Annual Report on Form 10-K Filed Today With SEC
ST. PETERSBURG, Fla., July 15 /PRNewswire-FirstCall/ -- Catalina Marketing
Corporation (NYSE: POS) today reported that the company has filed its Annual
Report on Form 10-K for the year ended March 31, 2004 with the Securities and
Exchange Commission (SEC). Investors are urged to review the 2004 Form 10-K
for a detailed discussion of the financial results and business status
descriptions.
For the twelve-month period ended March 31, 2004, revenues were
$473.0 million compared with revenues of $470.7 million reported for the
comparable prior year period. The company incurred a net loss of
$19.3 million, or $0.37 per diluted share, for fiscal 2004 compared to net
income of $55.1 million, or $1.00 per diluted share, for fiscal 2003. Cash
flows from operating activities were $138.1 million and $118.5 million for the
years ended March 31, 2004 and 2003, respectively. On a pro forma non-GAAP
basis (to exclude the results of businesses being planned for disposition, as
described further below) revenues increased 6.5% to $408.6 million during the
year ended March 31, 2004 from $383.8 million in fiscal year 2003. Pro forma
non-GAAP net income was $62.1 million for the twelve months ended March 31,
2004, a 17.7% increase over $52.8 million of net income from the comparable
prior year period.
The reporting of fiscal year 2004 had been delayed because of the time and
resources required to complete and file the company's Annual Report on Form
10-K for fiscal year 2003, which included the restated financial statements
for fiscal years 2002 and 2001. This filing was made on May 17, 2004. The
company reiterated that the timing of the filing of the 2004 annual report on
Form 10-K did not have an impact on its credit facilities and that it is
currently in compliance with all related financial covenants.
"We are very pleased to have completed this process," said L. Dick Buell,
chief executive officer. "Today's filing marks a significant milestone for
Catalina Marketing, in that we have addressed the financial reporting and
restatement issues that have faced the company for the past 13 months and can
focus solely on building our core businesses."
Pro Forma Non-GAAP Adjustments
The pro forma non-GAAP financial information herein includes the results
of the company's on-going business operations and, accordingly, excludes the
financial results of the business units designated to be divested by the
company including Direct Marketing Services (DMS), Japan Billboard and
Catalina Marketing Research Solutions (CMRS). It should be noted that the
company recognized impairment charges in fiscal 2004 with respect to each of
these businesses and that the pro forma non-GAAP financial information does
not reflect such impairment charges.
During the third quarter of fiscal year 2004, the company announced its
intent to divest DMS, Japan Billboard and CMRS. These businesses were deemed
not to be strategically aligned with Catalina's current core competencies.
The company tested the goodwill related to these operations for possible
impairment in accordance with Statement of Financial Accounting Standards
(SFAS) No. 142, "Goodwill and Other Intangible Assets." As a result of this
testing, the company recorded impairment charges related to goodwill in the
amount of $81.5 million on the consolidated income statement for fiscal year
2004. The impairment charges consisted of $29.8 million related to DMS, $30.5
million related to Japan Billboard and $21.2 million related to CMRS.
In addition to the $81.5 million of goodwill impairment charges described
above, the company recognized an impairment charge on its billboard assets in
Japan. The increased regulatory limitations on tobacco advertising on
billboards in Japan resulted in a charge of $4.1 million related to the
impairment of long-lived assets pursuant to SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets."
Additional information related to how these impairment charges were
derived is available in Management's Discussion and Analysis and the company's
consolidated financial statements contained in the fiscal year 2004 Annual
Report on Form 10-K.
Webcast Scheduled
The company also announced that it will host a webcast on Monday, July 19,
2004, at 10:00 a.m. EDT to discuss its financial results as filed in its
fiscal year 2004 Annual Report on Form 10-K. The webcast may be accessed at
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=POS&script=1010&item_id=918706
and will be available for replay from Monday, July 19, 2004, through Monday,
August 16, 2004.
Catalina Marketing Corporation
Selected Financial Data
(in thousands, except per share amounts)
Twelve Months Twelve Months
Periods Ended March 31 2004 2004 2003 2003
GAAP Pro-Forma GAAP Pro-Forma
Revenues $472,950 $408,632 $470,709 $383,848
Direct Operating Expenses 186,207 139,783 208,381 147,077
Selling, General and
Administrative 140,815 123,095 125,449 107,958
Impairment Charges 85,565 -- 1,225 --
Depreciation and
Amortization 47,637 44,938 43,268 40,682
Income from Operations 12,726 100,816 92,386 88,131
Other (Income) Expense 793 538 3,135 2,862
Provision for Income Taxes 30,436 38,198 34,153 32,517
Net Income (Loss) Before
Accounting Change (18,503) 62,080 55,098 52,752
Cumulative Effect of Acctg
Change (770) -- -- --
Net Income (Loss) After
Acctg Change $(19,273) $62,080 $55,098 $52,752
Diluted:
Earnings Per Share $(0.37) $1.19 $1.00 $0.96
Weighted Average Shares
Outstanding 52,304 52,304 54,885 54,885
Basic:
Earnings Per Share $(0.37) $1.19 $1.01 $0.97
Weighted Average Shares
Outstanding 52,304 52,304 54,474 54,474
Selected Other Data
March 31
2004 2003
Balance Sheet and Cash Flow (in thousands):
Cash $72,704 $1,715
Stockholders' Equity $184,662 $215,995
Cash Flows from Operating Activities $138,133 $118,503
U.S. Core Domestic Business:
Number of Stores at Quarter End 17,604 17,498
Net Stores Installed During Quarter
/YTD 22/106 165/1,010
Promotions Printed During Quarter/
YTD (in millions) 878/3,118 922/3,334
Weekly Shopper Reach at Quarter End
(in millions) 209 203
International Business:
Number of Stores at Quarter End 5,545 4,069
Net Stores Installed During Quarter
/YTD 287/1,476 271/731
Promotions Printed During Quarter/
YTD (in millions) 230/757 156/455
Weekly Shopper Reach at Quarter End
(in millions) 65 47
Catalina Marketing Corporation
Reconciliation of GAAP to Pro forma Non-GAAP Net Income (1)
(in thousands, except per share amounts)
Adjustments to
reconcile from
GAAP to
Twelve Months Ended March 31, 2004 Non-GAAP Non-GAAP
GAAP Pro forma Pro forma
Revenues $472,950 $64,318 $408,632
Direct Operating Expenses 186,207 46,424 139,783
Selling, General and
Administrative 140,815 17,720 123,095
Impairment Charges 85,565 85,565 --
Depreciation and Amortization 47,637 2,699 44,938
Income from Operations 12,726 (88,090) 100,816
Other (Income) Expense 793 255 538
Provision for Income Taxes 30,436 (7,762) 38,198
Net Income (Loss) Before
Accounting Change (18,503) (80,583) 62,080
Cumulative Effect of Acctg
Change (770) (770) --
Net Income (Loss) After Acctg
Change $(19,273) $(81,353) $62,080
Earnings per Share, Diluted
(52,304 shares) $(0.37) $(1.56) $1.19
Earnings per Share, Basic
(52,304 shares) $(0.37) $(1.56) $1.19
(1) The non-GAAP pro forma net income results are a supplement to the
financial data based on accounting principals generally accepted in
the United States of America (GAAP). These non-GAAP pro forma
results reflect adjustments primarily to exclude from operating
results the financial statement information for business units that
have been identified for divestiture or disposal and as such are not
viewed by the company as part of the ongoing business. The company
believes this presentation provides useful information to investors
because it assists investors in better understanding the company's
operations for the full fiscal year. It should be emphasized,
however, that these measurements are not a substitution for GAAP-
based financial statements.
Catalina Marketing Corporation
Reconciliation of GAAP to Pro forma Non-GAAP Net Income (1)
(in thousands, except per share amounts)
Adjustments to
reconcile from
GAAP to
Non-GAAP Non-GAAP
GAAP Pro forma Pro forma
Period Ended March 31, 2003
Revenues $470,709 $86,861 $383,848
Direct Operating Expenses 208,381 61,304 147,077
Selling, General and
Administrative 125,449 17,491 107,958
Impairment Charges 1,225 1,225 --
Depreciation and Amortization 43,268 2,586 40,682
Income from Operations 92,386 4,255 88,131
Other (Income) Expense 3,135 273 2,862
Provision for Income Taxes 34,153 1,636 32,517
Net Income (Loss) Before
Accounting Change 55,098 2,346 52,752
Cumulative Effect of Acctg
Change -- -- --
Net Income (Loss) After Acctg
Change $55,098 $2,346 $52,752
Earnings per Share, Diluted
(54,885 shares) $1.00 $0.04 $0.96
Earnings per Share, Basic
(54,474 shares) $1.01 $0.04 $0.97
(1) The non-GAAP pro forma net income results are a supplement to the
financial data based on accounting principles generally accepted in
the United States of America (GAAP). These non-GAAP pro forma
results reflect adjustments primarily to exclude from operating
results the financial statement information for business units that
have been identified for divestiture or disposal and as such are not
viewed by the company as part of the ongoing business. The company
believes this presentation provides useful information to investors
because it assists investors in better understanding the company's
operations for the full fiscal year. It should be emphasized,
however, that these measurements are not a substitution for GAAP-
based financial statements.
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 and pharmaceutical manufacturers and retailers,
government and regulatory statutes, rules, regulations and policies, 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 the completion of the
company's future SEC filings, the outcome and impact of an ongoing SEC
investigation into certain of the company's prior fiscal years, and the
outcome and impact of the pending shareholder class action and derivative
lawsuits.
SOURCE Catalina Marketing Corporation
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Related links:
http://www.catalinamarketing.com
Audio:www.corporate-ir.net/ireye/ir_site.zhtml?ticker=POS&script=1010&item_id=918706
(POS)
CONTACT:
Investors, Christopher W. Wolf, 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
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