ST. PETERSBURG, Fla., April 18 /PRNewswire-FirstCall/ --
Catalina Marketing Corporation (NYSE: POS) today reported results for its
fourth quarter and fiscal year ended March 31, 2002. Revenue for the quarter
grew 18 percent to $133.5 million compared to $113.4 million in the prior year
fourth quarter. Net income for the quarter totaled $22.7 million, or 40 cents
per diluted share, compared to $14.5 million, or 25 cents per diluted share,
for the prior year period.
As described below, the company implemented Statement of Financial
Accounting Standard No. 142 (SFAS 142) as of the beginning of the current
fiscal year, relating to the accounting for goodwill. As a result of adopting
the new standard, the company's net income and diluted earnings per share were
increased during the fourth quarter by approximately $1.6 million and 3 cents,
respectively. Under the new standard, pro forma net income for the fourth
quarter of the prior year would have been $15.5 million, or 27 cents per
diluted share.
For the twelve months ended March 31, 2002, revenue totaled
$446.7 million, up 7 percent compared to $417.9 million for the prior year.
Net income for the current fiscal year totaled $61.9 million, compared to
$58.1 million for the annual period last year. For fiscal year 2002, earnings
per diluted share were $1.08, compared to earnings per diluted share of $1.00
in fiscal year 2001. Under SFAS 142, pro forma net income for the prior year
twelve-month period would have been $61.7 million, or $1.06 per diluted share.
Daniel D. Granger, President and Chief Executive Officer, commented, "The
fourth quarter provided a strong finish to our fiscal year. Our results were
driven by the performance of the core domestic business, which posted
quarterly revenue growth of approximately 18 percent. This is a remarkable
achievement in the current uncertain economic environment and when compared to
the prior year fourth quarter, which had experienced quarterly revenue growth
of approximately 28 percent over the comparable fiscal 2000 quarter. Health
Resource was another catalyst, achieving quarterly revenue growth of
approximately 91 percent and posting its fifth consecutive quarter and first
full year of profitability."
Commenting on the upcoming first quarter and fiscal year, Granger
remarked, "As we have previously stated, our expectation is for annual
consolidated revenue and earnings growth of between 20 and 25 percent for our
fiscal 2003 year. For the first quarter, we expect consolidated revenue and
earnings to grow between 10 and 15 percent over the prior year first quarter.
Although the growth rates in the first quarter are less than the annual
targets, the first quarter targeted growth rates are consistent with our
previous expectations and we remain committed to our consolidated revenue and
earnings growth rate objectives for the fiscal year."
Operating and corporate highlights for the quarter and the fiscal year
included the following:
Catalina Marketing Services Worldwide
* Core Domestic Business - Revenue in the fourth quarter increased
approximately 18 percent over the comparable prior year period. On an annual
basis, revenue in the core domestic business grew by approximately 3 percent
over the previous fiscal year. The company's U.S. installed store base
totaled 16,488 stores at the end of the quarter, compared to 15,475 at the end
of the prior fiscal year. There was a net decrease of 15 stores in the
company's installed store base this quarter.
* European Operations - The European business, which consists of in-store
operations in France, Italy and the United Kingdom, experienced a decrease in
revenue from the prior year fourth quarter of approximately 4 percent. The
company completed the installation of 43 stores on a net basis during the
quarter, for a total installed store base at the end of the period of 2,897
stores. The European business loss approximated 2 cents per company diluted
share this quarter. For the fiscal year, the European operations loss
approximated 3 cents per company common diluted share.
* Japanese Joint Venture - The company's Japanese joint venture
experienced a quarterly revenue decline of approximately 30 percent compared
to the fourth quarter of the prior year, caused by a decline in revenue in the
Out-of-Home business. At the end of the fiscal year, the company's Japanese
joint venture's network had a total installed store base of 484 stores. The
company's portion of the net loss in its Japan joint venture approximated 1
cent and 5 cents, per company common diluted share this quarter and this
fiscal year, respectively.
Health Services Marketing
* Health Resource Publishing - Revenue for the quarter increased
approximately 91 percent over the comparable prior year period. For the
fiscal year, revenue increased by approximately 99 percent compared to the
prior year twelve-month period. Health Resource Publishing added 94 stores on
a net basis in the quarter, for a total of 17,716 pharmacy outlets at the end
of the year. The company's portion of the net income of Health Resource
Publishing approximated 3 cents per company common diluted share this quarter.
For the fiscal year, Health Resource Publishing contributed approximately
7 cents per company common diluted share.
Catalina Marketing Solutions
* Catalina Interactive Marketing Services - CIMS experienced a decrease in
revenue of approximately 75 percent from the comparable prior year quarter.
For the twelve-month period, CIMS' revenue decreased by approximately
63 percent compared to the prior fiscal year period. At the end of the fiscal
year, ValuPage(R) (http://www.valupage.com) was accepted in 14,049 supermarkets
within the Catalina Marketing Network(R). CIMS' net loss for the quarter and
fiscal year approximated 1 cent and 5 cents per company common diluted share,
respectively.
Catalina Marketing Research
Research Operations - Revenue in the company's research operations
decreased approximately 9 percent compared to the prior year fourth quarter.
For the fiscal year ended March 31, 2002, revenue increased approximately
7 percent over fiscal year 2001. The company's research operations are
conducted by Alliance Research, which leverages the value of Catalina data in
attitudinal research applications. Earnings for the research operations were
equal to approximately 1 cent per company common diluted share this quarter.
For the fiscal year, the research operations contributed approximately 4 cents
per company common diluted share.
Corporate
* Stock Repurchase - The company did not repurchase any shares of its
common stock during the fourth quarter. In July 2001, the Board of Directors
authorized the repurchase of $75 million of the company's common stock. The
company currently has Board authorization to repurchase an additional
$43.6 million of common stock under the July 2001 authorization. During the
fiscal year, the company purchased 1,621,100 shares of its common stock for a
total of $46.5 million, for an average price of $28.70 per share.
* Amortization of Goodwill - Effective April 1, 2001, the company adopted
Statement of Financial Accounting Standard No. 142, Goodwill and Other
Intangible Assets. Under the new standard, goodwill is capitalized as an
asset on the balance sheet without any annual amortization expense. The asset
will be tested for impairment, no less frequently than annually, and if
impairment has occurred, an appropriate amount will be expensed on the income
statement.
* Conference Call - The company will host a conference call today,
April 18, 2002 at 5:00 PM Eastern Time to discuss the company's results. The
dial-in number is (800) 863-4938. Rebroadcast of the call will be available
from 9:00 PM on April 18 until midnight on Friday, April 26. The replay
number is (800) 403-4440.
Based in St. Petersburg, Fla., Catalina Marketing Corporation
(http://www.catalinamarketing.com) provides a wide range of strategic, targeted
marketing solutions for consumer goods companies and retailers. The targeted
marketing services of the company are provided by interrelated operating
groups that strive to influence the purchasing behavior of consumers wherever
and whenever they make purchase decisions. Through these operating groups,
Catalina Marketing is able to reach consumers internationally and domestically
-- in-store, using incentives, loyalty programs, sampling and advertising
messages; at home, through direct mailings; and online. Personally
identifiable data that may be collected from the company's targeted marketing
programs, as well as its research programs, will not be 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.
- Financial Tables Follow -
Catalina Marketing Corporation
Selected Financial Data
(in thousands, except per share amounts)
Three Months Twelve Months
Periods Ended March 31 2002 2001 2002 2001
Revenue $133,536 $113,360 $446,668 $417,881
Direct Operating Expenses 55,668 48,812 193,121 174,237
Selling, General and
Administrative 30,929 29,580 111,492 106,382
Depreciation and
Amortization 10,536 11,550 42,032 43,243
Income from Operations 36,403 23,418 100,023 94,019
Interest Income/(Expense)
and Other (698) (93) (2,619) (2,081)
Minority Interest 8 45 28 1,142
Provision for Income
Taxes 13,031 8,865 35,552 34,945
Net Income * $22,682 $14,505 $61,880 $58,135
Diluted:
Earnings Per Share * $0.40 $0.25 $1.08 $1.00
Weighted Average Shares
Outstanding 56,984 57,584 57,104 57,919
Basic:
Earnings Per Share * $0.41 $0.26 $1.11 $1.04
Weighted Average Shares
Outstanding 55,458 55,936 55,922 55,767
Selected Other Data
March 31
2002 2001
Balance Sheet and Cash Flow
(in thousands):
Cash $13,276 $7,280
Stockholders' Equity 254,868 211,597
Twelve Month EBITDA 142,055 137,262
U.S. Checkout Coupon Business:
Number of Stores at Quarter End 16,488 15,475
Net Stores Installed
During Quarter / YTD -15/1,013 304/1,959
Promotions Printed During
Quarter / YTD (in millions) 959/3,230 856/3,341
Weekly Shopper Reach at
Quarter End (in millions) 204 185
International Checkout Coupon Business:
Number of Stores at Quarter End 3,381 2,617
Net Stores Installed
During Quarter / YTD 43/764 70/30
Promotions Printed During
Quarter / YTD (in millions) 91/368 76/489
Weekly Shopper Reach at
Quarter End (in millions) 36 30
* Under SFAS 142, for the three months ended March 31, 2001, pro forma net
income would have been $15.5 million, diluted earnings per share
would have been 27 cents and basic earnings per share would have been
28 cents. For the twelve months ended March 31, 2001, under SFAS 142,
pro forma net income would have been $61.7 million, diluted earnings per
share would have been $1.06 and basic earnings per share would have been
$1.11.
SOURCE Catalina Marketing Corporation
 back to top
Related links:
http://www.catmktg.com
CONTACT:
Joseph P. Port, Chief Financial Officer,
+1-727-579-5006, or Christopher W. Wolf, Vice President -
Finance, +1-727-579-5218, both of Catalina Marketing Corporation
|
