Deluxe appoints banking veteran Hugh Cummins to board

Published 28/01/2025, 13:06

MINNEAPOLIS - Deluxe Corporation (NYSE: NYSE:DLX), a company specializing in payment and data services, has announced the appointment of Hugh S. "Beau" Cummins (NYSE:CMI) III to its Board of Directors, effective February 21, 2025. Cummins brings over three decades of experience in the banking industry to the Deluxe team. According to InvestingPro data, Deluxe currently maintains impressive gross profit margins of 54.1% and has demonstrated strong financial health with an EBITDA of $407.86 million in the last twelve months.

Cummins' previous role as Vice Chair and Chief Operating Officer of Truist Financial (NYSE:TFC) Corporation involved oversight of various critical business areas, including operational services, enterprise transformation, and payments. His tenure at Truist was marked by his contributions to the successful merger of SunTrust and BB&T, which has been highlighted by Deluxe's Board Chair, Cheryl Mayberry McKissack.

Barry McCarthy, President and CEO of Deluxe, expressed his enthusiasm about Cummins joining the board, citing his significant influence on Truist's culture and strategy. Cummins' expertise in leading teams and driving operational excellence is expected to be beneficial for Deluxe as it advances its strategic position in the payments and data sector.

In addition to his new role at Deluxe, Cummins serves on the board of the Atrium Health Foundation and has held positions on the boards of Truist Insurance Holdings and academic advisory councils at Miami University and Vanderbilt University. He holds a bachelor's degree in business administration and an MBA from the University of Michigan.

The announcement coincides with the news that William C. Cobb and Martyn R. Redgrave will not seek re-election at Deluxe's 2025 Annual Meeting of Shareholders, which was disclosed on January 22, 2025.

Deluxe, with a history spanning over a century, provides payment and data solutions to support small businesses, financial institutions, and major consumer brands, processing over $2 trillion in annual payment volume. The company emphasizes its role as a reliable business partner across various stages of business growth. Notable among its achievements is a 54-year streak of consecutive dividend payments, with a current dividend yield of 5.27%. InvestingPro analysis suggests the stock is currently undervalued, with multiple additional insights available through their comprehensive Pro Research Report, which provides deep-dive analysis of over 1,400 US stocks.

This appointment is based on a press release statement from Deluxe Corporation. With a market capitalization of $1.01 billion and trading at a PEG ratio of 0.22, Deluxe shows promising valuation metrics. Investors seeking detailed analysis can access comprehensive financial metrics, Fair Value calculations, and expert insights through InvestingPro's extensive research platform.

In other recent news, Deluxe Corporation has upsized its senior secured notes offering from $400 million to $450 million. The notes, bearing an interest rate of 8.125% per annum, are due in 2029 and are part of a larger strategy to refinance existing credit facilities. This includes a term A loan facility and a revolving credit facility, both maturing in 2029. The funds will also cover transaction fees and expenses.

The offering is contingent upon the successful closing of the credit facilities amendment and restatement. Deluxe also reported its third-quarter earnings for 2024 during a call led by Vice President of Strategy and Investor Relations Brian Anderson, President and CEO Barry McCarthy, and CFO Chip Zint. The team discussed non-GAAP financial measures and future performance metrics, acknowledging that actual results may vary due to certain factors.

These recent developments highlight Deluxe's strategic planning and commitment to transparency. However, it should be noted that the notes cannot be offered or sold within the United States without registration or an applicable exemption from these requirements.

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