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Deluxe(DLX) - 2025 Q1 - Quarterly Results
DLXDeluxe(DLX)2025-04-30 20:21

Financial Performance - Reported revenue for Q1 2025 increased by 0.3% to 536.5million,whilecomparableadjustedrevenueroseby1.4536.5 million, while comparable adjusted revenue rose by 1.4% to 536.5 million[4]. - Net income improved to 14.0million,a29.614.0 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 100.2million,withacomparableadjustedEBITDAmarginof18.7100.2 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 0.24inthepreviousyear,whilecomparableadjusteddilutedEPSimprovedby4.20.24 in the previous year, while comparable adjusted diluted EPS improved by 4.2% to 0.75[4][9]. - Adjusted EBITDA for Q1 2025 was 100.2million,slightlydownfrom100.2 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,slightlydownfrom0.75, 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 18.1millionto18.1 million to 24.3 million, compared to 6.2millioninQ12024[4][18].−Thecompanyreportedatotaloperatingcashflowof6.2 million in Q1 2024[4][18]. - The company reported a total operating cash flow of 50.3 million for Q1 2025, compared to 26.6millioninQ12024[18].−Thecompany’snetdebtdecreasedto26.6 million in Q1 2024[18]. - The company’s net debt decreased to 1,462.3 million from 1,468.7million,reflectingongoingdebtreductioncommitments[16].−TotaldebtasofMarch31,2025,was1,468.7 million, reflecting ongoing debt reduction commitments[16]. - Total debt as of March 31, 2025, was 1,492.6 million, a decrease from 1,503.1millionasofDecember31,2024[31].−NetdebtasofMarch31,2025,was1,503.1 million as of December 31, 2024[31]. - Net debt as of March 31, 2025, was 1,462.3 million, down from 1,468.7millionattheendof2024,reflectingaslightimprovementinfinancialleverage[31].−Thecompanycontinuestofocusonfreecashflowasacriticalmetricforfundingstrategicinvestmentsandservicingdebtobligations[33].RevenueGrowthandSegments−Revenuegrowthwasobservedacrossalloperatingsegments,withDataSolutionsrevenueincreasingto1,468.7 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 59.7millioninQ12024[20].−ComparableadjustedrevenueforQ12025was59.7 million in Q1 2024[20]. - Comparable adjusted revenue for Q1 2025 was 536.5 million, up from 529.0millioninQ12024,showingayear−over−yeargrowthof1.3529.0 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 14.8millioninQ12024,suggestingimprovedoperationalefficiency[24][26].−ManagementemphasizesthatadjustedEBITDAandadjustedEBITDAmarginarekeyindicatorsofthecompany′svalueandoperationalperformance[23].OutlookandDividends−Thecompanymaintaineditsfull−year2025outlookranges,whichincluderevenueguidanceof14.8 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 2.155billionandadjustedEBITDAof2.155 billion and adjusted EBITDA of 415 to 435million[6][9].−TheBoardofDirectorsapprovedaquarterlydividendof435 million[6][9]. - The Board of Directors approved a quarterly dividend of 0.30 per share, payable on June 2, 2025[7].