8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15 (d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 18, 2006

Commission File Number: 1-11008

CATALINA MARKETING CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware	33-0499007
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)
200 Carillon Parkway, St. Petersburg, Florida	33716-2325
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, Including Area Code: (727) 579-5000

N/A

(Former name or former address, if changed since last report):

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

On May 19, 2006, Catalina Marketing Corporation will host an investor conference in New York. The attached Exhibits 99.1 through 99.5 contain selected information from the materials presented at this investor conference.

The information in this Current Report, including the exhibits attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Current Report, including the exhibits, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any incorporation by reference language in any such filing.

Item 9.01. Financial Statements and Exhibits

Exhibits

Exhibit Number	Description
99.1	Safe Harbor
99.2	Operating Income and Revenues by Certain Segments
99.3	Condensed Consolidated Balance Sheet
99.4	Condensed Consolidated Statement of Cash Flow
99.5	Reconciliation of Differences Between GAAP and Non-GAAP Financial Measures

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly authorized and caused the undersigned to sign this report on the registrant’s behalf.

May 18, 2006		CATALINA MARKETING CORPORATION
		(Registrant)
		/s/ Rick P. Frier
	Name:	Rick P. Frier
	Title:	Executive Vice President and Chief Financial Officer (Authorized officer of Registrant and principal financial and accounting officer)

EX-99.1

Confidential ©2006 Catalina Marketing Corporation

Reproduce by written permission only

Safe Harbor

Safe Harbor

Certain statements contained herein are forward-looking, and actual results may differ materially.

Statements not based on historic facts involve risks and uncertainties, including, but not limited to,

potential complications, hardware and software issues and delays

related to the schedule, installation

and operation of color printers, the effectiveness of color printers to increase sales and redemption

rates or provide a more effective advertising medium, 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 networks

including as it relates to the installation of color printers and the Company's networks in existing and

future retail channels, the acceptance by the company's manufacturer clients and retailers of color

printers and related new and additional terms and conditions, the success of new services and

businesses and the pace of their implementation, the company's ability to maintain favorable client

and retailer relationships, and the outcome and impact of the pending shareholder class action and

derivative lawsuits.

Exhibit 99.1

EX-99.2

Confidential ©2006 Catalina Marketing Corporation

Reproduce by written permission only

Operating Income Margins *

Operating Income Margins *

43.3%

46.1%

44.7%

0.9%

20.7%

30.8%

11.1%

24.2%

22.5%

21.8%

26.5%

27.3%

'04

'05

'06

'04

'05

'06

'04

'05

'06

'04

'05

'06

* CHR pro forma excludes $11.6M adjustment in FY 2004 due to revenue restatement

CMS

CMS

CHR

CHR

CMI

CMI

CMC

CMC

Exhibit 99.2

Confidential ©2006 Catalina Marketing Corporation

Reproduce by written permission only

CHR Achieving Successful Growth *

(millions)

CHR Achieving Successful Growth *

CHR Achieving Successful Growth *

(millions)

(millions)

$64.7

$66.2

$76.2

$89.5

FY '03

FY '04

FY '05

FY '06

-$6.8

$0.6

$15.7

$27.6

FY '03

FY '04

FY '05

FY '06

*Pro forma excludes ($1.7M) and $11.6M adjustments in FY 2003 and FY 2004, respectively, due to revenue

restatements

Revenues

Operating Profit

Confidential ©2006 Catalina Marketing Corporation

Reproduce by written permission only

CMI Strong Financial Results

CMI Strong Financial Results

(millions)

(millions)

Revenues

Operating Profit

* CAGR was +25.0% in local currency

$30.0

$49.6

$64.1

$73.8

FY '03

FY '04

FY '05

FY '06

-$1.2

$5.5

$15.5

$16.6

FY '03

FY '04

FY '05

FY '06

EX-99.3

Confidential ©2006 Catalina Marketing Corporation

Reproduce by written permission only

Consolidated Summary Balance Sheet

Consolidated Summary Balance Sheet

($ millions)

($ millions)

FY06

FY05

Assets

Cash

28.1

$       

116.2

$     

A/R

63.1

58.7

Other curr. assets

21.9

20.4

Total current assets

113.1

195.3

Net PP&E

128.5

103.3

Goodwill

84.0

80.5

Patents, net

10.0

11.7

Other long term assets

1.5

2.0

Total Assets

337.1

$     

392.8

$     

Liabilities

A/P

29.2

$       

21.0

$       

& Equity

Accr. expenses

58.4

62.1

Short term debt

0.1

30.3

Def. revenue

29.0

28.5

Oth. curr. liab.

5.0

6.8

Total current liabilities

121.7

148.7

Long term debt

61.8

34.3

Oth. long term liab.

10.4

13.4

Stockholders' equity

143.2

196.4

Total Liab. and Stockholders' Equity

337.1

$     

392.8

$     

•

Low debt balance

•

Minimal working capital needs

Exhibit 99.3

EX-99.4

Confidential ©2006 Catalina Marketing Corporation

Reproduce by written permission only

Cash Flow Statement

Cash Flow Statement

($ millions)

($ millions)

FY '06

FY '05

Change

Net Income

71.6

$        

65.5

$        

6.1

$       

Change in Working Capital

(5.2)

(1.5)

(3.7)

Impairment

0.0

4.9

(4.9)

D&A

36.0

43.7

(7.7)

Other

(0.7)

5.4

(6.1)

Cash From Operations

101.7

118.0

(16.3)

Capital Expend.

(60.3)

(22.5)

(37.8)

Acq. Pmts. / Disp.

(3.5)

4.9

(8.4)

Net Cash Used in Investing

(63.8)

(17.6)

(46.2)

Borrow / (Repay) of Debt

2.0

(3.5)

5.5

Repurch. of stock

(114.3)

(44.2)

(70.1)

Dividends paid

(14.5)

(15.7)

1.2

Option exer. and other

2.8

5.0

(2.2)

Net Cash Used in Financing

(124.0)

(58.4)

(65.6)

Net Incr (Decr) in Cash

(86.1)

42.0

(128.1)

Effect of Exchange Rates

(2.0)

1.5

(3.5)

Cash at End of Prior Period

116.2

72.7

43.5

Cash at End of Current Period

28.1

$        

116.2

$     

(88.1)

$   

•

Strong cash flow from operations

•

Using cash for growth initiatives, repurchases, and dividends

•

Capex for Walgreens, K-Mart, International growth, IT

Exhibit 99.4

EX-99.5

Confidential ©2006 Catalina Marketing Corporation

Reproduce by written permission only

Reconciliation of Differences Between GAAP and Non-

Reconciliation of Differences Between GAAP and Non-

GAAP Financial Measures

GAAP Financial Measures

We may, from time to time, discuss performance using the non-GAAP

financial measures presented on the following slides.  The following

tables provide a reconciliation of the differences between the non-

GAAP financial measures presented herein and the most directly

comparable financial measures calculated and presented in

accordance with GAAP.

The following slides include reconciliations for:

Revenues,

operating

income,

net

income,

and

EPS

FY01

–

FY06

Catalina Health Resource revenues, operating profit, and net income

Exhibit 99.5

Confidential ©2006 Catalina Marketing Corporation

Reproduce by written permission only

Reconciliation of U.S. GAAP to Pro Forma Financial

Reconciliation of U.S. GAAP to Pro Forma Financial

Measures

Measures

Consolidated Revenue, Operating Income, Net Income, and EPS

Consolidated Revenue, Operating Income, Net Income, and EPS

in $ millions

Consolidated Revenue:

2001

2002

2003

2004

2005

2006

* Non-GAAP Pro Forma

343.2

$     

374.5

$     

385.5

$     

397.1

$     

410.1

$     

417.7

$   

CHR revenue adjustment

(3.2)

$        

(6.6)

$        

(1.7)

$        

11.6

$       

-

$         

-

$      

GAAP

340.0

$     

367.9

$     

383.8

$     

408.6

$     

410.1

$     

417.7

$   

Cons. Oper. Income:

2001

2002

2003

2004

2005

2006

* Non-GAAP Pro Forma

89.2

$       

105.6

$     

87.8

$       

86.5

$       

108.8

$     

114.2

$   

CHR revenue adjustment

(3.2)

$        

(6.6)

$        

(1.7)

$        

11.6

$       

-

$         

-

$      

GAAP

86.0

$       

99.0

$       

86.1

$       

98.1

$       

108.8

$     

114.2

$   

Cons. Inc. From Cont. Ops.:

2001

2002

2003

2004

2005

2006

* Non-GAAP Pro Forma

57.6

$       

70.9

$       

52.7

$       

53.5

$       

68.6

$       

71.6

$    

CHR revenue adjustment

(1.9)

$        

(4.3)

$        

(1.1)

$        

6.9

$         

-

$         

-

$      

GAAP

55.7

$       

66.6

$       

51.6

$       

60.4

$       

68.6

$       

71.6

$    

Cons. Diluted EPS:

2001

2002

2003

2004

2005

2006

* Non-GAAP Pro Forma

0.99

$       

1.24

$       

0.96

$       

1.02

$       

1.31

$       

1.46

$    

CHR revenue adjustment

(0.03)

$      

(0.07)

$      

(0.02)

$      

0.13

$       

-

$         

-

$      

GAAP

0.96

$       

1.17

$       

0.94

$       

1.15

$       

1.31

$       

1.46

$    

* The non-GAAP pro forma results are a supplement to the financial data that is based on generally accepted accounting

principles (GAAP). The non-GAAP pro forma results reflect adjustments to exclude non-recurring revenue resulting from the one-

time deferral of CHR revenues in prior periods (and the related tax effect) resulting from revenue recognition adjustments in such

prior years. 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.

Confidential ©2006 Catalina Marketing Corporation

Reproduce by written permission only

Reconciliation of U.S. GAAP to Pro Forma Financial

Reconciliation of U.S. GAAP to Pro Forma Financial

Measures

Measures

CHR Revenue, Operating Profit, and Net Income

CHR Revenue, Operating Profit, and Net Income

* The non-GAAP pro forma results are a supplement to the financial data that is based on generally accepted accounting

principles (GAAP). The non-GAAP pro forma results reflect adjustments to exclude non-recurring revenue resulting from the one-

time deferral of CHR revenues in prior periods (and the related tax effect) resulting from revenue recognition adjustments in such

prior years. 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.

in $ millions

2001

2002

2003

2004

2005

2006

* Non-GAAP Pro Forma

35.9

$      

71.4

$      

64.7

$      

66.2

$      

76.2

$      

89.5

$      

CHR revenue adjustment

(3.2)

$       

(6.6)

$       

(1.7)

$       

11.6

$      

-

$        

-

$        

GAAP Revenue

32.7

$      

64.8

$      

63.0

$      

77.8

$      

76.2

$      

89.5

$      

2001

2002

2003

2004

2005

2006

* Non-GAAP Pro Forma

(4.5)

$       

3.1

$        

(6.8)

$       

0.6

$        

15.7

$      

27.6

$      

CHR revenue adjustment

(3.2)

$       

(6.6)

$       

(1.7)

$       

11.6

$      

-

$        

-

$        

GAAP Operating Profit

(7.7)

$       

(3.5)

$       

(8.5)

$       

12.2

$      

15.7

$      

27.6

$      

2001

2002

2003

2004

2005

2006

* Non-GAAP Pro Forma

(2.3)

$       

2.2

$        

(4.0)

$       

0.4

$        

9.4

$        

16.4

$      

CHR revenue adjustment

(1.9)

$       

(4.3)

$       

(1.1)

$       

6.9

$        

-

$        

-

$        

GAAP Net Income

(4.2)

$       

(2.1)

$       

(5.1)

$       

7.3

$        

9.4

$        

16.4

$      

CHR Net Income:

CHR Operating Profit:

CHR Revenue: