ST. PETERSBURG, Fla., June 30 /PRNewswire-FirstCall/ --
Catalina Marketing Corporation (NYSE: POS) announced today that it will delay
the filing of its annual report on Form 10-K for the year ended March 31,
2003. Catalina has filed a notification of late filing with the Securities
~nd Exchange Commission under Rule 12b-25 because it has not yet completed its
annual financial statements as a result of certain issues identified by
management of the company related to the timing of revenue recognition at the
company's business unit, Catalina Health Resource ("CHR"). Management of the
company is currently engaged in a review and evaluation of financial data of
CHR relating to fiscal 2003. The company, through its Audit Committee, has
engaged Ernst & Young LLP, which replaced Arthur Andersen LLP as its
independent auditors in May 2002, to assist in the review and evaluation of
the results. The company believes that the issues detected by management
exist only at CHR. The company cannot presently predict the time required to
complete its review or the timing of the associated audit of the financial
statements by Ernst & Young. However, every effort will be made to file the
company's annual report on Form 10-K within fifteen days.
The company anticipates that upon completion of its review and Ernst and
Young's audit, the company will revise its previously announced financial
results for the fiscal year 2003, ended March 31, 2003, and that certain
revenue previously reported for fiscal 2003 will be recognized in results of
operations for fiscal year 2004. Currently, the company estimates that its
review will result in a shift in revenues from fiscal 2003 to fiscal 2004 in
an amount not likely to exceed $7 million. These changes will affect the
previously reported earnings of the company for the 2003 fiscal year, as well
as the revenues and earnings reported for each of the company's fiscal
quarters during the year. The anticipated changes to fiscal 2003 will also
have an impact on the forecasted results for the current fiscal year,
including the first quarter ended June 30, 2003, but will not impact
subsequent fiscal years. The company is also investigating whether these
issues affect the CHR revenue recognized in its financial statements for
periods prior to fiscal 2003. The company is not currently able to estimate
the amount of any changes that may result from the review of periods prior to
fiscal 2003. Previously filed financial statements, including the associated
audit opinions and review reports, of the company should not be relied upon
until the review is complete.
Daniel D. Granger, Chairman and Chief Executive Officer, commented, "The
outcome of this review will not impact the company's operating cash flow or
its ability to service customers. We are taking this matter very seriously
and working with our auditors to finalize the appropriate accounting changes
as quickly as possible. We expect that the primary effect of any restatement
that may be required will be to recognize revenues and related costs in
periods later than originally recorded. Again, the issues appear to relate
only to the appropriate timing of the recognition of CHR's revenue."
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 and pharmaceutical manufacturers for the issuance
of certain product coupons and other promotions, 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 policies and programs of the company's retail
partners, 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
|
