EXHIBIT 99.1
Published on July 31, 2020
Exhibit 99.1
DELUXE CORPORATION
SUPPLEMENTAL UNAUDITED BUSINESS SEGMENT INFORMATION
BASED ON SEGMENT STRUCTURE IN EFFECT
AS OF JANUARY 1, 2020
(in thousands)
REVENUE |
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Total Year |
|||||||||||||||
Payments: |
||||||||||||||||||||
2019 |
$ |
65,150 |
$ |
64,104 |
$ |
64,634 |
$ |
75,685 |
$ |
269,573 |
||||||||||
2018 |
49,357 |
47,613 |
54,748 |
72,828 |
224,546 |
|||||||||||||||
Cloud Solutions: |
||||||||||||||||||||
2019 |
78,288 |
78,914 |
79,976 |
81,205 |
318,383 |
|||||||||||||||
2018 |
74,461 |
77,364 |
81,394 |
74,370 |
307,589 |
|||||||||||||||
Promotional Solutions: |
||||||||||||||||||||
2019 |
155,829 |
155,545 |
156,835 |
172,683 |
640,892 |
|||||||||||||||
2018 |
157,632 |
160,437 |
159,298 |
180,991 |
658,357 |
|||||||||||||||
Checks: |
||||||||||||||||||||
2019 |
199,798 |
195,423 |
192,148 |
192,498 |
779,867 |
|||||||||||||||
2018 |
210,464 |
202,830 |
197,750 |
196,488 |
807,533 |
|||||||||||||||
Total segment: |
||||||||||||||||||||
2019 |
$ |
499,065 |
$ |
493,986 |
$ |
493,593 |
$ |
522,071 |
$ |
2,008,715 |
||||||||||
2018 |
491,914 |
488,244 |
493,190 |
524,677 |
1,998,025 |
|||||||||||||||
ADJUSTED EBITDA |
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Total Year |
|||||||||||||||
Payments: |
||||||||||||||||||||
2019 |
$ |
16,867 |
$ |
17,972 |
$ |
17,199 |
$ |
22,346 |
74,384 |
|||||||||||
2018 |
13,761 |
12,240 |
13,628 |
19,387 |
59,016 |
|||||||||||||||
Cloud Solutions: |
||||||||||||||||||||
2019 |
17,060 |
19,086 |
20,216 |
20,837 |
77,199 |
|||||||||||||||
2018 |
16,292 |
16,744 |
20,210 |
16,730 |
69,976 |
|||||||||||||||
Promotional Solutions: |
||||||||||||||||||||
2019 |
23,590 |
22,288 |
22,909 |
32,507 |
101,293 |
|||||||||||||||
2018 |
24,385 |
24,476 |
24,612 |
32,113 |
105,586 |
|||||||||||||||
Checks: |
||||||||||||||||||||
2019 |
102,234 |
99,871 |
98,782 |
101,776 |
402,662 |
|||||||||||||||
2018 |
108,727 |
108,541 |
101,259 |
96,694 |
415,221 |
|||||||||||||||
Total segment: |
||||||||||||||||||||
2019 |
$ |
159,751 |
$ |
159,217 |
$ |
159,106 |
$ |
177,466 |
$ |
655,538 |
||||||||||
2018 |
163,165 |
162,001 |
159,709 |
164,924 |
649,799 |
|||||||||||||||
Note that the quarterly amounts may not sum to the total year amounts due to immaterial rounding differences. Information regarding the Company's segment reporting can be found under the caption "Note 14: Business Segment Information" in the Condensed Notes to Unaudited Consolidated Financial Statements appearing in the Company's Form 10-Q for the quarter ended March 31, 2020.
The following tables present the reconciliation of total segment adjusted EBITDA to consolidated income (loss) before income taxes:
2019 |
||||||||||||||||||||
(in thousands) |
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Total Year |
|||||||||||||||
Total segment adjusted EBITDA |
$ |
159,751 |
$ |
159,217 |
$ |
159,106 |
$ |
177,466 |
$ |
655,538 |
||||||||||
Corporate operations |
(46,043 |
) |
(41,732 |
) |
(39,770 |
) |
(47,129 |
) |
(174,672 |
) |
||||||||||
Deprecation and amortization |
(32,419 |
) |
(32,517 |
) |
(30,494 |
) |
(30,606 |
) |
(126,036 |
) |
||||||||||
Interest expense |
(9,301 |
) |
(9,239 |
) |
(8,710 |
) |
(7,432 |
) |
(34,682 |
) |
||||||||||
Asset impairment charges |
— |
— |
(390,980 |
) |
— |
(390,980 |
) |
|||||||||||||
Restructuring, integration and other costs |
(6,283 |
) |
(17,693 |
) |
(29,723 |
) |
(25,812 |
) |
(79,511 |
) |
||||||||||
CEO transition costs |
(5,488 |
) |
(1,906 |
) |
(1,145 |
) |
(851 |
) |
(9,390 |
) |
||||||||||
Share-based compensation expense |
(3,291 |
) |
(5,369 |
) |
(5,356 |
) |
(5,122 |
) |
(19,138 |
) |
||||||||||
Acquisition transaction costs |
(177 |
) |
(3 |
) |
(13 |
) |
(22 |
) |
(215 |
) |
||||||||||
Certain legal-related expenses |
(412 |
) |
(6,005 |
) |
— |
(3 |
) |
(6,420 |
) |
|||||||||||
(Loss) gain on sales of businesses and customer lists |
(99 |
) |
— |
(125 |
) |
100 |
(124 |
) |
||||||||||||
Income (loss) before income taxes |
$ |
56,238 |
$ |
44,753 |
$ |
(347,210 |
) |
$ |
60,589 |
$ |
(185,630 |
) |
||||||||
2018 |
||||||||||||||||||||
(in thousands) |
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Total Year |
|||||||||||||||
Total segment adjusted EBITDA |
$ |
163,165 |
$ |
162,001 |
$ |
159,709 |
$ |
164,924 |
$ |
649,799 |
||||||||||
Corporate operations |
(41,614 |
) |
(36,742 |
) |
(31,142 |
) |
(31,004 |
) |
(140,502 |
) |
||||||||||
Deprecation and amortization |
(31,141 |
) |
(32,376 |
) |
(33,406 |
) |
(34,177 |
) |
(131,100 |
) |
||||||||||
Interest expense |
(5,579 |
) |
(6,130 |
) |
(7,244 |
) |
(8,159 |
) |
(27,112 |
) |
||||||||||
Asset impairment charges |
(2,149 |
) |
— |
(99,170 |
) |
— |
(101,319 |
) |
||||||||||||
Restructuring, integration and other costs |
(2,322 |
) |
(6,371 |
) |
(5,104 |
) |
(7,406 |
) |
(21,203 |
) |
||||||||||
CEO transition costs |
— |
(1,530 |
) |
(2,622 |
) |
(3,058 |
) |
(7,210 |
) |
|||||||||||
Share-based compensation expense |
(2,963 |
) |
(2,354 |
) |
(3,100 |
) |
(3,272 |
) |
(11,689 |
) |
||||||||||
Acquisition transaction costs |
(457 |
) |
(600 |
) |
(51 |
) |
(611 |
) |
(1,719 |
) |
||||||||||
Certain legal-related expenses |
(297 |
) |
(631 |
) |
(1,805 |
) |
(7,769 |
) |
(10,502 |
) |
||||||||||
Gain on sales of businesses and customer lists |
7,228 |
3,862 |
1,765 |
2,786 |
15,641 |
|||||||||||||||
Loss on debt retirement |
(453 |
) |
— |
— |
— |
(453 |
) |
|||||||||||||
Income (loss) before income taxes |
$ |
83,418 |
$ |
79,129 |
$ |
(22,170 |
) |
$ |
72,254 |
$ |
212,631 |
|||||||||
Note that the quarterly amounts may not sum to the total year amounts due to immaterial rounding differences.