The check printer Harland Clarke Holdings Corp. reported Friday that revenue almost tripled in the third quarter but merger expenses kept profit growth under 3%.
Revenue rose 178%, to $432.8 million, from a year earlier. Net income increased 2.7%, to $7.5 million.
It was the first full quarter of results since John H. Harland Co. of Atlanta was combined in May with Clarke American Corp. of San Antonio by M&F Worldwide Corp., Ronald Perelman's holding company.
Harland accounted for $263.4 million of the revenue increase.
Administrative expense came to $106.3 million, almost tripling the figure for last year's third quarter.
Harland Clarke said it is focused on improving operating margins by consolidating facilities and reducing duplicated expenses in sales, administration, executive pay, and shared services.
Its main rival in the check printing market, Deluxe Corp. of Shoreview, Minn., reported last month that its earnings rose 3.2% from a year earlier, to $32.2 million, even though revenue fell 2.4%, to $388.6 million. Earnings per share rose 1.6%, to 62 cents.
