XML 35 R22.htm IDEA: XBRL DOCUMENT v3.23.1
Business segment information
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Business segment information
We operate 4 reportable business segments, generally organized by product type, as follows:

•Payments – This segment includes our merchant in-store, online and mobile payment solutions; treasury management solutions, including remittance and lockbox processing, remote deposit capture, receivables management, payment processing and paperless treasury management; payroll and disbursement services, including Deluxe Payment Exchange; and fraud and security services.

•Data Solutions – This segment includes data-driven marketing solutions; hosted solutions, including digital engagement, logo design, financial institution profitability reporting and business incorporation services; and web hosting and design services. We expect to complete the sale of our remaining web hosting and logo design businesses in May 2023. Further information regarding this divestiture can be found in Note 6.

•Promotional Solutions – This segment includes business forms, accessories, advertising specialties and promotional apparel.

•Checks – This segment includes printed business and personal checks.
The accounting policies of the segments are the same as those described in the Notes to Consolidated Financial Statements included in the 2022 Form 10-K. We allocate corporate costs for our shared services functions to our business segments when the costs are directly attributable to a segment. This includes certain sales and marketing, human resources, supply chain, real estate, finance, information technology and legal costs. Costs that are not directly attributable to a business segment are reported as Corporate operations and consist primarily of marketing, accounting, information technology, facilities, executive management and legal, tax and treasury costs that support the corporate function. Corporate operations also includes other income. All of our segments operate primarily in the U.S., with some operations in Canada. In addition, Data Solutions has operations in portions of Europe, as well as partners in Central and South America, and had operations in Australia until May 2022 when the Australian portion of our web hosting business was sold.

Our chief operating decision maker (i.e., our Chief Executive Officer) reviews earnings before interest, taxes, depreciation and amortization (EBITDA) on an adjusted basis for each segment when deciding how to allocate resources and to assess segment operating performance. Adjusted EBITDA for each segment excludes depreciation and amortization expense, interest expense, income tax expense and certain other amounts, which may include, from time to time: asset impairment charges; restructuring and integration costs; share-based compensation expense; acquisition transaction costs; certain legal-related expense; and gains or losses on sales of businesses and long-lived assets. Our Chief Executive Officer does not review segment asset information when making investment or operating decisions regarding our reportable business segments.

Segment information for the quarters ended March 31, 2023 and 2022 was as follows:

Quarter Ended March 31,
(in thousands)20232022
Payments:
Revenue$171,983 $166,208 
Adjusted EBITDA36,556 36,435 
Data Solutions:
Revenue58,594 69,497 
Adjusted EBITDA15,317 17,326 
Promotional Solutions:
Revenue136,141 133,243 
Adjusted EBITDA18,810 16,945 
Checks:
Revenue178,647 187,067 
Adjusted EBITDA76,479 82,797 
Total segment:
Revenue$545,365 $556,015 
Adjusted EBITDA147,162 153,503 
The following table presents a reconciliation of total segment adjusted EBITDA to consolidated income before income taxes:
Quarter Ended March 31,
(in thousands)20232022
Total segment adjusted EBITDA$147,162 $153,503 
Corporate operations(46,726)(53,883)
Depreciation and amortization expense(43,520)(41,597)
Interest expense(30,016)(20,324)
Net income attributable to non-controlling interest28 36 
Restructuring and integration costs(14,094)(16,303)
Share-based compensation expense(5,866)(8,142)
Acquisition transaction costs— (49)
Certain legal-related expense(429)(683)
Income before income taxes$6,539 $12,558 

The following tables present revenue disaggregated by our product and service offerings:
Quarter Ended March 31, 2023
(in thousands)PaymentsData
Solutions		Promotional SolutionsChecksConsolidated
Checks$— $— $— $178,647 $178,647 
Merchant services and other payment solutions111,509 — — — 111,509 
Marketing and promotional solutions
— — 70,651 — 70,651 
Forms and other products
— — 65,490 — 65,490 
Treasury management solutions
60,474 — — — 60,474 
Data-driven marketing solutions
— 39,282 — — 39,282 
Web and hosted solutions
— 19,312 — — 19,312 
Total revenue$171,983 $58,594 $136,141 $178,647 $545,365 
Quarter Ended March 31, 2022
(in thousands)PaymentsData
Solutions		Promotional SolutionsChecksConsolidated
Checks$— $— $— $187,067 $187,067 
Merchant services and other payment solutions108,270 — — — 108,270 
Marketing and promotional solutions
— — 62,927 — 62,927 
Forms and other products
— — 70,316 — 70,316 
Treasury management solutions
57,938 — — — 57,938 
Data-driven marketing solutions
— 41,843 — — 41,843 
Web and hosted solutions
— 27,654 — — 27,654 
Total revenue$166,208 $69,497 $133,243 $187,067 $556,015 

The following tables present revenue disaggregated by geography, based on where items are shipped from or where services are performed:
Quarter Ended March 31, 2023
(in thousands)PaymentsData
Solutions		Promotional SolutionsChecksConsolidated
United States$159,464 $55,747 $130,495 $171,847 $517,553 
Foreign, primarily Canada12,519 2,847 5,646 6,800 27,812 
Total revenue$171,983 $58,594 $136,141 $178,647 $545,365 
Quarter Ended March 31, 2022
(in thousands)PaymentsData
Solutions		Promotional SolutionsChecksConsolidated
United States$156,268 $60,624 $127,242 $179,088 $523,222 
Foreign, primarily Canada and Australia
9,940 8,873 6,001 7,979 32,793 
Total revenue$166,208 $69,497 $133,243 $187,067 $556,015