Deluxe(US:DLX)2021-05-07 17:18PART I Item 1. FINANCIAL STATEMENTS This section presents the unaudited consolidated financial statements, including balance sheets, statements of comprehensive income (loss), statements of shareholders' equity, and statements of cash flows, along with detailed notes providing supplemental information and accounting policies Consolidated Balance Sheets Presents the company's financial position, including assets, liabilities, and equity, at specific reporting dates Consolidated Balance Sheets | Metric | March 31, 2021 (in thousands) | December 31, 2020 (in thousands) | | :-------------------------------- | :------------------------------ | :------------------------------- | | Total assets | $1,893,252 | $1,874,863 | | Total current assets | $504,496 | $506,631 | | Total current liabilities | $404,568 | $411,820 | | Total shareholders' equity | $558,819 | $540,838 | Consolidated Statements of Comprehensive Income (Loss) Reports the company's revenues, expenses, and net income or loss, including comprehensive income, for the period Consolidated Statements of Comprehensive Income (Loss) | Metric | Q1 2021 (in thousands) | Q1 2020 (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :----------- | | Total revenue | $441,264 | $486,423 | -9.3% | | Gross profit | $262,755 | $284,374 | -7.5% | | Operating income (loss) | $36,006 | $(60,814) | N/A | | Net income (loss) | $24,325 | $(60,131) | N/A | | Basic earnings (loss) per share | $0.58 | $(1.43) | N/A | | Diluted earnings (loss) per share | $0.57 | $(1.45) | N/A | Consolidated Statements of Shareholders' Equity Outlines changes in shareholders' equity components, including net income, dividends, and share-based compensation Consolidated Statements of Shareholders' Equity | Metric | Q1 2021 (in thousands) | Q1 2020 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Balance, December 31, 2020/2019 | $540,838 | $570,861 | | Net income (loss) | $24,292 | $(60,131) | | Cash dividends ($0.30 per share) | $(12,832) | $(12,861) | | Common shares issued | $1,041 | $1,882 | | Employee share-based compensation | $6,199 | $4,659 | | Other comprehensive income (loss) | $1,609 | $(12,007) | | Balance, March 31, 2021/2020 | $558,819 | $473,967 | Consolidated Statements of Cash Flows Summarizes cash inflows and outflows from operating, investing, and financing activities for the period Consolidated Statements of Cash Flows | Metric | Q1 2021 (in thousands) | Q1 2020 (in thousands) | Change (YoY) | | :-------------------------------- | :--------------------- | :--------------------- | :----------- | | Net cash provided by operating activities | $39,581 | $26,468 | +$13,113 | | Net cash used by investing activities | $(21,850) | $(13,915) | -$7,935 | | Net cash (used) provided by financing activities | $(14,231) | $211,156 | -$225,387 | | Net change in cash, cash equivalents, restricted cash and restricted cash equivalents | $5,106 | $210,992 | -$205,886 | | Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | $234,515 | $385,803 | -$151,288 | NOTE 1: CONSOLIDATED FINANCIAL STATEMENTS This note clarifies that the interim financial statements are unaudited and prepared using management's estimates and assumptions, particularly concerning the COVID-19 pandemic's impact, which may differ from actual results - Interim financial statements are unaudited and rely on management estimates and assumptions, especially regarding the COVID-19 pandemic's impact, which may differ from actual results1516 Comparability Corrects Q1 2020 cash flow statement errors, confirming no impact on total assets, liabilities, equity, or net income - Misstatements in Q1 2020 cash flow statement related to long-term debt and capital expenditures were corrected, with no impact on total assets, liabilities, shareholders' equity, or net income1718 Comparability | (in thousands) | Reported (Q1 2020) | Adjustment | Revised (Q1 2020) | | :--------------------------------------------------------------------- | :----------------- | :--------- | :---------------- | | Accounts payable | $(18,059) | $7,914 | $(10,145) | | Net cash provided by operating activities | $18,554 | $7,914 | $26,468 | | Purchases of capital assets | $(6,355) | $(7,914) | $(14,269) | | Net cash used by investing activities | $(6,001) | $(7,914) | $(13,915) | | Proceeds from issuing long-term debt | $1,011,000 | $(702,000) | $309,000 | | Payments on long-term debt | $(754,500) | $702,000 | $(52,500) | | Net cash provided by financing activities | $211,156 | $— | $211,156 | NOTE 2: NEW ACCOUNTING PRONOUNCEMENTS The company adopted Accounting Standards Update No. 2019-12 on January 1, 2021, which did not have a significant impact on its results of operations or financial position - Adoption of ASU No. 2019-12 on January 1, 2021, had no significant impact on financial results or position21 NOTE 3: SUPPLEMENTAL BALANCE SHEET AND CASH FLOW INFORMATION This note provides detailed breakdowns for various balance sheet and cash flow items, including inventories, available-for-sale debt securities, revenue in excess of billings, intangibles, goodwill, other non-current assets, prepaid product discounts, and accrued liabilities Inventories and supplies Provides a detailed breakdown of inventory and supplies, including raw materials, semi-finished goods, finished goods, and reserves Inventories and supplies | (in thousands) | March 31, 2021 | December 31, 2020 | | :---------------------------- | :------------- | :---------------- | | Raw materials | $5,415 | $5,412 | | Semi-finished goods | $7,916 | $7,943 | | Finished goods | $31,464 | $33,513 | | Supplies | $5,263 | $5,010 | | Reserve for excess and obsolete items | $(12,939) | $(11,748) | | Inventories and supplies | $37,119 | $40,130 | Available-for-sale debt securities Details the fair value of available-for-sale debt securities, including money market funds and government securities Available-for-sale debt securities | (in thousands) | March 31, 2021 Fair Value | December 31, 2020 Fair Value | | :--------------------------------------- | :------------------------ | :------------------------- | | Domestic money market fund | $12,000 | $15,000 | | Canadian and provincial government securities | $9,411 | $9,533 | | Canadian guaranteed investment certificate | $3,980 | $3,929 | | Available-for-sale debt securities | $25,391 | $28,462 | [Revenue in excess of billings](index=10&type=section&id=Revenue%20in%20excess