*Second quarter saw 16.5% revenue growth; 9.9% excluding contribution from First American
*Solid growth in all four business segments
*Significant revenue realized from cross-selling into First American; demonstrates power of One Deluxe model
*Improved cash balance and liquidity even with historic acquisition of First American acquisition during the period
Deluxe (NYSE: DLX), a Trusted Payments and Business Technology™ company, today reported operating results for its second quarter ended June 30, 2021.
“We are now clearly a payments company delivering sales-driven growth. Our robust second quarter results further validate the strength of our team, strategy and execution,” said Barry McCarthy, President and CEO of Deluxe. “Our sales engine is delivering, and the strategic acquisition of First American has nearly doubled the size of our Payments business and accelerated our growth. During the quarter, the company as a whole benefited from the economic recovery, and new wins helped propel growth in all four segments – Payments, Cloud Solutions, Promotional Solutions and Checks. Additionally, data driven marketing, part of our Cloud segment, benefited from our customers’ acceleration of future planned marketing spend.”
McCarthy continued, “While we had anticipated that acquiring First American would provide numerous cross-sell and growth opportunities, the actual results have exceeded our initial forecast. The Deluxe halo of customer trust, sales reach and financial strength helped First American generate double-digit revenue growth in the second quarter, well above its historical average. Within days of closing, First American had dozens of new, Deluxe-sourced leads, and closed several new deals while continuing to expand our pipeline.”
“The execution of our growth strategy, combined with a favorable macroeconomic environment, led to our improved performance,” said Scott Bomar, Senior Vice President and Chief Financial Officer of Deluxe. “With 16.5% revenue growth, and 9.9% revenue growth excluding First American, we are clearly seeing positive momentum in our business.”
Second Quarter 2021 Financial and Segment Highlights
*Revenue was $67.8 million higher than the previous year. All four segments experienced year-over-year revenue growth. Not including the First American acquisition, which closed on June 1, 2021, revenue increased $40.5 million, or 9.9 percent year-over-year.
*The Payments segment delivered revenue growth of 43.1 percent over the previous year, $27.3 million of which was from First American.
*Net income of $12.1 million includes $15.9 million of costs related to the First American acquisition during the quarter.
*Cash flow from operations for the first half of 2021 was $83.8 million and capital expenditures were $46.6 million. Free cash flow, defined as cash provided by operating activities less capital expenditures, was $37.2 million, a decrease of $45.4 million as compared to 2020, largely attributable to capital investments this year and costs related to the First American transaction.
details at: https://www.deluxe.com/about/news/news-releases/