DECATUR, Ga. – Harland Clarke Holdings said its acquisition of Data Management earlier this year helped it overcome the continued drop-off in its leading check-printing business, enabling it to post higher third quarter earnings.
Harland said net income for the third quarter almost doubled to $15.5 million, all of which was related to the addition of Data Management.
The check business worldwide has been on a steep decline as electronic payments continue to replace paper transactions. Last month, Deluxe Corp., now the nation’s second largest check printer, also reported a continuing fall in its check printing business.
Net revenues for Harland’s check printing operations, which combines the former Clarke American and John H. Harland check businesses, fell by almost 10% in the third quarter to $322.7 million, mostly due to a decrease in volume.
But net revenues for the company’s Harland Financial Solutions unit rose 8% to $72.8 million; while net revenues for the Scantron operations almost doubled to $58.6 million. Both are former operating subsidiaries of John H. Harland.
Consolidated third quarter revenues for Harland Clarke rose 2% to $376.3 million, while revenues for the first three quarters of the year, pushed by the Data Management deal, surged 36% to $1.1 billion. The increase in revenues helped Harland Clarke break into the black for the first three quarters to the tune of $37.3 million, compared to a loss for the first three quarters last year of $24.9 million.
