ST. PETERSBURG, Fla., April 15 /PRNewswire-FirstCall/ -- Catalina
Marketing Corporation (NYSE: POS) today provided an estimate of its revenue
and earnings for the fourth quarter and the fiscal year ended March 31, 2003.
The estimate is based on preliminary fourth quarter results and replaces
previous guidance given in the company's press release and Investor Conference
on March 7, 2003. The company expects to announce the final results for the
fourth quarter and full fiscal year on May 8, 2003.
Catalina's consolidated revenue estimate for the quarter ended March 31,
2003 ranges from one percent below to one percent above the fourth quarter of
the prior fiscal year. Revised estimates for the full fiscal year ended March
31, 2003 are that consolidated revenue will grow between six and seven percent
over the prior fiscal year.
The company expects fourth quarter earnings of approximately $0.10 to
$0.12 per diluted share, after a fourth quarter non-cash charge of
$10.5 million, or $0.20 per diluted share, related to an impairment charge
against goodwill and other intangible assets in Catalina Marketing UK. For
the year ended March 31, 2003, earnings are estimated to be in the range of
$0.79 to $0.81 per diluted share, net of the $10.5 million, or $0.19 per
diluted share, fourth quarter non-cash charge described above and the
$2.5 million, or $0.05 per diluted share, previously disclosed second quarter
non-cash charge to recognize impairment in the carrying value of certain cost-
based investments.
Prior to the impact of the impairment charge, expected earnings for the
fourth quarter are projected to be approximately $0.30 to $0.32 per diluted
share compared to $0.40 per diluted share in the fourth quarter of the prior
year. Excluding the previously disclosed second quarter and current fourth
quarter charges, earnings per share estimates for the year ended March 31,
2003 would have been approximately $1.03 to $1.05 per diluted share, compared
to $1.08 per diluted share reported in the prior year.
The company had previously provided fourth quarter earnings per diluted
share guidance of $0.41 to $0.43. During the fourth quarter Catalina Health
Resource continued to see a reduction in promotional spending and, as a
result, revenue in that business unit is estimated to have declined
approximately 28% to 30% versus the prior year fourth quarter. The shortfall
at Catalina Health Resource will reduce earnings by approximately $0.07 per
diluted share from the previous guidance. The company also chose to incur
fourth quarter operating costs that were higher than anticipated at the time
of previous guidance. These operating costs are estimated to have a net
negative impact on earnings of approximately $0.04 per diluted share.
Daniel D. Granger, Chairman and Chief Executive Officer, commented, "The
fourth quarter results were disappointing. While most of our business units
performed fairly well and in accordance with our previous guidance, Catalina
Health Resource, our targeted newsletter solution for pharmacies, experienced
a disappointing fourth quarter with a significant shortfall in revenue. The
business continues to be negatively impacted by a challenging environment in
which our pharmaceutical clients and retail pharmacies remain cautious in
their program participation. Additionally, our Catalina Marketing UK business
model no longer supports its asset carrying value and, accordingly, it was
appropriate to recognize an expense for the impairment of assets. While we
are disappointed in our results in the current quarter, we remain focused and
committed to executing our long-term strategic behavior-based targeted
marketing initiatives."
In addition to Catalina Marketing UK, the company tested several business
units for goodwill and other intangible asset impairment during the fourth
quarter. The Japan Out-of-Home billboard business was not impaired based on
the analysis as of March 31, 2003. Effective May 2003, the minority
shareholders in the Japanese venture have the right to sell their interest in
the Japan billboard business back to the company. Management believes it is
likely that the minority shareholders will exercise their right to sell, which
will result in the company recognizing a substantial non-cash goodwill
impairment charge in the range of $20 million to $25 million in the first
quarter of fiscal 2004.
Conference Call -- The Company will host a conference call Tuesday, April
15, 2003 at 11:00 AM EDT to discuss the company's updated earnings estimate.
The dial-in number is (800) 863-4938 and the International dial number is
(706) 645-0372. Rebroadcast of the call will be available from 3:00 PM EDT on
April 15, 2003 until midnight EDT on Tuesday, April 22, 2003. The replay
number is (800) 403-4440 and the International replay number is
(706) 645-6523.
Based in St. Petersburg, Florida, 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 multiple consumer access vehicles,
reaching consumers at home, in-store and online. 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. Through its operating divisions, Catalina
Marketing offers an array of behavior-based promotional messaging, product
sampling, loyalty programs, direct to patient information and market research
services. 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 manufacturers for the issuance of certain product
coupons, 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,
and the company's ability to maintain favorable client relationships.
SOURCE Catalina Marketing Corporation
 back to top
Related links:
http://www.catalinamarketing.com
CONTACT:
Christopher W. Wolf, Chief Financial Officer,
+1-727-579-5218, or Joanne Freiberger, Vice President - Finance,
+1-727-579-5116, both of Catalina Marketing Corporation
|
