ADVO Fourth Quarter E.P.S. Growth of 23% Completes Strong Fiscal 2003.Business Editors 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)--Oct. 16, 2003 ADVO, Inc. (NYSE NYSE See: New York Stock Exchange : AD) today reported diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. E.P.S. for its fourth fiscal quarter were $0.70, an increase of 22.8% over the prior year quarter. Revenues for the quarter ended September September: see month. 27, 2003 reached $295.2 million, increasing $7.4 million or 2.6%. For the full fiscal year, revenues were $1,163.1 million, up 2.9%, and diluted E.P.S. were $2.47. Full-year diluted E.P.S. was up over the prior year by 19.3% on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, and up 12.3% excluding a charge of $0.13 incurred in the third quarter of the prior year to strengthen the Company's sales and marketing organization. Broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased growth in total advertising piece volumes drove the Company's fourth quarter results. Total shared advertising pieces grew 7.5% over the prior year period, and pieces per package grew 6.9%. The Company has now generated pieces per package growth for three consecutive quarters and ten consecutive months. Revenue per piece was down 4.7% primarily due to continued product mix differences, including increases in volumes of lighter weight, lower revenue products. Shared packages distributed were up 0.6%, representing continued growth in the frequency and reach of the Company's 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. network. 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 . n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op in our early outlook for next year, and continue to expect full-year fiscal 2004 E.P.S. in the range of $2.62-2.75." The Company's tax rate for the quarter was 30.5%, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. by 4.6 percentage points versus prior year due to R&D tax credits discussed at the end of its third fiscal quarter. It is expected that the Company's effective tax rate for fiscal 2004 will be in the range of 36%, slightly below historical levels. The Company continues to generate strong cash flows. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the quarter was $22.4 million, a 161% increase over the prior year period, and operating cash flow for the fiscal year was $91.9 million, up 37.8%. These positive results resulted in a quarter-end debt balance of $130.3 million, down $39.0 million from a year ago. Additionally, quarter-end shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was a record $89.9 million.
Diluted Earnings per Share: Reconciliation of
GAAP to Non-GAAP Measures
------------------------- Year Ended
Sept 27, Sept 28, %
2003 2002 Change
------- ------- -------
Diluted Earnings per share - As Reported $2.47 $2.07 19.3%
One-time Charge -- 0.13 --
------- ------- -------
Diluted Earnings per share - Pro Forma $2.47 $2.20 12.3%
======= ======= =======
The Company will hold a conference call to discuss its fourth quarter earnings today at 5:15-6:00 p.m. ET. The call in number is 1-800-478-6251, and the replay number is 888-203-1112 (access code #671812). The replay will be available until midnight, November November: see month. 7, 2003. The call will also be available via webcast through the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of ADVO's website at www.advo.com. This report contains certain forward looking statements regarding the Company's results of operations and financial position within the meaning of Sections 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Such forward looking statements are based on current information and expectations and are subject to risks and uncertainties which could cause the Company's actual results to differ materially from those in the forward looking statements. The Company's business is promotional in nature, and ADVO serves its clients on a "just in time" basis. As a result, fluctuations in the amount, timing, pages, weight, and kinds of advertising pieces can vary significantly from week to week, depending on its customers' promotional needs, inventories, and other factors. In any particular quarter these transactional fluctuations are difficult to predict, and can materially affect the Company's revenue and profit results. The Company's business contains additional risks and uncertainties which include, but are not limited to: general changes in customer demand and pricing; the possibility of consolidation in the retail sector; the impact of economic or political conditions on retail advertising spending and the Company's distribution system; postal and paper prices; possible governmental regulation or legislation affecting aspects of the Company's business; the efficiencies achieved with technology upgrades; the amount of shares the Company repurchases in the future under its buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program; fluctuations in interest rates related to the outstanding debt; and other general economic factors. ADVO is the largest full-service targeted direct mail marketing services company 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. , with annual revenues of over $1.1 billion. The Company's shared mail advertising programs reach 104 million U.S. households on a weekly and monthly basis. This includes its core ShopWise(TM) branded programs, and the reach of its ADVO National Network Extension (A.N.N.E.) program. Additionally, the Company's SuperCoups(R) advertising solutions provide targeted advertising for local neighborhood businesses. ADVO launched the America's Looking For Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. Its Missing Children(R) program in partnership with the National Center for Missing & Exploited Children and the United States Postal Service postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval in 1985, and ADVO's missing child cards are responsible for safely recovering 130 children. ADVO has 23 mail processing facilities and 50 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, and the Company can be visited at its Web site at www.advo.com.
ADVO, Inc.
Results of Operations (Unaudited)
Quarter and Year Ended September 27, 2003
(In thousands, except per share data)
Quarter Ended Year Ended
------------------- ----------------------
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
2003 2002 2003 2002
--------- --------- ---------- -----------
Revenues $295,184 $287,805 $1,163,113 $1,130,113
Cost of sales 218,791 214,670 859,223 830,800
Selling, general &
administrative 55,086 52,445 222,248 219,110
-------- -------- ---------- ----------
Operating Income 21,307 20,690 81,642 80,203
Interest expense 1,286 3,203 7,356 13,238
Other (income) / expense,
net (259) (13) (1,123) 810
-------- -------- ---------- ----------
Income before income taxes 20,280 17,500 75,409 66,155
Provision for income taxes 6,195 6,144 25,865 24,147
-------- -------- ---------- ----------
Net Income $ 14,085 $ 11,356 $ 49,544 $ 42,008
======== ======== ========== ==========
Basic earnings per share $ 0.71 $ 0.57 $ 2.50 $ 2.11
======== ======== ========== ==========
Diluted earnings per share $ 0.70 $ 0.57 $ 2.47 $ 2.07
======== ======== ========== ==========
Weighted average common
shares: 19,878 19,852 19,833 19,935
Weighted average diluted
shares: 20,263 20,071 20,086 20,247
Simultaneously with this earnings release, the Company announced a
3-for-2 stock split, effected in the form of a 50% stock dividend, to
be distributed on November 7, 2003 to shareholders of record on
October 24, 2003. The stock split will require retroactive restatement
of all historical per share data. Presented below are unaudited pro
forma basic and diluted earnings per share and weighted average common
and diluted shares.
Quarter Ended Year Ended
---------------- ----------------
Sept. Sept. Sept. Sept.
27, 28, 27, 28,
2003 2002 2003 2002
------- -------- ------- --------
Basic earnings per share $0.47 $0.38 $1.67 $1.40
Diluted earnings per share $0.46 $0.38 $1.64 $1.38
Weighted average common shares: 29,817 29,778 29,749 29,903
Weighted average diluted shares: 30,395 30,106 30,129 30,370
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