ADVO Revises Fiscal 2005 Expectations.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. -- ADVO, Inc. (NYSE NYSE See: New York Stock Exchange : AD) today stated that 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 full fiscal year ended September 24, 2005 is now expected to be in the range of $1.25-1.29 on an "as reported" GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, and $1.32-1.36 excluding 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. charge of $0.07 incurred in its third fiscal quarter. Previous E.P.S. guidance was in the range of $1.46-1.48 excluding the realignment charge. Revenue for the full fiscal year 2005 is expected to be up approximately 11% over the prior year period. This is within the range of previous revenue guidance. For the fourth fiscal quarter ended September 24, 2005, the Company expects revenue growth of approximately 7%, and diluted E.P.S. of approximately $0.24-0.28. The Company's revised expectations are due to lower-than-expected profits in its fourth fiscal quarter resulting from product mix shifts towards lower margin products and lighter weight preprint pre·print n. Something printed and often distributed in partial or preliminary form in advance of official publication: a preprint of a scientific article. tr.v. circulars, increased bad debt expense, and to a lesser extent losses related to hurricanes Katrina and Rita. The Company noted that it expects its full-year Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, results to finish in line with previous expectations. Excluding the expected operating investment of $25-30 million in Southern California, the Company's 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. for fiscal 2005 is expected to be above prior year by approximately $18 million, driven by volume growth in its core advertising programs. The Company also said that it has modified its guidance policy and will no longer be providing forward-looking revenue and earnings guidance. The Company will discuss its final results for the fourth quarter during its regularly scheduled analyst conference call on October 25, 2005 at 5:15-6:00 p.m. ET. The Company's final fourth quarter earnings release will be disseminated disseminated /dis·sem·i·nat·ed/ (-sem´i-nat?ed) scattered; distributed over a considerable area. dis·sem·i·nat·ed adj. Spread over a large area of a body, a tissue, or an organ. at approximately 4:30 p.m. ET the same day. 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 period to period, depending on its customers' promotional needs, inventories, and other factors. In any particular period 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 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; fluctuations in interest rates; and other general economic factors. ADVO is the nation's leading direct mail media company, with annual revenues of more than $1.2 billion. Serving 17,000 leading national, regional and local retailers, the company reaches 113 million mailboxes, or 90 percent of the nation's households, with its ShopWise(R) shared mail advertising. At the same time, the company's industry-leading targeting technology, coupled with its unparalleled logistics capabilities, enable retailers seeking superior ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). to target, version and deliver their print advertising directly to consumers most likely to respond. Demonstrating ADVO's effectiveness as a print medium, the company's "Have You Seen Me? (R)" missing child card, distributed with each ShopWise(R) package, is the most recognized mail in America. This signature public service program has been responsible for safely recovering 137 children. The program was created in partnership with the National Center for Missing & Exploited Children and the U.S. Postal Service The U.S. Postal Service (USPS) processes and delivers mail to individuals and businesses within the United States. The service seeks to improve its performance through the development of efficient mail-handling systems and operates its own planning and engineering programs. in 1985. ADVO employs 3,700 people at its 23 mail processing facilities, regional sales offices and headquarters in Windsor, CT. The company can be visited online at www.advo.com. |
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