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Business segment information | 6 Months Ended
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Jun. 30, 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 and hosted solutions, including digital engagement, financial institution profitability reporting and business incorporation services. Through June 2023, this segment also included web hosting and logo design services. We completed the sale of these businesses in June 2023. Further information regarding the 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. Until the businesses were sold, Data Solutions also had operations in portions of Europe and partners in Central and South America through June 2023 and had operations in Australia through May 2022. 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 and six months ended June 30, 2023 and 2022 was as follows:
|  | Quarter Ended June 30, |  | Six Months Ended June 30,
(in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Payments: |  |  |  |  |  |  |  |
Revenue |  | $ | 174,372 |  |  | $ | 171,154 |  |  | $ | 346,355 |  |  | $ | 337,362 |
Adjusted EBITDA |  | 36,318 |  |  | 34,986 |  |  | 72,873 |  |  | 71,421 |
Data Solutions: |  |  |  |  |  |  |  |
Revenue |  | 72,090 |  |  | 68,587 |  |  | 130,683 |  |  | 138,084 |
Adjusted EBITDA |  | 17,741 |  |  | 17,509 |  |  | 33,058 |  |  | 34,836 |
Promotional Solutions: |  |  |  |  |  |  |  |
Revenue |  | 138,800 |  |  | 139,276 |  |  | 274,942 |  |  | 272,519 |
Adjusted EBITDA |  | 21,239 |  |  | 14,596 |  |  | 40,049 |  |  | 31,540 |
Checks: |  |  |  |  |  |  |  |
Revenue |  | 186,424 |  |  | 183,936 |  |  | 365,071 |  |  | 371,003 |
Adjusted EBITDA |  | 83,585 |  |  | 82,564 |  |  | 160,064 |  |  | 165,360 |
Total segment: |  |  |  |  |  |  |  |
Revenue |  | $ | 571,686 |  |  | $ | 562,953 |  |  | $ | 1,117,051 |  |  | $ | 1,118,968 |
Adjusted EBITDA |  | 158,883 |  |  | 149,655 |  |  | 306,044 |  |  | 303,157 |
The following table presents a reconciliation of total segment adjusted EBITDA to consolidated income before income taxes:
|  | Quarter Ended June 30, |  | Six Months Ended June 30,
(in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Total segment adjusted EBITDA |  | $ | 158,883 |  |  | $ | 149,655 |  |  | $ | 306,044 |  |  | $ | 303,157 |
Corporate operations |  | (50,511) |  |  | (47,918) |  |  | (97,236) |  |  | (101,801) |
Depreciation and amortization expense |  | (42,607) |  |  | (45,047) |  |  | (86,128) |  |  | (86,644) |
Interest expense |  | (31,932) |  |  | (21,349) |  |  | (61,948) |  |  | (41,672) |
Net income attributable to non-controlling interest |  | 26 |  |  | 35 |  |  | 54 |  |  | 71 |
Restructuring and integration costs |  | (27,477) |  |  | (15,208) |  |  | (41,571) |  |  | (31,511) |
Share-based compensation expense |  | (5,484) |  |  | (4,896) |  |  | (11,350) |  |  | (13,038) |
Acquisition transaction costs |  | — |  |  | (12) |  |  | — |  |  | (61) |
Certain legal-related benefit (expense) |  | 183 |  |  | (162) |  |  | (245) |  |  | (845) |
Gain on sale of businesses and facility |  | 21,942 |  |  | 17,527 |  |  | 21,942 |  |  | 17,527 |
Income before income taxes |  | $ | 23,023 |  |  | $ | 32,625 |  |  | $ | 29,562 |  |  | $ | 45,183 |
The following tables present revenue disaggregated by our product and service offerings:
|  | Quarter Ended June 30, 2023
(in thousands) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Checks |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 186,424 |  |  | $ | 186,424 |
Merchant services and other payment solutions |  | 113,206 |  |  | — |  |  | — |  |  | — |  |  | 113,206 |
Marketing and promotional solutions |  | — |  |  | — |  |  | 72,037 |  |  | — |  |  | 72,037 |
Forms and other products |  | — |  |  | — |  |  | 66,763 |  |  | — |  |  | 66,763 |
Treasury management solutions |  | 61,166 |  |  | — |  |  | — |  |  | — |  |  | 61,166 |
Data-driven marketing solutions |  | — |  |  | 54,503 |  |  | — |  |  | — |  |  | 54,503 |
Web and hosted solutions |  | — |  |  | 17,587 |  |  | — |  |  | — |  |  | 17,587 |
Total revenue |  | $ | 174,372 |  |  | $ | 72,090 |  |  | $ | 138,800 |  |  | $ | 186,424 |  |  | $ | 571,686 |
|  | Quarter Ended June 30, 2022
(in thousands) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Checks |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 183,936 |  |  | $ | 183,936 |
Merchant services and other payment solutions |  | 111,619 |  |  | — |  |  | — |  |  | — |  |  | 111,619 |
Marketing and promotional solutions |  | — |  |  | — |  |  | 69,872 |  |  | — |  |  | 69,872 |
Forms and other products |  | — |  |  | — |  |  | 69,404 |  |  | — |  |  | 69,404 |
Treasury management solutions |  | 59,535 |  |  | — |  |  | — |  |  | — |  |  | 59,535 |
Data-driven marketing solutions |  | — |  |  | 45,470 |  |  | — |  |  | — |  |  | 45,470 |
Web and hosted solutions |  | — |  |  | 23,117 |  |  | — |  |  | — |  |  | 23,117 |
Total revenue |  | $ | 171,154 |  |  | $ | 68,587 |  |  | $ | 139,276 |  |  | $ | 183,936 |  |  | $ | 562,953 |
|  | Six Months Ended June 30, 2023
(in thousands) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Checks |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 365,071 |  |  | $ | 365,071 |
Merchant services and other payment solutions |  | 224,715 |  |  | — |  |  | — |  |  | — |  |  | 224,715 |
Marketing and promotional solutions |  | — |  |  | — |  |  | 142,689 |  |  | — |  |  | 142,689 |
Forms and other products |  | — |  |  | — |  |  | 132,253 |  |  | — |  |  | 132,253 |
Treasury management solutions |  | 121,640 |  |  | — |  |  | — |  |  | — |  |  | 121,640 |
Data-driven marketing solutions |  | — |  |  | 93,785 |  |  | — |  |  | — |  |  | 93,785 |
Web and hosted solutions |  | — |  |  | 36,898 |  |  | — |  |  | — |  |  | 36,898 |
Total revenue |  | $ | 346,355 |  |  | $ | 130,683 |  |  | $ | 274,942 |  |  | $ | 365,071 |  |  | $ | 1,117,051 |
|  | Six Months Ended June 30, 2022
(in thousands) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
Checks |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 371,003 |  |  | $ | 371,003 |
Merchant services and other payment solutions |  | 219,889 |  |  | — |  |  | — |  |  | — |  |  | 219,889 |
Marketing and promotional solutions |  | — |  |  | — |  |  | 132,799 |  |  | — |  |  | 132,799 |
Forms and other products |  | — |  |  | — |  |  | 139,720 |  |  | — |  |  | 139,720 |
Treasury management solutions |  | 117,473 |  |  | — |  |  | — |  |  | — |  |  | 117,473 |
Data-driven marketing solutions |  | — |  |  | 87,313 |  |  | — |  |  | — |  |  | 87,313 |
Web and hosted solutions |  | — |  |  | 50,771 |  |  | — |  |  | — |  |  | 50,771 |
Total revenue |  | $ | 337,362 |  |  | $ | 138,084 |  |  | $ | 272,519 |  |  | $ | 371,003 |  |  | $ | 1,118,968 |
The following tables present revenue disaggregated by geography, based on where items are shipped from or where services are performed:
|  | Quarter Ended June 30, 2023
(in thousands) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
United States |  | $ | 162,422 |  |  | $ | 69,211 |  |  | $ | 132,175 |  |  | $ | 179,692 |  |  | $ | 543,500 |
Foreign, primarily Canada |  | 11,950 |  |  | 2,879 |  |  | 6,625 |  |  | 6,732 |  |  | 28,186 |
Total revenue |  | $ | 174,372 |  |  | $ | 72,090 |  |  | $ | 138,800 |  |  | $ | 186,424 |  |  | $ | 571,686 |
|  | Quarter Ended June 30, 2022
(in thousands) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
United States |  | $ | 159,939 |  |  | $ | 63,758 |  |  | $ | 132,886 |  |  | $ | 176,692 |  |  | $ | 533,275 |
Foreign, primarily Canada and Australia |  | 11,215 |  |  | 4,829 |  |  | 6,390 |  |  | 7,244 |  |  | 29,678 |
Total revenue |  | $ | 171,154 |  |  | $ | 68,587 |  |  | $ | 139,276 |  |  | $ | 183,936 |  |  | $ | 562,953 |
|  | Six Months Ended June 30, 2023
(in thousands) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
United States |  | $ | 321,886 |  |  | $ | 124,956 |  |  | $ | 262,671 |  |  | $ | 351,539 |  |  | $ | 1,061,052 |
Foreign, primarily Canada |  | 24,469 |  |  | 5,727 |  |  | 12,271 |  |  | 13,532 |  |  | 55,999 |
Total revenue |  | $ | 346,355 |  |  | $ | 130,683 |  |  | $ | 274,942 |  |  | $ | 365,071 |  |  | $ | 1,117,051 |
|  | Six Months Ended June 30, 2022
(in thousands) |  | Payments |  | Data Solutions |  | Promotional Solutions |  | Checks |  | Consolidated
United States |  | $ | 316,207 |  |  | $ | 124,382 |  |  | $ | 260,128 |  |  | $ | 355,780 |  |  | $ | 1,056,497 |
Foreign, primarily Canada and Australia |  | 21,155 |  |  | 13,702 |  |  | 12,391 |  |  | 15,223 |  |  | 62,471 |
Total revenue |  | $ | 337,362 |  |  | $ | 138,084 |  |  | $ | 272,519 |  |  | $ | 371,003 |  |  | $ | 1,118,968 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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