Business segment information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Business segment information

We operate 4 reportable segments, generally organized by product type, as follows:

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

•Cloud Solutions – This segment includes web hosting and design services, data-driven marketing solutions and hosted solutions, including digital engagement, logo design, financial institution profitability reporting and business incorporation services.

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

•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 2021 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, Cloud Solutions has operations in Australia and portions of Europe, as well as partners in Central and South America.

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, integration and other costs; share-based compensation expense; acquisition transaction costs; certain legal-related expense; and gains or losses on sales of businesses and customer lists. 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, 2022 and 2021 was as follows:

	Quarter Ended March 31,
(in thousands)	2022		2021
Payments:
Revenue	$	166,208	$	79,438
Adjusted EBITDA	36,435		18,329
Cloud Solutions:
Revenue	69,497		62,220
Adjusted EBITDA	17,326		17,209
Promotional Solutions:
Revenue	133,243		124,507
Adjusted EBITDA	16,945		17,714
Checks:
Revenue	187,067		175,099
Adjusted EBITDA	82,797		83,534
Total segment:
Revenue	$	556,015	$	441,264
Adjusted EBITDA	153,503		136,786

The following table presents a reconciliation of total segment adjusted EBITDA to consolidated income before income taxes:

	Quarter Ended March 31,
(in thousands)	2022		2021
Total segment adjusted EBITDA	$	153,503	$	136,786
Corporate operations	(53,883)		(46,281)
Depreciation and amortization expense	(41,597)		(27,780)
Interest expense	(20,324)		(4,524)
Net income attributable to non-controlling interest	36		33
Restructuring, integration and other costs	(16,303)		(15,212)
Share-based compensation expense	(8,142)		(6,742)
Acquisition transaction costs	(49)		(2,765)
Certain legal-related expense	(683)		—
Income before income taxes	$	12,558	$	33,515

The following tables present revenue disaggregated by our product and service offerings:

	Quarter Ended March 31, 2022
(in thousands)	Payments		Cloud Solutions		Promotional Solutions		Checks		Consolidated
Checks	$	—	$	—	$	—	$	187,067	$	187,067
Merchant services and other payment solutions	108,270		—		—		—		108,270
Forms and other products	—		—		70,316		—		70,316
Marketing and promotional solutions	—		—		62,927		—		62,927
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

	Quarter Ended March 31, 2021
(in thousands)	Payments		Cloud Solutions		Promotional Solutions		Checks		Consolidated
Checks	$	—	$	—	$	—	$	175,099	$	175,099
Merchant services and other payment solutions	20,302		—		—		—		20,302
Forms and other products	—		—		71,781		—		71,781
Marketing and promotional solutions	—		—		52,726		—		52,726
Treasury management solutions	59,136		—		—		—		59,136
Data-driven marketing solutions	—		33,646		—		—		33,646
Web and hosted solutions	—		28,574		—		—		28,574
Total revenue	$	79,438	$	62,220	$	124,507	$	175,099	$	441,264

The following tables present revenue disaggregated by geography, based on where items are shipped from or where services are performed:

	Quarter Ended March 31, 2022
(in thousands)	Payments		Cloud Solutions		Promotional Solutions		Checks		Consolidated
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

	Quarter Ended March 31, 2021
(in thousands)	Payments		Cloud Solutions		Promotional Solutions		Checks		Consolidated
United States	$	68,484	$	53,512	$	119,148	$	169,014	$	410,158
Foreign, primarily Canada and Australia	10,954		8,708		5,359		6,085		31,106
Total revenue	$	79,438	$	62,220	$	124,507	$	175,099	$	441,264