ST. PAUL, Minn. – Check printer Deluxe Corp. yesterday reported a 35% rise in first quarter profits to $44.1 million, as the company’s growing small business segment overcame continued declines in its core checks business.
As a result, first quarter revenues rose 8% to $378 million.
Revenues for the small business segment were up 15% to $229.6 million, driven by growth in marketing solutions and other services, the Safeguard distributor and dealer channels, and checks and forms.
Revenues for the company’s financial services unit, which sells checks to credit unions and banks, rose slightly, almost 3%, to $90.6 million, as the impact of price increases, growth in non-check revenue and revenue from a new financial institution client more than offset the impact of check usage declines.
The company’s direct checks unit, which sells checks directly to consumers, declined by 7% to $57.8 million, primarily driven by lower order volume resulting from the continued decline in check usage.
“We hit a home run this quarter and are off to a fantastic start to the year,” said Lee Schram, president of Deluxe. “Core check products revenue exceeded our expectation and marketing solutions and other services revenue grew 35% and is solidly on track to achieve its projected growth this year.”
