As part of a cost cutting strategy, check direct marketer Deluxe Corp. will close its Anniston, Alabama facility, which employs over 200.
The facility served customers of the St. Paul, MN-based company’s Designer Check’s brand. Work handled at the facility is expected to be transitioned to a Colorado Springs location by the end of the year. The move is a reaction to higher ad costs and soft response rates, according to a Deluxe statement.
For the first quarter ending March 31, Deluxe. posted net income of $47.7 million, compared to $50.0 million during the same quarter in 2003.
Revenue was $308.8 million in the first quarter, versus $317.2 million during the same quarter a year ago. The decrease in revenue was due to a 1.8% decline in unit volume and a 0.9% decline in revenue per unit, according to the St. Paul, MN-based company.
Operating income was $81.8 million in the first quarter, compared to $84.7 million last year. Operating margin was 26.5% of revenue, compared to 26.7% last year.
Revenue for Deluxe’s Direct Check business segment, which sells checks and related products via direct mail and online, was $77.1 million for the quarter, compared to $80.8 million in 2003. Operating income for the quarter decreased to $21.5 million, from $31.3 million in 2003. The company attributed the decline to lower unit volume and higher advertising costs.
The company’s Business Services segment, which sells to small businesses and home offices direct and through alliances and financial institution referrals, posted revenue of $64.9 million for the quarter, up from $59.1 million in 2003. Operating income for the quarter increased to $21.6 million, from $16.2 million in 2003.
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