We're pleased to have delivered improved third quarter results despite continued pandemic-related economic pressures, including nearly 300 basis point improvement in adjusted EBITDA margin.
We delivered 23.3% adjusted EBITDA margins.
A 290 basis point sequential improvement from last quarter, better improvement than we expected.
We reported revenue of $439 million, improving over 600 basis points sequentially over second quarter with revenue down 11% or $54 million versus last year -- also better improvement than we expected.
We closed nearly 50 of more than 80 sites, representing nearly a 60% reduction in the number of our locations over the last 18 months, including seven additional site closures in Q3.
We continue to outperform our pre-pandemic sales plan, and of course over a thousand deals with multi-year contracts year-to-date, including six of our top-25 targets.
We expanded our relationship with RE/MAX to provide national marketing, branded print and promotional solutions to their 65,000 agents.
Combined with our enterprise efforts, we've signed more than a 175 cross-sell deals totaling $11 million in total contract value.
This continued success gives us confidence that we'll be able to deliver sales-driven revenue growth in the low- to- mid-single digits with adjusted EBITDA margins of 20% or more over the long-term.
Our Payments business continues to perform well and delivered 15.6% revenue growth over prior year.
Most importantly, given the work we've accomplished, the results we've delivered despite the ongoing challenges, I feel good about our relative position in the market and we continue to believe total company adjusted EBITDA margins will remain at our long-term target of 20% or better.
We expanded margins almost 300 basis points, paid our dividend, paid our revolver down to the pre-COVID level, have the lowest net debt in more than two years, and our sales engine is working.
Q3 total revenue declined 11% or $54.1 million to $439.5 million as compared to the same period last year.
This is a sequential improvement of 600 basis points from the Q2 decline rate.
These expense actions improved adjusted EBITDA margins by 290 basis points sequentially to 23.3%.
Some of this improvement will not repeat in Q4, but we do expect margins to remain in our long-term range of greater than 20%.
Gross profit margin for the quarter improved 160 basis points from the prior year with the loss of lower margin revenue in our promotional and cloud segments.
SG&A expense declined $14.4 million due primarily to lower commissions, personnel exits, 401(k) match suspensions and restructuring actions.
Interest expense declined $3.6 million due to lower interest rates on higher borrowing levels compared to last year.
All this together, increased operating income to $44.4 million, net income of $29.4 million, increased from a net loss of $318.5 million in Q3 2019.
Last year's net income included non-cash asset impairment charges for goodwill and certain intangibles totaling $391 million.
Our adjusted EBITDA for the period was $102.5 million, $16.8 million lower than the same period last year.
The adjusted EBITDA margin declined 90 basis points to 23.3% on a year-over-year basis, but sequentially increased by 290 basis points compared to the second quarter.
Payments revenue grew compared to last year by 15.6% to $74.7 million, with Treasury Management revenue leading the growth in the quarter.
Adjusted EBITDA margin decreased to 22.4%, primarily due to increased costs related to last year's large client win.
Cloud Solutions revenue declined 20.3% to $63.8 million from last year.
Adjusted EBITDA margin increased to 25.7% as we benefited from mix shift in cost reductions.
Promotional Solutions revenue declined 20.3% to $124.9 million from last year.
Compared to prior quarter, revenue grew about 6% and adjusted EBITDA margin expanded 260 basis points, as the mix shifted and costs were removed.
Check revenue declined 8.4% from last year to $176.1 million due to the secular decline, combined with the pandemic.
Adjusted EBITDA margin decreased to 48.3% as a result of higher commissions on referrals and technology investments in support of our One Deluxe strategy.
Year-to-date, cash from operating activities was $166.8 million and capital expenditures were $42.7 million.
Free cash flow, defined as cash provided by operating activities, less capital expenditures, was $124.1 million, a decline of $34.2 million.
We ended the quarter with strong liquidity of $413 million and our cash balance was $310.4 million.
In October, we paid down another $140 million of the revolving credit facility, repaying 100% of our COVID-related March draw.
This repayment is not reflected in our reported credit facility balance of $1.04 billion or cash balance at the quarter-end.
In addition, net debt has continued to decrease, and in the quarter at $730 million, the lowest level in more than two years for the second consecutive quarter during a pandemic.
Our year-to-date adjusted EBITDA margin is at 20.2%, within our long-term target range.
However, we do expect to maintain adjusted EBITDA margins within our long-term target of 20% or better.
As further evidence of our strength, our Board approved a regular quarterly dividend of $0.30 per share on all outstanding shares.
We increased margin sequentially, almost 300 basis points.
Our Payments business grew 16% and we're confident we'll be a double-digit grower over the long term.

Summary:
Q3 total revenue declined 11% or $54.1 million to $439.5 million as compared to the same period last year.