SAN ANTONIO – Check printer Harland Clarke, in the process of going private, said a one-time gain helped stem the continued fall in its core checks business, helping it post a $46.6 million net for the third quarter, up 69% from the same quarter last year.
The company reported revenues of $407.7 million for the third quarter, down just less than 1% from last year’s third quarter.
The third quarter net, enabled by a $19.5 million non-cash gain for changes in the fair value of contingent consideration arrangement, helped offset a 2.3%, or $6.7 million decline in the company’s check printing business. Revenues for the company’s Harland Financial Solutions unit also increased by 2.1% during the third quarter to $71.4 million.
Harland Clarke is in the process of being taken private by billionaire investor Ronald Perelman, whose holding company Macandrews and Forbes currently controls a majority of the company’s shares.
For the first three quarters of the year, Harland Clarke, the nation’s biggest check printer by volume, reported a 6.8%, or $61.6 million decline in its core checks business. The decline was primarily due to volume declines, net of client additions and losses, in check and related products that reduced net revenues by $46 million.
Revenues for Harland Financial Solutions increased by 4.5% for the first nine months, to $219.7 million.
