EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO    NEWS                    

 

INVESTOR CONTACTS:   FOR IMMEDIATE RELEASE

 

Rick Frier

Executive Vice President and Chief Financial Officer

(727) 579-5147

 

Joanne Freiberger

Vice President, Finance

(727) 579-5116

 

MEDIA CONTACT:

Nicole Andriso

Public Relations Manager

(727) 563-5822

 

Catalina Marketing Reports Financial Results for the Second Quarter of Fiscal 2006

 

ST. PETERSBURG, FL, October 26, 2005 – Catalina Marketing Corporation (NYSE: POS) today reported financial results for its second quarter and first six months ended September 30, 2005.

 

For the three months ended September 30, 2005, consolidated revenues were $102.8 million, compared with revenues of $102.4 million in the comparable period of fiscal year 2005. Consolidated net income for the second quarter was $19.7 million, or $0.40 per diluted share, compared with net income of $20.3 million, or $0.39 per diluted share, in the second quarter of fiscal year 2005. Second quarter results in fiscal year 2005 included $1.4 million of income from discontinued operations related to the operation and divesture of non-core businesses.

 

The company reported consolidated income from continuing operations for the quarter ended September 30, 2005 of $19.7 million, or $0.40 per diluted share, compared with $18.9 million, or $0.36 per diluted share, for the quarter ended September 30, 2004.

 

For the six-month period ended September 30, 2005, consolidated revenues were $194.6 million, compared with revenues of $197.8 million in the comparable period of fiscal year 2005. Consolidated net income for the first six months of fiscal year 2006 was $33.4 million, or $0.67 per diluted share, compared with net income of $31.2 million, or $0.60 per diluted share, in fiscal year 2005. First half results in fiscal year 2005 included a loss from discontinued operations of $1.0 million related to the operation and divestiture of non-core businesses.

The company reported consolidated income from continuing operations for the six months ended September 30, 2005 of $33.4 million, or $0.67 per diluted share, compared with $32.2 million, or $0.62 per diluted share, for the six months ended September 30, 2004.

 

“Second quarter earnings improved year-over-year, while revenues were comparable with the prior year as double digit growth in Catalina Health Resource and International were offset by a revenue decline at Catalina Marketing Services,” chief executive officer, Dick Buell commented. “We remain focused on our long-term growth objectives as we continue to make steady progress with the introduction of new products and services and entry into new channels. The results of our efforts should begin to appear in CMS results during the fourth quarter of this fiscal year.”

 

Summary of Segment Results

 

    

Three Months Ended

September 30, 2005

     Three Months Ended
September 30, 2004
     Three Months Ended
September 30, 2005
  

(In millions)

 

    Revenues
    Income/(Loss)
     Revenues
    Income/(Loss)
     Percent Change
  
             Revenues
     Income/(Loss)
  

Catalina Marketing Services

    $ 60.6    $ 16.0     $ 66.1    $ 18.9     (8.3 )%   (15.1 )%

Catalina Health Resource

      22.9      5.0       19.2      2.8     19.3 %   78.8 %

Catalina Marketing International

      19.3      2.4       16.9      2.1     14.0 %   15.1 %

Corp / Eliminations

      0.0      (3.7 )     0.2      (4.9 )   (99.1 )%   (25.5 )%
    
  
 
  
 
 

From Continuing Operations

    $ 102.8    $ 19.7     $ 102.4    $ 18.9     0.4 %   4.7 %
    
  
 
  
 
 

Discontinued Operations

    $ —      $ —       $ —      $ 1.4     —       (100.0 )%
    
  
 
  
 
 

Consolidated

    $ 102.8    $ 19.7     $ 102.4    $ 20.3     0.4 %   (2.6 )%
    
  
 
  
 
 
    

Six Months Ended

September 30, 2005

    

Six Months Ended

September 30, 2004

     Six Months Ended
September 30, 2005
  

(In millions)

 

    Revenues
    Income/(Loss)
     Revenues
    Income/(Loss)
     Percent Change
  
             Revenues
     Income/(Loss)
  

Catalina Marketing Services

    $ 118.3    $ 30.8     $ 129.5    $ 35.0     (8.6 )%   (12.0 )%

Catalina Health Resource

      41.4      7.8       37.1      3.8     11.8 %   101.9 %

Catalina Marketing International

      34.9      3.1       31.1      2.9     12.0 %   8.4 %

Corp / Eliminations

      0.0      (8.3 )     0.1      (9.5 )   (92.4 )%   (12.8 )%
    
  
 
  
 
 

From Continuing Operations

    $ 194.6    $ 33.4     $ 197.8    $ 32.2     (1.6 )%   3.7 %
    
  
 
  
 
 

Discontinued Operations

    $ —      $ —       $ —      $ (1.0 )   —       100.0 %
    
  
 
  
 
 

Consolidated

    $ 194.6    $ 33.4     $ 197.8    $ 31.2     (1.6 )%   7.1 %
    
  
 
  
 
 

 

Stock Repurchases

 

During the second quarter, the company repurchased 1,171,900 shares of its common stock for a total of $28.3 million, at an average price of $24.13 per share. Since the beginning of the fiscal year, the

company has purchased 2,865,200 shares of its common stock for a total of $70.1 million, at an average price of $24.47 per share. The company currently has authorization to repurchase an additional $85.7 million of common stock under the August 2005 Board of Directors authorization.

 

Webcast & Investor Conference Scheduled

 

The company will host a webcast on Thursday, October 27, 2005 at 8:00 a.m. EDT to discuss its financial results for its fiscal year 2006 second quarter. The webcast may be accessed at http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=POS&script=1000 and will be available for replay from Thursday, October 27, 2005 through Thursday, November 24, 2005.

 

Rick Frier, chief financial officer, will also present at the First Analysis Investment Conference at the New York Palace Hotel in New York City on November 17, 2005. The presentation will be webcast and will be accessible through the Investor Relations Calendar of Events section of the company’s web site at http://www.catalinamarketing.com

Capital Marketing Corporation

Selected Operating Data

(in thousands, except per share amounts)

 

Periods Ended September 30

    Three Months
    Six Months
  
   2005
     2004
    2005
     2004
  

Revenues

    $ 102,756     $ 102,372    $ 194,610     $ 197,774  

Direct Operating Expenses

      32,318       32,015      63,002       65,803  

Selling, General and Administrative

      29,622       28,517      59,423       57,340  

Depreciation and Amortization

      8,722       10,604      18,227       22,158  
    
 
  
 

Income from Operations

      32,094       31,236      53,958       52,473  

Other Income (Expense)

      (242 )     125      (69 )     (267 )

Provision for Income Taxes

      12,104       12,508      20,478       19,990  
    
 
  
 

Income from Continuing Operations

      19,748       18,853      33,411       32,216  

Income (Loss) from Discontinued Operations

      —         1,426      —         (1,011 )
    
 
  
 

Net Income

    $ 19,748     $ 20,279    $ 33,411     $ 31,205  
    
 
  
 

Earnings Per Share, Basic:

                                

Earnings Per Share from Continuing Operations

    $ 0.41     $ 0.36    $ 0.67     $ 0.62  

Income (Loss) from Discontinued Operations

    $ —       $ 0.03    $ —       $ (0.02 )
    
 
  
 

Net Income Per Common Share

    $ 0.41     $ 0.39    $ 0.67     $ 0.60  

Weighted Average Shares Outstanding

      48,709       52,231      49,625       52,233  

Earnings Per Share, Diluted:

                                

Earnings Per Share from Continuing Operations

    $ 0.40     $ 0.36    $ 0.67     $ 0.62  

Income (Loss) from Discontinued Operations

    $ —       $ 0.03    $ —       $ (0.02 )
    
 
  
 

Net Income Per Common Share

    $ 0.40     $ 0.39    $ 0.67     $ 0.60  

Weighted Average Shares Outstanding

      48,996       52,311      49,927       52,269  

Capital Marketing Corporation

Selected Other Data

(in thousands, except store data)

 

    

September 30

2005

    

September 30

2004

Selected Balance Sheet and Cash Flow Data (in thousands):

               

Cash

    $ 22,731     $ 97,345

Debt

      34,779       65,504

Stockholders’ Equity

      146,442       200,126

Cash Flows from Operating Activities Quarter / YTD

      17,575 / 31,762       40,604 / 42,470

Capital Expenditures Quarter / YTD

      16,110 / 24,594       4,034 / 6,175

Catalina Marketing Services:

               

Number of Stores at Quarter End

      16,693       17,644

Net Stores (Deinstalled) Installed During Quarter / YTD

      (888) / (916 )     37 / 40

Promotions Printed During Quarter / YTD (in millions)

      744 / 1,457       846 / 1,584

Weekly Shopper Reach at Quarter End (in millions)

      211       216

Catalina Health Resource:

               

Number of Stores at Quarter End

      12,404       12,081

Net Stores Installed (Deinstalled) During Quarter / YTD

      (47) / (19 )     72 / 152

Catalina Marketing International:

               

Number of Stores at Quarter End

      6,699       5,700

Net Stores Installed During Quarter / YTD

      696 / 792       102 / 155

Promotions Printed During Quarter / YTD (in millions)

      279 / 488       220 / 412

Weekly Shopper Reach at Quarter End (in millions)

      72       63

 

Based in St. Petersburg, FL, Catalina Marketing Corporation (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 provided 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 consumer packaged goods and pharmaceutical manufacturers and retailers and competition to provide marketing services to these customers, mergers and consolidations in the consumer packaged goods and retailer industries, federal, state and international government and

regulatory statutes, rules, regulations and policies including privacy and labeling, the effect of economic conditions and seasonal variations, actual promotional activities and programs with the company’s customers, the pace, cost and challenges associated with the installation of the company’s store network and changes in the status of contractual relations with retailers, the success of new services and businesses and the pace of their implementation including the entry into new retail channels, the company’s ability to maintain favorable relationships with its clients and retailers, 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.