Deluxe Highlights Multi-Year Strategy, Value Creation Drivers and Execution Focus at Investor Day
05 Dezembro 2023 - 8:00AM
Business Wire
Details North Star Initiative to Drive
Incremental $100 Million
of Run-Rate Free Cash Flow by 2026
Reaffirms 2023 outlook
Provides 2024 guidance, signaling continuation
of strong operating leverage
Shares line of business strategies, including
growth outlook through 2026
Details execution plans via enterprise-wide
North Star program
Today in New York City, Deluxe (NYSE: DLX), a Trusted Payments
and Data company, is hosting its Investor Day featuring members of
the company’s executive leadership team (ELT). Analysts and
investors will join President and CEO Barry McCarthy and the ELT,
both in-person and via live webcast, to learn more about the
company’s plans to drive sustained profitable organic growth and
increased free cash flow through 2026 via the recently-introduced
North Star multi-year execution plan.
The formal presentations will begin at 8:30 am (EST) and will
conclude at approximately 11:30 am (EST). A webcast of the live
portion of the event and the accompanying presentation slides will
be accessible at www.investors.deluxe.com. A replay of the webcast
will be available following the event and accessible from the
corporate website.
The company will reaffirm its existing guidance for 2023 and
provide preliminary guidance for 2024, forecasting comparable
adjusted EBITDA and comparable adjusted EPS growth to outpace
revenue growth rates, consistent with both year-to-date Q3’23
results and its 2023 outlook, as follows (all figures are
approximate):
Preliminary 2024 outlook:
- Revenue of $2.14 to $2.18 billion
- Adjusted EBITDA of $400 to $420 million
- Adjusted EPS of $3.10 to $3.40
- Free cash flow of $60 to $80 million
The company will also provide estimates for the results of
operations for its businesses through 2026 as follows:
Revenue
Adjusted EBITDA Margin
2023 - 2026 Compound
Annual Growth Rate %
2023
2026
Total Deluxe
0% - 3%
19%
21%
Merchant Services
7% - 10%
20%
22% - 23%
B2B Payments
3% - 7%
16%
22% - 25%
Data Solutions
6% - 10%
21%
20% - 23%
Print
(1%) - (5%)
33%
33%
Information regarding the company's anticipated updated segment
structure (effective starting in 2024) can be found in the
company's Current Report on Form 8-K to be filed with the SEC on
December 5, 2023, including furnished exhibits.
Note that the revenue outlook guidance for 2024 does not include
revenue from the payroll business, which the company has decided to
exit. Because customers are expected to convert to alternate
providers throughout 2024, the company is not able to estimate this
revenue. The company has also not reconciled the adjusted EBITDA,
adjusted EBITDA margin, adjusted EPS or free cash flow outlook
guidance to the directly comparable GAAP financial measures because
the company does not provide outlook guidance for net income or 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.
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. 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, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231205804747/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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