Deluxe(DLX)2025-04-30 20:21Financial Performance - Reported revenue for Q1 2025 increased by 0.3% to $536.5 million, while comparable adjusted revenue rose by 1.4% to $536.5 million[4]. - Net income improved to $14.0 million, a 29.6% increase from $10.8 million in Q1 2024, driven by cost management and lower restructuring expenses[4]. - Comparable adjusted EBITDA increased by 3.4% to $100.2 million, with a comparable adjusted EBITDA margin of 18.7%, up 40 basis points year-over-year[4][9]. - GAAP diluted EPS rose to $0.31, a 29.2% increase from $0.24 in the previous year, while comparable adjusted diluted EPS improved by 4.2% to $0.75[4][9]. - Adjusted EBITDA for Q1 2025 was $100.2 million, slightly down from $100.5 million in Q1 2024, with an adjusted EBITDA margin of 18.7% compared to 18.8% in the previous year[24][28]. - Adjusted diluted EPS for Q1 2025 was $0.75, slightly down from $0.76 in Q1 2024, indicating stable earnings performance despite fluctuations in expenses[26]. Cash Flow and Debt Management - Free cash flow for Q1 2025 increased significantly by $18.1 million to $24.3 million, compared to $6.2 million in Q1 2024[4][18]. - The company reported a total operating cash flow of $50.3 million for Q1 2025, compared to $26.6 million in Q1 2024[18]. - The company’s net debt decreased to $1,462.3 million from $1,468.7 million, reflecting ongoing debt reduction commitments[16]. - Total debt as of March 31, 2025, was $1,492.6 million, a decrease from $1,503.1 million as of December 31, 2024[31]. - Net debt as of March 31, 2025, was $1,462.3 million, down from $1,468.7 million at the end of 2024, reflecting a slight improvement in financial leverage[31]. - The company continues to focus on free cash flow as a critical metric for funding strategic investments and servicing debt obligations[33]. Revenue Growth and Segments - Revenue growth was observed across all operating segments, with Data Solutions revenue increasing to $77.2 million from $59.7 million in Q1 2024[20]. - Comparable adjusted revenue for Q1 2025 was $536.5 million, up from $529.0 million in Q1 2024, showing a year-over-year growth of 1.3%[28]. Operational Efficiency - Restructuring and integration expenses for Q1 2025 were $8.4 million, down from $14.8 million in Q1 2024, suggesting improved operational efficiency[24][26]. - Management emphasizes that adjusted EBITDA and adjusted EBITDA margin are key indicators of the company's value and operational performance[23]. Outlook and Dividends - The company maintained its full-year 2025 outlook ranges, which include revenue guidance of $2.090 to $2.155 billion and adjusted EBITDA of $415 to $435 million[6][9]. - The Board of Directors approved a quarterly dividend of $0.30 per share, payable on June 2, 2025[7].