ST. PETERSBURG, Fla., May 17 /PRNewswire-FirstCall/ -- Catalina Marketing
Corporation (NYSE: POS) today reported that it has completed the restatement
of its financial statements and has filed with the Securities and Exchange
Commission (SEC) its Annual Report on Form 10-K for the fiscal year ended
March 31, 2003, which includes audited financial statements for fiscal years
2003, 2002 and 2001. These financial statements reflect adjustments to
previously announced unaudited results for fiscal year 2003, and include
restated financial statements for fiscal years 2002 and 2001.
"The Audit Committee has conducted a thorough review of all issues related
to the fiscal years 2001 through 2003," said L. Dick Buell, chief executive
officer. "The final results confirm that the primary issues were related to
the timing of certain revenue recognition, and also include changes relating
to the timing of certain expense items. In particular, expenses were affected
by the timing of non-cash write-offs of goodwill relating to the loss of value
of certain of our operating units." The Company reiterated that the
restatements did not have an impact on its credit facilities and that it is
currently in compliance with all related financial covenants.
For the three fiscal years ended March 31, 2003, 2002 and 2001, the
Company reported consolidated financial results as follows (in millions,
except per share amounts):
Year Ended Year Ended Year Ended
March 31, 2003 March 31, 2002 March 31, 2001
Revenues $470.7 $442.7 $413.1
Net Income $55.1 $58.6 $47.2
Earnings per share,
diluted $1.00 $1.03 $0.81
In addition to the adjustments reported in the Company's May 3, 2004 news
release, Catalina has made three additional adjustments to its 2003, 2002 and
2001 results. Further analysis performed during the preparation of its Annual
Report on Form 10-K identified these additional adjustments, which were
necessary to present the Company's financial statements in accordance with
accounting principles generally accepted in the United States of America (U.S.
GAAP). The Company has made the following additional adjustments:
-- An adjustment was recorded by the Company for the proper amortization
of prior service costs related to the implementation of its
postretirement healthcare benefit plan. While the aggregate expense
related to the implementation of the postretirement healthcare benefits
will remain unchanged, the adjustment caused these expenses to decrease
by $1.1 million in fiscal year 2002, and to increase by $0.7 million in
fiscal year 2003, with the remainder of the expense to be recognized in
future periods.
-- An adjustment was made to expense bonus compensation, paid directly by
the previous owner, at Research Solutions. This adjustment caused
selling, general and administrative expenses to increase by $0.7
million in fiscal year 2002.
-- During the Company's re-examination of the lease transaction governing
its corporate headquarters, it determined that the related lease should
have been accounted for as a capital lease rather than an operating
lease. The Company restated its financial statements effective
beginning fiscal year 2001 to reflect early adoption of FASB
Interpretation No. 46, "Consolidation of Variable Interest Entities,"
(FIN 46). The Company's election to adopt FIN 46 early resulted in a
$30.5 million increase in property and equipment and a $29.6 million
increase in long-term debt to reflect the inclusion of the Company's
corporate headquarters and the related liability on the Company's
balance sheet as of the third quarter of the fiscal year ended March
31, 2001. Effective with the adoption of FIN 46, depreciation expense
increased approximately $1.5 million annually, related to the
depreciation of the building and related improvements. Had the Company
not chosen to adopt FIN No. 46 early, the restatement would have
required conversion of the lease obligation from operating to capital.
Net of tax, the impact of these adjustments compared with the amounts
reported on May 3, 2004 was a decrease of $1.3 million in net income or $0.02
per diluted share in fiscal 2003, a decrease of $0.6 million in net income or
$0.01 per diluted share in fiscal 2002, and a decrease of $0.3 million in net
income or $0.01 per diluted share in fiscal 2001.
Details related to the adjustments captured in the financial results
reported for fiscal year 2003 and the restated financial results for fiscal
years 2002 and 2001 are included in the Company's Annual Report on Form 10-K.
The Company has announced that it will host a webcast on Tuesday, May 18, 2004
at 10:00 a.m. EDT to discuss the adjustments and financial results that it
reported. The webcast may be accessed at
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=POS&script=400 .
It should be noted that the financial results of the Company's fiscal year
ended March 31, 2004 have not been announced. The financial results for the
periods ended March 31, 2003, and the Company's financial condition as of that
date, are not reflective of the Company's financial results for the year
ended, and financial condition as of, March 31, 2004. The Company intends to
publish those results as soon as practicable. Until such time as those
results are published, investors should be aware that the publicly available
financial information regarding the Company is not current.
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 outcome and impact of the ongoing SEC
investigation, 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 of Catalina Marketing Corporation
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