ST. PETERSBURG, Fla., Jan. 26 /PRNewswire-FirstCall/ -- Catalina Marketing
Corporation (NYSE: POS) today reported financial results for its third fiscal
quarter and first nine months ended December 31, 2004.
For the three months ended December 31, 2004, consolidated revenues were
$100.3 million, compared with revenues of $101.9 million in the comparable
period last year. Consolidated net income for the third quarter was
$19.0 million, or $0.36 per diluted share, compared with a net loss of
$3.6 million, or $0.07 per diluted share, in the third quarter of fiscal 2004.
Third quarter results in fiscal 2005 included $1.4 million in losses from
discontinued operations due principally to losses from the disposal of non-
core businesses, compared with $18.8 million of losses from discontinued
operations, due principally from goodwill impairment charges, recognized in
the third quarter of fiscal 2004.
The company reported consolidated income from continuing operations for
the quarter ended December 31, 2004 of $20.4 million, or $0.39 per diluted
share, compared with $15.1 million, or $0.29 per diluted share, for the
quarter ended December 31, 2003.
During the quarter ended December 31, 2004, the company received a
favorable ruling related to a state sales tax assessment, and as a result,
reversed into income a $4.4 million accrued liability, which had been
recognized as expense in prior periods. The reversal of this liability
resulted in a favorable impact, net of related income taxes, of approximately
$0.05 per diluted share in the third quarter of fiscal 2005.
Dick Buell, Catalina president and chief executive officer, stated, "The
results achieved in the third quarter were impressive in our three continuing
business segments, and we are pleased with the overall year-to-date progress
in each of these businesses. We have divested our non-core businesses and
will continue to focus on key objectives to drive the future long-term growth
and profitability of the business."
Nine-Month Consolidated Results
For the nine months ended December 31, 2004, consolidated revenues were
$298.1 million, compared with revenues of $289.1 million in the same period
last year. The company reported consolidated income from continuing operations
of $52.6 million, or $1.01 per diluted share, for the first nine months of
fiscal 2005, compared with $36.7 million, or $0.71 per diluted share, for the
first nine months of fiscal 2004. Consolidated net income was $50.2 million,
or $0.96 per diluted share, for the first nine months of fiscal 2005, compared
with a net loss of $10.5 million, or $0.20 per diluted share, for the first
nine months of fiscal 2004.
Pro Forma Non-GAAP Adjustments
The pro forma non-GAAP basis results presented in this news release and
attached tables exclude the effect of CHR revenues recognized in fiscal 2004
that had been deferred from prior fiscal years.
Third quarter fiscal 2005 consolidated revenues reflect an increase of
2.9% compared with non-GAAP pro forma revenues of $97.5 million for the same
period last year. For the three months ended December 31, 2004, consolidated
income from continuing operations of $20.4 million, or $0.39 per diluted
share, compared with pro forma non-GAAP income from continuing operations of
$12.5 million, or $0.24 per diluted share, for the same period last year.
Consolidated revenues of $298.1 million for the nine months ended
December 31, 2004 reflect an increase of 6.6% compared with pro forma non-GAAP
revenues of $279.7 million for the same period last year. Consolidated income
from continuing operations of $52.6 million, or $1.01 per diluted share, for
the nine months ended December 31, 2004, compared with pro forma non-GAAP
income from continuing operations of $31.1 million, or $0.60 per diluted
share, for the same period last year.
Summary of Segment Results
Three Months Ended Three Months Ended
December 31, 2004 December 31, 2003
(In thousands) Revenues Income/(Loss) Revenues Income/(Loss)
Catalina Marketing
Services $65,499 $18,190 $69,001 $18,198
Catalina Health
Resource 19,797 3,707 17,246 1,529
International 15,004 1,610 11,476 (652)
Corp/Eliminations 19 (3,104) (214) (6,533)
Total Pro Forma(1) $100,319 $20,403 $97,509 $12,542
Catalina Health
Resource Adj.(1) -- -- 4,376 2,604
From Continuing
Operations $100,319 $20,403 $101,885 $15,146
Discontinued
Operations -- (1,432) -- (18,795)
Consolidated GAAP $100,319 $18,971 $101,885 $(3,649)
Nine Months Ended Nine Months Ended
December 31, 2004 December 31, 2003
(In thousands) Revenues Income/(Loss) Revenues Income/(Loss)
Catalina Marketing
Services $194,971 $53,219 $200,027 $49,904
Catalina Health
Resource 56,843 7,555 45,815 (1,281)
International 46,142 4,484 34,220 (715)
Corp/Eliminations 137 (12,639) (411) (16,799)
Total Pro Forma(1) $298,093 $52,619 $279,651 $31,109
Catalina Health
Resource Adj.(1) -- -- 9,421 5,550
From Continuing
Operations $298,093 $52,619 $289,072 $36,659
Discontinued
Operations -- (2,443) -- (46,386)
Cumulative Effect
of Acctg Change -- -- -- (770)
Consolidated GAAP $298,093 $50,176 $289,072 $(10,497)
(1) The non-GAAP pro forma revenue and net income results are a
supplement to the financial data that is based on generally accepted
accounting principles (GAAP). The non-GAAP pro forma results reflect
adjustments to exclude the one-time deferral of CHR revenues (and the related
tax effect) 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.
Review of Segment Operations
The company provided the following review and highlights of the
performance of Catalina Marketing's business segments:
* Catalina Marketing Services -- CMS revenues were $65.5 million in the
quarter ended December 31, 2004, compared with $69.0 million in the same
period last year. Net income from this segment for the third fiscal quarter
was $18.2 million in both fiscal 2005 and fiscal 2004. For the first nine
months of fiscal 2005, CMS revenues were $195.0 million and net income was
$53.2 million, compared with revenues and net income of $200.0 million and
$49.9 million, respectively, in the first nine months of fiscal 2004.
* Catalina Health Resource -- CHR revenues were $19.8 million and net
income was $3.7 million for the quarter ended December 31, 2004, compared with
revenues of $21.6 million and net income of $4.1 million for the same period
last year. CHR revenues grew 14.8% to $19.8 million in the third quarter of
the current fiscal year, compared with pro forma non-GAAP revenues of
$17.2 million in the same period last year. Net income for the three months
ended December 31, 2004 increased $2.2 million compared with pro forma non-
GAAP net income of $1.5 million for the comparable prior year period. For the
first nine months of fiscal 2005, CHR revenues were $56.8 million resulting in
net income of $7.6 million compared with $55.2 million in revenues and
$4.3 million in net income for the first nine months of fiscal 2004. On a pro
forma non-GAAP basis, fiscal 2004 year-to-date revenues were $45.8 million
with a net loss of $1.3 million.
* Catalina Marketing International -- CMI revenues increased 30.7% to
$15.0 million in the quarter ended December 31, 2004, compared with
$11.5 million in the same period last year. Net income for the quarter ended
December 31, 2004 was $1.6 million compared with a net loss of $0.7 million
for the comparable prior year period. Excluding the impact of favorable
foreign exchange rates, CMI third quarter fiscal 2005 revenues increased by
22% compared with the same period of fiscal 2004. For the first nine months
of fiscal 2005, CMI revenues were $46.1 million resulting in net income of
$4.5 million, compared with revenues of $34.2 million and a net loss of
$0.7 million, for the nine months ended December 31, 2003. Excluding the
impact of favorable foreign exchange rates, CMI nine-month revenues increased
23% compared with the first nine months of fiscal 2004.
Discontinued Operations
The company sold its Research Solutions business during the third quarter
of fiscal 2005. The aggregated results of this sale, as well as the
disposition of the company's Direct Marketing Services business and its Japan
Billboard business which occurred during the second quarter of fiscal 2005,
are reported in the income statement as "Discontinued Operations."
Catalina Marketing expects to file its Quarterly Report on Form 10-Q for
the quarter ended December 31, 2004, with the Securities and Exchange
Commission on or before February 9, 2005. Investors are urged to review the
Form 10-Q for a detailed discussion of the company's financial results and
business descriptions.
Webcast Scheduled
The company will host a webcast on Wednesday, January 26, 2005,
at 5:15 p.m. EST to discuss its financial results. The webcast may be
accessed at
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=POS&script=1010&item_id=998203
and will be available for replay from Wednesday, January 26, 2005 through
Thursday, February 24, 2005.
Catalina Marketing Corporation
Selected Other Data
(in thousands, except store data)
December 31 December 31
2004 2003
Balance Sheet and Cash Flow
(in thousands):
Cash $119,437 $25,382
Stockholders' Equity $222,114 $192,778
Cash Flows from Operating
Activities Qtr/YTD $29,291/$71,761 $31,854/$86,295
Catalina Marketing Services:
Number of Stores at Quarter End 17,712 17,582
Net Stores Installed During
Quarter/YTD 68/108 1/84
Promotions Printed During Quarter
/YTD (in millions) 813/2,403 783/2,250
Weekly Shopper Reach at Quarter End
(in millions) 221 211
Catalina Health Resource:
Number of Stores at Quarter End 12,380 15,813
Net Stores Installed (Deinstalled)
During Quarter/YTD 299/451 475/(2,014)
Catalina Marketing International:
Number of Stores at Quarter End 5,741 5,258
Net Stores Installed During
Quarter/YTD 41/196 182/741
Promotions Printed During Quarter/
YTD (in millions) 204/616 178/527
Weekly Shopper Reach at Quarter End
(in millions) 62 60
Catalina Marketing Corporation
Selected Financial Data
(in thousands, except per share amounts)
Periods Ended
December 31 Three Months Nine Months
2004 2003 2004 2003
Revenues $100,319 $101,885 $298,093 $289,072
Direct Operating
Expenses 26,200 32,479 91,715 99,725
Selling, General and
Administrative 31,365 31,676 88,705 92,479
Impairment Charge -- -- 288 --
Depreciation and
Amortization 10,202 11,168 32,360 33,504
Income from
Operations 32,552 26,562 85,025 63,364
Other (Income)
Expense (255) 567 12 528
Provision for Income
Taxes 12,404 10,849 32,394 26,177
Income from
Continuing
Operations 20,403 15,146 52,619 36,659
Gain (Loss) from
Discontinued
Operations 292 (18,795) (4,002) (46,386)
Gain (Loss) from
Disposition (1,724) -- 1,559 --
Income (Loss) from
Discontinued
Operations (1,432) (18,795) (2,443) (46,386)
Cumulative Effect of
the change in
accounting princ. -- -- -- (770)
Net Income (Loss) $18,971 $(3,649) $50,176 $(10,497)
Earnings Per Share,
Basic:
Earnings Per Share
from Continuing
Operations $0.39 $0.29 $1.01 $0.71
Income (Loss) from
Discontinued
Operations $(0.03) $(0.36) $(0.05) $(0.89)
Cumulative Effect of
the change in
accounting princ. -- -- -- $(0.02)
Net Income (Loss) Per
Common Share $0.36 $(0.07) $0.96 $(0.20)
Weighted Average
Shares Outstanding 52,300 52,229 52,266 52,328
Earnings Per Share,
Diluted:
Earnings Per Share
from Continuing
Operations $0.39 $0.29 $1.01 $0.71
Income (Loss) from
Discontinued
Operations $(0.03) $(0.36) $(0.05) $(0.89)
Cumulative Effect of
the change in
accounting princ. -- -- -- $(0.02)
Net Income (Loss) Per
Common Share $0.36 $(0.07) $0.96 $(0.20)
Weighted Average
Shares Outstanding 52,720 52,229 52,334 52,328
Catalina Marketing Corporation
Reconciliation of GAAP to Pro Forma Non-GAAP Adjusted Basis (1)
(in thousands)
As of December 31, 2003
Three Months Nine Months
ended ended
Revenue
As presented, GAAP basis $21,622 $55,236
Revenue recognition adjustment (4,376) (9,421)
Non-GAAP, pro forma revenue $17,246 $45,815
Net Income
As presented, GAAP basis $4,133 $4,269
Revenue recognition adjustment (2,604) (5,550)
Non-GAAP, pro forma net income $1,529 $(1,281)
(1) The non-GAAP pro forma revenue and net income results are a
supplement to the financial data that is based on generally accepted
accounting principles (GAAP). The non-GAAP pro forma results reflect
adjustments to exclude the one-time deferral of CHR revenues (and the related
tax effect) 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 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.
SOURCE Catalina Marketing Corporation
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Related links:
http://www.catalinamarketing.com
Audio:http://www.corporate-
ir.net/ireye/ir_site.zhtml?ticker=POS&script=1010&item_id=998203
CONTACT:
Investors, Robert Woltil, Interim Chief
Financial Officer, +1-727-579-5307, or Joanne Freiberger, Vice
President, Finance, +1-727-579-5116, or media, Michelle Bauer,
Executive Director, Marketing Communications, +1-727-579-5129,
all of Catalina Marketing Corporation
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