INVESTORS: CATALINA CAN GIVE NO ASSURANCE THAT THE FINANCIAL INFORMATION
CONTAINED HEREIN WILL NOT BE SUBJECT TO FURTHER ADJUSTMENT. ALL FINANCIAL
INFORMATION CONTAINED HEREIN IS UNAUDITED. THE AUDITS, WHICH ARE IN A
PRELIMINARY STAGE, MAY ALSO RESULT IN CHANGES TO SUCH FINANCIAL INFORMATION.
ST. PETERSBURG, Fla., Oct. 23 /PRNewswire-FirstCall/ -- Catalina Marketing
Corporation (NYSE: POS) today announced unaudited financial and operating
metrics for its second fiscal quarter ended September 30, 2003, and fiscal
year to date, with comparisons to prior periods.
As previously announced, the company is undergoing re-audits of its fiscal
2002 and 2001 financial statements and has not yet completed the audit for
fiscal 2003. Due to the status of these audits, the company has delayed the
filing of its annual report on Form 10-K for fiscal 2003, ended March 31,
2003, as well as its quarterly report on Form 10-Q for the first quarter of
fiscal 2004, ended June 30, 2003. Since the time required to complete the
audits has not yet been determined, Catalina anticipates it will have to file
a notification of late filing with the Securities and Exchange Commission,
under Rule 12b-25, to delay the filing of its quarterly report on Form 10-Q,
for the second quarter of fiscal 2004, ended September 30, 2003.
In lieu of being able to provide financial information in the ordinary
course, the company is announcing certain unaudited financial and operating
metrics for the first and second quarters of fiscal 2004, with comparisons to
prior periods. All financial and operating information contained herein is
unaudited and as such, the company can give no assurance that the financial
information contained herein will not be subject to adjustment. The company
intends to publish similar information on a quarterly basis until the company
is able to return to its standard reporting practices.
FINANCIAL METRICS
For the second quarter of fiscal 2004, ended September 30, 2003, Catalina
Marketing's cash flow from operations was $37.2 million, a 29% increase from
$28.9 million in the same period of the prior fiscal year. Capital
expenditures for the second quarter totaled $6.8 million, a decrease from the
prior year period's expenditure of $10.0 million. The company's total debt at
the end of the fiscal second quarter 2004 totaled $73.5 million, compared to
$51.0 million at the end of the first quarter. The increase in debt at
September 30, 2003 relates primarily to the company initially recording the
obligation for its corporate headquarters facility in St. Petersburg, Florida
of $29.6 million, as debt on the balance sheet, due to the adoption of
Financial Accounting Standards Interpretation No. 46, "Consolidation of
Variable Interest Entities," which became effective in the second quarter of
fiscal 2004. Catalina reduced the amount outstanding on its domestic credit
facility to $11.0 million at the end of the second quarter of fiscal 2004 from
$22.0 million at the end of the first quarter of fiscal 2004. The company's
Japanese operations debt balance at the end of the second quarter of fiscal
2004 totaled $32.9 million, compared to a balance of $29.0 million at the end
of the first quarter of fiscal 2004. Cash balances at the end of the second
quarter of fiscal 2004 were $9.2 million, compared to $8.7 million at the end
of the first quarter of the fiscal year.
The company's cash flow from operations for the six months ended September
30, 2003 was $53.7 million, a 5% increase from the comparable prior year
amount of $51.3 million. Capital expenditures for the six month fiscal 2004
period totaled $15.5 million, compared to the comparable prior year six month
period of $14.1 million. As of September 30, 2003, the company's cash balance
increased to $9.2 million from $1.3 million at March 31, 2003.
OPERATING METRICS
The company's installed store base in its core domestic business increased
to 17,581 as of September 30, 2003, compared to 16,726 stores at September 30,
2002. During the six months ended September 30, 2003, the company had net
installations of 83 stores. The core domestic business printed 819 million
promotions during the fiscal 2004 second quarter, and over 1,466 million
promotions for the six months ended September 30, 2003, reaching more than 209
million consumers.
Catalina Marketing Europe's installed store based grew to 4,255 stores at
September 30, 2003 compared to its total installed store base of 3,291 at
September 30, 2002. The company completed installations in 306 stores on a
net basis for the six months ended September 30, 2003. The store base in
Catalina Marketing Japan nearly doubled to 1,003 stores on September 30, 2003
from 507 stores on September 30, 2002. Catalina Marketing International
printed 178 million promotions, during the second quarter of fiscal 2004 and
390 million promotions, for the six months ended September 30, 2003, reaching
more than 60 million shoppers.
Catalina Health Resource (CHR) had a total installed store base of 15,338
pharmacies as of September 30, 2003, compared to 17,624 pharmacies at
September 30, 2002. The CHR installed store base of 15,338 as of September
30, 2003, represents a net decrease of 2,489 pharmacies, from 17,827
pharmacies at March 31, 2003, due to the previously disclosed deinstallation
of approximately 2,685 Eckerd stores at the beginning of fiscal 2004.
Excluding the deinstallation of Eckerds, CHR experienced a net increase of 196
stores for the six month period ended September 30, 2003.
UNAUDITED OPERATING AND FINANCIAL METRICS: CATALINA CAN GIVE NO ASSURANCE
THAT THE FINANCIAL INFORMATION CONTAINED HEREIN WILL NOT BE SUBJECT TO FURTHER
ADJUSTMENT. ALL FINANCIAL INFORMATION CONTAINED HEREIN IS UNAUDITED. THE
AUDITS, WHICH ARE IN A PRELIMINARY STAGE, MAY ALSO RESULT IN CHANGES TO SUCH
FINANCIAL INFORMATION.
(in millions, except store counts) FY04 FY03
Q1 Q2 YTD Q1 Q2 YTD
CASH $8.7 $9.2 $9.2 $7.3 $5.2 $5.2
TOTAL DEBT $51.0 $73.5* $73.5* $38.0 $36.6 $36.6
CASH FLOW FROM OPERATIONS $16.5 $37.2 $53.7 $22.5 $28.9 $51.3
CAPITAL EXPENDITURES $8.8 $6.8 $15.5 $4.1 $10.0 $14.1
STORES
Domestic 17,569 17,581 17,581 16,480 16,726 16,726
Europe 4,135 4,255 4,255 3,115 3,291 3,291
Japan 941 1,003 1,003 504 507 507
CHR 15,262 15,338 15,338 17,687 17,624 17,624
PROMOTIONS
Domestic 648 819 1,466 736 794 1,530
International 212 178 390 113 95 208
SHOPPER REACH
Domestic 215 209 209 210 202 202
International 59 60 60 38 40 40
*Total debt for the second quarter of fiscal 2004, includes the
consolidation of the $29.6 million synthetic lease related to the company's
corporate headquarters facility.
(in millions, except store counts) FY03 FY02
Q4 YTD Q4 YTD
CASH $1.3 $1.3 $13.3 $13.3
TOTAL DEBT $38.7 $38.7 $31.3 $31.3
CASH FLOW FROM OPERATIONS $41.6 $116.7 $27.0 $116.8
CAPITAL EXPENDITURES $17.6 $41.5 $6.3 $30.2
STORES
Domestic 17,498 17,498 16,488 16,488
Europe 3,949 3,949 2,897 2,897
Japan 568 568 484 484
CHR 17,827 17,827 17,716 17,716
PROMOTIONS
Domestic 922 3,335 959 3,230
International 137 502 91 368
SHOPPER REACH
Domestic 203 203 204 204
International 48 48 36 36
Based in St. Petersburg, Fla., 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 multiple consumer access vehicles,
reaching consumers at home, in-store and online. 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. Through its six operating divisions,
Catalina Marketing offers an array of behavior-based promotional messaging,
product sampling, loyalty programs, direct to patient information and market
research services. 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 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.
SOURCE Catalina Marketing Corporation
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Related links:
http://www.catalinamarketing.com
CONTACT:
Investors, Christopher W. Wolf, Executive
Vice President and 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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