Deluxe Reports Third Quarter 2024 Results

Highlights:

• Reported revenue decreased 1.7%, while comparable adjusted revenue decreased 0.7%.
• Net income was $8.9 million, improving from a net loss of $8.0 million in 2023, on cost
  management, lower restructuring spend and gain on business exits.
• Third quarter GAAP diluted EPS was $0.20 versus a net loss per share of $0.18 in 2023;
  Comparable adjusted diluted EPS improved 12.0% to $0.84.
• Comparable adjusted EBITDA increased 6.9% to $104.5 million.
• Year-to-date operating cash flows increased 16.7% to $134.1 million, and free cash flow
  was $64.3 million through nine months.
• Narrows 2024 guidance from within existing ranges.

Deluxe (NYSE: DLX), a Trusted Payments and Data company, reported operating results for its third quarter ended September 30, 2024.

“We continued to deliver on core earnings and cash flow growth objectives during the third quarter, demonstrating progress across our value-capture initiatives, as comparable adjusted EBITDA growth outpaced revenue for the third consecutive quarter,” said Barry McCarthy, President and CEO of Deluxe. “Revenue growth across the Merchant Services and B2B Payments segments during the quarter complemented Data Solutions continued strong year-to-date expansion, positioning our growth platforms well for future acceleration as our enterprise transformation toward Payments and Data evolves.”

“We delivered another strong quarter of comparable adjusted EBITDA, EPS, and free cash flow growth, enabling net debt reduction of nearly $45 million, during the third quarter,” said Chip Zint, Senior Vice President and Chief Financial Officer of Deluxe. “On a year-to-date basis, we have expanded both our adjusted EBITDA margin and free cash flow yield in line with our clear capital allocation priorities, and remain confident in our full-year trajectory.”

Third Quarter 2024 Financial Highlights
(in millions, except per share amounts)

Click to enlarge.

Revenue for the third quarter decreased 1.7% from the previous year. Comparable adjusted revenue, reflecting the removal of business exits, decreased 0.7% compared to the previous year.

• Net income of $8.9 million was up from a net loss of $8.0 million in the third quarter of 2023.
• Comparable adjusted EBITDA margin was 19.8%, up 140 basis points from the prior year.
• Comparable adjusted diluted EPS of $0.84 was up 12.0% year over year.

Outlook

The Company expects the following for full-year 2024:

• Revenue of $2.12 to $2.14 billion
• Adjusted EBITDA of $405 to $415 million
• Adjusted diluted EPS of $3.20 to $3.35
• Free cash flow of $90 to $100 million

All figures are approximate and reflect the impact of business exits over the past 12 months. This guidance is subject to, among other things, prevailing macroeconomic conditions, global unrest, labor supply issues, inflation, and the impact of 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 December 2, 2024, to shareholders of record as of market closing on November 19, 2024.

Source: Deluxe

The preceding press release was provided by a company unaffiliated with Printing Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of Printing Impressions.