Deluxe Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Deluxe Corporation has submitted its 2023 annual report on Form 10-K, detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

DELUXE CORP (DLX) filed a Annual Report (10-K) with the SEC on February 22, 2024. Deluxe Corporation filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 801 S. Marquette Ave., Minneapolis, MN 55402. Deluxe Corporation was formerly known as Deluxe Check Printers Inc. The filing includes financial data for the fiscal years 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking DELUXE CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Deluxe Corporation's financial health, operational performance, and strategic initiatives for the fiscal year 2023, which is crucial for investors to assess the company's current standing and future prospects. The detailed financial statements and risk factors outlined in the report are essential for stakeholders to understand the company's market position, potential challenges, and compliance with regulatory requirements.

Risk Assessment

Risk Level: medium — DELUXE CORP shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. However, the absence of specific financial performance metrics or significant business updates in the provided text necessitates a 'medium' risk assessment, as a full analysis would require deeper examination of the complete document.

Analyst Insight

Investors should review the full 10-K filing to analyze Deluxe Corporation's financial performance, strategic direction, and risk factors for fiscal year 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-22 — Filing Date (FILED AS OF DATE)
• 1988-06-08 — Date of Name Change (FORMER COMPANY)

Key Players & Entities

• DELUXE CORP (company) — FILER
• DELUXE CHECK PRINTERS INC (company) — FORMER COMPANY
• MN (location) — STATE OF INCORPORATION
• MINNEAPOLIS (location) — BUSINESS ADDRESS CITY

FAQ

Industry Context

Deluxe Corporation operates within the business services and financial technology sectors, providing a range of solutions for small businesses and financial institutions.

Regulatory Implications

The filing is a standard 10-K, adhering to the regulations set forth by the Securities and Exchange Commission (SEC) for public companies in the United States.

What Investors Should Do

1. Review the full 10-K for detailed financial statements and management discussion.
2. Analyze the risk factors section for potential business challenges.
3. Compare 2023 performance against previous years (2022, 2021) as presented in the filing.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-22: Filing Date — Date Deluxe Corp filed its 10-K with the SEC.

Year-Over-Year Comparison

This is the initial filing data provided for the 2023 10-K. Comparative data from previous filings would be needed for a full 'vs last filing' analysis.

Key Financial Figures

• $1.00 — ich registered Common Stock, par value $1.00 per share DLX NYSE Securities registe
• $100 million — he overall North Star program targets a $100 million run-rate improvement in free cash flow
• $80 million — te improvement in free cash flow and an $80 million run-rate improvement in adjusted EBITDA
• $40 billion — ales channels, processing approximately $40 billion in annual transaction volume. Payments
• $5 million — i.e., those with annual revenue between $5 million and $500 million). We meet that market
• $500 million — h annual revenue between $5 million and $500 million). We meet that market need by shipping

Filing Documents

• dlx-20231231.htm (10-K) — 2668KB
• exhibit10141231202310k.htm (EX-10.14) — 85KB
• exhibit10151231202310k.htm (EX-10.15) — 51KB
• exhibit10231231202310k.htm (EX-10.23) — 41KB
• exhibit2111231202310k.htm (EX-21.1) — 7KB
• exhibit2311231202310k.htm (EX-23.1) — 2KB
• exhibit3111231202310k.htm (EX-31.1) — 9KB
• exhibit3121231202310k.htm (EX-31.2) — 9KB
• exhibit3211231202310k.htm (EX-32.1) — 6KB
• exhibit971231202310k.htm (EX-97) — 37KB
• dlx-20231231_g1.jpg (GRAPHIC) — 30KB
• dlx-20231231_g2.jpg (GRAPHIC) — 118KB
• 0000027996-24-000065.txt (&nbsp;) — 16111KB
• dlx-20231231.xsd (EX-101.SCH) — 70KB
• dlx-20231231_cal.xml (EX-101.CAL) — 173KB
• dlx-20231231_def.xml (EX-101.DEF) — 494KB
• dlx-20231231_lab.xml (EX-101.LAB) — 1219KB
• dlx-20231231_pre.xml (EX-101.PRE) — 804KB
• dlx-20231231_htm.xml (XML) — 2958KB

Risk Factors

Item 1A. Risk Factors 11

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 21

Cybersecurity

Item 1C. Cybersecurity 21

Properties

Item 2. Properties 22

Legal Proceedings

Item 3. Legal Proceedings 22

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 22

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22

[Reserved]

Item 6. [Reserved] 23

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 38

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 40

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 86

Controls and Procedures

Item 9A. Controls and Procedures 86

Other Information

Item 9B. Other Information 87

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 87

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 87

Executive Compensation

Item 11. Executive Compensation 87

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 87

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 88

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 88

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 88

Form 10-K Summary

Item 16. Form 10-K Summary 92

Signatures

Signatures 93 2 PART I Please note that this Annual Report on Form 10-K contains statements that may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for our products and services, acquisitions and divestitures, anticipated results of litigation, regulatory developments or general economic conditions. Because actual results may differ materially from those expressed or implied by these forward-looking statements, we caution readers not to place undue reliance on these statements. Our business, financial condition, cash flows and operating results are influenced by many factors, which are often beyond our control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. Part I, Item 1A of this report outlines known material risks and important information to consider when evaluating our forward-looking statements. The Reform Act provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information. When we use the words or phrases "should result," "believe," "intend," "plan," "are expected to," "targeted," "will continue," "will approximate," "is anticipated," "estimate," "project," "outlook," "forecast" or similar expressions in this Annual Report on Form 10-K, in future filings with the Securities and Exchange Commission ("SEC"), in our press releases, investor presentations and in oral statements made by our representatives, they indicate forward-looking statements within the meaning of the Reform Act. Readers are cautioned that all forward-looking statements are based on current expectations and estimates and apply only as of the date of this repo

BUSINESS

ITEM 1. BUSINESS COMPANY OVERVIEW More than 105 years ago, Deluxe Corporation began providing payment solutions. Our longevity is a testament to our innovation, our ability to evolve with our customers, and the trust they place in us. We have transformed to a modern payments and data company that champions business so communities thrive. We support millions of small businesses, thousands of financial institutions and hundreds of the world's largest consumer brands. We sell our products and services primarily in North America, and we operate 4 business segments that are generally organized by product type. These segments provide the following products and services: Business Segment Category Percentage of 2023 consolidated revenue Description Payments Merchant services and other payment solutions 20.5 % Merchant in-store, online and mobile payment solutions; payables as a service, including eChecks, Medical Payment Exchange and Deluxe Payment Exchange; and payroll and human resources services Treasury management solutions 11.0 % Automated receivables technology, including remittance and lockbox processing, remote deposit capture and cash application, as well as payment acceptance solutions Total 31.5 % Data Solutions Data-driven marketing solutions 8.8 % Solutions for marketing business-to-business and business-to-consumer Web and hosted solutions 2.1 % Web-based solutions, including financial institution profitability reporting and business incorporation services, and our former web hosting and logo design businesses that were fully divested in June 2023 Total 10.9 % Promotional Solutions Marketing and promotional solutions 12.7 % Business forms and accessories, including envelopes, labels, stationery and more Forms and other products 12.0 % Advertising specialties, promotional apparel and print services Total 24.7 % Checks Checks 32.9 % Printed business and personal checks 3 During the past 2 years, we made strategic decisions to exit certain of

View Full Filing

View this 10-K filing on SEC EDGAR