CBE - DLX Completed

Training The Street, Inc.
4/15/2012 5:19 AM
Company Name
Deluxe Corp.
cell F3 is named "name"
Sub-header
Dollars in Millions, except per share
cell F5 is named "subheader"
Last Fiscal Year End

Days Assumption
COPYRIGHT 2004 by Training The Street, Inc
12/31/2002
cell is named "FYE"
365
cell is named "days"
For training purposes only!

4/15/2012 5:19 AM
cell F3 is named "name"

cell F5 is named "subheader"
68823686.xls.ms_office
4/15/2012 5:19 AM
Projected Income Statement for Deluxe Corp.

Historical Year Ending Dec. 31,
2000
2001
2002
Sales
Cost of Sales (excluding Depreciation) (4)
Gross Profit
Projected Year Ending Dec. 31,

2003
2004
2005
2006
2002 - 2007
CAGR
2007
$1,262.7
419.6
843.1
$1,278.4
422.0
856.4
$1,284.0
411.2
872.7
$1,289.1
412.5
876.6
$1,294.3
403.8
890.5
$1,299.5
395.0
904.4
$1,304.7
386.2
918.5
$1,309.9
377.2
932.6
0.4%
SG&A Expense (excluding Amortization) (1)(4)

EBITDA
490.7
352.4
474.2
382.2
467.8
404.9
464.2
412.4
459.6
430.9
454.9
449.5
450.2
468.2
445.5
487.1
3.8%
Depreciation
Amortization (2)
EBIT
33.4
30.0
289.0
30.6
37.2
314.4
24.0
34.3
346.7
23.0
34.6
354.8
23.6
30.9
376.4
24.1
28.2
397.2
24.7
23.4
420.2
25.2
17.3
444.6
5.1%
Other Expense / (Income) (3)

Interest Expense
Interest (Income)
Pretax Income
(3.6)
11.4
(4.8)
285.9
1.2
5.6
(2.4)
310.0
(0.2)
5.1
(0.7)
342.5
0.0
16.0
(2.1)
340.9
0.0
16.0
(3.8)
364.3
0.0
16.0
(5.9)
387.1
0.0
16.0
(8.4)
412.5
0.0
16.0
(11.2)
439.7
5.1%
1.3%
Income Taxes
Net Income
108.4
$177.5
116.0
$193.9
127.1
$215.4
127.8
$213.0
136.6
$227.7
145.2
$241.9
154.7
$257.8
164.9
$274.8
5.0%
Diluted Weighted Average Shares in Millions
72.420
69.115
63.747
62.370
62.620
63.370
64.620
66.370
0.8%
$2.45
$2.81
$3.38
$3.64
$3.82
$3.99
$4.14
4.1%
66.8%
38.9%
(0.3%)
27.9%
22.9%
14.1%
67.0%
37.1%
0.1%
29.9%
24.6%
15.2%
68.0%
36.4%
(0.0%)
31.5%
27.0%
16.8%
68.0%
36.0%
0.0%
32.0%
27.5%
16.5%
68.8%
35.5%
0.0%
33.3%
29.1%
17.6%
69.6%
35.0%
0.0%
34.6%
30.6%
18.6%
70.4%
34.5%
0.0%
35.9%
32.2%
19.8%
71.2%
34.0%
0.0%
37.2%
33.9%
21.0%
1.2%
8.4%
8.8%
9.2%
14.5%
0.4%
6.0%
10.3%
11.1%
20.4%
0.4%
1.8%
2.3%
(1.1%)
1.1%
0.4%
4.5%
6.1%
6.9%
6.4%
0.4%
4.3%
5.5%
6.3%
5.0%
0.4%
4.2%
5.8%
6.6%
4.5%
0.4%
4.0%
5.8%
6.6%
3.8%
37.4%
37.1%
37.5%
37.5%
37.5%
37.5%
37.5%
Earnings Per Share

Margins
Gross Margin
SG&A Expense as % of Sales
Other Expense / (Income) as % of Sales
EBITDA Margin
EBIT Margin
Net Income Margin
Growth Rate Analysis
Sales Growth Rate
EBITDA Growth Rate
EBIT Growth Rate
Net Income Growth Rate
EPS Growth Rate
Effective Tax Rate
37.9%
$3.42
3.45
(1) 2000 results exclude the $2.4 million reversal of the restructuring charge associated with the scaling back and repositioning the PlaidMoon.com project.
(2) Historicals exclude amortization of goodwill and indefinite life intangibles, as per SFAS 142.
(3) Includes the realized gains and losses and permanent declines in value of marketable securities.
2000, 2001 and 2002 results exclude asset impairment losses of $9.7, $2.062 and $0.297 million, respectively.
(4) 2001 results exclude restructuring charges of $1.2 million in COGS and $3.0 million in SG&A.
2002 results exclude restructuring charges of $0.6 million in COGS and $0.9 million in SG&A.
4/15/2012 5:19 AM
Projected Balance Sheet for Deluxe Corp.

2000
2001
2002
2003

2004
2005
2006
2007
Cash
Accounts Receivable, net
Inventories
Other Current Assets
Total Current Assets:
$99.2
46.0
23.1
19.4
187.8
$9.6
37.7
22.3
14.4
84.0
$124.9
32.9
20.3
21.6
199.6
$288.4
33.6
20.3
21.9
364.2
$480.4
33.7
19.9
22.0
556.0
$706.7
33.8
19.5
22.1
782.1
$968.4
34.0
19.0
22.2
1,043.6
$1,266.2
34.1
18.6
22.3
1,341.1
PP&E, net
Intangibles, net
Goodwill
Long-Term Investment
Other Non-Current Assets
Total Assets:
174.0
134.4
88.4
35.6
36.2
$656.3
151.1
114.9
82.2
37.7
67.9
$537.7
140.0
106.0
82.2
40.2
100.9
$669.0
142.0
91.4
82.2
40.2
100.9
$821.0
143.5
80.6
82.2
40.2
100.9
$1,003.3
144.3
72.4
82.2
40.2
100.9
$1,222.2
144.7
69.0
82.2
40.2
100.9
$1,480.5
144.5
71.6
82.2
40.2
100.9
$1,780.5
Accounts Payable
Accrued Liabilities
Other Current Liabilities
Total Current Liabilities:
$44.7
148.5
0.0
193.2
$52.8
162.9
0.0
215.7
$57.9
155.3
0.0
213.2
$57.6
155.9
0.0
213.6
$56.4
152.6
0.0
209.1
$55.2
149.3
0.0
204.5
$54.0
146.0
0.0
199.9
$52.7
142.6
0.0
195.3
Revolving Credit Facility

Long-Term Debt (Including Capital Leases)
Deferred Income Taxes
Other Long-Term Liabilities
Total Liabilities:
0.0
110.9
51.1
38.3
393.5
150.0
11.5
44.9
37.0
459.1
0.0
308.2
54.5
28.8
604.7
0.0
308.2
54.5
28.8
605.1
0.0
308.2
54.5
28.8
600.6
0.0
308.2
54.5
28.8
596.0
0.0
308.2
54.5
28.8
591.4
0.0
308.2
54.5
28.8
586.8
Total Equity:
262.8
78.6
64.3
215.9
402.8
626.2
889.1
1,193.7
$656.3
$537.7
$669.0
$821.0
$1,003.3
$1,222.2
$1,480.5
$1,780.5
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
Total Debt
Total Book Capitalization
Total Debt / Total Book Capitalization
$110.9
373.7
29.7%
$161.5
240.1
67.3%
$308.2
372.5
82.7%
$308.2
524.1
58.8%
$308.2
711.0
43.3%
$308.2
934.4
33.0%
$308.2
1,197.3
25.7%
$308.2
1,501.9
20.5%
EBITDA
Total Debt / EBITDA
Interest Expense
EBITDA Coverage
$352.4
0.3x
$11.4
30.8x
$382.2
0.4x
$5.6
68.5x
$404.9
0.8x
$5.1
79.7x
$412.4
0.7x
$16.0
25.7x
$430.9
0.7x
$16.0
26.9x
$449.5
0.7x
$16.0
28.0x
$468.2
0.7x
$16.0
29.2x
$487.1
0.6x
$16.0
30.4x
Total Liabilities and Equity:

Check
4/15/2012 5:19 AM
Projected Cash Flow Statement for Deluxe Corp.

2003
Operating Activities
Net Income
Depreciation
Amortization
Change in Working Capital
Change in Other Long-Term Assets & Liabilities
Cash Flow from Operating Activities:

2004
2005
2006
2007
$213.0
23.0
34.6
(0.6)
0.0
270.0
$227.7
23.6
30.9
(4.3)
0.0
277.8
$241.9
24.1
28.2
(4.3)
0.0
289.9
$257.8
24.7
23.4
(4.4)
0.0
301.5
$274.8
25.2
17.3
(4.4)
0.0
313.0
Investing Activities
Capital Expenditures
Additions to Intangibles
Cash Flow from Investing Activities:
(25.0)
(20.0)
(45.0)
(25.0)
(20.0)
(45.0)
(25.0)
(20.0)
(45.0)
(25.0)
(20.0)
(45.0)
(25.0)
(20.0)
(45.0)
CASH FLOW AVAILABLE FOR FINANCING ACTIVITIES
225.0
232.8
244.9
256.5
268.0
Financing Activities
Proceeds from / (Repayment of) Revolver
Proceeds from Issuance of Long-Term Debt
(Repayment of) Long-Term Debt
Proceeds from / (Repurchase of) Equity
Dividends
Option Proceeds
Cash Flow from Financing Activities:
0.0
0.0
0.0
0.0
(61.4)
0.0
(61.4)
0.0
0.0
0.0
20.9
(61.7)
0.0
(40.8)
0.0
0.0
0.0
43.9
(62.4)
0.0
(18.5)
0.0
0.0
0.0
68.8
(63.7)
0.0
5.1
0.0
0.0
0.0
95.2
(65.4)
0.0
29.8
0.0
0.0
0.0
0.0
0.0
163.5
124.9
$288.4
192.0
288.4
$480.4
226.4
480.4
$706.7
261.7
706.7
$968.4
297.8
968.4
$1,266.2
Effects of Exchange Rates on Cash

Net Change in Cash
Beginning Cash Balance
Ending Cash Balance
4/15/2012 5:19 AM
Projected Working Capital Schedule for Deluxe Corp.

2000
2001
2002
Sales
Cost of Sales (excluding Depreciation)
Working Capital Balances
Inventories
Total Non-Cash Current Assets:
Accounts Payable
Accrued Liabilities
Total Non-Debt Current Liabilities:
NET WORKING CAPITAL / (DEFICIT)
Accounts Payable (Days outstanding)

Accrued Liabilities as % of Cost of Sales
Other Current Liabilities as % of Cost of Sales
Cash Flows by Individual Accounts
Inventories
Accounts Payable
Accrued Liabilities
(Increase)/Decrease in Working Capital

2004
2005
2006
2007
$1,262.7
419.6
$1,278.4
422.0
$1,284.0
411.2
$1,289.1
412.5
$1,294.3
403.8
$1,299.5
395.0
$1,304.7
386.2
$1,309.9
377.2
$46.0
23.1
19.4
$88.6
$37.7
22.3
14.4
$74.4
$32.9
20.3
21.6
$74.8
$33.6
20.3
21.9
$75.8
$33.7
19.9
22.0
$75.6
$33.8
19.5
22.1
$75.4
$34.0
19.0
22.2
$75.2
$34.1
18.6
22.3
$75.0
$44.7
148.5
0.0
$193.2
$52.8
162.9
0.0
$215.7
$57.9
155.3
0.0
$213.2
$57.6
155.9
0.0
$213.6
$56.4
152.6
0.0
$209.1
$55.2
149.3
0.0
$204.5
$54.0
146.0
0.0
$199.9
$52.7
142.6
0.0
$195.3
($104.6)
($141.3)
($138.4)
($137.8)
($133.5)
($129.1)
($124.8)
($120.3)
$36.7
($3.0)
($0.6)
($4.3)
($4.3)
($4.4)
($4.4)
13.3
20.1
1.5%
10.8
19.3
1.1%
9.4
18.0
1.7%
9.5
18.0
1.7%
9.5
18.0
1.7%
9.5
18.0
1.7%
9.5
18.0
1.7%
9.5
18.0
1.7%
38.9
35.4%
0.0%
45.7
38.6%
0.0%
51.4
37.8%
0.0%
51.0
37.8%
0.0%
51.0
37.8%
0.0%
51.0
37.8%
0.0%
51.0
37.8%
0.0%
51.0
37.8%
0.0%

Ratios and Assumptions
Accounts Receivable, net (Collection period in days)
Inventories (Days outstanding)
Other Current Assets as % of Sales
2003
$8.3
0.9
5.0
8.1
14.4
0.0
$36.7
$4.8
2.0
(7.1)
5.0
(7.6)
0.0
($3.0)
($0.6)
(0.1)
(0.3)
(0.2)
0.6
0.0
($0.6)
($0.1)
0.4
(0.1)
(1.2)
(3.3)
0.0
($4.3)
($0.1)
0.4
(0.1)
(1.2)
(3.3)
0.0
($4.3)
($0.1)
0.4
(0.1)
(1.2)
(3.3)
0.0
($4.4)
($0.1)
0.4
(0.1)
(1.2)
(3.4)
0.0
($4.4)
4/15/2012 5:19 AM
Projected Depreciation Schedule for Deluxe Corp.

2000
2001
2002
Sales
Capital Expenditures as % of Sales
$1,262.7
9.8
0.8%
Beginning Net PP&E

(Depreciation Expense)
(Asset Sales and Write-Offs)
Ending Net PP&E
Existing PP&E, net

Land
Depreciable PP&E, net
Total Depreciation Expense

Depreciation as % of PP&E, net
Depreciation as % of CapEx
$1,284.0
14.2
1.1%
Historicals not needed
$174.0
$140.0
(32.3)
$107.8
2003
2004
2005
2006
2007
$1,278.4
10.7
0.8%
CapEx
$25.0
25.0
25.0
25.0
25.0
$151.1
$140.0
2003
$1,289.1
25.0
1.9%
$140.0
25.0
(23.0)
0.0
$142.0

2004
2005
2006
$1,294.3
25.0
1.9%
$142.0
25.0
(23.6)
0.0
$143.5
$1,299.5
25.0
1.9%
$143.5
25.0
(24.1)
0.0
$144.3
$1,304.7
25.0
1.9%
$144.3
25.0
(24.7)
0.0
$144.7
2007
$1,309.9
25.0
1.9%
$144.7
25.0
(25.2)
0.0
$144.5
Depreciation Expense Projections

Useful Life
9.0 years
Useful Life
8.5 years
8.5
8.5
8.5
8.5
From Exiting PP&E:
$21.6
$19.2
$16.8
$14.4
$12.0
From CapEx:
$1.5
$2.9
1.5
$2.9
2.9
1.5
$2.9
2.9
2.9
1.5
$2.9
2.9
2.9
2.9
1.5
$33.4
$30.6
$24.0
$23.0
$23.6
$24.1
$24.7
$25.2
19.2%
341.3%
20.3%
285.1%
17.1%
169.2%
16.2%
92.1%
16.4%
94.3%
16.7%
96.5%
17.0%
98.6%
17.4%
100.8%
4/15/2012 5:19 AM
Projected Amortization of Intangibles Schedule for Deluxe Corp.

2000
2001
2002
Sales
Additions as % of Sales
$1,262.7
38.7
3.1%
Beginning Intangibles
(Amortization Expense)
(Write-Offs)
Ending Intangibles
$1,278.4
18.0
1.4%
$1,284.0
26.6
2.1%
$134.4
$114.9
$106.0
2003
$1,289.1
20.0
1.6%
$106.0
20.0
(34.6)
0.0
$91.4

2004
2005
2006
$1,294.3
20.0
1.5%
$91.4
20.0
(30.9)
0.0
$80.6
$1,299.5
20.0
1.5%
$80.6
20.0
(28.2)
0.0
$72.4
$1,304.7
20.0
1.5%
$72.4
20.0
(23.4)
0.0
$69.0
2007
$1,309.9
20.0
1.5%
$69.0
20.0
(17.3)
0.0
$71.6
Amortization Expense Projections

$106.0
Useful Life
6.0 years
Additions
$20.0
20.0
20.0
20.0
20.0
Useful Life
6.0 years
6.0
6.0
6.0
6.0
Existing Intangibles, net
2003
2004
2005
2006
2007
Total Amortization Expense
Amortization as % of Intangibles, net
From Existing:
$32.9
$25.9
$19.8
$11.8
$2.3
From Additions:
$1.7
$3.3
1.7
$3.3
3.3
1.7
$3.3
3.3
3.3
1.7
$3.3
3.3
3.3
3.3
1.7
$30.0
$37.2
$34.3
$34.6
$30.9
$28.2
$23.4
$17.3
22.3%
32.4%
32.3%
37.8%
38.3%
38.9%
34.0%
24.2%
4/15/2012 5:19 AM
Projected Other Long-Term Items Schedule for Deluxe Corp.

2000
2001
2002
2003

2004
2005
2006
2007
Assets
Other Non-Current Assets
Total Other Long-Term Assets:
(Increase)/Decrease in Other Assets:
$35.6
36.2
71.8
$37.7
67.9
105.6
(33.8)
$40.2
100.9
141.1
(35.5)
$40.2
100.9
141.1
0.0
$40.2
100.9
141.1
0.0
$40.2
100.9
141.1
0.0
$40.2
100.9
141.1
0.0
$40.2
100.9
141.1
0.0
Liabilities
Other Long-Term Liabilities
Total Other Long-Term Liabilities:
Increase/(Decrease) in Other Liabilities:
$51.1
38.3
89.4
$44.9
37.0
81.9
(7.5)
$54.5
28.8
83.3
1.4
$54.5
28.8
83.3
0.0
$54.5
28.8
83.3
0.0
$54.5
28.8
83.3
0.0
$54.5
28.8
83.3
0.0
$54.5
28.8
83.3
0.0
($41.3)
($34.1)
$0.0
$0.0
$0.0
$0.0
$0.0
Change in Other Long-Term Assets and Liabilities
4/15/2012 5:19 AM
Projected Shareholders' Equity Schedule for Deluxe Corp.

2000
2001
2002
Beginning Equity Balance
Net Income
Issuance / (Repurchase of) Equity
Dividends Paid
Option Proceeds
Ending Equity Balance
Share Repurchase Assumptions
Current Year EPS
Assumed Current Year EPS Multiple
Projected Share Price
Shares Repurchased - millions
$ Amount Repurchased
New Shares from Exercised Options
New Shares Issued from Options - millions
Average Strike Price
$ Received - millions
Dividend Assumptions
Total Dividends Paid
Net Income
Dividend Payout Ratio
Average Basic Shares
Dividend Per Share (Average Basic)
$78.6
2007
$64.3
$215.9
227.7
20.9
(61.7)
0.0
0.0
$402.8
$402.8
241.9
43.9
(62.4)
0.0
0.0
$626.2
$626.2
$889.1
257.8
274.8
68.8
95.2
(63.7)
(65.4)
0.0
0.0
0.0
0.0
$889.1 $1,193.7
$3.42
11.5x
$39.28
0.000
$0.0
$3.64
11.5x
$41.81
(0.500)
($20.9)
$3.82
11.5x
$43.90
(1.000)
($43.9)
$3.99
11.5x
$45.88
(1.500)
($68.8)
$4.14
11.5x
$47.62
(2.000)
($95.2)
0.000
$24.17
$0.0
0.000
$24.17
$0.0
0.000
$24.17
$0.0
0.000
$24.17
$0.0
0.000
$24.17
$0.0
$61.4
$213.0
28.8%
61.446
$1.00
$61.7
$227.7
27.1%
61.696
$1.00
$62.4
$241.9
25.8%
62.446
$1.00
$63.7
$257.8
24.7%
63.696
$1.00
$65.4
$274.8
23.8%
65.446
$1.00
0.000
$0.0
11.332
$345.4
3.898
$172.8
0.000
2.679
1.151
$8.1
$68.7
$30.9
$107.2
$177.5
60.4%
$101.8
$193.9
52.5%
$92.9
$215.4
43.1%
$1.48
$1.48
$1.48

2004
2005
2006
$64.3
213.0
0.0
(61.4)
0.0
0.0
$215.9
$262.8
2003
4/15/2012 5:19 AM
Shares Outstanding Table for Deluxe Corp.

2000
2001
2002
Beginning Balance - Basic (actual)
Shares Issued
Shares Repurchased
Ending Balance - Basic (actual)
72.555
64.102
Average Basic Shares

Effects of Options
Average Diluted Shares
72.324
0.096
72.420
68.441
0.674
69.115

2004
2005
2006
2007
61.446
61.446
0.000
0.000
61.446
61.446
0.000
0.500
61.946
61.946
0.000
1.000
62.946
62.946
0.000
1.500
64.446
64.446
0.000
2.000
66.446
62.823
0.924
63.747
61.446
0.924
62.370
61.696
0.924
62.620
62.446
0.924
63.370
63.696
0.924
64.620
65.446
0.924
66.370
2003
4/15/2012 5:19 AM
Projected Debt and Interest Schedule for Deluxe Corp.

2000
2001
2002
Cash Flow Available for Financing Activities
Proceeds from / (Repurchase of) Equity
Dividends
Option Proceeds
Plus: Beginning Cash Balance
Less: Minimum Cash Balance
Cash Available for Debt Repayment
Long-Term Debt Issuance
Long-Term Debt (Repayments)
Cash Available for Revolving Credit Facility
Beginning Balance
Discretionary (Paydown) / Borrowings
Ending Balance
Beginning Balance
Issuance
(Repayment / Amortization)
Ending Balance
2003
$225.0
0.0
(61.4)
0.0
0.0
124.9
(125.0)
$163.4
0.0
0.0
$163.4
$0.0
$110.9
$232.8
20.9
(61.7)
0.0
0.0
288.4
(125.0)
$355.4
0.0
0.0
$355.4
$244.9
43.9
(62.4)
0.0
0.0
480.4
(125.0)
$581.7
0.0
0.0
$581.7
2007
$256.5
$268.0
68.8
95.2
(63.7)
(65.4)
0.0
0.0
0.0
0.0
706.7
968.4
(125.0)
(125.0)
$843.4 $1,141.2
0.0
0.0
0.0
0.0
$843.4 $1,141.2
$0.0
$0.0
0.0
$0.0
$0.0
0.0
$0.0
$0.0
0.0
$0.0
$0.0
0.0
$0.0
$0.0
0.0
$0.0
$308.2
$308.2
0.0
0.0
$308.2
$308.2
0.0
0.0
$308.2
$308.2
0.0
0.0
$308.2
$308.2
0.0
0.0
$308.2
$308.2
0.0
0.0
$308.2
$150.0
$11.5

2004
2005
2006
Average Balances
Interest Rate
Interest Expense
$0.0
4.5%
$0.0
$0.0
4.5%
$0.0
$0.0
4.5%
$0.0
$0.0
4.5%
$0.0
$0.0
4.5%
$0.0
Average Balances
Interest Rate
Interest Expense
$308.2
5.2%
$16.0
$308.2
5.2%
$16.0
$308.2
5.2%
$16.0
$308.2
5.2%
$16.0
$308.2
5.2%
$16.0
$16.0
$16.0
$16.0
$16.0
$16.0
$206.6
1.0%
($2.1)
$384.4
1.0%
($3.8)
$593.6
1.0%
($5.9)
Total Interest Expense

Cash Balances:
Average Balances
Interest Rate
Interest (Income)
$837.6 $1,117.3
1.0%
1.0%
($8.4)
($11.2)
4/15/2012 5:19 AM
Deluxe Corp. Checking
For training purposes only

COPYRIGHT 2004 by Training The Street, Inc.
Select the first year out of parity

x
2003
You are in parity
Balance Sheet
2002
2003
Difference
Cash Flow
2003
Cash
Inventories
x Other Current Assets
124.855
32.925
20.287
21.579
288.400
33.552
20.343
21.915
163.545
(0.627)
(0.056)
(0.336)
163.545
(0.627)
(0.056)
(0.336)
PP&E, net
Intangibles, net
Goodwill
x Other Non-Current Assets
140.042
105.976
82.237
40.205
100.867
142.021
91.422
82.237
40.205
100.867
(1.979)
14.554
0.000
0.000
0.000
(1.979)
14.554
0.000
0.000
0.000
Accounts Payable
Accrued Liabilities
x Other Current Liabilities
57.857
155.312
0.000
57.640
155.932
0.000
(0.217)
0.620
0.000
(0.217)
0.620
0.000

x Other Long-Term Liabilities
0.000
308.199
54.453
28.836
0.000
308.199
54.453
28.836
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
64.316
215.904
151.588
151.588
0.000
0.000
327.091
327.091
x Total Equity:
Parity Check
Reconciliations for FYE 2003

+ Net PP&E "Use"
Beginning Bal.
+ CapEx
140.04
25.00
Calculated Bal.
Actual Balance
Difference
142.02
142.02
0.00
"Use"
Beginning Bal.
+ Purchases
"Source"
23.02 - Depreciation
0.00 - Sale/write-off
+ Intangibles - "Source"
105.98
20.00
34.55 - Amortization
0.00 - Sale/write-off
Calculated Bal.
Actual Balance
Difference
Equity
Beginning Bal.
+/(-) Net Income
- Cash Dividend
+ Equity Issued
- Stock Buyback
+ Option Proceeds
+/(-) FX Adjustment
Calculated Bal.
Actual Balance
Difference
91.42
91.42
0.00
64.32
213.03
(61.45)
0.00
0.00
0.00
0.00
215.90
215.90
0.00
4/15/2012 5:19 AM
Deluxe Corp. Growth Rates and Margins (1)


Sales
% growth

2000
2001
2002
2003

2004
2005
2006
2007
2002-2007
CAGR
$1,262.7
--
$1,278.4
1.2%
$1,284.0
0.4%
$1,289.1
0.4%
$1,294.3
0.4%
$1,299.5
0.4%
$1,304.7
0.4%
$1,309.9
0.4%
0.4%
Gross Profit (before D&A)

% margin
$843.1
66.8%
$856.4
67.0%
$872.7
68.0%
$876.6
68.0%
$890.5
68.8%
$904.4
69.6%
$918.5
70.4%
$932.6
71.2%
1.3%
EBITDA
% margin
% growth
$289.0
27.9%
--
$314.4
29.9%
8.8%
$346.7
31.5%
10.3%
$354.8
32.0%
2.3%
$376.4
33.3%
6.1%
$397.2
34.6%
5.5%
$420.2
35.9%
5.8%
$444.6
37.2%
5.8%
5.1%
EBIT
% margin
% growth
$352.4
27.9%
--
$382.2
29.9%
8.4%
$404.9
31.5%
6.0%
$412.4
32.0%
1.8%
$430.9
33.3%
4.5%
$449.5
34.6%
4.3%
$468.2
35.9%
4.2%
$487.1
37.2%
4.0%
3.8%
Net Income
% margin
% growth
$177.5
14.1%
--
$193.9
15.2%
9.2%
$215.4
16.8%
11.1%
$213.0
16.5%
(1.1%)
$227.7
17.6%
6.9%
$241.9
18.6%
6.3%
$257.8
19.8%
6.6%
$274.8
21.0%
6.6%
5.0%
$2.45
--
$2.81
14.5%
$3.38
20.4%
$3.42
1.1%
$3.64
6.4%
$3.82
5.0%
$3.99
4.5%
$4.14
3.8%
4.1%
Dividend Per Share (calculated using avg. basic)

% growth
Payout Ratio
$1.48
-60.4%
$1.49
0.3%
52.5%
$1.48
(0.5%)
43.1%
$1.00
(32.4%)
28.8%
$1.00
0.0%
27.1%
$1.00
0.0%
25.8%
$1.00
0.0%
24.7%
$1.00
0.0%
23.8%
(7.5%)
Return on Sales
Return on Assets (avg)
Return on Equity (avg)
Return on Invested Capital (avg)
14.1%
----
15.2%
32.5%
113.6%
63.2%
16.5%
28.6%
152.0%
47.5%
17.6%
25.0%
73.6%
36.9%
18.6%
21.7%
47.0%
29.4%
19.8%
19.1%
34.0%
24.2%
21.0%
16.9%
26.4%
20.4%
Earnings Per Share

% growth
16.8%
35.7%
301.5%
70.3%
4/15/2012 5:19 AM
Deluxe Corp. Ratio Summary (1)


2000
2001
2002
2003

2004
2005
2006
2007
Interest Coverage
Total Interest Expense
Net Interest Expense
$11.4
6.7
EBIT
vs. Total Interest Expense
vs. Net Interest Expense
30.82x
52.73x
EBITDA
EBITDA - Capital Expenditures
$5.6
3.2
$5.1
4.4
$16.0
14.0
$16.0
12.2
$16.0
10.1
$16.0
7.7
$16.0
4.9
68.45x
118.84x
79.73x
91.95x
25.73x
29.54x
26.88x
35.37x
28.05x
44.54x
29.22x
61.20x
30.40x
100.37x
25.27x
43.25x
56.31x
97.76x
68.27x
78.73x
22.14x
25.42x
23.49x
30.90x
24.78x
39.36x
26.22x
54.92x
27.74x
91.60x
24.42x
43.25x
54.39x
97.75x
65.48x
78.73x
20.58x
25.41x
21.93x
30.90x
23.22x
39.36x
24.66x
54.92x
26.18x
91.60x
2.61x
1.88x
2.76x
2.01x
2.89x
2.14x
3.02x
2.28x
3.13x
2.41x
EBITDA - CapEx - Taxes

vs. (Interest+Debt Amort+Dividends)
vs. (Net Interest+Debt Amort+Dividends)
Cash Flow Available for Debt Repayment
Cumulative Cash Available for Debt Repayment
---
---
---
$163.4
163.4
$355.4
518.8
$581.7
1,100.5
$843.4
1,943.9
$1,141.2
3,085.1
58.8%
3.8%
43.3%
(24.2%)
33.0%
(42.7%)
25.7%
(55.1%)
20.5%
(63.8%)
0.82x
-0.46x
0.78x
-1.00x
0.73x
-1.57x
0.69x
-2.15x
Leverage
Total Debt / Total Capitalization
Net Debt / Total Capitalization
Total Debt / EBITDA
Net Debt / EBITDA
29.7%
3.1%
67.3%
63.3%
0.38x
0.04x
0.51x
0.48x
82.7%
49.2%
0.89x
0.53x
0.87x
0.06x
4/15/2012 5:19 AM
Deluxe Corp. Ratio Summary (1) cont.


2000
2001
2002
2003

2004
2005
2006
2007
Capitalization
Cash
Total Debt
Minority Interest
Preferred Stock
Net Debt
Common Equity
Total Capitalization
$99.2
110.9
0.0
0.0
11.7
$9.6
161.5
0.0
0.0
151.9
$124.9
308.2
0.0
0.0
183.3
$288.4
308.2
0.0
0.0
19.8
$480.4
308.2
0.0
0.0
(172.2)
$706.7
308.2
0.0
0.0
(398.5)
$968.4
308.2
0.0
0.0
(660.2)
$1,266.2
308.2
0.0
0.0
(958.0)
$262.8
373.7
$78.6
240.1
$64.3
372.5
$215.9
524.1
$402.8
711.0
$626.2
934.4
$889.1
1,197.3
$1,193.7
1,501.9
19.2%
341.3%
0.8%
20.3%
285.1%
0.8%
17.1%
169.2%
1.1%
16.2%
92.1%
1.9%
16.4%
94.3%
1.9%
16.7%
96.5%
1.9%
17.0%
98.6%
1.9%
17.4%
100.8%
1.9%
($104.6)
-0.46x
0.75x
207.5%
($141.3)
36.7
0.34x
0.22x
756.7%
($138.4)
(3.0)
0.35x
0.74x
273.0%
13.3
20.1
38.9
1.92x
10.8
19.3
45.7
2.38x
9.4
18.0
51.4
1.92x
Capital Investments
Depreciation / Net PP&E
Depreciation / CapEx
CapEx / Revenues
Liquidity
Working Capital (2)
Current Ratio (2)
Quick Ratio (3)
Inventory Reliance (4)
($137.8)
($133.5) ($129.1)
($124.8)
($120.3)
(0.6)
(4.3)
(4.3)
(4.4)
(4.4)
0.35x
0.36x
0.37x
0.38x
0.38x
1.51x
2.46x
3.62x
5.01x
6.66x
(532.8%) (1531.7%) (2751.6%) (4213.5%) (5939.4%)
Activity
A/R Days on Hand
Inventory Days on Hand
A/P Days on Hand
Asset Turnover (5)
9.5
18.0
51.0
1.57x
9.5
18.0
51.0
1.29x
9.5
18.0
51.0
1.06x
9.5
18.0
51.0
0.88x
9.5
18.0
51.0
0.74x
(2) Excluding Cash and Current Portion of Long Term Debt
(3) Quick Ratio = (Cash + Accounts Rec.) / Current Liabilities
(4) Inventory Reliance = (Current Liabilities - (Cash + Accounts Rec.)) / Inventory
(5) Asset Turnover = Net Sales / Total Assets
4/15/2012 5:19 AM
Discounted Cash Flow Analysis for Deluxe Corp.

2000
2001
Sales
$1,262.7
EBITDA
Less: Depreciation
Less: Amortization of Intangibles
EBIT
Less: Taxes @
Tax-effected EBIT
Plus:
Plus:
Plus:
Less:
Less:
Less:
Less:
352.4
(33.4)
(30.0)
289.0
(101.2)
187.9
35.0%
$1,278.4
382.2
(30.6)
(37.2)
314.4
(110.0)
204.4
2002
$1,284.0
Depreciation
Amortization of Intangibles
Changes in Deferred Taxes
Changes in Working Capital
Changes in Other Assets and Liabilities
Discount Rate
Discounted (b)
Cash Flows
(2003 - 2007)
11.00%
11.50%
12.00%
12.50%
13.00%
$958.7
946.4
934.4
922.7
911.1
Discount Rate
11.00%
11.50%
12.00%
12.50%
13.00%
D
Net Debt
9/30/2003
$553.6
553.6
553.6
553.6
553.6
Discount Rate
11.00%
11.50%
12.00%
12.50%
13.00%
$1,309.9
468.2
(24.7)
(23.4)
420.2
(147.1)
273.1
487.1
(25.2)
(17.3)
444.6
(155.6)
289.0
23.0
34.6
0.0
(25.0)
(20.0)
(0.6)
0.0
23.6
30.9
0.0
(25.0)
(20.0)
(4.3)
0.0
24.1
28.2
0.0
(25.0)
(20.0)
(4.3)
0.0
24.7
23.4
0.0
(25.0)
(20.0)
(4.4)
0.0
25.2
17.3
0.0
(25.0)
(20.0)
(4.4)
0.0
$249.8
3.0%
$261.1
4.5%
$271.8
4.1%
$1,897.5
1,757.7
1,632.8
1,520.8
1,419.9
0.4%
3.8%
5.1%
$282.1
3.8%
$1,304.7
449.5
(24.1)
(28.2)
397.2
(139.0)
258.2
PV of Terminal Value as a
Perpetual Growth Rate of (c)
1.5%
2.0%
$1,788.8
1,661.6
1,547.5
1,444.6
1,351.5
$1,299.5
2002-2007
CAGR
2007
430.9
(23.6)
(30.9)
376.4
(131.8)
244.7
2.5%
1.5%
$2,019.0
1,864.4
1,727.2
1,604.7
1,494.8
$2,747.5
2,608.1
2,481.9
2,367.3
2,262.6
Enterprise Value
2.0%
$2,856.2
2,704.1
2,567.3
2,443.5
2,331.0
2.5%
$2,977.7
2,810.9
2,661.6
2,527.4
2,405.9
E
Total Equity Value
1.5%
2.0%
$2,193.9
2,054.4
1,928.3
1,813.6
1,709.0
$2,302.6
2,150.5
2,013.7
1,889.9
1,777.4
2.5%
$2,424.0
2,257.2
2,108.0
1,973.8
1,852.3
Terminal Value as a % of Enterprise Value

1.5%
2.0%
2.5%
65.1%
63.7%
62.4%
61.0%
59.7%
66.4%
65.0%
63.6%
62.2%
60.9%
Projections based on internal estimates.

Present values calculated as of 12/31/02.
Discounted 5 years; based on 2007 unlevered free cash flow of $282.1 millions.
Based on 51.140 million diluted shares outstanding as of 9/30/03.
$1,294.3
2006
412.4
(23.0)
(34.6)
354.8
(124.2)
230.6
$242.6
(a)
(b)
(c)
(d)
$1,289.1
404.9
(24.0)
(34.3)
346.7
(121.4)
225.4
Unlevered Free Cash Flow

Unlevered Free Cash Flow Growth Rate

2004
2005
2003
67.8%
66.3%
64.9%
63.5%
62.1%
Value Per Diluted Share (d)

1.5%
2.0%
$42.90
40.17
37.71
35.46
33.42
$45.03
42.05
39.38
36.96
34.76
Implied EBITDA Multiple

1.5%
2.0%
6.2x
5.9x
5.6x
5.3x
5.1x
6.6x
6.2x
5.9x
5.6x
5.4x
2.5%
$47.40
44.14
41.22
38.60
36.22
2.5%
7.0x
6.6x
6.2x
5.9x
5.7x

4/15/2012 5:19 AM
Discounted Cash Flow Analysis for Deluxe Corp.

2000
2001
Sales
$1,262.7
EBITDA
Less: Depreciation
Less: Amortization of Intangibles
EBIT
Less: Taxes @
Tax-effected EBIT
Plus:
Plus:
Plus:
Less:
Less:
Less:
Less:
352.4
(33.4)
(30.0)
289.0
(101.2)
187.9
35.0%
$1,278.4
382.2
(30.6)
(37.2)
314.4
(110.0)
204.4
2002
$1,284.0
Depreciation
Amortization of Intangibles
Changes in Deferred Taxes
Changes in Working Capital
Changes in Other Assets and Liabilities
Discount Rate
Discounted (b)
Cash Flows
(2003 - 2007)
11.00%
11.50%
12.00%
12.50%
13.00%
$958.7
$946.4
$934.4
$922.7
$911.1
Discount Rate
D
Net Debt
9/30/2003
11.00%
11.50%
12.00%
12.50%
13.00%
Discount Rate
11.00%
11.50%
12.00%
12.50%
13.00%
$553.6
553.6
553.6
553.6
553.6
$1,309.9
468.2
(24.7)
(23.4)
420.2
(147.1)
273.1
487.1
(25.2)
(17.3)
444.6
(155.6)
289.0
23.0
34.6
0.0
(25.0)
(20.0)
(0.6)
0.0
23.6
30.9
0.0
(25.0)
(20.0)
(4.3)
0.0
24.1
28.2
0.0
(25.0)
(20.0)
(4.3)
0.0
24.7
23.4
0.0
(25.0)
(20.0)
(4.4)
0.0
25.2
17.3
0.0
(25.0)
(20.0)
(4.4)
0.0
$249.8
3.0%
$261.1
4.5%
$271.8
4.1%
$1,734.6
1,696.0
1,658.5
1,622.0
1,586.4
6.5x
$1,879.1
1,837.4
1,796.7
1,757.1
1,718.6
0.4%
3.8%
5.1%
$282.1
3.8%
$1,304.7
449.5
(24.1)
(28.2)
397.2
(139.0)
258.2
PV of Terminal Value as a
Multiple of 2007 EBITDA (c)
5.5x
6.0x
$1,590.0
1,554.7
1,520.3
1,486.8
1,454.2
$1,299.5
2002-2007
CAGR
2007
430.9
(23.6)
(30.9)
376.4
(131.8)
244.7
5.5x
Enterprise Value
6.0x
$2,548.7
2,501.1
2,454.7
2,409.5
2,365.3
$2,693.3
2,642.5
2,592.9
2,544.6
2,497.5
6.5x
$2,837.8
2,783.8
2,731.1
2,679.8
2,629.7
E
Total Equity Value
5.5x
6.0x
$1,995.1
1,947.5
1,901.1
1,855.8
1,811.7
$2,139.7
2,088.8
2,039.3
1,991.0
1,943.9
6.5x
$2,284.2
2,230.2
2,177.5
2,126.2
2,076.1
Terminal Value as a % of Enterprise Value

5.5x
6.0x
6.5x
62.4%
62.2%
61.9%
61.7%
61.5%
64.4%
64.2%
64.0%
63.7%
63.5%
Projections based on internal estimates.

Present values calculated as of 12/31/02.
Discounted 5 years; based on 2007 EBITDA of $487.1 million.
Based on 51.140 million diluted shares outstanding as of 9/30/03.
$1,294.3
2006
412.4
(23.0)
(34.6)
354.8
(124.2)
230.6
$242.6
(a)
(b)
(c)
(d)
$1,289.1
404.9
(24.0)
(34.3)
346.7
(121.4)
225.4
Unlevered Free Cash Flow

Unlevered Free Cash Flow Growth Rate

2004
2005
2003
66.2%
66.0%
65.8%
65.6%
65.4%
Value Per Diluted Share (d)

5.5x
6.0x
$39.01
38.08
37.17
36.29
35.43
$41.84
40.85
39.88
38.93
38.01
Implied Perpetuity Growth Rate

5.5x
6.0x
0.4%
0.9%
1.3%
1.8%
2.2%
1.2%
1.7%
2.1%
2.6%
3.1%
6.5x
$44.67
43.61
42.58
41.58
40.60
6.5x
1.9%
2.4%
2.8%
3.3%
3.8%

4/15/2012 5:19 AM
Deluxe Corp.'s Debt and Capital Lease Detail
Cost of Debt Estimate
Treated as a capital lease if meets any of the below criteria at inception:

Transfer of title
Bargain purchase option at the end of the lease
Lease term is more than 75% of useful life of the asset
PV of the lease payments is more than 90% of the fair value of the asset
Balance Sheet Reconginition
Fixed asset and debt
Income Statement Reconginition
Interest and depreciation expense
Cash Flow Reconginition
Principal payment and depreciation
5.50% Range from Annual Report

10.40%
7.95% Average rate on Capital Leases
Revlover
Long-Term Debt
Calital Leases
Total
Capital Lease Sample

Date
2003
2004
2005
2006
2007
Amount
$0.0
298.1
10.1
$308.2
Rate
4.50%
5.08%
7.95%
% of total
0.0%
96.7%
3.3%
100.0%
Factor
0.0%
4.9%
0.3%
5.2% Estimated weighted average cost of debt
2003 Debits and Credits
Total
Payment
10.0%
Interest
Expense
Principal
Payment
$2,638.0
2,638.0
2,638.0
2,638.0
2,638.0
$13,189.9
$1,000.0
836.2
656.0
457.8
239.8
$3,189.9
$1,638.0
1,801.8
1,981.9
2,180.1
2,398.2
$10,000.0
PV factor 3.7907868
Lease
Balance
$10,000.0
8,362.0
6,560.3
4,578.3
2,398.2
0.0
Depr.
of Asset
Total annual
Cap. Lease
Expense
2,000.0
2,000.0
2,000.0
2,000.0
2,000.0
10,000.0
3,000.0
2,836.2
2,656.0
2,457.8
2,239.8
13,189.9
+(A) Fixed Asset

+(L) Capital Lease
$10,000.0
-(L) Capital Lease

-(E) Interest Expense
-(A) Cash
$1,638.0
$1,000.0
-(E) Depreciation Expense

-(A) Accumulated Depreciation
$2,000.0
$2,638.0
5 Years
JUST LIKE MORTAGE
Total payment can solved using the PMT function or by dividing the
beginning balance of the lease by the PV factor.
$10,000.0
$2,638.0
$2,000.0
PMT function

Assumptions
Present value - discount
Face value
Annual coupon
Number of semi-annual periods
Effective interest rate (a)
Semi-annual coupon
Beginning balance
+ Accretion
= Ending balance
Interest expense (semi-annual effective int. rate)

- Interest coupon (semi-annual coupon)
= Accretion
(a)
$298.107
$300.000
5.00%
20
99.369% of par
2.54% Semi-annual
1
$298.107
0.074
$298.181
2
$298.181
0.076
$298.256
3
$298.256
0.078
$298.334
4
$298.334
0.080
$298.414
17
$299.542
0.110
$299.652
18
$299.652
0.113
$299.765
19
$299.765
0.116
$299.881
20
$299.881
0.119
$300.000
$7.574
7.500
$0.074
$7.576
7.500
$0.076
$7.578
7.500
$0.078
$7.580
7.500
$0.080
$7.610
7.500
$0.110
$7.613
7.500
$0.113
$7.616
7.500
$0.116
$7.619
7.500
$0.119
Effective interest rate is calculate using the RATE function in Excel with the following assumptions:
N = 20
PMT = $7.500 (based on $300.000 FV and a 2.5% semi-annual coupon)
PV = -$298.107
FV = $300.000

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Training The Street, Inc.

cell F3 is named "name"

Dollars in Millions, except per share

cell F5 is named "subheader"

Last Fiscal Year End

COPYRIGHT 2004 by Training The Street, Inc

cell is named "FYE"

cell is named "days"

For training purposes only!

Training The Street, Inc.

Training The Street, Inc.

cell F3 is named "name"

COPYRIGHT 2004 by Training The Street, Inc

For training purposes only!

Training The Street, Inc.

Projected Income Statement for Deluxe Corp.

Projected Year Ending Dec. 31,

SG&A Expense (excluding Amortization) (1)(4)

Other Expense / (Income) (3)

Diluted Weighted Average Shares in Millions

Earnings Per Share

COPYRIGHT 2004 by Training The Street, Inc

For training purposes only!

Training The Street, Inc.

Projected Balance Sheet for Deluxe Corp.

Projected Year Ending Dec. 31,

Revolving Credit Facility

Total Liabilities and Equity:

COPYRIGHT 2004 by Training The Street, Inc

For training purposes only!

Training The Street, Inc.

Projected Cash Flow Statement for Deluxe Corp.

Projected Year Ending Dec. 31,

CASH FLOW AVAILABLE FOR FINANCING ACTIVITIES

Effects of Exchange Rates on Cash

COPYRIGHT 2004 by Training The Street, Inc

For training purposes only!

Training The Street, Inc.

Projected Working Capital Schedule for Deluxe Corp.

Accounts Payable (Days outstanding)

COPYRIGHT 2004 by Training The Street, Inc

Projected Year Ending Dec. 31,

(Increase)/Decrease in Working Capital

For training purposes only!

Training The Street, Inc.

Projected Depreciation Schedule for Deluxe Corp.

Beginning Net PP&E

Existing PP&E, net

Total Depreciation Expense

COPYRIGHT 2004 by Training The Street, Inc

Historicals not needed

Projected Year Ending Dec. 31,

Depreciation Expense Projections

From Exiting PP&E:

For training purposes only!

Training The Street, Inc.

Projected Amortization of Intangibles Schedule for Deluxe Corp.

Historicals not needed

Projected Year Ending Dec. 31,

Amortization Expense Projections

Existing Intangibles, net

Amortization as % of Intangibles, net

COPYRIGHT 2004 by Training The Street, Inc

For training purposes only!