Deluxe Corp. Q3 Profit Down; Updates 2014 Outlook

(RTTNews) - Deluxe Corp. (DLX) reported that its net income for the third quarter ended September 30, 2014 declined to $44.4 million from $46.9 million in the same quarter last year. Earnings per share were $0.88 down from $0.92 in the previous year.

Adjusted earnings per share grew to $1.03 from $0.96 last year.

Total revenue for the quarter rose to $413.2 million from $398.1 million last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.00 per share and revenues of $410.70 million for the quarter. Analysts' estimates typically exclude special items.

On October 22, 2014, Deluxe Corp. acquired Wausau Financial Systems in an all cash transaction for $90 million, net of cash acquired. The purchase included specific tax attributes which are expected to generate approximately $4 million of incremental cash tax savings.

The acquisition was financed through a draw on the Company's existing credit facility and is expected to add approximately $12 million of revenue to fourth quarter 2014 results and be dilutive to EPS by approximately $0.01 per share over the same period.

In 2015, Wausau Financial Systems is expected to generate approximately $80 million of revenue and be dilutive to EPS by approximately $0.04 per share on a full year basis, turning slightly accretive to earnings in the fourth quarter of 2015.

Looking ahead for the fourth quarter 2014, the company expects earnings per share to be in the range of $1.05 - $1.11, adjusted earnings per share of $1.06 - $1.12, and revenue of$432 million - $440 million. Analysts expect the company to report earnings of $1.09 per share and revenues of $428.20 million for the fourth-quarter.

For fiscal 2014, the company now expects earnings per share to be between $3.86 and $3.92, adjusted earnings per share of $4.08 to $4.14, and revenue of $1.657 billion to $1.665 billion. Wall Street currently is looking for fiscal year 2014 earnings of $4.08 per share on annual revenues of $1.65 billion.

Previously, the company projected earnings per share to be in the range of $3.96 - $4.06, adjusted earnings per share of $4.04 to $4.14, and revenue of $1.635 billion - $1.655 billion for fiscal 2014.

For fiscal 2015, the company anticipates GAAP earnings per share to increase about 5% to 8%, Revenue to increase about 5% to 7%. Analysts expect the company to report earnings of $4.29 per share and revenues of $1.71 billion for fiscal 2015.