Deluxe Reports Improvement in Q1 Results, Outlook for Full Year

Cash provided by operating activities for 2010 totaled $52.7 million, a decrease of $10.3 million compared to 2009. The decrease was due primarily to higher performance-based compensation payments partially offset by lower contract acquisition payments and improved earnings.

Business Outlook

The company stated that for the second quarter of 2010, revenue is expected to be between $335 and $345 million, and diluted EPS is expected to be between $0.55 and $0.62. Adjusted diluted EPS is expected to be between $0.58 and $0.65 and excludes an estimated $0.03 per share for transaction- related costs in connection with the April acquisition of Custom Direct. For the full year, revenue is expected to be between $1.36 and $1.40 billion, including approximately $60 million associated with the operations of Custom Direct, and diluted EPS is expected to be between $2.45 and $2.65.