Good day, ladies and gentlemen, and welcome to the third quarter 2010 Deluxe Corporation earnings conference call. My name is Marcella, and I will be your operator for today. At this time, all participates are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator instructions) As a reminder, this conference is being recorded for replay purposes. I would now like to turn the conference over to your host for today, Mr. Jeff Johnson, Treasurer, Vice President of Investor Relations. Please proceed.

Thank you, Marcella. Welcome to Deluxe Corporation's 2010 third quarter earnings call. I'm Jeff Johnson, Deluxe's Treasure, and Vice President of Investor Relations. Joining me on the call today are Lee Schram, Deluxe's Chief Executive Officer; and Terry Peterson, Deluxe's Chief Financial Officer. Lee, Terry, and I will take questions from analysts after the prepared comments. At that time, the operator will instruct you how to ask a question. In accordance with Regulation FD this call is open to all interested parties. A replay of the call will be available via telephone and Deluxe's website. I will provide instructions for accessing the replay at the conclusion of our teleconference. Before I begin, let me make this brief cautionary statement. Comments made today regarding financial estimates and projections and any other statements addressing management's intentions and expectations regarding the company's future performance are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. As such, these comments are subject to risks and uncertainties, which could cause actual results to differ materially from those projected. Additional information about various factors that could cause actual results to differ from those projected are contained in the news release that we issued this morning, and in the company's Form 10-K for the year ended December 31, 2009. In addition, the financial and statistical information that will be reviewed during this call is addressed in greater detail in today's press release, which is posted in the News and Investor Relations section of our website, www.deluxe.com, and was furnished to the SEC on the Form 8-K filed this morning. In particular, any non-GAAP financial measures are reconciled to the comparable GAAP financial measures in the press release. Now, I'll turn the call over to Lee.

Thank you, Jeff, and good morning, everyone. Deluxe delivered another very strong quarter. Revenue grown was 11%, or 3% excluding the one-time $25 million contract settlement, and finished near the high end of our previous outlook. Small business service revenue, excluding the portion of the contract settlement recorded in this segment grew slightly over the prior year for the second quarter in a roll, and sequentially over last quarter as well. Checks and Forms both performed well against our expectations, and new business services revenue grew 33% over the prior year. Diluted earnings per share from continuing operations exceeded the high end our outlook. We had solid execution against our cost reduction programs and spending control, which along with strong revenue performance in Small Business Services, drove higher than expected EPS. Excluding the onetime $0.31 per share contract settlement, adjusted diluted EPS from continuing operations grew 13% over prior year. In the quarter we continued our test-and-learn brand awareness and direct-response advertizing, as well as organic technology initiatives to help better position our New Business Services offerings and generate future revenue growth. At the same time, we continued our process improvements and cost reductions while driving strong operating cash flow as we continue our transformation. In a few minutes I’ll discuss more details around our recent progress, and next steps but first, Terry will cover our financial performance.

Thanks, Lee. Earlier today, we reported diluted earnings per share for continuing operations for the third quarter of $0.99 which was $0.01 favorable to the upper end of our previous outlook in spite of a tax rate which was 2 percentage points higher than expected, due to a reduction in certain qualified tax deductions in the deferred enactment of expected tax legislation. Results for the quarter also included $0.31 from the previously announced contract settlement. Revenue for the quarter came in at $368 million, which was near the top end of the range, of our previous outlook, and up approximately 11% from 2009, or 3% excluding the impact of the contract settlement. Small Business Services revenue up $207 million, was up 7% versus 2009, and still up slightly excluding the portion of the contract settlement recorded in this segment. Revenue shows solid business services growth, but was unfavorably impacted by continued economic weakness. Financial Services revenue of $103 million was up 4% versus the third quarter of last year, but down 9% excluding the contract settlement. The impact of lower check orders, and lower check pricing, was only partially offset by higher non-check revenue service’s – services revenue. Direct Checks revenue totaled $58 million, up 48% on a year-over-year basis due to the CDI acquisition. Excluding the impact of the acquisition, Direct Checks revenue was only down 4% due to continued strong reorder performance. Gross margin for the quarter was 67% of revenue, up 3.7 percentage points from 2009. Contract settlement increased the 2010 gross margin percentage by 2.4 points. In addition, benefits from improvements in manufacturing productivity, plant consolidation, delivery initiatives, and product mix were partly offset by increased delivery rates. SG&A expense increased $3.5 million in the quarter but was down to 42.9% of revenue compared to 46.4%…

Thank you, Terry. I will continue my comments with an update on what we are focused on overall, and then highlight progress in each of our three segments. I will also include throughout a perspective on what we have hoped to accomplish in the fourth quarter of 2010. And finally, provide some context looking forward to 2011. We continue to make progress on our revenue expansion initiative and key enablers with solid revenue results again in the third quarter. So we are optimistic our focus and actions are continuing to take hold. Our four key enablers to driving revenue growth includes strengthening our products and services portfolio, growing new customers, improving technology, and enhancing brand awareness and positioning. Here are some examples of the progress we have made. We grew new business services revenue 33% over the prior year quarter, had our highest Shop Deluxe revenue and growth rate increase this year in the third quarter, advanced our web-to-print platform and added new distributors and dealers. In addition to organic initiatives to improve our products and services, we continue to assess potential small to medium sized acquisition that complement our large customer bases with focuses on Small Business Services and new offerings aimed at helping financial institutions grow. In addition to our strong print leadership expertise, we have created much stronger technology and digital leadership and expertise. In addition to my and our CIO’s, technology backgrounds from MCR, our new SBS leader also brings a strong technology background from Microsoft. We also have added technology leaders and experience from our business services acquisitions, plus added several proven key leaders in the third quarter in the e-commerce, search engine marketing, and web-to-print spaces. We also continued test-and-learn brand awareness, and direct response advertisements including radio, online, television, and our small business…

(Operator Instructions) And your first question comes from the line of Charley Strauzer with CJS Securities. Please proceed. Charles Strauzer – CJS Securities: Hi, good morning. Two quick questions. One, when you look at the financial services segment, the organic declines there probably a little bit more than I was looking for. Can you give me a little bit more clarity there as to what were the drivers there? And what are you seeing there in kind of current trends versus that?

Certainly, Charley, I’ll take that question. In our margin setback just a little bit in that segment this quarter, but given where the revenue levels are in this segment, I think what you can expect to see is that anything really kind of in the upper teens and the low 20s is probably a normal range just because it doesn’t take a lot to drive a margin percentage change there. So things like price increases, new contracts, timing of investments that we make in that segment, that can create some volatility in that margin kind of in that range that I was giving there, so that certainly came through in this quarter too. Plus, in this quarter, we saw a little bit of a kind of non-favorable shift in some of the, next to the types of products that we saw customers ordering with coming through some of the larger banks, just some of the more lower priced products, so it was really just a combination of a number of different factors. Charles Strauzer – CJS Securities: Got it, thanks, and then you talked about the, Lee mentioned about this new contract that’s in negotiating terms. This is I’m assuming new competitive acquisition that you’ve just won.

Yes, we’re negotiating. Charles Strauzer – CJS Securities: Got it, okay, but you’ve technically been awarded, but you haven’t finalized the terms yet.

Correct. Charles Strauzer – CJS Securities: Excellent, and then Lee, when you talked a little bit about rewards checking as a new offering, a relatively new offering, can you explain a little bit more about that is. It kind of seems like contrary to what the banks would want to do in terms of – it sounds like you’re rewarding people for using checks, is that correct, or is that just something that’s terminology?

It’s not checks Charley. It’s checking accounts, but basically what our partnership with banks do is that it’s an opportunity for a consumer to earn higher rates of return by how they basically manage themselves and their checking accounts. So it depends on how much they use debit, credit, and whether they take statements electronically versus in paper form. So it’s checking Charley, but it’s not paper checks. It’s checking account focus is the way you need to think about it. Charles Strauzer – CJS Securities: Got it, so it’s all usage of the account.

That’s exactly it. Charles Strauzer – CJS Securities: Got it, excellent, thank you very much.

You’re welcome Charley.

Your next question comes from the line of John Kraft with D.A. Davidson. Please proceed. John Kraft – D.A. Davidson: Hey, guys. Just to follow up, on the financial institution segment this quarter, there’s obviously some puts and takes here, but was the SunTrust migration completed at the very beginning of the quarter, or was it sometime in the quarter?

Yes, very beginning of the quarter. John Kraft – D.A. Davidson: So you get a full quarter there, what about the lost client, when is that move out, full quarter, is that gone?

No, not a full quarter. That transition is really throughout the course of the quarter, so that was the [inaudible] part of the quarter. John Kraft – D.A. Davidson: Okay, and on the direct side, the obviously strong orders there, re-orders there, was there some particular ad spending, or what was driving that?

Oh, we just did very well. We’ve had – one of the positive things with having the direct checks and having the CDI piece is being able to look at what works in two different markets for us, John. And then the timing of when our, some of the changes that we’ve made to that, to direct checks program, and then to see the CDI program is really just allowing us to take advantage of opportunities with the consumers as they re-order. So I think that’s the way you think about it. John Kraft – D.A. Davidson: Okay, and then just lastly, on the kind of pending RSPs that you’ve been talking about, just so I can clarify here, you did win one that you’ll start in Q1. You are in final stages of I guess hearing back from them. One that would happen that would migrate potentially the latter part of 2011, and then are there, there’s how many left out there that you’re in the process of?

I won’t give the number, but I will just add that there are more that are coming over the next year. John Kraft – D.A. Davidson: Okay, thanks guys.

You’re welcome John.

Your next question comes from the line of Jamie Clement with Sidoti. Please proceed. Jamie Clement – Sidoti: Hey, good morning gentlemen.

Hi, Jamie. Jamie Clement – Sidoti: Just to I guess follow up on Charley’s question. You gave a lot of information in prepared marks. Is the way you all think about kind of on-going apples-to-apples margins in your segments to knock $12.1 million out of the operating income for SPS, and $12.5 out of financial services?

Yeah, that would be correct. Jamie Clement – Sidoti: Okay, so just to clarify a little further, that’s seems like an awfully low margin in financial services, so Terry, just a little bit more on kind of what’s going on there exactly.

The reporting cost effect that Terry [inaudible], the way I would think about it is we ended up in the I think 16.3 or 16.4 range I think. And I think you need to be really careful here. We’re talking about, last year I think we did $19.3 in the quarter, $1.5 million of profit here, and there’s a lot of mixed things going on between product. And there’s a lot of – we also installed the new dash-boarding, and tools, and all that stuff, and had a big ramp in the quarter Jamie for that. So I think the thing that Terry and I were trying to leave you with is there’s a lot of noise and traffic within there, but we’re not trying to give you something that we’re alarmed that there’s a new trend, or a lower trend here. Jamie Clement – Sidoti: That is exactly what I’m asking. Yes, so in other words, I mean the margins that we’ve seen in that segment over the last couple of years kind of high teens, and you did a 20% plus just in the first part of this year, which maybe isn’t sustainable or whatever, but there’s no fundamental change in your business as a result of losing the one customer or something like that.

No, not at all.

Not at all. Jamie Clement – Sidoti: Okay, changing gears a little bit, Lee, can you talk – I think I asked the same question three months ago. The direction of your marketing spending on your new services, can you give us an update on kind of what you have learned through this process in terms of what you’re finding effective, what you are tinkering with, that sort of thing?

I think the way that we’re approaching this is first and foremost is we are not stopping our print. We find there’s certain things that work exceptionally well through print. But we have automated print first with online, and so we have – if you look at a percentage increase, we have clearly increased our online spend and profiled AR. And then what we’re doing Jamie is we’re testing into various different things, whether it’s working with customers, and various partnerships, or sponsorship relationships that we have for example with entrepreneur.com, to the direct response to TV testing that we did, to the mobile tour events that we did. And what I would tell you is they’re all contributing to more customers and then adding the brand awareness initiatives that we’re doing. But there are certain things that we clearly see that are better, and the print online still is better than the other ones, but those are newer. And so we’re going to continue to keep tweaking, and testing, and getting more robust. Nothing is bad at this point and time. All are contributing. It’s just a matter of how do we keep getting better at tinkering with this thing to the point – how we’d like it to play out in the long runs. I think that’s the way to think about it. Jamie Clement – Sidoti: Yeah, okay, that makes sense. Just one final question. Lee had mentioned that you all were cautious with respect to the holiday period. Are you, just to be specific, are you – I know one of the seasonally, the things that you have in the fourth quarter that you don’t have in other parts of the year in volume is the greeting card business. I’m assuming you’re not expecting much out of the greeting card business based on what you’re saying here.

I think the way Terry and I sat down and looked at this is the way to think about when we put guidance out for Q3, we said we’re expecting a slight improvement over the balance of the year. Now we’re kind of saying, and we haven’t seen that. I don’t think anybody is seeing it at this point, so all we did is tighten it a little bit. The holiday, because of that, because holiday comes in the fourth quarter for us, and by the way, holiday for us is not just greeting cards. It’s our bags, and bows, retail packaging offers, ask form stuff kind of. We call it – I guess we should call it separate, but that stuff buckets that are more at that time of the year. We’re just – we’re not seeing anything yet because it’s too early for us. Our big card ramp actually Charley happens, or Jamie, happens in November. But we’re just because of the uncertainty, is we thought it was prudent to tighten back a little bit. Jamie Clement – Sidoti: That’s very fair because they are other companies out there that are in the greeting card business that have given pretty cautious outlooks over the next couple of months. So I just wanted to make sure that you guys were on the same page there.

Yeah, I think that’s all we’ve done is tighten this just given the uncertainty, but we’ll go at it with the same vigor that we always do. And we’re prepared, and obviously we’re starting to see some sales already. But the big ramp doesn’t occur for us until the mid-November timeframe. Jamie Clement – Sidoti: Okay, thank you all very much for your time.

You’re welcome Jamie.

(Operator Instructions) And your next question comes from the line of David Herbert with Wells Fargo Securities David Herbert – Wells Fargo Securities: Good morning guys, how are you?

Good morning. David Herbert – Wells Fargo Securities: Just a quick question on the balance sheet, you guys have I guess a little shy of $300 million of the 5% senior notes due at the end of 2012, and you have a couple of other maturities in 2014, 2015. Just curious about your thoughts about how you might address that.

Yeah, I mean the 2012’s that are the first maturities that come due for us, but actually the very end of 2012. So we’re still a little over a couple years away from having to repay those notes, but we’re pretty aware that right now the market right now for high yield issues is pretty strong. And we certainly always look at opportunities, and consider our capital strategy. But at this point and time, we’ve not announced that we’re planning to do anything differently with those bonds at this point and time. But we’ll certainly continue to look at our options, and evaluate alternatives for the company. David Herbert – Wells Fargo Securities: Okay, thank you.

You’re welcome.

This concludes the question and answer portion of today’s call. I would now like to turn the call back over to Mr. Lee Schram for closing remarks.