Deluxe Corp. reported strong first-quarter financial results as it heads into a year of centennial celebrations.
The Shoreview-based provider of small business and financial services reported revenue of $433.6 million, up 6.5 percent from the first quarter of last year.
The company's adjusted earnings per share was $1.04, up 6.1 percent from the 98 cents it recorded in first quarter last year. Both revenue and adjusted earnings per share were at the high end of prior guidance and met analysts' expectations. The company had previously said it expected first-quarter revenue in the range of $426 million to $434 million and adjusted earnings per share in the range of 99 cents to $1.04 per share.
"With this strong start to the year, we continue to expect to deliver our sixth consecutive year of profitable revenue growth and our seventh consecutive year of cash flow from operations growth," said Lee Schram, CEO of Deluxe.
Net income for the first quarter was $45.9 million and earnings per share was 91 cents, down 3 percent and 2.2 percent respectively from the first quarter last year. The EPS figure includes a 12 cents per share charge related to the early redemption of the company's $200 million in long-term debt announced in March.
In the first-quarter revenue from the small-business services unit was $277 million, up 3.9 percent over the same period last year, and operating income for the segment rose 14.1 percent to $49.6 million.
Revenue from Deluxe's financial services segment was $111.5 million, up 20.5 percent for the quarter. The increase was due to growth in marketing solutions and other services and the company's acquisition of Wausau Financial Systems in October.
Revenue from its direct checks continued to decline. Revenue for the segment was $45.1 million, down 6 percent from last year.
Shares of Deluxe closed at $67.54, down $2.03.
Patrick Kennedy • 612-673-7926
