Effective for the quarter ended March 31, 2024, Deluxe Corporation (the "Company") reorganized its reportable business segments to align with changes in its organizational structure that better reflect its portfolio mix and offerings. The Company's new reportable segments are Merchant Services, B2B Payments, Data Solutions and Print.
Supplemental Financial Information
The Company is providing updated historical financial information in the attached schedule to enhance its shareholders' ability to evaluate the Company's historical financial information under the new segment structure. The schedule provides unaudited, recast business segment revenue and adjusted EBITDA for fiscal years 2023 and 2022 and quarterly information for each of the quarters within fiscal year 2023. The Company did not operate under the new segment structure during these periods. The methodology utilized to determine segment operating performance did not change, and information regarding this methodology is provided in the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.
The recasting of previously issued financial information does not represent a restatement of previously issued financial statements and does not affect the Company's reported net income, earnings per share, total assets or shareholders' equity for any of the previously reported periods, nor does it reflect any subsequent information or event, other than as required to reflect the segment reorganization described above. Quarterly amounts for fiscal year 2023 may not sum to the full year amount due to immaterial rounding differences.
DELUXE CORPORATION
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Year Ended December 31,
Quarter Ended
2023
2022
Mar. 31, 2023
June 30, 2023
Sept. 30, 2023
Dec. 31, 2023
Merchant Services:
Revenue
$364,233
$347,709
$89,105
$91,467
$87,984
$95,676
Adjusted EBITDA
74,399
70,760
18,427
17,300
17,393
21,280
B2B Payments:
Revenue
299,196
307,117
75,196
76,341
74,581
73,078
Adjusted EBITDA
62,034
71,242
13,475
15,192
16,074
17,293
Data Solutions:
Revenue
211,788
196,707
44,353
59,301
64,080
44,053
Adjusted EBITDA
46,281
44,833
10,256
13,382
15,317
7,325
Print:
Revenue
1,261,283
1,276,775
314,040
324,517
304,282
318,444
Adjusted EBITDA
400,942
399,045
95,201
104,770
98,044
102,926
Total reportable segments:
Revenue
$2,136,500
$2,128,308
$522,694
$551,626
$530,927
$531,251
Adjusted EBITDA
583,656
585,880
137,359
150,644
146,828
148,824
All other:(1)
Revenue
55,760
109,702
22,671
20,060
6,917
6,113
Adjusted EBITDA
25,926
30,132
9,803
8,239
4,130
3,756
Total segments:
Revenue
$2,192,260
$2,238,010
$545,365
$571,686
$537,844
$537,364
Adjusted EBITDA
609,582
616,012
147,162
158,883
150,958
152,580
(1) Includes businesses sold during 2023 and 2022, including the web hosting, logo design, strategic sourcing and retail packaging businesses, and the payroll and human resources services business, which the Company is currently in the process of exiting.
Total segment adjusted EBITDA reconciles to consolidated income (loss) before income taxes as follows (in thousands):
Year Ended December 31,
Quarter Ended
2023
2022
Mar. 31, 2023
June 30, 2023
Sept. 30, 2023
Dec. 31, 2023
Total segment adjusted EBITDA
$609,582
$616,012
$147,162
$158,883
$150,958
$152,580
Corporate operations
(192,447)
(197,882)
(46,726)
(50,511)
(49,068)
(46,143)
Depreciation and amortization expense
(169,703)
(172,552)
(43,520)
(42,607)
(38,857)
(44,718)
Interest expense
(125,643)
(94,454)
(30,016)
(31,932)
(32,034)
(31,662)
Non-controlling interest
107
135
28
26
26
27
Restructuring and integration expense
(90,475)
(63,136)
(14,094)
(27,477)
(29,364)
(19,540)
Share-based compensation expense
(20,525)
(23,676)
(5,866)
(5,484)
(4,539)
(4,636)
Acquisition transaction costs
-
(130)
-
-
-
-
Certain legal-related (expense) benefit
(2,195)
730
(429)
183
(1,949)
-
Loss on sale of investment securities
(1,323)
-
-
-
-
(1,323)
Gain (loss) on sale of businesses and long-lived assets
32,421
19,331
-
21,942
(4,324)
14,803
Income (loss) before income taxes
$
39,799
$
84,378
$
6,539
$
23,023
$
(9,151)
$
19,388
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Deluxe Corporation published this content on
01 May 2024 and is solely responsible for the information contained therein. Distributed by
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02 May 2024 10:43:10 UTC.
Deluxe Corporation is a payments and data company. The Companyâs segments include Merchant Services, B2B Payments, Data Solutions, and Print. The Merchant Services segment provides electronic credit and debit card authorization and payment systems and processing services primarily to small and medium-sized retail and service businesses. The B2B Payments segment provides treasury management solutions, including remittance and lockbox processing, remote deposit capture, receivables management, payment processing and paperless treasury management, as well as fraud and security services and Deluxe Payment Exchange. The Data Solutions segment provides data-driven marketing solutions, including digital engagement, financial institution profitability reporting and account switching tools, and business incorporation services. The Print segment provides printed personal and business checks, printed business forms, business accessories and promotional products.