Deluxe(US:DLX)2025-02-05 21:18Revenue 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].