- Third quarter revenue increased 21.1%; up 2.3% excluding
contribution from First American
- Solid growth in Payments, Cloud, and Promotional Solutions
- First American continues to exceed expectations with
cross-selling initiatives well underway
- Declared regular quarterly dividend
Deluxe (NYSE: DLX), a Trusted Payments and Business Technology™
company, today reported operating results for its third quarter
ended September 30, 2021.
“The scale of our Payments business now rivals our legacy Check
business, confirming Deluxe is a Payments company. Our One Deluxe
go-to-market strategy is working across all our businesses,
providing full company organic growth during the third quarter. We
are well-positioned to deliver on the fourth quarter and drive
momentum into 2022,” said Barry McCarthy, President and CEO of
Deluxe. “We are particularly encouraged by the performance of
recently acquired First American, as well as our payroll and
digital payments businesses. Cloud Solutions also performed well,
improving 9% year-over-year, Promotional Solutions experienced
growth and Checks’ rate of decline was better than long-term
industry trends."
“We are pleased with our third quarter results which were
in-line with expectations, and, as anticipated, were impacted by
lingering Covid impacts, inflation and other macroeconomic
factors,” said Scott Bomar, Senior Vice President and Chief
Financial Officer of Deluxe. “As a reminder, last year's third
quarter was positively impacted by Covid-related cost savings
initiatives, and other one-time items. We have continued to
effectively manage costs during the period while continuing to
deliver sales growth. We expect to see improvements in free cash
flow in the fourth quarter and beyond, which will allow us to
invest in growth, as well as continue to de-lever our balance
sheet."
Third Quarter 2021 Financial and
Segment Highlights
(in millions, except per share
amounts)
3rd Quarter 2021
3rd Quarter 2020
% Change
Revenue
$532.1
$439.5
21.1
%
Net Income
$12.5
$29.4
(57.5
%)
Adjusted EBITDA
$102.7
$102.5
0.2
%
Diluted EPS
$0.28
$0.70
(60.0
%)
Adjusted Diluted EPS
$1.10
$1.47
(25.2
%)
- Revenue for the third quarter was $92.6 million higher than the
previous year. Not including the First American acquisition, which
closed on June 1, 2021, revenue increased $10.1 million, or 2.3%
year-over-year.
- The Payments segment delivered revenue growth of 114.6% over
the previous year to $160.3 million, $82.5 million of which was
from First American.
- Net income of $12.5 million includes $11.9 million in
acquisition amortization from the First American acquisition, as
well as increased interest expense associated with the
transaction.
- Adjusted EBITDA margin was 19.3%, down 400 basis points from
the prior year due to planned technology investments, inflationary
pressures, product mix, and one-time items.
- Cash flow from operations for the third quarter was $65.4
million and capital expenditures were $34.5 million. Free cash
flow, defined as cash provided by operating activities less capital
expenditures, was $30.9 million, an increase of $11.6 million from
the second quarter of 2021, and a decrease of $10.7 million
compared to the third quarter of 2020, largely attributable to
capital investments this year.
- Total debt outstanding decreased from $1,833.4 million as of
June 30, 2021 to $1,776.2 million as of September 30, 2021. Net
debt was $1,655.1 million and liquidity was $433.6 million as of
September 30, 2021.
2021 Outlook
The company continues to expect the following for full year
2021:
- Revenue growth of 10 to 12%
- Excluding First American, revenue growth of 0 to 2%
- Adjusted EBITDA margin between 20 and 21%
- Capital expenditures of $95 to $105 million
- Adjusted tax rate of approximately 25%
The guidance outlined above includes First American and assumes
a continued economic recovery and is subject to, among other
things, the macroeconomic unknowns associated with the COVID-19
pandemic, including the Delta variant, as well as anticipated
continued supply chain constraints, labor supply issues, and
inflation.
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 6, 2021 to shareholders of record as of market closing on
November 22, 2021.
Earnings Call Information
An open-access conference call will be held today at 8:30 a.m.
ET (7:30 a.m. CT) to review the financial results. Listeners can
access the call by dialing 1-833-282-0028 (access code 8389754). A
presentation also will be available via a webcast on the investor
relations website at www.investors.deluxe.com. Alternatively, an audio
replay of the call will be available after 11:30 a.m. ET and
through midnight on November 11, 2021 by dialing 1-800-585-8367
(access code 8389754).
About Deluxe Corporation
Deluxe, a Trusted Payments and Business Technology™ 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
more than $2.8 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 government restrictions or similar directives on our
future results of operations, our future financial condition and
our ability to continue business activities in affected regions;
the impact that further deterioration or prolonged softness in the
economy may have on demand for the company’s products and 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 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 related to the company’s acquisition of First
American Payment Systems, including integration-related risks;
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; 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; risks of unfavorable outcomes and the costs to
defend litigation and other disputes; and the impact of
governmental laws, regulations or investigations. 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, 2020, as
updated in the company's Form 10-Q for the quarter ended June 30,
2021, 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 INCOME (LOSS)
(in millions, except per share
amounts)
(Unaudited)
Quarter Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020(1)
Product revenue
$302.3
$298.8
$907.6
$908.2
Service revenue
229.8
140.7
544.0
428.1
Total revenue
532.1
439.5
1,451.6
1,336.3
Cost of products
(111.0
)
(108.4
)
(330.9
)
(332.8
)
Cost of services
(133.1
)
(66.1
)
(298.3
)
(206.0
)
Total cost of revenue
(244.1
)
(174.5
)
(629.2
)
(538.8
)
Gross profit
288.0
265.0
822.4
797.5
Selling, general and administrative
expense
(239.3
)
(198.9
)
(685.6
)
(634.6
)
Restructuring and integration
expense
(12.3
)
(18.9
)
(38.0
)
(57.0
)
Asset impairment charges
—
(2.8
)
—
(101.7
)
Operating income
36.4
44.4
98.8
4.2
Interest expense
(21.5
)
(5.1
)
(35.5
)
(18.3
)
Other income
2.3
2.2
6.4
8.5
Income (loss) before income
taxes
17.2
41.5
69.7
(5.6
)
Income tax provision
(4.7
)
(12.1
)
(20.7
)
(13.7
)
Net income (loss)
12.5
29.4
49.0
(19.3
)
Non-controlling interest
—
—
(0.1
)
(0.1
)
Net income (loss) attributable to
Deluxe
$12.5
$29.4
$48.9
($19.4
)
Weighted average dilutive
shares
43.0
42.0
42.7
42.0
Diluted earnings (loss) per
share
$0.28
$0.70
$1.13
($0.48
)
Adjusted diluted earnings per
share
1.10
1.47
3.62
3.70
Capital expenditures
34.5
15.6
81.1
42.7
Depreciation and amortization
expense
41.9
28.0
102.9
83.1
EBITDA
80.6
74.6
208.0
95.7
Adjusted EBITDA
102.7
102.5
290.7
269.7
(1)
The statement of net loss for the nine
months ended September 30, 2020 has been revised from amounts
reported in the prior year to correct an error in the amount of
goodwill impairment charges in the first quarter of 2020, which
were previously understated by $3.8 million, or $3.6 million net of
tax. Further information is provided in the Company's Form 10Q for
the quarter ended June 30, 2021.
DELUXE CORPORATION
CONSOLIDATED CONDENSED BALANCE
SHEETS
(dollars and shares in
millions)
(Unaudited)
September 30,
2021
December 31, 2020(1)
September 30, 2020(1)
Cash and cash equivalents
$121.1
$123.1
$310.4
Other current assets
446.5
383.5
367.5
Property, plant & equipment
129.7
88.7
80.7
Operating lease assets
58.4
35.9
40.5
Intangibles
515.9
246.8
234.8
Goodwill
1,435.5
703.0
703.0
Other non-current assets
299.1
261.2
239.5
Total assets
$3,006.2
$1,842.2
$1,976.4
Current portion of long-term
debt
$57.2
$—
$—
Other current liabilities
483.7
411.8
378.9
Long-term debt
1,719.0
840.0
1,040.0
Non-current operating lease
liabilities
49.8
28.3
30.9
Other non-current liabilities
138.6
48.7
42.6
Shareholders' equity
557.9
513.4
484.0
Total liabilities and shareholders'
equity
$3,006.2
$1,842.2
$1,976.4
Net debt
$1,655.1
$716.9
$729.6
Shares outstanding
42.6
42.0
41.9
Number of employees
6,389
6,185
6,388
(1)
The 2020 balance sheets have been revised
from amounts reported in the prior year to correct an error in the
amount of goodwill impairment charges in the first quarter of 2020
and the third quarter of 2019. Goodwill impairment charges in the
first quarter of 2020 were previously understated by $3.8 million,
or $3.6 million net of tax. Goodwill impairment charges for the
third quarter of 2019 were previously understated by $30.1 million,
or $23.9 million, net of tax. The correction of these errors
impacted the amounts reported for goodwill, other non-current
assets and liabilities and shareholders' equity. Further
information is provided in the Company's Form 10-Q for the quarter
ended June 30, 2021.
DELUXE CORPORATION
CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
Nine Months Ended September
30,
2021
2020(1)
Cash provided (used) by:
Operating activities:
Net income (loss)
$49.0
($19.3
)
Depreciation and amortization of
intangibles
102.9
83.1
Asset impairment charges
—
101.7
Prepaid product discount
payments
(27.0
)
(24.9
)
Other
24.3
26.2
Total operating activities
149.2
166.8
Investing activities:
Payment for acquisition, net of cash,
cash equivalents, restricted cash and restricted cash equivalents
acquired
(956.7
)
—
Purchases of capital assets
(81.1
)
(42.7
)
Proceeds from facility sales
2.7
9.7
Other
(1.2
)
1.3
Total investing activities
(1,036.3
)
(31.7
)
Financing activities:
Net change in debt, net of debt
issuance costs
931.3
156.5
Proceeds from issuing shares
16.0
3.1
Dividends
(38.7
)
(38.1
)
Share repurchases
—
(14.0
)
Net change in customer funds
obligations
14.9
(9.4
)
Other
(11.9
)
(4.7
)
Total financing activities
911.6
93.4
Effect of exchange rate change on cash,
cash equivalents, restricted cash and restricted cash
equivalents
(0.8
)
(3.3
)
Net change in cash, cash equivalents,
restricted cash and restricted cash equivalents
23.7
225.2
Cash, cash equivalents, restricted cash
and restricted cash equivalents, beginning of year
229.4
174.8
Cash, cash equivalents, restricted cash
and restricted cash equivalents, end of period
$253.1
$400.0
Free cash flow
$68.1
$124.1
(1)
The 2020 statement of cash flows has been
revised from amounts reported in the prior year to correct an error
in the amount of goodwill impairment charges in the first quarter
of 2020, which were previously understated by $3.8 million, or $3.6
million net of tax. Further information is provided in the
Company's Form 10-Q for the quarter ended June 30, 2021.
DELUXE CORPORATION
SEGMENT INFORMATION
(In millions)
(Unaudited)
Quarter Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Revenue:
Payments
$160.3
$74.7
$343.0
$223.9
Cloud Solutions
69.5
63.8
199.8
193.6
Promotional Solutions
130.3
124.9
389.8
385.7
Checks
172.0
176.1
519.0
533.1
Total
$532.1
$439.5
$1,451.6
$1,336.3
Adjusted EBITDA:
Payments
$31.6
$16.7
$71.1
$50.4
Cloud Solutions
19.0
16.4
55.0
45.5
Promotional Solutions
17.7
21.5
56.8
46.5
Checks
77.2
85.0
241.0
258.4
Corporate
(42.8
)
(37.1
)
(133.2
)
(131.1
)
Total
$102.7
$102.5
$290.7
$269.7
Adjusted EBITDA Margin:
Payments
19.7
%
22.4
%
20.7
%
22.5
%
Cloud Solutions
27.3
%
25.7
%
27.5
%
23.5
%
Promotional Solutions
13.6
%
17.2
%
14.6
%
12.1
%
Checks
44.9
%
48.3
%
46.4
%
48.5
%
Total
19.3
%
23.3
%
20.0
%
20.2
%
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, 2020.
DELUXE CORPORATION RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (in millions) (Unaudited)
Note that the company has not reconciled the adjusted EBITDA or
adjusted effective income tax rate outlook for full year 2021 to
the directly comparable GAAP financial measures because the company
does not provide outlook guidance for net income or pretax income
or the reconciling items between these GAAP measures and adjusted
EBITDA. Because of the substantial uncertainty and variability
surrounding certain of these forward-looking reconciling items,
including asset impairment charges; restructuring, integration and
other costs; and certain legal-related expenses, a reconciliation
of the non-GAAP financial measure outlook guidance 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 AND ADJUSTED EBITDA
Management discloses EBITDA and Adjusted EBITDA 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, certain items, as presented below, that may not
be indicative of current period operating performance. In addition,
management utilizes Adjusted EBITDA 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 or Adjusted EBITDA to be substitutes for
operating income or net income. Instead, management believes that
EBITDA and Adjusted EBITDA are useful performance measures that
should be considered in addition to GAAP performance measures.
Quarter Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020(1)
Net income (loss)
$12.5
$29.4
$49.0
($19.3
)
Non-controlling interest
—
—
(0.1
)
(0.1
)
Interest expense
21.5
5.1
35.5
18.3
Income tax provision
4.7
12.1
20.7
13.7
Depreciation and amortization expense
41.9
28.0
102.9
83.1
EBITDA
80.6
74.6
208.0
95.7
Asset impairment charges
—
2.8
—
101.7
Restructuring, integration and other
costs
13.9
18.9
41.1
59.1
Share-based compensation expense
7.4
6.2
21.8
15.4
Acquisition transaction costs
0.2
—
18.8
—
Certain legal-related expense
(benefit)
0.6
—
1.0
(2.2
)
Adjusted EBITDA
$102.7
$102.5
$290.7
$269.7
(1)
Information for the nine months ended
September 30, 2020 has been revised from amounts reported in the
prior year to correct an error in the amount of goodwill impairment
charges in the first quarter of 2020, which were previously
understated by $3.8 million, or $3.6 million net of tax. Further
information is provided in the Company's Form 10-Q for the quarter
ended June 30, 2021.
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,
2021
2020
2021
2020(1)
Net income (loss)
$12.5
$29.4
$49.0
($19.3
)
Non-controlling interest
—
—
(0.1
)
(0.1
)
Net income (loss) attributable to
Deluxe
12.5
29.4
48.9
(19.4
)
Asset impairment charges
—
2.8
—
101.7
Acquisition amortization
25.2
13.7
55.7
42.0
Restructuring, integration and other
costs
13.9
18.9
41.1
59.1
Share-based compensation expense
7.4
6.2
21.8
15.4
Acquisition transaction costs
0.2
—
18.8
—
Certain legal-related expense
(benefit)
0.6
—
1.0
(2.2
)
Adjustments, pre-tax
47.3
41.6
138.4
216.0
Income tax provision impact of pretax
adjustments(2)
(12.0
)
(9.4
)
(32.3
)
(39.9
)
Adjustments, net of tax
35.3
32.2
106.1
176.1
Adjusted net income attributable to
Deluxe
47.8
61.6
155.0
156.7
Income allocated to participating
securities
(0.1
)
—
(0.1
)
(0.1
)
Re-measurement of share-based awards
classified as liabilities
(0.3
)
—
(0.3
)
(0.8
)
Adjusted income attributable to Deluxe
available to common shareholders
$47.4
$61.6
$154.6
$155.8
Weighted-average dilutive shares
43.0
42.0
42.7
42.0
Adjustment(3)
—
—
—
0.1
Adjusted weighted-average dilutive
shares
43.0
42.0
42.7
42.1
GAAP Diluted EPS
$0.28
$0.70
$1.13
($0.48
)
Adjustments, net of tax
0.82
0.77
2.49
4.18
Adjusted Diluted EPS
$1.10
$1.47
$3.62
$3.70
(1)
Information for the nine months ended
September 30, 2020 has been revised from amounts reported in the
prior year to correct an error in the amount of goodwill impairment
charges in the first quarter of 2020, which were previously
understated by $3.8 million, or $3.6 million net of tax. Further
information is provided in the Company's Form 10-Q for the quarter
ended June 30, 2021.
(2)
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 asset impairment charges and 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.
(3)
The adjustment to total weighted-average
dilutive shares for the nine months ended September 30, 2020 is due
to the net loss reported for the period. The GAAP EPS calculation
for this period excluded a higher number of share-based
compensation awards because their effect was antidilutive.
DELUXE CORPORATION RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (continued) (in millions)
(Unaudited)
REVENUE EXCLUDING FIRST AMERICAN
Because of the magnitude of the First American acquisition,
management views the measure of revenue growth, excluding the First
American acquisition, as an important indicator when assessing and
evaluating the performance of the business and when identifying
strategies to improve performance. This measure of revenue growth
may be expressed as a dollar amount or as a percentage rate. By
excluding the First American revenue, management is able to
evaluate internally-generated revenue, measured by comparable sales
of products and services year-over-year. This measure will be
utilized by management until the acquisition has been under the
company's ownership for at least four full fiscal quarters at the
beginning of a reporting period.
Quarter Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
Total revenue
$532.1
$439.5
$1,451.6
$1,336.3
Less: First American revenue
(82.5
)
—
(109.8
)
—
Revenue excluding First American
$449.6
$439.5
$1,341.8
$1,336.3
Revenue growth excluding First
American
$10.1
$5.5
Revenue growth excluding First American
%
2.3
%
0.4
%
Full Year Outlook
Full Year
2021
2020
Total revenue
$1,979 - $2,014
$1,791
Less: First American revenue
(188) - (193)
—
Revenue excluding First American
$1,791 - $1,821
$1,791
Revenue growth excluding First American
%
0% - 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,
2021
December 31,
2020
September 30,
2020
Total debt
$1,776.2
$840.0
$1,040.0
Cash and cash equivalents
(121.1
)
(123.1
)
(310.4
)
Net debt
$1,655.1
$716.9
$729.6
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.
Free cash flow is limited and 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,
2021
2020
2021
2020
Net cash provided by operating
activities
$65.4
$57.2
$149.2
$166.8
Purchases of capital assets
(34.5
)
(15.6
)
(81.1
)
(42.7
)
Free cash flow
$30.9
$41.6
$68.1
$124.1
DELUXE CORPORATION RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (continued) (in millions)
(Unaudited)
LIQUIDITY
Management defines liquidity as cash and cash equivalents plus
the amount available for borrowing under our revolving credit
facility. Management considers liquidity to be an important metric
for demonstrating the amount of cash that is available or that
could be readily available to the company on short notice. This
financial measure is not a substitute for GAAP liquidity measures.
Instead, management believes that this measurement enhances
investors’ understanding of the funds that are currently available
to the company.
September 30,
2021
December 31,
2020
Cash and cash equivalents
$121.1
$123.1
Amounts available for borrowing under
revolving credit facility
312.5
302.3
Liquidity
$433.6
$425.4
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211104005137/en/
Tom Morabito, VP, Investor Relations 470-607-5567
tom.morabito@deluxe.com
Cam Potts, VP, Communications 651-233-7735
cameron.potts@deluxe.com
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