ADVO Announces FY97 Record Third Quarter Results.WINDSOR Windsor, British royal family Windsor (wĭn`zər), family name of the royal house of Great Britain. The name Wettin, family name of Albert of Saxe-Coburg-Gotha, consort of Queen Victoria, was changed to Windsor by George V in 1917. , Conn.--(BUSINESS WIRE)--July 22, 1997--ADVO, Inc. (NYSE NYSE See: New York Stock Exchange : AD) today announced the results of its third fiscal quarter ended June June: see month. 28, 1997. Earnings per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the third quarter were $0.38 versus $0.18 for the prior year period. 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. for the third quarter fiscal 1997 increased to a record $19.1 million, up from $11.7 million during the prior year period. Record revenues for a third quarter were $258.2 million, up 5%, versus the prior year period of $245.7 million. FY97 year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. operating income and earnings per share from continuing operations were $41.1 million and $0.74, respectively, versus FY96 nine month operating income and earnings per share from continuing operations of $23.9 million and $0.47, after excluding 1996 Recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. Expenses of $12.1 million. FY97 year-to-date results include $0.14 per share incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. interest expense compared to the prior year period. FY96 year-to-date results include a $0.07 per share gain associated with the sale of Midcoast Press. Year-to-date revenue in FY97 of $755.9 million is up 3% from the prior year period. The year to year increase in revenue for the third quarter was driven by increased unit volume (pieces per package), offset somewhat by declines in revenue per piece as well as a strategically-driven reduction in shared mail packages distributed. Pieces per package were 8.67, up 11.6%, packages mailed were 781.8 million, down 2.5% and revenue per piece was $36.5, down 3.8%. The decline in packages was driven by the company ending its "second in-home in-home adj. Operating in or provided at the home of the customer or patient: in-home shopping; an in-home nursing program. date" programs in Texas. The decline in revenue per piece was the result of volume driven price declines and product mix. For the quarter, gross margin was 26.8% versus 22.6% in the prior year. SG&A was $50.2 million, higher than the prior year period and slightly lower than second quarter FY97. Continued cost savings associated with the company's re-engineering re-engineering - The examination and modification of a system to reconstitute it in a new form and the subsequent implementation of the new form. http://erg.abdn.ac.uk/users/brant/sre. efforts were offset by increases in compensation, cost of living increases, and planned investments in technology and infrastructure. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. "Kam a. 1. Crooked; awry. " Kamerschen, ADVO's chairman an chief executive officer, said: "We continue to be pleased with our strong 1997 results. Record operating income of $19.1 million for the third quarter is 64% higher than third quarter last year. Our strong growth in pieces per package helped to drive topline revenue, offsetting our strategic withdrawal from unprofitable package distribution. Moreover, we continue on our mission to improve profit margin as a percentage of revenues even at the expense of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. revenue growth. We believe that unit volumes will continue to be strong for the remainder of FY97, but at a somewhat slower pace. Earnings growth should be in line with current expectations." The company stated that its current forecasts are based on a continuing growth in unit volumes, and that actual performance could vary depending on these assumptions. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this report are subject to many uncertainties in the company's operations and business environment. Examples of such uncertainties include changes in customer demand, postal and paper expenditures, and the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of expected benefits associated with the company's re-engineering initiative. -0- ADVO is the nation's largest full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. targeted direct mail marketing services company with annual revenues of almost $1 billion. ADVO specializes in shared and solo direct mail services and provides customized Microtargeting Microtargeting is the use by political parties of direct marketing datamining techniques that involve predictive market segmentation (aka cluster analysis). It is used by United States Republican and Democratic political parties and candidates to track individual voters and (R) solutions for its clients' needs. The company's Mailbox A simulated mailbox in the computer that holds e-mail messages. Mailboxes are stored on disk as a file of messages, a database of messages or as an individual file for each message. The standard mailboxes are usually In, Out, Trash and Junk (Spam). Values(R) branded shared mail program is distributed nationally to over 61 million households weekly. An additional 16 million households can be reached on a shared mail basis through ADVO's National Network Extension (ANNE). ADVO also offers transportation services. It has 19 mail processing facilities and 70 sales offices nationwide. ADVO's corporate headquarters are located at One Univac Lane, Windsor, Conn. 06095. ADVO can now be visited at its web site @ www.advo.com . -0-
ADVO, Inc.
The Results of Operations (Unaudited)
Three and Nine Months Ended June 28, 1997
(In thousands, except per share data)
Three Months Ended
June 28, June 29,
1997 1996
Revenues $258,243 $245,698
Cost of sales 188,929 190,246
Selling, general and
administrative 50,183 43,798
Nonrecurring charges -- --
Gain on sale of business line -- --
Operating income 19,131 11,654
Interest expense 3,631 4,264
Other (expense)/Interest
income, net (18) (28)
Income before income taxes 15,482 7,362
Provision for income taxes 6,038 2,971
Income from continuing operations 9,444 4,391
Discontinued Operations:
Loss on disposal of discontinued
operations, net of tax -- --
Net Income (loss) $9,444 $4,391
Earnings (Loss) Per Share
Earnings from continuing
operations $ 0.38 $ 0.18
Loss on disposal of discontinued
operations, net of tax -- --
Net earnings (loss) per share $ 0.38 $ 0.18
Cash dividends declared
per share -- --
Weighted average common and
common equivalent shares 24,671 25,003
-0-
ADVO, Inc.
The Results of Operations (Unaudited)
Three and Nine Months Ended June 28, 1997
(In thousands, except per share data)
Nine Months Ended
June 28, June 29,
1997 1996
Revenues $755,868 $734,221
Cost of sales 565,541 575,562
Selling, general and
administrative 149,236 137,462
Nonrecurring charges -- 12,082
Gain on sale of business line -- (2,687)
Operating income 41,091 11,802
Interest expense 11,211 5,618
Other (expense)/Interest
income, net (4) 743
Income before income taxes 29,876 6,927
Provision for income taxes 11,651 2,674
Income from continuing operations 18,225 4,253
Discontinued Operations:
Loss on disposal of discontinued
operations, net of tax -- (8,199)
Net Income (loss) $18,225 $(3,946)
Earnings (Loss) Per Share
Earnings from continuing
operations $ 0.74 $ 0.17
Loss on disposal of discontinued
operations, net of tax -- (0.33)
Net earnings (loss) per share $ 0.74 $ 0.16
Cash dividends declared
per share -- $10,025
Weighted average common and
common equivalent shares 24,636 24,642
-0-
CONTACT: ADVO, Windsor Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. McCombs, 860/285-6391 |
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