United States Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q
(Mark One)
(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from __________________ to ________________
Commission file number 1-6352
JOHN H. HARLAND COMPANY
(Exact name of registrant as specified in its charter)
GEORGIA 58-0278260
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2939 Miller Rd.
Decatur, Georgia 30035
(Address of principal executive offices) (Zip code)
(770) 981-9460
(Registrant's telephone number, including area code)
(Not Applicable)
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes (X) No ( ).
The number of shares of the Registrant's Common Stock outstanding on July 31,
1996 was 30,781,406.
-1-<PAGE>
Item 1. FINANCIAL STATEMENTS
<TABLE>
JOHN H. HARLAND COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
------
<CAPTION>
June 30, December 31,
(In thousands) 1996 1995
- ---------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 22,548 $ 12,862
Short term investments 140
Accounts receivable 69,814 67,660
Inventories 35,408 42,296
Deferred income taxes 13,830 6,523
Other 9,254 17,942
---------- ----------
Total current assets 150,994 147,283
---------- ----------
INVESTMENTS AND OTHER ASSETS:
Assets held for disposal 35,141
Investments 8,358 8,188
Goodwill and intangibles-net 133,911 133,092
Deferred income taxes 21,751
Other 17,381 20,978
---------- ----------
Total investments and other assets 216,542 162,258
---------- ----------
PROPERTY, PLANT AND EQUIPMENT 209,488 364,000
Less accumulated depreciation
and amortization 115,528 198,891
---------- ----------
Property, plant and equipment - net 93,960 165,109
---------- ----------
Total $ 461,496 $ 474,650
========== ==========
<FN>
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
-2-<PAGE>
<TABLE>
JOHN H. HARLAND COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
<CAPTION>
June 30, December 31,
(In thousands, except share amounts) 1996 1995
- ---------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
CURRENT LIABILITIES:
Short-term debt $ 66,750 $ 35,000
Accounts payable - trade 21,941 26,311
Deferred revenues 26,308 25,141
Accrued liabilities:
Salaries, wages and employee benefits 19,398 18,217
Taxes 5,670 4,698
Other 19,903 11,703
---------- ----------
Total current liabilities 159,970 121,070
---------- ----------
LONG-TERM LIABILITIES:
Long-term debt, less current maturities 115,087 114,574
Deferred income taxes 4,504
Other 20,424 12,355
---------- ----------
Total long-term liabilities 135,511 131,433
---------- ----------
Total liabilities 295,481 252,503
---------- ----------
SHAREHOLDERS' EQUITY:
Series preferred stock, authorized 500,000
shares of $1.00 par value, none issued
Common stock - authorized 144,000,000
shares of $1.00 par value, issued
37,907,497 issued 37,907 37,907
Additional paid-in capital 1,971 2,375
Foreign exchange translation adjustments 54 54
Retained earnings 303,276 361,554
---------- ----------
Total shareholders' equity 343,208 401,890
Less 7,135,199 and 7,468,591 shares of
treasury stock - at cost 177,193 179,743
---------- ----------
Shareholders' equity - net 166,015 222,147
---------- ----------
Total $ 461,496 $ 474,650
========== ==========
<FN>
See Notes to Condensed Consolidated Financial Statements
</TABLE>
-3-<PAGE>
<TABLE>
JOHN H. HARLAND COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
(In thousands, except JUNE 30, JUNE 30,
per share amounts) 1996 1995 1996 1995
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES $ 149,645 $ 136,068 $ 301,892 $ 274,359
---------- ---------- ---------- ----------
COST AND EXPENSES:
Cost of sales 79,909 72,022 164,901 142,791
Selling, general and
administrative expenses 43,186 39,041 87,566 79,990
Amortization of intangibles 3,710 3,353 8,357 6,708
Restructuring charge 92,483 94,054
Acquired in-process research
and development cost 7,973 7,973
---------- ---------- ---------- ----------
Total 227,261 114,417 362,851 229,489
---------- ---------- ---------- ----------
(LOSS)INCOME FROM
OPERATIONS (77,616) 21,651 (60,959) 44,870
---------- ---------- ---------- ----------
OTHER INCOME(EXPENSE):
Interest expense (2,551) (1,999) (4,776) (3,995)
Other - net 916 1,127 897 1,176
---------- ---------- ---------- ----------
Total (1,635) (872) (3,879) (2,819)
---------- ---------- ---------- ----------
(LOSS)INCOME BEFORE
INCOME TAXES (79,251) 20,779 (64,838) 42,051
INCOME TAXES (28,188) 8,311 (22,221) 16,820
---------- ---------- ---------- ----------
NET(LOSS)INCOME (51,063) 12,468 (42,617) 25,231
RETAINED EARNINGS AT
BEGINNING OF PERIOD 362,172 351,674 361,554 346,660
---------- ---------- ---------- ----------
311,109 364,142 318,937 371,891
Cash dividends (7,833) (7,779) (15,661) (15,528)
---------- ---------- ---------- ----------
RETAINED EARNINGS AT END
OF PERIOD $ 303,276 $ 356,363 $ 303,276 $ 356,363
========== ========== ========== ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING 30,862 30,544 30,709 30,475
========== ========== ========== ==========
NET(LOSS)INCOME PER
COMMON SHARE $ (1.66) $ .41 $ (1.38) $ .83
========== ========== ========== ==========
CASH DIVIDENDS PER COMMON
SHARE $ .255 $ .255 $ .51 $ .51
========== ========== ========== ==========
<FN>
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
-4-<PAGE>
<TABLE>
JOHN H. HARLAND COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTH PERIODS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
<CAPTION>
(In thousands) 1996 1995
- -----------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net (Loss)Income $ (42,617) $ 25,231
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 21,404 22,566
Provision for restructuring charge 90,481
Acquired in-process research and development cost 7,973
Other 905 565
Change in assets and liabilities net of
effect of acquisitions:
Deferred income taxes (39,302) 2,840
Accounts receivable (490) (5,256)
Inventories and other current assets 6,486 (11,613)
Accounts payable and accrued expenses 5,041 (140)
---------- ---------
Net cash provided by operating activities 49,881 34,193
---------- ---------
INVESTING ACTIVITIES:
Purchases of property, plant and equipment (15,626) (13,689)
Proceeds from sale of property, plant and equipment 652 1,102
Payment for acquisition of businesses,
net of cash acquired (34,575) (2,500)
Decrease (increase) in short-term investments-net 261 (1,050)
Decrease in long-term investments and
other assets-net (9,046) (2,200)
---------- ---------
Net cash used in investing activities (58,334) (18,337)
---------- ---------
FINANCING ACTIVITIES:
Sale of common stock 2,662 1,950
Dividends paid (15,661) (15,528)
Increase in short-term debt - net 31,750 6,000
Other - net (612) (505)
---------- ----------
Net cash provided by (used in) financing activities 18,139 (8,083)
---------- ----------
Net increase in cash and cash equivalents 9,686 7,773
Cash and cash equivalents at beginning of period 12,862 12,049
---------- ----------
Cash and cash equivalents at end of period $ 22,548 $ 19,822
========== ==========
<FN>
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
-5-<PAGE>
JOHN H. HARLAND COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1996
(Unaudited)
1. Basis of Presentation
The condensed consolidated financial statements contained in this report
are unaudited but reflect all adjustments, consisting only of normal
recurring accruals, which are, in the opinion of management, necessary
for a fair presentation of the results of operations, financial position
and cash flows of the John H. Harland Company and subsidiaries ("the
Company") for the interim periods reflected. Certain information and note
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
omitted pursuant to applicable rules and regulations of the Securities
and Exchange Commission. The results of operations for the interim period
reported herein are not necessarily indicative of results to be expected
for the full year.
2. Accounting Policies
The condensed consolidated financial statements included herein should be
read in conjunction with the consolidated financial statements and notes
thereto, and the Independent Auditors' Report included in the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 1995.
Reference is made to the accounting policies of the Company described in
the notes to consolidated financial statements included in the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 1995.
The Company has consistently followed those policies in preparing this
report.
3. Restructuring Charge
In April 1996, the Company announced plans to consolidate its 40 core
printing plants into a network of seven regional facilities over a two-
year period. As part of this strategy, the Company recorded pretax
charges of $92.5 million in the second quarter of 1996 and incurred costs
of $1.6 million in the first quarter of 1996. The restructuring charge
related to costs of consolidation of manufacturing operations, including
severance and associated revaluation of assets, and valuation adjustments
related to discontinuing certain subsidiary product lines. The pre-tax
restructuring charge for the six months ended June 30, 1996 includes
the following (in thousands):
- ----------------------------------------------------------------
Write down of equipment and facilities $ 45,132
Write down of intangibles 23,198
Employee severance 17,943
Other 7,781
----------
Total $ 94,054
==========
-6-<PAGE>
The Company has made payments totaling approximately $3.6 million in the
six months ended June 30, 1996, related to the restructuring charge.
Further restructuring charges are anticipated in future periods,
predominantly related to employee severance, which are expected to total
approximately $10 million. Related to the restructuring, certain assets,
predominantly land, buildings and equipment at the facilities to be
closed, with a carrying value of approximately $35.1 million are now
being held for sale. The Company expects to sell these assets within one
year of the related facility being closed.
4. Acquisition
On May 31, 1996, the Company acquired Florida-based OKRA Marketing
Corporation ("OKRA") for cash paid at closing. The acquisition price was
funded with proceeds from short-term borrowings. OKRA designs, develops,
markets and supports proprietary application software products and
systems, and provides data processing services utilizing such products
and systems. Cash paid out for this acquisition totaled $24.6 million,
net of related acquisition costs of $390,000. As part of this
acquisition, the Company acquired in-process research and development
costs of $8.0 million, which the Company expensed in the second quarter
of 1996. Of the total acquisition costs, approximately $16.2 million was
preliminarily allocated to intangible assets, of which $12.2 million
represented goodwill and is being amortized on a straight line basis over
15 years.
The following represents the unaudited pro forma results of operations
which assume this acquisition and the businesses acquired during 1995
occurred on January 1, 1996 and 1995. These results include certain
adjustments, primarily increased amortization expense related to
intangible assets, one-time expenses and increased interest expense (in
thousands, except per share amounts):
Six months ended Six months ended
June 30, 1996 June 30, 1995
- ---------------------------------------------------------------------
Net sales $ 307,571 $ 281,838
Net (loss)income (36,525) 23,608
Net (loss)income per
common share (1.18) .77
The pro forma financial information presented above does not purport to
be indicative of either the results of operations that would have
occurred had the acquisitions taken place on January 1, 1996 and 1995 or
of future consolidated results of operations.
5. Accounting for Income Taxes
The provisions for income tax expense for the six months ended June 30,
1996 and 1995 include the following (in thousands):
1996 1995
- ----------------------------------------------------------------------
Current provision $ 15,193 $ 19,660
Deferred benefit (37,414) (2,840)
---------- ----------
Total $ (22,221) $ 16,820
========== ==========
-7-<PAGE>
6. Inventories
Inventories consist of the following (in thousands):
June 30, December 31,
1996 1995
- ---------------------------------------------------------------------
Raw materials and semi-finished goods $ 29,553 $ 34,349
Finished goods 2,394 3,237
Hardware component parts 3,461 4,710
-------- --------
Total $ 35,408 $ 42,296
======== ========
-8-<PAGE>
ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Second Quarter 1996 compared with Second Quarter 1995
Consolidated net sales for the second quarter of 1996 increased $13.6
million or 10.0% as compared to the second quarter of 1995. The Company's
Financial Markets ("FM") segment sales increased $11.2 million or 9.8%
over the 1995 period. FM's print and fulfillment division provided $6.9
million of the increase and most of this increase was attributable to the
acquisition of dataPRINT on August 31, 1995. FM's order volumes in its
core check and related products business increased by 1.5% over the 1995
period, but this volume increase was offset by a price and product mix
decrease of 2.3% primarily due to competitive pricing pressures in the
industry. FM's order volume for the six month period was favorably
impacted by one-time conversion sales throughout the quarter. FM's direct
marketing and decision support revenues increased $3.8 million compared
to the 1995 period, $2 million of which was provided by the acquisition
of OKRA Marketing Corporation (_OKRA_) on May 31, 1996. The number of
systems installed by FM's direct marketing and decision support segment
increased by 26% over the 1995 period. Sales in the Education Markets
segment increased 26.6% over the 1995 period principally due to the
acquisition of Quality Computers & Applications Inc. (_QCA_) in July of
1995.
Consolidated gross profit increased by 8.9% and decreased as a percentage
of sales from 47.1% in 1995 to 46.6% in 1996. The negative impact of
competitive pricing in core checks and, to a lesser extent than in prior
periods, paper costs, continued to affect FM's gross margin in comparison
to 1995. FM's gross margin remained constant at 46.8% for 1995 and 1996.
The gross margin from direct marketing and decision support increased
from 48.5% in 1995 to 50.0% in 1996. Changes in gross margins of
Education Markets and other products were not significant.
Consolidated selling, general and administrative expenses increased as a
percentage of sales from 28.7% in 1995 to 28.9% in 1996. Components of
this increase are costs related to the Company's transition from a checks
and forms printer to a financial marketing services company, increased
expenditures relating to acquired operations (dataPRINT and QCA) and
information technologies, partially offset by a $1.5 million decrease in
employee benefit costs related to the Company's merger of its profit
sharing plan and 401(k) plan.
Charges totaling $92.5 million and $8 million which related to
restructuring and in-process research and development, respectively, were
recorded in the second quarter of 1996. These costs reflect the Company's
plans for plant consolidation over the next two years and other strategic
decisions related to product development. (See note 3 to the Condensed
Consolidated Financial Statements.)
The Company's consolidated effective income tax rate for the second
quarter of 1996 was 35.6% compared to 40.0% in 1995. The decrease in the
effective tax rate and the second quarter associated tax benefit were
primarily due to the effects of the restructuring charge and non-
deductible acquired in-process research and development charge.
-9-<PAGE>
The Company reported a net loss of $51.1 million or $1.66 per share for
the second quarter of 1996, compared to net income of $12.5 million, or
$0.41 per share in the 1995 quarter. The restructuring charge in the
second quarter of 1996 reduced earnings per share by approximately $1.80,
while the acquired in-process research and development charge had a
negative impact of approximately $0.26 per share, with a total impact of
approximately $2.06 per share. Quarterly earnings were favorably impacted
by reduced depreciation and amortization related to revaluation
adjustments to certain assets.
Year to Date 1996 compared with Year to Date 1995
Consolidated net sales for the six month period ended June 30, 1996
increased $27.5 million or 10.0% as compared to the same period in 1995.
The Company's Financial Markets segment sales increased $21.7 million or
9.3% over the 1995 period. FM's print and fulfillment division provided
$15.8 million of this increase, primarily due to the acquisition of
dataPRINT in August 1995. FM's order volumes in its core check and
related products business increased 1.8% over the 1995 period, but this
volume increase was offset by a price and product mix decrease of 2.2%
primarily due to competitive pricing pressures in the industry. FM's
order volume for the six-month period was favorably impacted by one-time
conversion sales throughout the 1996 period. FM's direct marketing and
decision support revenues increased by $5.5 million compared to the 1995
period, $2 million of which was provided by the acquisition of OKRA. The
number of systems installed by FM's direct marketing and decision support
increased by 33% over the 1995 period. Sales in Education Markets
segment increased 23.2% over the 1995 period principally due to the
acquisition of QCA. Sales from the Company's other businesses increased
$3 million over the 1995 period.
Consolidated gross profit increased by 4.1% and decreased as a percentage
of sales from 48.0% in 1995 to 45.4% in 1996. The negative impact of
competitive pricing and paper prices continued to affect FM's gross
margins. FM's gross margin decreased from 47.7% in 1995 to 44.4% in
1996. The gross margin from direct marketing and decision support
increased from 49.2% in 1995 to 49.9% in 1996. Changes in gross margins
of Education Markets and other products were not significant.
Consolidated selling, general and administrative expenses increased by
$7.6 million and decreased as a percentage of sales from 29.2% in 1995 to
29.0% in 1996. Components of this increase are costs related to the
Company's transition from a checks and forms printer to a financial
marketing services company and increased expenditures relating to
acquired operations (QCA and dataPRINT) and information technologies.
The increase in selling, general and administrative expenses was
partially offset by a $3 million decrease in employee benefit costs
related to the Company's merger of its profit sharing plan with its
401(k) plan.
Charges totaling $94.1 million and $8 million which related to
restructuring and acquired in-process research and development,
respectively, were incurred in the six months ended June 30, 1996.
These costs reflect the Company's plans for plant consolidation over
the next two years and new product strategies.
The Company's consolidated effective income tax rate for the first six
months of 1996 was 34.3% compared to 40.0% for the same period in 1995.
-10-<PAGE>
The decrease in the effective tax rate was primarily due to the effects
of the restructuring charge, the non-deductible acquired in-process
research and development charge and non-deductible amortization of
intangibles.
The Company reported a net loss for the first six months of 1996 of $42.6
million, or $1.38 per share, compared to net income of $25.2 million or
$0.83 per share for the same period in 1995. Restructuring charges for
the six months ended June 30, 1996 reduced earnings per share by
approximately $1.83, while the acquired in-process research and
development charge had a negative impact of approximately $0.25 per
share, with a total impact of approximately $2.08 per share. Earnings for
the six months ended June 30, 1996, were favorably impacted by reduced
depreciation and amortization related to revaluation adjustments to
certain assets.
FINANCIAL CONDITION, CAPITAL RESOURCES AND LIQUIDITY
Cash flows provided by operating activities in the first six months of
1996 were $49.9 million compared to $34.2 million in 1995. The primary
uses of funds in the first six months of 1996 were payment for
acquisition of businesses, dividends paid to the Company's shareholders
and payment for capital expenditures. Payments made for acquisition of
businesses and for settlements of earnout provisions in previous
acquisitions were $34.6 million in the first six months of 1996, compared
to $2.5 million for the same period in 1995. Purchases of property,
plant and equipment totaled $15.6 million in the first six months of
1996, compared to $13.7 million for the same period in 1995.
The Company has unsecured lines of credit which provide for borrowings up
to $111.0 million. At June 30, 1996, $66.8 million was outstanding under
these lines of credit. In January 1996, the Company paid a $12 million
note related to the acquisition of dataPRINT.
On June 30, 1996, the Company had $22.5 million in cash and cash
equivalents. The Company believes that its current cash position, funds
from operations and the availability of funds under its lines of credit
will be sufficient to meet anticipated requirements for working capital,
dividends, capital expenditures and other corporate needs. The Company
also believes that it possesses sufficient unused debt capacity and
access to debt and equity capital markets to pursue additional
acquisition opportunities.
OUTLOOK
To improve service and increase the profitability of its check printing
business, the Company is standardizing products and pricing and
consolidating its manufacturing operations. Also, the Company expects
paper prices will remain relatively stable in the coming months.
Over a two-year period, the Company will consolidate its 40 core printing
plants into a network of seven regional facilities and incorporate
advanced manufacturing technology and systems into this network. The
Company is in the process of combining its various sales and marketing
functions into a single, multi-product organization, focused on serving
the financial institution market. This unit will offer an integrated
product line of marketing decision support, direct marketing, print and
delivery systems under the Harland brand. Future plans include developing
-11-<PAGE>
and acquiring new technology and businesses to enhance this product line.
The Company also plans to centralize and outsource customer service and
data entry functions of its check printing business by the end of the
first quarter of 1997. Reflecting this strategy, the Company has
provided for restructuring charges totaling $94.1 million in the first
six months of 1996. Management expects to incur future restructuring
charges, predominantly related to employee severance, which are expected
to total approximately $10 million. Annual savings in cash operating
costs associated with these and other initiatives are expected to be in
the $50 to $75 million range.
-12-<PAGE>
PART II. OTHER INFORMATION
===========================
Item 4. Submission of Matters to a Vote of Security Holders
(a) The Annual Meeting of Shareholders of the Company was held on
April 26, 1996, in Atlanta, GA. There was no solicitation in
opposition to management's nominees for Directors as listed in the
Proxy Statement and all such nominees were elected.
(b) Below is a brief description of matters voted on at the Annual
Meeting and the results of the voting:
Election of Directors:
Robert R. Woodson
Voting for 25,560,369
Withhold authority 214,318
Robert J. Amman
Voting for 25,564,632
Withhold authority 210,055
Juanita Powell Baranco
Voting for 25,544,871
Withhold authority 229,816
John J. McMahon
Voting for 25,564,403
Withhold authority 210,284
Larry R. Prince
Voting for 25,554,766
Withhold authority 219,921
To amend the Company's Employee Stock Purchase Plan to expand employee
participation in the Purchase Plan and to allow the Compensation and
Stock Option Committee of the Board the flexibility to determine which
subsidiaries will be eligible to participate in the Purchase Plan:
Voting for 25,220,894
Voting against 339,660
Voting abstain 214,133
To approve the Company's 1981 Incentive Stock Option Plan, including
amendments (a) to increase the number of shares of Common Stock
authorized under the Option Plan by 1,500,000 shares and (b) to provide
that options granted to a key employee in any calendar year not exceed
350,000 shares, except for a one-time grant to the President and Chief
Executive Officer not to exceed 1,000,000 shares provided that the
option price for at least 666,666 shares exceeds fair market value on
the date of the grant:
Voting for 23,695,594
Voting against 1,775,590
Voting abstain 303,503
To ratify the appointment of Deloitte & Touche LLP as the Company's
independent certified public accountants for the year ending December
31, 1996:
Voting for 25,661,408
Voting against 53,823
Voting abstain 59,456
-13-<PAGE>
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits
Reference No. Description of Exhibit
- ----------------------------------------------------------------
27 Financial Data Schedule
(b) Reports on Form 8-K
There were no reports filed on Form 8-K for the three months ended June
30, 1996.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
JOHN H. HARLAND COMPANY
(Registrant)
August 14, 1996 William M. Dollar
Date: _________________ By:_____________________________
William M. Dollar
Vice-President, Finance and
Treasurer
(Authorized Officer and
Principal Financial Officer)
-16-<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Company's financial statements for the six months ended June 30, 1996 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1996
<CASH> 22,548
<SECURITIES> 140
<RECEIVABLES> 72,899
<ALLOWANCES> 3,085
<INVENTORY> 35,408
<CURRENT-ASSETS> 150,994
<PP&E> 209,488
<DEPRECIATION> 115,528
<TOTAL-ASSETS> 461,496
<CURRENT-LIABILITIES> 159,970
<BONDS> 115,087
<COMMON> 37,907
0
0
<OTHER-SE> 177,193
<TOTAL-LIABILITY-AND-EQUITY> 461,496
<SALES> 301,892
<TOTAL-REVENUES> 301,892
<CGS> 164,901
<TOTAL-COSTS> 164,901
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,776
<INCOME-PRETAX> (64,838)
<INCOME-TAX> (22,221)
<INCOME-CONTINUING> (42,617)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (42,617)
<EPS-PRIMARY> (1.38)
<EPS-DILUTED> (1.38)
</TABLE>
