INVESTORS: Catalina can give no assurance that the financial information
contained herein will not be subject to further adjustment. All financial
information contained herein is unaudited. The audits, which are in a
preliminary stage, may also result in changes to such financial information.
ST. PETERSBURG, Fla., Jan. 22 /PRNewswire/ -- Catalina Marketing
Corporation (NYSE: POS) today announced unaudited financial and operating
metrics for its third fiscal quarter ended December 31, 2003, and fiscal year
to date, with comparisons to prior periods.
As previously announced, the company is undergoing re-audits of its fiscal
2002 and 2001 financial statements and has not yet completed the audit for
fiscal 2003. Due to the status of these audits, the company has delayed the
filing of its annual report on Form 10-K for fiscal 2003, ended March 31,
2003, as well as its quarterly reports on Form 10-Q for the first and second
quarters of fiscal 2004, ended June 30, 2003 and September 30, 2003,
respectively. Since the audits are not yet complete, Catalina will file a
notification of late filing with the Securities and Exchange Commission, under
Rule 12b-25, to delay the filing of its quarterly report on Form 10-Q, for the
third quarter of fiscal 2004, ended December 31, 2003.
In lieu of being able to provide financial information in the ordinary
course, the company is announcing certain unaudited financial and operating
metrics for the first three quarters of fiscal 2004, with comparisons to prior
periods. All financial and operating information contained herein is
unaudited, and as such, the company can give no assurance that the financial
information contained herein will not be subject to adjustment. The company
intends to publish similar information on a quarterly basis until it is able
to return to its standard reporting practices.
FINANCIAL METRICS
For the third quarter of fiscal 2004, ended December 31, 2003, Catalina
Marketing's cash flow from operations was $32.0 million, a 34% increase from
$23.8 million in the same period of the prior fiscal year. Capital
expenditures for the third quarter totaled $5.2 million, a decrease from the
prior year period's expenditures of $9.9 million. The company's total debt at
the end of the fiscal third quarter 2004 totaled $65.3 million, compared to
$73.5 million at the end of the prior quarter. During the third quarter of
fiscal 2004, the company paid down the $11.0 million balance outstanding on
its domestic credit facility at the end of the second quarter of fiscal 2004.
The total debt at December 31, 2003 includes the company's obligation for its
corporate headquarters facility in St. Petersburg, Florida of $29.6 million
due to the adoption of Financial Accounting Standards Board Interpretation No.
46, "Consolidation of Variable Interest Entities," which became effective for
the company in the second quarter of fiscal 2004. The company's Japanese
operation's debt balance at the end of the third quarter of fiscal 2004
totaled $35.8 million, compared to a balance of $32.9 million at the end of
the second quarter of fiscal 2004. Approximately $2.2 million of the $2.9
million increase in Japanese debt was attributable to currency fluctuation.
Cash balances at the end of the third quarter of fiscal 2004 were $25.4
million, compared to $9.2 million at the end of the second quarter.
The company's cash flow from operations for the nine months ended December
31, 2003 was $85.7 million, a 14% increase from the comparable prior year
nine-month cash flow of $75.1 million. Capital expenditures for the first
nine months of fiscal 2004 totaled $20.8 million, compared to $24.0 million
for the same nine-month period of the prior year. As of December 31, 2003,
the company's cash balance increased to $25.4 million from $1.3 million at
March 31, 2003.
OPERATING METRICS
The company's installed store base in its core domestic business
increased to 17,582 as of December 31, 2003, compared to 17,333 stores at
December 31, 2002. During the nine months ended December 31, 2003, the
company had net installations of 84 stores. The core domestic business
printed 783 million promotions during the fiscal 2004 third quarter and 2.3
billion promotions for the nine months ended December 31, 2003, reaching more
than 211 million consumers. In the third quarter and nine months ended
December 31, 2002, the core domestic business printed 883 million and over 2.4
billion promotions, respectively, reaching 212 million consumers. The
decreased level of promotional activity, in both the third quarter and the
fiscal year 2004, was primarily related to decreases in spending by certain
consumer product manufacturers within cycles and categories.
Catalina Marketing Europe's installed store base grew to 4,420 stores at
December 31, 2003 compared to its total installed store base of 3,551 at
December 31, 2002. The company completed installations in 471 stores on a net
basis for the nine months ended December 31, 2003. The store base in Catalina
Marketing Japan more than doubled to 1,125 stores at December 31, 2003 from
518 stores at December 31, 2002. Catalina Marketing International printed 230
million promotions during the third quarter of fiscal 2004 and 620 million
promotions for the nine months ended December 31, 2003, reaching more than 65
million shoppers. In the third quarter and nine months ended December 31,
2002, Catalina Marketing International printed 156 million and 364 million
promotions, respectively, reaching more than 47 million shoppers.
The Catalina Health Resource (CHR) installed store base of 15,813 as of
December 31, 2003, represents a net increase of 671 stores for the nine-month
period, excluding the previously disclosed deinstallation of approximately
2,685 Eckerd stores at the beginning of fiscal 2004. CHR had a total
installed store base of 15,813 pharmacies as of December 31, 2003, compared to
17,686 pharmacies at December 31, 2002.
UNAUDITED OPERATING AND FINANCIAL METRICS - Catalina can give no assurance
that the financial information contained herein will not be subject to further
adjustment. All financial information contained herein is unaudited. The
audits, which are in a preliminary stage, may also result in changes to such
financial information.
(in millions,
except store
counts) FY04
Q1 Q2 Q3 YTD
CASH $8.7 $9.2 $25.4 $25.4
TOTAL DEBT $51.0 **$73.5 **$65.3 **$65.3
CASH FLOW
FROM
OPERATIONS $16.5 $37.2 $32.0 $85.7
CAPITAL
EXPENDITURES $8.8 $6.8 $5.2 $20.8
STORES
Domestic 17,569 17,581 17,582 17,582
Europe 4,135 4,255 4,420 4,420
Japan 941 1,003 1,125 1,125
CHR 15,262 15,338 15,813 15,813
PROMOTIONS
Domestic 648 819 783 2,250
International 212 178 230 620
SHOPPER REACH
Domestic 215 209 211 211
International 59 60 65 65
FY03
Q1 Q2 Q3 YTD
CASH $7.3 $5.2 $6.8 $6.8
TOTAL DEBT $38.0 $36.6 $55.9 $55.9
CASH FLOW
FROM
OPERATIONS $22.5 $28.9 $23.7 $75.1
CAPITAL
EXPENDITURES $4.1 $10.0 $9.9 $24.0
STORES
Domestic 16,480 16,726 17,333 17,333
Europe 3,115 3,291 3,551 3,551
Japan 504 507 518 518
CHR 17,687 17,624 17,686 17,686
PROMOTIONS
Domestic 736 794 883 2,413
International 113 95 156 364
SHOPPER REACH
Domestic 210 202 212 212
International 38 40 47 47
** Total debt for the second and third quarters of fiscal 2004, includes
the consolidation of the $29.6 million synthetic lease related to the
company's corporate headquarters facility.
Based in St. Petersburg, Fla., Catalina Marketing Corporation
(http://www.catalinamarketing.com) provides a wide range of behavior-based marketing
services for manufacturers and retailers. These behavior-based marketing
services are provided by interrelated operating groups that strive to
influence the purchase behavior of consumers wherever and whenever they make
purchase decisions. Through these operating groups, Catalina Marketing
Corporation is able to reach consumers internationally and domestically -- in-
store, using incentives, loyalty programs and advertising messages, and at-
home, through direct mail and sampling. Personally identifiable data that may
be collected from the company's targeted marketing programs, as well as its
research programs, is 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 for the issuance
of certain product coupons and other promotions, 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 policies and programs of the company's retail
partners, the success of new services and businesses and the pace of their
implementation, and the company's ability to maintain favorable client
relationships.
SOURCE Catalina Marketing Corporation
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Related links:
http://www.catalinamarketing.com
CONTACT:
Investors, Christopher W. Wolf, Executive
Vice President and 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
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