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JOHN H. HARLAND REPORTS RESULTS FOR THIRD QUARTER, NINE MONTHS

 ATLANTA, Ga., Oct. 19 /PRNewswire/ -- John H. Harland Company (NYSE: JH) today reported sales of $129.9 million for the third quarter ended Sept. 30, an increase of 14.0 percent over last year's $114.0 million.
 Net income was $13.3 million or 42 cents per share, vs. $13.7 million or 39 cents per share in 1992. Return on shareholders' equity was 26.0 percent up from 19.8 percent in the same period prior year.
 "Third quarter results are on target with our expectations," said Robert R. Woodson, Harland chairman, president and chief executive officer. "As with most companies, the new federal income tax law has had an impact on Harland. Without the impact of recorded income tax changes, third quarter earnings per share would have been 44 cents, up 12.8 percent." Woodson noted that Scantron had a strong third quarter performance during its peak seasonal period.
 Sales for the nine months ended September 30, were $393.4 million, an 18.7 percent increase from $331.4 million in 1992. Net income was $40.6 million or $1.23 per share, vs. $43.1 million or $1.20 per share last year. Return on shareholders' equity was 24.5 percent up from 20.5 percent in 1992.
 During the quarter, Harland continued its scheduled consolidation of Interchecks and Rocky Mountain Bank Note operations. The company also announced it was forming a subsidiary for the direct marketing of checks, which will become operational during the first half of 1994.
 Harland announced it has received commitments for $100 million of financing; $85 million in senior notes from private lenders and $15 million in the form of a bank term loan. The $85 million private placement will carry a coupon rate of 6.6 percent with a final maturity of December 2008. The $15 million bank loan has a rate of 6.6 percent, and is due December 2003.
 Proceeds, which will be drawn later in 1993, will be used to repay amounts outstanding under short-term lines of credit, to fund additional purchases of company stock under a stock repurchase program and for general corporate purposes.
 "Through our common stock repurchase programs and acquisitions we have redeployed capital into higher yielding alternatives," said Woodson. "With interest rates at historic lows, we felt this was an excellent time to lower our overall cost of capital."
 Atlanta-based Harland is one of the nation's largest check printers and serves the financial community with a variety of related products and services. In addition, Harland is a national participant in the data service industry, serving educational and commercial markets. The company has production facilities for its business units across the United States and in Puerto Rico.
 John H. Harland Company reports for the periods ending September 30, 1993 and 1992 (amounts in thousands, except per share amounts):
 Three Months
 Sept. 30, 1993 Sept. 30, 1992
 Net Sales $129,922 $113,975
 Income Before Income Taxes 22,081 21,350
 Provision For Income Taxes 8,763 7,679
 Net Income 13,318 13,671
 Net Income Per Common Share .42 .39
 Average Number of Shares
 Outstanding 31,688 35,332
 Return on Equity 26.0 pct. 19.8 pct.
 Nine Months
 Sept. 30, 1993 Sept. 30, 1992
 Net Sales $393,405 $331,370
 Income Before Income Taxes 66,123 66,705
 Provision For Income Taxes 25,559 23,635
 Net Income 40,564 43,070
 Net Income Per Common Share 1.23 1.20
 Average Number of Shares
 Outstanding 33,088 36,041
 Return on Equity 24.5 pct. 20.5 pct.
 Financial Highlights (Unaudited)
 For the three month periods ended September 30, 1993 and 1992
 Income Statement (In thousands)
 1993 1992 Pct. Chg
 Sales $129,922 $113,975 14.0
 Cost of Sales 73,030 61,171 19.4 pct.
 Percent of sales 56.2 pct. 53.7 pct.
 Gross Profit 56,892 52,804 7.7 pct.
 Percent of sales 43.8 pct. 46.3 pct.
 Selling/Admin. 29,349 27,609 6.3 pct.
 Percent of sales 22.6 pct. 24.2 pct.
 Amortization of Intangibles 2,172 1,355 60.3 pct.
 Percent of sales 1.7 pct. 1.2 pct.
 Profit Sharing 2,431 2,507 (3.0) pct.
 Percent of sales 1.9 pct. 2.2 pct.
 Operating Income 22,940 21,333 7.5 pct.
 Percent of sales 17.7 pct. 18.7 pct.
 Other Income and (Expense) (859) 17 NM
 Percent of sales (0.7) pct. 0.0 pct.
 Income before Income Taxes 22,081 21,350 3.4 pct.
 Percent of sales 17.0 pct. 18.7 pct.
 Income Taxes 8,763 7,679 14.1 pct.
 Percent of sales 6.7 pct. 6.7 pct.
 Net Income $ 13,318 $ 13,671 (2.6) pct.
 Percent of sales 10.3 pct. 12.0 pct.
 Key Data
 Earnings per Share $ 0.42 $ 0.39 7.7 pct.
 Weighted Average Shares
 O/S (000) 31,688 35,332 (10.3) pct.
 Shares O/S at end of
 period (000) 30,751 34,722 (11.4) pct.
 Return on Equity 26.0 pct. 19.8 pct. 6.2 pct.
 Depreciation and
 Amortization (000) 8,837 $ 7,824 12.9 pct.
 Capital Expenditures
 (Millions of $) $ 6.7 $ 4.2 59.5 pct.
 Productivity (Check
 Printing only) 1,755 1,743 0.7 pct.
 Sales Analysis:
 Units 15.3 pct.
 Price/Mix (1.1) pct.
 Financial Services 14.2 pct.
 Data Services 12.6 pct.
 Consolidated 14.0 pct.
 John H. Harland Company
 Financial Highlights (Unaudited)
 For the nine month periods ended September 30, 1993 and 1992
 Income Statement (In thousands)
 1993 1992 Pct. Chg
 Sales $393,405 $331,370 18.7 pct.
 Cost of Sales 217,771 174,972 24.5 pct.
 Percent of sales 55.4 pct. 52.8 pct.
 Gross Profit 175,634 156,398 12.3 pct.
 Percent of sales 44.6 pct. 47.2 pct.
 Selling/Admin. 94,232 83,500 12.9 pct.
 Percent of sales 24.0 pct. 25.2 pct.
 Amortization of Intangibles 6,503 3,288 97.8 pct.
 Percent of sales 1.7 pct. 1.0 pct.
 Profit Sharing 7,297 7,186 1.5 pct.
 Percent of sales 1.9 pct. 2.2 pct.
 Operating Income 67,602 62,424 8.3 pct.
 Percent of sales 17.2 pct. 18.8 pct.
 Gain on Amer. Testronics/
 Puerto Rico Bonds 3,410
 Percent of sales 1.0 pct.
 Other Income and (Expense) (1,479) 871 NM
 Percent of sales (0.4) pct. 0.3 pct.
 Income before Income Taxes 66,123 66,705 (0.9) pct.
 Percent of sales 16.8 pct. 20.1 pct.
 Income Taxes 25,559 23,635 8.1 pct.
 Percent of sales 6.5 pct. 7.1 pct.
 Net Income $ 40,564 $ 43,070 (5.8) pct.
 Percent of sales 10.3 pct. 13.0 pct.
 Key Data
 Earnings per Share $ 1.23 $ 1.20 2.5 pct.
 Weighted Average Shares
 O/S (000) 33,088 36,041 (8.2) pct.
 Shares O/S at end of
 period (000) 30,751 34,722 (11.4) pct.
 Return on Equity 24.5 pct. 20.5 pct. 4.0 pct.
 Depreciation and
 Amortization (000) $ 26,158 $ 22,708 15.2 pct.
 Capital Expenditures
 (Millions of $) $17.7 $12.9 37.2 pct.
 Productivity (Check
 Printing only) 1,743 1,741 0.1 pct.
 Number of Employees (includes
 temporary employees) 7,448 6,710 11.0 pct.
 Sales Analysis:
 Units 20.3 pct.
 Price/Mix 0.5 pct.
 Financial Services 20.8 pct.
 Data Services 3.5 pct.
 Consolidated 18.7 pct.
 John H. Harland Company
 Financial Highlights (Unaudited)
 Condensed Balance Sheet (In thousands)
 Sept. 30,
 1993 1992
 Cash & Invest. $ 1,729 $ 40,383
 Acct Receivable 67,645 61,703
 Inventory 25,257 27,864
 Prepaid & Other 10,326 7,393
 Total Current 104,957 137,343
 Investments 8,199 7,463
 Goodwill and intangibles 53,591 38,395
 Other 5,245 4,518
 Fixed Assets (Net) 150,729 147,515
 Total Assets $322,721 $335,234
 Current Liabilities $113,656 $ 40,488
 Long-term Liabilities 23,653 25,921
 Stockholders' Equity 185,412 268,825
 Total Liabilities and Equity $322,721 $335,234
 -0- 10/19/93
 /CONTACT: Robert R. Woodson, chairman, president & chief executive officer; or William M. Dollar, vice president, treasurer & chief financial officer, John H. Harland, 404-981-9460/
 (JH)


CO: John H. Harland Company ST: Georgia IN: FIN SU: ERN

BR -- AT006 -- 3858 10/19/93 10:29 EDT
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Date:Oct 19, 1993
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