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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 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 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. Lee Schram Thank you Jeff and good morning everyone. We had another outstanding quarter following an outstanding first quarter performance. We are well positioned as we enter the second half of the year, to grow revenue for the year in the mid-single digits, despite the continued sluggish economic environment. We reported second quarter revenue and adjusted earnings per share well above our outlook. Revenue grew 7% over the prior year, driven by Small Business Services revenue growth of 15%, of which 5% came from the PsPrint and OrangeSoda acquisitions. This quarterly growth rate matched the first quarter of 2012 for the strongest we have reported since we acquired NEBS in 2004. Checks and Forms both performed better than our expectations, and Marketing Solutions and Other Service’s revenue grew 30% over the prior year.
Adjust diluted EPS grew 13% over a strong prior year. We also generated solid operating cash flow, we’ve not drawn on our credit facility during the quarter, and we increased our cash position $16 million from last December.Encouragingly, we continued to see more stabilizations than expected in secular check decline rates with financial institution consumer declines less than 5% in the quarter, which is the second quarter in a row we have seen significantly lower decline rates. We enhanced our marketing solutions and Other Services offers and capabilities with the acquisition of OrangeSoda. We also invested more in brand awareness to help better position our marketing solutions and Other Services offering, 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 and next steps, but first, Terry will cover our financial performance. Terry Peterson Thanks, Lee. Earlier today, we reported diluted earnings per share for the second quarter of $0.82, which included restructuring and transaction related cost of $0.03 per share. Excluding these costs, adjusted EPS of $0.85 was well above the upper end of our outlook, and 13% higher than the $0.75 reported in the second quarter of 2011. Strong revenues and favorable product mix drove better than expected EPS performance, and more than offset an increase in variable compensation expense. The restructuring charges are primarily for employee severance and infrastructure consolidations, while the transaction cost related to the OrangeSoda acquisition. Revenue for the quarter came in at $371 million, which was well above the range of our outlook, and up 7% from 2011. All three of our business segments performed well. Small Business Services revenue of $233 million, included $10.5 million from the PsPrint and OrangeSoda acquisitions, and grew 15% versus last year on a reported basis.
While we continued 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.Read the rest of this transcript for free on seekingalpha.com