Deluxe Highlights Transformation and Path to Sales-Driven Growth at Analyst and Investor Day
February 25 2020 - 7:00AM
Business Wire
Reaffirms 2023 financial goal to achieve $2.3
billion of revenue
Provides overview of new segment structure and
strategy to grow revenue
Introduces new executive leadership team to
investors
Shares new brand and go-to-market strategy
Today in New York City, Deluxe (NYSE: DLX) is hosting its very
first Analyst and Investor Day with its new leadership team. More
than 100 analysts and investors will join President and CEO Barry
McCarthy, and the entire Deluxe executive leadership team (ELT), to
learn more about the Company’s “One Deluxe” strategy. The company
is also providing a 2020 and 2023 financial outlook in its new
segmentation format, which is reflected in the table included later
in this release.
“The Deluxe of today is a dynamic fintech company, and we are
excited to showcase our One Deluxe vision and our broad portfolio
of products and services that support customers throughout their
lifecycle,” said McCarthy. “In fundamentally changing the way we go
to market; we have positioned Deluxe to deliver sales-driven
revenue growth for the long term.”
“We have been building on our heritage as the original payments
company by expanding our platform of offerings far beyond the
markets we historically operated in. With our strong leadership
team in place, Deluxe is poised to capitalize on the tremendous
opportunity presented by our massive customer base of approximately
4.5 million small businesses, over 4,000 financial institutions and
many of the world’s largest consumer brands,” McCarthy
continued.
In early 2019, Deluxe began a strategic transformation to become
a Trusted Business Technology™ company. Under the guidance of
McCarthy, who joined the company in late 2018, Deluxe has been on a
journey to fundamentally change the way it operates, moving from a
traditional manufacturing “company of companies” to a more
tech-forward “company of products.”
McCarthy announced a new corporate strategy to focus on four key
businesses: Payments, Cloud Solutions, Promotional Solutions and
Checks. Today’s event will include a series of presentations by the
Deluxe ELT to discuss in greater detail these four businesses.
Deluxe will also unveil a new logo and go-to-market strategy,
including the Company’s brand promise to champion businesses so
communities thrive.
The formal presentations will begin at 8:00 am (EST) and will
conclude at approximately 12:00 pm (EST). A webcast of the live
audio portion of the event and the accompanying presentation slides
will be accessible at https://www.deluxe.com/investor-relations/. A
replay of the webcast will be available following the event and
accessible from the corporate website.
Full Year 2020 Outlook
First Quarter 2020
Outlook
Revenue
Adjusted EBITDA
Revenue
Adjusted EBITDA
($ millions)
($ millions)
($ millions)
($ millions)
Deluxe Total
$2,000 - $2,040
$410 - $435
$490 - $505
$85 - $95
Full Year 2019
Full Year 2020 Outlook
2020-2023 Estimate
2023 Estimate
Revenue
Adjusted
Adjusted
Compound
Adjusted
Revenue
EBITDA
Revenue
EBITDA
Annual Growth
EBITDA
($ millions)
Margin %
($ millions)
Margin %
Rate %
Margin %
Deluxe Total
$2,009
23.9
$2,000 - $2,040
n/a
n/a
Low-to-Mid 20s
Payments
270
27.5
316 – 322
High Teens to Low 20s
Upper Teens to Mid 20s
Mid-to-High 20s
Cloud Solutions
318
25.9
302 – 312
Low-to-Mid 20s
Mid-Single Digits
Low-to-Mid 20s
Promotional Solutions
641
15.6
632 – 646
Mid-Teens
Low-Single Digits
Mid-to-High Teens
Checks
780
51.2
750 – 760
Mid-to-High 40s
Contract Mid- Single Digits
Mid-40s
Corporate Costs % of Revenue
n/a
8.7
n/a
7.5 – 9.5
n/a
Mid-Single Digits
Information regarding the Company's new segment structure can be
found in the Company's Current Report on Form 8-K furnished to the
SEC on February 25, 2020. The reconciliation of Adjusted EBITDA for
2019 to net income can be found in the Company's Annual Report on
Form 10-K for the year ended December 31, 2019.
Note that the Company has not reconciled adjusted EBITDA margin
outlook guidance for the first quarter of 2020, full year 2020 and
2023 to the directly comparable GAAP financial measure because the
Company does not provide outlook guidance for net income or the
reconciling items between net income 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
measure is not available without unreasonable effort. The probable
significance of certain of these items is high and, based on
historical experience, could be material.
About Deluxe Deluxe is a Trusted Business Technology™
company that champions business so communities thrive. Our
solutions help businesses pay and get paid, accelerate growth, and
operate more efficiently. For more than 100 years, we’ve been
helping businesses succeed at all stages of their lifecycle, from
start-up to maturity. Our unparalleled global scale supporting
approximately 4.5 million small businesses, over 4,000 financial
institutions and hundreds of the world’s largest consumer brands
uniquely positions 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/deluxecorp.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200225005148/en/
Cameron Potts, VP of Corporate Communications 651-233-7735
cameron.potts@deluxe.com
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