Deluxe(DLX) - 2024 Q4 - Annual Results

Revenue Performance - Full year reported revenue decreased by 3.2% to $2,121.8 million, while comparable adjusted revenue decreased by 1.2$2,111.0 million[4]. - Total revenue for the year ended December 31, 2024, was $2,121.8 million, a decrease of 3.2$2,192.3 million in 2023[30]. - Comparable adjusted revenue for the year ended December 31, 2024, was $2,111.0 million, down from$2,136.5 million in 2023, reflecting a decline of 1.2%[30]. Profitability - Full year net income increased by 101.9% to $52.9 million, up from$26.2 million in 2023, driven by cost management and lower restructuring expenses[4]. - Net income for the year ended December 31, 2024, increased to $52.9 million from$26.2 million in 2023, representing a growth of 101.5%[20]. - Full year GAAP diluted EPS was $1.18, compared to$0.59 in 2023, while comparable adjusted diluted EPS improved by 7.9% to $3.26[4]. - The adjusted diluted EPS for the year ended December 31, 2024, was$3.29, a slight decrease from $3.32 in 2023[28]. Cash Flow and Liquidity - Cash from operating activities for 2024 was$194.3 million, with free cash flow increasing by 2.4% to $100.0 million[4]. - Free cash flow for the year ended December 31, 2024, was$100.0 million, compared to $97.7 million in 2023, showing an increase of 2.4$194.3 million, slightly down from $198.4 million in 2023[20]. - The company reported a net change in cash and equivalents of$(148.8) million for the year ended December 31, 2024, compared to an increase of $120.6 million in 2023[20]. - Cash and cash equivalents improved from$(72.0) million in 2023 to $(34.4) million in 2024, indicating a positive change in liquidity[33]. Debt Management - Total debt was reduced by$89.8 million, while net debt decreased by $52.2 million, resulting in a net debt of$1,468.7 million[4]. - Total debt decreased from $1,592.9 million in 2023 to$1,503.1 million in 2024, a reduction of approximately 5.6%[33]. - Net debt decreased from $1,520.9 million in 2023 to$1,468.7 million in 2024, reflecting a decline of about 3.4%[33]. - The refinancing of the debt capital stack during the fourth quarter positions the company to support key growth opportunities in the coming years[3]. Operational Efficiency - Comparable adjusted EBITDA increased by 3.9% to $406.5 million for the full year, with a comparable adjusted EBITDA margin of 19.3$412.1 million, slightly down from $417.1 million in 2023, indicating a decrease of 1.2$2,090 million and $2,155 million, with adjusted EBITDA projected between$415 million and $435 million[13]. - A regular quarterly dividend of$0.30 per share was approved, payable on March 3, 2025[10]. Management Insights - Management considers free cash flow an important indicator for servicing debt and shareholder returns after capital investments[35]. - The company emphasizes that not all free cash flow is available for discretionary spending due to mandatory debt payments and other cash requirements[35]. - Management believes net debt is a valuable metric for assessing financial leverage and overall balance sheet health[32]. - The company aims to consistently compare cash generated by operations through the free cash flow measure[35].