria con un leverage di 0,8x
- Riacquistate 861.301 azioni per 41,8 milioni di dollari
- Stipulato un nuovo accordo di credito con un prestito a termine da 115 milioni e una linea revolving da 300 milioni
Nonostante la volatilità del mercato, le offerte ricorrenti di compliance di DFIN garantiscono stabilità, mentre l’azienda continua a concentrarsi sull’aumento della quota di vendite ricorrenti e sulla gestione dei costi.
DFIN reportó resultados mixtos en el primer trimestre de 2025, con ventas netas récord en soluciones de software de 84,6 millones de dólares, un aumento del 5,4% interanual. Las ventas netas totales disminuyeron ligeramente un 1,1%, alcanzando 201,1 millones de dólares.
La compañía obtuvo ganancias netas de 31,0 millones de dólares (1,05 dólares por acción diluida) y un EBITDA ajustado de 68,2 millones de dólares, lo que representa un aumento significativo del 23,6%. El margen EBITDA se amplió al 33,9%, 680 puntos básicos más que en 2024.
Puntos destacados:
- Las soluciones de software representaron el 42,1% de las ventas totales
- Los productos ActiveDisclosure y Arc Suite crecieron un 16%
- La empresa mantuvo una sólida posición financiera con un apalancamiento de 0,8x
- Se recompraron 861.301 acciones por 41,8 millones de dólares
- Se aseguró un nuevo acuerdo de crédito con un préstamo a plazo de 115 millones y una línea revolvente de 300 millones
A pesar de la volatilidad del mercado, las ofertas recurrentes de cumplimiento de DFIN brindan estabilidad mientras la empresa continúa enfocándose en aumentar la proporción de ventas recurrentes y en gestionar los costos.
DFIN은 2025년 1분기에 혼조된 실적을 보고했으며, 소프트웨어 솔루션 순매출은 전년 대비 5.4% 증가한 8,460만 달러로 사상 최고치를 기록했습니다. 전체 순매출은 2억 110만 달러로 1.1% 소폭 감소했습니다.
회사는 3,100만 달러(희석 주당 1.05달러)의 순이익과 6,820만 달러의 조정 EBITDA를 달성했으며, 이는 23.6%의 큰 증가를 나타냅니다. EBITDA 마진은 33.9%로 2024년 대비 680 베이시스 포인트 상승했습니다.
주요 내용은 다음과 같습니다:
- 소프트웨어 솔루션이 총 매출의 42.1% 차지
- ActiveDisclosure 및 Arc Suite 제품 매출 16% 성장
- 0.8배 레버리지로 견고한 재무 상태 유지
- 861,301주를 4,180만 달러에 자사주 매입
- 1억 1,500만 달러의 기한부 대출과 3억 달러의 리볼빙 시설을 포함한 신규 신용 계약 체결
시장 변동성에도 불구하고, DFIN의 반복적인 컴플라이언스 제공은 안정성을 제공하며, 회사는 반복 매출 비중 확대와 비용 관리에 계속 집중하고 있습니다.
DFIN a annoncé des résultats mitigés pour le premier trimestre 2025, avec des ventes nettes record de solutions logicielles atteignant 84,6 millions de dollars, en hausse de 5,4 % sur un an. Les ventes nettes totales ont légèrement diminué de 1,1 %, s'établissant à 201,1 millions de dollars.
La société a réalisé un bénéfice net de 31,0 millions de dollars (1,05 dollar par action diluée) et un EBITDA ajusté de 68,2 millions de dollars, soit une augmentation significative de 23,6 %. La marge EBITDA s'est élargie à 33,9 %, en hausse de 680 points de base par rapport à 2024.
Points clés :
- Les solutions logicielles ont représenté 42,1 % des ventes totales
- Les produits ActiveDisclosure et Arc Suite ont connu une croissance de 16 %
- L'entreprise a maintenu une solide position financière avec un effet de levier de 0,8x
- Rachat de 861 301 actions pour 41,8 millions de dollars
- Nouveau contrat de crédit avec un prêt à terme de 115 millions et une facilité de crédit renouvelable de 300 millions
Malgré la volatilité du marché, les offres récurrentes de conformité de DFIN assurent une stabilité, tandis que la société continue de se concentrer sur l'augmentation de la part des ventes récurrentes et la gestion des coûts.
DFIN meldete gemischte Ergebnisse für das erste Quartal 2025, mit einem Rekordumsatz von 84,6 Millionen US-Dollar im Bereich Softwarelösungen, was einem Anstieg von 5,4 % im Jahresvergleich entspricht. Der Gesamtumsatz ging leicht um 1,1 % auf 201,1 Millionen US-Dollar zurück.
Das Unternehmen erzielte einen Nettogewinn von 31,0 Millionen US-Dollar (1,05 US-Dollar je verwässerter Aktie) und ein bereinigtes EBITDA von 68,2 Millionen US-Dollar, was einem deutlichen Anstieg von 23,6 % entspricht. Die EBITDA-Marge stieg auf 33,9 %, ein Plus von 680 Basispunkten gegenüber 2024.
Wichtige Highlights:
- Softwarelösungen machten 42,1 % des Gesamtumsatzes aus
- Die Produkte ActiveDisclosure und Arc Suite wuchsen um 16 %
- Das Unternehmen hielt eine starke Finanzlage mit einem Verschuldungsgrad von 0,8x
- Es wurden 861.301 Aktien für 41,8 Millionen US-Dollar zurückgekauft
- Neuer Kreditvertrag mit einem Terminkredit von 115 Mio. USD und einer revolvierenden Kreditlinie von 300 Mio. USD abgeschlossen
Trotz der Marktschwankungen bieten die wiederkehrenden Compliance-Angebote von DFIN Stabilität, während das Unternehmen weiterhin darauf abzielt, den Anteil wiederkehrender Umsätze zu erhöhen und die Kosten zu kontrollieren.
- Record Q1 software solutions sales of $84.6M, up 5.8% organically
- Software solutions now 42.1% of total sales, up from 39.5% YoY
- Adjusted EBITDA increased 23.6% to $68.2M
- Strong EBITDA margin expansion of 680 basis points to 33.9%
- Recurring compliance software products grew 16%
- Low leverage ratios at 0.8x
- New $415M credit facility secured with extended maturity to 2030
- Total net sales decreased 1.1% to $201.1M
- Net earnings declined to $31M from $33.3M YoY
- EPS dropped to $1.05 from $1.09 YoY
- Venue sales declined due to overlap with large projects from previous year
- Weak capital markets transaction activity continues
Insights
DFIN delivers impressive margin expansion as software transition drives profitability despite slight revenue decline.
DFIN's Q1 2025 results showcase excellent execution of their software-focused transformation strategy. The company achieved record first-quarter software solutions net sales of
The standout metric is Adjusted EBITDA of
The company's recurring compliance software products, ActiveDisclosure and Arc Suite, grew approximately
DFIN's balance sheet remains robust with gross and net leverage both at 0.8x. The company demonstrated confidence by repurchasing 861,301 shares for approximately
While management noted that market activity for capital markets transactions remains weak, the company's strategic positioning toward recurring software revenue provides stability amid challenging market conditions.
Highlights for the first quarter of 2025:
- Record first-quarter software solutions net sales of
$84.6 million 5.4% , or5.8% on an organic basis(a), from the first quarter of 2024; Software solutions net sales accounted for42.1% of total net sales, up from39.5% in the first quarter of 2024. - Total net sales of
$201.1 million $2.3 million 1.1% (a decrease of0.8% on an organic basis), from the first quarter of 2024. - Net earnings of
$31.0 million $1.05 $33.3 million $1.09 - Adjusted EBITDA(a) of
$68.2 million $13.0 million 23.6% , from the first quarter of 2024; Adjusted EBITDA margin(a) of33.9% , up approximately 680 basis points from the first quarter of 2024. - Gross leverage(a) of 0.8x and net leverage(a) of 0.8x as of March 31, 2025.
- The Company amended and restated its credit agreement to provide for a
$115 million $300 million $125 million - The Company repurchased 861,301 shares for approximately
$41.8 million $48.57 $49.5 million
(a) Adjusted EBITDA, Adjusted EBITDA margin, organic net sales, gross leverage and net leverage 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 performance in the first quarter. Our focused execution, combined with aggressive cost management actions, resulted in strong quarterly Adjusted EBITDA and Adjusted EBITDA margin. We delivered
Leib continued, "During the first quarter, we continued to execute our strategy to expand the adoption of our software solutions offerings. Total software solutions net sales increased
"Entering the second quarter, despite the recent volatility in market and macroeconomic conditions, our strong mix of recurring compliance offerings provides a stable foundation to execute our strategy. Moving forward, our focus areas remain unchanged – invest to increase our recurring sales mix, aggressively manage our cost structure, and allocate capital in a disciplined manner – all aimed at delivering increased shareholder value. While market activity for capital markets transactions remains weak, our portfolio of market-leading offerings and deep domain and service expertise position us well when transactional market activity strengthens," Leib concluded.
Net Sales
Net sales in the first quarter of 2025 were
Net Earnings
For the first quarter of 2025, net earnings were
Adjusted EBITDA and Non-GAAP Net Earnings
For the first quarter of 2025, Adjusted EBITDA was
For the first quarter of 2025, non-GAAP net earnings were
Reconciliations of reported net sales to organic net sales and consolidated 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 first quarter of 2025, 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 April 30, 2025, 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 April 30, 2025, at 9:00 a.m. Eastern time to discuss financial results for the first quarter of 2025, 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 provider of innovative software and technology-enabled financial regulatory and compliance solutions. 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 X (formerly 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 earnings before income taxes, 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 earnings before income taxes, 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, 2024, 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) | ||||||||
March 31, 2025 | December 31, 2024 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 16.2 | $ | 57.3 | ||||
Receivables, less allowances for expected losses of | 198.2 | 138.0 | ||||||
Prepaid expenses and other current assets | 28.5 | 37.2 | ||||||
Total current assets | 242.9 | 232.5 | ||||||
Property, plant and equipment, net | 8.1 | 8.9 | ||||||
Operating lease right-of-use assets | 11.1 | 12.3 | ||||||
Software, net | 97.4 | 96.5 | ||||||
Goodwill | 405.4 | 405.4 | ||||||
Deferred income taxes, net | 56.9 | 56.4 | ||||||
Other noncurrent assets | 31.0 | 29.6 | ||||||
Total assets | $ | 852.8 | $ | 841.6 | ||||
Liabilities | ||||||||
Accounts payable | $ | 38.4 | $ | 28.7 | ||||
Current portion of long-term debt | 5.8 | — | ||||||
Operating lease liabilities | 10.1 | 10.3 | ||||||
Accrued liabilities | 141.5 | 185.1 | ||||||
Total current liabilities | 195.8 | 224.1 | ||||||
Long-term debt | 183.7 | 124.7 | ||||||
Deferred compensation liabilities | 11.1 | 12.2 | ||||||
Pension and other postretirement benefits plans liabilities | 23.1 | 23.3 | ||||||
Noncurrent operating lease liabilities | 4.3 | 6.4 | ||||||
Other noncurrent liabilities | 14.9 | 14.8 | ||||||
Total liabilities | 432.9 | 405.5 | ||||||
Equity | ||||||||
Preferred stock, | ||||||||
Authorized: 1.0 shares; Issued: None | — | — | ||||||
Common stock, | ||||||||
Authorized: 65.0 shares; | ||||||||
Issued and outstanding: 39.5 shares and 28.2 shares in 2025 (2024 - 38.9 shares and 28.7 shares) | 0.4 | 0.4 | ||||||
Treasury stock, at cost: 11.3 shares in 2025 (2024 - 10.2 shares) | (398.4) | (344.1) | ||||||
Additional paid-in capital | 339.7 | 333.2 | ||||||
Retained earnings | 559.5 | 528.5 | ||||||
Accumulated other comprehensive loss | (81.3) | (81.9) | ||||||
Total equity | 419.9 | 436.1 | ||||||
Total liabilities and equity | $ | 852.8 | $ | 841.6 | ||||
Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(UNAUDITED) | ||||||||
(in millions, except per share data) | ||||||||
Three Months Ended March 31, | ||||||||
2025 | 2024 | |||||||
Net sales | ||||||||
Software solutions | $ | 84.6 | $ | 80.3 | ||||
Tech-enabled services | 76.5 | 82.9 | ||||||
Print and distribution | 40.0 | 40.2 | ||||||
Total net sales | 201.1 | 203.4 | ||||||
Cost of sales (a) | ||||||||
Software solutions | 27.6 | 27.3 | ||||||
Tech-enabled services | 27.3 | 30.6 | ||||||
Print and distribution | 18.1 | 22.2 | ||||||
Total cost of sales | 73.0 | 80.1 | ||||||
Selling, general and administrative expenses (a) | 65.8 | 72.8 | ||||||
Depreciation and amortization | 14.1 | 13.9 | ||||||
Restructuring, impairment and other charges, net | 2.9 | 1.8 | ||||||
Other operating income, net | (0.5) | (9.8) | ||||||
Income from operations | 45.8 | 44.6 | ||||||
Interest expense, net | 3.1 | 3.6 | ||||||
Investment and other loss (income), net | 0.5 | (0.4) | ||||||
Earnings before income taxes | 42.2 | 41.4 | ||||||
Income tax expense | 11.2 | 8.1 | ||||||
Net earnings | $ | 31.0 | $ | 33.3 | ||||
Net earnings per share: | ||||||||
Basic | $ | 1.08 | $ | 1.14 | ||||
Diluted | $ | 1.05 | $ | 1.09 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 28.7 | 29.3 | ||||||
Diluted | 29.5 | 30.5 | ||||||
__________ | |
(a) | Exclusive of depreciation and amortization. |
Three Months Ended March 31, | ||||||||
Components of depreciation and amortization: | 2025 | 2024 | ||||||
Cost of sales | $ | 13.7 | $ | 13.3 | ||||
Selling, general and administrative expenses | 0.4 | 0.6 | ||||||
Total depreciation and amortization | $ | 14.1 | $ | 13.9 | ||||
Additional information: | ||||||||
Gross profit (b) | $ | 114.4 | $ | 110.0 | ||||
Exclude: Depreciation and amortization | 13.7 | 13.3 | ||||||
Non-GAAP gross profit | $ | 128.1 | $ | 123.3 | ||||
Gross margin (b) | 56.9 | % | 54.1 | % | ||||
Non-GAAP gross margin | 63.7 | % | 60.6 | % | ||||
SG&A as a % of total net sales (a) | 32.7 | % | 35.8 | % | ||||
Operating margin | 22.8 | % | 21.9 | % | ||||
Effective tax rate | 26.5 | % | 19.6 | % | ||||
__________ | |
(b) | Inclusive of depreciation and amortization. |
Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") | |||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||
For the Three Months Ended March 31, 2025 | |||||||||||||||||||||||
Gross profit | SG&A (a) | Income (loss) | Operating | Net | Net | ||||||||||||||||||
GAAP basis measures | $ | 114.4 | $ | 65.8 | $ | 45.8 | 22.8 | % | $ | 31.0 | $ | 1.05 | |||||||||||
Exclude: Depreciation and amortization | 13.7 | ||||||||||||||||||||||
Non-GAAP measures | 128.1 | ||||||||||||||||||||||
Non-GAAP % of total net sales | 63.7 | % | |||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Restructuring, impairment and other charges, net | — | — | 2.9 | 1.4 | % | 2.1 | 0.07 | ||||||||||||||||
Share-based compensation expense | — | (6.0) | 6.0 | 3.0 | % | 3.8 | 0.13 | ||||||||||||||||
Gain on sale of long-lived assets | — | — | (0.5) | (0.2) | % | (0.4) | (0.01) | ||||||||||||||||
Non-income tax, net | — | 0.1 | (0.1) | — | — | — | |||||||||||||||||
Loss on debt extinguishment (b) | — | — | — | — | 0.1 | — | |||||||||||||||||
Total Non-GAAP adjustments (c) | — | (5.9) | 8.3 | 4.1 | % | 5.6 | 0.19 | ||||||||||||||||
Adjusted Non-GAAP measures (c) | $ | 128.1 | $ | 59.9 | $ | 54.1 | 26.9 | % | $ | 36.6 | $ | 1.24 | |||||||||||
Adjusted Non-GAAP % of total net sales | 63.7 | % | 29.8 | % | |||||||||||||||||||
For the Three Months Ended March 31, 2024 | |||||||||||||||||||||||
Gross profit | SG&A (a) | Income (loss) | Operating | Net | Net | ||||||||||||||||||
GAAP basis measures | $ | 110.0 | $ | 72.8 | $ | 44.6 | 21.9 | % | $ | 33.3 | $ | 1.09 | |||||||||||
Exclude: Depreciation and amortization | 13.3 | ||||||||||||||||||||||
Non-GAAP measures | 123.3 | ||||||||||||||||||||||
Non-GAAP % of total net sales | 60.6 | % | |||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Restructuring, impairment and other charges, net | — | — | 1.8 | 0.9 | % | 1.3 | 0.04 | ||||||||||||||||
Share-based compensation expense | — | (5.1) | 5.1 | 2.5 | % | 0.6 | 0.02 | ||||||||||||||||
Gain on sale of long-lived assets | — | — | (9.8) | (4.8) | % | (7.0) | (0.23) | ||||||||||||||||
Non-income tax, net | — | 0.4 | (0.4) | (0.2) | % | (0.3) | (0.01) | ||||||||||||||||
Gain on investments in equity securities (d) | — | — | — | — | (0.1) | — | |||||||||||||||||
Total Non-GAAP adjustments (c) | — | (4.7) | (3.3) | (1.6) | % | (5.5) | (0.18) | ||||||||||||||||
Adjusted Non-GAAP measures (c) | $ | 123.3 | $ | 68.1 | $ | 41.3 | 20.3 | % | $ | 27.8 | $ | 0.91 | |||||||||||
Adjusted Non-GAAP % of total net sales | 60.6 | % | 33.5 | % | |||||||||||||||||||
__________ | |
(a) | Exclusive of depreciation and amortization. |
(b) | Loss on debt extinguishment is included in interest expense, net on the Company's Unaudited Condensed Consolidated Statements of Operations. |
(c) | Totals may not foot due to rounding. |
(d) | Gain on investments in equity securities is included in investment and other loss (income), net on the Company's Unaudited Condensed Consolidated Statements of Operations. |
Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") | ||||||||||||||||||||||||
Segment Adjusted EBITDA and Supplementary Information | ||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Capital | Capital Markets - | Investment | Investment | Corporate | Consolidated (a) | |||||||||||||||||||
For the Three Months Ended March 31, 2025 | ||||||||||||||||||||||||
Net sales | $ | 51.9 | $ | 83.9 | $ | 32.7 | $ | 32.6 | $ | — | $ | 201.1 | ||||||||||||
Adjusted EBITDA | $ | 13.9 | $ | 36.7 | $ | 12.8 | $ | 12.2 | $ | (7.4) | $ | 68.2 | ||||||||||||
Adjusted EBITDA margin % | 26.8 | % | 43.7 | % | 39.1 | % | 37.4 | % | nm | 33.9 | % | |||||||||||||
Depreciation and amortization | $ | 7.0 | $ | 1.4 | $ | 4.8 | $ | 0.9 | $ | — | $ | 14.1 | ||||||||||||
Capital expenditures | $ | 6.2 | $ | 2.0 | $ | 4.5 | $ | 0.5 | $ | 0.1 | $ | 13.3 | ||||||||||||
For the Three Months Ended March 31, 2024 | ||||||||||||||||||||||||
Net sales | $ | 53.0 | $ | 91.1 | $ | 27.3 | $ | 32.0 | $ | — | $ | 203.4 | ||||||||||||
Adjusted EBITDA | $ | 15.8 | $ | 31.4 | $ | 8.0 | $ | 8.2 | $ | (8.2) | $ | 55.2 | ||||||||||||
Adjusted EBITDA margin % | 29.8 | % | 34.5 | % | 29.3 | % | 25.6 | % | nm | 27.1 | % | |||||||||||||
Depreciation and amortization | $ | 6.5 | $ | 2.1 | $ | 4.2 | $ | 1.1 | $ | — | $ | 13.9 | ||||||||||||
Capital expenditures | $ | 3.7 | $ | 1.9 | $ | 5.1 | $ | 1.1 | $ | 0.5 | $ | 12.3 | ||||||||||||
__________ | |
(a) | Reconciliation of consolidated Adjusted EBITDA to net earnings is presented below. |
nm - | Not meaningful. |
Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(UNAUDITED) | ||||||||
(in millions) | ||||||||
For the Three Months Ended March 31, | ||||||||
2025 | 2024 | |||||||
Operating Activities | ||||||||
Net earnings | $ | 31.0 | $ | 33.3 | ||||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||||||||
Depreciation and amortization | 14.1 | 13.9 | ||||||
Provision for expected losses on accounts receivable | 1.8 | 4.5 | ||||||
Share-based compensation expense | 6.0 | 5.1 | ||||||
Deferred income taxes | (0.5) | (1.4) | ||||||
Net pension plan expense (income) | 0.5 | (0.3) | ||||||
Gain on sales of long-lived assets | (0.5) | (9.8) | ||||||
Amortization of operating lease right-of-use assets | 1.7 | 2.3 | ||||||
Other | 0.7 | 0.2 | ||||||
Changes in operating assets and liabilities: | ||||||||
Receivables, net | (61.8) | (47.2) | ||||||
Prepaid expenses and other current assets | 1.6 | (6.4) | ||||||
Accounts payable | 9.1 | 6.4 | ||||||
Income taxes payable and receivable | 8.6 | 7.5 | ||||||
Accrued liabilities and other | (46.8) | (31.9) | ||||||
Operating lease liabilities | (2.7) | (3.7) | ||||||
Pension and other postretirement benefits plans contributions | (0.5) | (0.4) | ||||||
Net cash used in operating activities | (37.7) | (27.9) | ||||||
Investing Activities | ||||||||
Capital expenditures | (13.3) | (12.3) | ||||||
Proceeds from sale of long-lived assets | — | 12.4 | ||||||
Proceeds from sales of investments in equity securities | — | 0.1 | ||||||
Net cash (used in) provided by investing activities | (13.3) | 0.2 | ||||||
Financing Activities | ||||||||
Revolving facility borrowings | 143.5 | 138.5 | ||||||
Payments on revolving facility borrowings | (68.5) | (58.5) | ||||||
Payments on long-term debt | (125.0) | — | ||||||
Proceeds from issuance of long-term debt | 115.0 | — | ||||||
Debt issuance costs | (2.2) | — | ||||||
Treasury share repurchases | (53.0) | (30.8) | ||||||
Cash received for common stock issuances | 0.6 | — | ||||||
Finance lease payments | (0.9) | (0.6) | ||||||
Net cash provided by financing activities | 9.5 | 48.6 | ||||||
Effect of exchange rate on cash and cash equivalents | 0.4 | (0.3) | ||||||
Net (decrease) increase in cash and cash equivalents | (41.1) | 20.6 | ||||||
Cash and cash equivalents at beginning of year | 57.3 | 23.1 | ||||||
Cash and cash equivalents at end of period | $ | 16.2 | $ | 43.7 | ||||
Supplemental cash flow information: | ||||||||
Income taxes paid, net of refunds | $ | 3.0 | $ | 1.9 | ||||
Interest paid | $ | 1.9 | $ | 2.8 | ||||
Non-cash investing activities: | ||||||||
Capitalized software included in accounts payable | $ | 0.5 | $ | 3.8 | ||||
Additional Information: | ||||||||
For the Three Months Ended March 31, | ||||||||
2025 | 2024 | |||||||
Net cash used in operating activities | $ | (37.7) | $ | (27.9) | ||||
Less: capital expenditures | 13.3 | 12.3 | ||||||
Free Cash Flow | $ | (51.0) | $ | (40.2) | ||||
Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") | ||||||||||||||||||||
Reconciliation of Reported to Organic Net Sales - By Segment and by Services and Products | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Capital | Capital Markets - | Investment | Investment | Consolidated | ||||||||||||||||
Reported Net Sales: | ||||||||||||||||||||
For the Three Months Ended March 31, 2025 | $ | 51.9 | $ | 83.9 | $ | 32.7 | $ | 32.6 | $ | 201.1 | ||||||||||
For the Three Months Ended March 31, 2024 | $ | 53.0 | $ | 91.1 | $ | 27.3 | $ | 32.0 | $ | 203.4 | ||||||||||
Net sales change | (2.1) | % | (7.9) | % | 19.8 | % | 1.9 | % | (1.1) | % | ||||||||||
Supplementary non-GAAP information: | ||||||||||||||||||||
Year-over-year impact of changes in foreign exchange rates | (0.4) | % | (0.3) | % | (0.4) | % | (0.3) | % | (0.3) | % | ||||||||||
Net organic sales change | (1.7) | % | (7.6) | % | 20.2 | % | 2.2 | % | (0.8) | % | ||||||||||
Software Solutions | Tech-enabled | Print and | Consolidated | |||||||||||||
Reported Net Sales: | ||||||||||||||||
For the Three Months Ended March 31, 2025 | $ | 84.6 | $ | 76.5 | $ | 40.0 | $ | 201.1 | ||||||||
For the Three Months Ended March 31, 2024 | $ | 80.3 | $ | 82.9 | $ | 40.2 | $ | 203.4 | ||||||||
Net sales change | 5.4 | % | (7.7) | % | (0.5) | % | (1.1) | % | ||||||||
Supplementary non-GAAP information: | ||||||||||||||||
Year-over-year impact of changes in foreign exchange rates | (0.4) | % | (0.4) | % | (0.2) | % | (0.3) | % | ||||||||
Net organic sales change | 5.8 | % | (7.3) | % | (0.3) | % | (0.8) | % | ||||||||
Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") | ||||||||||||||||||||
Reconciliation of Net Earnings to Adjusted EBITDA | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
For the Twelve | For the Three Months Ended | |||||||||||||||||||
March 31, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||||||||
Net earnings | $ | 90.1 | $ | 31.0 | $ | 6.3 | $ | 8.7 | $ | 44.1 | ||||||||||
Adjustments | ||||||||||||||||||||
Restructuring, impairment and other charges, net | 7.7 | 2.9 | 2.1 | 1.4 | 1.3 | |||||||||||||||
Share-based compensation expense | 26.1 | 6.0 | 6.0 | 6.7 | 7.4 | |||||||||||||||
Non-income tax, net | (0.8) | (0.1) | (0.1) | (0.3) | (0.3) | |||||||||||||||
Gain on sale of long-lived assets | (0.5) | (0.5) | — | — | — | |||||||||||||||
Gain on sale of a business | (0.4) | — | (0.4) | — | — | |||||||||||||||
Gain on investments in equity securities | (0.3) | — | — | — | (0.3) | |||||||||||||||
Depreciation and amortization | 60.4 | 14.1 | 14.8 | 17.2 | 14.3 | |||||||||||||||
Interest expense, net | 12.4 | 3.1 | 2.5 | 3.1 | 3.7 | |||||||||||||||
Investment and other (income) loss, net | (0.2) | 0.5 | (0.3) | (0.3) | (0.1) | |||||||||||||||
Income tax expense | 35.8 | 11.2 | 0.8 | 6.7 | 17.1 | |||||||||||||||
Total Non-GAAP adjustments | 140.2 | 37.2 | 25.4 | 34.5 | 43.1 | |||||||||||||||
Adjusted EBITDA | $ | 230.3 | $ | 68.2 | $ | 31.7 | $ | 43.2 | $ | 87.2 | ||||||||||
Software solutions | $ | 334.0 | $ | 84.6 | $ | 81.6 | $ | 82.2 | $ | 85.6 | ||||||||||
Tech-enabled services | 314.4 | 76.5 | 60.5 | 75.2 | 102.2 | |||||||||||||||
Print and distribution | 131.2 | 40.0 | 14.2 | 22.1 | 54.9 | |||||||||||||||
Total net sales | $ | 779.6 | $ | 201.1 | $ | 156.3 | $ | 179.5 | $ | 242.7 | ||||||||||
Adjusted EBITDA margin % | 29.5 | % | 33.9 | % | 20.3 | % | 24.1 | % | 35.9 | % | ||||||||||
For the Twelve | For the Three Months Ended | |||||||||||||||||||
March 31, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||||||||
Net earnings | $ | 99.7 | $ | 33.3 | $ | 10.6 | $ | 18.1 | $ | 37.7 | ||||||||||
Adjustments | ||||||||||||||||||||
Restructuring, impairment and other charges, net | 0.7 | 1.8 | 1.4 | (0.3) | (2.2) | |||||||||||||||
Share-based compensation expense | 23.3 | 5.1 | 5.4 | 6.1 | 6.7 | |||||||||||||||
Loss on sale of a business | 6.1 | — | 6.1 | — | — | |||||||||||||||
Accelerated rent expense | 3.2 | — | 3.1 | — | 0.1 | |||||||||||||||
Disposition-related expenses | 0.3 | — | 0.3 | — | — | |||||||||||||||
Gain on sale of long-lived assets | (10.3) | (9.8) | (0.2) | (0.2) | (0.1) | |||||||||||||||
Non-income tax, net | (1.1) | (0.4) | (0.1) | (0.4) | (0.2) | |||||||||||||||
Gain on investments in equity securities | (0.4) | (0.1) | (0.1) | — | (0.2) | |||||||||||||||
Depreciation and amortization | 58.2 | 13.9 | 15.5 | 14.4 | 14.4 | |||||||||||||||
Interest expense, net | 15.9 | 3.6 | 3.6 | 4.1 | 4.6 | |||||||||||||||
Investment and other income, net | (0.9) | (0.3) | (0.4) | (0.1) | (0.1) | |||||||||||||||
Income tax expense (benefit) | 25.5 | 8.1 | (3.9) | 7.7 | 13.6 | |||||||||||||||
Total Non-GAAP adjustments | 120.5 | 21.9 | 30.7 | 31.3 | 36.6 | |||||||||||||||
Adjusted EBITDA | $ | 220.2 | $ | 55.2 | $ | 41.3 | $ | 49.4 | $ | 74.3 | ||||||||||
Software solutions | $ | 302.9 | $ | 80.3 | $ | 73.7 | $ | 73.2 | $ | 75.7 | ||||||||||
Tech-enabled services | 341.4 | 82.9 | 73.6 | 80.4 | 104.5 | |||||||||||||||
Print and distribution | 157.7 | 40.2 | 29.2 | 26.4 | 61.9 | |||||||||||||||
Total net sales | $ | 802.0 | $ | 203.4 | $ | 176.5 | $ | 180.0 | $ | 242.1 | ||||||||||
Adjusted EBITDA margin % | 27.5 | % | 27.1 | % | 23.4 | % | 27.4 | % | 30.7 | % | ||||||||||
Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") | ||||||||||||
Debt and Liquidity Summary | ||||||||||||
(UNAUDITED) | ||||||||||||
(in millions) | ||||||||||||
Total Liquidity | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||
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 | 75.0 | — | 80.0 | |||||||||
Impact on availability related to outstanding | 1.0 | 1.0 | 1.0 | |||||||||
Amount used under the Revolving Facility | 76.0 | 1.0 | 81.0 | |||||||||
Availability under the Revolving Facility | 224.0 | 299.0 | 219.0 | |||||||||
Cash and cash equivalents | 16.2 | 57.3 | 43.7 | |||||||||
Net Available Liquidity | $ | 240.2 | $ | 356.3 | $ | 262.7 | ||||||
Term Loan A Facility | $ | 115.0 | $ | 125.0 | $ | 125.0 | ||||||
Borrowings under the Revolving Facility | 75.0 | — | 80.0 | |||||||||
Unamortized debt issuance costs | (0.5) | (0.3) | (0.5) | |||||||||
Total debt | 189.5 | 124.7 | 204.5 | |||||||||
Less: current portion of long-term debt | 5.8 | — | — | |||||||||
Long-term debt | $ | 183.7 | $ | 124.7 | $ | 204.5 | ||||||
Adjusted EBITDA for the twelve months ended March 31, 2025 and 2024, and the year ended December 31, 2024 | $ | 230.3 | $ | 217.3 | $ | 220.2 | ||||||
Non-GAAP Gross Leverage (defined as total debt divided by Adjusted EBITDA) | 0.8 | x | 0.6 | x | 0.9 | x | ||||||
Non-GAAP Net Debt (defined as total debt less cash and cash equivalents) | 173.3 | 67.4 | 160.8 | |||||||||
Non-GAAP Net Leverage (defined as non-GAAP Net Debt divided by Adjusted EBITDA) | 0.8 | x | 0.3 | x | 0.7 | x | ||||||
__________ | |
(a) | The Company has a |
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SOURCE Donnelley Financial LLC
FAQ
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