ADVO announces first quarter results.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)--Jan. 17, 1996--In conjunction with its simultaneous release Simultaneous Release is the name given to an experimental new method of making movies available to consumers. Traditionally, movies are released first in cinemas. A DVD release follows some months later. of its notice of its special dividend, ADVO Inc. (NYSE NYSE See: New York Stock Exchange :AD) reported results for its FY1996 first quarter ended Dec. 30, 1995. Earnings per share, excluding results from its discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: Marketing Force subsidiary, were 29 cents versus 37 cents, down 22% from the comparable period last year, on revenues of $256.5 million, which increased 3%. The additional loss from its discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. realized during the quarter, which includes operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. estimated to be incurred through the anticipated sale date, was $1.0 million or 4 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on a fully 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. basis. The revenue growth was driven by a 2% increase in Shared Mail packages to 799.4 million, while average revenue per piece increased 7% to $39.18. Offsetting these gains was a 4% decline in pieces per package to 7.77. Revenue growth in the first quarter declined significantly from prior quarters as clients continued to react to the significant price increases passed on to them due to postal and paper cost increases. December results were quite disappointing due to the general sluggish retail environment and the extremely disappointing Christmas season for most retailers. The increase in the company's cost of sales reflects the previously mentioned increase in paper and postage POSTAGE. The money charged by law for carrying letters, packets and documents by mail. By act of congress of March 3, 1851, Minot's Statute at Large, U. S. 587, it is enacted as follows: 2.-Sec. 1. . Selling, general and administrative expenses declined 6.7% for the quarter reflecting the ongoing cost control efforts implemented by the company in fiscal 1995. Despite these cost control efforts, 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. declined to $11.0 from $16.2 million a year ago. Both periods were aided by one-time gains. Midcoast Press, the company's printing operation., was sold during the quarter for a gain of $2.7 million versus the $2.2 million gain recognized last year for the sale of Infobase. Robert "Kam" Kamerschen, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ADVO said, "We are clearly disappointed with our first quarter's performance and particularly troublesome was the extremely disappointing month of December. We expect these trends to moderate through our second quarter and hence expect first half operating income results will be down from prior year. This difficult first half notwithstanding, we anticipate a much stronger second half assuming that we receive additional volume gains based on normalized paper and postage, our reengineering efforts begin to significantly further reduce our fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). and we put our strategic alternative initiative, which has diverted di·vert v. di·vert·ed, di·vert·ing, di·verts v.tr. 1. To turn aside from a course or direction: Traffic was diverted around the scene of the accident. 2. internal focus, behind us. We still believe that our full fiscal year's results before interest expense and future recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. charges will be in line with the lower end of the analysts' range. After interest expense, but prior to recapitalization charges, we expect to be near our results in fiscal 1995." ADVO is the nation's largest full-service direct mail marketing services company with annual revenues in excess of $1 billion. ADVO specializes in shared and solo direct mail services, and provides customized Microtargeting(TM) solutions for its clients' needs. The company's Mailbox A simulated mailbox in the computer that holds e-mail messages. Mailboxes are stored on disk as a file of messages, a database of messages or as an individual file for each message. The standard mailboxes are usually In, Out, Trash and Junk (Spam). Values(R) branded shared mail program is distributed nationally to over 61 million households weekly. ADVO also offers limited transportation services. It has 20 production facilities and 70 sales offices nationwide. ADVO's corporate headquarters are located at One Univac Lane, Windsor, CT 06095. -0-
ADVO Inc.
Results of Operations (Unaudited)
Quarter ended December 30, 1995
(in thousands, except per share data)
Quarter Ended
December 30, December 24, Percent
1995 1994(B) Increase
(Decr.)
Revenues $256,512 $248,088 3%
Cost of sales 199,959 182,411
Selling, general &
administrative 48,271 51,716
Gain on sale of business
lines (2,687) (2,243)
Operating Income 10,969 16,204 -32%
Interest income/Other
expense, net 409 578
Income before income
taxes 11,378 16,782
Provision for income taxes 4,360 6,546
Income from continuing
operations before cumulative
effect of accounting change
7,018 10,236 -31%
Cumulative effect of change
in accounting for post-
employment benefits,
net of tax - (1,545)
Income from continuing
operations and after
cumulative effect of
accounting change 7,018 8,691
(Loss) from discontinued operations, net of taxes - (15) Estimated loss on disposal of discontinued operations, net of tax (981) - Net Income $6,037 $8,676 -30% Earnings per share(A) Earnings from continuing operations and after cumulative effect of accounting change $0.29 $0.37 -22% Estimated loss on disposal of discontinued operations (0.04) - Net earnings per share(A) $0.25 $0.37 -32% Cash dividends declared per share $0.025 $0.025 Average common and common equivalent shares: Primary 23,856 23,213 Fully diluted 23,875 23,216 (A) Both primary and fully diluted (B) Prior year financial results have been restated to reflect the treatment of the Marketing Force segment as a discontinued operation. CONTACT: ADVO Inc., Windsor Donald McCombs, 860/285-6391 |
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