INVESTORS: ALL FINANCIAL AND STATISTICAL INFORMATION CONTAINED HEREIN IS
UNAUDITED. THE COMPANY HAS INCLUDED THE ESTIMATED IMPACT OF ITS CURRENT
RESTATEMENT ANALYSIS IN THIS RELEASE. CATALINA CAN GIVE NO ASSURANCE THAT THE
AGGREGATE ADJUSTMENTS TO THE FINANCIAL INFORMATION CONTAINED HEREIN ARE FINAL
OR THAT ALL ADJUSTMENTS NECESSARY TO PRESENT ITS FINANCIAL STATEMENTS IN
ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPALS (GAAP) HAVE BEEN
IDENTIFIED.
INVESTORS ARE URGED TO REVIEW THE FULL AUDITED FINANCIAL STATEMENTS FOR THE
YEARS ENDED MARCH 31, 2003, 2002 AND 2001, AND THE NOTES THERETO, WHICH ARE TO
BE FILED AS PART OF THE COMPANY'S REPORT ON FORM 10-K COVERING SUCH YEARS,
EXPECTED TO BE FILED ON OR ABOUT MAY 17, 2004. IN ANY CASE, THE COMPANY'S
PREVIOUSLY FILED FINANCIAL STATEMENTS SHOULD NOT BE RELIED UPON.
ST. PETERSBURG, Fla., May 3 /PRNewswire-FirstCall/ -- Catalina Marketing
Corporation (NYSE: POS) today announced the financial results it expects to
report for fiscal year 2003, and the restated financial results for fiscal
years 2002 and 2001.
The Company expects to report consolidated revenues for the three years
ended March 31, 2003, 2002 and 2001 of $470.7 million, $442.7 million and
$413.1 million, respectively. The Company expects to report consolidated net
income of $56.4 million, $59.2 million and $47.5 million, for fiscal years
2003, 2002 and 2001, respectively. Consolidated earnings per share (EPS) for
fiscal years 2003, 2002 and 2001 are expected to be reported as $1.03, $1.04
and $0.82, respectively. The financial results for fiscal 2003 had previously
been reported in a press release dated May 8, 2003, and the financial results
for fiscal 2002 and 2001 had previously been reported in audited financial
statements as part of the Company's filings on Form 10-K for those years. The
consolidated revenues announced today reflect adjustments to the previously
reported amounts and are related primarily to the timing of revenue
recognition. The Company anticipates that aggregate revenues will remain
substantially unchanged as they are realized over the life of customer
contracts; however, the timing of the revenue recognition on certain customer
contracts will change, and some amount of such revenue is expected to be
included in results for the year ended March 31, 2004 or future periods.
The Company is preparing its report on Form 10-K, which will include
audited financial statements for fiscal year 2003, and restated audited
financial statements for fiscal years 2002 and 2001. The report on Form 10-K
is expected to be filed on or about May 17, 2004. Catalina will host a
conference call following the filing of its report on Form 10-K to discuss the
financial results for fiscal years 2003, 2002 and 2001.
Anticipated Restatement Adjustments
The following tables reflect the anticipated restatement adjustments for
2003, 2002 and 2001 on revenues, net income and EPS. Catalina can give no
assurance that the aggregate adjustments to the financial information
contained herein are final or that all adjustments necessary to present its
financial statements in accordance with GAAP have been identified.
Anticipated Adjustments to 2003, 2002 and 2001 Financial Results
($ in 000's, except EPS) Fiscal Year ended,
March 31 (UNAUDITED)
Fiscal 2003 As Reported Adjustments As Restated
Revenue $474,352 ($3,643) $470,709
Net Income $43,376 $13,030 $56,406
Earnings per Share* $0.79 $0.24 $1.03
Fiscal 2002
Revenue $446,668 ($3,966) $442,702
Net Income $61,880 ($2,667) $59,213
Earnings per Share* $1.08 ($0.04) $1.04
Fiscal 2001
Revenue $417,881 ($4,778) $413,103
Net Income $58,135 ($10,599) $47,536
Earnings per Share* $1.00 ($0.18) $0.82
*Earnings per Share are fully diluted
Nature of Anticipated Financial Restatements
The anticipated financial results and restated financial results are based
on an extensive review directed by the Audit Committee of Catalina's Board of
Directors and management of the Company. The Audit Committee and the
Company's management have conducted a review of the financial results for the
fiscal years of 2003, 2002 and 2001, and as indicated in the table above, the
restated financial results include adjustments to both revenue and net income.
Adjustments to revenue relate primarily to the timing of revenue recognition.
The Company anticipates that aggregate revenues will remain substantially
unchanged as they are realized over the life of customer contracts; however,
the timing of the revenue recognition on certain customer contracts will
change, and some amount of such revenue is expected to be included in results
for the year ended March 31, 2004 or future periods. Catalina has also
identified other accounting adjustments requiring restatement that impact
various areas of the Company's financial statements such as adjustments
related to the timing of the impairment of assets and timing of expense
recognition. These other adjustments are captured in the anticipated restated
financial results set forth above and will be detailed further in the
Company's report on Form 10-K. Additionally, certain adjustments, primarily
related to impairment of assets, will be recorded for periods prior to fiscal
2001 and will be detailed further in the forthcoming Form 10-K. Catalina can
give no assurance that the aggregate adjustments to the financial information
contained herein are final or that all adjustments necessary to present its
financial statements in accordance with GAAP have been identified. All
financial results should be reviewed in the context of the full audited
financial statements, and notes thereto, and the other information to be
included in the Company's report on Form 10-K which is expected to be filed on
or about May 17, 2004.
Investigation Update
On March 9, 2004, the Company announced that it was informed that the
Securities and Exchange Commission (SEC) had issued a formal order in
connection with its investigation of certain aspects of the Company's
financial accounting policies. Catalina is cooperating with the agency and
will continue to do so in order to bring the inquiry to a conclusion as
promptly as possible. The Company has alerted the SEC that it intends to
restate financial information for the relevant periods.
No Impact Expected on Credit Facility
The Company expects that the restatements will not have an impact on its
credit facilities and that it will remain in compliance with all related
financial covenants.
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 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,
the Company's ability to maintain favorable client relationships, the timing
of completion of the Company's audits, the timing of the completion of the
Company's future SEC filings, the nature and extent of any changes to the
Company's audits and re-audits, the outcome and impact of the ongoing SEC
investigation, the outcome of the resolution of the other reportable events
disclosed in the Company's Form 8-K dated August 20, 2003, and the outcome and
impact of the pending shareholder class action.
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 for Catalina Marketing Corporation
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