ADVO Announces Record First Quarter Fiscal 1999 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)--January 21, 1999--ADVO, Inc. (NYSE NYSE See: New York Stock Exchange : AD) reported record results for its first fiscal quarter of 1999, ended December December: see month. 26, 1998. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter were $0.45 versus $0.36 for the prior year period, an increase of 25.0%. 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. of $20.1 million exceeded prior year by $2.9 million, or 16.8%. Revenues were $268.6 million, an increase of $6.5 million, or 2.5% over the prior year. All three traditional shared mail revenue indicators showed improvement versus fiscal 1998's fourth quarter results. First quarter fiscal 1999 pieces per package were 8.86, up 0.9% over the first quarter of fiscal 1998. Revenue per thousand pieces was $37.79, up 0.6%. Packages mailed were 739.0 million, down 0.9%. Although not captured in the traditional shared mail statistics, the Company realized revenue increases from its A.N.N.E. business unit (which extends ADVO's shared mail reach through partnerships with regional mailers), as well as targeting revenues related to its national ADVO Targeting Zone (ATZ ATZ Aerodrome Traffic Zone ATZ All Things Zombie (website) ATZ Alumina Toughened Zirconia ATZ Atypical Transformation Zone ATZ Attention Restore ATZ a to Z ) platform. In addition, ADVO's MailCoups subsidiary contributed to the quarter's revenue growth. First quarter gross margin improved 2.0 percentage points, to 27.6%, versus 25.6% in the prior year. SG&A was $54.1 million, up $4.1 million, or 8.2%, reflecting additional spending related to Year 2000 compliance. Record operating income of $20.1 million increased 0.9 percentage points as a percent of revenue, to 7.5%. Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Mulloy You can improve this article by adding links to related material, within the existing text. After links have been created, remove this message. For more information, see the . A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: ." Mr. Mulloy, who succeeded Robert Kamerschen as Chief Executive Officer on January 1, further stated, "Given our good start for fiscal 1999, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the achievability of E.P.S. expectations and margin improvement, despite the potential risks associated with continued consolidations within the retail industry." ADVO's Chairman of the Board, Robert Kamerschen, observed, "I am extremely pleased and proud that ADVO achieved another record level of operating and financial performance during my last quarter as Chief Executive Officer." The Company stated that its current forecasts are based on assumptions of continuing growth in unit volumes and revenue per piece, 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, but are not limited to, changes in customer demand, changes in postal and paper expenditures, the successful completion of the year 2000 transition, and other general economic factors. ADVO is the nation's largest full-service targeted direct mail marketing services company with annual revenues of over $1 billion. ADVO specializes in shared and solo direct mail services and provides customized Microtargeting(R) solutions at an affordable price for its clients' print advertising 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 approximately 60 million households weekly. An additional 21.5 million households can be reached, on a shared mail basis, through ADVO's National Network Extension (A.N.N.E.). ADVO's wholly-owned subsidiary, MailCoups, Inc., produces Super Coups, a cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. , direct mail-based advertising solution for local neighborhood businesses which utilizes an envelope format. ADVO has 20 mail processing facilities and 65 sales offices nationwide. ADVO's corporate headquarters are located at One Univac Lane, Windsor, Connecticut Windsor was the first English settlement in the State of Connecticut, the 5th Colony to receive Statehood in the United States of America. Windsor is a suburban community in Hartford County, adjacent to the north to Connecticut's Capital, Hartford, with a relatively diverse 06095. The Company can be visited at its Web site at www.advo.com.
ADVO, Inc.
Results of Operations (Unaudited)
Quarter Ended December 26, 1998
(In thousands, except per share data)
Quarter Ended
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December 26, December 27,
1998 1997
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Revenues $268,649 $262,144
Cost of sales 194,431 194,929
Selling, general & administrative 54,132 50,025
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Operating Income 20,086 17,190
Interest expense 3,555 3,561
Other (expense)/Interest income, net (10) 106
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Income before income taxes 16,521 13,735
Provision for income taxes 6,361 5,357
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Net Income $10,160 $8,378
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Earnings per common share $0.46 $0.37
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Earnings per common share
- assuming dilution $0.45 $0.36
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Weighted average common shares 22,071 22,419
Weighted average diluted shares 22,450 23,058
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