DONNELLEY FINANCIAL SOLUTIONS, INC. Supplemental Trending Schedules
May 2024
DFINsolutions.com
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Forward Looking Statements and Use of Non-GAAP Financial Measures
USE OF FORWARD-LOOKING STATEMENTS
This presentation 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, 2023, 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.
Forward looking statements in this presentation are provided on a non-GAAP basis only, without providing a reconciliation to a GAAP basis. Information is presented in this manner, consistent with SEC rules, because the preparation of such a reconciliation could not be accomplished without "unreasonable efforts." The Company does not have access to certain information that would be necessary to provide such a reconciliation, including non- recurring items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, restructuring charges, impairment charges, spinoff-related transaction expenses, acquisition-related expenses, gains or losses on investments and business disposals and other similar gains or losses not reflective of the Company's ongoing operations. The Company does not believe that this information is likely to be significant to an assessment of the Company's ongoing operations, given that it is not an indicator of business performance.
NON-GAAP FINANCIAL INFORMATION
This presentation 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, COVID-19 recoveries, third-party pension plan obligations and charges, 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, contingent consideration, 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 acquisitions and 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.
Certain components of the guidance given herein are provided on a non-GAAP basis only, without providing a reconciliation to guidance provided on a GAAP basis. Information is presented in this manner, consistent with SEC rules, because the preparation of such a reconciliation could not be accomplished without "unreasonable efforts." The Company does not have access to certain information that would be necessary to provide such a reconciliation, including non-recurring items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, restructuring charges, impairment charges, spinoff-related transaction expenses, acquisition-related expenses, gains or losses on investments and business disposals and other similar gains or losses not reflective of the Company's ongoing operations. The Company does not believe that this information is likely to be significant to an assessment of the Company's ongoing operations, given that it is not an indicator of business performance.
Reconciliations of GAAP to non-GAAP measures can be found in the appendix | 1 |
Capital Markets Trending Schedule
2019 1 | 2020 | 2021 | 2022 | 2023 | 2024 | Q1 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$M USD | Annual | Annual | Q1 | Q2 | Q3 | Q4 | Annual | Q1 | Q2 | Q3 | Q4 | Annual | Q1 | Q2 | Q3 | Q4 | Annual | Q1 | TTM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software Solutions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Venue | $ | 70.8 | $ | 72.3 | $ | 21.3 | $ | 25.2 | $ | 29.0 | $ | 29.9 | 105.3 | $ | 23.7 | $ | 25.2 | $ | 25.7 | $ | 24.2 | 98.9 | $ | 23.5 | $ | 27.4 | $ | 27.9 | $ | 30.5 | $ | 109.4 | $ | 33.7 | $ | 119.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
ActiveDisclosure5 | 45.0 | 50.3 | 14.9 | 15.8 | 16.4 | 17.6 | 64.8 | 18.6 | 18.3 | 17.3 | 17.2 | 71.3 | 19.0 | 19.4 | 17.5 | 16.8 | 72.7 | 19.3 | 73.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All other software solutions2 | 10.9 | 10.6 | 2.3 | 2.8 | 2.7 | 3.1 | 10.9 | 2.4 | 2.8 | 2.8 | 2.0 | 10.0 | 1.2 | 0.9 | 1.1 | 0.7 | 3.8 | - | 2.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Software Solutions Net Sales | $ | 126.7 | $ | 133.2 | $ | 38.5 | $ | 43.8 | $ | 48.1 | $ | 50.6 | $ | 181.0 | $ | 44.7 | $ | 46.3 | $ | 45.8 | $ | 43.4 | $ | 180.2 | $ | 43.7 | $ | 47.7 | $ | 46.5 | $ | 48.0 | $ | 185.9 | $ | 53.0 | $ | 195.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Venue growth % | NA | 2% | 31% | 50% | 53% | 48% | 46% | 11% | 0% | -11% | -19% | -6% | -1% | 9% | 9% | 26% | 11% | 43% | 21% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ActiveDisclosure and File 16 growth % | NA | 12% | 19% | 26% | 28% | 40% | 29% | 25% | 16% | 5% | -2% | 10% | 2% | 6% | 1% | -2% | 2% | 2% | 2% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All other software solutions growth % | NA | -3% | -4% | 12% | 13% | -6% | 3% | 4% | 0% | 4% | -35% | -8% | -50% | -68% | -61% | -65% | -62% | -100% | -69% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Software Solutions growth % | 6% | 5% | 23% | 38% | 41% | 40% | 36% | 16% | 6% | -5% | -14% | 0% | -2% | 3% | 2% | 11% | 3% | 21% | 9% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Organic Sales change % 4 | NA | 5% | 23% | 36% | 41% | 40% | 35% | 16% | 7% | -4% | -11% | 1% | 2% | 7% | 4% | 12% | 6% | 24% | 12% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA3 | $ | 23.6 | $ | 26.5 | $ | 10.3 | $ | 12.7 | $ | 11.7 | $ | 11.8 | $ | 46.5 | $ | 10.0 | $ | 8.8 | $ | 10.3 | $ | 9.2 | $ | 38.3 | $ | 7.4 | $ | 13.2 | $ | 11.9 | $ | 12.7 | $ | 45.2 | $ | 15.8 | $ | 53.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA Margin % 3 | 19% | 20% | 27% | 29% | 24% | 23% | 26% | 22% | 19% | 22% | 21% | 21% | 17% | 28% | 26% | 26% | 24% | 30% | 27% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compliance & Communications Management (CCM) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactional | $ | 249.9 | $ | 281.7 | $ | 90.2 | $ | 94.6 | $ | 113.8 | $ | 105.9 | $ | 404.5 | $ | 51.3 | $ | 73.6 | $ | 57.9 | $ | 54.3 | $ | 237.1 | $ | 40.9 | $ | 45.5 | $ | 49.1 | $ | 49.6 | $ | 185.2 | $ | 48.0 | $ | 192.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Compliance | 139.8 | 142.3 | 48.3 | 58.5 | 28.7 | 21.5 | 157.0 | 52.3 | 76.4 | 25.4 | 19.1 | 173.2 | 53.2 | 77.4 | 21.0 | 18.7 | 170.3 | 43.1 | 160.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total CCM Net Sales | $ | 389.7 | $ | 424.0 | $ | 138.5 | $ | 153.1 | $ | 142.5 | $ | 127.4 | $ | 561.5 | $ | 103.6 | $ | 150.0 | $ | 83.3 | $ | 73.4 | $ | 410.3 | $ | 94.1 | $ | 122.9 | $ | 70.1 | $ | 68.3 | $ | 355.4 | $ | 91.1 | $ | 352.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactional growth % | NA | 13% | 94% | 39% | 49% | 17% | 44% | -43% | -22% | -49% | -49% | -41% | -20% | -38% | -15% | -9% | -22% | 17% | -15% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compliance growth % | NA | 2% | -8% | 11% | 47% | 22% | 10% | 8% | 31% | -11% | -11% | 10% | 2% | 1% | -17% | -2% | -2% | -19% | -8% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total CCM growth % | -11% | 9% | 40% | 27% | 48% | 18% | 32% | -25% | -2% | -42% | -42% | -27% | -9% | -18% | -16% | -7% | -13% | -3% | -12% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Organic Sales change % 4 | NA | 9% | 39% | 25% | 48% | 18% | 32% | -25% | -1% | -41% | -42% | -26% | -8% | -18% | -16% | -7% | -13% | -3% | -12% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Net Sales Breakout | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tech-enabled services | $ | 269.0 | $ | 314.4 | $ | 96.0 | $ | 113.8 | $ | 122.5 | $ | 110.8 | $ | 443.1 | $ | 71.1 | $ | 110.9 | $ | 66.8 | $ | 56.3 | $ | 305.1 | $ | 60.7 | $ | 84.0 | $ | 60.7 | $ | 59.5 | $ | 264.9 | $ | 66.0 | $ | 270.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Print and Distribution | 120.7 | 109.6 | 42.5 | 39.3 | 20.0 | 16.6 | 118.4 | 32.5 | 39.1 | 16.5 | 17.1 | 105.2 | 33.4 | 38.9 | 9.4 | 8.8 | 90.5 | 25.1 | 82.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total CCM Net Sales | $ | 389.7 | $ | 424.0 | $ | 138.5 | $ | 153.1 | $ | 142.5 | $ | 127.4 | $ | 561.5 | $ | 103.6 | $ | 150.0 | $ | 83.3 | $ | 73.4 | $ | 410.3 | $ | 94.1 | $ | 122.9 | $ | 70.1 | $ | 68.3 | $ | 355.4 | $ | 91.1 | $ | 352.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Tech-enabled services growth % | -7% | 17% | 66% | 29% | 56% | 23% | 41% | -26% | -3% | -45% | -49% | -31% | -15% | -24% | -9% | 6% | -13% | 9% | -8% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Print and distribution growth % | -20% | -9% | 3% | 19% | 14% | -8% | 8% | -24% | -1% | -18% | 3% | -11% | 3% | -1% | -43% | -49% | -14% | -25% | -23% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total CCM growth % | -11% | 9% | 40% | 27% | 48% | 18% | 32% | -25% | -2% | -42% | -42% | -27% | -9% | -18% | -16% | -7% | -13% | -3% | -12% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA3 | $ | 107.6 | $ | 156.8 | $ | 60.4 | $ | 66.5 | $ | 71.9 | $ | 52.8 | $ | 251.6 | $ | 30.7 | $ | 61.8 | $ | 25.5 | $ | 23.4 | $ | 141.4 | $ | 26.9 | $ | 44.9 | $ | 26.6 | $ | 21.0 | $ | 119.4 | $ | 31.4 | $ | 123.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA Margin % 3 | 28% | 37% | 44% | 43% | 50% | 41% | 45% | 30% | 41% | 31% | 32% | 34% | 29% | 37% | 38% | 31% | 34% | 34% | 35% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital Markets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital Markets Net Sales | $ | 516.4 | $ | 557.2 | $ | 177.0 | $ | 196.9 | $ | 190.6 | $ | 178.0 | $ | 742.5 | $ | 148.3 | $ | 196.3 | $ | 129.1 | $ | 116.8 | $ | 590.5 | $ | 137.8 | $ | 170.6 | $ | 116.6 | $ | 116.3 | $ | 541.3 | $ | 144.1 | $ | 547.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital Markets growth % | -8% | 8% | 36% | 29% | 46% | 24% | 33% | -16% | 0% | -32% | -34% | -20% | -7% | -13% | -10% | 0% | -8% | 5% | -6% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA3 | $ | 131.2 | $ | 183.3 | $ | 70.7 | $ | 79.2 | $ | 83.6 | $ | 64.6 | $ | 298.1 | $ | 40.7 | $ | 70.6 | $ | 35.8 | $ | 32.6 | $ | 179.7 | $ | 34.3 | $ | 58.1 | $ | 38.5 | $ | 33.7 | $ | 164.6 | $ | 47.2 | $ | 177.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA Margin % 3 | 25% | 33% | 40% | 40% | 44% | 36% | 40% | 27% | 36% | 28% | 28% | 30% | 25% | 34% | 33% | 29% | 30% | 33% | 32% |
- Due to the impact of new business segmentation introduced in 2020, annual reported and organic year-over-year growth rates on a product-level are not available
- Includes eBrevia and EdgarOnline. EdgarOnline was sold in Q4 of 2022, eBrevia was sold in Q4 of 2023.
- Refer to Appendix for GAAP to non-GAAP reconciliations
4. | Net Organic Sales change removes the year-over-year impact of changes in foreign exchange rates, the impact of the 2022 disposition of EdgarOnline, and the impact of the 2023 disposition of eBrevia | 2 |
5. | Includes ActiveDisclosure and File 16 software net sales; File 16 has been integrated into ActiveDisclosure offering |
Totals in schedule may not foot due to rounding
Investment Companies Trending Schedule
2019 1 | 2020 | 2021 | 2022 | 2023 | 2024 | Q1 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$M USD | Annual | Annual | Q1 | Q2 | Q3 | Q4 | Annual | Q1 | Q2 | Q3 | Q4 | Annual | Q1 | Q2 | Q3 | Q4 | Annual | Q1 | TTM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software Solutions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arc Suite | $ | 62.6 | $ | 67.0 | $ | 21.8 | $ | 22.8 | $ | 21.2 | $ | 23.2 | $ | 89.0 | $ | 25.1 | $ | 25.3 | $ | 23.7 | $ | 25.3 | $ | 99.4 | $ | 26.4 | $ | 28.0 | $ | 26.7 | $ | 25.7 | $ | 106.8 | $ | 27.3 | $ | 107.7 | ||||||||||||||||||||||||||||||||||||||||||||
Total Software Solutions growth % | 6% | 7% | 35% | 44% | 25% | 28% | 33% | 15% | 11% | 12% | 9% | 12% | 5% | 11% | 13% | 2% | 7% | 3% | 7% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Organic Sales change % 4 | NA | 7% | 34% | 41% | 25% | 28% | 32% | 16% | 13% | 14% | 11% | 13% | 6% | 11% | 11% | 1% | 7% | 3% | 6% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA3 | $ | 5.5 | $ | 14.4 | $ | 5.6 | $ | 6.7 | $ | 4.3 | $ | 4.7 | $ | 21.3 | $ | 9.2 | $ | 8.6 | $ | 7.0 | $ | 9.3 | $ | 34.1 | $ | 8.2 | $ | 10.7 | $ | 9.9 | $ | 8.1 | $ | 36.9 | $ | 8.0 | $ | 36.7 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA Margin % 3 | 9% | 21% | 26% | 29% | 20% | 20% | 24% | 37% | 34% | 30% | 37% | 34% | 31% | 38% | 37% | 32% | 35% | 29% | 34% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compliance & Communications Management (CCM) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactional | $ | 12.7 | $ | 13.8 | $ | 3.6 | $ | 1.7 | $ | 4.6 | $ | 1.6 | $ | 11.4 | $ | 2.1 | $ | 2.2 | $ | 1.9 | $ | 2.6 | $ | 8.8 | $ | 1.7 | $ | 1.9 | $ | 3.3 | $ | 9.5 | $ | 16.4 | $ | 1.3 | $ | 16.0 | ||||||||||||||||||||||||||||||||||||||||||||
Compliance and Other2 | 283.0 | 256.5 | 42.9 | 46.2 | 31.3 | 30.0 | 150.4 | 35.5 | 42.4 | 34.0 | 23.0 | 134.9 | 32.7 | 41.6 | 33.4 | 25.0 | 132.7 | 30.7 | 130.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total CCM net sales | $ | 295.7 | $ | 270.3 | $ | 46.5 | $ | 47.8 | $ | 35.9 | $ | 31.6 | $ | 161.8 | $ | 37.6 | $ | 44.6 | $ | 35.9 | $ | 25.6 | $ | 143.7 | $ | 34.4 | $ | 43.5 | $ | 36.7 | $ | 34.5 | $ | 149.1 | $ | 32.0 | $ | 146.7 | ||||||||||||||||||||||||||||||||||||||||||||
Transactional growth % | NA | 9% | 9% | -71% | 156% | -43% | -17% | -42% | 29% | -59% | 63% | -23% | -19% | -14% | 74% | 265% | 86% | -24% | 90% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compliance growth % | NA | -9% | -40% | -42% | -48% | -34% | -41% | -17% | -8% | 9% | -23% | -10% | -8% | -2% | -2% | 9% | -2% | -6% | -1% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total CCM growth % | -2% | -9% | -37% | -44% | -42% | -34% | -40% | -19% | -7% | 0% | -19% | -11% | -9% | -2% | 2% | 35% | 4% | -7% | 4% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Organic Sales change % 4 | NA | -9% | -37% | -44% | -43% | -34% | -40% | -19% | -7% | 0% | -19% | -11% | -9% | -2% | 2% | 35% | 4% | -7% | 5% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Net Sales Breakout | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tech-enabled services | $ | 95.7 | $ | 94.8 | $ | 22.5 | $ | 20.2 | $ | 19.6 | $ | 14.1 | $ | 76.4 | $ | 20.6 | $ | 22.4 | $ | 20.6 | $ | 12.2 | $ | 75.8 | $ | 17.7 | $ | 20.5 | $ | 19.7 | $ | 14.1 | $ | 72.0 | $ | 16.9 | $ | 71.2 | ||||||||||||||||||||||||||||||||||||||||||||
Print and distribution | 200.0 | 175.5 | 24.0 | 27.6 | 16.3 | 17.5 | 85.4 | 17.0 | 22.2 | 15.3 | 13.4 | 67.9 | 16.7 | 23.0 | 17.0 | 20.4 | 77.1 | 15.1 | 75.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total CCM Net Sales | $ | 295.7 | $ | 270.3 | $ | 46.5 | $ | 47.8 | $ | 35.9 | $ | 31.6 | $ | 161.8 | $ | 37.6 | $ | 44.6 | $ | 35.9 | $ | 25.6 | $ | 143.7 | $ | 34.4 | $ | 43.5 | $ | 36.7 | $ | 34.5 | $ | 149.1 | $ | 32.0 | $ | 146.7 | ||||||||||||||||||||||||||||||||||||||||||||
Tech-enabled services growth % | -12% | -1% | -6% | -27% | -24% | -19% | -19% | -8% | 11% | 5% | -13% | -1% | -14% | -8% | -4% | 16% | -5% | -5% | -2% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Print and distribution growth % | 3% | -12% | -52% | -52% | -55% | -43% | -51% | -29% | -20% | -6% | -23% | -20% | -2% | 4% | 11% | 52% | 14% | -10% | 12% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total CCM growth % | -2% | -9% | -37% | -44% | -42% | -34% | -40% | -19% | -7% | 0% | -19% | -11% | -9% | -2% | 2% | 35% | 4% | -7% | 4% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA3 | $ | 20.6 | $ | 16.0 | $ | 7.3 | $ | 5.2 | $ | 3.5 | $ | 5.0 | $ | 21.0 | $ | 9.6 | $ | 14.6 | $ | 12.1 | $ | 5.5 | $ | 41.8 | $ | 9.4 | $ | 17.1 | $ | 12.5 | $ | 10.4 | $ | 49.4 | $ | 8.2 | $ | 48.2 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA Margin % 3 | 7% | 6% | 16% | 11% | 10% | 16% | 13% | 26% | 33% | 34% | 21% | 29% | 27% | 39% | 34% | 30% | 33% | 26% | 33% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Investment Companies | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Investment Companies Net Sales | $ | 358.3 | $ | 337.3 | $ | 68.3 | $ | 70.6 | $ | 57.1 | $ | 54.8 | $ | 250.8 | $ | 62.7 | $ | 69.9 | $ | 59.6 | $ | 50.9 | $ | 243.1 | $ | 60.8 | $ | 71.5 | $ | 63.4 | $ | 60.2 | $ | 255.9 | $ | 59.3 | $ | 254.4 | ||||||||||||||||||||||||||||||||||||||||||||
Total Investment Companies growth % | -1% | -6% | -24% | -30% | -28% | -17% | -26% | -8% | -1% | 4% | -7% | -3% | -3% | 2% | 6% | 18% | 5% | -2% | 5% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA3 | $ | 26.1 | $ | 30.4 | $ | 12.9 | $ | 11.9 | $ | 7.8 | $ | 9.7 | $ | 42.3 | $ | 18.8 | $ | 23.2 | $ | 19.1 | $ | 14.8 | $ | 75.9 | $ | 17.6 | $ | 27.8 | $ | 22.4 | $ | 18.5 | $ | 86.3 | $ | 16.2 | $ | 84.9 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Adj. EBITDA Margin % 3 | 7% | 9% | 19% | 17% | 14% | 18% | 17% | 30% | 33% | 32% | 29% | 31% | 29% | 39% | 35% | 31% | 34% | 27% | 33% |
- Due to the impact of new business segmentation introduced in 2020, annual reported and organic year-over-year growth rates on a product-level are not available
- n/a
- Refer to Appendix for GAAP to non-GAAP reconciliations
4. | Net Organic Sales change removes the year-over-year impact of changes in foreign exchange rates | 3 |
Totals in schedule may not foot due to rounding
Consolidated DFIN Trending Schedule | ||||||||||||||||||||||||||||||||||||||
2019 1 | 2020 | 2021 | 2022 | 2023 | 2024 | Q1 2024 | ||||||||||||||||||||||||||||||||
$M USD | Annual | Annual | Q1 | Q2 | Q3 | Q4 | Annual | Q1 | Q2 | Q3 | Q4 | Annual | Q1 | Q2 | Q3 | Q4 | Annual | Q1 | TTM | |||||||||||||||||||
Consolidated DFIN | ||||||||||||||||||||||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||||||||||||||||
Software Solutions | $ | 189.3 | $ | 200.2 | $ | 60.3 | $ | 66.6 | $ | 69.3 | $ | 73.8 | $ | 270.0 | $ | 69.8 | $ | 71.6 | $ | 69.5 | $ | 68.7 | $ | 279.6 | $ | 70.1 | $ | 75.7 | $ | 73.2 | $ | 73.7 | $ | 292.7 | $ | 80.3 | $ | 302.9 |
Total Software Solutions growth % | 6% | 6% | 27% | 40% | 36% | 36% | 35% | 16% | 8% | 0% | -7% | 4% | 0% | 6% | 5% | 7% | 5% | 15% | 8% | |||||||||||||||||||
Net Organic Software Sales Change % 4 | NA | NA | NA | NA | NA | NA | NA | 16% | 9% | 2% | -4% | 5% | 4% | 8% | 7% | 8% | 7% | 16% | 10% | |||||||||||||||||||
Tech-Enabled Services | $ | 364.7 | $ | 409.2 | $ | 118.5 | $ | 134.0 | $ | 142.1 | $ | 124.9 | $ | 519.5 | $ | 91.7 | $ | 133.3 | $ | 87.4 | $ | 68.5 | $ | 380.9 | $ | 78.4 | $ | 104.5 | $ | 80.4 | $ | 73.6 | $ | 336.9 | $ | 82.9 | $ | 341.4 |
Tech-Enabled Services growth % | NA | 12% | 45% | 16% | 36% | 16% | 27% | -23% | -1% | -38% | -45% | -27% | -15% | -22% | -8% | 7% | -12% | 6% | -7% | |||||||||||||||||||
Print and Distribution | $ | 320.7 | $ | 285.1 | $ | 66.5 | $ | 66.9 | $ | 36.3 | $ | 34.1 | $ | 203.8 | $ | 49.5 | $ | 61.3 | $ | 31.8 | $ | 30.5 | $ | 173.1 | $ | 50.1 | $ | 61.9 | $ | 26.4 | $ | 29.2 | $ | 167.6 | $ | 40.2 | $ | 157.7 |
Print and Distribution growth % | NA | -11% | -27% | -26% | -33% | -30% | -29% | -26% | -8% | -12% | -11% | -15% | 1% | 1% | -17% | -4% | -3% | -20% | -9% | |||||||||||||||||||
Consolidated Net Sales | $ | 874.7 | $ | 894.5 | $ | 245.3 | $ | 267.5 | $ | 247.7 | $ | 232.8 | $ | 993.3 | $ | 211.0 | $ | 266.2 | $ | 188.7 | $ | 167.7 | $ | 833.6 | $ | 198.6 | $ | 242.1 | $ | 180.0 | $ | 176.5 | $ | 797.2 | $ | 203.4 | $ | 802.0 |
Consolidated Net Sales growth % | NA | 2% | 11% | 5% | 18% | 11% | 11% | -14% | 0% | -24% | -28% | -16% | -6% | -9% | -5% | 5% | -4% | 2% | -2% | |||||||||||||||||||
Net Organic Sales Change % 4 | NA | 2% | 10% | 4% | 18% | 11% | 10% | -14% | 0% | -23% | -27% | -15% | -4% | -8% | -4% | 5% | -4% | 3% | -2% | |||||||||||||||||||
Consolidated Non-GAAP Adj. EBITDA2,3 | $ | 137.0 | $ | 173.4 | $ | 71.1 | $ | 79.9 | $ | 82.5 | $ | 61.3 | $ | 294.8 | $ | 51.1 | $ | 82.6 | $ | 45.3 | $ | 39.3 | $ | 218.3 | $ | 42.4 | $ | 74.3 | $ | 49.4 | $ | 41.3 | $ | 207.4 | $ | 55.2 | $ | 220.2 |
Non-GAAP Adj. EBITDA Margin % 2,3 | 16% | 19% | 29% | 30% | 33% | 26% | 30% | 24% | 31% | 24% | 23% | 26% | 21% | 31% | 27% | 23% | 26% | 27% | 27% | |||||||||||||||||||
Non-GAAP Adj. EBITDA Growth% 2,3 | NA | 27% | 136% | 31% | 73% | 76% | 70% | -28% | 3% | -45% | -36% | -26% | -17% | -10% | 9% | 5% | -5% | 30% | 5% | |||||||||||||||||||
$550 | Trailing 4-Quarter Net Sales | |||||||||||||||||||||||||||||||||||||
$500 | ||||||||||||||||||||||||||||||||||||||
$450 | ||||||||||||||||||||||||||||||||||||||
USD | $400 | Q124 Trailing 4-Quarter % of Net Sales | ||||||||||||||||||||||||||||||||||||
$350 | Software Solutions | 38% | ||||||||||||||||||||||||||||||||||||
$M | ||||||||||||||||||||||||||||||||||||||
$300 | Tech-enabled services | 42% | ||||||||||||||||||||||||||||||||||||
$250 | Print and distribution | 20% | ||||||||||||||||||||||||||||||||||||
$200 | ||||||||||||||||||||||||||||||||||||||
$150 |
Software solutions | Tech-enabled services | Print and distribution | ||
- Due to the impact of new business segmentation introduced in 2020, annual reported and organic year-over-year growth rates on a product-level are not available
- Includes eBrevia and EdgarOnline. EdgarOnline was sold in Q4 of 2022, eBrevia was sold in Q4 of 2023.
- Refer to Appendix for GAAP to non-GAAP reconciliations
4. | Net Organic Sales change removes the year-over-year impact of changes in foreign exchange rates, the impact of the 2022 disposition of EdgarOnline, and the impact of the 2023 disposition of eBrevia | 4 |
5. | Includes unallocated Corporate segment EBITDA |
Totals in schedule may not foot due to rounding
Appendix
Appendix
5
Segment Financial Information
Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN")
Segment GAAP to Non-GAAP Reconciliation and Supplementary Information
For the Twelve Months Ended December 31, 2023 and 2022
(UNAUDITED) (in millions)
For the Twelve Months Ended
December 31, 2023
Net sales
Income (loss) from operations Operating margin %
Non-GAAPAdjustmentsRestructuring, impairment and other charges, net
Share-based compensation expense Loss on sale of a business Accelerated rent expense Disposition-related expenses Non-income tax, net
Gain on sale of long-lived assets
Total Non-GAAP adjustments
Non-GAAP income (loss) from operations
Non-GAAP operating margin %
Capital | Capital Markets - | Investment | Investment | ||||||||
Companies - | |||||||||||
Markets - | Compliance and | Companies - | Compliance and | ||||||||
Software | Communications | Software | Communications | ||||||||
Solutions | Management | Solutions | Management | Corporate | Consolidated | ||||||
$ | 185.9 | $ | 355.4 | $ | 106.8 | $ | 149.1 | $ | - | $ | 797.2 |
6.8 | 103.9 | 22.1 | 44.7 | (67.5) | 110.0 | ||||||
3.7% | 29.2% | 20.7% | 30.0% | nm | 13.8% |
2.7 | 5.3 | 0.6 | 0.1 | 1.1 | 9.8 |
- | - | - | - | 22.5 | 22.5 |
6.1 | - | - | - | - | 6.1 |
0.4 | 3.1 | 0.2 | - | - | 3.7 |
- | - | - | - | 0.3 | 0.3 |
(0.6) | (0.1) | (0.2) | - | - | (0.9) |
- | (0.8) | - | - | - | (0.8) |
8.6 | 7.5 | 0.6 | 0.1 | 23.9 | 40.7 |
$ | 15.4 | $ | 111.4 | $ | 22.7 | $ | 44.8 | $ | (43.6) | $ | 150.7 |
8.3% | 31.3% | 21.3% | 30.0% | nm | 18.9% |
Depreciation and amortization | 29.8 | 8.0 | 14.2 | 4.6 | 0.1 | 56.7 | |||||||
Adjusted EBITDA | $ | 45.2 | $ | 119.4 | $ | 36.9 | $ | 49.4 | $ | (43.5) | $ | 207.4 | |
Adjusted EBITDA margin % | 24.3% | 33.6% | 34.6% | 33.1% | nm | 26.0% | |||||||
Capital expenditures | $ | 31.5 | $ | 7.4 | $ | 18.8 | $ | 1.8 | $ | 2.3 | $ | 61.8 | |
For the Twelve Months Ended | |||||||||||||
December 31, 2022 | |||||||||||||
Net sales | $ | 180.2 | $ | 410.3 | $ | 99.4 | $ | 143.7 | $ | - | $ | 833.6 | |
Income (loss) from operations | 13.5 | 131.4 | 21.9 | 35.7 | (57.5) | 145.0 | |||||||
Operating margin % | 7.5% | 32.0% | 22.0% | 24.8% | nm | 17.4% | |||||||
Non-GAAP Adjustments | |||||||||||||
Restructuring, impairment and other | 1.5 | 3.7 | 0.5 | 1.4 | 0.6 | 7.7 | |||||||
charges, net | |||||||||||||
Share-based compensation expense | - | - | - | - | 19.3 | 19.3 | |||||||
Accelerated rent expense | 0.2 | 0.4 | - | 0.1 | 0.1 | 0.8 | |||||||
Loss on sale of a business | 0.7 | - | - | - | - | 0.7 | |||||||
Disposition-related expenses | - | - | - | - | 0.1 | 0.1 | |||||||
Non-income tax, net | (0.6) | (0.1) | (0.2) | - | - | (0.9) | |||||||
COVID-19 related recoveries | - | (0.5) | - | - | - | (0.5) | |||||||
Gain on sale of long-lived assets | - | (0.2) | - | - | - | (0.2) | |||||||
Total Non-GAAP adjustments | 1.8 | 3.3 | 0.3 | 1.5 | 20.1 | 27.0 | |||||||
Non-GAAP income (loss) from | $ | 15.3 | $ | 134.7 | $ | 22.2 | $ | 37.2 | $ | (37.4) | $ | 172.0 | |
operations | |||||||||||||
Non-GAAP operating margin % | 8.5% | 32.8% | 22.3% | 25.9% | nm | 20.6% | |||||||
Depreciation and amortization | 23.0 | 6.7 | 11.9 | 4.6 | 0.1 | 46.3 | |||||||
Adjusted EBITDA | $ | 38.3 | $ | 141.4 | $ | 34.1 | $ | 41.8 | $ | (37.3) | $ | 218.3 | |
Adjusted EBITDA margin % | 21.3% | 34.5% | 34.3% | 29.1% | nm | 26.2% | 6 | ||||||
Capital expenditures | $ | 27.0 | $ | 5.0 | $ | 15.6 | $ | 3.0 | $ | 3.6 | $ | 54.2 | |
__________ | |||||||||||||
nm - Not meaningful |
Segment Financial Information
Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN")
Segment GAAP to Non-GAAP Reconciliation and Supplementary Information
For the Twelve Months Ended December 31, 2022 and 2021
(UNAUDITED) (in millions)
Capital | Capital Markets - | Investment | Investment | ||
Companies - | |||||
Markets - | Compliance and | Companies - | Compliance and | ||
Software | Communications | Software | Communications | ||
Solutions | Management | Solutions | Management | Corporate | Consolidated |
For the Twelve Months Ended | ||||||||||||
December 31, 2022 | ||||||||||||
Net sales | $ | 180.2 | $ | 410.3 | $ | 99.4 | $ | 143.7 | $ | - | $ | 833.6 |
Income (loss) from operations | 13.5 | 131.4 | 21.9 | 35.7 | (57.5) | 145.0 | ||||||
Operating margin % | 7.5% | 32.0% | 22.0% | 24.8% | nm | 17.4% | ||||||
Non-GAAP Adjustments | ||||||||||||
Restructuring, impairment and other | 1.5 | 3.7 | 0.5 | 1.4 | 0.6 | 7.7 | ||||||
charges, net | ||||||||||||
Share-based compensation expense | - | - | - | - | 19.3 | 19.3 | ||||||
Non-income tax, net | (0.6) | (0.1) | (0.2) | - | - | (0.9) | ||||||
Gain on sale of long-lived assets | - | (0.2) | - | - | - | (0.2) | ||||||
COVID-19 related recoveries | - | (0.5) | - | - | - | (0.5) | ||||||
Loss on sale of a business | 0.7 | - | - | - | - | 0.7 | ||||||
Accelerated rent expense | 0.2 | 0.4 | - | 0.1 | 0.1 | 0.8 | ||||||
Disposition-related expenses | - | - | - | - | 0.1 | 0.1 | ||||||
Total Non-GAAP adjustments | 1.8 | 3.3 | 0.3 | 1.5 | 20.1 | 27.0 |
Non-GAAP income (loss) from | $ | 15.3 | $ | 134.7 | $ | 22.2 | $ | 37.2 | $ | (37.4) | $ | 172.0 |
operations | ||||||||||||
32.8% | ||||||||||||
Non-GAAP operating margin % | 8.5% | 22.3% | 25.9% | nm | 20.6% |
Depreciation and amortization | 23.0 | 6.7 | 11.9 | 4.6 | 0.1 | 46.3 | ||||||
Adjusted EBITDA | $ | 38.3 | $ | 141.4 | $ | 34.1 | $ | 41.8 | $ | (37.3) | $ | 218.3 |
Adjusted EBITDA margin % | 21.3% | 34.5% | 34.3% | 29.1% | nm | 26.2% | ||||||
Capital expenditures | $ | 27.0 | $ | 5.0 | $ | 15.6 | $ | 3.0 | $ | 3.6 | $ | 54.2 |
For the Twelve Months Ended | ||||||||||||
December 31, 2021 | ||||||||||||
Net sales | $ | 181.0 | $ | 561.5 | $ | 89.0 | $ | 161.8 | $ | - | $ | 993.3 |
Income (loss) from operations | 30.4 | 242.6 | 8.9 | 15.0 | (77.6) | 219.3 | ||||||
Operating margin % | 16.8% | 43.2% | 10.0% | 9.3% | nm | 22.1% |
Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN")
Segment GAAP to Non-GAAP Reconciliation and Supplementary Information
For the Twelve Months Ended December 31, 2021 and 2020
(UNAUDITED) (in millions)
Capital | Capital Markets - | Investment | Investment | ||||||||||||||||||
Companies - | |||||||||||||||||||||
Markets - | Compliance and | Companies - | Compliance and | ||||||||||||||||||
Software | Communications | Software | Communications | Corporate | Consolidated | ||||||||||||||||
Solutions | Management | Solutions | Management | ||||||||||||||||||
For the Twelve Months Ended | |||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||
Net sales | $ | 181.0 | $ | 561.5 | $ | 89.0 | $ | 161.8 | $ | - | $ | 993.3 | |||||||||
Income (loss) from operations | 30.4 | 242.6 | 8.9 | 15.0 | (77.6) | 219.3 | |||||||||||||||
Operating margin % | 16.8% | 43.2% | 10.0% | 9.3% | nm | 22.1% | |||||||||||||||
Non-GAAP Adjustments | |||||||||||||||||||||
Restructuring, impairment and other | 0.4 | 3.5 | 0.1 | 2.9 | 6.7 | 13.6 | |||||||||||||||
charges, net | |||||||||||||||||||||
Share-based compensation expense | - | - | - | - | 19.5 | 19.5 | |||||||||||||||
LSC multiemployer pension plans | - | - | - | - | 5.4 | 5.4 | |||||||||||||||
obligation | |||||||||||||||||||||
Non-incometax, net | (1.0) | (0.2) | (0.3) | (0.1) | - | (1.6) | |||||||||||||||
Gain on sale of long-lived assets, net | - | - | - | (0.7) | - | (0.7) | |||||||||||||||
COVID-19 related recoveries, net | - | (0.2) | - | (0.8) | - | (1.0) | |||||||||||||||
Total Non-GAAP adjustments | (0.6) | 3.1 | (0.2) | 1.3 | 31.6 | 35.2 | |||||||||||||||
Non-GAAP income (loss) from | $ | 29.8 | $ | 245.7 | $ | 8.7 | $ | 16.3 | $ | (46.0) | $ | 254.5 | |||||||||
operations | |||||||||||||||||||||
Non-GAAP operating margin % | 16.5% | 43.8% | 9.8% | 10.1% | nm | 25.6% | |||||||||||||||
Depreciation and amortization | 16.7 | 5.9 | 12.6 | 4.7 | 0.4 | 40.3 | |||||||||||||||
Adjusted EBITDA | $ | 46.5 | $ | 251.6 | $ | 21.3 | $ | 21.0 | $ | (45.6) | $ | 294.8 | |||||||||
Adjusted EBITDAmargin % | 25.7% | 44.8% | 23.9% | 13.0% | nm | 29.7% | |||||||||||||||
Capital expenditures | $ | 18.8 | $ | 3.0 | $ | 13.0 | $ | 2.9 | $ | 4.6 | $ | 42.3 | |||||||||
For the Twelve Months Ended | |||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||
Net sales | $ | 133.2 | $ | 424.0 | $ | 67.0 | $ | 270.3 | $ | - | $ | 894.5 | |||||||||
Income (loss) from operations | 8.5 | 120.6 | (1.7) | (43.1) | (80.7) | 3.6 | |||||||||||||||
Operating margin % | 6.4% | 28.4 | % | (2.5%) | (15.9%) | nm | 0.4% | ||||||||||||||
Non-GAAP Adjustments | |||||||||||||||||||||
Restructuring, impairment and other | 1.0 | 22.2 | 3.0 | 46.2 | 6.8 | 79.2 | |||||||||||||||
charges, net |
Non-GAAPAdjustmentsRestructuring, impairment and other charges, net
0.4 | 3.5 | 0.1 |
2.9 | 6.7 | 13.6 |
Share-based compensation expense | - | - | - | - | 13.6 | 13.6 | |
LSC multiemployer pension plans | - | - | - | - | 19.0 | 19.0 | |
obligation | |||||||
Share-based compensation expense LSC multiemployer pension plans obligation
Non-income tax, net
Gain on sale of long-lived assets, net COVID-19 related recoveries
Total Non-GAAP adjustments
Non-GAAP income (loss) from | $ | |
operations | ||
Non-GAAP operating margin % |
Depreciation and amortization | |
Adjusted EBITDA | $ |
Adjusted EBITDA margin % |
- | - | - | |||||||||||||||||||||||||
- | - | - | |||||||||||||||||||||||||
(1.0 | ) | (0.2 | ) | (0.3 | ) | ||||||||||||||||||||||
- | - | - | |||||||||||||||||||||||||
- | (0.2 | ) | - | ||||||||||||||||||||||||
(0.6) | 3.1 | (0.2) | |||||||||||||||||||||||||
29.8 | |||||||||||||||||||||||||||
$ | 245.7 | $ | 8.7 | $ | |||||||||||||||||||||||
16.5 | % | 43.8 | % | 9.8 | % | ||||||||||||||||||||||
16.7 | |||||||||||||||||||||||||||
5.9 | 12.6 | ||||||||||||||||||||||||||
46.5 | $ | 251.6 | $ | 21.3 | $ | ||||||||||||||||||||||
25.7 | % | 44.8 | % | 23.9 | % |
- | 19.5 | 19.5 | |||||||||||||||||||||||||
- | 5.4 | 5.4 | |||||||||||||||||||||||||
(0.1 | ) | - | (1.6 | ||||||||||||||||||||||||
(0.7) | - | (0.7) | |||||||||||||||||||||||||
(0.8 | ) | - | (1.0 | ) | |||||||||||||||||||||||
1.3 | 31.6 | 35.2 | |||||||||||||||||||||||||
16.3 | $ | (46.0) | $ | 254.5 | |||||||||||||||||||||||
10.1 | |||||||||||||||||||||||||||
% | nm | 25.6 | % | ||||||||||||||||||||||||
4.7 | |||||||||||||||||||||||||||
0.4 | 40.3 | ||||||||||||||||||||||||||
21.0 | $ | (45.6) | $ | 294.8 | |||||||||||||||||||||||
13.0 | % | nm | 29.7 | % |
Non-incometax, net COVID-19 related (recoveries) expenses, net
eBrevia contingent consideration Accelerated rent expense
Total Non-GAAP adjustments
Non-GAAP income (loss) from operations
Non-GAAP operating margin %
Depreciation and amortization
Adjusted EBITDA Adjusted EBITDAmargin %
Capital expenditures
3.4 | 0.6 | 1.0 | 0.2 | - | 5.2 | |||||||||||||||
- | (2.2) | - | 2.4 | 0.3 | 0.5 | |||||||||||||||
- | - | - | - | (0.8) | (0.8) | |||||||||||||||
0.5 | 1.2 | 0.1 | 0.3 | 0.1 | 2.2 | |||||||||||||||
4.9 | 21.8 | 4.1 | 49.1 | 39.0 | 118.9 | |||||||||||||||
$ | 13.4 | $ | 142.4 | $ | 2.4 | $ | 6.0 | $ | (41.7) | $ | 122.5 | |||||||||
10.1% | 33.6% | 3.6% | 2.2% | nm | 13.7% | |||||||||||||||
13.1 | ||||||||||||||||||||
14.4 | 12.0 | 10.0 | 1.4 | 50.9 | ||||||||||||||||
$ | 26.5 | $ | 156.8 | $ | 14.4 | $ | 16.0 | $ | (40.3) | $ | 173.4 | |||||||||
19.9% | 37.0% | 21.5% | 5.9% | nm | 19.4% | |||||||||||||||
$ | 14.8 | $ | 3.4 | $ | 9.5 | $ | 2.1 | $ | 1.3 | $ | 31.1 |
Capital expenditures | $ | 18.8 | $ | 3.0 | $ | 13.0 | $ | 2.9 | $ | 4.6 | $ | 42.3 |
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Segment Financial Information
Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") | Donnelley Financial Solutions, Inc. and Subsidiaries ("DFIN") | |
Segment GAAP to Non-GAAP Operating Income and Non-GAAP Adjusted EBITDA and Margin Reconciliation | ||
Segment GAAP to Non-GAAP Reconciliation and Supplementary Information | (UNAUDITED) | |
For the Twelve Months Ended December 31, 2020 and 2019 | ||
(in millions) | ||
(UNAUDITED) | ||
(in millions) | U.S. | International Corporate Consolidated |
Capital Markets | Investment | For the Twelve Months Ended December 31, 2019 | $ | 761.4 | $ | 113.3 | $ | - | $ | 874.7 | ||||||||||||
Capital | - Compliance | Investment | Companies - | Net sales | ||||||||||||||||||
Markets - | and | Companies | Compliance and | Income (loss) from operations | 113.5 | (2.3 ) | (32.7 ) | 78.5 | ||||||||||||||
Software | Communications | - Software | Communications | Operating margin % | 14.9 % | (2.0 %) | nm | 9.0 % | ||||||||||||||
For the Twelve Months Ended December | Solutions | Management | Solutions | Management | Corporate | Consolidated | ||||||||||||||||
31, 2020 | Non-GAAP Adjustments | |||||||||||||||||||||
Net sales | $ | 133.2 | $ | 424.0 | $ | 67.0 | $ | 270.3 | $ | - | $ | 894.5 | ||||||||||
Net gain on sale of building | (19.2 ) | - | - | (19.2 ) | ||||||||||||||||||
Income (loss) from operations | 8.5 | 120.6 | (1.7 ) | (43.1 ) | (80.7 ) | 3.6 | ||||||||||||||||
Operating margin % | 6.4 % | 28.4 | % | (2.5 %) | (15.9 %) | nm | 0.4 % | Restructuring, impairment and other charges - net | 7.5 | 2.2 | 3.9 | 13.6 | ||||||||||
Non-GAAP Adjustments | Share-based compensation expense | - | - | 8.9 | 8.9 | |||||||||||||||||
Net loss on sale of Language Solutions business | 2.7 | 1.3 | - | 4.0 | ||||||||||||||||||
Restructuring, impairment and other charges, | 1.0 | 22.2 | 3.0 | 46.2 | 6.8 | 79.2 | ||||||||||||||||
net | Investor-related expenses | - | - | 1.5 | 1.5 | |||||||||||||||||
Share-based compensation expense | - | - | - | - | 13.6 | 13.6 | Acquisition-related expenses | - | - | 0.1 | 0.1 | |||||||||||
LSC multiemployer pension plans obligation | - | - | - | - | 19.0 | 19.0 | Total Non-GAAP adjustments | (9.0 ) | 3.5 | 14.4 | 8.9 | |||||||||||
Non-incometax expense | 3.4 | 0.6 | 1.0 | 0.2 | - | 5.2 | ||||||||||||||||
COVID-19 related sales surcharges and | - | (2.2) | - | 2.4 | 0.3 | 0.5 | ||||||||||||||||
expenses, net | Non-GAAP income (loss) from operations | $ | 104.5 | $ | 1.2 | $ | (18.3 ) $ | 87.4 | ||||||||||||||
- | - | - | - | (0.8 ) | (0.8 ) | |||||||||||||||||
eBrevia contingent consideration | Non-GAAP operating margin % | 13.7 % | 1.1 % | nm | 10.0 % | |||||||||||||||||
Accelerated rent expense | 0.5 | 1.2 | 0.1 | 0.3 | 0.1 | 2.2 | ||||||||||||||||
Total Non-GAAP adjustments | 4.9 | 21.8 | 4.1 | 49.1 | 39.0 | 118.9 | ||||||||||||||||
Non-GAAP income (loss) from operations | $ | 13.4 | $ | 142.4 | $ | 2.4 | $ | 6.0 | $ | (41.7 ) $ | 122.5 | Depreciation and amortization | 41.3 | 7.6 | 0.7 | 49.6 | ||||||
Non-GAAP Adjusted EBITDA | $ | 145.8 | $ | 8.8 | $ | (17.6 ) $ | 137.0 | |||||||||||||||
Non-GAAP operating margin % | 10.1 % | 33.6 | % | 3.6 % | 2.2 % | nm | 13.7 % | |||||||||||||||
Depreciation and amortization | 13.1 | 14.4 | 12.0 | 10.0 | 1.4 | 50.9 | Non-GAAP Adjusted EBITDA margin % | 19.1 % | 7.8 % | nm | 15.7 % | |||||||||||
Adjusted EBITDA | $ | 26.5 | $ | 156.8 | $ | 14.4 | $ | 16.0 | $ | (40.3 ) $ | 173.4 | For the Twelve Months Ended December 31, 2018 | ||||||||||
Adjusted EBITDAmargin % | 19.9 % | 37.0 | % | 21.5 % | 5.9 % | nm | 19.4 % | |||||||||||||||
Net sales | $ | 811.8 | $ | 151.2 | $ | - | $ | 963.0 | ||||||||||||||
Capital expenditures | $ | 14.8 | $ | 3.4 | $ | 9.5 | $ | 2.1 | $ | 1.3 | $ | 31.1 | ||||||||||
Income (loss) from operations | 134.0 | 31.6 | (44.5 ) | 121.1 | ||||||||||||||||||
For the Twelve Months Ended December | Operating margin % | 16.5 % | 20.9 % | nm | 12.6 % | |||||||||||||||||
31, 2019 | ||||||||||||||||||||||
Net sales | $ | 126.7 | $ | 389.7 | $ | 62.6 | $ | 295.7 | $ | - | $ | 874.7 | Non-GAAP Adjustments | |||||||||
Income (loss) from operations | 9.6 | 86.3 | (7.8 ) | 29.4 | (39.0 ) | 78.5 | Net gain on sale of Language Solutions business | (26.6 ) | (27.2 ) | - | (53.8 ) | |||||||||||
Operating margin % | 7.6 % | 22.1 | % | (12.5 %) | 9.9 % | nm | 9.0 % | |||||||||||||||
Restructuring, impairment and other charges - net | 2.0 | 1.8 | 0.6 | 4.4 | ||||||||||||||||||
Non-GAAP Adjustments | Spin-off related transaction expenses | 16.5 | - | 3.6 | 20.1 | |||||||||||||||||
Net gain on sale of building | - | - | - | (19.2 ) | - | (19.2 ) | Share-based compensation expense | - | - | 9.2 | 9.2 | |||||||||||
Restructuring, impairment and other charges, | 1.4 | 6.0 | 0.6 | 1.5 | 4.1 | 13.6 | Disposition-related expenses | - | 1.4 | 5.4 | 6.8 | |||||||||||
net | ||||||||||||||||||||||
Share-based compensation expense | - | - | - | - | 8.9 | 8.9 | Acquisition-related expenses | - | - | 0.8 | 0.8 | |||||||||||
Loss on sale of Language Solutions business | - | - | - | - | 4.0 | 4.0 | Investor-related expenses | - | - | 0.5 | 0.5 | |||||||||||
Investor-related expenses | - | - | - | - | 1.5 | 1.5 | Total Non-GAAP adjustments | (8.1 ) | (24.0 ) | 20.1 | (12.0 ) | |||||||||||
Acquisition-related expenses | - | - | - | - | 0.1 | 0.1 | ||||||||||||||||
Total Non-GAAP adjustments | 1.4 | 6.0 | 0.6 | (17.7 ) | 18.6 | 8.9 | ||||||||||||||||
Non-GAAP income (loss) from operations | $ | 11.0 | $ | 92.3 | $ | (7.2 ) | $ | 11.7 | $ | (20.4 ) $ | 87.4 | Non-GAAP income (loss) from operations | $ | 125.9 | $ | 7.6 | $ | (24.4 ) $ | 109.1 | |||
Non-GAAP operating margin % | 15.5 % | 5.0 % | nm | 11.3 % | ||||||||||||||||||
Non-GAAP operating margin % | 8.7 % | 23.7 | % | (11.5 %) | 4.0 % | nm | 10.0 % | |||||||||||||||
Depreciation and amortization | $ | 12.6 | $ | 15.3 | $ | 12.7 | $ | 8.9 | $ | 0.1 | 49.6 | Depreciation and amortization | 39.6 | 5.7 | 0.5 | 45.8 | ||||||
Adjusted EBITDA | 23.6 | 107.6 | 5.5 | 20.6 | (20.3 ) $ | 137.0 | Non-GAAP Adjusted EBITDA | $ | 165.5 | $ | 13.3 | $ | (23.9 ) $ | 154.9 | ||||||||
Adjusted EBITDAmargin % | 18.6 % | 27.6 | % | 8.8 % | 7.0 % | nm | 15.7 % | |||||||||||||||
Non-GAAP Adjusted EBITDA margin % | 20.4 % | 8.8 % | nm | 16.1 % | ||||||||||||||||||
Capital expenditures | $ | 15.2 | $ | 6.4 | $ | 15.4 | $ | 6.9 | $ | 0.9 | $ | 44.8 | 8 |
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Segment Financial Information
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Donnelley Financial Solutions Inc. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 May 2024 13:18:02 UTC.
