Deluxe Corporation (NYSE:DLX) Q2 2024 Earnings Conference Call July 31, 2024 5:00 PM ET Company Participants Brian Anderson - VP, Strategy & IR Barry McCarthy - President & CEO Chip Zint - CFO Conference Call Participants Lance Vitanza - TD Cowen Kartik Mehta - Northcoast Research Charlie Strauzer - CJS Securities Marc Riddick - Sidoti Operator Ladies and gentlemen, thank you for standing by, and welcome to the Deluxe Quarterly Earnings Conference Call. All participants are currently in a listen-only mode a ...

Deluxe (DLX) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.65 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 32.31%. A quarter ago, it was expected that this payments and data company would post earnings of $0.70 per share when it actually produced earnings of $0.76, delivering a surprise of 8.57%. Over the last four quarters, the ...

Revenue Performance - Reported revenue for Q2 2024 decreased by 5.9% to $537.8 million compared to $571.7 million in Q2 2023[3] - Total revenue for the six months ended June 30, 2024, was $1,072.8 million, a decrease of 4.0% compared to $1,117.1 million for the same period in 2023[13] - Total revenue for the quarter ended June 30, 2024, was $537.8 million, a decrease of 2.9% compared to $571.7 million for the same quarter in 2023[21] - Comparable adjusted revenue for the quarter was $534.9 million, down from $551.6 million in the prior year, reflecting a year-over-year decline[21] Net Income and Earnings Per Share - Net income increased by 25.0% to $20.5 million, up from $16.4 million in the same quarter last year[3] - Net income for the six months ended June 30, 2024, increased to $31.3 million from $19.2 million in the same period of 2023, representing a growth of 63.5%[12] - GAAP diluted EPS expanded by 24.3% to $0.46, while comparable adjusted diluted EPS improved by 4.9% to $0.85[3] Cash Flow and Operating Performance - First half operating cash flows increased by 40% to $66.2 million, with free cash flow at $17.6 million[1] - Cash provided by operating activities for the six months ended June 30, 2024, was $66.2 million, an increase from $47.3 million in the same period of 2023[12] - Free cash flow for the six months ended June 30, 2024, was $17.6 million, a significant improvement from a negative $8.6 million in the same period of 2023[12] - Net cash provided by operating activities for the quarter was $39.6 million, a decrease of 28.2% compared to $54.1 million in the prior year[25] - Free cash flow for the quarter was $11.4 million, down from $23.7 million in the same quarter last year[25] EBITDA and Margins - Comparable adjusted EBITDA increased by 1.6% to $101.8 million, with a margin of 19.0%, up 80 basis points from the prior year[3] - Adjusted EBITDA for the six months ended June 30, 2024, was $203.8 million, slightly down from $208.8 million in the same period of 2023[17] - The adjusted EBITDA margin for the six months ended June 30, 2024, was 19.0%, compared to 18.7% for the same period in 2023, indicating improved operational efficiency[17] - Adjusted EBITDA for the quarter was $103.4 million, a decrease of 1.6% from $108.4 million in the same quarter last year[21] - Comparable adjusted EBITDA margin improved to 19.0% for the quarter, compared to 18.2% in the prior year[21] Debt and Financial Position - Current portion of long-term debt reduced to $43.1 million from $86.2 million at the end of 2023[11] - Net debt as of June 30, 2024, was $1,534.9 million, with shares outstanding at 44.2 million[11] - Total debt as of June 30, 2024, was $1,558.0 million, down from $1,592.9 million at the end of December 2023[23] - Net debt as of June 30, 2024, was $1,534.9 million, slightly up from $1,520.9 million at the end of December 2023[23] Guidance and Future Outlook - The company affirms 2024 guidance for revenue between $2.12 billion and $2.16 billion, adjusted EBITDA of $400 million to $420 million, and adjusted diluted EPS of $3.10 to $3.40[4] - The company has not provided reconciliations for its 2024 outlook guidance due to uncertainties surrounding certain reconciling items, including asset impairment charges and restructuring expenses[15] Dividends and Shareholder Returns - The Board of Directors approved a quarterly dividend of $0.30 per share, payable on September 3, 2024[5] Customer Funds and Withdrawals - The company reported a net change in customer funds obligations of $(328.4) million for the six months ended June 30, 2024, compared to $(149.3) million in the same period of 2023, indicating increased customer withdrawals[12] Business Performance Metrics - Merchant Services revenue for the six months ended June 30, 2024, increased to $195.0 million, up from $180.6 million in 2023, reflecting a growth of 8.5%[13] - B2B Payments revenue decreased to $139.7 million for the six months ended June 30, 2024, down 7.5% from $151.5 million in the same period of 2023[13] Performance Evaluation - The company emphasizes the importance of comparable adjusted measures to evaluate performance excluding the impact of business exits[20] - Management views free cash flow as a key indicator of cash available for debt service and shareholder returns after capital investments[24]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being u ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ___________ Commission file number: 1-7945 DELUXE CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction o ...

Deluxe Corporation (NYSE:DLX) Q1 2024 Results Conference Call May 1, 2024 5:00 PM ET Company Participants Brian Anderson - Vice President, Strategy and Investor Relations Barry McCarthy - President and Chief Executive Officer Chip Zint - Chief Financial Officer Conference Call Participants Kartik Mehta - Northcoast Research Jonnathan Navarrete - TD Cowen, Inc Charlie Strauzer - CJS Securities Marc Riddick - Sidoti Brian Anderson [Call Starts Abruptly] Before we begin and as seen on the current slide, I'd li ...

Deluxe (DLX) came out with quarterly earnings of $0.76 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.57%. A quarter ago, it was expected that this payments and data company would post earnings of $0.69 per share when it actually produced earnings of $0.80, delivering a surprise of 15.94%.Over the last four quarters, the c ...