Midland PaperclipsIndustry News
Deluxe Corporation announced its financial results for the first quarter ended March 31, 2013.
First Quarter 2013 Highlights:• Revenue for the quarter was $387.6 million compared to $378.0 million during the first quarter of 2012. Revenue increased 2.5% compared to 2012, despite two fewer business days in 2013, driven by 8.1% growth in Small Business Services. Marketing solutions and other services revenue increased 22.2% compared to 2012 and represented 19.2% of consolidated revenue, up from 16.1% in the first quarter of 2012. • Gross margin was 65.6% of revenue, compared to 66.3% in the first quarter of 2012. Unfavorable product mix and increased delivery rates and material costs in 2013, were partly offset by favorable impacts from price increases and the Company’s continued cost reduction initiatives. • Selling, general and administrative (SG&A) expense increased $3.3 million in the quarter compared to 2012. Increased SG&A expense associated with commissions on increased revenue, as well as higher brand awareness spending and the OrangeSoda acquisition in the second quarter of 2012, was partially offset by benefits from continued execution against expense reduction initiatives. • Operating income in 2013 was $77.7 million compared to $78.0 million in the first quarter of 2012. Restructuring-related costs were $1.4 million in 2013 versus $1.9 million in 2012. These costs were primarily attributable to the Company’s on-going cost reduction initiatives. Operating income was 20.0% of revenue compared to 20.6% in the prior year driven primarily by product mix, increased delivery rates and material costs, and the OrangeSoda acquisition in the second quarter of 2012, partly offset by higher revenue per order and continued cost reductions.
AAA Fuel Gage 4/26/13National Unleaded Regular:Current Average - $3.505/gallonMonth Ago Average - $3.650/gallonYear Ago Average - $3.830/gallonHighest Recorded Average - $4.114/gallon on 7/17/08Diesel:Current Average - $3.890/gallonMonth Ago Average - $4.018/gallonYear Ago Average - $4.104/gallonHighest Recorded Average - $4.845/gallon on 7/17/08
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