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DELUXE REPORTS THIRD QUARTER SALES AND EARNINGS

 ST. PAUL, Minn., Oct. 25 /PRNewswire/ -- Deluxe Corporation (NYSE: DLX) reports that sales for the third quarter were $371,973,873, compared to $372,593,412 last year, while net earnings were $36,995,879 or $.45 per share, down 26.8 percent compared to $50,533,118 or $.60 per share a year ago.
 Sales for the first nine months of 1993 reached $1,140,589,583, up 1.7 percent from $1,121,803,473 a year ago. Net earnings for the period were $91,033,512 or $1.10 per share, down 38.1 percent compared to $147,056,493, or $1.75 per share a year ago. 1993 nine-month results include a $60,000,000 restructuring charge taken in the second quarter.
 The company had an average of 82,568,717 shares outstanding for the quarter and 83,061,450 shares outstanding for the nine-month period with par value of $1.00 per share.
 Chairman and Chief Executive Officer Harold V. Haverty said that Deluxe's restructuring is proceeding as planned. "We are in the midst of a market transition that has required us to restructure our check printing operations.
 At the same time, we are positioning the company to pursue a number of promising opportunities," Haverty said. "Price discounting in the financial institution check market, combined with the rapid growth of the direct marketing channel for checks, is transforming the traditional check market. Although Deluxe will remain profitable through the transition, sales and earnings have been negatively affected in the short-term."
 During the quarter, Deluxe completed its acquisitions of PaperDirect, Inc. and U.K.-based Stockforms Ltd. The company also indicated that more than 30 of its printing facilities were now using the solvent -- and VOC -- free printing system invented by Deluxe and announced publicly in April. Deluxe is on schedule to have the system in place in all its facilities by the end of the year. The company is manufacturing its own 100 percent vegetable oil lithographic inks that can be cleaned from the press with a water solution. Deluxe has applied for patents and plans to market the technology.
 Deluxe Corporation is an industry leader in providing products and services to the financial payment systems industry. The company is the nation's largest check printer and also provides electronic funds transfer (EFT) processing services and software, debit and credit card services, and account verification services to financial institutions. The company also provides check authorization services to retailers. Deluxe's Business Systems Division produces a variety of computer and business forms and related products for small businesses and professional practices; and also tax forms and electronic tax filing services to tax preparations professionals. The company's Consumer Specialty Products Division markets greeting cards, gift wrap, stationery and a variety of related products to households.
 DELUXE CORPORATION
 CONDENSED STATEMENTS OF INCOME
 (Dollars in millions except per share)
 (Unaudited)
 Quarter Ended
 9/30/93 9/30/92
 Sales $372.0 $372.6
 Cost of goods sold 173.4 168.2
 Gross profit 198.6 204.4
 Selling/general & administrative 116.1 103.2
 Employee sharing 18.3 20.6
 Non-operating income (0.1) (0.9)
 Pretax income 64.3 81.5
 Income tax 27.3 31.0
 Net income $37.0 $50.5
 Earnings per share $.45 $.60
 Nine Months Ended
 9/30/93 9/30/92
 Sales $1,140.6 $1,121.8
 Cost of goods sold 528.2 512.8
 Gross profit 612.4 609.0
 Selling/general & administrative 342.6 309.8
 Employee sharing 62.0 63.1
 Restructuring charge 60.0 --
 Non-operating income (3.2) (3.0)
 Pretax income 151.0 239.1
 Income tax 60.0 92.0
 Net income $91.0 $147.1
 Earnings per share $1.10 $1.75
 DELUXE CORPORATION
 CONDENSED BALANCE SHEET (MILLIONS)
 Unaudited
 9/30/93 12/31/92
 ASSETS
 Current assets $498.8 $611.3
 Property, plant & equipment - net 407.6 389.0
 Other investments 34.0 20.9
 Intangibles - net 281.5 178.4
 Total assets $1,221.9 $1,199.6
 LIABILITIES & EQUITY
 Current liabilities $290.6 $224.4
 Long-term debt 109.1 115.5
 Deferred credits 42.2 29.9
 Shareholders' equity 780.0 829.8
 Total liabilities & equity $1,221.9 $1,199.6
 SHARES OUTSTANDING 82.6 83.8
 -0- 10/25/93
 /CONTACT: Stuart Alexander, vice president, corporate public relations, 612-483-7358; or Charles M. Osborne, senior vice president and chief financial officer, 612-483-7355, both of Deluxe/
 (DLX)


CO: Deluxe Corporation ST: Minnesota IN: PUB SU: ERN

DB-CP -- MN005 -- 6270 10/25/93 11:28 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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