NEW YORK – A year after its acquisition of one of the leading credit union service providers, John H. Harland Co., M&F Worldwide, has broken into the black – while emerging as the world’s leading check printer.
The holding company for Harland Clarke and Harland Financial Solutions, M&F Worldwide on Friday reported a profit of $19.3 million for the second quarter, compared to a loss of $35.2 million for the same period last year, after its $1.7 billion takeover of John H. Harland Co.
The Harland acquisition represents somewhat of a departure for well-known financier Ronald O. Perelman, who has combined the country’s number two check printer, Clarke American, with the number three, Harland. The combination exceeds Deluxe Corp. as the world’s largest printer of checks. In contrast, in the face of the decline in check use, Deluxe has diversified over the past few years into business forms, and more recently into Web hosting.
Perelman, who controls M&F Worldwide through his wholly owned MacAndrews and Forbes Holding Inc., is better known for his takeovers of Revlon Inc. and Marvel Comics, Consolidated Cigar, Coleman Sporting Goods and Sunbeam Products.
M&F Worldwide on Friday reported that last year’s Harland deal boosted revenues by 33% to $484.9 million for the second quarter, and by 72% for the first half of the year to $956.9 million.
As a result, net income for the second quarter was $19.3 million, and for the first six months it was $31.8 million. That compares to losses of $35.2 million and $25.8 million for the comparative periods last year, when the company took a $52 million charge to refinance its debt. The improved financial condition, M&F said Friday, illustrates the company is on track to achieve cost reductions targeted in the combination of the two check printers.
Net revenue for the company’s core check printing business, now known as Harland Clarke, rose 19% to $329 million for the second quarter, primarily as a result of the combination of the two check printing businesses.
Net revenues for the company’s Harland Financial Solutions unit, which provides back office services for credit unions and banks, surged 63% to $73.9 million, also primarily because of the Harland takeover.
The company’s Scantron unit, also acquired in the Harland deal, reported a tripling in second quarter revenues to $54.7 million. Most of that was due to the company’s February acquisition of Data Management LLC from NCS Pearson, which was combined with Scantron.
