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Date Submitted: 01/08/2013 04:09 PM
DELUXE CORP CASE STUDY
Deluxe Corporation is one of the largest paper checks printers in US. Deluxe offers several products and services to small businesses, financial institutions, and consumers. Since 2000 it reorganized its structure around three businesses Financial services which sell personal and business checks, check-related products and services to banks and financial institutions Direct checks: which sells personal and business checks, check-related products and services directly to consumers The small business services which offers services and products to small business
In the late 1990s, Demand for paper checks has started to decline to the advantage of electronic payments. This shows clearly in the income statement (table 1) of Deluxe Corp. where sales have started to stagnate from 1995 to 1998 before moving to a negative trend in 1999.
Table 1
1992 Selected Income Statement Information Net sales Sales evolution Operating expenses Operating expenses evolution Profit from operations Profit from operations evolution Interest expense Interest expense evolution Net earnings Net earnings evolution $202,8 $15,4 $812,2 $722,2 $1 534,4 $1 581,8 3% $739,5 2% $842,3 4% $10,3 -33% $141,9 -30% $1 747,9 11% $797,3 8% $950,6 13% $11,3 10% $140,9 -1% $1 858,0 6% $819,4 3% $1 038,6 9% $14,7 30% $87,0 -38% $1 895,7 2% $862,4 5% $1 033,3 -1% $12,0 -19% $65,5 -25% $1 919,4 1% $806,7 -6% $1 112,7 8% $9,7 -19% $44,7 -32% $1 931,8 1% $805,9 0% $1 125,9 1% $9,7 -1% $143,1 220% $1 650,5 -15% $688,9 -15% $961,6 -15% $9,5 -2% $203,0 42% $1 262,7 -23% $417,9 -39% $844,8 -12% $10,8 14% $161,9 -20% $1 278,4 1% $421,1 1% $857,2 1% $5,6 -48% $185,9 15% 1993 1994
at fiscal years ended December 31
1995 1996 1997 1998 1999 2000 2001
Net sales $2 000,0 $1 800,0 $1 600,0 $1 400,0 $1 200,0 $1 000,0 $800,0 $600,0 $400,0 $200,0 $0,0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Net sales
The graph above shows the steady decrease in sales in 1999 and 2000. The...