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Deluxe Corp. (DLX) filed Quarterly Report for the period ended 2011-09-30.
Deluxe Corp. has a market cap of $1.23 billion; its shares were traded at around $24.05 with a P/E ratio of 7.86 and P/S ratio of 0.88. The dividend yield of Deluxe Corp. stocks is 4.16%.
This is the annual revenues and earnings per share of DLX over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DLX.
Highlight of Business Operations:
We anticipate that consolidated revenue from continuing operations will be between $1.410 billion and $1.420 billion for 2011, as compared to $1.402 billion for 2010, which included revenue of $24.6 million from a contract settlement executed in the third quarter of 2010. In Small Business Services, we expect the percentage increase in revenue to be in the mid to upper single digits as compared to 2010, as the benefits of price increases, our e-commerce investments and growth in marketing and other services offerings, including revenue from the PsPrint acquisition, are expected to more than offset volume declines in core business products. In Financial Services, we expect the percentage decrease in revenue to be in the low double digits or high single digits, excluding the contract settlement in the third quarter of 2010, driven by check order declines of approximately seven to eight percent compared to 2010 given the increases in electronic payments. We expect the related revenue pressure in Financial Services to be partially offset by increasing contributions from non-check revenue, including those from the Banker s Dashboard acquisition. We expect a new large financial institution client, which executed a contract with us in September 2011, will begin contributing volume early in 2012. In Direct Checks, we expect the percentage increase in revenue to be in the mid-single digits compared to 2010, driven by a full year of revenue from the Custom Direct acquisition, partially offset by check usage declines.We anticipate that net cash provided by operating activities will be between $224 million and $230 million in 2011, compared to $212.6 million in 2010, driven by higher cash generated by earnings and slightly lower contract acquisition payments. We estimate that capital spending will be approximately $35 million in 2011 as we continue to invest in revenue growth initiatives and order fulfillment and information technology infrastructure.
We believe our credit facility, along with cash generated by operating activities, will be sufficient to support our operations, including capital expenditures, small-to-medium-sized acquisitions, required debt service and dividend payments, for the next 12 months. We are focused on a disciplined approach to capital deployment that focuses on our need to continue investing in initiatives to drive revenue growth, including small-to-medium-sized acquisitions. We also anticipate that our board of directors will maintain our current dividend level. However, dividends are approved by the board of directors on a quarterly basis, and thus are subject to change. To the extent we have cash flow in excess of these priorities, our focus during the remainder of 2011 will be on further reducing our debt. During the first nine months of 2011, we retired $195.5 million of long-term notes due in 2012 and $10.0 million of long-term notes due in 2014, realizing a pre-tax loss of $8.3 million, including $1.3 million of interest expense due to the accelerated recognition of a related derivative loss and the settlement of interest rate swaps. We also completed the issuance of $200.0 million of 7.0% notes due in 2019, collecting net proceeds of $196.5 million.
Revenue increased slightly for the first nine months of 2011, as compared to the first nine months of 2010, due to incremental revenue of $24.1 million from the acquisition of Custom Direct, price increases, revenue generated by the businesses acquired during 2011, growth in the Small Business Services distributor channel, and a favorable currency exchange rate impact of $3.2 million. These revenue increases were partially offset by revenue of $24.6 million from a contract settlement executed during the third quarter of 2010 and the recognition of deferred revenue in 2010 from a Financial Services contract settlement executed in the fourth quarter of 2009, as well as lower order volume for our personal check businesses. The $24.6 million contract settlement revenue in 2010 accounted for a revenue decrease of 2.4 percentage points for the first nine months of 2011. The recognition of deferred revenue in 2010 accounted for a revenue decrease of 1.4 percentage points for the first nine months of 2011.
We anticipate that net cash provided by operating activities will be between $224 million and $230 million in 2011, compared to $212.6 million in 2010, driven by higher cash generated by earnings and slightly lower contract acquisition payments. We anticipate that cash generated by operating activities in 2011 will be utilized for the Banker s Dashboard and PsPrint acquisition payments totaling $80 million, dividend payments of approximately $50 million, capital expenditures of approximately $35 million, share repurchases of $24 million and, possibly, additional small-to-medium-sized acquisitions and debt reduction. We intend to focus our capital spending on key revenue growth initiatives and investments in order fulfillment and information technology infrastructure. We had $158.4 million available for borrowing under our credit facility as of September 30, 2011. We believe our credit facility, along with cash generated by operating activities, will be sufficient to support our operations for the next 12 months, including capital expenditures, possible small-to-medium-sized acquisitions, required debt service and dividend payments.
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