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Dec 31, 2019
Donnelley Financial Solutions Q4 2019 Earnings Report
Reported financial results for the fourth quarter and full year 2019.
Key Takeaways
Donnelley Financial Solutions reported a decrease in net sales and an increase in net earnings for the fourth quarter of 2019. The company's non-GAAP adjusted EBITDA margin improved due to cost savings initiatives and improved business mix. The company also announced a stock repurchase program and issued full-year 2020 guidance.
GAAP fully diluted net earnings per share increased by $0.23 from the prior year, and non-GAAP fully diluted earnings per share increased by $0.28 from the prior year.
Operating cash flow increased by 5.0% from the prior year, and free cash flow increased by 17.8% from the prior year.
SaaS net sales reached a record quarterly amount of $49.8 million, accounting for 26.2% of total net sales.
Non-GAAP adjusted EBITDA margin improved by 400 basis points from the prior year, driven by cost controls and an improved business mix.
Forward Guidance
The company provided full-year guidance for 2020.
Positive Outlook
- Net Sales $860 to $880 million
- Non-GAAP adjusted EBITDA $140 to $145 million
- Operating cash flow $70 to $75 million
- Free cash flow $35 to $40 million
- Diluted share count Approximately 35 million
Challenges Ahead
- Depreciation and amortization Approximately $55 million
- Interest expense Approximately $30 million
- Non-GAAP effective tax rate 29% to 31%
- Capital expenditures Approximately $35 million
- Excludes the impact of potential share repurchases
Historical Earnings Impact
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Avg. Return Before/After Earnings
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