Checks Business Continues To Erode At Harland Clarke

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ATLANTA – Harland Clarke Holdings, the nation’s largest check printer, said yesterday its core checks business continued to decline in the second quarter, as consolidated revenues declined almost 1% to $423.3 million.

Net income for the second quarter also was flat: $28 million, compared to $27.7 million for the same period last year.

Revenues for the company’s core Harland Clarke check printing segment were almost flat at $307.3 million, held up the company’s acquisition of SubscriberMail and Protocol IMS, even as volumes for checks and related products continued their decline.

For the first six months of the fiscal year revenues decreased by 1.4% to $853.3 million, primarily due to volume declines at the check printing and Scantron units. Net income for the first six months declined 20% to $60.2 million, compared to the first half last year. The decrease in first half net was mainly due to the company’s buying back $114.7 million of the debt it incurred in the 2005 and 2007 buyouts of Clarke American and John H. Harland Co. check printers on which the company booked a $61.5 million gain for 2009, which was absent from the 2010 financials.

Harland Clarke is now a wholly owned subsidiary of M&F Worldwide, a holding company controlled by financier Ronald O. Perelman.

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