Good day ladies and gentlemen and welcome to the Fourth Quarter 2012 Deluxe Corporation Earnings Conference Call. My name is Sheyla [ph] and I’ll be your operator for today. At this time, all participants have been placed on a listen-only mode. Before we’ll end the conference, we will conduct the question and answer session. If at any time during the call you require operator assistance, please press star zero and an audio coordinator will be happy to assist you. As a reminder, this call is being recorded for replay purposes. I would like to now turn the conference over to your host for today, Mr. Jeff Johnson, Treasurer and Vice President of Investor Relations. Please proceed sir.

Thank you Sheyla [ph]. Welcome to the Deluxe Corporation’s 2012 fourth quarter earnings call. I’m Jeff Johnson, Deluxe’s Vice President of Investor Relations and Treasurer. Joining me on the call today are Lee Schram, Deluxe’s Chief Executive Office, 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 instructor, 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 in 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 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 this call is addressed in greater detail in today’s press release, which is posted on our investor relations website at deluxe.com/investor 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 our fourth outstanding quarter of 2012. We reported revenue at the top end of our outlook in adjusted earnings per share above the high end of our outlook. Revenue grew 6% over the prior year quarter driven by small business services revenue growth of 11% of which 3% came from the OrangeSoda acquisition. Checks and forms all performed well against our expectations and marketing solutions and other services revenues grew 26% over the prior year. Adjusted diluted earnings per share grew 14.5% over the prior year. We launched our new brand awareness campaign to help better position our products and services offerings and drive future revenue growth. We also advanced process improvements and delivered on our $50 million cost reduction commitment which generating a strong $244 million in operating cash flow for the year. We extinguished higher interest rate 2015 debt and issued new lower interest rate 2020 debt while also paying off our remaining 2012 debt in mid December. 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 fourth quarter of $0.83 which included losses of $0.07 per share from early debt retirement in the quarter, and restructuring charges of $0.05 per share. Excluding these costs, adjusted EPS from continuing operations of $0.95 exceeded the upper end of our previous outlook and was 14.5$ higher than the $0.83 reported in the fourth quarter of 2011. The restructuring charges are primarily for employee severance and infrastructure consolidations. Revenue for the quarter came in at $388 million and grew 6% over last year and 2% sequentially from last quarter. All three of our business segments performed well in spite of an estimated negative revenue impact of around $2 million to $3 million from hurricane Sandy. Small business services revenue of $254 million grew 11% versus last year on a reported basis including OrangeSoda which added nearly $8 million of revenue in the quarter. While we continue to operate in a weak environment economically, we delivered growth in marketing solutions, and other services, checks and in our online Safeguard distributor and dealer channels. Small business and services revenue also benefitted from previous price increases. Financial services revenue of $82 million was basically flat versus the fourth quarter of last year. The impact of lower check orders offset the benefits of price increases, revenue from the citizens financial group, and higher non-check services revenue. Direct checks revenue totaled $51 million which was down 7% on a year-over-year basis. Gross margin for the quarter was 64.5% of revenue which was flat with 2011. Benefits from price increases, improvements in manufacturing productivity, and delivery initiatives were offset by increased delivery and material rates, and performance base compensation expense in 2012. SG&A expense increase $10.3 million in the quarter and was 43.8%…

Thank you, Terry. I will continue my comments with the perspective on what we accomplished overall in 2012, then provide expectations for 2013 for our key revenue growth area, marketing solutions and other services, and finally, some thoughts on our brand campaign. I will then highlight progress in each of our three segments, including a perspective on what we plan to accomplish in 2013. Deluxe grew revenue in 2012 for the third consecutive year for the first time since 1996. And the 7% revenue growth rate was the highest since 1994, excluding the next [ph] acquisition. We stabilized our core check and product businesses and improve our mix of faster growing marketing solutions and other services revenues to 19% of total revenue. We acquired OrangeSoda to expand opportunities in higher growth marketing solutions and other services. We also took steps to accelerate our brand transformation with our new Work Happy campaign. We want small business owners to see Deluxe as a genuine, passionate partner who gives them everything they need so they can focus on their pursuit of doing what they love and work happy. In addition to our strong print leadership, we continue to invest in our employment brand, in digital technology, in extending sales channel reach and in our communities. Our efforts earned us awards and recognition including the Candidate Experience Award, Best in Show at Innovate [ph], corporation of the year from the Metropolitan Economic Development Association and the Jefferson Award for community service. In shared services infrastructure, we reduced cost and improve the effectiveness of the information technology, finance, human resources, real estate and legal functions. Our intense focus on cost reductions has now delivered enterprise-wide savings of $435 million since mid-2006. We exited the year with more robust and innovative products and services, solidified process,…

Yes. Ladies and gentlemen, if you wish to ask a question, please press star followed by one on your telephone key pad. If your question has been answered or you wish to withdraw your question, please press star followed by two. Press star one to begin and please stand by for your first question. And you first question comes from the line of Charlie Strauzer with CJS, please proceed sir. Charlie Strauzer – CJS Securities: Hi, good morning.

Hi, Charlie. Charlie Strauzer – CJS Securities: Thank you first of all for that thorough detail on the quarter and the kind of the outlook, I just wanted to touch base on a couple of things here if I could. When you look at some of the new initiatives on the marketing side that you’ve launched and you said you’ve gotten some very significant increases in kind of page views and things like that, what are some of the things that you’ve heard more anecdotally as to what, what are the things that are resonating more with some of these potential customers?

As far as the new campaign, Charlie? Charlie Strauzer – CJS Securities: Correct. Yes.

Yes. Clearly what we’re seeing is people that, I would argue, people that didn’t know Deluxe did as much as we do, we’re seeing. We also are seeing people that are coming to the story and might have heard of us before, but didn’t have the reach which is great, we believe for cross selling, we’re seeing that. Clearly what we’re also seeing is more in the newer spaces and services specifically I would say web services would probably be at the top of the list along with the search engine marketing and search engine optimization spaces. But we’re actually favorably surprised so far with just the number and amount in interest in the company and it’s coming through again all our channels. People are seeing the television ads, they’re hearing us on the radio, they’re seeing us on print, they’re seeing us online, and they’re coming to us through into the call centers, into the online world, we’ve even gotten comments through the banking channel, we’ve gotten comments through our distributor, our dealer and our major account channels as well. What we want out of this is at least early on, Charlie because obviously, it’s early on, is it’s starting to happen. Charlie Strauzer – CJS Securities: So Lee, what’s the next step? You’re getting some of these interest coming in, how do you then kind of capitalize more on that? Is it more kind of an outbound basis with your call centers of your partners? Kind of clarify a little bit more what’s the next step if you could.

Yes, I mean we’re early. We put money and initiatives in the past. We’ve never done as far what I would call far reach in terms of the television world so to speak. But as I mentioned in my prepared comments and I think it’s consistent with what I said in the third quarter call, we’re going to stay at this right now. It’s very early in the campaign, we clearly believe it’s starting to work for us, and starting to get us the brand recognition outside of being, as we all know, more of that check provider, and now reaching more and more into the marketing solutions and other services space. So we’re going to stay after this, we’re committed to it, we put in our guidance and we’re going to do the three burst [ph] that I talked about, and you’ll see more of it in the first half of the year, Charlie, than the second half of the year, but obviously, if it continues to work, we’ll consistently look at return on investment criteria and we’ll make decisions that are smart and we’ll keep the investment community informed as to how we see this playing out. But so far, again, it’s just amazing to be out in the community, we have some local good coverage here, it’s just people commenting on it, and just commenting very favorably. And what I would say is, interesting is, that it’s kind of what I call emotionally compelling and different from some of the competitive edge that are out there, and that was the intent when we launched this. So that’s what I can comment on at this point. Charlie Strauzer – CJS Securities: Great, thank you very much, that’s very helpful.

You’re welcome.

And your next question comes from the line of Jamie Clement with Sidoti. Please proceed. Jamie Clement – Sidoti: Lee, Terry, Jeff, good morning.

Hi, Jamie.

Hi, Jamie.

Hi, Jamie. Jamie Clement – Sidoti: Lee, first, a major question here. You started 2012 as well as the previous couple of years looking for a 7% to 8% organic decline in check usage, number is actually, started off the year closer to 5%, you adjusted your guidance to 5% to 6% through the year, and now, you’re still looking for 5% to 6% for the upcoming 12 months and I believe on the last conference call, you said, you all were still doing some internal work and then obviously a forward projection would be upcoming in this conference call which you gave. What have you all learned this year to bring that assumption down from the 7% to 8% to that 5% to 6% range? Like, do you think this is a long term sustainable range, is it something maybe related to the housing recovery? Just a little bit more color on that switch because that 7% to 8% was something you were sticking two or three years.

Yes, Jamie, we’ve done a lot of work here and I would argue that we have to stay at this and stay paranoid with it every day, and we do. And what do I mean by that? We’re constantly watching the trends that are out there and for us, it’s working with our financial institutions and seeing where they see trends and how they are working, and we’re working with the consumer. It also is looking at metrics around housing stock, and electronification, mobility. I’m not going to give you specific formulas that we use other than we’ve gotten good at it because I know that my competitors are out listening to this call. But I believe we are getting better and better at marker around these things. But I will tell you Jamie, we got to stay on top of this because those things can move, and when they move, we believe they can move those percentages or decline around. But we wouldn’t have guided right now, 5% to 6% declines for this year, if we weren’t comfortable that the current markers that we see for that are in that range. They are right now, and because of that, that’s where we believe we should guide. And if they change up or down, meaning if they get better than that, and lower rate of decline, or slip back, we will again keep the investment community informed of that. But right now, we’re as strong as we ever have been at improving how we look at this. But again, I’m as paranoid as ever, and I think I will stay that way. Jamie Clement – Sidoti: Okay, that’s very fair. I don’t know Lee, whether you want to take this, or it was really during Terry’s prepared remarks. I was a little bit confused about some of the commentary around the outlook with respect to price competition versus price increases. I believe there were price increases mentioned in the small business services sector, and then both price increases as well as price pressure referenced in financial services. I could have that backwards. If I’m wrong about that, please correct me, but where are you seeing the price improvements and then where are you seeing the price pressure?

Jamie, I’ll take that one. You are absolutely right. We do have price increases that we’ve actually already put into the market place in small business services. And we also did put a price increase into our list price for financial services that also went in just early now in this first quarter of 2013. And the pricing pressure that we also referenced related to financial services, that really has to do with when we’re renewing contracts. It’s really the discounts that we were having to absorb as we renew contracts and as we bring on new business, that discount that provides kind of a counter pressure to those price increases that we did. Jamie Clement – Sidoti: Okay, to the extent that you continue to renew contracts ahead of time, and is that still a strategy here? I mean are you still actively looking to renew these contracts before they gets or update [ph]?

Yes, absolutely, as much as we can. Jamie Clement – Sidoti: Okay, okay. So all right, well, thanks very much for the time, I appreciate it.

Thanks, Jamie.

Thanks, Jamie.

Ladies and gentlemen, (Operator Instructions). And your next question comes from the line of Wayne Archambo of Monarch. Please proceed, sir. Wayne Archambo – Monarch Partners: Yes. Wayne Archambo, Monarch Partners. Could you just give us some assessment of what the OrangeSoda acquisition has met your expectations, plusses and minuses? Just give us some reading of what your experience has been there.

Yes. We are really pleased so far. We’ve owned them a little over half a year now. We’ve actually given markers here in revenue the last two quarters. I think both quarters are in the $8 million range. It’s pretty much right where we expect it to be, maybe a little bit better on the revenue side. But culturally, it’s everything we thought they were going to do for us. They are teaching us how to reach customers and get customers found online at a better way. So they are bringing us customers that we then can sell other products and services to. The other nice thing about the deal when we mentioned it early on when acquired it is they also have some of the same partners in the relationships that we have. And so we’ve been able to get stronger around those and more holistic with offering the products and services through those partners. So I would just tell you that so far we are extremely pleased with the deal. Wayne Archambo – Monarch Partners: And do you find in the market place, there are other OrangeSoda type transactions out there that are for sale. Is that one-off? Is it an active M&A market out there?

I will stay consistent. I’ve said this on many calls before. I look with the team that I have and I have some outside help constantly at partnerships and potential inquisitive opportunities. I mentioned in my prepared comments that we will continue to look at small to medium-sized opportunities for acquisition. Yes, primarily, in the marketing solutions and other services space and more specifically in that categorization of web services. So I think I would just choose right now to leave it there. Wayne Archambo – Monarch Partners: Okay, great. Thank you.

You’re welcome.

And your next question comes from the line of Ben Glaze with Apollo. Please, proceed, sir. Ben Glaze – Apollo: Hey, guys. Just a quick question, kind of a follow-up to Jaime’s. Do you always think about visibility into the business, like giving full year guidance here? And you kind of mentioned that if you’re equation changes as the year goes on, maybe you’ll adjust up or downward. I’m just trying to think about how much confidence we should put behind that in kind of what the visibility you have into contractual revenues it might be?

As far as the rate of decline on checks, again, Ben? Ben Glaze – Apollo: Yes. So I guess, like the key drivers or your assumption, the rate of decline on checks. I’m curious like, I guess, is there a way to have much visibility into the business because –

Yes. I think that the way to think about it, Ben is we made some comments in the prepared comments that between locking in all the big deals for the year. So that should give you, the investor some comfort that we have that run rate established for the year. We have to lock in our community bank contracts that come up every year. If we do at the rates above the 90% that I talked about and that it down to what the consumer is going to write checks for. But if you add up all those pieces, I think the positive news is we’re trying to take the variables that we can control off the table as best as we can. I think we’ve done. And then we’re at the mercy of what consumers are writing checks for and obviously, they write more checks when the economy is better, and then down to housing stock, electronification, mobility, and switches and payment methods and all that. But again, the best I can do for you is I think we were thorough on our assessment of this. We wouldn’t have guided to this if we didn’t expect it to be in this range right now. Again, Ben, I think that’s the best we could do at this point. Ben Glaze – Apollo: That’s very helpful. The other question I have is just if you could help us thinking more about – and I guess, we’re kind of thinking about what you do want to disclose. But some of the growth rates are so impressive in the marketing and other services segments and sub-segments, just to help us think about like the incremental margins on revenue relative to kind of the traditional checks business which appears to be very incremental margins.

Yes. Let me start with this. We’re consistently getting pushed for how do I get more and more comfort to the investor for the growth and how can hit mid teams organic growth and revenue here. And we gave you some markers today that I think are important. We communicated that we had the best month that we’ve ever seen since we acquire PSPrint in December. We gave you markers around the number of web hosting customers that we ended the year which was bigger and was our biggest lift in any quarter last year, the fourth quarter. We also gave you a marker for the end of this year. And we gave you another marker that said – and I’ve been mentioning on calls. We gave you a number actually today of $15 million of business that we’ve already secured that will roll out. And the timing of that is dependent on when telcos and the media and other major accounts and between the web and search engine marketing optimization world is roll out. But those are firm deals and depending on how well we time those of working with them, all those give us confidence that we can get to that, the growth rates that we put out there. And again, we wouldn’t have done it if we didn’t have confidence right now that that’s the best way to guide the investor where we are. Ben Glaze – Apollo: Got it. Thanks.

You’re welcome.

Your next question comes from the line of Paul Karos with Whitebox. Please, proceed, sir. Paul Karos – Whitebox: A quick question for you. Would you mind with the marketing solutions area, just giving us kind of the landscape of the competition? What are the type of companies you compete against and how do you see a Deluxe fitting into that landscape?

It depends on the category. And you have to decompose each one of them. So we have various players in the financial services space that we compete. They’re all smaller. I’m not going to mention all those on the call here, give that out but there are – Paul Karos – Whitebox: No, not the names, just general characterizations would be great.

Yes. There are smaller players that are in the profitability models and metrics. There are smaller players that are in direct marketing analytic spaces. There are lots of players in the fraud and security, and risk management areas as well that we compete with. But there’s no one big player that we compete against there. In the web services space, I’ll mention a few companies that are out there. Obviously, Web.com, GoDaddy are players in the space. There are the constant contacts and the email marketing space, Vistaprint, and so on and so forth. But there is no one big player that dominates the market in this space. And then obviously, there’s a lot of players in the marketing space. The smaller companies that do everything from promo and apparel, to larger web-to-print companies. Again, Vistaprint, probably, the most recognized one out there but nobody dominates. There is a lot of market opportunity and there’s a lot of fragmentation in the market and that’s actually something that we believe plays to our favor. And if we pull and keep improving, getting the brand more recognized for Deluxe, we think that bodes well for us and give us an opportunity to work with the customers we have and then get new customers. Paul Karos – Whitebox: So as usual, there’s a lot of fragmentation that the risk is obviously that people get really aggressive on pricing. Do you view the fragmentation no more as a positive in the market share gain sense of it or how do those offset each other?

Yes. I view is real positive. No one dominates and controls price and I just view it as a real opportunity for us. Paul Karos – Whitebox: Great. Thanks.

Welcome.

And there are no further questions at this time. This concludes you Q&A portion. I would like now to turn the call back over to Lee Schram. Please, proceed, sir.

Yes. I just want to again, thank everybody for participating and for the questions today. And again, hats off. I know there are a lot of Deluxers out there listening in on the call as well. And again, I just want to commend you for a great year and again, we did it. We’ve got to get out and earn our keep and do it again in 2013. And again, as I mentioned earlier, it’s important we get off to great start. So we’re going to get back to work, roll up our sleeves and get going and we look forward to providing another positive progress report on our next call, and I’ll turn it over to Jeff.

Thank you, Lee. This is reminder that a replay of this call will be available until February 7th by dialing 888-286-8010. When instructed, provide the access code, 93002809. The accompanying slides are archived on our investor relations website at deluxe.com/investor. Again, thank you for joining us. Have a great afternoon.

Thank you, ladies and gentlemen. This does concludes today’s presentation, you may now disconnect. Have a great day. Bye.