ADVO Announces Record Third Quarter Fiscal 1999 Earnings.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 20, 1999-- ADVO Inc. (NYSE NYSE See: New York Stock Exchange : AD) reported record earnings results for its third fiscal quarter of 1999, ended June June: see month. 26, 1999. 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 $0.58 versus $0.52 for the prior year period, an increase of 11.5%. Record 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 $23.8 million exceeded the prior year period by $0.6 million, or 2.5%. Revenues were $262.1 million, a decrease of $7.0 million, or 2.6%, versus the prior year period. Fiscal 1999 year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. revenues of $784.2 million were essentially flat to prior year and continued the trends seen in recent quarters. This includes shifts away from heavier, less profitable products, which has a negative impact upon revenue but improves margins. Third quarter gross margin as a percent of revenue increased 0.9 percentage points to 28.7% versus 27.8% in the prior year period. SG&A was $51.4 million, down $0.3 million or 0.6%. Operating income of $23.8 million increased 0.5 percentage points as a percent of revenue versus prior year, to 9.1%. Third quarter fiscal 1999 packages distributed were 768.1 million, down 0.1% versus the prior year period. Revenue per thousand pieces was $37.39, up 0.9%, and pieces per package were 8.37, down 4.4%. Although not captured in these traditional shared mail revenue growth 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. Including A.N.N.E. and ATZ revenues in shared mail would have added 0.8pp to third quarter year-over-year shared mail revenue growth. Fiscal 1999 year-to-date operating income and diluted earnings per share were $57.3 million and $1.30, respectively, versus prior year nine month operating income and diluted earnings per share of $52.8 million and $1.12, respectively. The $1.30 diluted earnings per share in the first nine months of fiscal 1999 represents an increase of $0.18, or 16.1%, over the prior year period. 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 stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. share price, in conjunction with record E.B.I.T.D.A., we repurchased approximately 550,000 shares during the quarter." 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 over $1 billion. ADVO specializes in shared and solo direct mail services and provides 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 24 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 Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , MailCoups, Inc., produces SuperCoups, 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. The 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 and pricing, postal and paper prices, the efficiencies achieved with technology upgrades, the successful completion and estimated costs of the Year 2000 program and other general economic factors. -0-
ADVO, Inc.
Results of Operations (Unaudited)
Three and Nine Months Ended June 26, 1999
(In thousands, except per share data)
Three Months Ended Nine Months Ended
------------------- -------------------
June 26, June 27, June 26, June 27,
1999 1998 1999 1998
-------- -------- -------- --------
Revenues $262,058 $269,021 $784,194 $784,397
Cost of sales 186,931 194,155 567,365 578,389
Selling, general &
administrative 51,352 51,662 159,488 153,158
-------- -------- -------- --------
Operating Income 23,775 23,204 57,341 52,850
Interest expense 3,567 3,402 10,616 10,631
Other expense/Interest
(income), net 25 (102) 40 (333)
-------- -------- -------- --------
Income before income taxes 20,183 19,904 46,685 42,552
Provision for income taxes 7,770 7,762 17,974 16,596
-------- -------- -------- --------
Net Income $ 12,413 $ 12,142 $ 28,711 $ 25,956
======== ======== ======== ========
Earnings per common share $ 0.58 $ 0.54 $ 1.32 $ 1.16
======== ======== ======== ========
Earnings per common share
- assuming dilution $ 0.58 $ 0.52 $ 1.30 $ 1.12
======== ======== ======== ========
Weighted average common
shares: 21,305 22,502 21,783 22,452
Weighted average diluted
shares: 21,493 23,189 22,057 23,095
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion