ADVO announces fiscal 1995 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)--Oct. 25, 1995--ADVO, Inc. (NYSE NYSE See: New York Stock Exchange :AD) reported results for its 1995 fiscal year ended Sept. 30, 1995. Net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the (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) increased $29.4 million, or $1.26 ($1.24 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. ) per share, a 22% increase over the prior year, on revenues of $1,011.9 million. The loss from its discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. was $3.5 million or $0.15 per share. The estimated loss for the transition period of discontinued operations was $0.04 per share. Revenues from continuing operations of $1,011.9 million were up $91.6 million, or 10% over fiscal 1994. This increase was driven by increased Shared Mail packages, up 3%, increased pieces per package, up 2%, and increased revenue per package, up 6%. 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 $48.5 million was 22% above prior year. Selling, general and administrative expense for continuing operations declined as a percent of revenue from 22% to 20% and were flat year on year in absolute dollars. This and the increase in direct contribution caused operating profit margin Operating profit margin The ratio of operating profit to net sales. to increase from 4.3% to 4.8%. For the fourth quarter, income from continuing operations was $7.7 million, or $0.33 per share, on revenues of $267.5 million. Operating income for the quarter was $12.1 million. The 16% fourth quarter revenue increase over the fourth quarter of fiscal 1994 was driven by a 9% increase in Shared Mail packages, to 868.0 million, and a 6% increase in revenue per package. Despite a 7% increase in unit volumes, pieces per package were down 2% to 7.58 due to continued client reactions caused by the 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. and paper cost increases passed through to them during the fiscal year. The discontinued Marketing Force subsidiary posted after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. losses for fiscal 1995 and the fourth quarter of $3.5 and $2.5 million, respectively. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. "Kam a. 1. Crooked; awry. " 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: "Despite the unprecedented combination of increases in postage and paper, which constitute 65% of our total costs, our core business posted year-on-year profit growth in excess of 20%. Our continuing cost control vigilance VIGILANCE. Proper attention in proper time. 2. The law requires a man who has a claim to enforce it in proper time, while the adverse party has it in his power to defend himself; and if by his neglect to do so, he cannot afterwards establish such claim, the has helped us weather these adverse economic factors, and has improved our competitive fitness. These existing fixed cost efforts as well as others recently initiated will significantly contribute to our future vitality vi·tal·i·ty n. 1. The capacity to live, grow, or develop. 2. Physical or intellectual vigor; energy. ." 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. 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 Microtargeting is the use by political parties of direct marketing datamining techniques that involve predictive market segmentation (aka cluster analysis). It is used by United States Republican and Democratic political parties and candidates to track individual voters and (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 60 million households weekly. ADVO also offers limited printing and transportation services. It has 22 production facilities and 80 sales offices nationwide. ADVO's corporate headquarters are located at One Univac Lane, Windsor, CT 06095. -0-
ADVO Inc.
Results of Operations (Unaudited)
Quarter and Year ended September 30, 1995
(in thousands, except per share data)
Quarter Ended
Sept. 30, Sept. 24, Percent
1995 1994 (a) Increase
(Decr.)
Revenues $267,468 $231,038 16%
Cost of sales 205,078 168,874
Selling, general &
administrative 50,317 50,729
Gain on sale of interest
in joint venture 0 0
Operating Income 12,073 11,435 6%
Interest income/Other
expense, net 401 361
Income before income
taxes 12,474 11,796
Provision for income taxes 4,729 4,894
Income from continuing operations
before cumulative effect of
accounting change 7,745 6,902 12%
Income (loss) from discontinued
operations, net of taxes (2,546) (324)
Estimated loss on disposal of discontinued
operations, net of tax (931) 0
Income before cumulative effect of
accounting change 4,268 6,578
Cumulative effect of change in
accounting for post-employment
benefits, net of tax 0 0
Net Income $4,268 $6,578 -35%
Earnings Per Share Primary Earnings from continuing operations and before cumulative effect of accounting change $0.33 $0.29 14% Cumulative effect of change in accounting for post-employment benefits, net of tax 0.00 0.00 Earnings from continuing operations and cumulative effect of accounting change $0.33 $0.29 14% Primary earnings per share $0.18 $0.28 -36% Fully diluted earnings per share $0.18 $0.28 -36% Cash dividends declared per share $0.025 $0.025 Average common and common equivalent shares: Primary 23,300 23,201 Fully diluted 23,716 23,234 (a) Prior year financial results have been restated to reflect the treatment of the Marketing Force subsidiary as a discontinued operation. -0-
Year Ended
Sept. 30, Sept. 24, Percent
1995 1994 (a) Increase
(Decr.)
Revenues $1,011,904 $920,325 10%
Cost of sales 764,198 679,258
Selling, general &
administrative 201,449 201,417
Gain on sale of interest
in joint venture (2,243) 0
Operating Income 48,500 39,650 22%
Interest income/Other
expense, net 2,045 670
Income before income
taxes 50,545 40,320
Provision for income taxes 19,596 15,693
Income from continuing operations
before cumulative effect of
accounting change 30,949 24,627 26%
Income (loss) from discontinued
operations, net of taxes (3,522) 544
Estimated loss on disposal of discontinued
operations, net of tax (931) 0
Income before cumulative effect of
accounting change 26,496 25,171
Cumulative effect of change in
accounting for post-employment
benefits, net of tax (1,545) 0
Net Income $24,951 $25,171 -1%
Earnings Per Share Primary Earnings from continuing operations and before cumulative effect of accounting change $1.33 $1.03 29% Cumulative effect of change in accounting for post-employment benefits, net of tax (0.07) 0.00 Earnings from continuing operations and cumulative effect of accounting change $1.26 $1.03 22% Primary earnings per share $1.07 $1.05 2% Fully diluted earnings per share $1.05 $1.05 0% Cash dividends declared per share $0.10 $0.095 Average common and common equivalent shares: Primary 23,286 23,886 Fully diluted 23,697 23,924 (a) Prior year financial results have been restated to reflect the treatment of the Marketing Force subsidiary as a discontinued operation. -0- CONTACT: ADVO Inc., Windsor Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. McCombs, 860/285-6391 |
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