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Mar 31, 2021
Deluxe Q1 2021 Earnings Report
Reported strongest quarterly sales performance and increased net income and EPS.
Key Takeaways
Deluxe reported a solid start to 2021 with significant year-over-year improvement in adjusted EBITDA and sequential improvement in the total revenue decline rate. The Payments segment delivered healthy growth, and the company announced the acquisition of First American Payment Systems.
Won largest single contract in company history and delivered strongest quarterly sales performance since One Deluxe program initiated in late 2019.
Announced acquisition of First American Payment Systems, accelerating transformation into a payments and Trusted Business Technology™ company, and which is expected to double the size of the company’s Payments business.
Reported increase in net income and both GAAP and adjusted EPS, while adjusted EBITDA margin expanded 340 basis points and adjusted EPS was up nearly 17 percent from a year ago.
Achieved strong cash flow, improved cash on hand and liquidity, held total debt steady and reduced net debt to lowest level in nearly three years amidst the pandemic.
Forward Guidance
The outlook remains unchanged and the company continues to expect the following for the full year 2021:
Positive Outlook
- Revenue growth in the range of 0% to 2% primarily due to the combination of sales transformation and related wins, as well as a steady macro-economic recovery from COVID-19
- Adjusted EBITDA margin in a range between 20% to 21%
- To exit the year with a growth rate in mid-single digits, without benefit of acquisitions, a significant transformation milestone.
Challenges Ahead
- Tax rate to continue to be approximately 25%
- Capital expenditures to be approximately $90 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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