ADVO Revenue Grows 13% For Its Third Fiscal Quarter; Revenue Growth Drives Record E.P.S.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)--July 18, 2000 ADVO Inc. (NYSE NYSE See: New York Stock Exchange : AD) reported strong revenue growth and record profits for its third fiscal quarter, ended June June: see month. 24, 2000. Revenues were at record levels for the quarter, at $295.8 million, an increase of $33.8 million, or 12.9% versus the prior year period. 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 were $0.71 versus $0.58 for the prior year period, an increase of 22.4%. 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 $28.2 million exceeded the prior year period by $4.4 million, or 18.4%. As anticipated, operating income was reduced by a charge related to the realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of the Company's sales and marketing areas and their supporting functions. This charge amounted to $4.2 million, or $0.13 per share. Excluding the charge, operating income would have been $32.4 million, up 36.3%, and 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. would have been $0.84, up a significant 44.8% versus the prior year period. Core shared mail revenue grew substantially versus the prior year period, as third quarter shared mail revenues were up 10.6%, and all three components of shared mail revenue showed strong growth. Third quarter packages distributed were 783.4 million, up 2.0% versus the prior year period. Revenue per thousand pieces was $39.25, up 3.8%, and pieces per package were 8.75, up 4.6%. The Company continued to post record margin results as well. Third quarter gross margin as a percentage of revenue of 29.8% improved 1.1 percentage points over the prior year period. SG&A was $59.9 million, up $8.5 million including the $4.2 million charge. Excluding the charge, SG&A was up only $4.3 million, or 8.3%. Third quarter operating income of $28.2 million increased 0.4 percentage points as a percentage of revenue versus the prior year period, to an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal third quarter high of 9.5%. Excluding the charge, however, operating income as a percentage of revenue was 11.0%, up a full 1.9 percentage points. Fiscal 2000 year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. revenue was also a record at $832.4 million, an increase of $48.2 million, or 6.1%, versus the prior year nine-month period. Year-to-date operating income was $69.4 million, or 8.3% of revenue, versus the prior year nine-month operating income of $57.3 million, or 7.3% of revenue. Reported year-to-date diluted E.P.S. of $1.69 increased $0.39, or 30.0%, over the prior year period. However, excluding the $4.2 million third quarter charge, as well as the $2.2 million charge taken in the first quarter related to the expensing of a consulting agreement between ADVO and its former Chairman, year-to-date diluted E.P.S. would have been $1.89, an increase of $0.59 or 45.4% 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 . tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. is our strong revenue growth this quarter, as our focus on growth is delivering significant improvements in our top-line results. We are also extremely pleased with our continued record margin results, and are on-track to exceed our 8% operating income margin goal this year, a year ahead of schedule." Mr. Mulloy continued, "Looking forward, we are very confident that we will meet current E.P.S. expectations for our fourth quarter. We expect our momentum to continue into fiscal 2001, and as a result, we are also confident with current E.P.S. expectations for next year." 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 core shared mail program is distributed nationally to approximately 60 million households weekly. Approximately 30 million additional 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 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. 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 based upon current information and expectations and are subject to risks and uncertainties in the Company's operations and business environment. Such risks and uncertainties include, but are not limited to, changes in customer demand and pricing, the possibility of consolidation throughout the retail sector, postal and paper prices, the efficiencies achieved with technology upgrades, and other general economic factors.
ADVO, Inc.
Results of Operations (Unaudited)
Three and Nine Months Ended June 24, 2000
(In thousands, except per share data)
Three Months Ended Nine Months Ended
June 24, June 26, June 24, June 26,
2000 1999 2000 1999
Revenues $295,816 $262,058 $832,392 $784,194
Cost of sales 207,800 186,931 593,094 567,365
Selling, general &
administrative 59,861 51,352 169,939 159,488
-------- -------- -------- --------
Operating Income 28,155 23,775 69,359 57,341
Interest expense 4,719 3,567 13,515 10,616
Other expense/
Interest income, net 49 25 196 40
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Income before income
taxes 23,387 20,183 55,648 46,685
Provision for income
taxes 8,653 7,770 20,590 17,974
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Net Income $ 14,734 $ 12,413 $ 35,058 $ 28,711
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-------- -------- -------- --------
Earnings per common
share $ 0.73 $ 0.58 $ 1.72 $ 1.32
-------- -------- -------- --------
-------- -------- -------- --------
Diluted earnings per
common share $ 0.71 $ 0.58 $ 1.69 $ 1.30
-------- -------- -------- --------
-------- -------- -------- --------
Weighted average
common shares: 20,178 21,305 20,367 21,783
Weighted average
diluted shares: 20,694 21,493 20,714 22,057
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