Revenue increases 3.6% over last year
Provides 2017 Outlook; projects growing
revenue, EPS and cash flow
Declares regular quarterly dividend
Deluxe Corporation (NYSE: DLX), a leader in providing small
businesses and financial institutions with products and services to
drive customer revenue, announced its financial results for the
fourth quarter ended December 31, 2016. Key financial highlights
include:
Q4 2016 Q4
2015 % Change Revenue $480.2 million $463.5 million 3.6%
Net Income $54.2 million $59.7 million (9.2%) Diluted EPS – GAAP
$1.11 $1.20 (7.5%) Adjusted Diluted EPS – Non-GAAP $1.35 $1.26 7.1%
A reconciliation of diluted earnings per share (EPS) on a GAAP
basis and adjusted diluted EPS on a non-GAAP basis is provided
after the Forward-Looking Statements.
Revenue, diluted EPS and adjusted diluted EPS were all in-line
with the prior outlook as provided by the Company on January 6,
2017.
“We had another successful year of growth in both our digital
marketing services capabilities and financial results,” said Lee
Schram, CEO of Deluxe. “Our team delivered a seventh
consecutive year of increased revenue and an eighth consecutive
year of increased cash flow from operations. We believe the
strategic investments we made during the year in web services, data
driven marketing solutions and treasury management solutions, put
us well on track toward our goal of growing marketing solutions and
other services to 40 percent of our revenue in 2018. Looking ahead,
we believe this year we will further diversify our revenue base and
once again grow our profitability and operating cash flow.”
Fourth Quarter 2016 Highlights
- Revenue increased 3.6% year-over-year,
primarily due to growth in the Small Business Services (SBS)
segment, which grew 4.8% in the quarter and includes the results of
a number of tuck-in acquisitions made throughout the year. The
Financial Services segment grew 4.3% in the quarter and includes
the results of Data Support Systems, Inc. which was acquired in the
fourth quarter of 2016 and incremental revenue from the
acquisitions of Datamyx and FISC Solutions which were acquired in
the fourth quarter of 2015.
- Revenue from marketing solutions and
other services increased 12.7% year-over-year and grew to 36.0% of
consolidated revenue in the quarter.
- Gross margin was 63.2% of revenue,
compared to 63.0% in the fourth quarter of 2015. Previous price
increases and improvements in manufacturing productivity were
partially offset by increased delivery and material costs.
- Selling, general and administrative
(SG&A) expense increased 3.9% from last year primarily due to
additional SG&A expense from acquisitions and higher medical
costs, but was partially offset by continued cost reduction
initiatives in all segments and lower incentive compensation
expense. SG&A as a percent of revenue was 43.2% in the quarter
compared to 43.1% last year.
- Operating income increased 2.2%
year-over-year and includes restructuring and transaction-related
costs in both periods. Adjusted operating income, which excludes
these items, increased 5.6% year-over-year primarily from continued
cost reductions and lower incentive compensation expense.
- Diluted EPS decreased 7.5%
year-over-year. Excluding restructuring and transaction-related
costs in both periods, as well as a $0.15 loss per share on debt
extinguishment in 2016, adjusted diluted EPS increased 7.1%
year-over-year driven primarily by stronger operating performance,
including cost management initiatives, and lower average shares
outstanding. The fourth quarter 2016 restructuring costs of $0.04
per share were related to severance and the $0.05 per share of
transaction-related costs were incurred primarily in conjunction
with the FMCG Direct acquisition on December 30, 2016.
Segment HighlightsSmall Business Services
- Revenue was $318.3 million and
increased 4.8% year-over-year due primarily to increased marketing
solutions and other services revenue. From a channel perspective,
revenue increased in the online, major accounts and dealer
channels, including benefits from previous price increases.
- Operating income increased 6.6% from
last year to $58.0 million. Adjusted operating income, which
excludes restructuring and transaction-related costs in both
periods, increased 5.3% year-over-year due to price increases, cost
reductions and lower incentive compensation expense.
Financial Services
- Revenue was $125.5 million and
increased 4.3% year-over-year. The increase in revenue was
primarily due to growth in marketing solutions and other services,
which includes incremental revenue from the acquisitions of Data
Support Systems, Inc. in the fourth quarter of 2016 and Datamyx and
FISC Solutions in the fourth quarter of 2015. Revenue also
benefitted from the impact of previous price increases. These
increases in revenue were partially offset by the secular decline
in check usage.
- Operating income was flat compared to
last year at $22.3 million. Adjusted operating income, which
excludes restructuring and transaction-related costs in both
periods, increased 15.4% year-over-year driven by the continued
benefits of cost reductions, price increases and lower incentive
compensation expense, partially offset by the secular decline in
check usage.
Direct Checks
- Revenue of $36.4 million declined 7.8%
year-over-year due primarily to the secular decline in check
usage.
- Operating income decreased 11.3%
year-over-year to $12.5 million. Adjusted operating income, which
excludes restructuring costs in the current quarter, decreased 9.9%
year-over-year due to lower order volume and unfavorable mix, but
was partly offset by cost reductions.
Other Highlights
- Cash provided by operating activities
for 2016 was $319.3 million, an increase of $9.7 million compared
to 2015, driven primarily by stronger operating performance and
lower income tax and interest payments, partially offset by higher
contract acquisition payments, as well as an incentive payment in
2016 related to a previous acquisition.
- The Company repurchased $10.3 million
of common stock in open market transactions during the quarter,
bringing the total year amount to $55.2 million.
- On November 15, the Company redeemed
all of its $200 million 6.00% Senior Notes Due 2020. The early debt
extinguishment generated a loss of $0.15 per diluted share related
to a contractual call premium, associated redemption fees and
interest expense resulting from the settlement of related interest
rate swaps. The early debt extinguishment was financed through a
credit facility term loan of $200.0 million.
- On December 30, 2016, we completed the
acquisition of FMCG Direct for $202.5 million, subject to customary
adjustments. The acquisition was financed through the existing
revolving credit facility and a $130.0 million expansion of the
credit facility term loan, bringing the term loan to $330.0
million.
- At the end of the fourth quarter, the
company had $758.6 million of total debt outstanding which includes
approximately $428 million outstanding on the Company’s revolving
credit facility and $330 million in term loans.
- On January 24, 2016, the Board of
Directors of Deluxe Corporation declared a regular quarterly
dividend of $0.30 per share on all outstanding shares of the
Company. The dividend will be payable on March 6, 2017 to all
shareholders of record at the close of business on February 21,
2017.
First Quarter and Full Year 2017 Outlook: The first
quarter 2017 earnings per share outlook includes approximately
$0.07 per share of EPS dilution attributable to the FMCG Direct
acquisition which closed on December 30, 2016.
Current Outlook
First Quarter 2017:
(1/26/2017) Revenue $469 to $477 million Diluted EPS
– GAAP $1.12 to $1.17 Adjusted Diluted EPS – Non-GAAP $1.12 to
$1.17 Prior Outlook Current Outlook
Full Year 2017:
(1/6/2017) (1/26/2017) Revenue $1.935
to $1.975 billion $1.935 to $1.975 billion Marketing Solutions
& Other Services Revenue approx. $735 to $755 million $735 to
$755 million
Diluted EPS - GAAP
$5.10 to $5.30 $5.10 to $5.30 Adjusted Diluted EPS - Non-GAAP $5.10
to $5.30 $5.10 to $5.30 Operating Cash Flow --- $335 to $355
million Contract Acquisition Payments --- approx. $23 million
Capital Expenditures --- approx. $45 million Depreciation and
Amortization --- approx. $127 million Acquisition-Related
Amortization --- approx. $79 million Cost and Expense Reductions
--- approx. $50 million Effective Tax Rate --- approx. 33%
Earnings Call InformationA live conference call will be
held today at 11:00 a.m. ET (10:00 a.m. CT) to review the financial
results. Listeners can access the call by dialing 1-844-634-1443
(access code 49876404). A presentation also will be available via a
simultaneous webcast on the investor relations website at
www.deluxe.com/investor. Alternatively, an audio replay of the call
will be available on the investor relations website or by calling
1-855-859-2056 (access code 49876404).
Upcoming Management Presentations
- March 21 – Telsey Advisory Group (TAG)
Spring Consumer Conference in New York
About Deluxe CorporationDeluxe is a growth engine for
small businesses and financial institutions. Nearly 4.4 million
small business customers access Deluxe's wide range of products and
services, including customized checks and forms, as well as website
development and hosting, email marketing, social media, search
engine optimization and logo design. For our approximately 5,600
financial institution customers, Deluxe offers industry-leading
programs in checks, customer acquisition, fraud prevention and
profitability. Deluxe is also a leading provider of checks and
accessories sold directly to consumers. For more information, visit
us at www.deluxe.com, www.facebook.com/deluxecorp or
www.twitter.com/deluxecorp.
Forward-Looking StatementsStatements 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 expectations 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: the impact that a
deterioration or prolonged softness in the economy may have on
demand for the Company’s products and services; 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 check and check-related products
and services due to increasing use of other payment methods;
intense competition in the check printing business; continued
consolidation of financial institutions and/or additional 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 that the Small Business Services
segment strategies to increase its pace of new customer acquisition
and average annual sales to existing customers, while at the same
time maintaining its operating margins, are delayed or
unsuccessful; risks that the Company’s recent acquisitions do not
produce the anticipated results or revenue synergies; risks that
the Company’s cost reduction initiatives will be delayed or
unsuccessful; performance shortfalls by one or more of the
Company’s major suppliers, licensors or service providers;
unanticipated delays, costs and expenses in the development and
marketing of products and services, including web services and
financial technology solutions; the failure of such products and
services to deliver the expected revenues and other financial
targets; risks of unfavorable outcomes and the costs to defend
litigation and other disputes; and the impact of governmental laws
and regulations. The Company’s cash dividends are declared by the
Board of Directors on a current basis and therefore may be subject
to change. Our forward-looking statements speak only as of the time
made, and we assume 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, 2015.
Diluted EPS ReconciliationThe Company’s management
believes that adjusted diluted EPS provides useful additional
information for investors because it provides better comparability
of ongoing performance to prior periods given that it excludes the
impact of certain items during 2016 and 2015 (loss on debt
extinguishment, restructuring and transaction-related costs) that
impact the comparability of reported net income and which
management believes to be non-indicative of ongoing operations. It
is reasonable to expect that one or more of these excluded items
will occur in future periods, but the amounts recognized can vary
significantly from period to period and may not directly relate to
the Company’s ongoing operations. The presentation below is not
intended as an alternative to results reported in accordance with
generally accepted accounting principles (GAAP) in the United
States of America. Instead, the Company believes that this
information is a useful financial measure to be considered in
addition to GAAP performance measures.
Reported EPS reconciles to adjusted EPS as follows:
Actual Total
Year Total Year Q4 2016 Q4
2015 2016 2015 Reported Diluted EPS $1.11 $1.20
$4.65 $4.36 Loss on debt extinguishment 0.15
---
0.15 0.12 Restructuring-related costs 0.04 0.04 0.10 0.08
Transaction-related costs 0.05 0.02 0.07 0.03 Adjusted Diluted EPS
$1.35 $1.26 $4.97 $4.59
Outlook Q1
2017 Full Year 2017 Reported Diluted EPS
$1.12 - $1.17 $5.10 - $5.30 Restructuring-related costs --- ---
Transaction-related costs --- --- Adjusted Diluted EPS $1.12 -
$1.17 $5.10 - $5.30
DELUXE CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Dollars and shares in millions, except
per share amounts)
(Unaudited)
Quarter Ended December 31, 2016
2015 Product revenue $382.2
$376.3 Service revenue
98.0 87.2 Total revenue
480.2 463.5 Cost of products (143.2
) (29.8 %)
(141.7 ) (30.6 %)
Cost of
services (33.6 ) (7.0 %)
(29.6 )
(6.4 %)
Total cost of revenue (176.8 ) (36.8
%)
(171.3 ) (37.0 %)
Gross profit 303.4
63.2 %
292.2 63.0 %
Selling, general and administrative
expense (207.5 ) (43.2 %)
(199.7 )
(43.1 %)
Net restructuring charges (3.1 ) (0.6
%)
(1.7 ) (0.4 %)
Operating income 92.8
19.3 %
90.8 19.6 %
Loss on debt extinguishment
(7.9 ) (1.6 %)
— —
Interest expense
(7.0 ) (1.5 %)
(5.0 ) (1.1 %)
Other
income 0.5 0.1 %
0.7 0.2 %
Income before income taxes 78.4 16.3 %
86.5
18.7 %
Income tax provision(1) (24.2 )
(5.0 %)
(26.8 ) (5.8 %)
Net income
$54.2 11.3 %
$59.7 12.9 %
Weighted-average dilutive shares outstanding 48.7
49.3 Diluted earnings per share $1.11
$1.20 Capital expenditures $14.4
$13.7 Depreciation and amortization expense
23.9 22.3 Number of employees-end of period
6,026 5,874 Non-GAAP financial measure -
EBITDA(2) $109.3 $113.8 Non-GAAP
financial measure - Adjusted EBITDA(2) 124.8
118.1
(1)
The income tax provision for the quarter ended
December 31, 2016 reflects a benefit of $2.3 million related to the
adoption of Accounting Standards Update No. 2016-09, Improvements
to Employee Share-Based Payment Accounting. Among other things,
this standard requires that excess tax benefits related to
share-based compensation be included in income tax expense.
Previously, these tax benefits were included in additional paid-in
capital on the consolidated balance sheet.
(2)
Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) and Adjusted EBITDA are not
measures of financial performance under generally accepted
accounting principles (GAAP) in the United States of America. We
disclose EBITDA and Adjusted EBITDA because we believe they are
useful in evaluating our operating performance compared to that of
other companies in our industry, as the calculation eliminates the
effects of long-term financing (i.e., interest expense), income
taxes, the accounting effects of capital investments (i.e.,
depreciation and amortization) and in the case of Adjusted EBITDA,
certain items (i.e., restructuring and related costs,
transaction-related costs and loss on debt extinguishment) which
may vary for companies for reasons unrelated to overall operating
performance. In our case, depreciation and amortization of
intangibles and interest expense in the current year and in
previous years have been impacted by acquisitions. Certain
transactions in 2016 and 2015 also impacted the comparability of
reported net income. We believe that measures of operating
performance which exclude these impacts are helpful in analyzing
our results. We also believe that an increasing EBITDA and Adjusted
EBITDA depict increased ability to attract financing and an
increase in the value of our business. We do 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
or debt service payments. We do not consider EBITDA or Adjusted
EBITDA to be substitutes for operating income or net income.
Instead, we believe that EBITDA and Adjusted EBITDA are useful
performance measures which should be considered in addition to GAAP
performance measures. EBITDA and Adjusted EBITDA are derived from
net income as follows:
Quarter Ended December 31, 2016
2015 Net income $54.2 $59.7 Interest expense 7.0 5.0
Income tax provision 24.2 26.8 Depreciation and amortization
expense 23.9 22.3 EBITDA 109.3 113.8 Restructuring-related
costs 3.6 3.1 Transaction-related costs 4.0 1.2 Loss on debt
extinguishment 7.9 — Adjusted EBITDA $124.8 $118.1
DELUXE CORPORATION CONSOLIDATED CONDENSED
STATEMENTS OF INCOME
(Dollars and shares in millions, except
per share amounts)
(Unaudited)
Year Ended December 31, 2016
2015 Product revenue $1,472.9
$1,452.0 Service revenue
376.2 320.8 Total revenue
1,849.1 1,772.8 Cost of products (534.4
) (28.9 %)
(526.3 ) (29.7 %)
Cost of
services (132.9 ) (7.2 %)
(112.9 )
(6.4 %)
Total cost of revenue (667.3 ) (36.1
%)
(639.2 ) (36.1 %)
Gross profit
1,181.8 63.9 %
1,133.6 63.9 %
Selling, general and
administrative expense (806.0 ) (43.6 %)
(774.9 ) (43.7 %)
Net restructuring charges
(7.1 ) (0.4 %)
(4.4 ) (0.2 %)
Operating income 368.7 19.9 %
354.3 20.0 %
Loss on debt extinguishment (7.9 ) (0.4 %)
(8.9 ) (0.5 %)
Interest expense (22.3
) (1.2 %)
(20.3 ) (1.1 %)
Other income
1.9 0.1 %
2.8 0.2 %
Income before
income taxes 340.4 18.4 %
327.9 18.5 %
Income
tax provision(1) (111.0 ) (6.0 %)
(109.3 ) (6.2 %)
Net income $229.4
12.4 %
$218.6 12.3 %
Weighted-average dilutive shares outstanding 49.0
49.8 Diluted earnings per share $4.65
$4.36 Capital expenditures $46.6
$43.3 Depreciation and amortization expense
91.6 76.7 Number of employees-end of period
6,026 5,874 Non-GAAP financial measure -
EBITDA(2) $454.3 $424.9 Non-GAAP
financial measure - Adjusted EBITDA(2) 474.9
442.2 (1) The income tax provision for
the year ended December 31, 2016 reflects a benefit of $4.0 million
related to the adoption of Accounting Standards Update No. 2016-09,
Improvements to Employee Share-Based Payment Accounting. Among
other things, this standard requires that excess tax benefits
related to share-based compensation be included in income tax
expense. Previously, these tax benefits were included in additional
paid-in capital on the consolidated balance sheet.
(2)
See the discussion of EBITDA and Adjusted
EBITDA on the previous page. EBITDA and Adjusted EBITDA are derived
from net income as follows:
Year Ended December 31, 2016
2015 Net income $229.4 $218.6 Interest expense 22.3
20.3 Income tax provision 111.0 109.3 Depreciation and amortization
expense 91.6 76.7 EBITDA 454.3 424.9 Restructuring-related costs
7.8 6.2 Transaction-related costs 4.9 2.2 Loss on debt
extinguishment 7.9 8.9 Adjusted EBITDA $474.9 $442.2
DELUXE CORPORATION CONSOLIDATED CONDENSED BALANCE
SHEETS
(In millions)
(Unaudited)
December 31, December 31,
2016
2015(1)
Cash and cash equivalents $76.6 $62.4
Other current
assets 321.6 261.6
Property, plant and equipment-net
86.9 85.7
Intangibles-net 409.8 285.3
Goodwill
1,105.9 976.4
Other non-current assets 183.5 170.8
Total
assets $2,184.3 $1,842.2
Current portion of long-term
debt $35.8 $1.0
Other current liabilities 379.8 316.0
Long-term debt 722.8 628.0
Deferred income taxes 85.2
81.1
Other non-current liabilities 79.7 71.0
Shareholders' equity 881.0 745.1
Total liabilities and
shareholders' equity $2,184.3 $1,842.2
Shares
outstanding 48.5 49.0 (1) Prior period
amounts have been revised to correct a prior period error. We
corrected the presentation from current to non-current of amounts
borrowed under our credit facility and the related asset for debt
issuance costs. This revision was not material to previously issued
balance sheets and had no impact on previously reported amounts for
total assets, total liabilities or shareholders' equity.
In addition, during the first quarter of
2016, we adopted Accounting Standards Update No. 2015-03,
Simplifying the Presentation of Debt Issuance Costs, which requires
that debt issuance costs, other than those associated with our
credit facility, be presented in the balance sheet as a reduction
of the related debt liability. Prior period amounts have been
revised to reflect the adoption of this standard.
DELUXE CORPORATION CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Year Ended December 31, 2016
2015 Cash provided (used) by: Operating
activities: Net income $229.4 $218.6
Depreciation and
amortization of intangibles 91.6 76.7
Loss on debt
extinguishment 7.9 8.9
Contract acquisition payments
(23.1 ) (12.8 )
Other 13.5 18.2
Total
operating activities 319.3 309.6
Investing
activities: Purchases of capital assets (46.6 ) (43.3 )
Payments for acquisitions (270.9 ) (213.0 )
Proceeds from
company-owned life insurance policies 4.1 4.0
Other 2.7
1.2
Total investing activities (310.7 ) (251.1
)
Financing activities: Net change in debt, including
debt redemption costs 116.8 65.9
Dividends (58.7 ) (59.8
)
Share repurchases (55.2 ) (59.9 )
Shares issued under
employee plans 9.1 5.9
Other (7.7 ) (0.5 )
Total
financing activities 4.3 (48.4 )
Effect of exchange rate
change on cash 1.3 (9.2 )
Net change in cash and cash
equivalents 14.2 0.9
Cash and cash equivalents: Beginning of
period 62.4 61.5
Cash and cash equivalents:
End of period $76.6 $62.4
During the first quarter of 2016, we elected to adopt Accounting
Standards Update No. 2016-09, Improvements to Employee Share-Based
Payment Accounting. Among other things, this standard requires that
excess tax benefits related to share-based compensation be reported
as operating activities in the statement of cash flows. Prior to
2016, they are reported as financing activities. This change
resulted in a $4.7 million increase in cash provided by operating
activities for the year ended December 31, 2016. In addition, the
standard requires that employee taxes paid when an employer
withholds shares for tax-withholding purposes be reported as
financing activities in the statement of cash flows. We previously
reported these cash outflows as operating activities. The
consolidated cash flow statement for the year ended December 31,
2015 has been revised to reflect this change.
DELUXE CORPORATION SEGMENT INFORMATION
(In millions)
(Unaudited)
Quarter Ended December 31, 2016
2015 Revenue: Small Business
Services $318.3 $303.7
Financial Services 125.5 120.3
Direct Checks 36.4 39.5
Total $480.2
$463.5
Operating income:(1)
Small Business Services $58.0 $54.4
Financial
Services 22.3 22.3
Direct Checks 12.5 14.1
Total $92.8 $90.8
Operating
margin:(1) Small Business Services 18.2 % 17.9 %
Financial Services 17.8 % 18.5 %
Direct Checks 34.3 %
35.7 %
Total 19.3 % 19.6 %
Year Ended
December 31, 2016 2015 Revenue:
Small Business Services $1,195.8 $1,151.9
Financial
Services 500.0 455.4
Direct Checks 153.3 165.5
Total $1,849.1 $1,772.8
Operating income:(1) Small Business Services
$208.8 $203.9
Financial Services 106.8 91.5
Direct
Checks 53.1 58.9
Total $368.7
$354.3
Operating margin:(1) Small
Business Services 17.5 % 17.7 %
Financial Services 21.4
% 20.1 %
Direct Checks 34.6 % 35.6 %
Total 19.9 %
20.0 %
The segment information reported here was calculated utilizing
the methodology outlined in the Notes to Consolidated Financial
Statements included in our Annual Report on Form 10-K for the year
ended December 31, 2015.
(1) Operating income includes the following restructuring and
transaction-related costs:
Quarter Ended Year Ended
December 31, December 31, 2016
2015 2016 2015 Small Business
Services $2.0 $2.6 $5.7 $5.3 Financial Services 5.4 1.7 6.6 3.0
Direct Checks 0.2 — 0.4 0.1 Total $7.6 $4.3 $12.7 $8.4
The table below is provided to assist in understanding the
comparability of the Company’s results of operations for the
quarters and years ended December 31, 2016 and 2015. The Company’s
management believes that operating income by segment, excluding
restructuring and transaction-related costs, provides useful
additional information for investors because it provides better
comparability of ongoing performance to prior periods given that it
excludes the impact of items that impact the comparability of
reported operating results and which management believes to be
non-indicative of ongoing operations. It is reasonable to expect
that one or more of these excluded items will occur in future
periods, but the amounts recognized can vary significantly from
period to period and may not directly relate to the Company’s
ongoing operations. The presentation below is not intended as an
alternative to results reported in accordance with generally
accepted accounting principles (GAAP) in the United States of
America. Instead, the Company believes that this information is a
useful financial measure to be considered in addition to GAAP
performance measures.
DELUXE CORPORATION SEGMENT OPERATING INCOME
EXCLUDING RESTRUCTURING AND TRANSACTION-RELATED COSTS
(In millions)
(Unaudited)
Quarter Ended December 31, 2016
2015 Adjusted operating
income:(1) Small Business Services $60.0 $57.0
Financial Services 27.7 24.0
Direct Checks 12.7
14.1
Total
$100.4 $95.1
Adjusted operating
margin:(1) Small Business Services 18.9 % 18.8 %
Financial Services 22.1 % 20.0 %
Direct Checks 34.9 %
35.7 %
Total 20.9 % 20.5 %
Year Ended
December 31, 2016 2015 Adjusted operating
income:(1) Small Business Services $214.5 $209.2
Financial Services 113.4 94.5
Direct Checks 53.5
59.0
Total $381.4 $362.7
Adjusted operating margin:(1) Small Business
Services 17.9 % 18.2 %
Financial Services 22.7 % 20.8 %
Direct Checks 34.9 % 35.6 %
Total 20.6 % 20.5 %
(1) Reported operating income reconciles to
operating income excluding restructuring and transaction-related
costs as follows:
Quarter Ended
Year Ended December 31, December 31,
2016 2015 2016
2015 Reported operating income $92.8 $90.8 $368.7 $354.3
Restructuring and transaction-related costs: Small Business
Services 2.0 2.6 5.7 5.3 Financial Services 5.4 1.7 6.6 3.0 Direct
Checks 0.2 — 0.4 0.1 Total 7.6 4.3 12.7 8.4 Adjusted operating
income $100.4 $95.1 $381.4 $362.7
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170126005185/en/
Deluxe CorporationEd Merritt, 651-787-1068Chief Financial
Officer, Treasurer and VP of Investor Relations
Deluxe (NYSE:DLX)
Historical Stock Chart
From Jul 2024 to Aug 2024
Deluxe (NYSE:DLX)
Historical Stock Chart
From Aug 2023 to Aug 2024