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Jun 30, 2021
Deluxe Q2 2021 Earnings Report
Deluxe reported strong revenue growth and solid performance across all business segments, driven by the acquisition of First American and economic recovery.
Key Takeaways
Deluxe reported a strong second quarter with a 16.5% increase in revenue, driven by growth in all four business segments and the acquisition of First American Payment Systems. The company saw significant cross-selling opportunities and improved its cash balance and liquidity.
Revenue increased by 16.5%, or 9.9% excluding the contribution from First American.
All four business segments experienced solid growth.
Cross-selling into First American generated significant revenue, demonstrating the power of the One Deluxe model.
Cash balance and liquidity improved despite the First American acquisition.
Forward Guidance
Based on year-to-date results and including the impact of the First American acquisition, the company expects revenue growth of 10 to 12% for full year 2021. Excluding First American, revenue growth is expected to be 0 to 2%, exiting the year with growth in the mid-single digits. Adjusted EBITDA margin is expected to be between 20 and 21%, with the fourth quarter stronger than the third. Capital expenditures are projected to be $95 to $105 million, and the adjusted tax rate is anticipated to be approximately 25%.
Positive Outlook
- Revenue growth of 10 to 12% including First American
- Revenue growth of 0 to 2% excluding First American, exiting the year with growth in the mid-single digits
- Adjusted EBITDA margin between 20 and 21% with the fourth quarter stronger than the third
- Capital expenditures of $95 to $105 million
- Adjusted tax rate of approximately 25%
Challenges Ahead
- Guidance assumes continued economic recovery
- Subject to macroeconomic unknowns associated with the COVID-19 pandemic, including the Delta variant
Historical Earnings Impact
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Avg. Return Before/After Earnings
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