- Reported revenue decreased 3.1% including impact from
divestitures, while comparable adjusted revenue was flat
year-over-year
- Third quarter GAAP diluted EPS was ($0.18) while adjusted
diluted EPS was $0.79
- Net loss of $8.0 million including restructuring and other
charges in the quarter, down from net income of $14.7 million in
the prior year
- Adjusted EBITDA decreased 2.6%, while comparable adjusted
EBITDA increased 3.0%
- Increases full-year 2023 guidance for adjusted EBITDA and
adjusted EPS
Deluxe (NYSE: DLX), a Trusted Payments and Data company, today
reported operating results for its third quarter ended September
30, 2023.
“We are pleased with our third quarter and year-to-date results,
as comparable adjusted EBITDA expanded faster than revenue for the
third consecutive quarter, putting us on-track for meaningful full-
year operating leverage across the business, and demonstrating the
true scalability of our portfolio,” said Barry McCarthy, President
and CEO of Deluxe. “In addition, our execution against the new
holistic enterprise-wide North Star initiative will extend this
momentum, enabling our ability to drive more than $100 million of
run-rate free cash flow and $80 million of incremental run-rate
EBITDA over our multi-year planning horizon.”
“We continued our strong momentum during the third quarter,
including significant sequential improvement in free cash flow, and
continued reduction of our net debt levels,” said Chip Zint, Senior
Vice President and Chief Financial Officer of Deluxe. “Given our
year-to-date results and our outlook for the year, including
expected fourth-quarter benefits from the North Star initiative, we
are once again raising our full-year 2023 earnings guidance.”
Third Quarter 2023 Financial
Highlights
(in millions, except per share
amounts)
3rd Quarter
2023
3rd Quarter
2022
% Change
Revenue
$537.8
$555.0
(3.1
%)
Comparable Adjusted Revenue
$537.8
$538.0
—
Net (Loss) Income
($8.0
)
$14.7
n/m
Adjusted EBITDA
$101.9
$104.6
(2.6
%)
Comparable Adjusted EBITDA
$101.9
$98.9
3.0
%
Diluted EPS
($0.18
)
$0.34
n/m
Adjusted Diluted EPS
$0.79
$0.99
(20.2
%)
————
n/m - not meaningful
- Revenue for the third quarter decreased 3.1% from the previous
year. Comparable adjusted revenue, reflecting the removal of prior
year business divestitures, was flat compared to the previous
year.
- Net loss of $8.0 million was down from net income of $14.7
million in the third quarter of 2022, primarily due to
restructuring activities, higher interest expense and business exit
activity.
- Adjusted EBITDA margin was 18.9%, up 10 basis points from the
prior year, while comparable adjusted EBITDA margin was up 50 basis
points.
- Adjusted diluted EPS was $0.79 versus $0.99 in the prior
year.
Outlook
The Company updated the following guidance for full-year 2023,
inclusive of divestitures, and all figures are approximate:
- Revenue of $2.180 to $2.220 billion, unchanged from our prior
guidance
- Adjusted EBITDA of $405 to $420 million, up from $400 to $415
million
- Adjusted EPS of $3.20 to $3.45, up from $3.10 to $3.40
- Free cash flow of $60 to $80 million, lowered from $80 to $100
million to reflect in-year cash charges
The guidance outlined above is subject to, among other things,
prevailing macroeconomic conditions, global unrest, labor supply
issues, inflation, and the impact of divestitures.
Capital Allocation and Dividend
The Board of Directors recently approved a regular quarterly
dividend of $0.30 per share. The dividend will be payable on
December 4, 2023 to shareholders of record as of market closing on
November 20, 2023.
Earnings Call Information
Deluxe management will host a conference call today at 8:30 a.m.
ET (7:30 a.m. CT) to review the financial results. Listeners can
access the call by dialing by dialing 1-888-210-4748 (access code
7092711). The audio and accompanying slides will be available via a
simultaneous webcast on the investor relations website at
www.investors.deluxe.com. Alternatively, an audio replay will be
available after 11:30 a.m. ET through midnight on November 9, 2023
by dialing 1-800-770-2030 (access code 7092711).
About Deluxe Corporation
Deluxe, a Trusted Payments and Data company, champions business
so communities thrive. Our solutions help businesses pay and get
paid, accelerate growth and operate more efficiently. For more than
100 years, Deluxe customers have relied on our solutions and
platforms at all stages of their lifecycle, from start-up to
maturity. Our powerful scale supports millions of small businesses,
thousands of vital financial institutions and hundreds of the
world’s largest consumer brands, while processing approximately $3
trillion in annual payment volume. Our reach, scale and
distribution channels position Deluxe to be our customers’ most
trusted business partner. To learn how we can help your business,
visit us at www.deluxe.com, www.facebook.com/deluxecorp,
www.linkedin.com/company/deluxe, or www.twitter.com/deluxe.
Forward-Looking Statements
Statements made in this release concerning Deluxe, the company’s
or management’s intentions, expectations, outlook or predictions
about future results or events are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements reflect management’s current intentions or
beliefs and are subject to risks and uncertainties that could cause
actual results or events to vary from stated expectations, which
variations could be material and adverse. Factors that could
produce such a variation include, but are not limited to, the
following: potential continuing negative impacts from pandemic
health issues, such as the coronavirus / COVID-19, along with the
impact of related government restrictions or similar directives on
our future results of operations and our future financial
condition; changes in local, regional, national and international
economic or political conditions, including those resulting from
heightened inflation, rising interest rates, a recession, or
intensified international hostilities, and the impact they may have
on the company, its customers or demand for the company’s products
and services; the effect of proposed and enacted legislative and
regulatory actions affecting the company or the financial services
industry as a whole; continuing cost increases and/or declines in
the availability of materials and other services; the company’s
ability to execute its transformational strategy and to realize the
intended benefits; the inherent unreliability of earnings, revenue
and cash flow predictions due to numerous factors, many of which
are beyond the company’s control; declining demand for the
company’s checks, check-related products and services and business
forms; risks that the company’s strategies intended to drive
sustained revenue and earnings growth, despite the continuing
decline in checks and forms, are delayed or unsuccessful; intense
competition; continued consolidation of financial institutions
and/or bank failures, thereby reducing the number of potential
customers and referral sources and increasing downward pressure on
the company’s revenue and gross profit; risks related to
acquisitions, including integration-related risks and risks that
future acquisitions will not be consummated; risks that any such
acquisitions do not produce the anticipated results or synergies;
risks that the company’s cost reduction initiatives will be delayed
or unsuccessful; risks related to any divestitures contemplated or
undertaken by the company; performance shortfalls by one or more of
the company’s major suppliers, licensors or service providers;
continuing supply chain and labor supply issues; unanticipated
delays, costs and expenses in the development and marketing of
products and services, including web services and financial
technology and treasury management solutions; the failure of such
products and services to deliver the expected revenues and other
financial targets; risks related to security breaches, computer
malware or other cyber-attacks; risks of interruptions to the
company’s website operations or information technology systems; and
risks of unfavorable outcomes and the costs to defend litigation
and other disputes. The company’s forward-looking statements speak
only as of the time made, and management assumes no obligation to
publicly update any such statements. Additional information
concerning these and other factors that could cause actual results
and events to differ materially from the company’s current
expectations are contained in the company’s Form 10-K for the year
ended December 31, 2022, and other filings made with the SEC. The
company undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events, new
information or future circumstances.
DELUXE CORPORATION
CONSOLIDATED CONDENSED
STATEMENTS OF (LOSS) INCOME
(in millions, except per share
amounts)
(Unaudited)
Quarter Ended September
30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Product revenue
$304.8
$317.2
$938.9
$956.7
Service revenue
233.0
237.8
716.0
717.3
Total revenue
537.8
555.0
1,654.9
1,674.0
Cost of products
(118.0
)
(113.6
)
(361.9
)
(345.5
)
Cost of services
(137.1
)
(142.6
)
(413.8
)
(424.0
)
Total cost of revenue
(255.1
)
(256.2
)
(775.7
)
(769.5
)
Gross profit
282.7
298.8
879.2
904.5
Selling, general and administrative
expense
(233.9
)
(243.8
)
(726.9
)
(753.1
)
Restructuring and integration
expense
(22.9
)
(15.2
)
(60.1
)
(46.6
)
(Loss) gain on sale of businesses and
long-lived assets
(4.3
)
1.8
17.6
19.3
Operating income
21.6
41.6
109.8
124.1
Interest expense
(32.0
)
(23.8
)
(94.0
)
(65.5
)
Other income
1.2
3.1
4.6
7.5
(Loss) income before income
taxes
(9.2
)
20.9
20.4
66.1
Income tax benefit (provision)
1.2
(6.2
)
(9.2
)
(19.6
)
Net (loss) income
(8.0
)
14.7
11.2
46.5
Non-controlling interest
—
—
(0.1
)
(0.1
)
Net (loss) income attributable to
Deluxe
($8.0
)
$14.7
$11.1
$46.4
Weighted average dilutive
shares
43.7
43.4
43.8
43.3
Diluted (loss) earnings per
share
($0.18
)
$0.34
$0.25
$1.06
Adjusted diluted earnings per
share
0.79
0.99
2.53
3.04
Capital expenditures
24.9
28.2
80.8
73.4
Depreciation and amortization
expense
38.9
42.3
125.0
128.9
EBITDA
61.7
87.0
239.3
260.4
Adjusted EBITDA
101.9
104.6
310.7
305.9
DELUXE CORPORATION
CONSOLIDATED CONDENSED BALANCE
SHEETS
(dollars and shares in
millions)
(Unaudited)
September 30,
2023
December 31,
2022
Cash and cash equivalents
$42.2
$40.4
Other current assets
495.1
663.6
Property, plant & equipment
121.1
124.9
Operating lease assets
58.8
47.1
Intangibles
410.7
459.0
Goodwill
1,430.6
1,431.4
Other non-current assets
326.2
310.1
Total assets
$2,884.7
$3,076.5
Current portion of long-term
debt
$86.1
$71.7
Other current liabilities
502.0
680.6
Long-term debt
1,546.3
1,572.5
Non-current operating lease
liabilities
59.3
49.0
Other non-current liabilities
91.6
98.5
Shareholders' equity
599.4
604.2
Total liabilities and shareholders'
equity
$2,884.7
$3,076.5
Net debt
$1,590.2
$1,603.8
Shares outstanding
43.7
43.2
DELUXE CORPORATION
CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Nine Months Ended
September 30,
2023
2022
Cash provided (used) by:
Operating activities:
Net income
$11.2
$46.5
Depreciation and amortization of
intangibles
125.0
128.9
Gain on sale of businesses and
long-lived assets
(17.6
)
(19.3
)
Prepaid product discount
payments
(21.8
)
(23.9
)
Other
18.1
(8.8
)
Total operating activities
114.9
123.4
Investing activities:
Proceeds from sale of businesses and
long-lived assets
39.9
25.2
Purchases of capital assets
(80.8
)
(73.4
)
Other
(9.8
)
(1.1
)
Total investing activities
(50.7
)
(49.3
)
Financing activities:
Net change in debt
(14.5
)
(13.2
)
Dividends
(40.2
)
(39.6
)
Net change in customer funds
obligations
(150.9
)
(88.1
)
Other
(8.0
)
(8.7
)
Total financing activities
(213.6
)
(149.6
)
Effect of exchange rate change on cash,
cash equivalents, restricted cash and restricted cash
equivalents
1.0
(14.1
)
Net change in cash, cash equivalents,
restricted cash and restricted cash equivalents
(148.4
)
(89.6
)
Cash, cash equivalents, restricted cash
and restricted cash equivalents, beginning of year
337.4
285.5
Cash, cash equivalents, restricted cash
and restricted cash equivalents, end of period
$189.0
$195.9
Free cash flow
$34.1
$50.0
DELUXE CORPORATION
SEGMENT INFORMATION
(In millions)
(Unaudited)
Quarter Ended September
30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Revenue:
Payments
$169.5
$169.8
$515.8
$507.2
Data Solutions
64.0
66.7
194.8
204.8
Promotional Solutions
124.3
136.1
399.2
408.6
Checks
180.0
182.4
545.1
553.4
Total
$537.8
$555.0
$1,654.9
$1,674.0
Adjusted EBITDA:
Payments
$37.6
$36.2
$110.4
$107.6
Data Solutions
15.3
16.0
48.4
50.9
Promotional Solutions
16.6
18.3
56.7
49.8
Checks
81.4
80.5
241.5
245.8
Corporate
(49.0
)
(46.4
)
(146.3
)
(148.2
)
Total
$101.9
$104.6
$310.7
$305.9
Adjusted EBITDA Margin:
Payments
22.2
%
21.3
%
21.4
%
21.2
%
Data Solutions
23.9
%
24.0
%
24.8
%
24.9
%
Promotional Solutions
13.4
%
13.4
%
14.2
%
12.2
%
Checks
45.2
%
44.1
%
44.3
%
44.4
%
Total
18.9
%
18.8
%
18.8
%
18.3
%
The segment information reported here was
calculated utilizing the methodology outlined in the Notes to
Consolidated Financial Statements included in the company's Annual
Report on Form 10-K for the year ended December 31, 2022.
DELUXE CORPORATION
SEGMENT INFORMATION
(continued)
(In millions)
(Unaudited)
Quarter Ended September
30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Comparable Adjusted Revenue:
Payments
$169.5
$169.8
$515.8
$507.2
Data Solutions
64.0
51.4
194.8
181.4
Promotional Solutions
124.3
134.4
399.2
396.1
Checks
180.0
182.4
545.1
553.4
Total
$537.8
$538.0
$1,654.9
$1,638.1
Comparable Adjusted EBITDA:
Payments
$37.6
$36.2
$110.4
$107.6
Data Solutions
15.3
10.4
48.4
43.9
Promotional Solutions
16.6
18.2
56.7
49.2
Checks
81.4
80.5
241.5
245.8
Corporate
(49.0
)
(46.4
)
(146.3
)
(148.2
)
Total
$101.9
$98.9
$310.7
$298.3
Comparable Adjusted EBITDA
Margin:
Payments
22.2
%
21.3
%
21.4
%
21.2
%
Data Solutions
23.9
%
20.2
%
24.8
%
24.2
%
Promotional Solutions
13.4
%
13.5
%
14.2
%
12.4
%
Checks
45.2
%
44.1
%
44.3
%
44.4
%
Total
18.9
%
18.4
%
18.8
%
18.2
%
DELUXE CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
(in millions)
(Unaudited)
Note that the company has not reconciled
the adjusted EBITDA, adjusted EPS or free cash flow outlook for
2023 to the directly comparable GAAP financial measures because the
company does not provide outlook guidance for the reconciling items
between net income, adjusted net income and adjusted EBITDA, and
certain of these reconciling items impact cash flows from operating
activities. Because of the substantial uncertainty and variability
surrounding certain of these forward-looking reconciling items,
including: asset impairment charges, restructuring and integration
costs, gains and losses on sales of businesses and long-lived
assets, and certain legal-related expenses, a reconciliation of the
non-GAAP financial measure outlook to the corresponding GAAP
measures is not available without unreasonable effort. The probable
significance of certain of these reconciling items is high and,
based on historical experience, could be material.
EBITDA, ADJUSTED EBITDA AND
ADJUSTED EBITDA MARGIN
Management discloses EBITDA, adjusted
EBITDA and adjusted EBITDA margin because it believes they are
useful in evaluating the company's operating performance, as the
calculations eliminate the effect of interest expense, income
taxes, the accounting effects of capital investments (i.e.,
depreciation and amortization) and in the case of adjusted EBITDA
and adjusted EBITDA margin, certain items, as presented below, that
may not be indicative of current period operating performance. In
addition, management utilizes these measures to assess the
operating results and performance of the business, to perform
analytical comparisons and to identify strategies to improve
performance. Management also believes that an increasing EBITDA and
adjusted EBITDA depict an increase in the value of the company.
Management does not consider EBITDA and adjusted EBITDA to be
measures of cash flow, as they do not consider certain cash
requirements, such as interest, income taxes, debt service payments
or capital investments. Management does not consider EBITDA,
adjusted EBITDA or adjusted EBITDA margin to be substitutes for
operating income or net income. Instead, management believes that
these amounts are useful performance measures that should be
considered in addition to GAAP performance measures.
Quarter Ended September
30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net (loss) income
($8.0
)
$14.7
$11.2
$46.5
Non-controlling interest
—
—
(0.1
)
(0.1
)
Interest expense
32.0
23.8
94.0
65.5
Income tax (benefit) provision
(1.2
)
6.2
9.2
19.6
Depreciation and amortization expense
38.9
42.3
125.0
128.9
EBITDA
61.7
87.0
239.3
260.4
Restructuring and integration costs
29.4
15.3
70.9
46.8
Share-based compensation expense
4.5
5.7
15.9
18.7
Acquisition transaction costs
—
0.1
—
0.1
Certain legal-related expense
(benefit)
2.0
(1.7
)
2.2
(0.8
)
Loss (gain) on sale of businesses and
long-lived assets
4.3
(1.8
)
(17.6
)
(19.3
)
Adjusted EBITDA
$101.9
$104.6
$310.7
$305.9
Adjusted EBITDA as a percentage of total
revenue (adjusted EBITDA margin)
18.9
%
18.8
%
18.8
%
18.3
%
DELUXE CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES (continued)
(in millions, except per share
amounts)
(Unaudited)
ADJUSTED DILUTED EPS
By excluding the impact of non-cash items
or items that may not be indicative of current period operating
performance, management believes that adjusted diluted EPS provides
useful comparable information to assist in analyzing the company's
current and future operating performance. As such, adjusted diluted
EPS is one of the key financial performance metrics used to assess
the operating results and performance of the business and to
identify strategies to improve performance. It is reasonable to
expect that one or more of the excluded items will occur in future
periods, but the amounts recognized may vary significantly.
Management does not consider adjusted diluted EPS to be a
substitute for GAAP performance measures, but believes that it is a
useful performance measure that should be considered in addition to
GAAP performance measures.
Quarter Ended September
30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net (loss) income
($8.0
)
$14.7
$11.2
$46.5
Non-controlling interest
—
—
(0.1
)
(0.1
)
Net (loss) income attributable to
Deluxe
(8.0
)
14.7
11.1
46.4
Acquisition amortization
16.5
21.7
58.8
68.7
Restructuring and integration costs
29.4
15.3
70.9
46.8
Share-based compensation expense
4.5
5.7
15.9
18.7
Acquisition transaction costs
—
0.1
—
0.1
Certain legal-related expense
(benefit)
2.0
(1.7
)
2.2
(0.8
)
Loss (gain) on sale of businesses and
long-lived assets
4.3
(1.8
)
(17.6
)
(19.3
)
Gain on debt retirements
—
(1.7
)
—
(1.7
)
Adjustments, pre-tax
56.7
37.6
130.2
112.5
Income tax provision impact of pretax
adjustments(1)
(13.8
)
(9.2
)
(30.6
)
(26.8
)
Adjustments, net of tax
42.9
28.4
99.6
85.7
Adjusted net income attributable to
Deluxe
34.9
43.1
110.7
132.1
Income allocated to participating
securities
—
—
—
(0.1
)
Re-measurement of share-based awards
classified as liabilities
—
(0.1
)
—
(0.5
)
Adjusted income attributable to Deluxe
available to common shareholders
$34.9
$43.0
$110.7
$131.5
Weighted-average dilutive shares(2)
44.0
43.4
43.8
43.3
GAAP Diluted EPS
($0.18
)
$0.34
$0.25
$1.06
Adjustments, net of tax
0.97
0.65
2.28
1.98
Adjusted Diluted EPS
$0.79
$0.99
$2.53
$3.04
(1)
The tax effect of the pretax adjustments
considers the tax treatment and related tax rate(s) that apply to
each adjustment in the applicable tax jurisdiction(s). Generally,
this results in a tax impact that approximates the U.S. effective
tax rate for each adjustment. However, the tax impact of certain
adjustments, such as share-based compensation expense, depends on
whether the amounts are deductible in the respective tax
jurisdictions and the applicable effective tax rate(s) in those
jurisdictions.
(2)
The weighted-average dilutive shares used
in the calculation of adjusted EPS for the quarter ended September
30, 2023 differs from the GAAP calculation due to differences in
the amount of dilutive securities in each calculation.
DELUXE CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES (continued)
(in millions)
(Unaudited)
COMPARABLE ADJUSTED REVENUE,
COMPARABLE ADJUSTED EBITDA AND COMPARABLE ADJUSTED EBITDA
MARGIN
Management views the measures of
comparable adjusted revenue and comparable adjusted EBITDA, which
exclude the impact of business exits, as important indicators when
assessing and evaluating the performance of the business and when
identifying strategies to improve performance. By excluding the
impact of business exits, management is able to evaluate
internally-generated revenue and adjusted EBITDA, measured by
comparable results on a year-over-year basis. These measures are
utilized by management to compare operational performance across
fiscal periods when an acquisition or business exit occurs.
COMPARABLE ADJUSTED
REVENUE
Quarter Ended September
30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Total Company:
Total revenue
$537.8
$555.0
$1,654.9
$1,674.0
Business exits
—
(17.0
)
—
(35.9
)
Comparable adjusted revenue
$537.8
$538.0
$1,654.9
$1,638.1
Payments:
Total revenue
$169.5
$169.8
$515.8
$507.2
Data Solutions:
Total revenue
$64.0
$66.7
$194.8
$204.8
Business exits
—
(15.3
)
—
(23.4
)
Comparable adjusted revenue
$64.0
$51.4
$194.8
$181.4
Promotional Solutions:
Total revenue
$124.3
$136.1
$399.2
$408.6
Business exits
—
(1.7
)
—
(12.5
)
Comparable adjusted revenue
$124.3
$134.4
$399.2
$396.1
Checks:
Total revenue
$180.0
$182.4
$545.1
$553.4
DELUXE CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES (continued)
(in millions)
(Unaudited)
COMPARABLE ADJUSTED EBITDA AND
COMPARABLE ADJUSTED EBITDA MARGIN
Quarter Ended September
30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Total Company:
Adjusted EBITDA
$101.9
$104.6
$310.7
$305.9
Business exits
—
(5.7
)
—
(7.6
)
Comparable adjusted EBITDA
$101.9
$98.9
$310.7
$298.3
Comparable adjusted EBITDA margin
18.9
%
18.4
%
18.8
%
18.2
%
Payments:
Adjusted EBITDA
$37.6
$36.2
$110.4
$107.6
Data Solutions:
Adjusted EBITDA
$15.3
$16.0
$48.4
$50.9
Business exits
—
(5.6
)
—
(7.0
)
Comparable adjusted EBITDA
$15.3
$10.4
$48.4
$43.9
Comparable adjusted EBITDA margin
23.9
%
20.2
%
24.8
%
24.2
%
Promotional Solutions:
Adjusted EBITDA
$16.6
$18.3
$56.7
$49.8
Business exits
—
(0.1
)
—
(0.6
)
Comparable adjusted EBITDA
$16.6
$18.2
$56.7
$49.2
Comparable adjusted EBITDA margin
13.4
%
13.5
%
14.2
%
12.4
%
Checks:
Adjusted EBITDA
$81.4
$80.5
$241.5
$245.8
Corporate:
Adjusted EBITDA
($49.0
)
($46.4
)
($146.3
)
($148.2
)
DELUXE CORPORATION
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES (continued)
(in millions)
(Unaudited)
NET DEBT
Management believes that net debt is an
important measure to monitor leverage and to evaluate the balance
sheet. In calculating net debt, cash and cash equivalents are
subtracted from total debt because they could be used to reduce the
company’s debt obligations. A limitation associated with using net
debt is that it subtracts cash and cash equivalents, and therefore,
may imply that management intends to use cash and cash equivalents
to reduce outstanding debt. In addition, net debt suggests that our
debt obligations are less than the most comparable GAAP measure
indicates.
September 30,
2023
December 31,
2022
Total debt
$1,632.4
$1,644.2
Cash and cash equivalents
(42.2
)
(40.4
)
Net debt
$1,590.2
$1,603.8
FREE CASH FLOW
Management defines free cash flow as net
cash provided by operating activities less purchases of capital
assets. Management believes that free cash flow is an important
indicator of cash available for debt service and for shareholders,
after making capital investments to maintain or expand the
company’s asset base. A limitation of using the free cash flow
measure is that not all of the company’s free cash flow is
available for discretionary spending, as the company may have
mandatory debt payments and other cash requirements that must be
deducted from its cash available for future use. Free cash flow is
not a substitute for GAAP liquidity measures. Instead, management
believes that this measurement provides an additional metric to
compare cash generated by operations on a consistent basis and to
provide insight into the cash flow available to fund items such as
dividends, mandatory and discretionary debt reduction, acquisitions
or other strategic investments, and share repurchases.
Quarter Ended September
30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net cash provided by operating
activities
$67.6
$51.2
$114.9
$123.4
Purchases of capital assets
(24.9
)
(28.2
)
(80.8
)
(73.4
)
Free cash flow
$42.7
$23.0
$34.1
$50.0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102071359/en/
Brian Anderson, VP, Strategy & Investor Relations
651-447-4197 brian.anderson@deluxe.com
Keith Negrin, VP, Communications 612-669-1459
keith.negrin@deluxe.com
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