ST. PETERSBURG, Fla., July 15 /PRNewswire/ -- Catalina Marketing
Corporation (NYSE: POS) today announced that it is continuing to review the
timing of revenue recognition at the company's business unit, Catalina Health
Resource ("CHR"). The company is also reviewing certain other revenue
recognition timing issues in other parts of its business, as further described
below. The company is continuing to work with its independent auditors, Ernst
& Young LLP, to complete these activities. As a result of these reviews, the
company will further delay filing its annual report on Form 10-K for the
fiscal year 2003, ended March 31, 2003. The company previously filed a
notification of late filing with the Securities and Exchange Commission under
Rule 12b-25, but has since determined that it will be unable to comply with
the filing deadline of July 15, 2003.
The company anticipates that, upon completion of its review of the
financial results of CHR, certain revenues will shift from fiscal 2003 to
fiscal 2004. However, the company expects these changes will impact only the
timing of revenues, and not the aggregate amount of revenues reported or to be
reported. 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 that year. The
anticipated changes to CHR revenues for fiscal 2003 will also have an impact
on the results for the first quarter of fiscal 2004, ended June 30, 2003, as
well as on the forecasted results for the balance of the current fiscal year,
but are not expected to impact subsequent fiscal years. The company also
continues to evaluate whether the revenue recognition issues relating to CHR
affect the company's financial statements for periods prior to fiscal 2003.
The company is now also reviewing certain other revenue recognition timing
matters in its core domestic business and CHR. The company expects that
resulting changes, if any, will not impact aggregate revenue, but may affect
the timing of revenue recognition in fiscal year 2003, prior fiscal years or
future fiscal years.
Following the reviews outlined in this press release, Catalina will work
with Ernst & Young to complete the current audit of the company's financial
statements for the year ended March 31, 2003. The company cannot presently
predict the time required to complete its reviews or the audit of the
financial statements by Ernst & Young. However, the company will file its
annual report on Form 10-K as soon as practicable after the review and the
audit have been completed. Previously filed financial statements, including
the associated audit opinions and review reports of the company, should not be
relied upon until the company files its annual report for the year ended March
31, 2003 on Form 10-K.
The company also announced that its annual shareholder meeting, previously
scheduled for August 8, 2003, has been postponed in order to accommodate a new
timetable for filing the company's annual report on Form 10-K. The meeting
will be rescheduled as soon as the timing for the filing of the annual report
can be finalized. In addition, the company will postpone its first quarter
earnings release, previously scheduled for July 23, 2003, until after the
filing of its annual report.
Daniel D. Granger, Chairman and Chief Executive Officer, commented, "We
are disappointed about the additional time that is required for the company to
complete its review of these revenue recognition timing issues. However, we
are committed to resolving these issues as soon as possible. Accurately
accounting for these issues is essential, and we simply need more time to
ensure that we review these issues and report them correctly. The company
continues to coordinate its efforts with Ernst & Young, and has notified both
the Securities and Exchange Commission and the New York Stock Exchange to
apprise them of the company's activities and progress."
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
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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
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