Deluxe Corp. (NYSE:DLX) Q1 2018 Earnings Conference Call - Preliminary Transcript
Apr 26, 2018 • 11:00 am ET
Good day ladies and gentlemen, and welcome to the Deluxe Corporation First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions)
As a reminder, this conference call is being recorded. I would now like to turn the conference over to Mr. Ed Merritt, Treasurer and Vice President of Investor Relations. Sir, you may begin.
Thank you, Takia, and welcome everyone to Deluxe Corporation's first quarter 2018 earnings call. I'm Ed Merritt, Deluxe's Treasurer and Vice President of Investor Relations. Joining me on today's call is Lee Schram, our Chief Executive Officer; and Keith Bush, our Chief Financial Officer. At the end of today's prepared remarks, Lee, Keith and I will take questions.
I would like to remind you that comments made today regarding financial estimates, projections and management's intentions and expectations regarding the company's future performance are forward-looking in nature as defined in the Private Securities Litigation Reform Act of 1995. As such, these comments are subject to risks and uncertainties, which could cause actual results to differ materially from those projected. Additional information about various factors that could cause actual results to differ from projections are contained in the press release that we issued this morning, as well as the company's Form 10-K for the year ended December 31, 2017.
Portions of the financial and statistical information that will be reviewed during this call are addressed in more detail in today's press release, which is posted on our Investor Relations website at deluxe.com/investor. This information was also furnished to the SEC on Form 8-K filed by the company this morning. Any references to non-GAAP financial measures are reconciled to the comparable GAAP financial measures in the press release or as part of our presentation during this call.
Now, I'll turn the call over to Lee.
Thank you, Ed, and good morning, everyone. Deluxe delivered a very strong quarter to start the year. We reported revenue and adjusted earnings per share above the high end of our outlook. Overall, revenue grew 1% from last year driven by small business services growth of 3% with Financial Services flat and Direct Checks declining 10%. On an organic basis revenue declined less than 1% and was in-line with our expectations. Marketing solutions and other services revenues grew more than 12% over the prior year and represented over 39% of total first quarter revenue.
Adjusted diluted earnings per share grew over 11% from the prior year. We generated strong operating cash flow of $81 million and were drawn about $741 million on our credit facility at the end of the quarter. We renewed our credit facility for another five years and repurchased $20 million in common shares in the quarter. We continued our brand awareness campaign to help better position our products and services offerings and drive future revenue growth. We also advanced process improvements and delivered on our cost-reduction commitment for