DLX - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen thank you for standing by and welcome to the Deluxe Second Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode and today's conference call is being recorded.

We will begin with opening remarks and introductions. At this time, I would like to turn the conference over to your host Vice President of Investor Relations, Tom Morabito. Please go ahead sir.

Tom Morabito

welcome Deluxe and earnings quarter operator call. you to second the XXXX Thank

today's McCarthy, Financial is Chief me remarks, call Joining on questions. take Barry end today's and Bomar, we will the Executive Scott our our At Chief Officer. of prepared Officer; and President

in other we as synergies; or divestitures the that that financial actual projections, risks forward-looking this company's to Litigation of results the Payments to performance of estimates, acquisitions expectations recent without acquisitions projections. about seen to and including any Before materially and produce future future be our acquisition in slide, to the strategy like not are intentions, would and any these begin American risks could XXXX. regarding as does results that everyone anticipated management's the and company's risks Private or Act remind the uncertainties limitation uncertainties from Reform not subject comments related risk or These risk Any on defined I consummated. the nature First will made today or COVID; or differ Systems are comments cause Securities of

that from ended our factors our about information filings. and SEC contained XXst, to Form differ in cause Additional XXXX results projections XX-K actual December for may year in is the other company

to presentation, comparable press will our non-GAAP of regarding under including you measures the EBITDA adjusted disclosures non-GAAP release, cash our the measures In GAAP. will measures financial including the the call today, our discuss most reconciliations additional US we On and free filings these find flow. measures SEC, and with

Barry. to over it turn I'll Now,

Barry McCarthy

Thanks Tom morning and good everyone.

credit a two our as the the XX of Scott leadership in with to members. tremendous pleasure company's has Depot impact program. team. us would who the unit my our Vice a responsibility operational business significant payments is addition included Home served and credit President also card for like private-label The Deluxe experience roles to Treasurer and acceptance spent particularly our transformation. four financial and success. his work over X,XXX Previously with a continued I One Keith years to it's Scott Keith team begin, Scott next CFO, approximately thank recently card in ago. joined former Payments and welcome visibility serving most new our of hard Vice implemented dedication which Home wish I Bomar, variety months Bush historic CFO at high $X he we month and leaving and Senior be Before the as for as will over Deluxe years last and Services, billion President, Deluxe him strategy nearly

XX I share past quarter perseverance second grit for over our I of the share my first Deluxers want am Before impressive how and to I results, their proud fellow months.

for every Our the dug day our unlocking in progress team team great delivered COVID transformation. Despite our incredible of customers. challenges, making the and is potential

solid year-over-year our acquisition major by Turning American experienced in Payments' second now was American XX.X% segments promotional XX% revenue for quarter First as and results. of increases. All growth growth including payments, growth sales-driven solutions, and driven cloud, four delivered nearly First Payments well the businesses. We Deluxe as all Systems. to checks performance

data-driven history Cloud's branded led growth You acquisition June. with the was driven solutions by business. will our First business in was and essentials. closed largest in marketing American recall we company's merchandise our addition completed that Promotional the of by

driven growth competitive by While wins. new check's and checks was business

strategy is Our working.

are One we on executing quarter is our strategy the further evidence across Deluxe performance board. The second

midpoint First what include highlights including the American, year-over-year. liquidity I Adjusted the X%. at XX.X% First then sequentially. up impact with EPS improved revenue the improved XX%. many to from strong quarter history acquisition We was the of margin $XXX XX.X% of we Consolidated million. As Not we cash and times quarter million American, Despite in say $XXX the million, our up was EBITDA nearly do said our before, our do following; of a we're going liquidity and the what balance ended $XXX largest revenues guidance. we were Adjusted say. of

On the last remain to we sales performance. sales on year's exceed pace front, record

Our largest go-to-market the One of results more approach Deluxe over decade. past wins top the strong addition two showing is with the to XX

the to One on XX the largest the deals capability, the history. over of we've seven closed in since we our put point sales the a of XX Deluxe two decade finer company So, largest past quarters of approach, last and started

it wins, our in course deals certainly time these give will to implement outlook. confidence the but Of take us

Moving some highlights. segment on to

prospects. integrated businesses We the is payment with platform segment major payments These year-over-year. potential seeing upside for largely great history. First continue American HR XX% about future an especially fast-growing user business Since solution, our and all exchange. payables Deluxe with Deluxe. We another in our be and and a its tremendous businesses outperformed strongest payment services HR includes the experienced was Deluxe as goals. has modern improved of and exchange portfolio of the in to of management our driven a First area Similarly, medium-sized offering to been addition Our by HR payroll to going new knew and experiencing businesses announced recently our payroll the growth and one been which even optimistic a has we XX-year small periods which are acquisition expectations and experience. medical our their significant be acquisition, to exceeding very offers American growth lofty we the This

As real millions over succeed. reach customers halo and us world's Deluxe leading of and and halo American we've the trust and effect The Deluxe third our XXX have thousands financial strength. calls, includes: First brands; hundreds of on is our second businesses, for helping first of sales the small FIs it's years; other mentioned to

with years. we've customers, Deluxe trust active on This We're close American very dozens relationships future. and with Our engagements to combined securing to is institutions financial the to the of for encouraging for products like for able These quickly only building other time. sales were products and sales teams evidence solid received. in the are transactions halo. early at this several place in were FIs, First the bring prior in payables payroll, merchant Deluxe not momentum with for and receivables transaction unsolicited and We're services in the services, adding providing we've pleased not same customers the but inquiries other to pipeline of had

several Deluxe recently Arvest billion Checks owned Another financial in in been Arvest. and a payment had services One to a branches the $XX One additional decades power over providing with Deluxe for will example product. three with of secured contract we assets. customer XXX an privately Arvest, Payments, of Deluxe institution by new be

segments. Now, had increased source. of Checks Arvest lead bringing This all both interest of the very of improving a buys XX.X% our four year-over-year One Deluxe among business our demand shows every of our or data-driven Solutions in Cloud several as our continued best as of large a rates quarter, low business the existing by led the and financial business several drove strong of power DDM Deluxe power marketing our products customer to partners.

from XXXX, impressive more would Cloud's Excluding XX%. in business even to closer coming exits have been growth

is and is The strategy data mortgage our diversify strategy core working. to verticals. before, said we've beyond As our banking

select and recently to business to residential top clients acquire example, in markets. For signed and deregulated deal a partner a new with retail we identify electricity provider

and international by showed Our website rates. services driven also exchange our resiliency business favorable

perform corporation Our services continue well. very to

Merchandise to on Solutions Now Promotional both Branded Solutions Promotional XX.X% improved our well. Essentials segment. performed as Business and

routine in other economy. As their that forms a custom operations. This consistent reminder, well overall rebounding and Business Essentials businesses products with is where consume we business is deliver the

Brand further see as quarter. these was story. with up cross-selling-enabled impacted a example ramped the the The of also key Arvest our and US, of win quickly quarter their this ADT we customers' are revenue customers' recurring the Branded marketing platform easily revenues. strategy partner wins The and is our shift recurring in eighth Promo to and training recovery then manage use to in Arvest new now wins DBC to hire return. company in Promotional deal promotional our last And converting This only quarter. announced multiple key as leading simply the into will order DBC events a properties. another relationship key in our growth Solutions' largest sale. for makes by items department commercial and relationship and promotion win in-person and to Center PNC to to web utilizing offering which Deluxe great activities programs. expect also onetime security model for us We Deluxe components Promo. second tools. model. rather a products access such and was collateral Merchandise, second marketing platform is marketing to employees And key Expanding needs positively to Deluxe bank the Relationships our PNC gets shifting customized its a provide for platform These our or than apparel integrated a highlight integrated DBC the

Finally, to business due year-over-year, business profitable growth our largely cash-generating improved solid Checks X.X% highly checks. from

wins a While several we competitive Bank wins financial M&T occurred helping a decline, five secure top-tier renewal continue to of in top to impacts. regional for Checks those assets. leading the in sector FI in is secular institutions mitigate and Key across FI terms including

other generate proud are debt. cash Checks deploy a businesses which enable reduce four and in for transformation winning superiority of flow very our and momentum. outstanding deliver engine, businesses cash to sheet protect and growth summary, free data we're share strength keep strong the our In of our invest first product and will and to leads All role play to market progress. Checks low-cost we positive also balance showing Our Deluxe. our our us payments flow. strategic very

First helping acquisition than even is performing and expected more. halo the strategic better Our American Deluxe is

sales our cross-selling results momentum encouraging are real. Our is and

clearly become team, robust a our payments quarter and of growth. We our second overall further promise validate company the delivering are sales-driven And execution. fulfilling strategy strength our results to

Now I'll who on our financial will Scott to details performance. turn provide more over it

Scott Bomar

forward Thank good I'm and meeting everyone. looking Barry, all person months. of in you, in to coming you the morning,

pleased quarter with Barry improved to our strong results execution due second our As we mentioned, and marketplace conditions. are

EPS and revenue margin American $X.XX, as up drive First grew adjusted EBITDA Promotional the efficiencies EBITDA On the an in at strength the at structure. net during due the the $XX.X XX.X%, while million, post-COVID-XX the year-over-year. quarter. acquisition income moving to within in to to year-over-year robust on net Adjusted XX.X% posted the through enterprise $XX.X First reported GAAP Not go revenue We We revenues or the impacted of $XXX.X in American $XX.X share including was related million income GAAP for up $XXX.X year-over-year. per by of million million, Let's segments. highlights to million, up healthy year-over-year. quarter. growth adjusted total of continued and segments, $X.XX the Solutions X.X% to at Cloud basis, remained team before cost X.X% in XX.X% came came quarter margin operating

Turning stand-alone sales-driven $XXX.X the second our quarter segment American grew details. now year-over-year growth revenue to acquisition Deluxe. impacted of for XX.X% by Payments largely and to million, First

American, Payments First revenues increased X.X% year-over-year. Excluding

American's First Deluxe. to in due and quarter strong core Payments addition down all to adjusted XX.X% increased performance IT, in mentioned, points margin XX.X%, that American, In the growth sales we Barry XXX adjusted EBITDA investments EBITDA was and basis marketing our businesses. standalone in Including First increased experienced for

of to growth deliver has our Payments single-digit growth. deliver First expect addition than revenue ability revenue continued scale. segment Checks more business our the rivals sales-driven in With and reflecting doubled high Longer-term, segment to size Payments we our and a now rate, American, the

by several for our data-driven Solutions hard spend. range Segment QX. year XXX strong was $XX.X increased a recovering comparison. year-over-year rebound improved X.X% year expect points in quarter periods, providing marketing XX% margin that marketing adjusted during cost will the XX.X%, data-driven In Cloud increased quarter margins by EBITDA economy quarter. management. the to a the continue of remain QX, year. Cloud in the second last strong million full prior highlighting Cloud's a benefit to hit We to signed in Cloud marketing favorable and particularly EBITDA to which adjusted also and clients quarter revenue continues the future low had XX.X% COVID Overall, from in execution. us to very new nice sequentially from our with versus strong benefit increased basis driven see solutions, We ongoing the

growth visibility good our have campaigns we to expect pace of on planned of result, a in being do institution basis. the to spending XXXX, We customers. see by moderate the XXXX, of reported we remainder revenue marketing second half the expect as the on and a financial mid-single-digit For

XX.X%, margin range We low healthy up in partner of quarter in the due XXX in business. anticipated strength growth early wins range. $XXX for expect improved are X.X% low- mid-XX% mid-teens, to in the the quarter XXXX, XXXX second the XXXX from the line in was cost up the last anticipating of Cloud initiatives, XX.X% PPE Adjusted Including we adjusted Solutions EBITDA and the in top XXXX new Promotional margins to sequentially. impact to revenue checks X.X% realization second alleviate declines basis year-over-year remain single-digit in and million, sales non-recurring and was consolidation year as quarter and the second the XXXX. EBITDA Check's to helped margins value business part and revenue in actions taken competitive $XXX.X million increased secular points.

largely the EBITDA One continued XX.X%, new anticipate last from of point won decline decline year. infrastructure at is the in renewal in as strong although high rates first from the adjusted levels inflation to continued Deluxe by XXXX in digits checks full a and be as the half Second for XXX Based on to product margin low we and quarter year, and improvements XXXX, this basis mix. well driven business increases single

ended $X.XX company in the net of history. and billion, responsibility team. of another million, which due our improvement $XXX.X leadership occurred up American Turning $XXX with it result ended $XXX largest the both the in million, to while sheet we including liquidity up the acquisition of discipline year-over-year. cash debt We were to million and closed now pleased We even First strong cash is think We're of quarter balance the level a with given of with this the flow. transaction. the from quarter demonstration financial We

As a unsecured facility replaced a included as our growth. reminder, previous notes and we revolving facility to and robust with $XXX a senior for million offering future credit this more flexible allow

times. year increased ratio adjusted this this target expect times debt per at net strategic long-term our of leverage with X.X to turn least by a to ratio While three to we EBITDA X.X quarter, lower

financial within less capital First to for another demonstration was cash commitment debt, flow Importantly of delever. cash Free transaction, of by closing discipline days XX activities, in we provided retired the our July, of million operating American $XX as defined expenditures and last $XX.X investments The million First $XX.X costs million tax the related first CARES in transaction, relative due the prior of Act decrease was decrease XXXX, to year. capital of a deferrals year. from primarily half to and the XX% American higher

XX outstanding be dividend all the of a per September $X.XX on record shares. will August X, repurchase The common in on of XXXX. approved Board not dividend quarterly share to all shareholders We Our regular payable stock did XXXX on second quarter.

pay our return reminder, growth, are invest dividend, priorities allocation and As a our capital to responsibly to debt in value reduce our shareholders.

We opportunistic future purchases on will basis. evaluate an

to guidance. now Turning

we're today First our include promised, XXXX expectations American. updating As to

inflation. issues things, subject COVID-XX labor XX guidance as unknowns The reminder, other assumes potential transaction variant, Delta As continued April on constraints, a to supply among closed a and recovery announced the including well and chain supply we June the X. is and economic the with as the on associated macroeconomic pandemic

year exiting XX% growth with growth to adjusted XX% we revenue of revenue mid-single with X% fourth the the now full in XXXX, growth of X% excluding and XX%; First digits; to being following: the and American quarter quarter XX%. For than adjusted margin EBITDA expect third; between million of To year XX% approximately continue and include to position million an as pleased expenditures tax capital stronger second growth $XX I'm long-term important First results. for the of the investments on Deluxe with rate American; with to $XXX we we summarize, the

questions. We is on now to and strong the Operator, experiencing One ready executing strategy our are believe momentum. Deluxe we're take company

Operator

the Instructions] from & Christine Company. line first question Sidoti [Operator of Your with comes Karout

Christine Karout

stepping for my from taking the strong Chris is quarter. in Congrats Sidoti. thanks for McGinnis. This question. Karout And on Hi. I'm Christine

question -- first to just I wanted ask is, So

Barry McCarthy

Christine. Good morning,

Christine Karout

Good morning. Good morning.

First is big offerings? already you has has And the to the prospective you question had few to customers that how to just them? because with announced first talking good wanted now it what it acquisition So ask a I the of Payments your and it about positive you are and months way been American that with your customers surprise work changed seems

Barry McCarthy

our a I to see and our have company. And be us made. a customers we're our to not the we commitment calling of and appreciate a directly have as very acquisition customers company are that saying and our a American, us been And we've company. about become cement going that Payments think that First salute to of in us investing in were been new payments position we pleased we move our becoming with had there before honestly pipeline as opportunities the seen result payments

talk they also can for midsized on paid, a to business whether gives and get they're them and opportunity we treasury whether a to get think they're solution help growth. holistically the pay a the how help it them to I about small have to customer optimize whether a customers side, our get us paid, business, are we business, paid, pay their

So it's been the go about extraordinary very, given the to back future We're an to the our our customers has by tell story reception. terrific. Deluxe pleased very reception us and and opportunity

I there cross-sell we're into to payment our great days great solution to opportunity XX think initial -- results. broader a think going set seeing At even we're customers. is seeing we more it, just even forward, our of

Christine Karout

Sounds good.

there, changed wanted last have the into that the about in with success obviously, currently cross-selling I DLX? with years has the are -- from not conversations taking had to I changes place just given but industry two So are notice? so people clients how are taken ask And working have that over the

Barry McCarthy

a businesses. inbound we help inquiries small a say, gotten You has We a succeed. of marketplace noticed. millions customers we And how business as result, know unsolicited could X,XXX absolutely of about years. number XXX what been trusted over has have support for brand Deluxe the Christine would a and I bank

is Deluxe of company Deluxe the been the a a led for the I payments marketplace. that's of both it's is what has conversations. our very variety and I clarifying, it think in and that new changed think customers And in really marketplace non-customers to us perspective

thousands way small have having I said or conversation engage in given customers one our companies us go more for another it's customers Deluxe businesses. fortune product, not are of with not in FI millions in as of a good for customers, I think we the are of those that But to portfolio. that

partners what to Deluxe First to So we're the products customers customers And first Deluxe First to and opportunity our plus – not XXX bank minus fruits able the are giving just to small to those we for example, is payroll XXX,XXX First American American sell access American, Deluxe us or customers. seeing take cross-sell that we're has customers, the push XXX,XXX and example before. channel into have take, products well to business as American First we but is for to product didn't and on where that that able to

talk strong First and that have reception we and where going conversations broader we're been this trusted these The both we're more fact very it financially the a talked what of that about. to American on to So have been I way we brand even have is the incredible we customers and brand halo, it's our distribution us a has about XXX -- a that have we and significant. notion doing of has fact that we to talked And that we're for a the things gives Deluxe years have with about -- trusted real. channels

Christine Karout

right. All Okay.

you the offering the here, ability or on what Payments, marketplace? it anything need expand is the software to from question upgrades compete within offerings? to the be to missing expand are you that last opportunity So And

Barry McCarthy

closing transaction, were we perceived the when Christine, what announced gap. we our American said as we First largest we

when incorporate, you the that a have get didn't -- business us when important have help a is one them if customers that you a things web have to they get when we buy a paid get can't that on paid. they -- from a then, design, decide web beginning don't But most because of host. business. solution a way when when is decide interested they logo, obviously when do get at they they in, the a We they on And

acquisition have time, And couple I the see First would what plugging the of we performance of think American, hole. expect for a with with speaks could assets that itself. criteria. sort market-leading So a I asset Over were and done and that to think that of is we you us look meet we add think

one that first it add The would our to of products. scale existing is Payments

So it allowing add would for accretion. scale

new thing would second markets. The be or specifically new capabilities,

So And can we then, there of things market it, a there believe opportunistic we no. But gap if we of business to can lens all course that -- answer an that important the for have we you places We capability be think to growth we driving aggressively. customers will be most wanted imagine we to there look on of us existing today, that and market the chase and a of more outstanding organically go we new going the go to could serve was put very fine opportunities. for that thing was of do and as point driven there get decided to we'll are do needed, as is I inorganically, additional a to decisions a shareholder would major segment, and we where ingredient expand would those number make But -- with some the is better. grow a value. obviously the

Christine Karout

great. Okay,

growth, outlook the new the the So hurdles to revenue that the year given the at and biggest variant now to see thinking about an outlook? year full you what inflationary exit do mid-single-digit as expectation for delta environment, achieve and the

Scott Bomar

Scott. this question. for Thanks Christine, the is So

right marketplace We're shape, sure and outlook respond even feel our happening. that lot pressures, if inflation, built based our current But we shifts to environment. in concerns comfortable monitor the we to in them things continue accordingly. are we'll in And happen, lots on So in Certainly, feel we're a good make and still we of certainly not macroeconomic stable a chain there immune supply now, of environment. the outlook those. like

Christine Karout

Okay. Good.

by just wins for my How segment. And in the is what is growth the going new And of frequency customers? share in use Checks much driven quarter market gains maybe last existing the forward? continued from question versus so, is opportunity

Barry McCarthy

we just in Christine, consumption of some checks the part checks, period. business are we would I of more of in particular of you, which checks ongoing return Obviously, a the well. we normal conducted, operation in of commerce written. some business. from when some period wins have there more And checks in consumed new there's had as had But being more both the tell also did But is the recovery. being benefit are

One real that helping our is has we of the to new ability things market the check think our that a been great standout from Deluxe solidify flow in win business. share, cash

As ago. bank years we Canada, we know, customers in have customers -- two you had didn't

Now, of banks Canada we our leading have customers. in two that are the

largest of believe We to consumers. of non-bank the have the what checks is, reseller won -- we reseller direct

in simple. won number Checks? that really have we of sides why It's winning have business. We massive quite are Checks bank both combinations in our And of a scale led to wins

We have superior product. demonstrably a

-- we We continue the our was institutions do of financial have Deluxe, safety to the COVID And that and margins make situation. running financial strength been when quality for responsibly that can a strength. the investing quality and our product some us stability of to team our financial of management were really of of -- our number of the our maintain the to crisis, we because highlighted That the really for our in time. sure of

our that to and And win for us in at which answer while A through our market of we and gives think First cash delever, addition we allows be time -- far to opportunity we to the even to with flow, share payments new any of growth we we still in go We things up -- win for business. ability in us don't sector. share. attractive payments to there's more verticals business to comes more non-profit our continuing great that number like American have investing that confidence our get us. are some cloud gains So than

the cloud it's a a to overall, and is things company's us the piece runway in doing business, performing Checks of data. and So do well payments, we're core giving great

Christine Karout

question. Thank the thank for had. quarter. great. you congrats and on you. I Okay, all again That's Barr taking Scott, my And

Barry McCarthy

Thank you. Great.

Scott Bomar

Thanks, Christine.

Operator

question comes Strauzer next line Charlie Your with from of CJS. the

Charlie Strauzer

morning. Good Hi.

Barry McCarthy

Hey, Charlie. Good morning.

Charlie Strauzer

today? everyone How’s doing

Barry McCarthy

Proud our We’re report. doing great. of

Charlie Strauzer

Excellent.

talk the Also, the Just the of back if about thoughts guidance. cash bit flow give half then some expense a of maybe could high-level for of think as about more like we bit on D&A the year. housekeeping help in Maybe a should well. little you just and the the interest little how year segments and terms us for some

Scott Bomar

Sure. Sure, Charlie.

with start me guidance. Let

for So adjusted can which about guidance XX% the feel a and First American we're pretty the our first of that including XX% to half, XX%, sort coming out of XX% EBITDA, is Midpoint to you is we good in how mid. second get so think the half.

in there perspective. the something total to of there, confident We out put from guidance company but are suggesting QX, we be that QX will than still so mindful be stronger a

to flow, which factors relates did that of The biggest levels. cash in forward. returned it is, QX repeat expenditure don't couple have free going capital normal As we onetime a to of we've

on returning perform. And numbers you If details we we've more within expect dig flow to if back a And levels. half levels of to to will free cash there's each could segment pulled so traditional view, CapEx can that segment, for we specific broken significantly, in how prefer? to you standard from XXXX, there you more question into recall, if out QX the model guide, flow the out back of we the year so numbers and that -- a cash some traditional a sort think return then

Charlie Strauzer

No.

are for each of building looking your guidance? the you what just at in get four segments, segments to Just assumptions all to

Scott Bomar

thing one rate a $X.XX share. will -- it the obviously between impact perspective, the from the half. have inclusion perspective, -- EPS we’ll the First adjusted impact is a $X.XX payments modestly the So, be about for and kind on dilutive second we adjusted call have is meaningful half of I And biggest would EBITDA of guidance that a American out of

performing expecting some compares we're contemplate main decline line in rates. normalization then, single of We've for again, that I growth but Promo, And some full XXXX low mid-single-digit think we is year, we quarter anticipating the in business referenced a the had are as for low in low single the very XH. Cloud, favorable to last digits. very segment. had digits. -- QX, of overall again, well, Checks, the really but top that's the sales strong the factor a year Payments to a

Barry McCarthy

is of, to Scott, impact $X.XX American just expense. that. income and And American $X.XX from half offset we're be will clear in Charlie, to getting kind you, growth sort be about debt First of the math for First a little just from debt by the the associated with of expense

Charlie Strauzer

Got it.

And should interest we think expense, how the full I'm for so, about year? sorry

Scott Bomar

Yes.

a carefully. be look, the should on got able interest model you be So, you've the expense structure, to debt there the we'll pretty details issuing new --

the modify American First the Let the to of net offset me and fully expense what said, Barry income the debt of incremental contribution will half profitability essentially from transaction.

Charlie Strauzer

full well? Got any on as D&A it. do the for the have And also thoughts you year

Scott Bomar

for our again, typically a D&A, to guide $XXX but capital we're $XX to to going expenditure of year. level normalized the rates, don't return million We to million

Charlie Strauzer

temperature with on kind the more in business just enthusiasm you if economy. their of And terms the a customers bigger Got just of it. recovery could small picture, Thanks. Barry, of of then, the the --

small that the to when talk at your got we've groups? temper spikes enthusiasm thoughts that causing business some that could what looking that your are Now you're you Delta variant,

Barry McCarthy

see So see give anecdotal seeing in on perspective nicely. then the have very And it the that data I we the of also in you to the some that in expansion. products directional rebounding seeing just in business Essentials Checks new and and business things we're our we're business volume. seeing overall can consumption our some we Business marketplace. the But ongoing can economy that both also used in are operation based starts. and of the in it And ongoing our Payments We're you product

see landscape. small So we across recovery can the general business nicely

associated found last ways certainly to business means. mask angst and of what time their general is managing small is other different about small model modify most COVID have But think what businesses think there think I March feels in than of situation. this businesses the many Delta mandates I issues year, with that light I in variant the

hopeful And that the a dramatic or expecting Scott quickly And so impact is and we're think, from we not of on that we going of And all I expect factored is will this already to But a passes a Delta that change today. what back the challenges that think is are handle shared. equipped relatively half. there result as we sort is into are macro -- to perhaps better modest Delta. be any happen modest guidance businesses impact modeling those but

Charlie Strauzer

Are terms Got it. office? putting in then see just the working -- And to keeping back returning in -- plans still people work-from-home back of fully place the lastly back be are you just are people or and to situation office, from excited you to again in home? you

Barry McCarthy

lose perseverance single facilities without We our resiliency making that we the people Obviously, sure speaks in one you is effective think a for it's our not operated we as priority grit and really in that had production shareholders the healthy also our question. keep simultaneously delivering of I crisis, COVID company. of And and top the really concern pandemic day did and thank doing Charlie the the production through our proven but the values core a safe. through which for course of stop. to that

to that to the more in teams in than believe about professional -- we can often we our later than hybrid teams this and September very with apart. forward fundamentally we when the more staff so return Now mean that together our a expecting inflexible them be Minneapolis the be back expect become going we've not. our our an collaboration We will gradual tech model in know doesn't teamwork month. while and will office in public done of Atlanta to -- will much office can be been we get new in office, we be power and have and talk to we the And be that headquarters a center opening to But getting employer. we our

be we to doing are employer We of everything can an choice.

right another And environment. office-based step listen I scientists the an of make about we last think point just I on to the of the we absolutely and do intention here sure it's and be the So here. government we it's thing into in. and to financial will leadership We back advice our but course responsible the will back Charlie proof step the think would that to thing, you the discipline tell stewardship team

obsolete much huge had thousand that savings that's During a XX in same and Atlanta. real that to capital multiple Minneapolis And give our acres to accidentally for hundred and we're in more expense space square we us estate corporate And a feet avoiding efficient going is retrofitting estate a had change on to appropriately impact footprint. of the downtown operating crisis, the we sold, true facility. and decided had moving campus real our

And consolidate City we'll which First our we footprint of based we're and of headquarters. with a core calling of our get folks in so hubs, logical is there efficient course is Atlanta on a is tech the site very use opportunity big there Minneapolis course very great Kansas way. our production and we a over what American got to site Worth focused now add in time folks concentration our Fort

Charlie Strauzer

lot. for a questions. Thanks Thanks my taking

Operator

the floor Mr. there time like to no to would remarks. this for questions. are closing further I Morabito, At turn

Tom Morabito

Angie. Thanks,

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Operator

conference participating for in you Thank today's call.

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Deluxe (DLX) 8 Aug 212021 Q2 Earnings call transcript