Catalina Marketing Corporation Reports Fourth Quarter and Fiscal 2001 Results

Apr 19, 2001, 01:00 ET from Catalina Marketing Corporation

    ST. PETERSBURG, Fla., April 19 /PRNewswire/ -- Catalina Marketing
 Corporation (NYSE:   POS) today reported results for its fourth quarter and
 fiscal year period ended March 31, 2001.  Revenue for the quarter grew
 21 percent to $113.4 million, compared to $93.7 million in the prior year
 fourth quarter.  Net income for the quarter totaled $14.5 million, or 25 cents
 per diluted share, compared to $14.4 million, or 25 cents per diluted share,
 for the prior year period.
     For the twelve months ended March 31, 2001, revenue totaled
 $417.9 million, up 19 percent, compared to $350.9 million for the prior year.
 Net income for the current fiscal year totaled $58.1 million, up 13 percent
 from $51.3 million for the annual period last year.  For fiscal year 2001,
 earnings per diluted share were $1.00, compared to earnings per diluted share
 of $.89 in fiscal year 2000, an increase of 12 percent.
     Daniel D. Granger, President and Chief Executive Officer, commented, "I am
 pleased that the performance of our management team enabled us to reach the
 top of our range for earnings expectations in the fourth quarter.  In the face
 of challenges we outlined at the end of our last quarter, we made appropriate
 operational changes to ensure we would meet our revised earnings estimates.
 As a result, the core domestic business achieved outstanding revenue growth,
 increasing approximately 28 percent over last year.  Health Resource
 Publishing achieved a major milestone, reaching quarterly profitability for
 the first time in its history.  And, despite the previously discussed
 challenges in the United Kingdom, we were able to manage costs effectively and
 were able to post a modest profit in our European operations this quarter."
     Granger added, "The fourth quarter provided a strong finish to our fiscal
 year.  In addition to our financial results, there were several achievements
 during the quarter that will provide a foundation for future growth.  In the
 core domestic business, we reached an agreement to install the network in an
 additional 870 stores in the Albertson's chain this fiscal year.  This puts us
 on pace to reach our goal of 1,000 net installations for fiscal year 2002.
 Our direct mail operation, Market Logic, introduced Sample Logic(TM), a
 household by household, targeted at-home sampling program.  Over 40 retail
 chains, representing nearly 9,000 stores, have signed on.  Health Resource
 Publishing introduced Generic Compliance Plus, a program that will help
 pharmacy retailers improve patient compliance and persistence in generic
 drugs.  These are three examples of how we are constantly seeking new avenues
 to utilize our networks in ways that benefit consumers, manufacturers and
 retailers."
     Commenting on the upcoming fiscal year and first quarter, Granger stated,
 "Based upon our financial results in fiscal year 2001, our estimate for fiscal
 year 2002 is that both revenue and earnings will grow between 20 and 25
 percent on an annual basis, which is consistent with our previous guidance.
 For the first quarter, we expect consolidated revenue to grow approximately
 10 percent over the prior year first quarter.  In addition, we estimate
 consolidated first quarter earnings per share to be equal to or modestly
 higher than earnings per share of the first quarter of fiscal year 2001.
 Although the growth rates in the first quarter are less than the annual
 targets, based on client commitment levels and our analysis of recent selling
 activity, we believe that we will achieve our objectives for the total year."
 
     Operating and corporate highlights for the quarter and the fiscal year
 included the following:
 
 Catalina Marketing Services Worldwide
     * Core Domestic Business -- Revenue in the fourth quarter increased
 approximately 28 percent over the comparable prior year period.  On an annual
 basis, revenue in the core domestic business grew by 17 percent over the
 previous fiscal year.  The company's U.S. installed store base reached 15,475
 stores at quarter end, compared to 13,516 installed stores at the same time
 last year.  The company completed the installation of 304 stores on a net
 basis during the quarter.
     * European Operations -- The European business, which consists of in-store
 operations in France, Italy and the United Kingdom, and Internet operations in
 France, experienced a decrease in revenue from the prior year fourth quarter
 of approximately 34 percent.  The revenue decrease resulted primarily from the
 previously announced reduction in the installed store base in the United
 Kingdom and the impact of foreign exchange.  In France, revenue from
 operations grew approximately 16 percent over the fourth quarter of fiscal
 2000, before the impact of foreign exchange.  The company completed the
 installation of 65 stores on a net basis during the quarter, for a total
 installed store base at the end of the period of 2,170 stores.  The European
 business was nominally profitable this quarter and marginally dilutive to
 earnings for the fiscal year.
     * Japanese Joint Venture -- The company's Japanese joint venture posted
 quarterly revenue growth of 6 percent, compared to the fourth quarter of the
 prior year.  During the quarter, the company's Japanese joint venture's
 network was installed in 5 stores for a total installed store base of 447
 stores at the end of the quarter.  The company's portion of the net loss in
 its Japan joint venture approximated 1 cent and 4 cents per company common
 diluted share this quarter and this fiscal year, respectively.
 
     Health Services Marketing
     * Health Resource Publishing -- Health Resource Publishing produced its
 first-ever profitable quarter.  Revenue for the quarter increased
 approximately 40 percent over the comparable prior year period.  Health
 Resource Publishing added 1,032 stores on a net basis in the quarter,
 including 985 in Walgreens, for a total of 12,578 pharmacy outlets at the end
 of the year.  Health Resource Publishing contributed approximately 1 cent per
 company common diluted share this quarter.  For the fiscal year, the net loss
 for Health Resource Publishing approximated 3 cents per company common diluted
 share.
 
     Catalina Marketing Solutions
     * SuperMarkets Online -- Revenue in the quarter decreased approximately
 31 percent compared to the same period last year.  For the twelve month
 period, revenue in SuperMarkets Online grew by approximately 14 percent over
 the comparable prior year period.  Over 75 packaged goods manufacturers are
 now participating in ValuPage(R) (www.valupage.com) programs involving more
 than 240 product categories.  ValuPage is now accepted in 13,461 supermarkets
 within the Catalina Marketing Network(R).  The company's share of the
 SuperMarkets Online's net loss for the quarter and fiscal year approximated 3
 cents and
 8 cents per company common diluted share, respectively.
 
     Catalina Marketing Research
     * Research Operations -- The company's research operations posted solid
 results for the quarter, with a revenue increase of approximately 45 percent
 over the comparable prior year period.  Research operations consist of
 Alliance Research and the recently acquired Market Intelligence.  Earnings for
 the research operations were equal to approximately 1 cent per company common
 diluted share this quarter.  For the fiscal year, the research operations
 contributed approximately 2 cents per company common diluted share.
 
     Corporate
     * Stock Repurchase -- During the quarter, the company repurchased 497,200
 shares of its common stock for a total of $15.8 million, for an average price
 of $31.86 per share.  The share repurchase activity was executed under the
 $50 million Board of Directors' authorization announced in October 1999.  The
 company currently has Board authorization to repurchase an additional
 $30.1 million of common stock under the October 1999 authorization.
     * Conference Call -- The company will host a conference call today,
 April 19, 2001, at 5:00 p.m. Eastern Time to discuss the company's results.
 The dial-in number is (800) 863-4938.  Rebroadcast of the call will be
 available from 9:00 p.m. on April 19 until midnight on Friday, April 27.  The
 replay number is (800) 403-4440.
 
     Based in St. Petersburg, Fla., Catalina Marketing Corporation
 (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                12 Months
   Periods Ended March 31    2001          2000          2001        2000
 
     Revenue              $ 113,360      $ 93,690     $417,881      $350,922
     Direct Operating
      Expenses               48,813        37,298      174,237       142,229
     Selling, General and
      Administrative         29,581        22,759      106,382        88,247
     Depreciation and
      Amortization           11,548         9,549       43,243        35,175
     Income from Operations  23,418        24,084       94,019        85,271
     Interest Income/
     (Expense) and Other       (93)         (354)      (2,081)         (595)
     Minority Interest           45           223        1,142           713
     Provision for Income
      Taxes                   8,865         9,540       34,945        34,041
     Net Income             $14,505       $14,413     $ 58,135      $ 51,348
 
     Diluted:
      Earnings Per Share      $0.25         $0.25        $1.00         $0.89
      Weighted Average
       Shares
        Outstanding          57,584        57,591       57,919        57,957
 
      Basic:
       Earnings Per Share     $0.26         $0.26        $1.04         $0.92
       Weighted Average
        Shares
        Outstanding          55,936        55,254       55,767        55,611
 
 
 
                              Selected Other Data
 
                                                            March 31
                                                        2001         2000
 
     Balance Sheet and Cash Flow (in thousands):
 
      Cash                                             $7,280       $ 13,765
      Stockholders' Equity                            211,597        141,045
      Twelve Month EBITDA                             137,262        120,446
 
     U.S. Checkout Coupon Business:
      Number of Stores at Quarter End                  15,475         13,516
      Net Stores Installed During
      Quarter/YTD                                   304/1,959      496/1,424
      Promotions Printed During
      Quarter/YTD (in millions)                     856/3,341      678/2,810
      Weekly Shopper Reach at Quarter End
       (in millions)                                      185            165
 
     International Checkout Coupon Business:
      Number of Stores at Quarter End                   2,617          2,587
      Net Stores Installed During Quarter/YTD           70/30        111/652
      Promotions Printed During
      Quarter/YTD (in millions)                        76/489        111/502
      Weekly Shopper Reach at Quarter End
       (in millions)                                       30             35
 
 
 

SOURCE Catalina Marketing Corporation
    ST. PETERSBURG, Fla., April 19 /PRNewswire/ -- Catalina Marketing
 Corporation (NYSE:   POS) today reported results for its fourth quarter and
 fiscal year period ended March 31, 2001.  Revenue for the quarter grew
 21 percent to $113.4 million, compared to $93.7 million in the prior year
 fourth quarter.  Net income for the quarter totaled $14.5 million, or 25 cents
 per diluted share, compared to $14.4 million, or 25 cents per diluted share,
 for the prior year period.
     For the twelve months ended March 31, 2001, revenue totaled
 $417.9 million, up 19 percent, compared to $350.9 million for the prior year.
 Net income for the current fiscal year totaled $58.1 million, up 13 percent
 from $51.3 million for the annual period last year.  For fiscal year 2001,
 earnings per diluted share were $1.00, compared to earnings per diluted share
 of $.89 in fiscal year 2000, an increase of 12 percent.
     Daniel D. Granger, President and Chief Executive Officer, commented, "I am
 pleased that the performance of our management team enabled us to reach the
 top of our range for earnings expectations in the fourth quarter.  In the face
 of challenges we outlined at the end of our last quarter, we made appropriate
 operational changes to ensure we would meet our revised earnings estimates.
 As a result, the core domestic business achieved outstanding revenue growth,
 increasing approximately 28 percent over last year.  Health Resource
 Publishing achieved a major milestone, reaching quarterly profitability for
 the first time in its history.  And, despite the previously discussed
 challenges in the United Kingdom, we were able to manage costs effectively and
 were able to post a modest profit in our European operations this quarter."
     Granger added, "The fourth quarter provided a strong finish to our fiscal
 year.  In addition to our financial results, there were several achievements
 during the quarter that will provide a foundation for future growth.  In the
 core domestic business, we reached an agreement to install the network in an
 additional 870 stores in the Albertson's chain this fiscal year.  This puts us
 on pace to reach our goal of 1,000 net installations for fiscal year 2002.
 Our direct mail operation, Market Logic, introduced Sample Logic(TM), a
 household by household, targeted at-home sampling program.  Over 40 retail
 chains, representing nearly 9,000 stores, have signed on.  Health Resource
 Publishing introduced Generic Compliance Plus, a program that will help
 pharmacy retailers improve patient compliance and persistence in generic
 drugs.  These are three examples of how we are constantly seeking new avenues
 to utilize our networks in ways that benefit consumers, manufacturers and
 retailers."
     Commenting on the upcoming fiscal year and first quarter, Granger stated,
 "Based upon our financial results in fiscal year 2001, our estimate for fiscal
 year 2002 is that both revenue and earnings will grow between 20 and 25
 percent on an annual basis, which is consistent with our previous guidance.
 For the first quarter, we expect consolidated revenue to grow approximately
 10 percent over the prior year first quarter.  In addition, we estimate
 consolidated first quarter earnings per share to be equal to or modestly
 higher than earnings per share of the first quarter of fiscal year 2001.
 Although the growth rates in the first quarter are less than the annual
 targets, based on client commitment levels and our analysis of recent selling
 activity, we believe that we will achieve our objectives for the total year."
 
     Operating and corporate highlights for the quarter and the fiscal year
 included the following:
 
 Catalina Marketing Services Worldwide
     * Core Domestic Business -- Revenue in the fourth quarter increased
 approximately 28 percent over the comparable prior year period.  On an annual
 basis, revenue in the core domestic business grew by 17 percent over the
 previous fiscal year.  The company's U.S. installed store base reached 15,475
 stores at quarter end, compared to 13,516 installed stores at the same time
 last year.  The company completed the installation of 304 stores on a net
 basis during the quarter.
     * European Operations -- The European business, which consists of in-store
 operations in France, Italy and the United Kingdom, and Internet operations in
 France, experienced a decrease in revenue from the prior year fourth quarter
 of approximately 34 percent.  The revenue decrease resulted primarily from the
 previously announced reduction in the installed store base in the United
 Kingdom and the impact of foreign exchange.  In France, revenue from
 operations grew approximately 16 percent over the fourth quarter of fiscal
 2000, before the impact of foreign exchange.  The company completed the
 installation of 65 stores on a net basis during the quarter, for a total
 installed store base at the end of the period of 2,170 stores.  The European
 business was nominally profitable this quarter and marginally dilutive to
 earnings for the fiscal year.
     * Japanese Joint Venture -- The company's Japanese joint venture posted
 quarterly revenue growth of 6 percent, compared to the fourth quarter of the
 prior year.  During the quarter, the company's Japanese joint venture's
 network was installed in 5 stores for a total installed store base of 447
 stores at the end of the quarter.  The company's portion of the net loss in
 its Japan joint venture approximated 1 cent and 4 cents per company common
 diluted share this quarter and this fiscal year, respectively.
 
     Health Services Marketing
     * Health Resource Publishing -- Health Resource Publishing produced its
 first-ever profitable quarter.  Revenue for the quarter increased
 approximately 40 percent over the comparable prior year period.  Health
 Resource Publishing added 1,032 stores on a net basis in the quarter,
 including 985 in Walgreens, for a total of 12,578 pharmacy outlets at the end
 of the year.  Health Resource Publishing contributed approximately 1 cent per
 company common diluted share this quarter.  For the fiscal year, the net loss
 for Health Resource Publishing approximated 3 cents per company common diluted
 share.
 
     Catalina Marketing Solutions
     * SuperMarkets Online -- Revenue in the quarter decreased approximately
 31 percent compared to the same period last year.  For the twelve month
 period, revenue in SuperMarkets Online grew by approximately 14 percent over
 the comparable prior year period.  Over 75 packaged goods manufacturers are
 now participating in ValuPage(R) (www.valupage.com) programs involving more
 than 240 product categories.  ValuPage is now accepted in 13,461 supermarkets
 within the Catalina Marketing Network(R).  The company's share of the
 SuperMarkets Online's net loss for the quarter and fiscal year approximated 3
 cents and
 8 cents per company common diluted share, respectively.
 
     Catalina Marketing Research
     * Research Operations -- The company's research operations posted solid
 results for the quarter, with a revenue increase of approximately 45 percent
 over the comparable prior year period.  Research operations consist of
 Alliance Research and the recently acquired Market Intelligence.  Earnings for
 the research operations were equal to approximately 1 cent per company common
 diluted share this quarter.  For the fiscal year, the research operations
 contributed approximately 2 cents per company common diluted share.
 
     Corporate
     * Stock Repurchase -- During the quarter, the company repurchased 497,200
 shares of its common stock for a total of $15.8 million, for an average price
 of $31.86 per share.  The share repurchase activity was executed under the
 $50 million Board of Directors' authorization announced in October 1999.  The
 company currently has Board authorization to repurchase an additional
 $30.1 million of common stock under the October 1999 authorization.
     * Conference Call -- The company will host a conference call today,
 April 19, 2001, at 5:00 p.m. Eastern Time to discuss the company's results.
 The dial-in number is (800) 863-4938.  Rebroadcast of the call will be
 available from 9:00 p.m. on April 19 until midnight on Friday, April 27.  The
 replay number is (800) 403-4440.
 
     Based in St. Petersburg, Fla., Catalina Marketing Corporation
 (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                12 Months
   Periods Ended March 31    2001          2000          2001        2000
 
     Revenue              $ 113,360      $ 93,690     $417,881      $350,922
     Direct Operating
      Expenses               48,813        37,298      174,237       142,229
     Selling, General and
      Administrative         29,581        22,759      106,382        88,247
     Depreciation and
      Amortization           11,548         9,549       43,243        35,175
     Income from Operations  23,418        24,084       94,019        85,271
     Interest Income/
     (Expense) and Other       (93)         (354)      (2,081)         (595)
     Minority Interest           45           223        1,142           713
     Provision for Income
      Taxes                   8,865         9,540       34,945        34,041
     Net Income             $14,505       $14,413     $ 58,135      $ 51,348
 
     Diluted:
      Earnings Per Share      $0.25         $0.25        $1.00         $0.89
      Weighted Average
       Shares
        Outstanding          57,584        57,591       57,919        57,957
 
      Basic:
       Earnings Per Share     $0.26         $0.26        $1.04         $0.92
       Weighted Average
        Shares
        Outstanding          55,936        55,254       55,767        55,611
 
 
 
                              Selected Other Data
 
                                                            March 31
                                                        2001         2000
 
     Balance Sheet and Cash Flow (in thousands):
 
      Cash                                             $7,280       $ 13,765
      Stockholders' Equity                            211,597        141,045
      Twelve Month EBITDA                             137,262        120,446
 
     U.S. Checkout Coupon Business:
      Number of Stores at Quarter End                  15,475         13,516
      Net Stores Installed During
      Quarter/YTD                                   304/1,959      496/1,424
      Promotions Printed During
      Quarter/YTD (in millions)                     856/3,341      678/2,810
      Weekly Shopper Reach at Quarter End
       (in millions)                                      185            165
 
     International Checkout Coupon Business:
      Number of Stores at Quarter End                   2,617          2,587
      Net Stores Installed During Quarter/YTD           70/30        111/652
      Promotions Printed During
      Quarter/YTD (in millions)                        76/489        111/502
      Weekly Shopper Reach at Quarter End
       (in millions)                                       30             35
 
 
 SOURCE  Catalina Marketing Corporation

RELATED LINKS

http://www.catalinamktg.com