Quarterly Report on Form 10-Q Filed Today with SEC
ST. PETERSBURG, Fla., Aug. 16 /PRNewswire-FirstCall/ -- Catalina Marketing
Corporation (NYSE: POS) today reported that the company has filed its
Quarterly Report on Form 10-Q for the quarter ended June 30, 2004 with the
Securities and Exchange Commission (SEC). Investors are urged to review the
10-Q for a detailed discussion of the financial results and business
descriptions.
For the three-month period ended June 30, 2004, consolidated revenues grew
3.4% to $105.6 million, compared with revenues of $102.2 million reported for
the comparable prior year period. The company had consolidated net income of
$10.9 million, or $0.21 per diluted share, for the first quarter of fiscal
2005 compared with net income of $4.3 million, or $0.08 per diluted share, for
the first quarter of fiscal 2004. On a pro forma non-GAAP basis (to exclude
the results of businesses being planned for disposition, as described further
below), consolidated revenues increased 15.1% to $95.4 million during the
quarter ended June 30, 2004 from $82.9 million during the quarter ended June
30, 2003. Pro forma non-GAAP consolidated net income was $13.4 million for
the three months ended June 30, 2004, as compared with $5.6 million of net
income for the comparable prior year period.
Pro Forma Non-GAAP Adjustments
The pro forma non-GAAP financial information herein includes the results
of the company's ongoing business operations and accordingly, excludes the
financial results of the business units targeted for divestiture by the
company including Direct Marketing Services (DMS), Japan Billboard and
Catalina Marketing Research Solutions (CMRS). Investors are urged to review
the 10-Q for a detailed discussion of the financial results and business
descriptions.
Three Months Ended Three Months Ended
June 30, 2004 June 30, 2003
Net Net
(In thousands) Revenues Income Revenues Income
Catalina Marketing
Services $63,402 $16,133 $59,599 $12,836
Catalina Health Resource 17,866 1,074 14,466 (1,997)
International 14,246 801 9,111 (1,146)
Corp / Elim (112) (4,645) (311) (4,083)
Total Strategic $95,402 $13,363 $82,865 $5,610
DMS $5,938 $(1,819) $11,812 $(483)
Japan Billboard 2,921 (181) 3,768 (1,138)
CMRS 1,382 (437) 3,767 274
Total Non-Strategic $10,241 $(2,437) $19,347 $(1,347)
Consolidated $105,643 $10,926 $102,212 $4,263
Dick Buell, chief executive officer stated, "The results achieved in the
first quarter were encouraging, with all business segments outperforming the
prior year, except for those non-strategic units that we have targeted for
divestiture. We believe these results demonstrate that the company has taken
the necessary steps to develop a foundation for future growth."
Mr. Buell continued, "Looking forward to the balance of fiscal year 2005,
it is important to emphasize that Catalina's management is committed to
developing and implementing initiatives that will grow revenues and
profitability in the long term. Therefore, in the future, the company does
not presently intend to provide guidance as to revenues or earnings
expectations. However, having been unable to publicly report results on a
regular basis during the past year, Catalina recognizes the importance of
providing directional guidance regarding the current fiscal year. To
establish a baseline for future comparison, we will refer to numbers that have
been adjusted to reflect the planned divestitures of Japan Billboard, DMS and
CMRS, as well as the removal of the one-time deferral of revenues resulting
from the prior years' revenue recognition adjustments to Catalina Health
Resource. With those adjustments, fiscal year 2004 diluted earnings per share
was $1.06 and fiscal year 2003 diluted earnings per share was $0.98. Operating
income for adjusted fiscal year 2004 reached $89 million and fiscal year 2003
netted out at $90 million. In fiscal year 2004, adjusted revenues rose to
$397 million from revenues of $386 million in fiscal year 2003."
Mr. Buell concluded, "Using the adjusted baseline as a point of
comparison, fiscal year 2005 is projected to be a solid-performing year with
flat revenues and comparable profitability."
Webcast Scheduled
The company also announced that it will host a webcast on Monday,
August 16, 2004; at 10:00 a.m. EDT to discuss its financial results as filed
in its first quarter 2005 report on Form 10-Q. The webcast may be accessed at
http://www.corporate-
ir.net/ireye/ir_site.zhtml?ticker=POS&script=1010&item_id=926086, and will be
available for replay from Monday, August 16, 2004 through Thursday,
September 16, 2004.
Catalina Marketing Corporation
Selected Financial Data
(in thousands, except per share amounts)
Three Months Ended Three Months Ended
June 30 June 30
2004 2004 2003 2003
GAAP Pro Forma GAAP Pro Forma
Revenues $105,643 $95,402 $102,212 $82,865
Direct Operating Expenses 41,678 33,788 46,805 32,812
Selling, General and Administrative 31,771 28,824 35,619 30,241
Impairment Charge 1,609 - - -
Depreciation and Amortization 12,198 11,552 11,804 11,159
Income from Operations 18,387 21,238 7,984 8,653
Other (Income) Expense 420 393 (198) (250)
Provision for Income Taxes 7,041 7,482 3,149 3,293
Net Income before accounting change 10,926 13,363 5,033 5,610
Cumulative effect of acctg change - - (770) -
Net Income after acctg change $10,926 $13,363 $4,263 $5,610
Basic:
Earnings Per Share $0.21 $0.26 $0.08 $0.11
Weighted Average Shares Outstanding 52,227 52,227 52,536 52,536
Diluted:
Earnings Per Share $0.21 $0.26 $0.08 $0.11
Weighted Average Shares Outstanding 52,245 52,245 52,569 52,569
Catalina Marketing Corporation
Selected Other Data
(in thousands, except per share amounts)
June 30
2004 2003
Balance Sheet and Cash Flow (in thousands):
Cash $71,467 $8,886
Stockholders' Equity $194,668 $207,240
Cash Flows from Operating Activities $1,866 $17,279
U.S. Core Domestic Business:
Number of Stores at Quarter End 17,607 17,569
Net Stores Installed During Quarter 3 71
Promotions Printed During Quarter (in
millions) 738 644
Weekly Shopper Reach at Quarter End
(in millions) 220 215
International Business:
Number of Stores at Quarter End 5,598 4,517
Net Stores Installed During Quarter 53 448
Promotions Printed During Quarter (in
millions) 187 137
Weekly Shopper Reach at Quarter End
(in millions) 61 48
Catalina Marketing Corporation
Reconciliation of GAAP to Pro Forma Non-GAAP Net Income (1)
(in thousands, except per share amounts)
Non-GAAP
Pro Forma Non-GAAP
Three Months Ended June 30, 2004 GAAP Adjustments Pro Forma
Revenues $105,643 $10,241 $95,402
Direct Operating Expenses 41,678 7,890 33,788
Selling, General and Administrative 31,771 2,947 28,824
Impairment Charge 1,609 1,609 -
Depreciation and Amortization 12,198 646 11,552
Income from Operations 18,387 (2,851) 21,238
Other (Income) Expense 420 27 393
Provision for Income Taxes 7,041 (441) 7,482
Net Income (Loss) $10,926 $(2,437) $13,363
Earnings per Share, Basic
(52,227 shares) $0.21 $(0.05) $0.26
Earnings per Share, Diluted
(52,245 shares) $0.21 $(0.05) $0.26
(1) The non-GAAP pro forma net income results are a supplement to the
financial data provided that is based on generally accepted accounting
principles (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 quarter. 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)
Non-GAAP
Pro Forma Non-GAAP
Three Months Ended June 30, 2003 GAAP Adjustments Pro Forma
Revenues $102,212 $19,347 $82,865
Direct Operating Expenses 46,805 13,993 32,812
Selling, General and Administrative 35,619 5,378 30,241
Depreciation and Amortization 11,804 645 11,159
Income from Operations 7,984 (669) 8,653
Other (Income) Expense (198) 52 (250)
Provision for Income Taxes 3,149 (144) 3,293
Net Income (Loss) before accounting
change 5,033 (577) 5,610
Cumulative effect of acctg change (770) (770) -
Net Income (Loss) after acctg change $4,263 $(1,347) $5,610
Earnings per Share, Basic
(52,536 shares) $0.08 $(0.03) $0.11
Earnings per Share, Diluted
(52,569 shares) $0.08 $(0.03) $0.11
(1) The non-GAAP pro forma net income results are a supplement to the
financial data provided that is based on generally accepted accounting
principles (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 quarter. 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 Adjusted Basis (1)
(in thousands, except per share amounts)
Fiscal Year Ended March 31
Consolidated Revenues: 2004 2003
GAAP $472,950 $470,709
Adj. to reconcile GAAP to
non-GAAP Pro Forma (64,318) (86,861)
CHR revenue adjustment (11,558) 1,668
Non-GAAP Pro Forma $397,074 $385,516
Consolidated Operating Income: 2004 2003
GAAP $12,726 $92,386
Adj. to reconcile GAAP to
non-GAAP Pro Forma 88,091 (4,255)
CHR revenue adjustment (11,558) 1,668
Non-GAAP Pro Forma $89,259 $89,799
Consolidated Diluted EPS: 2004 2003
GAAP $(0.37) $1.00
Adj. to reconcile GAAP to
non-GAAP Pro Forma 1.56 (0.04)
CHR revenue adjustment (0.13) 0.02
Non-GAAP Pro Forma $1.06 $0.98
(1) The non-GAAP pro forma net income results are a supplement to the
financial data that is based on generally accepted accounting principles
(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, as
well as the one-time deferral of CHR revenues resulting from prior years'
revenue recognition adjustments. The company believes this presentation
provides useful information to investors because it assists investors in
better understanding the company's operations for comparability with
recurring results for the future. 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:http://www.corporate-
ir.net/ireye/ir_site.zhtml?ticker=POS&script=1010&item_id=926086
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 Corporation
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