ACNielsen Reports First-Quarter Results Performance Improves, Turnaround Remains on Track.STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , Conn.--(BUSINESS WIRE)--April 16, 1997-- ACNielsen ACNielsen is a global marketing research firm, based in Schaumburg, Illinois. This company was founded in 1923 in Chicago, Illinois, by Arthur C. Nielsen, Sr., in order to give marketers reliable and objective information on the impact of marketing and sales programs. Corporation (NYSE NYSE See: New York Stock Exchange : ART) today reported improved operating and net results for the first quarter, as the company continues to make progress toward achieving its income targets for the full year. The company narrowed its first-quarter net loss to $4.1 million, or $0.07 per share, a $15.1 million improvement over last year's net loss of $19.2 million, or $0.34 a share. Led by a dramatic profit improvement in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the company reduced its first-quarter operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. by $9.6 million, to $9.2 million. "Our first-quarter results demonstrate our continuing progress in turning ACNielsen toward profitable growth," said Nicholas Nicholas, Russian grand duke Nicholas (Nikolai Nikolayevich) (nyĭkəlī` nyĭkəlī`əvĭch), 1856–1929, Russian grand duke and army officer; first cousin of Czar Alexander III and grandson of Czar L. Trivisonno, chairman and chief executive officer. "We expect steadily higher income in each of the remaining quarters of 1997, as we aim to double our operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and net income for the full year." Driven by growth in the Americas A·mer·i·cas , the See America. and Asia Pacific regions, first-quarter revenue advanced 8.7% in local currency. On a reported basis, revenue rose 5.7%, to $324.8 million, reflecting the impact of the strong U.S. dollar, particularly in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .
"Our ongoing efforts to streamline operations, enhance quality, reduce delivery time and improve service to our clients are producing improved operating results -- even during the traditionally slow first quarter," Trivisonno said. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Trivisonno, ACNielsen remains focused on its primary objectives: growing the business profitably; providing superior service to clients; and creating superior long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. value for shareholders. ACNielsen's 1996 first-quarter net loss excludes the impact of a tax benefit the company recorded in the third quarter last year to reduce its full-year effective tax rate to 48%. Had the company provided for a 48% effective tax rate in last year's first quarter, its net loss for the period would have been $9.2 million, or $0.16 per share. Americas Region Americas revenue, at $121.4 million, was up 12.8% over the prior year. Excluding the impact of currency translation, revenue grew 13.9%. Operating income was $3.3 million, compared with last year's operating loss of $5.5 million. In the United States, revenue grew 9.8%, to $73.3 million, led by increased sales of key-account information in the retail measurement business, as well as consumer panel services. The U.S. recorded its third consecutive profitable quarter, as operating income reached $0.5 million, an $8.0 million improvement over last year's $7.5 million loss. The gain was the result of increased operating efficiency and higher revenue. In Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , revenue climbed 17.6%, to $48.1 million, driven by growth in each of Canada's business segments, and increased sales of retail tracking, customized research and television audience measurement services in a number of Latin American markets. Operating income, at $2.8 million, was up 42.7% from the prior year, reflecting strong revenue growth and increased operating efficiency. Europe, Middle East and Africa Region Revenue for the Europe, Middle East and Africa (EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ) region grew 4.2% in local currency, led by gains in Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. and France. However, due to the impact of the strong U.S. dollar, reported revenue declined slightly, to $133.6 million. EMEA reduced its operating loss for the quarter to $7.0 million, primarily as a result of improved operating performance in the U.K. and France. During the quarter, the region expanded its geographic presence by acquiring a 90% interest in a market research company in Israel, and increasing its ownership to 100% in ACNielsen South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . Results of these businesses will be included in ACNielsen's consolidated results beginning with the second quarter of 1997. Asia Pacific Region Revenue, at $61.6 million, was 8.8% higher than last year, led by increased sales in Taiwan and Indonesia. The region's operating loss, however, increased to $2.4 million, due to higher overall operating costs operating costs npl → gastos mpl operacionales . During the quarter, ACNielsen announced a reorganization of its Asia Pacific operations to improve client service, further integrate its businesses across the region, enhance operating efficiency and increase profitability. Japan ACNielsen Japan had revenue of $8.2 million, up slightly from the prior year. Excluding the impact of the strong U.S. dollar, revenue grew 14.7%. Japan reduced its operating loss by $1.8 million, to $3.1 million, as it continued to more closely align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. its operating costs with revenues. ACNielsen, offering services in over 90 countries and with 1996 revenues of $1.4 billion, is a global leader in delivering market research, information and analysis to the consumer products and service industries. -0-
ACNielsen Corporation
Condensed Statements of Earnings
(in millions, except per share amounts)
For the Quarters Ended March 31,
1997 1996
Operating Revenue $ 324.8 $ 307.3
Operating Costs 190.5 179.4
Selling & Administrative
Expenses 119.7 122.2
Depreciation & Amortization 23.8 24.5
Operating Loss (9.2) (18.8)
Non-Operating Income, Net 1.6 1.2
Loss Before Income
Tax Benefit (Provision) (7.6) (17.6)
Income Tax Benefit
(Provision)(a) 3.5 (1.6)
Net Loss $ (4.1) $ (19.2)
Net Loss Per Share
of Common Stock (b) $ (0.07) $ (0.34)
Average Number of
Shares Outstanding (b) 56.9 56.6
(a) The tax provision for the quarter ended March 31, 1996 was
calculated on a separate-company basis. For the year ended December
31, 1996, the Company recorded a tax provision at a 48% effective
rate, with the adjustment recorded on a year-to-date basis in the
third quarter. Utilizing a 48% effective rate for the quarter ended
March 31, 1996 would have resulted in a tax benefit of $8.4 million
and a net loss of $9.2 million, or $0.16 per share.
(b) For the period prior to November 1, 1996, the computation is
based on the average number of shares of D&B Common Stock
outstanding, adjusted for the one for three distribution ratio.
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ACNielsen Corporation
Results by Geographic Region
(in millions)
For the Quarters Ended March 31,
Revenue Operating Income (Loss)
1997 1996 1997 1996
United States $73.3 $ 66.7 $ 0.5 $(7.5)
Canada/Latin America 48.1 40.9 2.8 2.0
Total Americas 121.4 107.6 3.3 (5.5)
Europe, Middle East
& Africa 133.6 135.0 (7.0) (8.1)
Asia Pacific 61.6 56.6 (2.4) (0.3)
ACN Japan 8.2 8.1 (3.1) (4.9)
Total $324.8 $307.3 $(9.2) $(18.8)
-0-
ACNielsen Corporation
Condensed Consolidated Balance Sheets
(in millions)
March 31, December 31,
1997 1996
Assets
Current Assets
Cash and Cash Equivalents $ 140.1 $ 185.0
Accounts Receivable - Net 257.5 270.6
Other Current Assets 36.9 30.8
Total Current Assets 434.5 486.4
Marketable Securities and
Other Investments 24.7 26.4
Property, Plant & Equipment
- Net 173.8 186.1
Other Assets - Net 333.3 337.2
TOTAL ASSETS $ 966.3 $1,036.1
Liabilities and Shareholders' Equity
Current Liabilities
Short-term Debt $ 32.5 $ 36.8
Other Current Liabilities 364.9 409.5
Total Current Liabilities 397.4 446.3
Long-Term Liabilities 127.6 135.8
TOTAL LIABILITIES 525.0 582.1
Commitments and Contingencies
Shareholders' Equity 441.3 454.0
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 966.3 $1,036.1
CONTACT: Media Contact: Investor Contact: Barry Holt holt n. Archaic A wood or grove; a copse. [Middle English, from Old English.] holt Noun the lair of an otter [from (203) 961-3340 Darial Sneed (203) 961-3345 |
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