Deluxe Corporation Q2 2009 Earnings Transcript

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2009-07-23 14:48:24.0

Tags: Volume, Sales Strategy, Sales, Seeking Alpha, Deluxe Corp.

Question-and-Answer Session

Operator

(Operator Instructions). Our first question comes from the line of Charlie Strauzer, with CJS Securities. Please proceed.

Charlie Strauzer - CJS Securities

Hi, good morning.

Lee Schram

Hi, Charlie. Good morning.

Charlie Strauzer - CJS Securities

Hey, just a couple of quick questions. One is, when you talk about 6% decline of checks, what are you kind of assuming for kind of volume, underlying those numbers there?

Richard Greene

That is the expected unit decline, Charlie, is the 6 to 7%.

Charlie Strauzer - CJS Securities

Got you. So I was sure of decline -- that's a volume decline number.

Richard Greene

That is the volume.

Lee Schram

Order volume decline the way we look at it.

Charlie Strauzer - CJS Securities

Got it. Okay. And how can we extrapolate the rate and sales decline number for when we kind of look at those per segment there?

Lee Schram

The best way to look at it, you got to remember, timing all plays into this and early in the year we announced that we're going to have price increase and then, now we're basically telling you, that's going to start here in the third quarter. So you got to look at timing of all that and also you got to look at mix of products.

So, the best way I can tell to look at, the way to look at is, we expect to see, single digit decline as year collectively when you add all these pieces together.

Charlie Strauzer - CJS Securities

Got it. Okay, great. And then, if you can talk a little bit more about the competitive plans in some of the upcoming re-bids from -- potentially from your competitors. Anything changing there?

Lee Schram

No, we still see as I mentioned, in my prepared comments, we saw our first RFP that we actually responded on and one thing you got to remember about these, Charlie, as they take a long time, they take a long time to review and they take a long time to go through their process.

So, that one is not settled in the side as yet and we believe there's other one's that will still come out yet this year. And then we also believe there will more that will come in the in 2010 timeframe.

Charlie Strauzer - CJS Securities

Got it. And thank you very much.

Lee Schram

Welcome, Charlie.

 

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