NYSE$DLX

Deluxe Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strongest quarterly sales performance and increased net income and EPS.

Deluxe reported a solid start to 2021 with significant year-over-year improvement in adjusted EBITDA and sequential improvement in the total revenue decline rate. The Payments segment delivered healthy growth, and the company announced the acquisition of First American Payment Systems.

  • Won largest single contract in company history and delivered strongest quarterly sales performance since One Deluxe program initiated in late 2019.
  • Announced acquisition of First American Payment Systems, accelerating transformation into a payments and Trusted Business Technology™ company, and which is expected to double the size of the company’s Payments business.
  • Reported increase in net income and both GAAP and adjusted EPS, while adjusted EBITDA margin expanded 340 basis points and adjusted EPS was up nearly 17 percent from a year ago.
  • Achieved strong cash flow, improved cash on hand and liquidity, held total debt steady and reduced net debt to lowest level in nearly three years amidst the pandemic.

Headline financials

Total Revenue

$441M

Previous: $486M-9.3%
EPS (adj)

$1.26

Previous: $1.08+16.7%
Adjusted EBITDA Margin

20.5%

No prior period
Free Cash Flow

$24.3M

Previous: -$60.1M+140.4%
Net Income

$24.3M

Previous: -$60.1M+140.4%
Operating Income

$36M

Previous: -$60.8M+159.2%
Gross Profit

$263M

Previous: $284M-7.6%
Cash & Equivalents

$125M

Previous: $310M-59.6%
Total Assets

$1.89B

Previous: $2.04B-7.4%
Stock-Based Comp

$6.74M

Previous: $3.62M+86.3%

Revenue & EPS history

Deluxe · Revenue · Quarterly

$441M

Q1 2021-9.3%vs Q1 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Deluxe · $64M total across 1 segment · Q3 2023

  • Data Solutions
    $64M

Forward guidance

The outlook remains unchanged and the company continues to expect the following for the full year 2021:

Tailwinds

  • Revenue growth in the range of 0% to 2% primarily due to the combination of sales transformation and related wins, as well as a steady macro-economic recovery from COVID-19
  • Adjusted EBITDA margin in a range between 20% to 21%
  • To exit the year with a growth rate in mid-single digits, without benefit of acquisitions, a significant transformation milestone.

Headwinds

  • Tax rate to continue to be approximately 25%
  • Capital expenditures to be approximately $90 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.3%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+0.3%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+18.5%

Q3 2024

Best reaction

-12.8%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%-3.9%-12.0%
Q4 2025+13.3%+14.5%+16.1%
Q3 2025+14.3%+13.4%+14.8%
Q1 2025+1.0%+4.3%-2.3%
Q4 2024-11.3%-17.8%-27.5%
Q3 2024+18.5%+26.4%+21.9%
Q2 2024-9.0%-18.7%-14.3%
Q1 2024+9.2%+11.2%+15.1%
Q4 2023+10.0%+10.2%+2.6%
Q3 2023+14.5%+12.8%+16.2%
Q2 2023+10.5%+15.4%+10.8%
Q1 2023+1.6%+3.4%+17.7%
Q4 2022+0.9%+0.2%-9.2%
Q3 2022+8.1%+10.7%+7.8%
Q2 2022-7.1%-10.4%-28.3%
Q1 2022-7.1%-12.2%-17.1%
Q4 2021+3.1%+1.5%+6.3%
Q3 2021-1.6%-2.5%-11.6%
Q2 2021-2.6%-2.4%-7.9%
Q1 2021-1.1%-4.4%-1.0%
Q4 2020+3.4%+4.2%+10.7%
Q3 2020-2.5%+18.6%+24.4%
Q2 2020+13.7%+13.5%+18.2%
Q1 2020+2.1%-9.6%+17.5%
Q4 2019-12.8%-13.5%-31.4%
Q3 2019+4.5%+8.5%+1.6%
Q2 2019+3.0%+2.4%+3.1%
Q1 2019-4.5%-3.6%-15.0%
Q4 2018+9.1%+9.5%+12.9%
Q3 2018-12.4%-4.5%-3.9%
Q2 2018-9.0%-8.2%-6.8%
Q1 2018-5.5%-7.9%-10.3%
Q4 2017-0.4%-2.2%-4.7%
Q3 2017-4.8%-5.5%-7.0%
Q2 2017+3.4%+3.0%-3.6%
Q1 2017+0.1%+1.4%-5.2%
Q4 2016-2.3%-2.2%+1.4%
Q3 2016-3.3%-3.3%+10.7%
Q2 2016-2.4%-2.3%-0.7%
Q1 2016+0.2%
Q4 2015+9.6%
Q3 2015+1.7%
Q2 2015+0.9%
Q1 2015-3.2%
Q4 2014+5.8%
Q3 2014+3.3%
Q2 2014-2.1%
Q1 2014+0.8%
Q4 2013-5.0%
Q3 2013+2.4%
Q2 2013+2.9%
Q1 2013-1.1%
Q4 2012+7.9%
Q3 2012+5.2%
Q2 2012+5.7%
Q1 2012+7.8%
Q4 2011+1.6%
Q3 2011+0.9%
Q2 2011-3.7%
Q4 2010-3.7%
Q1 2010+1.5%
Q1 2011+1.8%
Q4 2008-5.6%
Q3 2009+6.8%
Q3 2010+6.8%
Q2 2009-3.3%
Q4 2009-3.3%
Q2 2010-3.3%

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