Catalina Marketing Reports Financial Results for Fiscal 2004 Annual
Report on Form 10-K Filed Today With SEC ST. PETERSBURG, Fla., July
15 /PRNewswire-FirstCall/ -- Catalina Marketing Corporation
(NYSE:POS) today reported that the company has filed its Annual
Report on Form 10-K for the year ended March 31, 2004 with the
Securities and Exchange Commission (SEC). Investors are urged to
review the 2004 Form 10-K for a detailed discussion of the
financial results and business status descriptions. For the
twelve-month period ended March 31, 2004, revenues were $473.0
million compared with revenues of $470.7 million reported for the
comparable prior year period. The company incurred a net loss of
$19.3 million, or $0.37 per diluted share, for fiscal 2004 compared
to net income of $55.1 million, or $1.00 per diluted share, for
fiscal 2003. Cash flows from operating activities were $138.1
million and $118.5 million for the years ended March 31, 2004 and
2003, respectively. On a pro forma non-GAAP basis (to exclude the
results of businesses being planned for disposition, as described
further below) revenues increased 6.5% to $408.6 million during the
year ended March 31, 2004 from $383.8 million in fiscal year 2003.
Pro forma non-GAAP net income was $62.1 million for the twelve
months ended March 31, 2004, a 17.7% increase over $52.8 million of
net income from the comparable prior year period. The reporting of
fiscal year 2004 had been delayed because of the time and resources
required to complete and file the company's Annual Report on Form
10-K for fiscal year 2003, which included the restated financial
statements for fiscal years 2002 and 2001. This filing was made on
May 17, 2004. The company reiterated that the timing of the filing
of the 2004 annual report on Form 10-K did not have an impact on
its credit facilities and that it is currently in compliance with
all related financial covenants. "We are very pleased to have
completed this process," said L. Dick Buell, chief executive
officer. "Today's filing marks a significant milestone for Catalina
Marketing, in that we have addressed the financial reporting and
restatement issues that have faced the company for the past 13
months and can focus solely on building our core businesses." Pro
Forma Non-GAAP Adjustments The pro forma non-GAAP financial
information herein includes the results of the company's on-going
business operations and, accordingly, excludes the financial
results of the business units designated to be divested by the
company including Direct Marketing Services (DMS), Japan Billboard
and Catalina Marketing Research Solutions (CMRS). It should be
noted that the company recognized impairment charges in fiscal 2004
with respect to each of these businesses and that the pro forma
non-GAAP financial information does not reflect such impairment
charges. During the third quarter of fiscal year 2004, the company
announced its intent to divest DMS, Japan Billboard and CMRS. These
businesses were deemed not to be strategically aligned with
Catalina's current core competencies. The company tested the
goodwill related to these operations for possible impairment in
accordance with Statement of Financial Accounting Standards (SFAS)
No. 142, "Goodwill and Other Intangible Assets." As a result of
this testing, the company recorded impairment charges related to
goodwill in the amount of $81.5 million on the consolidated income
statement for fiscal year 2004. The impairment charges consisted of
$29.8 million related to DMS, $30.5 million related to Japan
Billboard and $21.2 million related to CMRS. In addition to the
$81.5 million of goodwill impairment charges described above, the
company recognized an impairment charge on its billboard assets in
Japan. The increased regulatory limitations on tobacco advertising
on billboards in Japan resulted in a charge of $4.1 million related
to the impairment of long-lived assets pursuant to SFAS No. 144,
"Accounting for the Impairment or Disposal of Long-Lived Assets."
Additional information related to how these impairment charges were
derived is available in Management's Discussion and Analysis and
the company's consolidated financial statements contained in the
fiscal year 2004 Annual Report on Form 10-K. Webcast Scheduled The
company also announced that it will host a webcast on Monday, July
19, 2004, at 10:00 a.m. EDT to discuss its financial results as
filed in its fiscal year 2004 Annual Report on Form 10-K. The
webcast may be accessed at
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=POS&script=1010&item_id=918706
and will be available for replay from Monday, July 19, 2004,
through Monday, August 16, 2004. Catalina Marketing Corporation
Selected Financial Data (in thousands, except per share amounts)
Twelve Months Twelve Months Periods Ended March 31 2004 2004 2003
2003 GAAP Pro-Forma GAAP Pro-Forma Revenues $472,950 $408,632
$470,709 $383,848 Direct Operating Expenses 186,207 139,783 208,381
147,077 Selling, General and Administrative 140,815 123,095 125,449
107,958 Impairment Charges 85,565 -- 1,225 -- Depreciation and
Amortization 47,637 44,938 43,268 40,682 Income from Operations
12,726 100,816 92,386 88,131 Other (Income) Expense 793 538 3,135
2,862 Provision for Income Taxes 30,436 38,198 34,153 32,517 Net
Income (Loss) Before Accounting Change (18,503) 62,080 55,098
52,752 Cumulative Effect of Acctg Change (770) -- -- -- Net Income
(Loss) After Acctg Change $(19,273) $62,080 $55,098 $52,752
Diluted: Earnings Per Share $(0.37) $1.19 $1.00 $0.96 Weighted
Average Shares Outstanding 52,304 52,304 54,885 54,885 Basic:
Earnings Per Share $(0.37) $1.19 $1.01 $0.97 Weighted Average
Shares Outstanding 52,304 52,304 54,474 54,474 Selected Other Data
March 31 2004 2003 Balance Sheet and Cash Flow (in thousands): Cash
$72,704 $1,715 Stockholders' Equity $184,662 $215,995 Cash Flows
from Operating Activities $138,133 $118,503 U.S. Core Domestic
Business: Number of Stores at Quarter End 17,604 17,498 Net Stores
Installed During Quarter /YTD 22/106 165/1,010 Promotions Printed
During Quarter/ YTD (in millions) 878/3,118 922/3,334 Weekly
Shopper Reach at Quarter End (in millions) 209 203 International
Business: Number of Stores at Quarter End 5,545 4,069 Net Stores
Installed During Quarter /YTD 287/1,476 271/731 Promotions Printed
During Quarter/ YTD (in millions) 230/757 156/455 Weekly Shopper
Reach at Quarter End (in millions) 65 47 Catalina Marketing
Corporation Reconciliation of GAAP to Pro forma Non-GAAP Net Income
(1) (in thousands, except per share amounts) Adjustments to
reconcile from GAAP to Twelve Months Ended March 31, 2004 Non-GAAP
Non-GAAP GAAP Pro forma Pro forma Revenues $472,950 $64,318
$408,632 Direct Operating Expenses 186,207 46,424 139,783 Selling,
General and Administrative 140,815 17,720 123,095 Impairment
Charges 85,565 85,565 -- Depreciation and Amortization 47,637 2,699
44,938 Income from Operations 12,726 (88,090) 100,816 Other
(Income) Expense 793 255 538 Provision for Income Taxes 30,436
(7,762) 38,198 Net Income (Loss) Before Accounting Change (18,503)
(80,583) 62,080 Cumulative Effect of Acctg Change (770) (770) --
Net Income (Loss) After Acctg Change $(19,273) $(81,353) $62,080
Earnings per Share, Diluted (52,304 shares) $(0.37) $(1.56) $1.19
Earnings per Share, Basic (52,304 shares) $(0.37) $(1.56) $1.19 (1)
The non-GAAP pro forma net income results are a supplement to the
financial data based on accounting principals generally accepted in
the United States of America (GAAP). These non-GAAP pro forma
results reflect adjustments primarily to exclude from operating
results the financial statement information for business units that
have been identified for divestiture or disposal and as such are
not viewed by the company as part of the ongoing business. The
company believes this presentation provides useful information to
investors because it assists investors in better understanding the
company's operations for the full fiscal year. It should be
emphasized, however, that these measurements are not a substitution
for GAAP- based financial statements. Catalina Marketing
Corporation Reconciliation of GAAP to Pro forma Non-GAAP Net Income
(1) (in thousands, except per share amounts) Adjustments to
reconcile from GAAP to Non-GAAP Non-GAAP GAAP Pro forma Pro forma
Period Ended March 31, 2003 Revenues $470,709 $86,861 $383,848
Direct Operating Expenses 208,381 61,304 147,077 Selling, General
and Administrative 125,449 17,491 107,958 Impairment Charges 1,225
1,225 -- Depreciation and Amortization 43,268 2,586 40,682 Income
from Operations 92,386 4,255 88,131 Other (Income) Expense 3,135
273 2,862 Provision for Income Taxes 34,153 1,636 32,517 Net Income
(Loss) Before Accounting Change 55,098 2,346 52,752 Cumulative
Effect of Acctg Change -- -- -- Net Income (Loss) After Acctg
Change $55,098 $2,346 $52,752 Earnings per Share, Diluted (54,885
shares) $1.00 $0.04 $0.96 Earnings per Share, Basic (54,474 shares)
$1.01 $0.04 $0.97 (1) The non-GAAP pro forma net income results are
a supplement to the financial data based on accounting principles
generally accepted in the United States of America (GAAP). These
non-GAAP pro forma results reflect adjustments primarily to exclude
from operating results the financial statement information for
business units that have been identified for divestiture or
disposal and as such are not viewed by the company as part of the
ongoing business. The company believes this presentation provides
useful information to investors because it assists investors in
better understanding the company's operations for the full fiscal
year. It should be emphasized, however, that these measurements are
not a substitution for GAAP- based financial statements. Based in
St. Petersburg, FL, Catalina Marketing Corporation
(http://www.catalinamarketing.com/) was founded 20 years ago based
on the premise that targeting communications based on actual
purchase behavior would generate more effective consumer response.
Today, Catalina Marketing combines unparalleled insight into
consumer behavior with dynamic consumer access. This combination of
insight and access provides marketers with the ability to execute
behavior-based marketing programs, ensuring that the right consumer
receives the right message at exactly the right time. Catalina
Marketing offers an array of behavior-based promotional messaging,
loyalty programs and direct-to-patient information. Personally
identifiable data that may be collected from the company's targeted
marketing programs, as well as its research programs, are never
sold or given to any outside party without the express permission
of the consumer. Certain statements in the preceding paragraphs are
forward looking, and actual results may differ materially.
Statements not based on historic facts involve risks and
uncertainties, including, but not limited to, the changing market
for promotional activities, especially as it relates to policies
and programs of packaged goods and pharmaceutical manufacturers and
retailers, government and regulatory statutes, rules, regulations
and policies, the effect of economic and competitive conditions and
seasonal variations, actual promotional activities and programs
with the company's customers, the pace of installation of the
company's store network, the success of new services and businesses
and the pace of their implementation, the company's ability to
maintain favorable client relationships, the timing of the
completion of the company's future SEC filings, the outcome and
impact of an ongoing SEC investigation into certain of the
company's prior fiscal years, and the outcome and impact of the
pending shareholder class action and derivative lawsuits. Audio:
www.corporate-ir.net/ireye/ir_site.zhtml?ticker=POS&script=1010&item_id=918706
DATASOURCE: Catalina Marketing Corporation CONTACT: Investors,
Christopher W. Wolf, Chief Financial Officer, +1-727-579-5218, or
Joanne Freiberger, Vice President, Finance, +1-727-579-5116, or
Media, Susan Gear, Executive Director, Marketing, +1-727-579-5452,
all of Catalina Marketing Web site:
http://www.catalinamarketing.com/
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