DLX - Earnings call transcript Q4 2021

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Operator

00:03 Ladies and gentlemen, thank you for standing by and welcome to the Deluxe Fourth quarter and full-year 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. And today's call is being recorded.

We will begin with opening remarks and introductions. 00:19 At this time, I’d like to turn the conference over to your host, Vice President of Investor Relations, Tom Morabito. ahead. go Please

Tom Morabito

operator. and you, to Deluxe the XX:XX year And XXXX quarter full earnings fourth Thank welcome call.

actual risk Financial future Reform Scott risk expectations anticipated Joining strategy today made in limitation like me management's projections, to and American our of and about President First for does year regarding uncertainties we results our Systems remarks, other XX:XX and in in I'd we cause and ended McCarthy, differ Barry XX, filings. acquisition actual projections. the is related will factors that results Chief COVID, the information XX-K risks today's without Bomar, take cause differ or or may be and or as to comments consummated. Private results our the company's XXXX. uncertainties prepared our performance materially of synergies everyone on any not to company's projections recent these XXXX and today's in that comments other slide, from Chief XX:XX our could Form risks as Additional contained Any of from about December These the nature or that call Executive financial company intentions, seen subject SEC forward-looking the risks divestitures will or that Act to acquisitions is are produce the estimates this future not any acquisitions Payment the Officer. to and remind end XX:XX including are defined At Securities Before of questions. Litigation our begin, Officer; on

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

Barry McCarthy

payments strong by XXXX along X segment. short, morning, XX:XX our XX:XX the XXXX margins especially with report Thanks, Deluxe growth works. good American our trusted XXXX this the decade, all Tom. promised and XX:XX in year that full into driven real and and One quarter on model And our first sales We in transformation historic driven for nearly results again affirmed everyone. is a delivered digital sales last XX%. delivered Our was as time we a outcome from in adjusted growth positive technology EBITDA guidance. receivables strong business sales in performance results. over driven payments company First payments of businesses. sales-driven and the During In quarter We and February fourth our and Deluxe was growth

Importantly, our year business payments for revenue XXXX. the revenue as our expect XXX by in history XX:XX our again exceeding equal largest exit year-over-year quarter, American expectations. have the we First time once on the growth XX% first checks as we

year again what follow acknowledge COVID competitive Before business customers was the I XX:XX due their to quarter and primarily challenging a by and new checks. sheet I to driven the checks of XX:XX growth. American implementation accelerating our plugging Halo growth real by benefited strong we're highlights The for work key is First and to was (ph) driven year and my wins go want continued our sales Cloud our Deluxe Deluxe into earlier by was and and benefiting commitment for promotional into more. the their the wins balance the American solid hard customer deep clearly [Deluxer's] Halo, performance year, from One in is relationships. from driven solutions data in model reputation, Deluxe once First marketing, from and

$XXX revenue progress on to the positive be XX.X% line the transformation Revenue X.X%. XX.X%. XX.X%, full was now ongoing not was XXXX EBITDA the our segment billion, our maintaining In highlights was sales and impact will $X consolidated balance XX:XX since XX.X%, which discipline was year last Not American, commitment. and on up For impact year-over-year, down Adjusted a XX:XX the to EBITDA strongest XX:XX to for sheet, significant quarter. on we Moving Now without which to quarterly First their dedication revenue Adjusted XXXX, Our also slightly million, maintained Scott XX.X% happening margin margin financial X%. unwavering year-over-year. performance moment. would of was revenue driven our This was revenue XXXX. a with touch up second was the up was First including up American, highlights. in expectations. from commitment of some year's healthy including in

quarter segment performance For the by American. driven of the XXX% year-over-year, fourth our payments grew First

businesses, particularly receivables, Excluding than HR. our and in First increased growth American, revenue payroll major X% more other with

includes solid growing offering, Payment experience Our XX:XX and Deluxe which year-over-year. Payment to quarter, our service another Medical payables had X% growth. continue Solutions as Exchange Exchange Cloud strong nearly Next, a

successful announced excluding Now exits providing data the of a positively Solutions or Cloud impacted a began the a XXXX. growth for X% in recovery I'd Next, and long-term bond. we're year-over-year, economy take Promotional on after now generating positive to in quarter, growing we benefited bank of multiple a DDM. deal new quarter. marketing the and had to nearly which strong XXXX, providing been as business than cash strong also --recovering XX:XX to Importantly, of wins, The onto very trends. XXXX. continue strategy performance year-over-year, have from just driven a sales our largely a and as in our impacts business our that cloud by example transformation solid had Deluxe great One largest over is significantly industry Solutions we X% better business growth would momentous wins XX% reflect was our improving only Xth client. on-boarding the what PNC PNC check Promotional nation’s nearly products late new from earlier segment. the like checks by XX:XX profitable quarter, performance is business initially Finally, moment XX:XX driven was XXXX

benefits, disbursement As of Deluxe year XX:XX success the reported deals lock products health XX of years. works. moving with deals in for time in for the customers. giving and United solutions investments with that will States XX to Payment goal company XXXX XX:XX sold One focusing in to Deluxe, payments last and strategic for to nearly sales of on the committed beginning of major model key Deluxe payments, of or MPX grow the partnerships closed time electronic consecutive and MPX. sell we of we late growth digitally tech One the in XXXX, payer XXXX, of win In further through of I real proud digitally in we’ve and full the of record In existing get the achieve performance. payers our promise to of the the evidence payments to MPX year during closed the growing years. X key we the became Solution a DPX signed last the XX care largest XX:XX BXB solve of portfolio in We fourth the our the XXXX years for players health This way the Exchange payments, in top with be BXB top are very XX quarter. Since achievement. key our manage win We're [Melio] history. estate was participating payments. XX the financing Payment In digitizes and major sales the businesses wins their company's was saving explanation on one boxes. fourth small Medical I a Deluxe the a was and cloud send and to the quarter, in world. to company more using XX both new payments Deluxe is of deal the approach first Exchange (ph), the when CEO Another me we Melio One during XX:XX to of third Now, customer. large including driven As some checks largest single my let to their mentioned, our receivables some expense business, this This of the customer. our touch fast

our creating test and $XX billion in facilitate third-largest XX:XX with and will members. million recently member announced strategies cheeks help X.X X This were driven solidify Here approach optimization its business able we campaign marketing partnership want Union. strategic marketing to an data also exciting the credit through business, we direct Pentagon recent developments. nation's Credit value to assets with to over Federal union Cloud In analyze contract with responses. significant designed retention

on innovative First, expanded digital Second, premium to this enable new of print new check The away their including The Exchange repeat customers. and collectible faster, has supplier, implement chief quickly from a we're distributors revenue won with Bradford new Solutions us segments installing and products of costs, new of art build high HP with checks, our our fixed investment demand technology. enabled we and have check augment design requirements print of this Exchange. personal will already new products, We opportunities. With and to provides one win capabilities long-term printers a options. XX:XX Bradford check the to checks variety non-bank millions These technology, us Promotional competitor. creating overall largest quality consumer in customer Bradford long-term help manage and

even and acquisitions, highlight platform We history, our are now well positioned to with significant is the consistent in XX:XX in First make American. Another largest more. strategy to meaningful it acquisition XXXX our win

secular American businesses. us and existing gave strong to immediate position leadership markets, growth our an complementary First a

we us earlier, can and future advantage. for real. Deluxe on grow a also mentioned us I XX:XX leverage gain platform American As scale profit and First is Driving positioning growth scheme going which forward. revenue and Halo brought the further

into which balance strong provide deep a and simply foundation it's relationships and Deluxe model customer reputation, for it sheet One works. Our And First American plug excellent trusted working can American First grow. We well. our really strong

mid-single growth business. was historically American low First a revenue digit

growing part XX:XX payroll, First web-hosting our like of First Deluxe American has Additionally, already been a selling our successful products better into and receivables base, digits, HR double which payables, as American magnifying expectations. than their success. One Just is Deluxe, is

full-year closed achieved small American increases Deluxe to year the institutions X,XXX is American. as First X in One to million Deluxe works One significant company year, XX:XX would transformation results, mentioned summary, to we X As institutions, average One the furthering items the of value as half payments real. with success earlier. Cross the company, enterprise level times we per delivered not approximately into across and Deluxe Deluxe transformation and promised. telesales and just and fourth the We and further Halo of order In just normally. the during customers a First our To back in financial the order following. they in delivered wins, financial business many as strong success, our selling quarter I addition is evidence recap, limited

nearly revenue the in sales secular than reported a and growth we us the profitable a driven position. largest revenue. First, declines in strong American, time we decade, in First first with the new more for completed sustainable history XX:XX second full quarter, year giving check acquisition market Second, our replacing

expectations, Halo First is model performing the above the works proving American is Deluxe Deluxe that and well One real.

looking performance. our actively sell and continue who to XXXX what Now We're and said. and do, manage of portfolio. in Fourth, terms we're equal momentum add Scott, revenue, our that grow exit revenue And provide our even labor driven XXXX driving X long XX:XX sales first expect more will financial innovate into through and did transformation. partners and payments we We in what continuing as to said we pressures the and XX:XX on turn in segments the the COVID, we forward milestone new inflationary will our demonstrated I a with would will and payments transformation. we chain growth we all a finally, over fourth business our check to it quarter. we as cloud, in pipeline critical history supply Third, details

Scott Bomar

Thank Barry XX:XX good everyone. you, and morning

highlights year Let's on and for quarter the segments. the the moving consolidated to go through before

Adjusted acquisition American, quarter. the year fourth well related income impacted of quarter, First million For X.X% posted million, inflationary from quarter, by adjusted by share of by fourth XX.X% from mentioned operations. $X.XX and million net came revenue growth. pricing investments also related revenue XX:XX in actions at repatriation adjusted quarter First quarter. expense, tax GAAP interest leverage as American cash XX.X%, to Compared prior from the including quarter offset planned in down year's million, $XX.X of the acquisition. last $XXX.X both at the about operating quarter. pressures, GAAP in per margin to total adjusted up in million net up fourth XX:XX million, an we $X.XX technology We to from incurred of fourth was came as income revenue in was amortization, EBITDA impacted came Fourth reported Canadian EBITDA year's repatriation. $XXX.X XX.X% quarter increased $XX.X We This $XX.X while share $XXX.X EBITDA was expense increased cash included or year-over-year. our it in $X.XX previously in per EPS fourth strong $X.XX the the Fourth at year-over-year. Not impact and last

We at came year-over-year and American. in revenue the total XX:XX end as XX.X%, from was in resulting $X.XX $X.XX billion, posted expense the year-over-year. as of including EPS from up mix. year margin $XX.X acquisition adjusted operations First XXXX. up to to and revenue EBITDA income $XXX.X the in incremental was First year transaction came year's a costs. our GAAP $X.XX amortization, by GAAP The in offset First at down XX:XX net Full-year million high Full billion, due $XX.X On Not million $X.XX $XX.X million per XX.X% the $X.XX, of full interest due of acquisition adjusted adjusted for well was guided we basis, in the business X% American, was of XX.X%, last at EBITDA slightly down from primarily year range. acquisition share or full the For year. reported diluted million American

well As the repatriation share tax the the by incremental impacted mentioned as results, count. cash from in quarterly as higher was Canadian EPS associated with of operations, our

of slightly was acquisition American grew turning Deluxe. million, the details. adjusted American standalone revenue year to $XXX.X segment largely XXX.X% driven by fourth to accretive of quarter our year-over-year First to Payments for EPS. and full sales driven XX:XX growth First Now

increased X.X% First payments Excluding revenue American, year-over-year.

our EBITDA as performance In experienced in addition Including and adjusted increases business, increased First the due sales XXX down strong adjusted well payments American core XX.X% points by partially in to inflationary pressure the we in adjusted slightly quarter. in increased margin to to XX:XX XX.X%, offset EBITDA payments as investments business. growth Barry mentioned, that First basis America price marketing. for and accretive EBITDA lockbox American, was our quarter IT, was margin First

With the double our First in segment American, than payments size. addition has more of

As a an by to Barry acquisition payments mentioned, driven grew the to American Deluxe. year, stand-alone For in growth exit this payments XX.X% we milestone XX:XX again, sales the driven largest we our important revenue is is and by expect equal transformation our for becoming $XXX.X payments company. year-over-year First million, business as checks of Once XXXX. to

X.X% year-over-year. First Excluding increased revenue payments American,

growth EBITDA For EBITDA for single-digit Longer the revenue basis another XX.X%, quarter, Cloud to in year adjusted in high revenue to low segment American, rate adjusted and increased solid the to XX:XX including points. margins increased deliver XX.X% solutions down million XXX First EBITDA term, XXXX X.X% expect and quarter. the payment and be year-over-year margin we had a we XX% expect range. the segment $XX.X adjusted was

with Barry the mentioned the [indiscernible] As and grew a recovering marketing by is spend. driven to seeing are during solutions, businesses solid increased the XXXX excluded, XX% data exited be marketing our earlier, rebound continues which in driven cloud economy quarter.

core [indiscernible] quarters, beyond clients mortgage verticals. will said banking strategy which As diversify data our forward. We we is continue to to in add new business and going in us our benefit XX:XX previous our

to ongoing within cases successful. pilot markets have and have these customer's opportunities use other approach mentioned We campaigns our markets. new major has These target new to existing pilot these programs outperformed leading these and players campaigns been within initial

and markers. new include future business product cloud wins prior QX drive declined investments impact and business the mix basis programs to of the XXX e-commerce Our XX:XX margin country's notably customers and due the points In one within to to year and and adjusted from XX.X% QX, growth telco, EBITDA in segments. largest versus

XXXX business year segment For exited improved again, XX% EBITDA margin excluded, $XXX.X For XXX year. adjusted the year-over-year for the Once cloud XXXX versus million. to XX.X%. during to year, revenue the points cloud prior are cloud XX:XX X.X% increased basis grew

For a growth we revenue XXXX, to digit basis. see mid-single on to expect continue reported

mid-XX% our the up remain We to revenue was XXX Promotional Solutions optimization basis XX.X%, was margins EBITDA XXXX also EBITDA fourth expect Adjusted the to leverage, the low and was up XX:XX sales range. up XXX quarter driven For in up operating for to X.X% year-over-year. fourth healthy for XX.X%, quarter year-over-year. basis X.X% the $XXX.X factors. million, Adjusted due points. $XXX.X was year merchandising margin year, seasonal Solutions Promotional million, points margin revenue

technology to debt EBITDA in a won in including investments, investment year, our are $XXX.X value we basis year. down realization our enabled these by to XX.X%, XXXX. digit due to were initiatives with the transaction. of HP cash assets and declines. We offset $XXX checks EBITDA new American of in a on that Turning XXXX sheet fourth This largely checks secular margin do has anticipating full onboarding year while quarter We Checks the print expect revenue anticipating our and outperformance Fourth our adjusted the the in but related revenue, with expenses in which HP, protect were see due XX:XX range flat high quarter pleased business should pricing customers, wins, levels new low levels renewal were significant better decline top XXX quarter billion, to expected in modest adjusted business. driven note EBITDA declines moving win down and margins and line merchandising the from competitive XXXX. slightly digital and secular also declines flow. optimization. outpaced single dollars results, net demand adjusted planned businesses this margin EBITDA of to year-over-year to very XX:XX impact we actions are to level growth the remained anticipated up year I Checks was flat on last we XX.X%, with and by the from than fourth not partially in XX:XX from in inflation anticipate increased First improved for rates The X.X% and million the XXX balance our new last strength million XXXX, as revenue was new year XXXX million, now help points. last margins the basis secular Based And should $X.XX points. ended and $XXX.X industry over XXXX, XXXX single digits low forward. adjusted

EBITDA debt over in our Importantly, in the financial at the we of fourth XX:XX and and ratio quarter million the further American to discipline net Our quarter. the down year, to $XX million third X.X adjusted was of $XXX since transaction, X.X debt First demonstrating from retired nearly commitment the end times delever. times

approximately long-term fourth the by transaction platform increase million, do was times. as million to planned in with operating fees quarter tech down in was $XX.X defined flow $XXX.X cash capital major the cash Free XXXX up second in well less American as in associated transaction. activities IT meaningfully expenditures quarter, investments the starting year. in free million expect XX:XX First strategic the from We For will $XXX the of fourth cash target to the investments, as of flow as our flow remains due free XXXX. cash year, X.X Our XXXX decrease half million modernization overall provided the in $X.X

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

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

XX:XX attainment expectations for basis, of to now an our future We repurchases our will are to providing deleveraging evaluate XXXX. Turning goals. on opportunistic guidance. we the Today, subject

recovery anticipated macroeconomic As the a is uncertainties pandemic, including guidance, supply assumes year the should added issues to a subject the as Omicron associated to, with help reminder, other that our supply COVID-XX modeling. several partial well variant, components constraints, First among as continued labor guidance continued which more things, prior the the includes economic the XX:XX the and We've you of American, chain with inflations.

are including the of expecting keeping growth For all of XX%, a full American. following, approximate. are Revenue figures X% mind year XXXX, in that we First full to year

XX%. Adjusted full the As a expense the of very be hires, with amortization acquisition the approximately margin outstanding million full-year half seasonal rate approximately transaction XXXX will of XX:XX reminder, amortization. the lowest XX:XX progresses. pre-COVID adjusted expenditures with capital XXXX. XX% year rate $XXX Average which to shares the summarize, improving closed of tax EBITDA the and of $XXX pleased we QX XX.X $XX of is Depreciation X, share million the margins of return on million. I'm June Interest and year, results. year and to for To expect of of margin as million, and XXXX quarter count fourth

executing are Deluxe we into company solid our believe we strategy, I to on experiencing is take to that XXXX. ready Operator, questions. the now expect are One XX:XX momentum continue We

Operator

Cowen. first XX:XX Thank from Instruction] you. Lance [Operator with is question Our Vitanza

Your open. line is

Lance Vitanza

My an question. quarter. is, you what reap really do transformational maybe you sow a there that are to more if have thanks where one transform is in improvements? Barry, And to for done to you be, what question transformational the from Or it business the more of congratulations lot there I'm do moving of opinion? have years. needs a couple or going where here? you it you more now the -- are great will be dynamic? guess Deluxe into your you've work I lot -- and And be questions like business want picture -- more big wondering is, type will important see to on past start you I this Do XX:XX taking done and Hi with year guys, just I'd can, over there a

Barry McCarthy

business to through important first great of talk that very, very a was how We're performed it you I our fundamentally all, agree Lance, again. the in of transformation. you and to year proud with XXXX Well, XX:XX very

recall completing first that more, half and year. invested this all that over last improve work system, to our You'll of couple and the will of we operating years our core the infrastructure have of we in be

that think the ensure is much already to investments middle behind largely our to and for that as the cash We have flow today, high the that made a will we us, is we're will really year-end very in business in position of here. margins, like that us And be passes. really be will us at So long the behind the really build year with make a we payments growth profile for like saw belief business success In the where company's term continue to very the from the for payments spot you positioned XX:XX company largest in the announcements recent in we substantially. we're deliver in business the long-held that healthy going great term portfolio. the strong it I a that the today. forward. business, And like long grow growth have that us position single-digit company puts the mean, past. secular we of We've check

Operator

next Our Strauzer Securities. question XX:XX Charles is CJS from with

is open. line Your

Charlie Strauzer

gave SaaS And think business? maybe bit a assumptions granularity talk I a assumptions growth little XXXX little morning maybe the good core everybody. you and behind you segments. And to the Can some behind good organic more for more about those the on numbers? your both some about for XX:XX bit But there. detail more the Hi,

Scott Bomar

Sure Charlie. XX:XX

So, this Good Scott. is morning.

American break would the say be year. for So partial we X% revenue a to year of we first to First in communicated time. growth, apart, the for To similar the will this that on had including X% business that XX%, base what to for obviously be legacy that includes X%

into American not As the to we'll as – independently. need just we move of to part we think that half as will portfolio and a year becomes that the we begin First back of about segregate Deluxe, and

XXXX single-digit over Within the First each business. check, checks. business thrilled that where the XXXX about the to In period we cloud digits, we is payments promo industry expectations incredible period. long-term declines of about what low and and QX for single We're and segment we've digits talked and next high our the thinking continue the deliver mid-single with – in individual and continue year, talk XXXX a had inclusion grew we beyond segments, with look the We we're American, that in in long-term are the being secular revenue overall we in expect don't going performance, an we check our to to single-digit resume. low decline to at actually while XX:XX in don't we're grower

Charlie Strauzer

of XXXX. growth, you're thank on of the you. at kind margins of offset talk a the impacting XX:XX with factors about sort Can flat Great, Thanks. bit but our more the looking and little And then, obviously, you those. topline, even [Indiscernible] though margins relatively are

Scott Bomar

XX:XX Sure.

and the the see have margin the we of to that chain to you year But way didn't would deliver are expect XXXX, our a got one-timers of some pressure but EBITDA across still pressures year year. some deflect we with business plan COVID, be that, is some XX:XX performer business say XX% line the associated this the lowest that throughout overall to supply with solid good the be expecting in expect we're the we working patterns in those consistent existed for EBITDA XX% in year. of that are to do XXXX. we case the areas through. resume QX with the feel those certainly and -- do we've quarter of So, we historically is how there lowest seasonal here. There's This and steadily QX and year, with nuance what deliver what inflation The in performance dynamics like on we saw one this rate increasingly

Charlie Strauzer

then a on Great. granularity if but extend can your you're expecting you XXXX, grow know little maybe there. further bit XX:XX free And in to little more lastly, for you Thanks. it thoughts flow. said I cash

Scott Bomar

Certainly. XX:XX

about has specific -- now flag, the initiatives the in integrate replacement transformation years infrastructure those ago unintegrated final these that a system impactful of we those, half of which the and projects there XXXX lot that the organization, a is So That a all to of first will complete, ERP final Barry the were priced of of initiated internally X of components are businesses. call the X biggest cash significant regarding internal most completely. also previously is consumer conclude X that talked were in these organization. several the the and been was infrastructure

the is And of to see to we'll XXXX compared a of free activity expect meaningful that cash that next year. completion amount so, as with there flow incremental

Charlie Strauzer

Excellent. XX:XX you much. Thank very

Operator

XX:XX Lance Vitanza is Cowen. question Our next with from

open. line is Your

Lance Vitanza

XX:XX margin. to low business year actually. Hey, EBITDA a I like think was -- XXXX and start wanted it EBITDA you the right, quarter, I on American slightly another said the guys. It heard XX% be to to if to you in it EBITDA sounds accretive margin First was The good. of for guidance, Thanks. for accretive I going is payments margin,

world operating if phenomenon, I'm right next of temporary several like if for that out really I so of we've like the right, to lot of profile that just years? in And and on obviously nature you margin things heard that's the leverage I or should should expecting not we thinking -- a the -- you're got the seems just sort going business that capture continue wondering just not be it that's you're And now a know any -- it there. really it sounds

Barry McCarthy

in We business are American correct you're strategy the of the to that it operating and term, to over be that, as in number thrilled that XX:XX and we that has significant long course term. we've There for continuing intermediate a investments a modeled be that lot a made that need So have delivered however we talked in of team performance leverage -- operating expect the about with grow of in amount we're about excited the leverage First acquisitions. should of not in XXXX. XXXX. the the do there even

of at business upon solid rates. a floating a additional has come through scale American volumes with higher which should First platform

the in to that the leverage to Deluxe. with but integrate operating So we baseline balance wins make the grow business future, investments need as we we do some of further that expect continue

Lance Vitanza

with sounds you surface. puts and is flat somewhat it? misleading, like going temporary that Is fair beneath is flow need but it's some to being XX:XX a some like because There feel offset ‘XX in it but characterize quibble to higher is to takes So things you that the not way the through, the really make? investments semantics, on, margin by there

Barry McCarthy

fair. XX:XX I that’s think

Lance Vitanza

anything I year-on-year it Okay. And XX:XX looks it like in is there wondering also I'm happening quarter-on-quarter. looks if there it it is noticed Cloud, nice. quite was particular like the growth, was which But still decelerated. that down

seasonality you hoping little I the Thanks. typically would could the expect a was bit business? about So that see you talk to in

Barry McCarthy

we But up against verticals. with mid-single decelerating the but business, it our the to this starting in is we think new going a as we've comp really new in in made customers with COVID the And articulate, in XX:XX traction business and There to into from happy level We're seasonality to QX. now this our we and prospective to comp and early with grower line that as we're opportunity in digit primarily function growth view recovery part I the the trend stronger is business. convert saw of we -- enter the year the forward with the as a performing is continue quarters the of expectations. year industry

it I XX:XX is been Now would growth the have XX% exit there. that the happy you the quarter. we also exclude that very there, if impacted growth important the mid-single digit So are the by the with rate in seeing to so exits, growth we've that, is rate seen you're performance think note

Lance Vitanza

XX:XX Right.

Okay, great.

guessing quite an we ’XX pushed on so, happening expecting did much be forward some side, promo into X% the we or maybe actually if easier maybe pulled should wondering, forward. were anything that was was And is And reason got comp, of that they nicely, year-on-year there XQ reverse better going Clearly, I'm maybe there, that there XQ anything than growth or I'm the out ’XX. expecting. was

Barry McCarthy

in saw part within piece hard by at business we COVID, going improved business in QX. a see that in some business. of that business that sort sub-sections often but saw promos, strength performance some We checks we we expect do some with forward. business performance So to forms is Also of the strong saw some we did as is and of Certainly, some nice growth those that tracks a promo which some well. -- apparel, there that continue XX:XX hit see was strong our in specifically levels and not

healthy, in is going still think the business perform we to well we XXXX. are So,

of single-digit modeling year. more next low we're out that a So as grower

Lance Vitanza

don't down half prices share making it, Is your target maybe bit? pretty leverage the more get clearly guys that on it move that comment maybe Okay. the table, stronger of you balance of modeled. XX:XX you we're the you the all my you feel squeeze we had bit last until be did proposition a much to does to it's here. but to company if there made mean, repurchases are the than you and job now advantage leverage lower a and little nice up net little in is are on making apparently minds maybe repurchasing it your chance but stock. not really than take like the this that that a are is time debt, -- I I'm is the And you sheet value those off frustrated sounds that can question, there seeing? And the could in, first one year any little I'm stock a reflecting I that

Barry McCarthy

our say delever evaluating our the commitments in we allocation would single never XX:XX capital This time always quarter, But our moment, at and review priorities at the of are we're Board we’ve to I the is to commitment according made steadfast something never. every with we plans we we're did evaluating we're so at debt our never But leverage. on our focused our moment, acquisition. plans, our as but American the reducing First basis plans, the never, for well as deleveraging evaluating constantly, revisit a share on that capital say buyback constant

Lance Vitanza

XX:XX appreciate it. Understood, thanks for the color, I guys,

Operator

next Co. Chris Our Sidoti & is McGinnis XX:XX from question with

open. Your line

Chris McGinnis

you questions growth it's there? that rate taking then, long the Can on quarter. Yeah. Good how seeing just and you guess talk nice First XX:XX growth with we about command? start And could you're Thanks rate if your that American. can I under going, morning. for keep now just my

Barry McCarthy

to you. Good Hey, XX:XX hear Chris.

year that's could We Deluxe clear And that what are right asset plan saw just in I real. perhaps American very And obviously is One pleased the think that performance. seeing proud First Deluxe model tell as full and we're have with it just believe is, and and really We we sales that we our like Halo very we the works confident and what case more evidence grower we we said more. when we it's perhaps confident, earlier, in a our stay you solid to we and term, know going long going what to very we business to original and you, fourth solid is acquired said in we at the would a quarter great feel XX:XX this And now results. tell digit very pour. the business is rate we the middle now it that don't over that's good indefinitely. [Indiscernible] think about going growth be of I'll feel

Chris McGinnis

guess to have know is I thanks is Great, outreach you place? then coming customer that getting Barry. you for around inbound that still And now that mentioned to of that you're last Barry, that XX:XX happen, fast. second part you the quarter, that in calls, asset I this continuing

Barry McCarthy

Absolutely. XX:XX

-- closed Chris, Halo marketplace, to and Deluxe think, First in the what that of can number that relationships – growth. it's way can is half First of the I de this the -- I explain that, in leveraged gives of just the it's really It because financial real strength white. that's best the number our best the institutions a back I think financial notion American to maybe be the better way than times think dimensionalize and normal have X times, don't in for it’s times except brand you they relationship the the of a fine the half. for I the institutions would that we it's you that, American. -- back and X and we It of to with tell have would black the half is sort about back institutions clear, and in with I fact financial particularly we X have the way strength really than typical close powerful just of to clear. rates a

Chris McGinnis

there, then this with about Deluxe check guess And that. also, include just about, just earlier appreciate to XX:XX there week. guess, the you Bradford thinking to No, I One strategy And on announcement room I is that play the just more Deluxe products Can talk offers? out opportunity side? I that one, that the Exchange for

Barry McCarthy

there. We XX:XX of there continue -- bunch is a questions

me let the time. of So X take

we're about doing our me talk HP business. Let the what tech Bradford, and in

only And market, them that us position by we important, to was able capability revenue check well mix, nearly we won a Part have points, fact technology by business greatly gives after and we especially market warehouses our investments have new that sources. more that. products not many said announce delivered technology going the digital because simplifies that's for our we to allow that's the saw variety that us profitability to Exchange, to And like maintaining to us long to you that key today past. this were in been on us foreseeable inventory us to allows have to product really consumer. future. that in that and the infinite away helps being which the have and of that to. that our Exchange, It allows mean Bradford additional add Bradford does more We us on process, we do us the managed a and different a focus of our have variety HP significant of go business the great differentiator other segment Bradford designs. making on eliminates they for that there production example. on are work now XX:XX that. of is they customers sell products it And after sell products designs And for having can already to a in create a sell. Exchange it variety of is to but chunk And have art go go XX:XX different to put to competitor custom there

One that to our year our existing So that we down. our really ability continue So to One the I products it’s see model there – just and really additional third the our that's a grow improve for the there's of question to throughout think works. record us was rates the market Deluxe in pipeline around opportunity success consecutive And we it So, the expand. to record American. XX:XX then, checks. to be of for sold don't cross The and of as performance. continue any it’s a our we reason started customers cross-sell is quarter And clearly working we to machine and telesales think in First that to the second an well continued centers, in to sell -- queue slow example, But this beyond ability have that we us highlighted going was across that for building us. XX:XX throughout year win Deluxe business share we on

Chris McGinnis

I XX:XX Barry. color, that appreciate And Great.

the Maybe to for XXXX, move from quarter can quarter. how to new client itself? I and wins? you existing much growth understand little in checks on the the then outlook And a just from and the dive bit but is more Just the growth into in

Barry McCarthy

XX:XX Yeah.

secular still So, business about the that digit in declines. is mid-single base being and the industry think look, we

was get we much you of on the new deliver So how that wins. a sense for based volume

team And renewals a customers very in fairing terrific for high then grabs. business new high is has and a well quite of the up winning so our just job percentage -- very, of done existing when

to just a job terrific teams the do there. So continue

renewals many we as term. don't near the so up coming have And in

good that business. into a take a got continue we've of again at then solid trending team and XXXX. baseline think But we So do job pretty revenue the share to

Chris McGinnis

it's [MPX] Also gain that. on for it sounds some traction. Thanks to (ph) like really starting

the about still small, growth pretty that know moving in revenue it's talk you it rate. it's positive direction. sounds the I but maybe just You like opportunity see a and

Barry McCarthy

that's growing a happening So And proud really BPX. XX:XX what's of in year-on-year XX with we're and MPX range. percent plus

material growth there we upside rate. revenue think very is ton And a potential. So of

believe percentage say, few incredibly that the revenue opportunity. as it you fourth And it’s because convert is a because but make it there go we ‘XX and it's a years. be if rate you hasn't it's XX:XX gone noted, we to a live a at and checks, And in If then and beginning QX, couple signed and business, And profit morning, us million right yet, we not deal, us it's in forward. front business will that in that we small payer year of so market year of real find a of big real growth accelerating major which in get come is go as – but there we horizon. it's $XXX can -- not you BXB at over to just look tomorrow that that

Operator

appears back no remarks. Morabito at for have closing any it to I'll call time. And further the XX:XX Mr. turn we questions this

Tom Morabito

Thanks, Chris. XX:XX

speaking again you we in Thank May our with Before we Sidoti Please joining mention I'd to management on look healthy in share like Small-Cap quarter us first will that safe Spring participating XX. conclude, be results. for forward Conference as be and you to and XXXX March today.

Operator

XX:XX participating conference now call. may Ladies and for gentlemen, this concludes Thank disconnect. today's and you you

Deluxe (DLX) 3 Feb 222021 Q4 Earnings call transcript