Presentation Transcript

1. Deluxe Corporation

   廖庭鋒 段涵菁 張軒愷 梁輝政 樂野鷹輝 黃偉濤
2. Agenda Part 1IntroductionCapital StructureProblems they are facing Part 2Policies in progressRanking of important issuesFinancial Forecast,2002-2006Conclusion
3. Part1 Introduction Capital Structure Problems they are facing
4. Introduction Founded in 1915 by W. R. Hotchkiss  Founded in in St. Paul, Minnesota Has 33 facilities in the U.S. and 3 locations in Canada to conduct its printing and fulfillment, call center, and administrative functions In 1988 the company incorporated and changed its name to Deluxe Corporation
5. Business Model Deluxe Small Business Solutions Unit Deluxe Financial Services Unit Direct Checks Unlimited Unit
6. DELUXE CORP It’s business is going to target on electronic-transfer market and refocusing on paper checks Source of income:Financial Services(60%)Small Business Services-serving(16%)Direct Checks(24%)
7. Capital Structure
8. Deluxe Corporation – HighOperating leverage = 14.17 % / 1.4 % = 10.5 The higher the degree of operating leverage, the more volatile the EBIT figure will be relative to a given change in sales Deluxe involves using a large proportion of fixed costs to variable costs in the firm.
9. Problems they are facing The advent of on-line payment methods and the rising popularity of credit and debit cards Encountering a relentless wave of technological change The demand for paper checks will fall precipitously Paper checks business is going to be mature
10. Part2 Policies in progress Ranking of important issues Financial Forecast,2002-2006 Conclusion
11. Policies in progress Spinoff and restructuring Aggressive repurchasesstock program Dividend will be held constant
12. Ranking of important issues Financial flexibility Maintaining the credit rating of Investment grade A big penalty from Investment grade to Noninvestment grade
13. Deluxe Corporation’s Financial Forecast,2002-2006 AAA&AA
14. Conclusion Raise the DebtTo raise the debt in order to meet all the available and effective investment planGood for the long-termbut harm for the short-term Low the DebtGood for the short-term but harm for the long-termWithout short-term political risk