ADVO Grows Revenue +5%, E.P.S. +31% In Its Second Quarter.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)--April 17, 2003 ADVO, Inc. (NYSE NYSE See: New York Stock Exchange :AD) today reported record revenue and profits for its second fiscal quarter ended March 29, 2003. Revenues for the quarter were $287.1 million, an increase over the prior year quarter of 4.6%. 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 the quarter were $0.55, a 31.0% increase over the prior year quarter. 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 . adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. improvements across geographies, client sizes, and categories this quarter. Throughout the economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. we have remained focused on developing new growth platforms This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. and programs to enable us to achieve our full growth potential, all the while continuing to manage our costs vigilantly. We believe we are well positioned to benefit from future improvements in the advertising industry and the economy." Mulloy continued, "We are very encouraged by our performance thus far this fiscal year. The final week of March came in stronger than we had expected given the lateness of the Easter promotional period. We believe this means that April, and our third quarter, are likely to see less of a positive benefit from the timing of the Easter holiday period than we had previously anticipated. Because of this, as well as the current uncertain economic environment, we remain prudently cautious about the future. Our performance does, however, provide us with confidence in the achievement of the upper-end of our original full-year fiscal 2003 guidance of 7% to 9% E.P.S. growth." Total advertising pieces for the quarter grew by 5.4% over the prior year period, and pieces per package grew 4.8%. Revenue per piece was down 1.5% due to year-over-year product mix differences, including increased volumes in lighter-weight products and decreases in heavier coupon books. Total shared mail packages grew 0.6%. SG&A was essentially flat to last year, at $56.1 million. Included in SG&A this year was an investment of $1.4 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc designing programs to achieve the Company's significant long range growth potential. The Company's balance sheet showed continued strength. Debt finished the quarter at $153.8 million, down $18.5 million from the second quarter of the prior year. The Company will hold an analyst conference call to discuss its second quarter earnings today at 5:15-6:00 ET. The call in number is 800/289-0730, and the replay number is 888/203-1112 (access code #124360). The replay will be available until midnight May 9, 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 Web site at www.advo.com. This report contains certain 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. 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. In addition, 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 102 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 125 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)
Three and Six Months Ended March 29, 2003
(In thousands, except per share data)
Three Months Ended Six Months Ended
-------------------- --------------------
March 29, March 30, March 29, March 30,
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues $287,065 $274,433 $578,243 $561,369
Cost of sales 212,268 201,855 426,622 409,321
Selling, general &
administrative 56,060 55,363 112,911 111,843
--------- --------- --------- ---------
Operating Income 18,737 17,215 38,710 40,205
Interest expense 1,673 3,349 4,571 6,864
Other (income)/expense, net (282) 493 (547) 787
--------- --------- --------- ---------
Income before income taxes 17,346 13,373 34,686 32,554
Provision for income taxes 6,418 4,948 12,834 12,045
--------- --------- --------- ---------
Net Income $10,928 $8,425 $21,852 $20,509
========= ========= ========= =========
Earnings per common share $0.55 $0.42 $1.10 $1.03
========= ========= ========= =========
Diluted earnings per common
share $0.55 $0.42 $1.09 $1.01
========= ========= ========= =========
Weighted average common
shares 19,816 19,950 19,802 19,939
Weighted average diluted
shares 19,990 20,276 19,977 20,281
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion