Deluxe Corp (DLX) 2024 Q1 法說會逐字稿

(audio in progress) Before we begin and as seen on the current slide, I'd like to remind everyone that comments made today regarding management's intentions, projections, financial estimates, and expectations of the company's future strategy or performance are forward-looking in nature as defined in the Private Securities Litigation Reform Act of 1995. Additional information about factors that may cause our actual results to differ from projections is set forth in the press release we furnished this afternoon, in our Form 10-K for the year ended December 31, 2023, and in other company SEC filings.

（音訊進行中）在我們開始之前，正如當前幻燈片所示，我想提醒大家，今天發表的有關管理層的意圖、預測、財務估計以及對公司未來戰略或業績的期望的評論是前瞻性的。有關可能導致我們的實際結果與預測不同的因素的更多信息，請參見我們今天下午提供的新聞稿、截至 2023 年 12 月 31 日的年度 10-K 表格以及其他公司向 SEC 提交的文件。

On the call today, we will discuss non-GAAP financial measures, including comparable adjusted revenue, adjusted and comparable adjusted EBITDA and EBITDA margin, adjusted and comparable adjusted EPS and free cash flow. In our press release, today's presentation and our filings with the SEC, you'll find additional disclosures regarding the non-GAAP measures, including reconciliation of these measures to the most comparable measures under US GAAP. Within the materials, we are also providing reconciliations of GAAP EPS to comparable adjusted EPS, which may assist with your modeling.

在今天的電話會議上，我們將討論非公認會計準則財務指標，包括可比調整後收入、調整後和可比調整後 EBITDA 和 EBITDA 利潤率、調整後和可比調整後每股收益和自由現金流。在我們的新聞稿、今天的簡報以及我們向 SEC 提交的文件中，您會發現有關非 GAAP 衡量標準的其他揭露，包括這些衡量標準與美國 GAAP 下最可比衡量標準的調整。在材料中，我們還提供 GAAP 每股收益與可比較的調整後每股收益的調整表，這可能有助於您的建模。

Finally, as an important additional note, this evening's presentation reflects results aligned to our updated segment reporting structure, as outlined in our filings concurrent with our December Investor Day presentation and today's 8-K filing, which provides unaudited recast business segment revenue and adjusted EBITDA information for both 2022 and 2023, including quarterly details for 2023.

最後，作為一個重要的補充說明，今晚的演示反映了與我們更新的分部報告結構一致的結果，如我們與12 月投資者日演示同時提交的文件和今天的8-K 文件中所述，其中提供了未經審計的重鑄業務分部收入和調整後的EBITDA 2022 年和 2023 年的信息，包括 2023 年的季度詳細信息。

Updated operating segment figures are reported excluding any results from exited businesses for the respective periods, which results from such activities reported separately within the filed materials and detailed further within our segment information and reconciliation of GAAP to non-GAAP measure slides in the appendix of today's presentation materials. Chip will add some detail regarding these updates during his comments this evening.

報告的更新經營分部數據不包括相應期間退出業務的任何結果，這些結果是在歸檔材料中單獨報告的此類活動的結果，並在今天的附錄中的分部資訊和GAAP 與非GAAP 衡量標準幻燈片中進一步詳細說明。奇普將在今晚的評論中添加有關這些更新的一些細節。

And with that, I'll turn it over to Barry.

有了這個，我會把它交給巴里。

Thanks, Brian, and good evening, everyone. Two things before I get started. First, today, I'll be discussing comparable adjusted results for the quarter, which we believe best reflect our ongoing business performance. Later, Chip will discuss our reported consolidated and comparable adjusted figures to give even more perspective. Second, as Brian just mentioned, this is the first time we're reporting on our new segments. We'll also be happy to have follow-up conversations that answer questions that you may have on these updates.

謝謝布萊恩，大家晚上好。在我開始之前有兩件事。首先，今天我將討論本季的可比較調整後結果，我們認為這最能反映我們持續的業務績效。隨後，奇普將討論我們報告的合併和可比調整數據，以提供更多視角。其次，正如布萊恩剛才提到的，這是我們第一次報告我們的新細分市場。我們也很樂意進行後續對話，回答您對這些更新可能提出的問題。

We think this new segmentation provides better insight into the company and our future. Our strategy is clear; invest on relationships, trust, and brand built in our print business, to grow the payments and data businesses. Very simply, payments and data are our growth drivers, and print is our cash generator helping drive payments and data's success.

我們認為這種新的細分可以更好地洞察公司和我們的未來。我們的策略很明確；投資我們印刷業務中建立的關係、信任和品牌，以發展支付和數據業務。很簡單，支付和數據是我們的成長動力，而印刷是我們的現金來源，有助於推動支付和數據的成功。

On this chart, you can see print was 57% of revenue, with payments and data combined, delivering 43% for the quarter. With Q1 combined payments and data revenue of $226 million, growing 8.1% with margins of 22%, this is an attractive portfolio of businesses that we think is often overlooked.

在此圖表中，您可以看到印刷版佔收入的 57%，加上付款和數據，本季佔 43%。第一季支付和數據收入合計為 2.26 億美元，成長 8.1%，利潤率為 22%，這是一個有吸引力的業務組合，但我們認為經常被忽視。

Our new operating segments should help highlight these businesses. Over the longer term, we expect the combined payments and data businesses to reach revenue parity with print, and expect to provide updates annually. Overall, I'm very pleased to report our strong start to 2024.

我們新的營運部門應該有助於突顯這些業務。從長遠來看，我們預計支付和數據業務合併後的收入將與印刷業務持平，並預計每年提供更新。總的來說，我很高興向大家報告我們在 2024 年取得了良好的開局。

In the first quarter, we delivered growth across every key metric: revenue, adjusted EBITDA, EPS, and margin. Our adjusted EBITDA expanded at a significantly faster rate than revenue, demonstrating the operating leverage we have now purposely built into the company. We were also particularly pleased with the significant year-over-year improvement in cash flow. As a result of the strong performance, we're raising our 2024 cash flow guidance and affirming all other full-year operating metrics.

第一季度，我們在每個關鍵指標上都實現了成長：營收、調整後 EBITDA、每股盈餘和利潤率。我們調整後的 EBITDA 成長速度明顯快於營收成長速度，證明了我們現在特意為公司建立的營運槓桿。我們也對現金流量較去年同期顯著改善感到特別滿意。由於業績強勁，我們提高了 2024 年現金流指引，並確認了所有其他全年營運指標。

You will recall accelerated cash flow and profit growth are the key tenets of our overall strategy and North Star program, both of which we outlined during our December Investor Day. We believe the Q1 performance demonstrates our progress. As a reminder, our North Star goal is to unlock $80 million of incremental comparable adjusted EBITDA, and a $100 million of incremental free cash flow by 2026. As of the end of Q1, we're making progress on all 12 North Star work streams shown here.

您會記得加速現金流和利潤成長是我們整體策略和北極星計畫的關鍵原則，我們在 12 月投資者日概述了這兩個原則。我們相信第一季的表現證明了我們的進步。提醒一下，我們的北極星目標是到 2026 年實現 8000 萬美元的可比調整 EBITDA 增量和 1 億美元的增量自由現金流。截至第一季末，我們在此處顯示的所有 12 個 North Star 工作流程上都取得了進展。

Initiatives comprising roughly two-thirds of our targeted $130 million of overall EBITDA improvements are now moving to the execution stage. Recall that the $130 million is aligned to our net $80 million incremental earnings target after factoring for expected secular declines through 2026. Benefit realization will phase in during the remainder of this year and throughout 2025. We expect to see in-year benefits accelerate and remain well positioned to achieve our goals.

我們的 EBITDA 整體改善目標為 1.3 億美元，其中約三分之二的措施現已進入執行階段。回想一下，在考慮到 2026 年預期的長期下降後，這 1.3 億美元與我們 8,000 萬美元的淨增量收益目標一致。效益實現將在今年剩餘時間和整個 2025 年逐步實現。我們預計年內效益將加速成長，並保持良好狀態以實現我們的目標。

Now, before reviewing our first quarter highlights, I'd like to provide a few comments on the macro economy and key business drivers. First, as we discuss on each of these calls, Deluxe actively monitors trends surrounding overall domestic consumer sentiment, including discretionary spending. We review economic information from many providers, including the Federal Reserve, card associations, and more.

現在，在回顧第一季的亮點之前，我想就宏觀經濟和關鍵業務驅動因素提供一些評論。首先，當我們討論每通電話時，Deluxe 積極監控國內整體消費者信心的趨勢，包括可自由支配支出。我們審查來自許多提供者的經濟訊息，包括聯準會、信用卡協會等。

Looking at this information alongside our own available data, while it appears consumers still feel inflation pressure, some of the unfavorable spending dynamics between less and more discretionary categories present a year ago appeared to have stabilized a bit. You see this reflected in our merchant services performance.

將這些資訊與我們自己的現有數據結合起來看，雖然消費者似乎仍然感受到通膨壓力，但一年前出現的較少和較多可自由支配類別之間的一些不利支出動態似乎已經穩定了一些。您可以在我們的商家服務績效中看到這一點。

Second, our business continues to benefit from our overall One Deluxe go-to-market approach as our growth during the first quarter included new customer wins across each of our reporting segments.

其次，我們的業務繼續受益於我們整體 One Deluxe 進入市場的方法，因為我們第一季的成長包括在每個報告部門贏得新客戶。

Third, trust continues to be a key driver for the company, and as we have noted, is one of our core values. We were honored to be recognized for the third consecutive year as one of America's Most Trustworthy Companies by Newsweek. This ongoing recognition is testament to the quality both of our products and services, and the commitment of all Deluxers delivering every day for customers.

第三，信任仍然是公司的關鍵驅動力，正如我們所指出的，這是我們的核心價值之一。我們很榮幸連續第三年被《新聞週刊》評為美國最值得信賴的公司之一。這種持續的認可證明了我們產品和服務的質量，以及所有 Deluxers 每天為客戶提供服務的承諾。

Now to provide some additional details about our first quarter performance. For the quarter, net of business exits, revenue was $529 million, up 1.2% or just over $6 million year over year. The combined growth in our payments and data businesses more than offset the single-digit secular declines in print, consistent with our strategy. Importantly, the company is now in its fourth consecutive year of delivering organic revenue growth, demonstrating that our shift towards a payments and data company is working.

現在提供有關我們第一季業績的一些其他詳細資訊。扣除業務退出後，本季營收為 5.29 億美元，年增 1.2%，即略高於 600 萬美元。我們的支付和數據業務的綜合成長遠遠抵消了印刷業務的個位數長期下降，這與我們的策略一致。重要的是，該公司目前已連續第四年實現有機收入成長，這表明我們向支付和數據公司的轉變正在發揮作用。

Total adjusted EBITDA dollars increased 7% from the first quarter of 2023 to $97 million, continuing to reflect robust operating leverage across our portfolio, as noted in my opening comments. Adjusted EBITDA margins finished the quarter at 18.3%, reflecting an expansion of a full 100 basis points versus the prior year. We remain particularly pleased with the results, helping to demonstrate our progress around continued optimization of our operating expense base and expansion of adjusted EBITDA levels outlined within our North Star execution plans.

正如我在開場白中指出的，調整後 EBITDA 總額較 2023 年第一季度增長 7%，達到 9700 萬美元，繼續反映了我們投資組合強勁的營運槓桿。本季調整後 EBITDA 利潤率為 18.3%，比上年增長了整整 100 個基點。我們對結果仍然特別滿意，這有助於展示我們在持續優化營運費用基礎和擴大北極星執行計劃中概述的調整後 EBITDA 水平方面取得的進展。

Moving on to some segment highlights, beginning with merchant services. For the quarter, merchant segment revenue grew 8.3%, while adjusted EBITDA dollars grew 16.3%, and margins expanded 150 basis points from 2023 on strong processing volumes. We're pleased with the strong performance of this business as we approach the third anniversary of the acquisition on June 1 since the combination, revenue, profit, operating leverage, and margin have all materially accelerated, further demonstrating the power of our One Deluxe model.

接下來討論一些細分市場的亮點，首先是商業服務。本季，商家部門營收成長 8.3%，調整後 EBITDA 美元成長 16.3%，由於處理量強勁，利潤率較 2023 年成長 150 個基點。在 6 月 1 日即將迎來收購三週年之際，我們對該業務的強勁表現感到滿意，因為合併、收入、利潤、營運槓桿和利潤率均大幅加速，進一步證明了 One Deluxe 模式的力量。

We will continue to leverage our strong bank partner relationships, increasing penetration with integrated software vendors, or ISVs, and direct selling resources. Additionally, we continue to invest responsibly in our differentiated service capabilities, technology and feature enhancements.

我們將繼續利用我們強大的銀行合作夥伴關係，提高與整合軟體供應商（ISV）和直銷資源的滲透率。此外，我們繼續負責任地投資於我們的差異化服務能力、技術和功能增強。

Moving now to results within the B2B payment segment. While we saw year-over-year declines of 7.7% for B2B, the overall results were largely in line with our internal expectations for the first quarter. As we have shared on previous calls, we're transitioning to a software-as-a-service, or a SaaS model, reducing our dependency on one-time non-recurring revenue, like software licenses and check imaging devices. This move to SaaS will also reduce our dependence on core transaction processing revenue over time.

現在轉向 B2B 支付領域的結果。雖然我們看到 B2B 年減 7.7%，但整體結果基本上符合我們對第一季的內部預期。正如我們在先前的電話會議中分享的那樣，我們正在過渡到軟體即服務或 SaaS 模式，從而減少對一次性非經常性收入（例如軟體許可證和檢查成像設備）的依賴。隨著時間的推移，向 SaaS 的轉變也將減少我們對核心交易處理收入的依賴。

This means we are deliberately reducing focus on selling one-time non-recurring products. As we anticipated and as indicated in our first-quarter results, the short-term impact has been less revenue but improved margins.

這意味著我們有意減少對銷售一次性非經常性產品的關注。正如我們的預期和第一季業績所示，短期影響是收入減少，但利潤率提高。

During the first quarter, B2B margins expanded 120 basis points, resulting in modest EBITDA impacts despite the drop in revenue. Additionally, we remain encouraged by our growing pipeline, demonstrating strong demand for our newest products. While we shift our focus to SaaS, we will continue to focus on efficiencies across lockbox, leveraging recent site consolidations, and other operating improvements.

第一季度，B2B 利潤率擴大了 120 個基點，儘管收入下降，但 EBITDA 影響不大。此外，我們仍然對不斷增長的產品線感到鼓舞，這表明對我們最新產品的強勁需求。雖然我們將重點轉向 SaaS，但我們將繼續關注整個密碼箱的效率，利用最近的站點整合和其他營運改進。

We have continued to win new deals in the lockbox business, helping to offset secular volume pressure and fund the transition to SaaS products. We have several high-quality deals currently in the implementation phase, and despite some customer delays, we expect these deals to go live later this year.

我們繼續贏得密碼箱業務的新交易，幫助抵消長期的銷售壓力並為向 SaaS 產品的過渡提供資金。目前，我們有幾項高品質的交易正處於實施階段，儘管有一些客戶延遲，但我們預計這些交易將在今年稍後上線。

To be clear, we do expect to see revenue, profit, and margin grow simultaneously, as the shift towards SaaS unfolds over the next several quarters. We also expect to announce a new leader for this segment in the coming weeks.

需要明確的是，隨著未來幾季向 SaaS 的轉變，我們確實預期營收、利潤和利潤率將同步成長。我們也預計在未來幾週內宣布該領域的新領導者。

Moving now to data solutions, which delivered particularly strong first-quarter results. The core data-driven marketing, or DDM business, had a solid quarter, driving segment revenue growth of 34.5% and adjusted EBITDA growth of 46% during the period. These results reflect continued strong demand for customer acquisition marketing activities across our expansive base of core SI partners. Additionally, data continues to broaden its portfolio of clients, extending to other attractive non-financial service verticals, including telecom, utility, and smart home technology providers.

現在轉向數據解決方案，該解決方案帶來了特別強勁的第一季業績。核心數據驅動行銷（DDM）業務在本季表現強勁，帶動部門營收成長 34.5%，調整後 EBITDA 成長 46%。這些結果反映了我們廣泛的核心 SI 合作夥伴對客戶獲取行銷活動的持續強勁需求。此外，數據繼續擴大其客戶組合，擴展到其他有吸引力的非金融服務垂直領域，包括電信、公用事業和智慧家庭技術供應商。

As we've discussed previously, quarter-to-quarter lumpiness results from the campaign-oriented nature of the DDM business, with customers often shifting planned marketing expense between quarters. Accordingly, we would not expect the levels of growth reported during the first quarter to recur over the balance of the year.

正如我們之前所討論的，季度與季度之間的波動是由於 DDM 業務以活動為導向的性質造成的，客戶經常在季度之間轉移計劃的營銷費用。因此，我們預計今年剩餘時間不會出現第一季報告的成長水準。

Shifting finally to our print segment. Consistent with our expectations and prior guidance, the print business experienced a revenue decline of just over 3% to $303 million while adjusted EBITDA margins held at 30%, in line with our outlook and typical first quarter seasonality. Within the segment, legacy check revenues remained roughly flat during the quarter at just over $178 million.

最後轉向我們的列印部分。與我們的預期和先前的指導一致，印刷業務的收入下降了3% 以上，至3.03 億美元，而調整後的EBITDA 利潤率保持在30%，這與我們的前景和典型的第一季季節性相符。在該細分市場中，傳統支票收入在本季基本持平，略高於 1.78 億美元。

Total revenue declines were consistent with our expectations for the first quarter, which typically lag sequentially from Q4 holiday-related seasonal strength. Overall, we continue to manage the print portfolio to maximize cash flow through operating efficiencies, pricing actions and responsible investments.

總營收下降與我們對第一季的預期一致，第一季通常落後於第四季假期相關的季節性強勁。總體而言，我們將繼續管理印刷產品組合，透過營運效率、定價行動和負責任的投資來最大限度地提高現金流。

To summarize, our overall first quarter results speak to our transformation and North Star progress. This ongoing performance improvement provides us with a great foundation to deliver our 2024 revenue growth and EBITDA expansion goals. While work remains, our consistent and sustained pace of progress create even greater confidence in our bright future as a payments and data company.

總而言之，我們第一季的整體業績說明了我們的轉型和北極星的進展。這種持續的績效改善為我們實現 2024 年營收成長和 EBITDA 擴張目標奠定了堅實的基礎。儘管工作仍在繼續，但我們持續不斷的進步步伐讓我們對作為支付和數據公司的光明未來更加充滿信心。

Finally, before passing us to Chip, I want to acknowledge and thank all fellow Deluxers who work hard every day to deliver these results for our customers and investors.

最後，在將我們交給 Chip 之前，我要感謝所有每天努力工作為我們的客戶和投資者帶來這些成果的 Deluxers 同事。

With that, I'll turn it over to Chip.

有了這個，我會把它交給奇普。

Thank you, Barry, and good evening, everyone. As Barry noted in his opening, we were very pleased with our first-quarter progress, particularly our better-than-anticipated cash flow generation and our strong comparable adjusted EBITDA growth during the period.

謝謝你，巴里，大家晚上好。正如巴里在開場白中指出的那樣，我們對第一季度的進展感到非常滿意，特別是我們好於預期的現金流生成以及我們在此期間強勁的可比調整後 EBITDA 增長。

As Brian pointed out upfront, our updated segment reporting reflects the removal of all business exit impacts to both ongoing and recasted historical operating segment financials. This will allow for a clean view of our segment performance over time, net of any impacts from divested lines of business.

正如布萊恩預先指出的那樣，我們更新的分部報告反映了消除了所有業務退出對正在進行的和重新制定的歷史營運分部財務狀況的影響。這將使我們能夠清楚地了解一段時間內我們的部門業績，扣除剝離業務線的任何影響。

The combined impact of the business exits can be seen separately within the historical results of today's 8-K filing as well as within the enterprise-level non-GAAP reconciliations found within the appendix of today's materials and in our past filings. Importantly, 2024 operating segment results will continue to be reported excluding any impacts from residual payroll business results that may be realized as customer migrations take place over the course of the year. This is consistent with the conversion agreements we executed during the second half of 2023 as we made the decision to exit these businesses.

業務退出的綜合影響可以在今天的 8-K 備案的歷史結果以及今天材料的附錄和我們過去的備案中找到的企業級非 GAAP 調節中分別看到。重要的是，2024 年營運部門業績將繼續報告，不包括年內客戶遷移可能帶來的剩餘薪資業務表現的任何影響。這與我們在 2023 年下半年決定退出這些業務時執行的轉換協議一致。

As a result, our total enterprise 2024 results will now incorporate a comparable adjusted revenue figure in addition to comparable adjusted EBITDA and EPS to remove any payroll business impacts incurred from both the current and prior year results.

因此，我們的 2024 年企業整體業績現在除了可比調整後的 EBITDA 和每股盈餘之外，還將納入可比調整後的收入數據，以消除當前和上一年業績產生的任何薪資業務影響。

Now, with that out of the way, I'll begin today with a bit of additional color around the consolidated highlights for the period before moving on to the segment results, our balance sheet and cash flow progress, and updated 2024 guidance.

現在，拋開這些問題，今天我將首先圍繞這一時期的綜合亮點進行一些額外的說明，然後再討論分部業績、我們的資產負債表和現金流量進展以及更新的 2024 年指導。

For the quarter, on a reported basis, we posted total revenue of $535 million, down 1.9%, driven by the impact of our prior year exits, but increasing 1.2% year over year on a comparable adjusted basis.

根據報告，本季我們的總收入為 5.35 億美元，由於上一年退出的影響下降了 1.9%，但在可比調整後同比增長了 1.2%。

We reported GAAP net income of $10.8 million or $0.24 per share for the period, improving from $2.8 million or $0.06 per share in the first quarter of 2023. This increase was driven by improved operating results, particularly lower SG&A expense, as well as gains relating to the business exits during the period.

我們公佈的該期間 GAAP 淨利潤為 1,080 萬美元，即每股 0.24 美元，高於 2023 年第一季的 280 萬美元，即每股 0.06 美元。這一增長是由於經營業績的改善，特別是銷售、管理及行政費用的降低，以及與期內業務退出相關的收益所推動的。

Comparable adjusted EBITDA was $96.9 million, up $6.3 million or 7% versus the first quarter of last year. Comparable adjusted EBITDA margins were 18.3%, improving 100 basis points versus the first quarter of 2023. Q1 comparable adjusted EPS came in at $0.72, improving from $0.69 in 2023, primarily driven by the improved operating income results previously noted.

可比調整後 EBITDA 為 9,690 萬美元，比去年第一季增加 630 萬美元，成長 7%。調整後的可比 EBITDA 利潤率為 18.3%，比 2023 年第一季提高了 100 個基點。第一季可比調整後每股收益為 0.72 美元，高於 2023 年的 0.69 美元，這主要是由於先前提到的營業收入結果的改善。

Now, turning to our operating segment details, beginning with the merchant services business. The merchant business grew first-quarter revenue by 8.3% year over year to $96.5 million, reflecting strong Q1 performance, as Barry noted.

現在，轉向我們的營運部門詳細信息，從商業服務業務開始。Barry 指出，商業業務第一季營收年增 8.3%，達到 9,650 萬美元，反映出第一季的強勁表現。

Segment adjusted EBITDA finished at $21.4 million, improving $3 million or 16.3% versus the prior year, with margins expanding 150 basis points to 22.2% of revenue, mainly resulting from the strong top line growth and our ongoing profit enhancement initiatives. In addition to the highlights Barry covered, the merchant business also benefited from robust seasonal volumes within the government vertical during the quarter, and remains well positioned to continue momentum towards our mid- to high single-digit revenue growth and low-20% adjusted EBITDA long-term outlook.

部門調整後EBITDA 最終達到2,140 萬美元，比上年增加300 萬美元，即16.3%，利潤率擴大150 個基點，達到收入的22.2%，這主要歸功於強勁的收入增長和我們持續的利潤增強計劃。除了巴里提到的亮點之外，商家業務還受益於本季度政府垂直領域強勁的季節性交易量，並且仍然處於有利地位，可以繼續實現中高個位數收入增長和低 20% 的調整後 EBITDA長期展望。

Turning to B2B payments. As a reminder, our B2B segment includes our treasury management offerings, featuring both our R360 software, and lockbox remittance offerings on the AR side, in addition to our eCheck and DPX AP disbursement solutions. Results from RDC and other scanner hardware and our fraud and security suite of offerings are also included within this segment.

轉向 B2B 付款。提醒一下，我們的 B2B 部門包括我們的財務管理產品，除了我們的 eCheck 和 DPX AP 支付解決方案之外，還包括我們的 R360 軟體和 AR 端的密碼箱匯款產品。RDC 和其他掃描器硬體以及我們的詐欺和安全產品套件的結果也包含在該細分市場中。

For the first quarter, B2B segment revenues finished at $69.4 million, down from $75.2 million during 2023, consistent with our expectation for Q1 performance. While overall remittance volumes remained fairly stable on a sequential basis during the quarter, the balance of the business was unable to fully offset some non-recurring hardware sales from 2023 and other one-time items, resulting in an overall 7.7% decline year over year.

第一季度，B2B 部門營收為 6,940 萬美元，低於 2023 年的 7,520 萬美元，與我們對第一季業績的預期一致。儘管本季整體匯款量較上季保持相當穩定，但業務餘額無法完全抵銷 2023 年的一些非經常性硬體銷售和其他一次性項目，導致整體年減 7.7% 。

Despite the revenue headwinds within the segment, adjusted EBITDA margins continued to improve, consistent with the focus on operational efficiencies to which we have alluded on our prior two quarterly earnings calls. Margins improved by 120 basis points to 19.2% during the quarter, with adjusted EBITDA dollars declining 1.5% from 2023 to finish at $13.3 million. Despite the expected soft start to the year, we anticipate flat to low single-digit full-year revenue growth as we transition to recurring revenues, as Barry discussed. Overall EBITDA margins are expected to improve to the low- to mid-20% range over time.

儘管該部門面臨收入逆風，但調整後的 EBITDA 利潤率繼續改善，這與我們在前兩季財報電話會議中提到的對營運效率的關註一致。本季利潤率提高了 120 個基點，達到 19.2%，調整後 EBITDA 美元較 2023 年下降 1.5%，最終達到 1,330 萬美元。正如巴里所討論的，儘管今年預計會出現軟啟動，但隨著我們轉向經常性收入，我們預計全年收入成長將持平至低個位數。隨著時間的推移，整體 EBITDA 利潤率預計將提高至 20% 的中低水準。

Moving on to data solutions. This segment rebounded very strongly on both a year over year and sequential basis, delivering strong results for the first quarter. Data revenues finished at $59.7 million for the quarter, reflecting a sequential increase of more than [$15.5 million] from its seasonally lowest fourth quarter, achieving overall growth of 34.5% versus Q1 of 2023.

轉向數據解決方案。該細分市場年比及季均強勁反彈，第一季業績強勁。本季數據收入最終達到 5,970 萬美元，較季節性最低的第四季度環比增長超過 [1,550 萬美元]，與 2023 年第一季相比總體增長 34.5%。

As we noted a quarter ago, the data-driven marketing business saw several customers accelerate campaigns into the fourth quarter of 2022, pulling planned data spend from the prior year first quarter comparable results. As Barry referenced, the quarter-to-quarter volatility of campaign timing within this business can make sequential growth rates difficult to predict with great precision.

正如我們一個季度前指出的那樣，數據驅動的行銷業務看到一些客戶將行銷活動加速到 2022 年第四季度，從而將計劃的數據支出從去年第一季的可比結果中拉出來。正如巴里所提到的，該業務中活動時間的季度波動可能會使連續成長率難以精確預測。

We continue to suggest averaging the two to three most recent quarters' actual results for both revenue and EBITDA dollars, as a good barometer for ongoing segment-level financial performance over the balance of the year. We remain very encouraged by the recent performance of this segment and believe our mid- to high single-digit longer-term growth guidance remains appropriate from a full year perspective.

我們繼續建議對最近兩到三個季度的收入和 EBITDA 美元實際業績進行平均，作為今年餘下部分持續財務業績的良好晴雨表。我們對該細分市場的近期表現仍然感到非常鼓舞，並相信從全年的角度來看，我們的中高個位數長期成長指導仍然是合適的。

Data's adjusted EBITDA margins for the quarter improved 200 basis points to 25%, again, reflecting campaign timing impacts within the Q1 compare as referenced previously. Adjusted EBITDA for the quarter was $14.9 million, up 46.1% from the prior year period. We continue to have strong confidence in the long-term low- to mid-20% adjusted EBITDA rate guidance for this segment.

Data 本季調整後的 EBITDA 利潤率提高了 200 個基點，達到 25%，再次反映了先前提到的第一季比較中的行銷活動時機影響。該季度調整後 EBITDA 為 1,490 萬美元，比去年同期成長 46.1%。我們仍對該細分市場 20% 的長期調整後 EBITDA 率指引充滿信心。

Turning now to our print businesses. Print segment first-quarter revenue was $303.4 million, declining 3.4% on a year-over-year basis. This decline was in line with our secular unit decline expectations across this business with legacy promotional solutions revenue driving nearly all the full segment decline, as we continue to prioritize stronger margin printed forms and other business essentials.

現在轉向我們的印刷業務。印刷業務第一季營收為 3.034 億美元，年減 3.4%。這一下降符合我們對該業務的長期單位下降預期，傳統促銷解決方案收入幾乎推動了整個細分市場的下降，因為我們繼續優先考慮利潤更高的印刷表格和其他業務必需品。

Adjusted EBITDA margins declined 30 basis points year over year to 30%, continuing to reflect our operating expense discipline and efficiency across cost of goods sold inputs in particular. Consistent with our long-term outlook, for the balance of 2024, we continue to expect to see low- to mid-single-digit revenue declines across the print segment, with adjusted EBITDA margins remaining in the low-30s.

調整後 EBITDA 利潤率年減 30 個基點至 30%，持續反映了我們的營運費用紀律和銷售投入成本的效率。與我們的長期前景一致，在 2024 年餘下的時間裡，我們繼續預計整個印刷領域的收入將出現低至中個位數的下降，而調整後的 EBITDA 利潤率仍將保持在 30 左右。

Turning now to our balance sheet and cash flow. We ended the first quarter with a net debt level of $1.54 billion, modestly up from our 2023 year-end level, while remaining materially lower than the $1.66 billion mark at the end of Q1 of the prior year, consistent with our ongoing commitment to debt reduction as a top capital allocation priority for the enterprise.

現在轉向我們的資產負債表和現金流。第一季結束時，我們的淨債務水平為15.4 億美元，略高於2023 年年底的水平，同時仍大幅低於上一年第一季末的16.6 億美元大關，這與我們對債務的持續承諾一致將減持作為企業資本配置的首要任務。

Our net debt to adjusted EBITDA ratio was 3.7 times at the end of the quarter, also increasing minimally from the 3.6 times reported at year end. As we've noted, our long-term strategic target remains approximately 3 times leverage, and the first quarter typically reflects our seasonally lowest cash flow result, which tends to drive slight increases to our reporting leverage ratio relative to the balance of the year.

截至本季末，我們的淨負債與調整後 EBITDA 比率為 3.7 倍，也較年末報告的 3.6 倍略有增加。正如我們所指出的，我們的長期策略目標仍然是大約3 倍的槓桿率，第一季通常反映了我們季節性最低的現金流結果，這往往會推動我們的報告槓桿率相對於今年剩餘時間略有上升。

Free cash flow, defined as cash provided by operating activities less capital expenditures, finished at $6.2 million for the quarter, improving by $38 million from the negative results reported during the first quarter of 2023, driven by continued strong working capital efficiency in addition to reduced year-over-year CapEx spend, lower cash incentive payments, and improved operating results.

自由現金流（定義為經營活動提供的現金減去資本支出）本季最終達到620 萬美元，比2023 年第一季度報告的負面結果增加了3,800 萬美元，這是由於營運資本效率持續強勁以及運營資本效率下降所致。

This was a continuation of the stronger-than-anticipated operating cash flow results we have reported since the second quarter of last year, noting that we guided to an expected negative first quarter free cash flow result on our prior earnings call. We continue to expect the first quarter to reflect our seasonally lowest cash flow results, inclusive of payments for annual license and maintenance expenditures, employee compensation payments, and other items.

這是我們自去年第二季以來報告的強於預期的營運現金流結果的延續，並指出我們在先前的財報電話會議上預計第一季自由現金流結果為負。我們仍預期第一季將反映出我們季節性最低的現金流量結果，包括年度許可證和維護支出、員工薪資和其他項目的支付。

As a result of this first-quarter performance and our updated forecast, we are raising our full year free cash flow guidance range, as Barry alluded within his opening remarks. We remain very pleased with our overall operating cash flow generation during recent quarters and our ability to continue our delevering path consistent with our clear capital allocation priorities.

正如巴里在開場白中提到的那樣，由於第一季的業績和我們更新的預測，我們正在提高全年自由現金流指導範圍。我們對最近幾季的整體營運現金流產生以及我們根據明確的資本配置優先事項繼續去槓桿化道路的能力感到非常滿意。

As an additional note regarding our overall capital structure, I wanted to take a moment to provide a bit of additional color as to the status of our present debt maturities summarized on the current slide.

作為關於我們整體資本結構的補充說明，我想花點時間對當前幻燈片中總結的當前債務到期狀況提供一些額外的說明。

As we announced during the first quarter, in mid-March, we entered into an accounts receivable securitization facility with a capacity of up to $80 million. Through the first quarter, we have drawn approximately $65 million on the facility, directing these funds towards prepayments against the balance of our 2024 required quarterly term loan amortization.

正如我們在 3 月中旬第一季宣布的那樣，我們簽訂了一項容量高達 8000 萬美元的應收帳款證券化工具。截至第一季度，我們已從該貸款中提取了約 6,500 萬美元，將這些資金用於根據 2024 年規定的季度貸款攤銷餘額進行預付款。

This AR facility provides us two primary benefits relative to our prior capital structure. First, the 36-month agreement terminates in the first quarter of 2027, and as such, acts to shift out as much as $80 million of maturities to the column labeled 2027 plus on the current slide.

相對於我們先前的資本結構，這項 AR 設施為我們提供了兩個主要好處。首先，為期 36 個月的協議將於 2027 年第一季終止，因此，將多達 8,000 萬美元的到期日轉移到目前投影片上標記為 2027 年以上的欄位。

Secondly, the base rate plus 140 basis points of interest on the new facility provide rate advantage borrowing against the balance of our 2026 variable rate debt. As shown here, our current revolving credit and term loan facilities carried June of 2026 maturities, while our 8% bonds mature in 2029. We remain very comfortable with our present levels of available liquidity and look forward to providing additional updates on any capital structure developments going forward.

其次，基本利率加上新貸款的 140 個基點利息，相對於我們 2026 年可變利率債務的餘額，提供了利率優勢借款。如圖所示，我們目前的循環信貸和定期貸款融資將於 2026 年 6 月到期，而我們的 8% 債券將於 2029 年到期。我們對目前的可用流動性水平仍然非常滿意，並期待提供有關未來資本結構發展的更多最新資訊。

Before turning to guidance, consistent with past quarters, our Board approved a regular quarterly dividend of $0.30 per share on all outstanding shares. The dividend will be payable on June 3, 2024, to all shareholders of record as of market closing on May 20, 2024.

在轉向指導之前，與過去幾個季度一致，我們的董事會批准了對所有流通股每股 0.30 美元的定期季度股息。該股將於2024年6月3日支付給截至2024年5月20日收盤時在冊的所有股東。

I'm pleased to update our 2024 guidance, reaffirming our estimates from our December Investor Day and raising our free cash flow range this evening. As Barry noted previously, we continue to make strong progress in line with our original expectations across all key North Star initiatives. Forecasted realization of the implemented work stream impacts noted in Barry's comments are fully reflected within our existing 2024 guidance ranges.

我很高興更新我們的 2024 年指導，重申我們對 12 月投資者日的估計，並在今晚提高我們的自由現金流範圍。正如巴里之前指出的那樣，我們在所有關鍵的北極星計劃中繼續按照我們最初的預期取得強勁進展。巴里評論中提到的已實施工作流程影響的預測實現充分反映在我們現有的 2024 年指導範圍內。

Our updated guidance figures are as follows, keeping in mind all figures are approximate and reflect the impact of business exits over the past 12 months; revenue of $2.14 billion to $2.18 billion, reflecting flat to 2% comparable adjusted growth versus 2023.

我們更新的指導數據如下，請記住，所有數據均為近似值，反映了過去 12 個月業務退出的影響；營收為 21.4 億美元至 21.8 億美元，與 2023 年相比，調整後的可比成長率持平至 2%。

Adjusted EBITDA of $400 million to $420 million, reflecting between 2% and 7% comparable adjusted growth; adjusted EPS of $3.10 to $3.40, reflecting 3% to 13% comparable adjusted growth, and free cash flow of $80 million to $100 million, increased from our prior guidance range of $60 million to $80 million.

調整後 EBITDA 為 4 億至 4.2 億美元，反映了 2% 至 7% 的可比調整後成長；調整後每股收益為3.10 美元至3.40 美元，反映出3% 至13% 的可比調整後增長，自由現金流為8000 萬美元至1 億美元，高於我們之前6000 萬美元至8000 萬美元的指導範圍。

Finally, in order to assist with your modeling, our guidance assumes the following. Interest expense of $120 million to $125 million; an adjusted tax rate of 26%; depreciation and amortization of $150 million, of which acquisition amortization is approximately $55 million; an average outstanding share count of 44.5 million shares and capital expenditures of approximately $100 million. This guidance is subject to, among other things, prevailing macroeconomic conditions, including interest rates, labor supply issues, inflation, and the impact of other divestitures.

最後，為了幫助您進行建模，我們的指南假設如下。利息支出為1.2億至1.25億美元；調整後的稅率為26%；折舊和攤提1.5億美元，其中購置攤銷約5,500萬美元；平均流通股數量為 4,450 萬股，資本支出約 1 億美元。除其他因素外，該指導意見還受到當前宏觀經濟條件的影響，包括利率、勞動力供應問題、通貨膨脹以及其他資產剝離的影響。

To summarize, we are very pleased with the first-quarter 2024 performance and resulting increased cash flow forecast. We look forward to continuing the growth and operating leverage momentum throughout the balance of the year, while remaining focused on executing against our broad North Star initiatives and continuing our organic revenue growth, EBITDA expansion, and deleveraging journey.

總而言之，我們對 2024 年第一季的業績以及由此帶來的現金流預測增加感到非常滿意。我們期待在今年餘下的時間裡繼續保持成長和營運槓桿勢頭，同時繼續專注於執行我們廣泛的北極星計劃，並繼續我們的有機收入成長、EBITDA 擴張和去槓桿化之旅。

Operator, we are now ready to take questions.

接線員，我們現在準備好回答問題。

(Operator Instructions) Kartik Mehta, Northcoast Research.

（操作員說明）Kartik Mehta，Northcoast Research。

Thank you. Good evening. Barry, on the merchant services side of the business, you saw pretty good growth. And I'm wondering, as you look at your business and try to compare with the industry or the credit card association numbers out there, what type of growth would you anticipate relative to the growth that the associations would see?

謝謝。晚安.巴里，在商業服務方面，您看到了相當不錯的成長。我想知道，當您審視自己的業務並嘗試與行業或信用卡協會的數據進行比較時，相對於協會所看到的增長，您預計會出現哪種類型的增長？

So Kartik, thanks for being here. I would tell you that we're pretty -- we're very pleased with the growth that we're seeing in our merchant business. As you know, with the business that we have there is very focused in a good secular growth categories. And we think that we're actually outperforming the market in those categories.

Kartik，感謝您來到這裡。我想告訴你，我們非常高興——我們對商業業務的成長感到非常滿意。如您所知，我們的業務非常專注於良好的長期成長類別。我們認為我們在這些類別中的表現實際上優於市場。

If you look at the card association numbers, they also include volume growth in very, very high growth categories that often also include higher risk. Our portfolio is a very clean, healthy portfolio that produces quality results over time and we're very pleased by that performance.

如果你看一下信用卡協會的數據，它們還包括非常非常高成長類別的銷售成長，這些類別通常也包含較高的風險。我們的投資組合是一個非常乾淨、健康的投資組合，隨著時間的推移會產生高品質的結果，我們對這種表現感到非常滿意。

And you know from when we acquired the business, it was a low- to mid-single digit grower and we've expanded that and we have a great guide for the year, that we think really talks about it shows the power of bringing that business inside of Deluxe at our One Deluxe go-to-market model where we can bring more products and services to more customers and leverage the trust that customers have in us are now expanded across a bigger portfolio of businesses.

你知道，從我們收購該業務時起，它是一個中低個位數的種植者，我們已經擴大了這一範圍，我們有一個很好的今年指南，我們認為真正談論它顯示了帶來這一點的力量在我們的 One Deluxe 上市模式中，Deluxe 內部的業務，我們可以為更多客戶帶來更多產品和服務，並利用客戶對我們的信任，現在將其擴展到更大的業務組合。

Chip, as you look at the drivers for free cash flow and the improvement that you have, but you're going to see in 2024 in the raised guidance, if you look at those factors, are those factors other factors that you look at where you can see maybe an opportunity to improve and the free cash flow guidance be maybe on the higher end or improve even more?

Chip，當你審視自由現金流的驅動因素和你所擁有的改善時，你將在 2024 年在提高的指導中看到，如果你審視這些因素，這些因素是你關注的其他因素嗎？看到也許有一個改進的機會，自由現金流指導可能會更高或更進一步？

Yeah. I appreciate the question. So I'll tell you the strong Q1 really was once again a narrative of really good working capital efficiency. You may recall, in the fourth quarter, we surprise to the positive based on extremely strong working capital. That left me hesitant to change my existing guidance range coming into the year. And once again, here in the first quarter, the team managed working capital very well.

是的。我很欣賞這個問題。因此，我會告訴您，第一季的強勁表現確實再次體現了良好的營運資本效率。您可能還記得，在第四季度，我們對基於極其強勁的營運資本的正面結果感到驚訝。這讓我猶豫是否要改變今年的現有指導範圍。在第一季度，該團隊再次很好地管理了營運資金。

And we really pulled forward cash to deliver a solid number, nearly $40 million better than a year ago. Given it is working capital, I have to be mindful that some of it could be timing and a pull forward of future quarters. So my view is roughly half of that sticks for the year at this moment in time.

我們確實預支了現金，交付了一個可靠的數字，比一年前增加了近 4000 萬美元。鑑於它是營運資金，我必須注意其中一些可能是時間安排和未來幾季的提前。因此，我的觀點是，今年目前的情況大約有一半。

And at this point, we need to continue to execute and see how the year goes on. And for sure, there's an opportunity to over improve with execution and other levers as the year goes on. But at this moment in time, I look at that strong start as a good sign of what's to come. We raise the $20 million range for now and then we'll see how we execute as the year goes on.

此時此刻，我們需要繼續執行，看看這一年會如何發展。可以肯定的是，隨著時間的推移，我們有機會透過執行力和其他手段來過度改進。但此時此刻，我認為這個強勁的開局是未來發展的好兆頭。我們暫時籌集了 2000 萬美元的資金，然後我們將看看隨著時間的推移我們將如何執行。

The other point would be, I do anticipate some of that cash flow that occurred in the first quarter being a slight pull forward from the second. I do expect the first half of the year to be significantly better than it was a year ago. But I'm not really sure exactly what it means from a Q2 number, specifically compared to last year. But overall, really pleased with the performance and a great opportunity to raise the guidance here at the start of the year.

另一點是，我確實預計第一季發生的部分現金流將比第二季略有提早。我確實預計今年上半年會比一年前好得多。但我不太確定第二季的數字意味著什麼，特別是與去年相比。但總的來說，我對錶現非常滿意，也是在今年年初提高指導的絕佳機會。

And then just one last question, Chip. Last quarter, you gave a very good overview of maybe how the quarters were going to play out from an EPS standpoint. I'm wondering if you could provide just maybe cadence or your expectations as we go through the year?

最後一個問題，奇普。上個季度，您從每股收益的角度很好地概述了各季度的表現。我想知道您是否可以提供我們這一年的節奏或您的期望？

Yeah. Maybe I'll start at the top. I know you asked DPS. Let me just start at the top. I think the one thing -- so first of all, really pleased with the data business and the 35% growth rate that they post, just incredible. Obviously, we're not expecting that to continue here in the second quarter.

是的。也許我會從頂部開始。我知道你問過DPS。讓我從頂部開始。我認為，首先，我對數據業務和他們發布的 35% 的成長率感到非常滿意，這真是令人難以置信。顯然，我們預計這種情況不會在第二季繼續下去。

In my prepared remarks, I specifically pointed you guys to look at the average of the previous two to three quarters, specifically three in this case because revenue was roughly $65 million in the third quarter of last year, $45 million in the fourth and then $60 million here in the first.

在我準備好的發言中，我特別指出你們看一下前兩到三個季度的平均值，在這種情況下具體是三個季度，因為去年第三季度的收入約為6500 萬美元，第四季度為4500 萬美元，然後是60 美元萬這裡第一。

And so if you average that out, I think that's a good indicator for where data revenue will be in the second quarter. Now data is lapping some tough comps, especially in the second and the third quarter. So if you think about the sequence of the top line, I think really getting data right is the key piece on the Board to land on the right revenue starting point.

因此，如果將其平均，我認為這是衡量第二季度數據收入狀況的一個很好的指標。現在的數據正在超越一些艱難的比較，尤其是在第二季和第三季。因此，如果你考慮一下頂線的順序，我認為真正獲得正確的數據是董事會實現正確收入起點的關鍵部分。

Flowing that down through towards profitability, I don't really think I have great guidance for you other than we would expect that as the year goes on, the benefit from North Star, as Barry mentioned, should grow over time, at least until we get to the fourth quarter where we lap the big in-year benefit from a year ago.

將其向下推向盈利能力，我真的認為我對您沒有很好的指導，除了我們預計隨著時間的推移，正如巴里提到的那樣，北極星的收益應該隨著時間的推移而增長，至少直到我們進入第四季度，我們實現了去年同期的巨大收益。

So I would expect margins to be pretty solid over the next few quarters, growing overall dollars. And it should flow to reasonable EPS numbers here in the next couple of quarters.

因此，我預計未來幾季的利潤率將相當穩定，整體美元將會成長。在接下來的幾個季度中，它應該會產生合理的每股盈餘數據。

Perfect. Thank you very much. Appreciate it.

完美的。非常感謝。欣賞它。

Jonnathan Navarrete, Cowen Inc.

喬納森·納瓦雷特，考恩公司

Hey, guys. Jonnathan on for Lynch. Nice job in the quarter, a nice job of free cash flow as well. I know you -- please share it, this is largely driven by working capital. So can you maybe walk us through the puts and takes, like what items in working capital drove the positive free cash flow?

大家好。喬納森換下林奇。本季的表現不錯，自由現金流也不錯。我知道你——請分享一下，這很大程度上是由營運資金驅動的。那麼，您能否向我們介紹看跌期權和看跌期權，例如營運資金中的哪些項目推動了正自由現金流？

Yeah. Sure, Jonnathan. And it was mostly from an AR perspective. So very pleased with where our DSOs landed on the AR side. By my calculation, the DSO was at 28 days in the quarter with a substantial improvement from where it was a year ago.

是的。當然，喬納森。這主要是從 AR 的角度來看的。我們對我們的 DSO 在 AR 方面的表現非常滿意。根據我的計算，本季的 DSO 為 28 天，與一年前相比有了顯著改善。

And you got to keep in mind a year ago, we had just gone live on our ERP upgrade. So that did impact our overall AR balance a bit. And so it's definitely one of the reasons why AR could be so solid, but the 28 days DSO compares to 31 at the end of the year. So it does show regardless of the timing of the year-over-year perspective from ERP, we did make progress.

您必須記住，一年前，我們剛剛上線 ERP 升級。所以這確實對我們的整體 AR 平衡產生了一些影響。因此，這絕對是 AR 如此穩定的原因之一，但 28 天的 DSO 與年底的 31 天相比。因此，它確實表明，無論從 ERP 的同比角度來看，我們確實取得了進展。

The other thing I'll just point you to is we continue to do well managing our inventory. This is a journey we've been talking about probably since the second quarter of last year, but we've been steadily walking our inventory balances down as, again, we go live on the ERP. It's been many, many years, but we're through the supply chain disruptions and some of the challenges that we faced back in the 2021 time frame.

我要向您指出的另一件事是我們繼續做好庫存管理。這是我們可能從去年第二季開始就一直在談論的一段旅程，但隨著 ERP 的上線，我們一直在穩步減少庫存餘額。已經過去很多很多年了，但我們已經克服了供應鏈中斷以及我們在 2021 年所面臨的一些挑戰。

And so as you look at what we've done since about Q2 of last year to where we are now, inventory was a good driver of working capital improvement as well. So really at the highest level, you're going to see it in AR and inventory when you get a chance to digest our Q later this week.

因此，當你看看我們自去年第二季以來所做的事情到現在的情況時，庫存也是營運資本改善的良好推動力。因此，實際上在最高級別上，當您本週晚些時候有機會消化我們的問題時，您將在 AR 和庫存中看到它。

Great. Thanks. My second one is on EBITDA. What levers do you guys have left available to improve EBITDA margins in 2024? And is there any segment that stands out with the most opportunity?

偉大的。謝謝。我的第二個目標是 EBITDA。你們還有哪些槓桿可以用來提升 2024 年的 EBITDA 利潤率？是否存在最有機會脫穎而出的細分市場？

The question was what levers do we have to improve EBITDA?

問題是我們有哪些槓桿來提升 EBITDA？

Yes. That's right. I'm guessing it is largely driven by cost improvements, but I'm just curious --

是的。這是正確的。我猜這很大程度上是由成本改進驅動的，但我只是很好奇--

Yeah. So if you think back to our Investor Day, it's the page I would think of, it's the page I said that if there's one page I want you guys to remember from the day, it's this one. I clearly remembered it, but I did a walk of our starting point for the program of North Star to where we'd be at the very end of 2026. But if you think about narrowing that focus into just this year, it's really the same walk.

是的。所以，如果你回想一下我們的投資者日，我會想到這一頁，這就是我說的，如果有一頁我希望你們從那天起記住，那就是這一頁。我清楚記得，但我從北極星計畫的起點到 2026 年底我們的位置走了一圈。但如果你考慮將重點縮小到今年，那實際上是同樣的事情。

So we started at $391 million as our comparable adjusted beginning balance for the year. Of course, write off, we had to take off the secular declines, which, you know, I like big round numbers, so let's call that [$25 million].

因此，我們的年初可比調整期初餘額為 3.91 億美元。當然，註銷，我們必須消除長期下降，你知道，我喜歡大整數，所以我們稱之為[2500萬美元]。

Really, from that point, to the mid-range of our guidance, that the lever is going to be what we're achieving in North Star. And as a reminder, we've got all the work streams that go across -- or discipline, pricing actions, procurement savings, you name it. We've laid it all out on the slide deck. All of those levers are there.

事實上，從那時起，到我們指導的中間範圍，槓桿將成為我們在北極星所實現的目標。提醒一下，我們已經掌握了所有涉及的工作流程——或者紀律、定價行為、採購節省等等。我們已將所有內容都放在投影片上。所有這些槓桿都在那裡。

And so if you combine the cost levers we're doing as part of North Star, along with the revenue initiatives, and just growth across the payments and data business; which, as a reminder, our scale businesses, that as we grow the top line across the three B2B merchant emerging data, it should bring improved margins with it. And again, really, as part of North Star going after the corporate cost center as well to try to remove cost from the shared services.

因此，如果你將我們作為北極星的一部分所做的成本槓桿與收入計劃以及支付和數據業務的成長結合起來；提醒我們，隨著我們在三個 B2B 商家新興數據中增加收入，它應該會帶來更高的利潤。再說一次，實際上，作為北極星的一部分，我們也在追求企業成本中心，並試圖消除共享服務的成本。

So I think the answer is, it's all of the obvious levers you would expect. It's all the things we've gone through as part of the North Star journey. And the simple walk is exactly like I laid out.

所以我認為答案是，這就是你所期望的所有明顯的槓桿。這是我們在北極星之旅中經歷的所有事情。簡單的步行就跟我佈置的一模一樣。

Got it. Thank you. And my last question is actually on North Star. So can you just share a little bit of details of where we are today? How much was spent in North Star during the first quarter and -- yeah. That's it. Thank you.

知道了。謝謝。我的最後一個問題實際上是關於北極星的。那麼可以分享一下我們今天的情況嗎？第一季在北極星花了多少錢——是的。就是這樣。謝謝。

Yeah, sure. So you'll see in our earnings release that we had roughly $15 million of restructuring costs in the first quarter. The majority of that was North Star, not perfect. There was still $1 million or $2 million non-North Star related activities, but net-net, it was mostly that.

好，當然。因此，您會在我們的收益報告中看到，我們第一季的重組成本約為 1500 萬美元。其中大部分是北極星，並不完美。仍然有 100 萬或 200 萬美元的非北極星相關活動，但淨淨，大部分都是這樣。

So you may recall, we were at roughly $45 million through the program at the end of the year. So I call it right around $60 million and North Star restructuring is spend at this point. You'll recall that the overall program has an estimated cost of somewhere between $115 million and $135 million. So we sit here today at $60 million, and that leaves us $55 million to $75 million left to go. We do expect a little could drift into the first half of next year, mostly Q1, but a little bit could drift in.

您可能還記得，到年底我們透過該計劃獲得了大約 4500 萬美元。所以我稱之為大約 6000 萬美元，北極星重組此時已花費。您可能還記得整個計劃的估計成本在 1.15 億美元到 1.35 億美元之間。因此，我們今天坐在這裡的資金為 6000 萬美元，還剩下 5500 萬至 7500 萬美元。我們確實預計明年上半年（主要是第一季）可能會出現一些變化，但也可能會出現一些變化。

So everything's on track from a spend perspective. The other thing I signaled in Q1 is I -- you guys will recall, we spent $90 million in restructuring in 2023. We said it would come down here in 2024. I provided a range of $60 million to $80 million. I'm still in that range.

因此，從支出角度來看，一切都步入正軌。我在第一季表示的另一件事是——你們還記得，我們​​在 2023 年花了 9,000 萬美元進行重組。我們說過它會在 2024 年落到這裡。我提供的資金範圍為 6000 萬至 8000 萬美元。我還在這個範圍內。

So kind of take everything I just said, sitting at $60 million today through the first quarter, $55 million to $75 million left to go the program with some of it shifting into next year, and overall staying in that range, I think you can figure out how to sequence the restructuring dollars the rest of the year.

因此，請採納我剛才所說的一切，從今天到第一季度，預算為6000 萬美元，該計劃還剩5500 萬到7500 萬美元，其中一些將轉移到明年，總體保持在這個範圍內，我想你可以算出討論如何安排今年餘下時間的重組資金。

Charlie Strauzer, CJS Securities.

查理·斯特勞澤 (Charlie Strauzer)，CJS 證券。

Hi, good evening. Just making sure you hear me okay.

嗨，晚上好。只是確保你能聽到我的聲音。

[We can hear you].

[我們能聽到你]。

Great. Just when looking at the project North Star, and you talked a lot about that today. One of the things that's always not kind of a hallmark of Deluxe is the ability to take cost out of the business over the years and yet the revenue side. So it's been more elusive or more difficult one to capitalize on those opportunities. Where are you on the revenue front there? And can you maybe provide a little more color as to some of the opportunities that are in front of you on the revenue side?

偉大的。剛才在看「北極星」計畫時，您今天談到了很多。豪華版的一大特點是多年來能夠降低業務成本，但同時也能降低營收。因此，利用這些機會變得更加難以捉摸或更困難。您在收入方面處於什麼位置？您能否就收入方面面臨的一些機會提供更多資訊？

So Charlie, really appreciate the question. And I think it's one of the things that really is a hallmark of where Deluxe is today. So at the beginning of my prepared remarks, I talked about the progress we're making in our payments and data business, which is about 43% of the company's revenue today. And you saw in the first quarter on a combined basis, those businesses, the portfolio of businesses grew over 8% with healthy margins at 22%.

所以查理，真的很感激這個問題。我認為這確實是如今 Deluxe 的標誌之一。因此，在我準備好的演講開始時，我談到了我們在支付和數據業務方面取得的進展，該業務約占公司目前收入的 43%。你可以看到，第一季度，這些業務、業務組合的綜合成長率超過 8%，利潤率維持在 22% 的健康水準。

So we fundamentally think the company is in a very different place today where we have 43% of the company's revenue growing in the high-single digit range with very attractive margins. And we're doing it at the same time that we're controlling or limiting the downside exposure on the secular declining business-like checks, where we're continuing to win market share, putting in operational improvements, et cetera, to produce and protect that cash flow.

因此，我們從根本上認為，公司如今處於一個非常不同的境地，公司 43% 的收入在高個位數範圍內成長，利潤率非常有吸引力。我們這樣做的同時，我們正在控製或限制長期下降的商業支票的下行風險，我們將繼續贏得市場份額，進行營運改進等，以生產和保護現金流。

So within the company today is a very different company than the company of just a few years ago that was not growing organically. And if you do see in the aggregates, we are now in the fourth consecutive year. And Charlie, just once again, the fourth consecutive year of organic revenue growth. And while that number may be modest, it is proving that we can consistently grow the company and we're doing that by the success of the payments and data businesses in aggregate.

因此，今天的公司內部與幾年前沒有有機成長的公司截然不同。如果你確實從整體來看，我們現在已經是連續第四年了。而查理，再次連續第四年實現有機收入成長。雖然這個數字可能不大，但它證明我們可以持續發展公司，我們正在透過支付和數據業務的整體成功來做到這一點。

(Operator Instructions) Marc Riddick, Sidoti.

（操作員說明）Marc Riddick，Sidoti。

Thank you. Good evening, everyone -- Marc. So I was sort of curious if we could spend a little time on a couple of the other North Star threats that we haven't had a chance to touch on, one of which is around real estate. And I was wondering if you could maybe give us an update there? If there's anything that we should be thinking about on that front?

謝謝。大家晚上好——馬克。所以我有點好奇我們是否可以花一點時間討論我們還沒有機會觸及的其他幾個北極星威脅，其中一個與房地產有關。我想知道您能否提供我們最新消息？在這方面我們是否應該考慮什麼？

Marc, you may recall, we have made a lot of progress on real estate consolidating our operating footprint, especially around our print production, our lockbox operation, et cetera. And we continue to make more progress even in the first quarter, consolidating some of our office locations and the space we have in that and our footprint.

馬克，您可能還記得，我們​​在房地產方面取得了很大進展，鞏固了我們的營運足跡，特別是在我們的印刷生產、密碼箱營運等方面。即使在第一季度，我們也繼續取得更多進展，鞏固了我們的一些辦公地點以及我們擁有的空間和足跡。

I think you'll continue to see us to make incremental improvement there, but over the last few years, we've already made a very significant step forward on consolidating our real estate footprint. And while there's a bit more to go, I feel like we have made a significant progress there.

我認為您將繼續看到我們在這方面不斷取得進步，但在過去幾年中，我們已經在鞏固我們的房地產足跡方面邁出了非常重要的一步。雖然還有一些工作要做，但我覺得我們已經取得了重大進展。

Great. And then I was wondering if you could also sort of -- I wanted to step back to one of the comments with cash flow improvement year over year. And Chip, I think you brought up the commentary around the timing of the ERP system last year.

偉大的。然後我想知道你是否也可以——我想回到現金流逐年改善的評論之一。Chip，我認為您去年提出了有關 ERP 系統時間表的評論。

If I remember correctly, and correct me if I'm wrong so I'm not off the top my head, I'm trying to remember if this was right, there was like a little bit of a blip when you guys went live, that negative maybe set you back a week or so or something like that. So relatively speaking, there's -- I guess you sort of up against it a little bit last year with that part of it. Was there a little bit of an impact there that you obviously weren't seeing this year that was somewhat helpful there?

如果我沒記錯的話，請糾正我，如果我錯了，這樣我就不會失去理智，我試圖記住這是否正確，當你們上線時，有一點點小插曲，那個負面因素可能會讓你推遲一周左右或類似的時間。相對而言，我想你去年在這部分方面遇到了一些阻力。是否有一些你今年顯然沒有看到的影響，但對那裡有幫助？

Yeah. A little bit. I mean, if you think about our print businesses, they would have had a little bit of pressure in Q1 a year ago with not being able to get everything out the door with perfect timing and then made up for it in the second quarter. And the blend of everything, when you think about secular unit decline, everything going on, it's not a huge part of the print story.

是的。一點點。我的意思是，如果你考慮我們的印刷業務，他們在一年前的第一季會面臨一些壓力，無法在完美的時機把所有東西都拿出來，然後在第二季度彌補。當你考慮長期單位下降時，所有事情的混合，所有正在發生的事情，這並不是印刷故事的重要部分。

But if you look at in absolute terms, there was a bit of pressure we would have seen in the first quarter last year that gave us favorable in the second quarter. So as you look ahead to Q2 comps, there will be a little bit of pressure with brands, but we think it really doesn't change the narrative of what's going on there, with the business just continuing to execute in this low- to mid-single digit decline levels.

但如果你從絕對角度來看，去年第一季我們會看到一些壓力，這給我們第二季帶來了有利的影響。因此，當您展望第二季度的業績時，品牌將面臨一些壓力，但我們認為這確實不會改變正在發生的事情的敘述，業務只是繼續在中低端執行-個位數下降水平。

Right. Got you. And then finally for me, I was curious as to maybe if you could give us a little bit of a pricing dynamic update of what you're seeing out there as far as -- are there any particular areas where pricing pressures or any pushback has been seen that that should be called out? Or what are we seeing there as far as your expectations as to the pricing and the escalations there?

正確的。明白你了。最後對我來說，我很好奇，也許你能給我們一些你所看到的定價動態更新——是否有任何特定領域存在定價壓力或任何阻力？或者，就您對定價和升級的期望而言，我們看到了什麼？

So we continue to be successful at moving the price for our products up in the marketplace really across the portfolio. And we think we're able to do that because of the quality of the product and the service that we provide.

因此，我們繼續成功地提高了整個產品組合中產品在市場上的價格。我們認為我們能夠做到這一點是因為我們提供的產品品質和服務。

We have -- of course, no customer wants to see a price increase. So I think that we've been very responsible, and I think our customers would agree we've been responsible, in the way we have been advancing our prices in the marketplace. And we have been able to make those price increases sand and we continue to take price.

當然，我們沒有客戶希望看到價格上漲。因此，我認為我們非常負責任，而且我認為我們的客戶也會同意我們在市場上提高價格的方式是負責任的。我們已經能夠控制這些價格上漲，並且我們將繼續接受價格。

We had -- we put some additional price changes increases in the first quarter that will benefit later in the year, because as you know, some of the increases get announced, but it takes a bit of time for them to be implemented and actually hit the P&L. But we continue to take price across the portfolio and it does not appear to have a significant impact on volume.

我們在第一季進行了一些額外的價格調整，這將在今年稍後受益，因為如您所知，一些價格上漲已經宣布，但需要一些時間才能實施並真正發揮作用損益表。但我們繼續對整個投資組合進行定價，這似乎並未對交易量產生重大影響。

Yeah. Marc, I would just add that you may recall at Investor Day we talked about pricing as one of the North Star initiatives, and how it wishes to advancing itself from inflationary input costs relative to output price, and really moving to more of analytical view of price stratification across the customer base or product base; really moving the needle on how we do it. And so that is part of the initiatives, and is one of the drivers behind why we continue to do it and feel good about the responsible price we're taking.

是的。馬克，我想補充一點，你可能還記得在投資者日我們討論了定價作為北極星計劃之一，以及它如何希望擺脫相對於產出價格的通貨膨脹投入成本，並真正轉向更多的分析觀點整個客戶群或產品群的價格分層；真正改變了我們的做法。因此，這是舉措的一部分，也是我們繼續這樣做的背後驅動力之一，並對我們所採取的負責任的價格感到滿意。

I would say, if you boil it all the way up and you got to remember you got parts of the business with some decline aspects of it, you got to normalize at all. But at the highest level, I'd say our growth in the first quarter was probably right down the middle 50/50 price volume, healthy mix of both.

我想說的是，如果你把它一路煮沸，你必須記住你的部分業務有一些下降的方面，你必須完全正常化。但在最高水平上，我想說我們第一季的成長可能正好低於 50/50 價格量的中間值，兩者都是健康的組合。

Great. Well, certainly an encouraging start to the year. Thank you very much.

偉大的。嗯，這無疑是今年令人鼓舞的開始。非常感謝。

That concludes our Q&A session. I will now turn the conference back over to Brian Anderson for closing remarks.

我們的問答環節到此結束。現在我將把會議轉回布萊恩·安德森（Brian Anderson）做閉幕詞。

Thank you, Marc. Before we conclude, I'd like to share that management will be participating in person at both the Needham Technology, Media, and Consumer Conference on May 14 and 15, and the TD Cowen Technology Media and Telecom Conference on May 29 and 30, both in New York during the quarter.

謝謝你，馬克。在結束之前，我想告訴大家，管理層將親自參加 5 月 14 日至 15 日舉行的 Needham 技術、媒體和消費者會議，以及 5 月 29 日至 30 日舉行的 TD Cowen 技術媒體和電信會議。本季在紐約。

Thank you again for joining us today, and we look forward to speaking with you all again in August, as we share our second-quarter results.

再次感謝您今天加入我們，我們期待在八月再次與大家交談，分享我們的第二季業績。

Ladies and gentlemen, that concludes today's call. Thank you for all who joined. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝所有加入的人。您現在可以斷開連線。