• Revenue increased 5.9% year-over-year, primarily due to the Financial Services segment which grew 14.1% and includes the results of Datamyx LLC and FISC Solutions which were acquired in the fourth quarter of 2015, as well as growth of 4.8% for the Small Business Services segment. Revenue from marketing solutions and other services increased 19.4% year-over-year and accounted for 31.3% of consolidated revenue in the quarter. • Gross margin was 64.2% of revenue, compared to 64.8% in the first quarter of 2015. Unfavorable product revenue mix and increased delivery and material costs were partly offset by price increases early in the quarter, an increase in service margins and improvements in manufacturing productivity. • Selling, general and administrative (SG&A) expense increased 3.2% from last year primarily due to additional SG&A expense from acquisitions, but was partially offset by continued cost reduction initiatives in all segments. SG&A as a percent of revenue was 43.9% in the quarter compared to 45.0% last year. • Operating income increased 8.6% year-over-year and includes restructuring and transaction-related costs in both periods. Adjusted operating income, which excludes these items, increased 9.1% year-over-year from higher revenue and continued cost reductions.
Deluxe Corporation announced recently the hiring of two key positions at the company’s executive level. Barry McCarthy, Deluxe’s President and CEO created the new role of Chief Strategy Officer and hired a new Chief Human Resources Officer for the 104-year-old company.
“These roles are absolutely critical to the transformation of Deluxe to a tech-enabled solutions company,” McCarthy said. “We are positioning ourselves to seamlessly meet the evolving needs of our customers for the next 100 years, and these leaders bring new points of view we can use to build on our already significant expertise at Deluxe.”
Amanda Parrilli, Chief Strategy Officer
Parrilli will lead Deluxe’s strategic marketplace analysis and play a critical role in setting the go-to- market strategy to drive profitable revenue growth. Most recently, Parrilli served on the Home Services leadership team at The Home Depot. Over the course of her 17-year career, she has also spent time working in the payment industry with Citigroup and First Data Corporation. Parrilli holds bachelor’s degrees in business administration and economics from Trinity University and a master’s degree in business administration from Harvard Business School. Parrilli started at Deluxe in February and is based in the company’s Atlanta office.
Jane Elliott, Chief Human Resources Officer
Elliott will lead the enterprise human resources function, playing a strategic role in developing people and aligning the organization to Deluxe’s business strategy. Elliott brings a wealth of experience to Deluxe, specifically in creating cultures of collaboration, accountability and communication that inspires high performance. Most recently, she served as an Executive Vice President and Chief Administrative Officer at Global Payments. She has more than 20 years of experience in payment technology including nine years at First Data. Elliott started at Deluxe in April and will be based in both Atlanta and the company’s headquarters in Shoreview, Minnesota.