ADVO Third Quarter Results Show Continued Strength.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 17, 2003 ADVO, Inc. (NYSE NYSE See: New York Stock Exchange : AD) today reported its third consecutive quarter of improved results for fiscal 2003. 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 third fiscal quarter ended June June: see month. 28, 2003 were $0.68, an increase of 36.0% over the prior year quarter. Revenues reached $289.7 million, increasing $8.7 million or 3.1%. The third quarter of the prior fiscal year included a charge of $0.13 in E.P.S. to strengthen the Company's sales and marketing organization. Excluding this charge, diluted E.P.S. increased 7.9% over the prior year. Growth in total advertising piece volumes drove the revenue and profit results, with total shared advertising pieces up 4.1% over the prior year period. Pieces per package grew 4.0%, representing the second consecutive quarter of year-over-year growth in this statistic statistic, n a value or number that describes a series of quantitative observations or measures; a value calculated from a sample. statistic a numerical value calculated from a number of observations in order to summarize them. . Pieces per package have now grown in each of the last 7 months. Revenue per piece was down 1.4%, and packages were up 0.1%. 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 . 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 increases in demand, as shown by the growth in total advertising piece volumes. These results were realized despite the unexpectedly strong finish to the month of March discussed in our second quarter results." Mr. Mulloy continued, "Our Associates have been working hard to position our Company to gain maximum benefit from improvements in the economy, and we are beginning to see tangible results. The benefits of our investments in network expansion and operating efficiencies, coupled with a strong focus on revenue productivity, are driving top and bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. gains. We remain cautious about the timing of more robust economic growth, but are encouraged by the positive momentum demonstrated in our business and by the results our Associates are achieving in a difficult, and highly competitive environment. Given this, we remain confident in our previously issued expectations for fiscal year 2003. Additionally, we are cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op in our early outlook for next year, and our expectations for full-year fiscal 2004 E.P.S. of $2.62-2.75 are in the range of current analysts' estimates." Third quarter SG&A of $54.3 million was below prior year by $0.6 million. The Company continues to vigilantly manage and re-deploy its costs into areas of highest opportunity, including investments in sales and marketing which seek to accelerate the Company's revenue growth. Included in this quarter's SG&A was an on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" investment of $3.3 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc designing new sales and marketing programs. The prior year quarter's SG&A included a one-time charge of $4.2 million to make structural changes to strengthen the Company's sales and marketing organization. The Company's tax rate for the quarter was 33.4%, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. by 3.6 percentage points versus prior year, due to tax credits which are expected to also lower the fourth quarter tax rate to approximately the same level. The Company's balance sheet also showed continued strength, with debt finishing the quarter at $145.5 million, down $19.5 million from the third quarter of the prior year.
Diluted Earnings per Share: Reconciliation of
GAAP to Non-GAAP Measures Three Months Ended
------------------------------------------------ ---------------------
June June
28, 29,
2003 2002
---------- ----------
Diluted Earnings per share - As Reported $0.68 $0.50
One-time Charge -- 0.13
---------- ----------
Diluted Earnings per share - Pro Forma $0.68 $0.63
========== ==========
The Company will hold a conference call to discuss its third quarter earnings today at 5:15-6:00 p.m. ET. The call in number is 1-800-967-7134, and the replay number is 888-203-1112 (access code #775451). The replay will be available until midnight August 8, 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 127 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 Nine Months Ended June 28, 2003
(In thousands, except per share data)
Three Months Ended Nine Months Ended
------------------- -------------------
June 28, June 29, June 28, June 29,
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues $289,686 $280,939 $867,929 $842,308
Cost of sales 213,810 206,809 640,432 616,130
Selling, general &
administrative 54,251 54,823 167,162 166,665
--------- --------- --------- ---------
Operating Income 21,625 19,307 60,335 59,513
Interest expense 1,499 3,170 6,070 10,035
Other (income) / expense, net (317) 36 (864) 823
--------- --------- --------- ---------
Income before income taxes 20,443 16,101 55,129 48,655
Provision for income taxes 6,837 5,957 19,671 18,002
--------- --------- --------- ---------
Net Income $13,606 $10,144 $35,458 $30,653
========= ========= ========= =========
Basic earnings per share $0.69 $0.51 $1.79 $1.54
========= ========= ========= =========
Diluted earnings per share $0.68 $0.50 $1.77 $1.51
========= ========= ========= =========
Weighted average basic shares: 19,849 20,010 19,818 19,963
Weighted average diluted
shares: 20,126 20,353 20,027 20,305
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