Deluxe Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance compared to the same periods in 2023. Total revenue for Q3 2024 was $528.4 million, a decrease of 1.7% from $537.8 million in Q3 2023. For the nine months, revenue fell by 3.2% to $1.6 billion from $1.65 billion in the prior year. The decline was attributed to business exits, which accounted for approximately $6 million in lost revenue for Q3 and $39 million for the nine-month period, alongside a secular decrease in order volumes for checks and business forms.

Despite the revenue decline, Deluxe reported a significant improvement in profitability. Operating income for Q3 2024 rose to $41.6 million, compared to $21.6 million in Q3 2023. Net income for the quarter was $8.9 million, a turnaround from a net loss of $8.0 million in the same quarter last year. For the nine months, net income increased to $40.3 million from $11.2 million in 2023. This improvement was driven by cost management initiatives, a reduction in restructuring expenses, and gains from the sale of businesses.

Earnings per share (EPS) reflected this positive trend, with diluted EPS for Q3 2024 at $0.20, compared to a loss of $0.18 in Q3 2023. For the nine months, diluted EPS increased to $0.90 from $0.25 in the previous year. Adjusted EBITDA for Q3 2024 was $104.9 million, up from $101.9 million in Q3 2023, while the nine-month adjusted EBITDA decreased slightly to $308.7 million from $310.7 million.

Strategically, Deluxe has been focusing on its North Star program, which aims to enhance EBITDA growth and improve cash flow. The company incurred approximately $80 million in restructuring and integration expenses related to this initiative, with an additional $30 million anticipated through 2025. The program is expected to yield annual cost savings of about $35 million in 2024.

In terms of segment performance, the Merchant Services segment saw a revenue increase of 6.3% in Q3 2024, while the B2B Payments segment experienced a slight revenue increase of 0.7%. Conversely, the Data Solutions segment's revenue declined by 4.7% in Q3, although it showed a 6.2% increase for the nine-month period. The Print segment continued to face challenges, with revenues down 2.3% for Q3 and 3.5% for the nine months.

As of September 30, 2024, Deluxe's total debt was $1.53 billion, a decrease from $1.59 billion at the end of 2023, and the company maintained compliance with its debt covenants. Cash and cash equivalents stood at $41.3 million, down from $72.0 million at the end of 2023. The company anticipates a revenue outlook for 2024 between $2.12 billion and $2.14 billion, reflecting ongoing challenges but also strategic growth initiatives.