Deluxe Reports Rising Q3 Financials
Driven By Stronger Operating Results
Deluxe Corporation, parent company of Top 40 distributor Safeguard Business Systems (asi/316203), announced recently that its revenue increased by 3.8% in the third quarter of 2014, reaching $413.2 million. The company said that its positive sales were driven by stronger operating results in each of its business segments.
“Our positive transformation continues as we delivered revenue growth over the prior year,” said Lee Schram, CEO of Deluxe. “Our approach to diversifying and growing top-line revenue, while at the same time aggressively managing our expense structure, continues to deliver strong operating income and cash flow growth.”
While the company doesn’t specifically break out the results of its Safeguard business, it said in its third-quarter financial filing that the division experienced a strong period. Deluxe’s small business services division, which Safeguard is a part of, recorded revenues of $284.6 million in the third quarter, an increase of 7.2% over the same time period last year. The company said the division’s success was “due to growth in marketing solutions and other services, growth in the Safeguard distributor channel and the impact of previous price increases.”
Deluxe also forecast continued growth in both revenues and profit as it closes out 2014 and looks forward to next year. “Looking ahead,” the company wrote in its public filing, “we expect to see revenue, operating cash flow and earnings growth continue in 2014 and 2015.”
Safeguard ranks number 32 on the Counselor Top 40, after it reported 2013 North American ad specialty sales of $43 million in 2013, an increase of 12% over the previous year.