Donnelley Financial Solutions, Inc. (NYSE:DFIN) Q1 2023 Earnings Conference Call May 3, 2023 9:00 AM ET

Company Participants

Michael Zhao - Head, IR

Daniel Leib - President, CEO & Director

David Gardella - EVP & CFO

Craig Clay - President, Global Capital Markets

Eric Johnson - President, Global Investment Companies

Conference Call Participants

Charles Strauzer - CJS Securities

Brett Thompson - D.A. Davidson & Co.

Rajiv Sharma - B. Riley Securities

Operator

Thank you for standing by. My name is Kayla Baker, and I will be your conference operator today. At this time, I would like to welcome everyone to the Donnelley Financial Solutions First Quarter 2023 Earnings Conference Call. [Operator Instructions]. I would now like to turn the call over to Head of Investor Relations, Mike Zhao. You may begin.

Michael Zhao

Thank you. Good morning, everyone, and thank you for joining Donnelley Financial Solutions First Quarter 2023 Results Conference Call. This morning, we released our earnings report, including a supplemental trending schedule of historical results, copies of which can be found on the Investors section of our website at dfinsolutions.com.

During this call, we'll refer to forward-looking statements that are subject to risks and uncertainties. For a complete discussion, please refer to the cautionary statements included in our earnings release. In further details in our most recent annual report on Form 10-K, quarterly report on Form 10-Q and other filings with the SEC.

Further, we will discuss certain non-GAAP financial information, such as adjusted EBITDA, adjusted EBITDA margin and organic net sales change. We believe the presentation of non-GAAP financial information provides you with useful supplementary information concerning the company's ongoing operations and is an appropriate way for you to evaluate the company's performance. They are, however, provided for informational purposes only. Please refer to the earnings release and related tables for GAAP financial information and reconciliations of GAAP to non-GAAP financial information.

I'm joined this morning by Dan Leib, Dave Gardella, Craig Clay, Eric Johnson, Floyd Strimling and Kami Turner. I will now turn the call over to Dan.

Daniel Leib

Thank you, Mike, and good morning, everyone. We delivered strong consolidated first quarter results given the economic backdrop with net sales of $198.6 million, non-GAAP adjusted EBITDA of $42.4 million and non-GAAP adjusted EBITDA margin of 21.3%. Our first quarter performance again delivered a higher level of profitability compared to historical quarters with similar overall and transactional revenues. Another proof point that the execution of our strategy has resulted in DFIN becoming more durable and structurally resilient as we continue to invest to shift toward a more favorable recurring sales mix while continuing to aggressively manage our cost structure and being disciplined stewards of capital. As I mentioned, our first quarter performance was in the context of a very challenging operating environment.