Decline In Checks AffectsDeluxe

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ST. PAUL, Minn. - (08/04/04) -- Deluxe Corp. said the ongoingdrop-off in check usage continues to hurt its performance, withsecond quarter revenue flat at $309 million, and revenue for thefirst half declining 1% to $618 million. Still, the nation'sleading check printer said its acquisition of New England BusinessService Inc. on June 25 helped boost its second quarter earnings by2% to $46 million, or 91 cents a share, from the same period lastyear. The NEBS results were included in Deluxe's results for thelast five days of the second quarter and added $7.7 million toDeluxe's second quarter revenues. Deluxe said revenues from itsfinancial services unit, which sells checks to credit unions andbanks, declined 4% to $167 million; and revenues for direct checks,sold directly to consumers, fell 6% to $71 million. For the firstsix months of the year, Deluxe reported a 1% decline in net incometo $93.6 million. However, earnings per share actually rose 13%, to$1.86, because the company bought back 200,000 shares.

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