- Full year revenue increased 10.7%, and comparable adjusted
revenue growth was 5.2%, delivering the second consecutive year of
sales-driven revenue growth, with all four segments showing
year-over-year increases
- Full year net income was $65.5 million, up 4.3% from the prior
year and adjusted EBITDA margin rate was 18.7%
- Fourth quarter revenue declined 1.2% on a reported basis driven
by business exits, while comparable adjusted revenue increased
1.2%, led by Payments, Data, and Promotional Solutions
- Fourth quarter net income was $19.0 million and adjusted EBITDA
margin rate was 19.9%
- Recently announced the divestiture of the Company's North
American web hosting and logo businesses, and the name change of
the Cloud Solutions segment to Data Solutions
Deluxe (NYSE: DLX), a Trusted Payments and Business Technology™
company, today reported operating results for its fourth quarter
and year ended December 31, 2022.
“Deluxe has now delivered its second consecutive year of
sales-driven growth, an achievement not seen in over a decade. This
proves our ability to shift into a Payments and Data company, with
Payments becoming our largest revenue business in the first half of
2023,” said Barry McCarthy, President and CEO of Deluxe. “Full year
revenue was driven by increases in all four segments, particularly
our growth areas within Payments and Data, which includes Merchant
Services, Digital Payments, and Data Driven Marketing.”
“Our fourth quarter results demonstrate solid top line growth as
we continue to execute on our strategy,” said Chip Zint, Senior
Vice President and Chief Financial Officer of Deluxe. “Looking
ahead into 2023, we expect to see continued revenue growth,
operating efficiencies, and improvements in free cash flow.”
Full Year 2022 Financial and Segment Highlights (in
millions, except per share amounts)
Full Year 2022
Full Year 2021
% Change
Revenue
$2,238.0
$2,022.2
10.7%
Comparable Adjusted Revenue
$2,093.8
$1,990.0
5.2%
Net Income
$65.5
$62.8
4.3%
Adjusted EBITDA
$418.1
$407.8
2.5%
Comparable Adjusted EBITDA
$387.9
$403.9
(4.0%)
Diluted EPS
$1.50
$1.45
3.4%
Adjusted Diluted EPS
$4.08
$4.88
(16.4%)
- Revenue increased $215.8 million from the previous year.
Comparable adjusted revenue increased $103.8 million, or 5.2%,
year-over-year.
- The Payments segment delivered revenue growth of 33.0% over the
previous year to $678.6 million. Excluding incremental revenue from
the First American acquisition, Payments grew 4.7%.
- Net income of $65.5 million was up 4.3% from the previous year
and includes gains from business exits of $19.3 million, as well as
a full year of acquisition amortization from the First American
acquisition and interest expense associated with the transaction.
The previous year included $18.9 million of transaction costs
related to the acquisition.
- Adjusted EBITDA margin rate was 18.7%, down 150 basis points
from the prior year, and was impacted by inflation and product mix,
partially offset by pricing actions and operating leverage from
strong revenue growth.
- Cash flow from operations for 2022 was $191.5 million and
capital expenditures were $104.6 million. Free cash flow was $86.9
million, a decrease of $14.8 million compared to 2021, which
includes a $40.5 million year-over-year increase in interest
payments.
Fourth Quarter 2022 Financial and Segment Highlights (in
millions, except per share amounts)
4th Quarter
2022
4th Quarter
2021
% Change
Revenue
$564.0
$570.6
(1.2%)
Comparable Adjusted Revenue
$564.0
$557.4
1.2%
Net Income
$19.0
$13.8
37.7%
Adjusted EBITDA
$112.2
$117.1
(4.2%)
Comparable Adjusted EBITDA
$112.2
$115.4
(2.8%)
Diluted EPS
$0.44
$0.32
37.5%
Adjusted Diluted EPS
$1.04
$1.26
(17.5%)
- Revenue for the fourth quarter decreased $6.6 million from the
previous year. Adjusted comparable revenue increased 1.2%,
reflecting solid ongoing demand for Deluxe products and pricing
actions.
- Net income of $19.0 million was up from $13.8 million in the
fourth quarter of 2021, due to a decrease in income tax expense,
partially offset by higher interest expense.
- Adjusted EBITDA margin was 19.9%, down 60 basis points from the
prior year, and was impacted by inflation and product mix,
partially offset by pricing actions.
- Cash flow from operations for the fourth quarter was $68.1
million and capital expenditures were $31.1 million. Free cash flow
was $37.0 million, an increase of $3.5 million compared to the
fourth quarter of 2021.
Web Hosting Divestiture and Segment Name Change
Deluxe recently announced the divestiture of its North American
web hosting and logo businesses. Deluxe previously completed the
divestiture of its web hosting business based in Australia. With
this latest announcement, Deluxe is no longer in the web hosting
business, and continues to sharpen its focus on Payments and Data
by simplifying its portfolio and operations. We expect the
transaction to close during the first quarter of 2023. In
conjunction with this sale, Deluxe has changed the name of its
Cloud Solutions segment to Data Solutions.
Outlook
The Company expects the following for full-year 2023, inclusive
of expected divestitures, and all figures are approximate:
- Revenue of $2.145 to $2.210 billion
- Adjusted EBITDA of $390 to $405 million
- Adjusted EPS of $2.90 to $3.25
- Free cash flow of $80 to $100 million
For additional clarity, 2023 revenue is expected to range from
-1 to +2% growth, and EBITDA is expected to range from -2 to +2%
growth on an adjusted comparable basis. Adjusted EPS is expected to
decline year-over-year due to the full year impact of rising
interest rates, incremental depreciation and amortization, and an
estimated $0.25 impact from the announced divestiture. Factoring in
the impact of the divestiture, the free cash flow guide is an
increase year-over-year on a comparable adjusted basis.
The guidance outlined above is subject to, among other things,
the closure of the web hosting and logo divestiture by April 1,
2023, prevailing macroeconomic conditions, labor supply issues,
inflation, and the impact of other divestitures.
Capital Allocation and Dividend
The Board of Directors recently approved a regular quarterly
dividend of $0.30 per share. The dividend will be payable on March
6, 2023 to shareholders of record as of market closing on February
21, 2023.
Earnings Call Information
Deluxe management will host a conference call today at 8:30 a.m.
ET (7:30 a.m. CT) to review the financial results. Listeners can
access the call by dialing 1-888-210-4748 (access code 7092711).
The webcast and presentation will also be available on the investor
relations website at www.investors.deluxe.com. Alternatively, an
audio replay of the call will be available after 11:30 a.m. ET
through midnight on February 9, 2023 by dialing 1-800-770-2030
(access code 7092711).
About Deluxe Corporation
Deluxe, a Trusted Payments and Data™ company, champions business
so communities thrive. Our solutions help businesses pay and get
paid, accelerate growth and operate more efficiently. For more than
100 years, Deluxe customers have relied on our solutions and
platforms at all stages of their lifecycle, from start-up to
maturity. Our powerful scale supports millions of small businesses,
thousands of vital financial institutions and hundreds of the
world’s largest consumer brands, while processing approximately $3
trillion in annual payment volume. Our reach, scale and
distribution channels position Deluxe to be our customers’ most
trusted business partner. To learn how we can help your business,
visit us at www.deluxe.com, www.facebook.com/deluxecorp,
www.linkedin.com/company/deluxe, or www.twitter.com/deluxe.
Forward-Looking Statements
Statements made in this release concerning Deluxe, the company’s
or management’s intentions, expectations, outlook or predictions
about future results or events are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements reflect management’s current intentions or
beliefs and are subject to risks and uncertainties that could cause
actual results or events to vary from stated expectations, which
variations could be material and adverse. Factors that could
produce such a variation include, but are not limited to, the
following: potential continuing negative impacts from pandemic
health issues, such as the coronavirus / COVID-19, along with the
impact of related government restrictions or similar directives on
our future results of operations and our future financial
condition; changes in local, regional, national and international
economic or political conditions, including those resulting from
heightened inflation, rising interest rates, a recession, or
intensified international hostilities, and the impact they may have
on the company, its customers or demand for the company’s products
and services; the effect of proposed and enacted legislative and
regulatory actions affecting the company or the financial services
industry as a whole; continuing cost increases and/or declines in
the availability of materials and other services; the company’s
ability to execute its transformational strategy and to realize the
intended benefits; the inherent unreliability of earnings, revenue
and cash flow predictions due to numerous factors, many of which
are beyond the company’s control; declining demand for the
company’s checks, check-related products and services and business
forms; risks that the company’s strategies intended to drive
sustained revenue and earnings growth, despite the continuing
decline in checks and forms, are delayed or unsuccessful; intense
competition; continued consolidation of financial institutions
and/or bank failures, thereby reducing the number of potential
customers and referral sources and increasing downward pressure on
the company’s revenue and gross profit; risks related to
acquisitions, including integration-related risks and risks that
future acquisitions will not be consummated; risks that any such
acquisitions do not produce the anticipated results or synergies;
risks that the company’s cost reduction initiatives will be delayed
or unsuccessful; risks related to any divestitures contemplated or
undertaken by the company; performance shortfalls by one or more of
the company’s major suppliers, licensors or service providers;
continuing supply chain and labor supply issues; unanticipated
delays, costs and expenses in the development and marketing of
products and services, including web services and financial
technology and treasury management solutions; the failure of such
products and services to deliver the expected revenues and other
financial targets; risks related to security breaches, computer
malware or other cyber-attacks; risks of interruptions to the
company’s website operations or information technology systems; and
risks of unfavorable outcomes and the costs to defend litigation
and other disputes. The company’s forward-looking statements speak
only as of the time made, and management assumes no obligation to
publicly update any such statements. Additional information
concerning these and other factors that could cause actual results
and events to differ materially from the company’s current
expectations are contained in the company’s Form 10-K for the year
ended December 31, 2021, and other filings made with the SEC. The
company undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events, new
information or future circumstances.
DELUXE CORPORATION
CONSOLIDATED CONDENSED
STATEMENTS OF INCOME
(in millions, except per share
amounts)
(Unaudited)
Quarter Ended December
31,
Year Ended December
31,
2022(1)
2021
2022
2021
Product revenue
$329.5
$336.9
$1,286.2
$1,244.5
Service revenue
234.5
233.7
951.8
777.7
Total revenue
564.0
570.6
2,238.0
2,022.2
Cost of products
(124.8
)
(120.1
)
(470.2
)
(450.9
)
Cost of services
(137.8
)
(135.0
)
(561.9
)
(433.4
)
Total cost of revenue
(262.6
)
(255.1
)
(1,032.1
)
(884.3
)
Gross profit
301.4
315.5
1,205.9
1,137.9
Selling, general and administrative
expense
(240.1
)
(255.4
)
(993.3
)
(941.0
)
Restructuring and integration
expense
(15.9
)
(16.7
)
(62.5
)
(54.7
)
Gain on sale of businesses and
facility
—
—
19.3
—
Operating income
45.4
43.4
169.4
142.2
Interest expense
(29.0
)
(20.0
)
(94.4
)
(55.6
)
Other income
1.9
0.7
9.4
7.2
Income before income taxes
18.3
24.1
84.4
93.8
Income tax benefit (provision)
0.7
(10.3
)
(18.9
)
(31.0
)
Net income
19.0
13.8
65.5
62.8
Non-controlling interest
—
—
(0.1
)
(0.2
)
Net income attributable to
Deluxe
$19.0
$13.8
$65.4
$62.6
Weighted average dilutive
shares
43.4
43.1
43.3
42.8
Diluted earnings per share
$0.44
$0.32
$1.50
$1.45
Adjusted diluted earnings per
share
1.04
1.26
4.08
4.88
Capital expenditures
31.1
28.1
104.6
109.1
Depreciation and amortization
expense
43.6
45.8
172.6
148.8
EBITDA
90.9
89.9
351.3
298.0
Adjusted EBITDA
112.2
117.1
418.1
407.8
(1)
Net income for the quarter ended December
31, 2022 includes an out-of-period correcting adjustment to the
income tax provision that increased net income by $5.9 million and
GAAP diluted EPS by $0.14. This adjustment related to the second
quarter 2022 sale of the Australian web hosting business and was
not material to any interim period in 2022.
DELUXE CORPORATION
CONSOLIDATED CONDENSED BALANCE
SHEETS
(dollars and shares in
millions)
(Unaudited)
December 31,
2022
December 31,
2021
Cash and cash equivalents
$40.4
$41.2
Other current assets
663.6
579.3
Property, plant & equipment
124.9
126.0
Operating lease assets
47.1
58.2
Intangibles
459.0
510.7
Goodwill
1,431.4
1,430.1
Other non-current assets
310.1
328.9
Total assets
$3,076.5
$3,074.4
Current portion of long-term
debt
$71.7
$57.2
Other current liabilities
680.6
626.2
Long-term debt
1,572.5
1,625.8
Non-current operating lease
liabilities
49.0
56.4
Other non-current liabilities
98.5
134.2
Shareholders' equity
604.2
574.6
Total liabilities and shareholders'
equity
$3,076.5
$3,074.4
Net debt
$1,603.8
$1,641.8
Shares outstanding
43.2
42.7
DELUXE CORPORATION
CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Year Ended December
31,
2022
2021
Cash provided (used) by:
Operating activities:
Net income
$65.5
$62.8
Depreciation and amortization of
intangibles
172.6
148.8
Gain from sale of businesses and
facility
(19.3
)
—
Prepaid product discount
payments
(30.6
)
(40.9
)
Other
3.3
40.1
Total operating activities
191.5
210.8
Investing activities:
Payment for acquisition, net of cash,
cash equivalents, restricted cash and restricted cash equivalents
acquired
—
(958.5
)
Proceeds from sale of businesses and
facility
25.2
2.6
Purchases of capital assets
(104.6
)
(109.1
)
Other
(0.9
)
(1.6
)
Total investing activities
(80.3
)
(1,066.6
)
Financing activities:
Net change in debt, net of debt
issuance costs
(40.6
)
836.8
Proceeds from issuing shares
3.1
16.8
Dividends
(52.6
)
(51.6
)
Net change in customer funds
obligations
56.4
126.7
Other
(14.9
)
(15.7
)
Total financing activities
(48.6
)
913.0
Effect of exchange rate change on cash,
cash equivalents, restricted cash and restricted cash
equivalents
(10.7
)
(1.1
)
Net change in cash, cash equivalents,
restricted cash and restricted cash equivalents
51.9
56.1
Cash, cash equivalents, restricted cash
and restricted cash equivalents, beginning of year
285.5
229.4
Cash, cash equivalents, restricted cash
and restricted cash equivalents, end of year
$337.4
$285.5
Free cash flow
$86.9
$101.7
DELUXE CORPORATION
SEGMENT INFORMATION
(In millions)
(Unaudited)
Quarter Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Revenue:
Payments
$171.4
$167.3
$678.6
$510.4
Data Solutions
62.7
62.5
267.5
262.3
Promotional Solutions
154.3
156.7
562.9
546.5
Checks
175.6
184.1
729.0
703.0
Total
$564.0
$570.6
$2,238.0
$2,022.2
Comparable Adjusted Revenue:
Payments
$171.4
$167.3
$534.4
$510.4
Data Solutions
62.7
56.4
267.5
246.3
Promotional Solutions
154.3
149.6
562.9
530.3
Checks
175.6
184.1
729.0
703.0
Total
$564.0
$557.4
$2,093.8
$1,990.0
Adjusted EBITDA:
Payments
$37.0
$34.5
$144.6
$105.6
Data Solutions
17.3
15.1
68.2
70.2
Promotional Solutions
29.8
28.6
79.5
85.4
Checks
74.7
83.2
320.5
324.2
Corporate
(46.6
)
(44.3
)
(194.7
)
(177.6
)
Total
$112.2
$117.1
$418.1
$407.8
Comparable Adjusted EBITDA:
Payments
$37.0
$34.5
$114.4
$105.6
Data Solutions
17.3
13.9
68.2
67.1
Promotional Solutions
29.8
28.1
79.5
84.6
Checks
74.7
83.2
320.5
324.2
Corporate
(46.6
)
(44.3
)
(194.7
)
(177.6
)
Total
$112.2
$115.4
$387.9
$403.9
Adjusted EBITDA Margin:
Payments
21.6
%
20.6
%
21.3
%
20.7
%
Data Solutions
27.6
%
24.2
%
25.5
%
26.8
%
Promotional Solutions
19.3
%
18.3
%
14.1
%
15.6
%
Checks
42.5
%
45.2
%
44.0
%
46.1
%
Total
19.9
%
20.5
%
18.7
%
20.2
%
Comparable Adjusted EBITDA
Margin:
Payments
21.6
%
20.6
%
21.4
%
20.7
%
Data Solutions
27.6
%
24.6
%
25.5
%
27.2
%
Promotional Solutions
19.3
%
18.8
%
14.1
%
16.0
%
Checks
42.5
%
45.2
%
44.0
%
46.1
%
Total
19.9
%
20.7
%
18.5
%
20.3
%
The segment revenue and adjusted EBITDA information reported
here was calculated utilizing the methodology outlined in the Notes
to Consolidated Financial Statements included in the company's
Annual Report on Form 10-K for the year ended December 31,
2021.
DELUXE CORPORATION RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (in millions) (Unaudited)
Note that the company has not reconciled the adjusted EBITDA,
adjusted EPS or free cash flow outlook for 2023 to the directly
comparable GAAP financial measures because the company does not
provide outlook guidance for the reconciling items between net
income, adjusted net income and adjusted EBITDA, and certain of
these reconciling items impact cash flows from operating
activities. Because of the substantial uncertainty and variability
surrounding certain of these forward-looking reconciling items,
including: asset impairment charges; restructuring, integration and
other costs; gains and losses on sales of businesses and
facilities; and certain legal-related expenses, a reconciliation of
the non-GAAP financial measure outlook to the corresponding GAAP
measures is not available without unreasonable effort. The probable
significance of certain of these reconciling items is high and,
based on historical experience, could be material.
EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA
MARGIN
Management discloses EBITDA, adjusted EBITDA and adjusted EBITDA
margin because it believes they are useful in evaluating the
company's operating performance, as the calculations eliminate the
effect of interest expense, income taxes, the accounting effects of
capital investments (i.e., depreciation and amortization) and in
the case of adjusted EBITDA and adjusted EBITDA margin, certain
items, as presented below, that may not be indicative of current
period operating performance. In addition, management utilizes
these measures to assess the operating results and performance of
the business, to perform analytical comparisons and to identify
strategies to improve performance. Management also believes that an
increasing EBITDA and adjusted EBITDA depict an increase in the
value of the company. Management does not consider EBITDA and
adjusted EBITDA to be measures of cash flow, as they do not
consider certain cash requirements, such as interest, income taxes,
debt service payments or capital investments. Management does not
consider EBITDA, adjusted EBITDA or adjusted EBITDA margin to be
substitutes for operating income or net income. Instead, management
believes that these amounts are useful performance measures that
should be considered in addition to GAAP performance measures.
Quarter Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Net income
$19.0
$13.8
$65.5
$62.8
Non-controlling interest
—
—
(0.1
)
(0.2
)
Interest expense
29.0
20.0
94.4
55.6
Income tax (benefit) provision
(0.7
)
10.3
18.9
31.0
Depreciation and amortization expense
43.6
45.8
172.6
148.8
EBITDA
90.9
89.9
351.3
298.0
Restructuring, integration and other
costs
16.3
17.9
63.1
59.0
Share-based compensation expense
4.9
7.7
23.6
29.5
Acquisition transaction costs
—
0.1
0.1
18.9
Certain legal-related expense
(benefit)
0.1
1.5
(0.7
)
2.4
Gain on sale of businesses and
facility
—
—
(19.3
)
—
Adjusted EBITDA
$112.2
$117.1
$418.1
$407.8
Adjusted EBITDA as a percentage of total
revenue (adjusted EBITDA margin)
19.9
%
20.5
%
18.7
%
20.2
%
DELUXE CORPORATION RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (continued) (in millions, except per
share amounts) (Unaudited)
ADJUSTED DILUTED EPS
By excluding the impact of non-cash items or items that may not
be indicative of current period operating performance, management
believes that adjusted diluted EPS provides useful comparable
information to assist in analyzing the company's current and future
operating performance. As such, adjusted diluted EPS is one of the
key financial performance metrics used to assess the operating
results and performance of the business and to identify strategies
to improve performance. It is reasonable to expect that one or more
of the excluded items will occur in future periods, but the amounts
recognized may vary significantly. Management does not consider
adjusted diluted EPS to be a substitute for GAAP performance
measures, but believes that it is a useful performance measure that
should be considered in addition to GAAP performance measures.
Quarter Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Net income
$19.0
$13.8
$65.5
$62.8
Non-controlling interest
—
—
(0.1
)
(0.2
)
Net income attributable to Deluxe
19.0
13.8
65.4
62.6
Acquisition amortization
21.9
27.2
90.6
82.9
Restructuring, integration and other
costs
16.3
17.9
63.1
59.0
Share-based compensation expense
4.9
7.7
23.6
29.5
Acquisition transaction costs
—
0.1
0.1
18.9
Certain legal-related expense
(benefit)
0.1
1.5
(0.7
)
2.4
Gain on sale of businesses and
facility
—
—
(19.3
)
—
Gain on debt retirements
—
—
(1.7
)
—
Adjustments, pre-tax
43.2
54.4
155.7
192.7
Income tax provision impact of pretax
adjustments(1)
(17.0
)
(13.7
)
(43.8
)
(45.8
)
Adjustments, net of tax
26.2
40.7
111.9
146.9
Adjusted net income attributable to
Deluxe
45.2
54.5
177.3
209.5
Income allocated to participating
securities
—
—
(0.1
)
(0.2
)
Re-measurement of share-based awards
classified as liabilities
—
(0.1
)
(0.5
)
(0.4
)
Adjusted income attributable to Deluxe
available to common shareholders
$45.2
$54.4
$176.7
$208.9
Weighted-average dilutive shares
43.4
43.0
43.3
42.8
GAAP Diluted EPS
$0.44
$0.32
$1.50
$1.45
Adjustments, net of tax
0.60
0.94
2.58
3.43
Adjusted Diluted EPS
$1.04
$1.26
$4.08
$4.88
(1)
The tax effect of the pretax adjustments
considers the tax treatment and related tax rate(s) that apply to
each adjustment in the applicable tax jurisdiction(s). Generally,
this results in a tax impact that approximates the U.S. effective
tax rate for each adjustment. However, the tax impact of certain
adjustments, such as share-based compensation expense, depends on
whether the amounts are deductible in the respective tax
jurisdictions and the applicable effective tax rate(s) in those
jurisdictions.
DELUXE CORPORATION RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (continued) (in millions)
(Unaudited)
COMPARABLE ADJUSTED REVENUE, COMPARABLE
ADJUSTED EBITDA AND COMPARABLE ADJUSTED EBITDA MARGIN
Management views the measures of comparable adjusted revenue and
comparable adjusted EBITDA, which exclude the incremental revenue
and adjusted EBITDA generated by the First American acquisition and
the impact of business exits, as important indicators when
assessing and evaluating the performance of the business and when
identifying strategies to improve performance. By excluding the
incremental First American revenue and adjusted EBITDA and the
impact of business exits, management is able to evaluate
internally-generated revenue and adjusted EBITDA, measured by
comparable results on a year-over-year basis. These measures are
utilized by management when comparing operational performance
across fiscal periods with a large acquisition or business
exits.
COMPARABLE ADJUSTED REVENUE
Quarter Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Total Company:
Total revenue
$564.0
$570.6
$2,238.0
$2,022.2
Incremental First American revenue
—
—
(144.2
)
—
Business exits
—
(13.2
)
—
(32.2
)
Comparable adjusted revenue
$564.0
$557.4
$2,093.8
$1,990.0
Payments:
Total revenue
$171.4
$167.3
$678.6
$510.4
Incremental First American revenue
—
—
(144.2
)
—
Comparable adjusted revenue
$171.4
$167.3
$534.4
$510.4
Data Solutions:
Total revenue
$62.7
$62.5
$267.5
$262.3
Business exits
—
(6.1
)
—
(16.0
)
Comparable adjusted revenue
$62.7
$56.4
$267.5
$246.3
Promotional Solutions:
Total revenue
$154.3
$156.7
$562.9
$546.5
Business exits
—
(7.1
)
—
(16.2
)
Comparable adjusted revenue
$154.3
$149.6
$562.9
$530.3
Checks:
Total revenue
$175.6
$184.1
$729.0
$703.0
DELUXE CORPORATION RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (continued) (in millions)
(Unaudited)
COMPARABLE ADJUSTED EBITDA AND COMPARABLE
ADJUSTED EBITDA MARGIN
Quarter Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Total Company:
Adjusted EBITDA
$112.2
$117.1
$418.1
$407.8
Incremental First American acquisition
—
—
(30.2
)
—
Business exits
—
(1.7
)
—
(3.9
)
Comparable adjusted EBITDA
$112.2
$115.4
$387.9
$403.9
Comparable adjusted EBITDA margin
19.9
%
20.7
%
18.5
%
20.3
%
Payments:
Adjusted EBITDA
$37.0
$34.5
$144.6
$105.6
Incremental First American acquisition
—
—
(30.2
)
—
Comparable adjusted EBITDA
$37.0
$34.5
$114.4
$105.6
Comparable adjusted EBITDA margin
21.6
%
20.6
%
21.4
%
20.7
%
Data Solutions:
Adjusted EBITDA
$17.3
$15.1
$68.2
$70.2
Business exits
—
(1.2
)
—
(3.1
)
Comparable adjusted EBITDA
$17.3
$13.9
$68.2
$67.1
Comparable adjusted EBITDA margin
27.6
%
24.6
%
25.5
%
27.2
%
Promotional Solutions:
Adjusted EBITDA
$29.8
$28.6
$79.5
$85.4
Business exits
—
(0.5
)
—
(0.8
)
Comparable adjusted EBITDA
$29.8
$28.1
$79.5
$84.6
Comparable adjusted EBITDA margin
19.3
%
18.8
%
14.1
%
16.0
%
Checks:
Adjusted EBITDA
$74.7
$83.2
$320.5
$324.2
Corporate:
Adjusted EBITDA
($46.6
)
($44.3
)
($194.7
)
($177.6
)
DELUXE CORPORATION RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (continued) (Unaudited)
COMPARABLE ADJUSTED REVENUE AND
COMPARABLE ADJUSTED EBITDA OUTLOOK
(in billions)
2023 Outlook
2022 Actual
Total revenue
$2.145 - $2.210
$2.238
Business exits
—
(0.069)
Comparable adjusted revenue
$2.145 - $2.210
$2.169
Comparable adjusted revenue growth %
(1%) - 2%
(in millions)
Adjusted EBITDA
$390 - $405
$418
Business exits
—
(21)
Comparable adjusted EBITDA
$390 - $405
$397
Comparable adjusted EBITDA growth %
(2%) - 2%
NET DEBT
Management believes that net debt is an important measure to
monitor leverage and to evaluate the balance sheet. In calculating
net debt, cash and cash equivalents are subtracted from total debt
because they could be used to reduce the company’s debt
obligations. A limitation associated with using net debt is that it
subtracts cash and cash equivalents, and therefore, may imply that
management intends to use cash and cash equivalents to reduce
outstanding debt. In addition, net debt suggests that our debt
obligations are less than the most comparable GAAP measure
indicates.
(in millions)
December 31,
2022
December 31,
2021
Total debt
$1,644.2
$1,683.0
Cash and cash equivalents
(40.4)
(41.2)
Net debt
$1,603.8
$1,641.8
DELUXE CORPORATION RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (continued) (in millions)
(Unaudited)
FREE CASH FLOW
Management defines free cash flow as net cash provided by
operating activities less purchases of capital assets. Management
believes that free cash flow is an important indicator of cash
available for debt service and for shareholders, after making
capital investments to maintain or expand the company’s asset base.
A limitation of using the free cash flow measure is that not all of
the company’s free cash flow is available for discretionary
spending, as the company may have mandatory debt payments and other
cash requirements that must be deducted from its cash available for
future use. Free cash flow is not a substitute for GAAP liquidity
measures. Instead, management believes that this measurement
provides an additional metric to compare cash generated by
operations on a consistent basis and to provide insight into the
cash flow available to fund items such as dividends, mandatory and
discretionary debt reduction, acquisitions or other strategic
investments, and share repurchases.
Quarter Ended December
31,
Year Ended December
31,
2022
2021
2022
2021
Net cash provided by operating
activities
$68.1
$61.6
$191.5
$210.8
Purchases of capital assets
(31.1
)
(28.1
)
(104.6
)
(109.1
)
Free cash flow
$37.0
$33.5
$86.9
$101.7
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230202005098/en/
Tom Morabito, VP, Investor Relations 470-607-5567
tom.morabito@deluxe.com
Keith Negrin, VP, Communications 612-669-1459
keith.negrin@deluxe.com
Deluxe (NYSE:DLX)
Historical Stock Chart
Von Feb 2024 bis Mär 2024
Deluxe (NYSE:DLX)
Historical Stock Chart
Von Mär 2023 bis Mär 2024