Deluxe Reports 7 Percent Revenue Growth in Q3 2012
• Operating income in 2012 was $72.7 million compared to $65.6 million in the third quarter of 2011. Restructuring and transaction-related costs were $2.9 million in 2012 versus $5.1 million in 2011. These costs were primarily attributable to the Company's on-going cost reduction initiatives. Operating income was 19.2 percent of revenue compared to 18.5 percent in the prior year driven primarily by higher revenue per order, continued cost reductions and lower restructuring charges, partially off-set by higher performance based compensation expense, increased delivery rates and material costs, and the OrangeSoda acquisition last quarter.
• Reported diluted EPS increased $0.10 from the prior year driven by improved operating performance and lower restructuring charges in 2012.
Small Business Services
• Revenue was $244.5 million versus $214.4 million in 2011. Revenue was 14.0 percent higher in the quarter driven by growth in marketing solutions and other services revenue and in the Safeguard distributor, dealer and major account channels. Revenue also benefited from price increases and $8.6 million from the OrangeSoda acquisition.
• Operating income in 2012 increased to $39.6 million from $34.6 million in 2011.
• Revenue was $82.8 million compared to $85.2 million in 2011. The impact of check usage declines exceeded the benefits of price increases, revenue from a new financial institution client, and growth in non-check revenue. Secular declines for consumer checks were slightly less than 5 percent in the quarter.
• Operating income in 2012 increased to $17.7 million from $14.1 million in 2011.
• Revenue was $51.0 million compared to $55.5 million in 2011, primarily driven by lower order volume resulting from the continued decline in check usage.
• Operating income in 2012 decreased to $15.4 million from $16.9 million in 2011.