Donnelley Financial Solutions, Inc. (NYSE:DFIN) Q3 2023 Results Conference Call November 1, 2023 9:00 AM ET

Company Participants

Mike Zhao - Head-IR

Dan Leib - CEO

Dave Gardella - CFO

Craig Clay - President

Eric Johnson - President, Global Investment Companies

Conference Call Participants

Charlie Strauzer - CJS Securities

Pete Heckmann - D. A. Davidson

Sam Salvas - Needham & Company

Raj Sharma - B. Riley

Operator

Thanks for standing by, and welcome to the Donnelley Financial Solutions Third Quarter 2023 Earnings Conference Call.

I would now like to welcome Mike Zhao, Head of Investor Relations to end the call. Mike, over to you.

Mike Zhao

Thank you. Good morning, everyone, and thank you for joining Donnelley Financial Solutions' third quarter 2023 results conference call. This morning we have released our earnings report, including a supplemental trending schedule of historical results, copies of which can be found in the Investors section of our website at dfinsolutions.com.

During this call, we will 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 and 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. 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 am 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.

Dan Leib

Thank you, Mike, and good morning, everyone. We delivered strong consolidated third quarter results, given the economic backdrop, with net sales of $180 million, adjusted EBITDA of $49.4 million, and adjusted EBITDA margin of 27.4%. During the third quarter, we navigated a transactions market that despite some signs of improvement remained weak. As a result of strong execution, we increased our third quarter adjusted EBITDA by $4.1 million or 9.1% year-over-year, and expanded our adjusted EBITDA margin by 340 basis points from the third quarter of 2022.