Company: DLX
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0000027996-25-000142
Chunk: 38

Company: DELUXE CORP
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 1
Chunk 38
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. This increase is indicative of higher-cost claims that are expected to arise from time to time as part of our self-insurance program.

Total SG&A expense as a percentage of total revenue decreased for the first quarter of 2025 compared to the first quarter of 2024, as the combined effects of price increases and our cost management actions more than offset the increase in medical costs.

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Restructuring and Integration Expense

 Quarter Ended March 31,(in thousands)20252024ChangeRestructuring and integration expense$7,668 $13,804 (44.5%)

We are actively pursuing several initiatives aimed at aligning our business with our growth strategy and enhancing operational efficiency. As we implement these initiatives, the amount of restructuring and integration expense is expected to fluctuate from period to period. Further information regarding these costs can be found in the Restructuring and Integration Expense section.

Gain on Sale of Businesses and Long-Lived Assets

 Quarter Ended March 31,(in thousands)20252024ChangeGain on sale of businesses and long-lived assets$— $8,581 (100.0%)

Income recognized in the first quarter of 2024 related to the exit from our payroll and human resources services business that we substantially completed during 2024. Further information can be found under the caption "Note 6: Divestitures" in the Condensed Notes to Unaudited Consolidated Financial Statements located in Part 1, Item 1 of this report.

Interest Expense

 Quarter Ended March 31,(in thousands)20252024ChangeInterest expense$31,266 $30,809 1.5%Weighted-average debt outstanding1,553,645 1,600,910 (3.0%)Weighted-average interest rate7.6 %7.1 %0.5 pts.

Interest expense for the first quarter of 2025 increased compared to the first quarter of 2024, as the impact of higher interest rates exceeded the decrease in our average debt outstanding. Based on the amount of variable-rate debt outstanding as of March 31, 2025, a one percentage point change in the weighted-average interest rate would result in a $4 million change in interest expense for the remainder of 2025.

Income Tax Provision

 Quarter Ended March 31,(in thousands)20252024ChangeIncome tax provision$5,221 $5,522 (5.5%)Effective income tax rate27.1 %33.