Good day ladies and gentleman and welcome to the Q3, 2012 Deluxe Corporation Earnings Conference Call. My name is Clinton and I’ll be your operator for today. At this time, all participants are in a listen-only mode. We will conduct a question-and-answers session towards the end of the conference. (Operator Instructions) As a reminder, this call is being recorded for replay purposes. And now I turn the call over to today’s host Mr. Jeff Johnson, Treasurer and Vice President of Investor Relations. Please go ahead, sir.

Thank you, Glenn. Welcome to Deluxe Corporation’s 2012 third quarter earnings call. I’m Jeff Johnson, Deluxe’s Treasurer 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 in any other statements addressing management’s intentions and expectations regarding the company’s future performance. Our 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, we issued this morning and in the company’s Form 10-K for the year ended December 31, 2011. In addition, the financial and statistical information that will be reviewed during the call is addressing greater detail in today’s press release, which is posted in the news and Investor Relations section of our website 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. We just delivered our third outstanding quarter this year and are well positioned to grow revenue for the full year 6% to 7%, despite the continued sluggish economic environment. 2012 would represent the third consecutive year of revenue growth. The last time we achieve three consecutive years of revenue growth dates back 16 years to 1996. We reported third quarter revenue and adjusted earnings per share well above our outlook. Revenue grew almost 7% over the prior year driven by small business services revenue growth of 14% of which 4% came from the OrangeSoda acquisition. Checks and forms both perform well and marketing solutions and other services revenues grew 23% over the prior year. Adjusted diluted EPS grew 9% over our strong prior-year. We also generated very strong operating cash flow we’re not drawn on our credit facility during the quarter and we have increased our cash position $77 million from last December. Encouragingly, we continue to see stabilization in secular checked-declined rates with financial institution consumer declines less than 5% in the quarter, which is the third quarter in a row, we have seen significantly lower decline rates. We also continue to invest in brand awareness to help better position, our marketing solutions and other services offerings and drive future revenue growth. Further, we extended our process improvement and cost reduction initiatives, while driving strong operating cash flow as we continue to transform Deluxe. In a few minutes, I will discuss more details around our recent progress in next steps, but first Terry will cover our financial performance.

Thanks, Lee. Earlier today, we reported diluted earnings per share for the third quarter of $0.81, which included restructuring costs of $0.04 per share. Excluding these costs, adjusted EPS of $0.85 was well above the upper-end of our previous outlook and 9% higher than the $0.78 reported in the third quarter of 2011. Strong check and forms revenue in small business services and financial services and lower discretionary spend drove better than expected EPS performance. The restructuring charges were primarily for employee severance and infrastructure consolidations. Revenue for the quarter came in at $378 million, which was well above the range of our outlook and up 6.5% from 2011. All three of our business segments performed well. Small business services revenue of $244 million grew 14% versus last year on a reported basis, of which nearly $8.5 million came from the OrangeSoda acquisition. While we continue to operate in a weak economic environment. We delivered growth in marketing solutions and other services, our Safeguard distributor, dealer and major accounts channels and in checks and forms. Financial services revenue of $83 million declined less than 3% versus the third quarter of last year and reflected a lower than expected secular decline – check decline rate of less than 5%. The impact of lower check orders was mostly offset by price increases. The addition of Citizens Financial Group and higher non-check services revenue. Direct checks revenue of $51 million was down 8% on a year-over-year basis. Gross margins for the quarter was 65.2% of revenue, down 0.3 percentage points from 2011. Benefit from price increases, improvements in manufacturing productivity and other cost reduction initiatives were more than offset by increased delivery rates, material cost and performance-based compensation expense. SG&A expense increased $8.6 million in the quarter, it was 45.3% of revenue compared…

Thank you, Terry. I will continue my comments with an update on our key revenue growth area, marketing solutions and other services and insights on next steps for improving our brand awareness. I will then highlight progress in each of our three segments, including the perspective on what we hope to accomplish in the fourth quarter and finally provide some context looking forward to 2013. We have significant growth opportunities in marketing solutions and other services, including for small businesses, well the design, web services, social media, Web-to-print, search engine marketing and 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. Here is an update on the four subcategories framework, we introduced on our first quarter call for marketing solutions and other services. First, small business marketing is expected to represent approximately 41% of total marketing solutions and other services revenue, with expected organic growth rates this year in the high teens. Although expected actual growth rates will be higher this year, closer to the mid ‘30s given the PsPrint acquisition in July, 2011. Key growth initiatives include scaling Web-to-print by cross-selling to our customer base and continuing to add new customers through major accounts, distributors and partners. Second, web services, which includes logo and web design, web hosting, SCM, SCO, email marketing, social and payroll services, as expected to represent approximately 30% of total marketing solutions and other services revenue, with expected growth rates this year close to 40% driven by the OrangeSoda acquisition. Key growth initiatives and performance drivers include adding wholesale Telco and major accounts, cross-selling to our retail base through bundled presence…

(Operator Instructions) Your first question comes from line of Charles Strauzer of CJS Securities. Please go ahead. Charles Strauzer – CJS Securities: Hi, good morning.

Good morning, Charles. Charles Strauzer – CJS Securities: Hey, a couple of questions. Obviously with the check declines pretty low rate here and better handle on kind of dynamics or causes behind that?

Charlie what we’re doing, and I think we’re continue to get smarter and smarter about looking out and looking at what the check rates have decline are and as I said in my prepared comments, the nice thing again this quarter as we saw both the community and the national accounts performed better than we expected. So it’s consistent now, we’ve seen that now for several quarters. What I would also tell you is we’re trying to get smarter and smarter every day looking at what are the drivers of the decline rates and I give you some examples of things that we’re working on. We’re still going through the rigor of this, but when we look at things such as housing stock an automatic bill pay, credit card payments, branches that are opening and closing, we’re just getting smarter and smarter about being able to try to be more predictive about where we expect the decline rates to go. So we’re not ready to decline victory on this, but we know it’s important, we know investors are wanting us to try to get more information to be smarter and smarter about our projections in our rates of decline. And what we’re trying to do is work hard at looking at all these variable factors and trying to figure out how can we get more predictive. But again, the nice thing that we’ve seen is the consistency both in the national and the community bank space right now. Charles Strauzer – CJS Securities: Very good. And then, you talked about some of the RFPs or the pending of these; one was not know but not now, maybe, if you can kind of clarify that a little bit, what’s that mean that – it’s potentially an award or is that one way that just kind of saying like, you know what we’re just delay, it’s a decision. I mean, you help us clarify a little bit of that?

Yeah. I think the simple answer is that they told us we’re not ready to make a move. But we’re not – it’s not a long-term decision. As you know, most of these contracts, whether they’re competitive ones or ours are generally three to five-year contracts. And so the best I can leave with you is that, we were told not know but not now. Charles Strauzer – CJS Securities: Okay. Very good. And then lastly, when you look at the October NFIB kind of small business optimism numbers, they weren’t very great. But kind of ticked downward again, just in general what you’ve seen from when you talk to small businesses out there? And just the general sense seems like the uncertainty around the election is still kind of holding people back, is that kind of what you’re seeing as well?

Yeah, I think it’s in my prepared comments. So I think it’s tough out there. And I think we’re meeting more and more, we actually even spent more time this quarter with small businesses at large, because of our testing on the brand and the work that we’re doing on the brand. And what I’d tell you is, yeah, I think – we think it’s challenging out there. And as I also said on my prepared comments what we like about what we’re doing, Charlie, is, when we did some more work with some outside parties in the quarter and we continue to see that the number one pain point is revenue growth for small businesses. And again, we believe the work that we’ve been doing and that we’re doing as we go forward to get our offers including this new services offers that help small businesses to get and keep and help them grow with their customers is really on the mark. And I think that’s why we’re excited about where we’re going directionally. And it would be like a better economy shore, but we’re going to work with the hand we’re dealt and we’re going to try to continue to improve the company as much as we can. Charles Strauzer – CJS Securities: Great. Thank you very much.

You’re welcome, Charlie.

Thank you. (Operator Instructions) Your next question comes from the line of John Kraft of DA Davidson. Please go ahead. John Kraft – DA Davidson: Good morning, gentlemen.

Hey, John.

Hi, John. John Kraft – DA Davidson: Hey, congrats first of all. And a couple for each of you. Lee, you said you were keeping an eye out for tuck-in acquisitions on the SBS side. Are there any particular products if you like you’re missing or any particular focus that you might be looking for?

Yeah, as I said we’re focused primarily in the marketing solutions and the other services space and more in the services piece of that. John, we are trying to continue to assess. What I would call the evolution of how our small business owner evolved as a business. So it’s early on and they’re trying to figure out how to brand themselves and get online and then moved to promote themselves and then to really get more customers. There are several areas that we were continuing to look at to see if it makes sense for us to dig deeper and get more offers or get more depth and capability in those phases. And I’m not prepared to give you any more color other than that, but that’s how we’re looking at it and one other things that I want to highlight again I think is really important is the work that we’re doing to bring the brand together with the continuity from our call center – into our call centers, into our online offers content capability. We come out with this later in the fourth quarter, we think this is going to be a powerful positive formula for us as well. And so what we’re doing John, as we’re trying to validate what that’s going to bring and then what pieces that we think we might need to be looking at more closely to round out that our qualitative tool kit for that small business owner. So that’s how we’re looking at it right now. John Kraft – DA Davidson: That’s helpful. Thanks, Lee. And just a clarification on the guidance that I’m assuming, assumes no new acquisitions in there or competitive RFP wins?

Correct. John Kraft – DA Davidson: And a couple for you Lee. I’m sorry for you, Terry. You mentioned consolidating a couple of check centers and I guess, I was wondering about a timeline there was that early 2013?

Now that we have two pretty facilities that we are consolidating will be done later this year; one is a check free facility in the Direct Checks space, the other is actually a pretty center in small business and that does not produce checks. John Kraft – DA Davidson: The Rockford. Okay. And then separately on that the tax increase in 2013, you suggested might move up a little bit. Right now, you’re saying 33, where we think in 35. What’s the best guess at this point?

We haven’t put our specific guidance on that, yet, so I won’t give a specific number right now, but we had really over the past couple of years we’ve had some benefits, which just some of the quarters that have been more one-time in nature. And we expect the delta between this year and next year really to be attributed to fewer of those one-time benefits. John Kraft – DA Davidson: Okay, that’s fair. Good job, guys. Looking forward to hearing and seeing those ads.

Thank you, John.

Thanks, John.

Thank you. Your next question comes from the line of Jamie Clement of Sidoti. Please go ahead. James Clement – Sidoti: Lee, Terry, Jeff, good morning.

Hi, Jamie.

Hi, Jamie.

Hi. James Clement – Sidoti: Hi, hi. The question – most have been asked and has been answered. But I wanted to ask you a financial services in direct check, and obviously, a significant majority portion of margin being derived by checks in those segments. And margins continue to be very strong this year, as you look out over the next 12 to 24 months, I mean, would you expect some natural erosion in those markets with the erosion in kind of volume over time or do you think you have enough in the way of taking costs out to be able to keep them at these levels?

Jamie, let me deal with direct checks, because it’s easier to give some color on that. We expected to stay tight to that 30% range. I’ve used language when I put it out usually at the beginning of the years plus or minus a couple of points around 30%. I think, Terry and I expect that to be the case as we go forward. I think in the case of – again, without trying to be too specific in the case of financial services, I want you to remember that we are beginning to invest more in the non-check services area. And as we make investments and we start to make some of those investments in the third quarter, we’re making some more investments in the fourth quarter, I think, we’ll make more investments as we head into 2013 to come out with offers that we think are going to hit the mark, primarily for the community banks part of the market, but even up into some of our larger customers there. We’re going to make some investments there, and yeah, I think that will have some implications potentially for margin. But look we know it’s important to keep the margin profile strong in our check businesses. And also you’ve probably heard my comment about we will continue our cost and expense reduction initiatives in 2013. We’re not prepared to give a specific number right now for that, but we’re staying after it. And so the real question, Jamie, is going to come down to how do we balance that exactly in the margin profile in implications for that financial services business. That’s the way I think you should think about it for modeling purposes. James Clement – Sidoti: Okay. Great. And last question, if I may. Can you talk about the importance of search engine marketing and search engine optimization on your small business customers. How mobile is kind of impacting, I would imagine you’re getting as many questions at the LOCs as your answer, as you were asking to your own customers. So I’m curious for your thoughts, just considering that market (inaudible) that you ready to began?

Look we are extremely thrilled with the OrangeSoda acquisition. It’s done a number of things for us, in addition to bring us a nice revenue stream and a bunch of smart people and just an unbelievable positive culture. They’re teaching us how to look at channels and customers and bring those search results to our small business customers. I just make a comment because this is really interesting, I’m going to have an update with the key leaders of the company this afternoon and we’re going to show a video of a spa owner in Connecticut and it’s a testimonial and I watched it yesterday for the first time and I told my small business leader. This is just incredibly tremendous, I mean she talks very eloquently and very clearly about how we brought search engine marketing and optimization to her spa and how she’s using that Jamie to really build her customer network. So we’re just really excited about or we’re seeing strong results so far and we’re obviously expecting to be able to build on that and we’re also learning about churning and how to deal better with churn from the – just a great group of people that we’ve guided so there as well. So that’s the way I would think about and look at it right now and obviously we’re really introduced about the direction here. James Clement – Sidoti: Thank you very much.

You’re welcome.

Thank you. I’d now like to turn the call over to Lee Schram for closing remarks.

Okay. I just want to thank everybody again for their participation and questions that we got today. And as I normally say we’re going to get back to work, we got a lot left to do and we look forward to providing some more positive progress on our next earnings call. And I’m going to turn it over to Jeff for some closing housekeeping comments.

Thank you, Lee. This is a reminder that a replay of this call will be available until November 1 by dialing 888-286-8010, when instructed provide the access code 466-727-95. The accompanying 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 great afternoon.

Thank you for joining in today’s conference. This concludes our presentation. You may now disconnect. Have a good day.