Core Viewpoint - Deluxe (DLX) shares have increased by 7.4% over the past four weeks, closing at $15.23, with a mean price target of $27.60 indicating a potential upside of 81.2% [1] Price Targets and Analyst Consensus - The average price target consists of five estimates ranging from a low of $23 to a high of $32, with a standard deviation of $3.65, suggesting a potential increase of 51% to 110.1% from the current price [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about DLX's earnings prospects, as evidenced by a positive trend in earnings estimate revisions, which correlates with near-term stock price movements [11] - Over the last 30 days, one earnings estimate has increased, leading to a 5.1% rise in the Zacks Consensus Estimate for the current year [12] Zacks Rank and Investment Potential - DLX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside in the near term [13]

Financial Performance - Consolidated revenue for Q1 2025 increased by $2 million to $536 million, despite a $6 million decrease from business exits, driven by pricing actions and growth in data-driven marketing [79]. - Net income for Q1 2025 increased by $3 million to $14 million, reflecting pricing and cost management actions, and reduced restructuring expenses [79]. - Net income for Q1 2025 was $14,048,000, reflecting a 29.7% increase compared to $10,830,000 in Q1 2024, while diluted EPS rose to $0.31, up 29.2% year-over-year [99]. - Free cash flow for Q1 2025 increased significantly to $24,313,000 from $6,148,000 in Q1 2024, indicating improved cash generation capabilities [101]. - Net cash provided by operating activities increased by $24 million to $50,281,000 in Q1 2025 from $26,590,000 in Q1 2024 [123]. Cost Management - Adjusted EBITDA margin for Q1 2025 was 18.7%, virtually unchanged from 18.8% in Q1 2024, with a 0.5 point decrease attributed to business exits [78]. - SG&A expenses decreased by 3.8% to $225 million, with SG&A as a percentage of total revenue dropping from 43.8% to 42.0% [93]. - Total cost of revenue increased by 1.6% to $255 million, with costs as a percentage of total revenue rising from 47.0% to 47.6% [90]. - Restructuring and integration expenses decreased by 44.5% to $7.7 million, reflecting ongoing initiatives to enhance operational efficiency [95]. - SG&A expenses decreased by 3.8% in Q1 2025 compared to Q1 2024, contributing to overall cost management efforts [109]. Debt and Cash Management - Cash and cash equivalents as of March 31, 2025, were $30 million, with an additional $368 million available under the revolving credit facility [84]. - Total debt as of March 31, 2025, was $1,492,545,000, down from $1,503,151,000 at the end of 2024, resulting in net debt of $1,462,229,000 [102]. - As of March 31, 2025, total debt obligations were $1.51 billion, a slight decrease from $1.52 billion as of December 31, 2024 [128]. - The company anticipates capital expenditures between $90 million and $100 million for the full year, compared to $94 million in 2024 [84]. - The company expects to maintain regular quarterly dividend payments, subject to board approval [127]. Segment Performance - Merchant Services segment revenue for Q1 2025 was $97,769,000, a 1.3% increase from $96,477,000 in Q1 2024, driven by higher volumes from government clients [113]. - Total revenue for the B2B Payments segment in Q1 2025 was $70,155,000, a 1.1% increase from $69,418,000 in Q1 2024 [115]. - Data Solutions segment revenue increased by 29.3% to $77,227,000 in Q1 2025, up from $59,712,000 in Q1 2024 [117]. - Adjusted EBITDA for the Data Solutions segment rose by 32.4% to $19,693,000 in Q1 2025, compared to $14,869,000 in Q1 2024 [117]. - Print segment revenue decreased by 4.0% to $291,304,000 in Q1 2025, down from $303,334,000 in Q1 2024 [119]. Tax and Interest - The effective income tax rate for Q1 2025 decreased to 27.1%, down from 33.8% in Q1 2024, primarily due to lower tax impacts from foreign operations [98]. - Interest expense for Q1 2025 increased to $31,266,000, a 1.5% rise from Q1 2024, driven by higher interest rates despite a 3.0% decrease in average debt outstanding [97]. Future Outlook - The North Star program aims for a $100 million run-rate improvement in free cash flow and an $80 million run-rate improvement in adjusted EBITDA by 2026 [110]. - The company is focused on growth investments, debt reduction, and returning capital to shareholders through dividends, subject to board approval [84]. Foreign Currency Exposure - The company is exposed to fluctuations in foreign currency exchange rates, primarily Canadian dollars [136]. - Foreign operations constitute a relatively small portion of the overall business, minimizing the impact of exchange rate changes on earnings and cash flows [136]. - The company has not engaged in hedging activities to mitigate foreign currency exchange rate risks [136].

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was just over $536 million, up 1.4% on a comparable adjusted basis year over year [9][18] - Comparable adjusted EBITDA for the quarter was just over $100 million, increasing nearly 3.5% from 2024 [10][19] - Comparable adjusted EPS finished at $0.75, reflecting just over 4% expansion versus the prior year [10][20] - Net debt levels decreased to $1.46 billion, down approximately $80 million from the previous year [28] Business Line Data and Key Metrics Changes - Payments and Data segments grew by a blended rate just above 8.5%, with the Data segment revenue growing 29% year over year [11][24] - Merchant Services revenue grew by 1.3% year over year to $97.8 million, with adjusted EBITDA remaining flat at $21.4 million [20] - B2B segment revenues increased by 1.2% to $70.2 million, with adjusted EBITDA dollars remaining flat at $13.3 million [22] - Print segment revenue declined by 4% year over year to $291.3 million, with legacy check revenues declining by 1.8% [26] Market Data and Key Metrics Changes - The revenue mix shifted towards payments and data offerings, with the ratio of print to payments and data segments changing from 57:43 to 54:46 year over year [11] - The company continues to monitor macroeconomic trends and consumer sentiment for potential impacts on revenue [6][32] Company Strategy and Development Direction - The company is focused on executing its North Star strategy, which emphasizes accelerating free cash flow and profit growth [5][14] - The management is maintaining overall guidance ranges for 2025 despite macroeconomic uncertainties [9][32] - New partnerships, such as with TownBank, are seen as opportunities to expand market reach and improve service delivery [38][66] Management's Comments on Operating Environment and Future Outlook - Management acknowledged extraordinary volatility and macroeconomic uncertainty but emphasized control over internal execution [5][6] - The company expects continued strong performance in the Data segment and is optimistic about future growth despite potential challenges in the Print segment [24][32] Other Important Information - The company reported a free cash flow of $24.3 million for the quarter, improving by $18.1 million from the previous year [29] - The Board approved a regular quarterly dividend of $0.30 per share, payable on June 2, 2025 [31] Q&A Session Summary Question: Insights on the Merchant Business - Management noted that the Merchant business continues to perform well across various market conditions, with strength in government and not-for-profit sectors [34][35] Question: Strategic Changes with New Leadership - Management expressed confidence in the new leadership and highlighted a focus on improving partnership relationships and expanding distribution channels [36][38] Question: Segment Modeling and Performance - Management indicated that the Data segment had a strong quarter but does not expect to maintain a 29% growth rate, projecting upper single digits to low double digits for the full year [44] Question: Impact of Government Check Phasing Out - Management clarified that the federal government is not a customer and does not expect significant impact from the phasing out of physical checks [54][56] Question: Observations on Tariffs and Spending - Management noted minimal evidence of consumer pull forward in spending related to tariffs, emphasizing that their revenue is transaction-based [58][59] Question: Potential Catalysts for Partnerships - Management highlighted the company's strong brand and relationships in the banking sector as key advantages for driving new partnerships [66][70]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was just over $536 million, up 1.4% on a comparable adjusted basis year over year [9][19] - Comparable adjusted EBITDA for the quarter was just over $100 million, increasing nearly 3.5% from 2024 [10][20] - Comparable adjusted EPS finished at $0.75, reflecting just over 4% expansion versus the prior year [10][21] - Net debt levels decreased to $1.46 billion, down approximately $80 million from the previous year [28] Business Line Data and Key Metrics Changes - Payments and Data segments grew by a blended rate just above 8.5%, with Data segment revenue growing 29% year over year [11][24] - Merchant Services revenue grew by 1.3% year over year to $97.8 million, with adjusted EBITDA remaining flat at $21.4 million [21] - B2B segment revenues finished at $70.2 million, increasing 1.2% versus 2024, with adjusted EBITDA dollars remaining flat at $13.3 million [22][23] - Print segment revenue declined 4% year over year, with legacy check revenues declining 1.8% [26] Market Data and Key Metrics Changes - The revenue mix shifted towards payments and data offerings, with the ratio moving from 57:43 to 54:46 in favor of payments and data segments [11] - The Data Solutions segment achieved record levels for the quarter, with revenues of $77.2 million, reflecting a growth of 29.3% [24] Company Strategy and Development Direction - The company is focused on executing its North Star strategy, which emphasizes free cash flow and profit growth [5][14] - The management is maintaining overall guidance ranges for 2025 despite macroeconomic uncertainties [31][32] - The company aims to optimize its balance sheet and reduce net debt levels, with a long-term target of three times leverage or better by the end of 2026 [28][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged extraordinary volatility and macroeconomic uncertainty but emphasized control over internal execution [5][6] - The company continues to monitor consumer sentiment and discretionary spending for potential impacts on its outlook [6] - Despite anticipated challenges, management remains confident in achieving its 2025 revenue and EBITDA goals [14][31] Other Important Information - The company received an S&P ratings upgrade, improving its rating from B- to single B, with a positive outlook [28] - Free cash flow for the quarter was $24.3 million, improving by $18.1 million from the previous year [29][30] - A regular quarterly dividend of $0.30 per share was approved, payable on June 2, 2025 [30] Q&A Session Summary Question: Can you provide more detail on the merchant business and its performance? - The merchant business continues to perform well across various market conditions, with strong retention and ongoing volume from diversified customer categories [33][34] Question: What strategic changes might occur with the new leadership in the merchant business? - The new leadership aims to improve partnership relationships and expand distribution channels, with recent partnerships indicating a move upmarket [35][36] Question: How should we model the segment performance, especially with potential declines? - The data segment is expected to continue strong growth, while print may see a larger decline due to promotional pressures [40][43] Question: What is the secret to the data segment's recent success? - The data business leverages a large consumer and small business database combined with advanced AI tools to effectively target marketing campaigns [46][48] Question: What is the potential impact of the Trump administration's commentary on physical checks? - The company has no direct exposure to government checks and does not anticipate significant collateral impacts from the announcement [52][55] Question: Have there been signs of spending pull forward due to tariffs? - There was a small amount of pull forward in promotional products, but no significant evidence of stocking in the business [56] Question: What are the potential catalysts for driving additional partnerships? - The company has strong brand recognition and relationships in the banking sector, which positions it well for future partnerships [61][62]

Q1 2025 Financial Performance - Total revenue reached $536.5 million, a 0.3% increase compared to Q1 2024[25] - Comparable adjusted revenue increased by 1.4% compared to Q1 2024[25] - Adjusted EBITDA increased by 3.4% to $100.2 million compared to Q1 2024[25] - Adjusted EBITDA margin increased by 40 basis points to 18.7% compared to Q1 2024[25] - Adjusted diluted EPS increased by 4.2% to $0.75 compared to Q1 2024[25] - Net income attributable to Deluxe was $14.0 million, or $0.31 per share, up from $10.8 million in Q1 2024[25,60] Segment Performance - Data Solutions revenue increased significantly by 29.3%[33] - Data Solutions adjusted EBITDA margin increased by 50 basis points to 25.5%[34] - Print segment revenue decreased by 4.0%[39] - Print segment adjusted EBITDA margin expanded by 120 basis points to 31.2%[41] Balance Sheet and Cash Flow - Net debt to adjusted EBITDA ratio remained at 3.6x[43] - Free cash flow increased significantly to $24.3 million, compared to $6.2 million in Q1 2024[43] 2025 Guidance - Revenue is projected to be between $2.090 billion and $2.155 billion, representing a comparable adjusted growth of -1% to +2%[46] - Adjusted EBITDA is expected to be between $415 million and $435 million, a growth of +2% to +7%[46] - Adjusted EPS is projected to be between $3.25 and $3.55, representing a growth of 0% to +9%[46] - Free cash flow is expected to be between $120 million and $140 million, a growth of +20% to +40%[46]

Financial Performance - Reported revenue for Q1 2025 increased by 0.3% to $536.5 million, while comparable adjusted revenue rose by 1.4% to $536.5 million[4]. - Net income improved to $14.0 million, a 29.6% increase from $10.8 million in Q1 2024, driven by cost management and lower restructuring expenses[4]. - Comparable adjusted EBITDA increased by 3.4% to $100.2 million, with a comparable adjusted EBITDA margin of 18.7%, up 40 basis points year-over-year[4][9]. - GAAP diluted EPS rose to $0.31, a 29.2% increase from $0.24 in the previous year, while comparable adjusted diluted EPS improved by 4.2% to $0.75[4][9]. - Adjusted EBITDA for Q1 2025 was $100.2 million, slightly down from $100.5 million in Q1 2024, with an adjusted EBITDA margin of 18.7% compared to 18.8% in the previous year[24][28]. - Adjusted diluted EPS for Q1 2025 was $0.75, slightly down from $0.76 in Q1 2024, indicating stable earnings performance despite fluctuations in expenses[26]. Cash Flow and Debt Management - Free cash flow for Q1 2025 increased significantly by $18.1 million to $24.3 million, compared to $6.2 million in Q1 2024[4][18]. - The company reported a total operating cash flow of $50.3 million for Q1 2025, compared to $26.6 million in Q1 2024[18]. - The company’s net debt decreased to $1,462.3 million from $1,468.7 million, reflecting ongoing debt reduction commitments[16]. - Total debt as of March 31, 2025, was $1,492.6 million, a decrease from $1,503.1 million as of December 31, 2024[31]. - Net debt as of March 31, 2025, was $1,462.3 million, down from $1,468.7 million at the end of 2024, reflecting a slight improvement in financial leverage[31]. - The company continues to focus on free cash flow as a critical metric for funding strategic investments and servicing debt obligations[33]. Revenue Growth and Segments - Revenue growth was observed across all operating segments, with Data Solutions revenue increasing to $77.2 million from $59.7 million in Q1 2024[20]. - Comparable adjusted revenue for Q1 2025 was $536.5 million, up from $529.0 million in Q1 2024, showing a year-over-year growth of 1.3%[28]. Operational Efficiency - Restructuring and integration expenses for Q1 2025 were $8.4 million, down from $14.8 million in Q1 2024, suggesting improved operational efficiency[24][26]. - Management emphasizes that adjusted EBITDA and adjusted EBITDA margin are key indicators of the company's value and operational performance[23]. Outlook and Dividends - The company maintained its full-year 2025 outlook ranges, which include revenue guidance of $2.090 to $2.155 billion and adjusted EBITDA of $415 to $435 million[6][9]. - The Board of Directors approved a quarterly dividend of $0.30 per share, payable on June 2, 2025[7].

Financial Performance - Consolidated revenue decreased by $70 million to $2.12 billion, primarily due to a secular decline in order volumes and business exits, which accounted for a $45 million reduction [178]. - Net income increased by $27 million to $53 million, driven by pricing and cost reduction actions, despite losses from exited businesses and inflationary pressures [178]. - Adjusted EBITDA decreased by $5 million to $412 million, with business exits contributing a $20 million decrease; excluding these exits, adjusted EBITDA would have increased [178]. - Adjusted EBITDA margin improved to 19.4% for 2024, up from 19.0% in 2023, aided by a 14% reduction in corporate operation costs [171]. - SG&A expense decreased by 4.9% to $909.2 million, with SG&A as a percentage of total revenue falling to 42.8% from 43.6% [188]. - Free cash flow increased by $2 million to $100 million, allowing reinvestment into growth businesses [178]. - Net income for 2024 was $52,945, reflecting a 101.9% increase from $26,227 in 2023, while diluted EPS rose to $1.18 from $0.59 [195]. - Free cash flow for 2024 was $99,892, an increase from $97,620 in 2023, with net cash provided by operating activities at $194,281 [197]. Revenue by Segment - Total revenue for the Merchant Services segment in 2024 was $384,038, representing a 5.4% increase compared to 2023's revenue of $364,233 [208]. - Total revenue for the B2B Payments segment decreased to $287,851 in 2024, a decline of 3.8% compared to $299,196 in 2023 [212]. - Total revenue for the Data Solutions segment increased to $234,033 in 2024, a growth of 10.5% compared to $211,788 in 2023 [216]. - Total revenue for the Print segment decreased to $1,205,077 in 2024, a decline of 4.5% compared to $1,261,283 in 2023 [220]. Adjusted EBITDA by Segment - Adjusted EBITDA for the Merchant Services segment in 2024 was $78,540, up 5.6% from $74,399 in 2023, with an adjusted EBITDA margin of 20.5% [208][209]. - Adjusted EBITDA for the B2B Payments segment fell to $57,088 in 2024, down 8.0% from $62,034 in 2023, with an adjusted EBITDA margin of 19.8% [212][213]. - Adjusted EBITDA for the Data Solutions segment rose to $60,443 in 2024, a significant increase of 30.6% from $46,281 in 2023, with an adjusted EBITDA margin of 25.8% [216][217]. - Adjusted EBITDA for the Print segment was $376,601 in 2024, down 6.1% from $400,942 in 2023, with an adjusted EBITDA margin of 31.3% [220][221]. Cash Flow and Liquidity - Cash provided by operating activities decreased by $4 million to $194 million, reflecting secular declines and inflationary pressures [178]. - As of December 31, 2024, the company held cash and cash equivalents of $34 million, with an additional $374 million available for borrowing [180]. - As of December 31, 2024, the company held cash and cash equivalents of $34 million and had an additional $374 million available for borrowing under its revolving credit facility, indicating sufficient liquidity to support operations over the next 12 months [230]. - Net cash provided by operating activities for 2024 was $194,281, a decrease of $4,086 compared to $198,367 in 2023 [225]. Debt and Interest - Total debt decreased to $1,503,151 in 2024 from $1,592,851 in 2023, resulting in net debt of $1,468,752 [198]. - The principal amount of the company's debt obligations was $1.52 billion, down from $1.60 billion in 2023, reflecting a decrease of $82.27 million [231]. - The company executed a $900 million amended and restated credit agreement, with $518 million outstanding at a weighted-average interest rate of 7.23% [233]. - The company issued $450 million of 8.125% senior secured notes maturing in September 2029, with net proceeds of $441 million used to refinance previous debt [234]. - Interest expense decreased by 1.9% to $123,281 in 2024 from $125,643 in 2023, primarily due to a 5.5% reduction in average debt outstanding [193]. - A one percentage point change in the weighted-average interest rate would result in a $6 million change in interest expense for 2025 [256]. Capital Expenditures and Investments - The company anticipates capital expenditures between $90 million and $100 million in 2025, compared to $94 million in 2024 [180]. - The company has committed payments totaling approximately $225 million to third-party service providers for IT services, with $70 million due in 2025 [229]. Compliance and Governance - The company remains in compliance with its debt covenants as of December 31, 2024 [235]. - The company recorded goodwill totaling $1.42 billion as of December 31, 2024, representing 50.3% of total assets, with no impairment charges recorded for the year [244]. Restructuring and Integration - Restructuring and integration expenses for 2024 were $48,570, a decrease of 37.9% from $78,245 in 2023 [190]. Other Financial Metrics - Gain on sale of businesses and long-lived assets decreased by 3.7% to $31,207 in 2024 from $32,421 in 2023 [191]. - Asset impairment charges of $7,743 were recorded in 2024 due to the exit from the U.S. and Canadian payroll and human resources services business [192]. - Income tax provision increased by 73.5% to $23,552 in 2024 from $13,572 in 2023, with an effective tax rate decrease of 3.3 percentage points to 30.8% [194]. - The company paid cash dividends of $54.15 million in 2024, slightly up from $53.33 million in 2023 [228].

Financial Data and Key Metrics Changes - The company reported total revenue of $2.122 billion for the full year, down 3.2% including impacts from business exits, and down 1.2% year-over-year on a comparable adjusted basis [26] - Full-year GAAP net income improved to $52.9 million or $1.18 per share, up from $26.2 million or $0.59 per share in 2023, driven by improved operating results and lower restructuring spend [26] - Comparable adjusted EBITDA was $406 million, improving by $15.3 million or 3.9% from the prior year, with adjusted EBITDA margins at 19.3%, up 100 basis points [27] Business Line Data and Key Metrics Changes - **Merchant Services**: Revenue finished at $384 million, growing by 5.4% versus 2023, with adjusted EBITDA at $78.5 million and margins at 20.4% [28] - **B2B Payments**: Revenues were $287.9 million, reflecting a decline of 3.8% versus the prior year, with adjusted EBITDA at $57.1 million and a margin of 19.8% [34] - **Data Segment**: Revenue reached $234 million, reflecting 10.5% growth, with adjusted EBITDA at $60.5 million and a margin of 25.9% [39] - **Print Segment**: Revenue was $1.21 billion, down 4.5% versus 2023, with adjusted EBITDA at $376.6 million and margins at 31.3% [43] Market Data and Key Metrics Changes - The Data segment experienced a full-year growth rate of over 10%, while the Merchant business delivered more than 5% growth, generally in line with expectations [18] - The B2B payments segment reached a revenue inflection point midyear, recovering from a decline in the first half [18] Company Strategy and Development Direction - The company is focused on executing its North Star plan to increase annualized adjusted EBITDA by $80 million and free cash flows by $100 million by the end of 2026 [8][10] - Strategic investments were made in product development across all business lines, including the Deluxe Payment platform and enhancements in data capabilities [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 and 2026 goals despite encountering revenue headwinds in 2024 [20] - The company anticipates a stable macroeconomic environment and expects to see sequential improvement in revenue growth rates across its segments as 2025 progresses [32][100] Other Important Information - The company maintained its regular quarterly dividend of $0.30 per share, marking the 30th consecutive year of dividends [50] - The company successfully refinanced its 2026 debt maturities, extending maturities to 2029, which provides ample liquidity for growth efforts [51][52] Q&A Session Summary Question: Thoughts on the Merchant business fundamentals - Management is pleased with the Merchant business progress and expects new leadership to enhance product capabilities and market penetration [60][61] Question: Drivers of significant improvement in free cash flow for 2025 - The improvement is attributed to better operating results, lower restructuring spend, and a focus on executing the North Star program [63][66] Question: Pricing flexibility in the Merchant business - Management indicated that while pricing is important, the company competes on customer experience and will not chase low-margin deals [78][70] Question: Impact of tariffs on supply chain - Management does not anticipate significant impacts from tariffs, as most materials are produced domestically [76][77] Question: Incremental revenue wins in the Data segment - The company has invested in cloud capabilities, allowing for quick repositioning and targeting across various markets, contributing to strong revenue growth [88][90] Question: 2026 goals for Merchant Services - Management expects to achieve high single-digit revenue CAGR through 2026, driven by new customer wins and market expansion [92][95] Question: Cadence of quarterly results for 2025 - Management expects low single-digit growth in the first half of 2025, with improvement as the year progresses, particularly in B2B and Merchant segments [96][100]

February 5, 2025 © 2025 Deluxe Corporation Brian Anderson Vice President, Strategy & Investor Relations 2 Today's Presenters Barry McCarthy President and Chief Executive Officer Chip Zint Senior Vice President and Chief Financial Officer Brian Anderson Fourth Quarter and Full Year 2024 Earnings Vice President, Strategy & Investor Relations 3 Cautionary Statement Statements made in this presentation concerning Deluxe, the company's or management's intentions, expectations, outlook or predictions about future ...

Revenue Performance - Full year reported revenue decreased by 3.2% to $2,121.8 million, while comparable adjusted revenue decreased by 1.2% to $2,111.0 million[4]. - Total revenue for the year ended December 31, 2024, was $2,121.8 million, a decrease of 3.2% compared to $2,192.3 million in 2023[30]. - Comparable adjusted revenue for the year ended December 31, 2024, was $2,111.0 million, down from $2,136.5 million in 2023, reflecting a decline of 1.2%[30]. Profitability - Full year net income increased by 101.9% to $52.9 million, up from $26.2 million in 2023, driven by cost management and lower restructuring expenses[4]. - Net income for the year ended December 31, 2024, increased to $52.9 million from $26.2 million in 2023, representing a growth of 101.5%[20]. - Full year GAAP diluted EPS was $1.18, compared to $0.59 in 2023, while comparable adjusted diluted EPS improved by 7.9% to $3.26[4]. - The adjusted diluted EPS for the year ended December 31, 2024, was $3.29, a slight decrease from $3.32 in 2023[28]. Cash Flow and Liquidity - Cash from operating activities for 2024 was $194.3 million, with free cash flow increasing by 2.4% to $100.0 million[4]. - Free cash flow for the year ended December 31, 2024, was $100.0 million, compared to $97.7 million in 2023, showing an increase of 2.4%[20]. - Total operating activities cash flow for the year ended December 31, 2024, was $194.3 million, slightly down from $198.4 million in 2023[20]. - The company reported a net change in cash and equivalents of $(148.8) million for the year ended December 31, 2024, compared to an increase of $120.6 million in 2023[20]. - Cash and cash equivalents improved from $(72.0) million in 2023 to $(34.4) million in 2024, indicating a positive change in liquidity[33]. Debt Management - Total debt was reduced by $89.8 million, while net debt decreased by $52.2 million, resulting in a net debt of $1,468.7 million[4]. - Total debt decreased from $1,592.9 million in 2023 to $1,503.1 million in 2024, a reduction of approximately 5.6%[33]. - Net debt decreased from $1,520.9 million in 2023 to $1,468.7 million in 2024, reflecting a decline of about 3.4%[33]. - The refinancing of the debt capital stack during the fourth quarter positions the company to support key growth opportunities in the coming years[3]. Operational Efficiency - Comparable adjusted EBITDA increased by 3.9% to $406.5 million for the full year, with a comparable adjusted EBITDA margin of 19.3%, up 100 basis points from the prior year[7]. - Adjusted EBITDA for the year ended December 31, 2024, was $412.1 million, slightly down from $417.1 million in 2023, indicating a decrease of 1.2%[30]. - The adjusted EBITDA margin for the year ended December 31, 2024, improved to 19.4% from 19.0% in 2023[30]. - The company achieved four consecutive quarters of operating leverage in 2024, with comparable adjusted EBITDA growth outpacing revenue growth for the second consecutive year[3]. Future Outlook - The company expects full-year 2025 revenue guidance between $2,090 million and $2,155 million, with adjusted EBITDA projected between $415 million and $435 million[13]. - A regular quarterly dividend of $0.30 per share was approved, payable on March 3, 2025[10]. Management Insights - Management considers free cash flow an important indicator for servicing debt and shareholder returns after capital investments[35]. - The company emphasizes that not all free cash flow is available for discretionary spending due to mandatory debt payments and other cash requirements[35]. - Management believes net debt is a valuable metric for assessing financial leverage and overall balance sheet health[32]. - The company aims to consistently compare cash generated by operations through the free cash flow measure[35].