Segment Realignment

Effective for the quarter ended March 31, 2024, Deluxe Corporation (the "Company") reorganized its reportable business segments to align with changes in its organizational structure that better reflect its portfolio mix and offerings. The Company's new reportable segments are Merchant Services, B2B Payments, Data Solutions and Print.

Supplemental Financial Information

The Company is providing updated historical financial information in the attached schedule to enhance its shareholders' ability to evaluate the Company's historical financial information under the new segment structure. The schedule provides unaudited, recast business segment revenue and adjusted EBITDA for fiscal years 2023 and 2022 and quarterly information for each of the quarters within fiscal year 2023. The Company did not operate under the new segment structure during these periods. The methodology utilized to determine segment operating performance did not change, and information regarding this methodology is provided in the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

The recasting of previously issued financial information does not represent a restatement of previously issued financial statements and does not affect the Company's reported net income, earnings per share, total assets or shareholders' equity for any of the previously reported periods, nor does it reflect any subsequent information or event, other than as required to reflect the segment reorganization described above. Quarterly amounts for fiscal year 2023 may not sum to the full year amount due to immaterial rounding differences.



DELUXE CORPORATION
SEGMENT INFORMATION
(In thousands)
(Unaudited)

Year Ended December 31, Quarter Ended
2023 2022 Mar. 31, 2023 June 30, 2023 Sept. 30, 2023 Dec. 31, 2023
Merchant Services:
Revenue $364,233 $347,709 $89,105 $91,467 $87,984 $95,676
Adjusted EBITDA 74,399 70,760 18,427 17,300 17,393 21,280
B2B Payments:
Revenue 299,196 307,117 75,196 76,341 74,581 73,078
Adjusted EBITDA 62,034 71,242 13,475 15,192 16,074 17,293
Data Solutions:
Revenue 211,788 196,707 44,353 59,301 64,080 44,053
Adjusted EBITDA 46,281 44,833 10,256 13,382 15,317 7,325
Print:
Revenue 1,261,283 1,276,775 314,040 324,517 304,282 318,444
Adjusted EBITDA 400,942 399,045 95,201 104,770 98,044 102,926
Total reportable segments:
Revenue $2,136,500 $2,128,308 $522,694 $551,626 $530,927 $531,251
Adjusted EBITDA 583,656 585,880 137,359 150,644 146,828 148,824
All other:(1)
Revenue 55,760 109,702 22,671 20,060 6,917 6,113
Adjusted EBITDA 25,926 30,132 9,803 8,239 4,130 3,756
Total segments:
Revenue $2,192,260 $2,238,010 $545,365 $571,686 $537,844 $537,364
Adjusted EBITDA 609,582 616,012 147,162 158,883 150,958 152,580

(1) Includes businesses sold during 2023 and 2022, including the web hosting, logo design, strategic sourcing and retail packaging businesses, and the payroll and human resources services business, which the Company is currently in the process of exiting.

Total segment adjusted EBITDA reconciles to consolidated income (loss) before income taxes as follows (in thousands):

Year Ended December 31, Quarter Ended
2023 2022 Mar. 31, 2023 June 30, 2023 Sept. 30, 2023 Dec. 31, 2023
Total segment adjusted EBITDA $609,582 $616,012 $147,162 $158,883 $150,958 $152,580
Corporate operations (192,447) (197,882) (46,726) (50,511) (49,068) (46,143)
Depreciation and amortization expense (169,703) (172,552) (43,520) (42,607) (38,857) (44,718)
Interest expense (125,643) (94,454) (30,016) (31,932) (32,034) (31,662)
Non-controlling interest 107 135 28 26 26 27
Restructuring and integration expense (90,475) (63,136) (14,094) (27,477) (29,364) (19,540)
Share-based compensation expense (20,525) (23,676) (5,866) (5,484) (4,539) (4,636)
Acquisition transaction costs - (130) - - - -
Certain legal-related (expense) benefit (2,195) 730 (429) 183 (1,949) -
Loss on sale of investment securities (1,323) - - - - (1,323)
Gain (loss) on sale of businesses and long-lived assets 32,421 19,331 - 21,942 (4,324) 14,803
Income (loss) before income taxes $ 39,799 $ 84,378 $ 6,539 $ 23,023 $ (9,151) $ 19,388

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Deluxe Corporation published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 10:43:10 UTC.