Good day ladies and gentlemen, and welcome to the first quarter 2012 Deluxe Corporation earnings conference call. My name is Stacey and I’ll be your conference moderator for today. (Operator Instructions). I would now like to turn the call over to your host for today, Mr. Jeff Johnson, Treasurer and Vice President of Investor Relations. Please proceed.

Thank you, Stacey. Welcome to Deluxe Corporation’s 2012 first quarter earnings call. I am Jeff Johnson, Deluxe’s Vice President of Investor Relations and Treasurer. 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 by a 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 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 form10-K for the year ended December 31st, 2011. 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 at www.deluxe.com, and was furnished to the FCC 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. To use a baseball analogy, which is timely as the season is just underway, we hit a home run in the quarter and are off to a fantastic start to the year despite a continued sluggish economic environment. We reported revenue and adjusted earnings per share well above our expected ranges. Revenue grew 8% over the prior year, driven by small business services revenue growth of 15%, of which 4% came from the PsPrint acquisition. This quarterly growth rate was the strongest we have reported since we acquired NEBS in 2004. Financial services revenue grew 3% over the prior year. Checks and forms both performed well against our expectations, and marketing solutions and other revenues grew 35% over the prior year and solidly in the mid-teens on an organic basis. Adjusted diluted EPS grew 17% over a strong prior year. We generated solid operating cash flow and we were not drawn on our credit facility during the quarter, actually improving our balance sheet cash position $30 million from last December. We continued to invest in brand awareness, to help better position our marketing solutions and other services offerings, and drive future revenue growth. We also extended our process improvement and cost reduction initiatives (inaudible) operating cash flow, as we continued to transform Deluxe. In a few minutes, I will discuss more details around our recent progress and next steps, but first Terry will cover our financial performance.

Thank you Lee. Earlier today we reported diluted earnings per share for the first quarter of $.86, which included restructuring costs of $.02 per share. Excluding these costs, adjusted EPS from continuing operations of $.88 was well above the upper end of our previous outlook, and 17% higher than the $.55 reported in the first quarter of 2011. Strong revenues and favorable product mix drove better (inaudible). The restructuring charges are primarily for employee severance and infrastructure consolidations. Revenue for the quarter came in at $378 million, which is well above the range of our previous outlook. Revenue was up 8% from 2011, and up 3% on a sequential quarterly basis. All three of our business segments performed well and benefited from one extra business day in the quarter. (inaudible) revenue of $230 million grew at 15% versus last year on a reported basis, of which 4% came from the PsPrint acquisition. While we continue to operate in a weak operating environment, we delivered growth in marketing solutions and other services, our safeguard distributor and dealer channels, and in checks and forms. Our core business also benefited from a routine price increase. Financial services revenue of $91 million grew 3% versus the first quarter of last year, and reflected a lower than expected secular check decline rate of just over 5%. The impact of lower check orders was more than offset by (inaudible) order, higher non-check services revenue and the migration of Citizens Financial Group. Direct checks revenue of $58 was down 6.5% on a year-over-year basis. Gross margin for the quarter was 66.3% of revenue, up 0.7 percentage points from 2011. (inaudible) benefit from price increases, improvements in manufacturing productivity, delivery initiatives and product mix were partly offset by increased delivery and material costs. SG&A expense increased $11.2 million…

Thank you Terry. I will continue my comments with an update of what we are focused on overall, and then highlight progress in each of our three segments. I will also include throughout a perspective of what we hope to accomplish during the balance of 2012. Our primary focus in 2012 continues to be on profitable revenue growth. We have created more differentiated, technology-led check offers through investments in automated flat packaging, digital printing and online portals and dashboards. We also have significant growth opportunities in marketing solutions and other services, including for small businesses, logo design, web services, social media, web-to-print, search engine marketing, search engine optimization, payroll and fraud and security services, and for financial institutions, customer acquisition, risk management and profitability offers. We will continue to assess potential small to medium-sized acquisitions that complement our large customer bases, with a focus on marketing solutions and other services. We have strengthened our channels in small business to include online, retail, wholesale, distributors, dealers and major accounts. Deluxe is now more capable of helping small businesses get and keep customers, and helping small to mid-sized financial institutions with customer acquisition, risk management and profitability offers. Today we are introducing a framework that includes four subcategories that we expect to continue to use going forward in 2012, to help provide more insight and clarity for marketing solutions and other services revenue. First, small business marketing is expected to represent approximately 43% of total marketing solution and other services revenue, with expected organic growth rates this year in the mid-teens, although expected actual growth rates will be higher this year, closer to the mid-30s, given the PsPrint acquisition in July of 2011. Key growth initiatives include scaling web-to-print by cross-selling to our customer base and adding new customers through major accounts…

(Operator instructions). Your first question comes from the line of Charley Stauzer with CJS Securities. Charles Strauzer – CJS Securities: Hi. Good morning.

Hi, Charley. Charles Strauzer – CJS Securities: Hey, a couple quick questions. Terry, for you, what was adjusted net income, not EPS, but adjusted net income if you have that number?

Adjusted net income? We don’t report adjusted net income externally. So you can back into it with the, you know, with the EPS pieces that we gave you. Charles Strauzer – CJS Securities: And what was the – do you know the tax rate associated with the adjusted EPS was?

I think about the same as what it is under consolidated. Charles Strauzer – CJS Securities: All right.

They’re almost identical. Charles Strauzer – CJS Securities: No problem. And my phone was cutting out a little bit earlier, but did you give out segment guidance on operating profits? I know you did the sales growth ranges, did you give any guidance on operating profit?

No, we didn’t give any new perspective there. You know, our position on margins within the operating segment is that, you know, we are [inaudible] to deliver growth and operating income at the segment level and our focus is really to try to hold the margins kind of where they’ve been at. So the growth focus is on the dollars, not necessarily the margin growth rate. But you know, as we get into the segments, you know, small changes in levels of investments drive a little bit of a rate change. You know, usually within a point or two at the segment level. That’s kind of where we’ve been. It’s a spot where we expect to stay. Charles Strauzer – CJS Securities: Got it. And also, did you get an update on [inaudible] in terms of the number of members on that site so far?

We did not, Charley. It’s not a number that we gave out today. Charles Strauzer – CJS Securities: Got you. Okay. Thank you. And then lastly on the RFP side, I know you didn’t win the larger one, but are there any of your larger contracts coming up for rebid in the next 12 months or so?

We have, as we said, consistently in the last several calls, just a handful of what we would consider the larger ones, but they’re very small amounts, Charley, relative to the big large national, and those will be coming due towards the end of the year. And we expect to, obviously, we expect to be able to maintain those. Charles Strauzer – CJS Securities: Great. 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 & Co.: Congratulations, Lee, to you and your team.

Thank you, John. I appreciate it. John Kraft – D. A. Davidson & Co.: Sure. The first question, I guess just to clarify, Lee, and maybe dig into it a little bit more, the distribution subsets, you know, obviously you’ve got the newer retail and the telcom and the legacy financial services, and I talked a bunch with Jeff about how these, I think some of these are sort of underappreciated. Is there a way you can give us a feel for the new customer and the contribution from each of these segments? Is there a breakdown there that you could provide us?

John, if I follow where you’re heading, you’re talking about in small business services, the mix of the 500,000 web services customers, is that what you’re… John Kraft – D. A. Davidson & Co.: Well, yeah, and the new wins, the new customers that you’re gaining, are they predominately still coming from the business advantage platform, the financial services or is it a pretty good mix between those?

No, let me give you a framework on where we’re seeing new customers, and let me start. We are still obviously, as I mentioned in the prepared comments, gaining customers through our Deluxe business advantage program. But at the same time, we are also gaining customers outside of that program. What I would tell you is that the growth rate over last year was about the same, I think very strong double digit growth rate in both the DDA and the non-DDA. Okay? Then what I would tell you is the mix between – we are also getting new wholesale customers as well as through our telco arrangements that we have. And we are also seeing strong growth in the retail side. So we’re actually getting strength, John, in DDA, non-DDA and then also in the wholesale and the retail mix of the services space. John Kraft – D. A. Davidson & Co.: Okay, well, that’s helpful. It sounds like it’s across the board there. And then if we could also just dig into a little bit, the decline in the industry, or the decline in the decline on the check side, of 5% in the quarter, now you did exclude Citizens from that, right?

Now, this is the – the way to think about this is, we continue to look at this thing, obviously we know it’s a hot spot for ourselves let alone externally, and so we do what we call a pure same-store sales or apples-to-apples compare. So think of Citizens, since it wasn’t in a year ago, it’s not in those – we take them out of the compares of that approximate 5%. John Kraft – D. A. Davidson & Co.: Sure. And then, but you did say that there was some strength in the community bank side of things and I guess my question was, if you just could guess whether maybe there’s a migration of customers from the larger banks to the community banks, maybe due to that bank switch day or is it coming fairly evenly across the larger and the small banks?

I said in my comments, John, that we saw the rate of decline, you know that 7 to 8 we’ve been seeing, it was better for both the national and the community segments. But it was stronger in the community segment. What I will add as some additional color is that we saw the community segments in the Southeast, the Northeast and the West as far as regions in the United States, perform better than the remaining regions. What I will also add is, we also saw the same strength in those same Southeast, Northeast and West in our direct-to-consumer part of the business or the segment. So you know, we start, obviously, thinking about those we knew were regions more impacted economically, you know, in terms of the downturn. Lots of thoughts go through our head, John, nothing that I can tell you in a quarter that’s extremely more conclusive at this point, but obviously you can tell we’re on this, we’re watching it and you know, we’re going to continue to assess this as we head into the second quarter. John Kraft – D. A. Davidson & Co.: Okay, that’s interesting. Thank you. And then just one last follow up if I could. Really, in response to Charley’s question and Terry’s answer, you know, as I look at the trends in the [inaudible] segment margins, there’s certainly some trends, but what stands out for me, at least, is the financial services jump this quarter, really, to the highest I think I’ve ever seen. Is that something that we can expect, at 24-ish percent we can expect going forward?

John, I’d tell you, but that rate is probably on the high end [inaudible] we’d be kind of in our normal range. You remember too, we [inaudible] reminded us that we did put a price increase at the beginning of this first quarter, so that’s definitely helped. The other thing too, is that when we had a lower decline rate in the check volumes than what we had expected, we really saw some nice leverage on our fixed cost structure there. So think about the manufacturer work that we’ve done to right-size that capacity, we really saw some great leverage coming in that segment in particular with a lesser decline rate. So it’s really those factors. But I tell you, you know, again, we haven’t assumed that same decline rate going forward so some of that leverage would go away as we move into second quarter with a higher decline rate. John Kraft – D. A. Davidson & Co.: Got you, thanks Terry, and congrats again, guys.

Thank you, John.

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

Hi, Jamie. James Clement – Sidoti & Co. : All right, Lee, I know you all don’t talk in specific terms about margins by product line, but you know, given the growth, you know, in the marketing and other services that you all seen recently as well as the last couple of years, can you talk about just directionally the margin trends there because obviously you’re balancing it with investment spending on your own brand.

I think what you should expect as we go forward is we are clearly trying to be smart and prudent on what we invest in the brand and demand gen, as we’re trying to drive more customers and more volume in all of the services area. But at the same time, we’re clearly getting some of the larger acquisition amortization that’s weaning itself out. And so we’re trying to – and so the general trend right now is we’re improving the margins in the – and collectively in there. We really don’t, you know, break that out internally, you know, the way we run it right now. But you know, if the trend is an improvement right now because the amount we’re putting in on brand and demand gen is not as much as we’re putting in on the – or getting out on the efficiencies as we’re, you know, getting better at this across all the cost reductions and in the efficiencies that are the gains that we picked up from the amortization [inaudible]. So that’s the way I would think about it right now. James Clement – Sidoti & Co. : How’s – the channels that you all are using to promote the brand, has that mix changed much over the last four quarters or do you have a pretty good sense now a couple years into the transformation where your money should go.

Well, we – what we’re trying to do, and I'm challenging Malcolm, my small business head is, I want to win in every channel. So you know, we want to win in retial, we want to win in wholesale, we want to win with the distributors, with our partners and with major accounts. What I would tell you is, we are – and we are growing and you know, as we hear in the prepared comments, all those channels are continuing to gain momentum. The one area that we’ve been targeting a little bit more is the major accounts. We are big believers that if we can gain more access to small businesses through major accounts, in fact, many of those are actually franchises and actually are small business owners themselves, or can gain us access to small businesses. Those are areas that we think are going to help us even more. And you can see that in the table I talked about that we added this time around, the, you know, major accounts and partners. So I would say they’re a little bit more, but we’re trying to get strength, Jamie, across all channels. James Clement – Sidoti & Co. : Okay. That is very helpful. Thank you, Lee, as always, for your time.

You’re welcome.

(Operator Instructions). Your next question comes from the line of Ben Glaze with Apollo. Please proceed. Ben Glaze – Apollo: Hi. How are you guys doing?

Hi, Ben. Ben Glaze – Apollo: Just a quick question on – maybe a high-level question how we should think about the driver of check volume between I guess new account openings and reorders. Is there a way to help us there or – if that makes sense.

In which segment, or overall? Ben Glaze – Apollo: Yeah, just I guess, if you could break it down between small business and consumer, that would be great. I’m just curious is there’s like a mix we can think about as being the driver of the check volumes for you guys.

I’m just trying to think.

The way the market works there, Ben, is that they – it’s an initial order and then it’s – that’s generally going to fall on the Internet, so it’s generally lower price and then a reorder that’s a higher, you know higher price, you know, once the first order is taken. I can’t tell you how, you know, probably – I’ll use a 12 to 18-month period of time between initial order and reorder. Obviously it depends on how many they’ve – a consumer buys and then when they, you know, how many they write. But that’s kind of the way that market works. The pricing through the bank channels, depending on how the banks price to the – because it’s a – our arrangement with the banks is a wholesale arrangement, so generally, though, I believe the banks just charge, on average, the same whether you’re an initial order or reorder. Hopefully that helps you a little bit. I’m not sure if I’m helping answer your question, but I think that’s the way to think about it.

The only thing I’d add to that, [inaudible] new account openings, we’re certain new account openings at a bank are going to drive check orders, but that’s really, you know, a level of data that we don’t get good clear information on from the bank. The banks supply us with the orders that are coming into the bank, but they’re not necessarily tagging that or identifying that as a new order or a reorder or you know, what the different drives of that order comes from. Ben Glaze – Apollo: Okay, got it. That’s very fair and I appreciate the comments. And my other question was just kind of, actually, kind of the follow up to Jamie’s which I thought was a good one and would be helpful. You had mentioned operating leverage and benefit as a result of kind of better volume performance and is there a way to help us think of that, what detrimental margins or incremental margin on volume?

In the checks space again, Ben? Ben Glaze – Apollo: Yes, just pure like checks that if we were to look at the checks products.

We don’t give that out. It’s not something we’ve historically done, but I think the way you want to think about it is, if we perform better, you know, we get a 5% decline as opposed to a 7 to 8% decline, we’re going to be able to kick in more operating margin on average and it depends on, believe it or not, the mix of banks, the mix of checks that consumer are buying. So it’s not a perfect answer, but the best thing we can do is to say that that’s going to give you some better leverage in that operating margin. Ben Glaze – Apollo: Sure. Okay. Thank you.

You’re welcome, Ben.

At this time, I would like to turn the presentation back over to Lee Schram for closing remarks.

Okay, again, thanks for, everybody, for participating and for your questions today. We’re now going to get back to work and we look forward to providing an positive progress report on our next earnings call, and I’ll turn it over to Jeff for a wrap up.

Thank you, Lee. This is a reminder, that a replay of this call will be available until May 3rd, but dialing 888-286-8010. When instructed, provide the access code, 97921126. The company slides are archived in the news and investor relations section of Deluxe’s website at Deluxe.com. Again, thank you for joining us. Have a good afternoon.

We thank you for your participation in today’s conference. This does conclude your presentation. You may now disconnect and have a great day.