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Deluxe Corp (DLX) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Deluxe Corp

HISTORY TOOLS
CIK: 27996 Ticker: DLX
Exhibit 99.1
deluxelogo2015a19.jpg
 
Deluxe Corporation
P.O. Box 64235
St. Paul, MN 55164-0235
(651) 483-7111

Ed Merritt
Treasurer and VP of Investor Relations
(651) 787-1068
October 25, 2018
DELUXE REPORTS THIRD QUARTER 2018 FINANCIAL RESULTS
Deluxe to Announce Successor to Lee Schram as President, CEO and Director on November 6th
Marketing solutions & other services revenue grows to 43% of total revenue
Board increases share repurchase program to $500 million
Declares regular quarterly dividend

St. Paul, Minn. – October 25, 2018 – Deluxe Corporation (NYSE: DLX), a leader in providing small businesses and financial institutions with products and services to drive customer revenue, announced its financial results for the third quarter ended September 30, 2018. Key financial highlights include:

 
3rd Quarter
2018
 
3rd Quarter
2017
 
% Change
Revenue
$493.2 million

 
$497.7 million

 
(0.9
%)
Net (Loss) Income
($31.1 million)

 
$28.8 million

 
(208.0
%)
Diluted (Loss) Earnings Per Share – GAAP

($0.67
)
 

$0.59

 
(213.6
%)
Adjusted Diluted EPS – Non-GAAP(1)

$1.36

 

$1.32

 
3.0
%

(1) A reconciliation of diluted (loss) earnings per share (EPS) on a GAAP basis and adjusted diluted EPS on a non-GAAP basis is provided after the Forward-Looking Statements. Non-GAAP adjustments include restructuring costs, which include integration activities; transaction costs; CEO transition costs; asset impairment charges; a loss on debt retirement; and one-time impacts of accounting for federal tax reform.

Revenue was in the middle of the Company’s outlook range of $489.0 to $497.0 million provided on August 16, 2018 and GAAP diluted loss per share was ($0.67). During the quarter, the Company recognized non-GAAP adjustments of $2.03 per share. Of this amount, $1.59 per share was a non-cash goodwill impairment in the Small Business Services segment primarily in the distributor channel attributable to changes in strategy and in the mix of products and services sold, including declining checks and forms. The Company also recognized non-cash asset impairment charges of $0.34 per share, primarily for the Safeguard® trade name. In addition, charges for restructuring and CEO transition costs totaled $0.13 per share, and the company recorded a benefit of $0.03 per share related to federal tax reform. Adjusted diluted EPS was $1.36 and excluded the aggregate charges of $2.03 per share discussed above. Adjusted diluted EPS exceeded the high end of the range of the July 2018 outlook driven primarily by lower shares outstanding, a lower income tax rate and continued expense management initiatives, partially offset by lower check and forms usage.

The Company also announced today that it has concluded its search for and signed an employment agreement with the successor to Lee Schram as President, Chief Executive Officer and a member of its Board of Directors. This individual will assume these roles effective November 26th. Deluxe has agreed to formally announce the appointment on Tuesday, November 6th as an accommodation to this person’s current employer.

“We delivered a solid quarter,” said Lee Schram, CEO of Deluxe. “We continue to see our transformation taking hold and this was the first quarter that marketing solutions & other services (MOS) revenue was the largest component of revenue, accounting for 43% of total revenue in the quarter. We believe we have established a foundation that will allow us to continue to grow revenue and profitability in MOS for the foreseeable future.”

“We are also pleased to announce the successful conclusion of the search for my successor,” continued Mr. Schram. “This executive, whose appointment received the unanimous approval of the Board, has an exceptional record of developing, building, organically growing and scaling businesses that serve both the financial institution and small business markets. An innovator in FinTech and other technology driven businesses with a strong sales

1
The following information was filed by Deluxe Corp (DLX) on Thursday, October 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Deluxe Corp's Definitive Proxy Statement (Form DEF 14A) filed after their 2018 10-K Annual Report includes:

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Inside Deluxe Corp's 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Consolidated Balance Sheets (Parentheticals) (Unaudited)
Consolidated Balance Sheets (Unaudited)
Consolidated Statement Of Shareholders' Equity (Unaudited)
Consolidated Statements Of Cash Flows (Unaudited)
Consolidated Statements Of Comprehensive (Loss) Income (Unaudited)
(Loss) Earnings Per Share
(Loss) Earnings Per Share (Details)
(Loss) Earnings Per Share (Tables)
Acquisitions
Acquisitions (Details)
Acquisitions (Tables)
Business Segment Information
Business Segment Information (Details)
Business Segment Information (Disaggregated Revenue Information) (Details)
Business Segment Information (Tables)
Consolidated Financial Statements
Debt
Debt (Details)
Debt (Tables)
Fair Value Measurements
Fair Value Measurements (Annual Impairment Analyses) (Details)
Fair Value Measurements (Financial Instruments) (Details)
Fair Value Measurements (Other Non-Recurring Fair Value Measurements) (Details)
Fair Value Measurements (Recurring Fair Value Measurements) (Details)
Fair Value Measurements (Tables)
Income Tax Provision
Income Tax Provision (Details)
Income Tax Provision (Tables)
New Accounting Pronouncements
New Accounting Pronouncements (Asu No. 2014-09 Impact Of Adoption) (Details)
New Accounting Pronouncements (Asu No. 2014-09) (Details)
New Accounting Pronouncements (Impact Of Other Adoptions) (Details)
New Accounting Pronouncements (Policies)
New Accounting Pronouncements (Tables)
Other Commitments And Contingencies
Other Commitments And Contingencies (Details)
Other Comprehensive Income
Other Comprehensive Income (Accumulated Other Comprehensive Loss) (Details)
Other Comprehensive Income (Reclassification Adjustments) (Details)
Other Comprehensive Income (Tables)
Postretirement Benefits
Postretirement Benefits (Details)
Postretirement Benefits (Tables)
Restructuring And Chief Executive Officer Transition Costs
Restructuring And Chief Executive Officer Transition Costs (Details)
Restructuring And Chief Executive Officer Transition Costs (Restructuring Accruals By Year And By Segment) (Details)
Restructuring And Chief Executive Officer Transition Costs (Tables)
Shareholders' Equity
Shareholders' Equity (Details)
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information (Allowances For Uncollectible Accounts, Inventories And Supplies) (Details)
Supplemental Balance Sheet Information (Assets Held For Sale) (Details)
Supplemental Balance Sheet Information (Available-For-Sale Debt Securities) (Details)
Supplemental Balance Sheet Information (Goodwill) (Details)
Supplemental Balance Sheet Information (Intangibles) (Details)
Supplemental Balance Sheet Information (Other) (Details)
Supplemental Balance Sheet Information (Tables)

Material Contracts, Statements, Certifications & more

Deluxe Corp provided additional information to their SEC Filing as exhibits

Exhibit 3.2: Articles Of Incorporation
Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification
Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification
Exhibit 32.1: Section 1350 Certification
Ticker: DLX
CIK: 27996
Form Type: 10-Q Quarterly Report
Accession Number: 0000027996-18-000105
Submitted to the SEC: Fri Oct 26 2018 5:16:58 AM EST
Accepted by the SEC: Fri Oct 26 2018
Period: Sunday, September 30, 2018
Industry: Blankbooks Looseleaf Binders And Bookbindg And Relatd Work

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