Catalina Marketing Reports Financial Results for First Quarter
Fiscal 2005 Quarterly Report on Form 10-Q Filed Today with SEC ST.
PETERSBURG, Fla., Aug. 16 /PRNewswire-FirstCall/ -- Catalina
Marketing Corporation (NYSE:POS) today reported that the company
has filed its Quarterly Report on Form 10-Q for the quarter ended
June 30, 2004 with the Securities and Exchange Commission (SEC).
Investors are urged to review the 10-Q for a detailed discussion of
the financial results and business descriptions. For the
three-month period ended June 30, 2004, consolidated revenues grew
3.4% to $105.6 million, compared with revenues of $102.2 million
reported for the comparable prior year period. The company had
consolidated net income of $10.9 million, or $0.21 per diluted
share, for the first quarter of fiscal 2005 compared with net
income of $4.3 million, or $0.08 per diluted share, for the first
quarter of fiscal 2004. On a pro forma non-GAAP basis (to exclude
the results of businesses being planned for disposition, as
described further below), consolidated revenues increased 15.1% to
$95.4 million during the quarter ended June 30, 2004 from $82.9
million during the quarter ended June 30, 2003. Pro forma non-GAAP
consolidated net income was $13.4 million for the three months
ended June 30, 2004, as compared with $5.6 million of net income
for the comparable prior year period. Pro Forma Non-GAAP
Adjustments The pro forma non-GAAP financial information herein
includes the results of the company's ongoing business operations
and accordingly, excludes the financial results of the business
units targeted for divestiture by the company including Direct
Marketing Services (DMS), Japan Billboard and Catalina Marketing
Research Solutions (CMRS). Investors are urged to review the 10-Q
for a detailed discussion of the financial results and business
descriptions. Three Months Ended Three Months Ended June 30, 2004
June 30, 2003 Net Net (In thousands) Revenues Income Revenues
Income Catalina Marketing Services $63,402 $16,133 $59,599 $12,836
Catalina Health Resource 17,866 1,074 14,466 (1,997) International
14,246 801 9,111 (1,146) Corp / Elim (112) (4,645) (311) (4,083)
Total Strategic $95,402 $13,363 $82,865 $5,610 DMS $5,938 $(1,819)
$11,812 $(483) Japan Billboard 2,921 (181) 3,768 (1,138) CMRS 1,382
(437) 3,767 274 Total Non-Strategic $10,241 $(2,437) $19,347
$(1,347) Consolidated $105,643 $10,926 $102,212 $4,263 Dick Buell,
chief executive officer stated, "The results achieved in the first
quarter were encouraging, with all business segments outperforming
the prior year, except for those non-strategic units that we have
targeted for divestiture. We believe these results demonstrate that
the company has taken the necessary steps to develop a foundation
for future growth." Mr. Buell continued, "Looking forward to the
balance of fiscal year 2005, it is important to emphasize that
Catalina's management is committed to developing and implementing
initiatives that will grow revenues and profitability in the long
term. Therefore, in the future, the company does not presently
intend to provide guidance as to revenues or earnings expectations.
However, having been unable to publicly report results on a regular
basis during the past year, Catalina recognizes the importance of
providing directional guidance regarding the current fiscal year.
To establish a baseline for future comparison, we will refer to
numbers that have been adjusted to reflect the planned divestitures
of Japan Billboard, DMS and CMRS, as well as the removal of the
one-time deferral of revenues resulting from the prior years'
revenue recognition adjustments to Catalina Health Resource. With
those adjustments, fiscal year 2004 diluted earnings per share was
$1.06 and fiscal year 2003 diluted earnings per share was $0.98.
Operating income for adjusted fiscal year 2004 reached $89 million
and fiscal year 2003 netted out at $90 million. In fiscal year
2004, adjusted revenues rose to $397 million from revenues of $386
million in fiscal year 2003." Mr. Buell concluded, "Using the
adjusted baseline as a point of comparison, fiscal year 2005 is
projected to be a solid-performing year with flat revenues and
comparable profitability." Webcast Scheduled The company also
announced that it will host a webcast on Monday, August 16, 2004;
at 10:00 a.m. EDT to discuss its financial results as filed in its
first quarter 2005 report on Form 10-Q. The webcast may be accessed
at http://www.corporate-/
ir.net/ireye/ir_site.zhtml?ticker=POS&script=1010&item_id=926086,
and will be available for replay from Monday, August 16, 2004
through Thursday, September 16, 2004. Catalina Marketing
Corporation Selected Financial Data (in thousands, except per share
amounts) Three Months Ended Three Months Ended June 30 June 30 2004
2004 2003 2003 GAAP Pro Forma GAAP Pro Forma Revenues $105,643
$95,402 $102,212 $82,865 Direct Operating Expenses 41,678 33,788
46,805 32,812 Selling, General and Administrative 31,771 28,824
35,619 30,241 Impairment Charge 1,609 - - - Depreciation and
Amortization 12,198 11,552 11,804 11,159 Income from Operations
18,387 21,238 7,984 8,653 Other (Income) Expense 420 393 (198)
(250) Provision for Income Taxes 7,041 7,482 3,149 3,293 Net Income
before accounting change 10,926 13,363 5,033 5,610 Cumulative
effect of acctg change - - (770) - Net Income after acctg change
$10,926 $13,363 $4,263 $5,610 Basic: Earnings Per Share $0.21 $0.26
$0.08 $0.11 Weighted Average Shares Outstanding 52,227 52,227
52,536 52,536 Diluted: Earnings Per Share $0.21 $0.26 $0.08 $0.11
Weighted Average Shares Outstanding 52,245 52,245 52,569 52,569
Catalina Marketing Corporation Selected Other Data (in thousands,
except per share amounts) June 30 2004 2003 Balance Sheet and Cash
Flow (in thousands): Cash $71,467 $8,886 Stockholders' Equity
$194,668 $207,240 Cash Flows from Operating Activities $1,866
$17,279 U.S. Core Domestic Business: Number of Stores at Quarter
End 17,607 17,569 Net Stores Installed During Quarter 3 71
Promotions Printed During Quarter (in millions) 738 644 Weekly
Shopper Reach at Quarter End (in millions) 220 215 International
Business: Number of Stores at Quarter End 5,598 4,517 Net Stores
Installed During Quarter 53 448 Promotions Printed During Quarter
(in millions) 187 137 Weekly Shopper Reach at Quarter End (in
millions) 61 48 Catalina Marketing Corporation Reconciliation of
GAAP to Pro Forma Non-GAAP Net Income (1) (in thousands, except per
share amounts) Non-GAAP Pro Forma Non-GAAP Three Months Ended June
30, 2004 GAAP Adjustments Pro Forma Revenues $105,643 $10,241
$95,402 Direct Operating Expenses 41,678 7,890 33,788 Selling,
General and Administrative 31,771 2,947 28,824 Impairment Charge
1,609 1,609 - Depreciation and Amortization 12,198 646 11,552
Income from Operations 18,387 (2,851) 21,238 Other (Income) Expense
420 27 393 Provision for Income Taxes 7,041 (441) 7,482 Net Income
(Loss) $10,926 $(2,437) $13,363 Earnings per Share, Basic (52,227
shares) $0.21 $(0.05) $0.26 Earnings per Share, Diluted (52,245
shares) $0.21 $(0.05) $0.26 (1) The non-GAAP pro forma net income
results are a supplement to the financial data provided that is
based on generally accepted accounting principles (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 quarter. 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) Non-GAAP
Pro Forma Non-GAAP Three Months Ended June 30, 2003 GAAP
Adjustments Pro Forma Revenues $102,212 $19,347 $82,865 Direct
Operating Expenses 46,805 13,993 32,812 Selling, General and
Administrative 35,619 5,378 30,241 Depreciation and Amortization
11,804 645 11,159 Income from Operations 7,984 (669) 8,653 Other
(Income) Expense (198) 52 (250) Provision for Income Taxes 3,149
(144) 3,293 Net Income (Loss) before accounting change 5,033 (577)
5,610 Cumulative effect of acctg change (770) (770) - Net Income
(Loss) after acctg change $4,263 $(1,347) $5,610 Earnings per
Share, Basic (52,536 shares) $0.08 $(0.03) $0.11 Earnings per
Share, Diluted (52,569 shares) $0.08 $(0.03) $0.11 (1) The non-GAAP
pro forma net income results are a supplement to the financial data
provided that is based on generally accepted accounting principles
(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 quarter. 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 Adjusted Basis (1) (in thousands, except per
share amounts) Fiscal Year Ended March 31 Consolidated Revenues:
2004 2003 GAAP $472,950 $470,709 Adj. to reconcile GAAP to non-GAAP
Pro Forma (64,318) (86,861) CHR revenue adjustment (11,558) 1,668
Non-GAAP Pro Forma $397,074 $385,516 Consolidated Operating Income:
2004 2003 GAAP $12,726 $92,386 Adj. to reconcile GAAP to non-GAAP
Pro Forma 88,091 (4,255) CHR revenue adjustment (11,558) 1,668
Non-GAAP Pro Forma $89,259 $89,799 Consolidated Diluted EPS: 2004
2003 GAAP $(0.37) $1.00 Adj. to reconcile GAAP to non-GAAP Pro
Forma 1.56 (0.04) CHR revenue adjustment (0.13) 0.02 Non-GAAP Pro
Forma $1.06 $0.98 (1) The non-GAAP pro forma net income results are
a supplement to the financial data that is based on generally
accepted accounting principles (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, as well
as the one-time deferral of CHR revenues resulting from prior
years' revenue recognition adjustments. The company believes this
presentation provides useful information to investors because it
assists investors in better understanding the company's operations
for comparability with recurring results for the future. 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.
http://www.corporate-/ 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 Corporation
Web site: http://www.catalinamarketing.com/
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