ST. PETERSBURG, Fla., July 18 /PRNewswire-FirstCall/ -- Catalina Marketing
Corporation (NYSE: POS) today reported first quarter results for the period
ended June 30, 2002. Revenue for the quarter grew 16 percent to
$109.1 million, compared to $94.4 million in the first quarter of the prior
fiscal year. Quarterly net income was $10.7 million, or 19 cents per diluted
share, versus $9.4 million, or 16 cents per diluted share, for the comparable
prior year period.
Daniel D. Granger, President and Chief Executive Officer, commented, "I am
pleased with our performance this quarter. Our results were at the higher end
of the range of our previously announced expectations. The core domestic
business had another strong quarter with revenue growth of nineteen percent
over the first quarter of last year. The financial results of the core
domestic business were achieved primarily as the result of outstanding revenue
growth in our retail and direct mail operations."
Granger continued, "Health Resource posted another solid quarter, with
revenue growth of 28 percent over the first quarter of fiscal 2002. During
the quarter, Health Resource signed the largest contract in its history, a
multi-year agreement with a major pharmaceutical manufacturer, further
indicating that our clients believe in the value of the patients' right to be
informed of their health care choices via the one-to-one communication of the
Health Resource(R) Network."
Commenting on the upcoming second quarter, Granger stated, "Based upon our
financial results in the first quarter, client commitments and recent selling
activity, we estimate that consolidated revenue will increase between 15 and
20 percent compared to the second quarter of last fiscal year. As a result of
our expected revenue growth, we estimate that consolidated second quarter
earnings will fall between 25 and 26 cents per share."
Granger concluded, "As we have stated previously, we expect to grow
consolidated revenue and earnings per share between 20 and 25 percent on an
annual basis in fiscal 2003. After review of our first quarter results and
our current estimates for the remainder of the fiscal year, we still expect to
achieve those targets."
Operating and corporate highlights for the quarter included the following:
* Core Domestic Business -- Revenue in the first quarter increased
approximately 19 percent over the comparable prior year period. The
company's U.S. installed store base totaled 16,480 stores at the end of
the quarter, compared to 15,635 at the end of the prior year first
quarter. There was a net decrease of 8 stores in the company's
installed store base this quarter. During the week beginning July 8,
2002, the company announced several contracts for the installation of
the Catalina Marketing Network(R) in over 1,100 stores, including over
600 free standing Sav-on and Osco drug stores, planned for completion
during the current fiscal year.
* Health Resource -- Revenue for the quarter increased approximately
28 percent over the comparable prior year period. At the end of the
quarter, the Health Resource(R) Network was installed in a total of
17,687 pharmacy outlets, compared to 17,716 pharmacy outlets at March
31, 2002. The company has approximately 1,890 stores currently under
contract for installation in the current fiscal year. Health Resource
Publishing contributed approximately 1 cent per company common diluted
share this quarter.
* European Operations -- The European business, which consists of in-store
operations in France, Italy and the United Kingdom, experienced an
increase in revenue from the prior year first quarter of approximately
1 percent. The company completed the installation of 218 stores on a
net basis during the quarter, for a total installed store base at the
end of the period of 3,115 stores. For the quarter, the European
Operations posted a small loss.
* Japanese Joint Venture -- During the quarter, the company's Japanese
joint venture experienced a quarterly revenue decline of 12 percent, or
a 1 percent decline in local currency, compared to the first quarter of
the prior year. The company completed the installation of 20 stores on
a net basis during the quarter, for a total installed store base at the
end of the period of 504 stores. The company's portion of the net loss
in its Japanese joint venture approximated 2 cents per company common
diluted share this quarter.
* Catalina Marketing Research -- Revenue in the company's research
operations was approximately equal to revenue in the first quarter of
the prior year. The company's research operations are conducted by
Alliance Research, which leverages the value of Catalina data in
attitudinal research applications. Catalina Marketing Research posted a
nominal profit this quarter.
* Catalina Interactive Marketing Services -- ValuPage(R)
(http://www.valupage.com) is now accepted in 14,988 supermarkets within the
Catalina Marketing Network(R). Revenue in the quarter decreased
approximately 84 percent compared to the same period last year. CIMS'
net loss for the quarter approximated 1 cent per company common diluted
share.
* Stock Repurchase -- During the quarter, the company repurchased 867,900
shares of its common stock for a total of $27.8 million, at an average
price of $32.07 per share. The company currently has authorization to
repurchase an additional $15.8 million of common stock under the July
2001 Board of Directors' authorization.
* Conference Call -- The company will host a conference call today,
July 18, 2002 at 5:00 PM Eastern Standard Time to discuss the company's
results. The dial-in number is (800) 863-4938 and the International
Dial number is (706) 645-0372. Rebroadcast of the call will be
available from 9:00 PM on Thursday, July 18 until midnight on
Friday, July 26. The replay number is (800) 403-4440.
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 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,
and the company's ability to maintain favorable client relationships.
- Financial Tables Follow -
Catalina Marketing Corporation
Selected Financial Data
(in thousands, except per share amounts)
Three Months
Periods Ended June 30 2002 2001
Revenue $109,071 $94,424
Direct Operating Expenses 51,980 41,190
Selling, General and Administrative 28,528 26,702
Depreciation and Amortization 10,991 10,706
Income from Operations 17,572 15,826
Interest Income/(Expense) and Other (356) (1,083)
Minority Interest (14) 9
Provision for Income Taxes 6,543 5,382
Net Income $10,659 $9,370
Diluted:
Earnings Per Share $0.19 $0.16
Weighted Average Shares Outstanding 56,359 57,868
Basic:
Earnings Per Share $0.19 $0.17
Weighted Average Shares Outstanding 55,407 56,491
Selected Other Data
June 30,
2002 2001
Balance Sheet and Cash Flow (in thousands):
Cash $7,313 $3,385
Stockholders' Equity 238,853 224,375
Twelve Month EBITDA 144,086 134,330
U.S. Checkout Coupon Business:
Number of Stores at Quarter End 16,480 15,635
Net Stores Installed During
Quarter (8) 160
Promotions Printed During
Quarter (in millions) 736 650
Weekly Shopper Reach at Quarter
End (in millions) 210 192
International Checkout Coupon Business:
Number of Stores at Quarter End 3,619 2,767
Net Stores Installed During Quarter 238 150
Promotions Printed During
Quarter (in millions) 113 99
Weekly Shopper Reach at Quarter
End (in millions) 38 31
SOURCE Catalina Marketing Corporation
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Related links:
http://www.catmktg.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/113439.html
CONTACT:
Christopher W. Wolf, Chief Financial Officer
of Catalina Marketing Corporation, +1-727-579-5218
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