07.24.15
Deluxe Corporation announced its financial results for the second quarter ended June 30, 2015. Both revenue and diluted EPS exceeded the high end of the range in the prior outlook driven by strong operating results in all three segments and earlier than expected cost savings.
“Deluxe delivered an outstanding second quarter, beating both our revenue and earnings outlook,” said Lee Schram, CEO of Deluxe. “We continue to execute our transformation strategy and are pleased with the growth we see in our marketing solutions and other services product categories. We believe we have the right strategy in place to continue to grow our business and as a result of our first half performance, have raised our full year earnings and operating cash flow outlook.”
Revenue increased 7.5% year-over-year, to $435.9 million, primarily due to the Financial Services segment which grew 19.1% and included the results of Wausau Financial Systems, which was acquired in October 2014. Additionally, the Small Business Services segment grew 5.5%. Revenue from marketing solutions and other services increased 31.0% year-over-year and accounted for 29.0% of consolidated revenue in the quarter.
Net income was $56.1 million. Gross margin was 64.2% of revenue, up from 64.0% in the second quarter of 2014. Operating income increased 4.6% year-over-year and includes restructuring and transaction-related costs in both periods.
“Deluxe delivered an outstanding second quarter, beating both our revenue and earnings outlook,” said Lee Schram, CEO of Deluxe. “We continue to execute our transformation strategy and are pleased with the growth we see in our marketing solutions and other services product categories. We believe we have the right strategy in place to continue to grow our business and as a result of our first half performance, have raised our full year earnings and operating cash flow outlook.”
Revenue increased 7.5% year-over-year, to $435.9 million, primarily due to the Financial Services segment which grew 19.1% and included the results of Wausau Financial Systems, which was acquired in October 2014. Additionally, the Small Business Services segment grew 5.5%. Revenue from marketing solutions and other services increased 31.0% year-over-year and accounted for 29.0% of consolidated revenue in the quarter.
Net income was $56.1 million. Gross margin was 64.2% of revenue, up from 64.0% in the second quarter of 2014. Operating income increased 4.6% year-over-year and includes restructuring and transaction-related costs in both periods.