Arbitron Inc. Reports 2004 First Quarter Financial Results; Revenue up 7.3 Percent to $76.6 Million; EBIT Up 6.9 Percent to $31.9 Million.Business Editors NEW YORK--(BUSINESS WIRE)--April 20, 2004 Net income per share (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. ) is $0.57, an increase of 7.5 percent Arbitron Arbitron (NYSE: ARB) is a radio audience research company in the United States which collects listener data on radio audiences similar to that collected by Nielsen Media Research on television audiences. Inc. (NYSE NYSE See: New York Stock Exchange :ARB) today announced results for the quarter ended March 31, 2004. For the first quarter 2004, the Company reported revenue of $76.6 million, an increase of 7.3 percent over revenue of $71.4 million during the first quarter of 2003. Costs and expenses for the first quarter increased by 7.7 percent, from $40.2 million in 2003 to $43.4 million in 2004. Earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) for the quarter were $31.9 million, compared with EBIT of $29.9 million during the first quarter last year. Interest expense for the quarter declined 32.8 percent, from $3.6 million in the first quarter 2003 to $2.4 million in the first quarter 2004, due to reductions in the Company's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Net income for the quarter was $18.1 million, compared with $16.1 million for the first quarter of 2003, an increase of 12.3 percent. Net income per share for the first quarter 2004 increased to $0.57 (diluted), compared with $0.53 (diluted) during the comparable period last year. In the first quarter 2004, Arbitron reduced its long-term debt by $20 million from $105 million to $85 million. Commenting on the results for the quarter, Stephen Morris
Stephen Morris (born Stephen Paul David Morris, 28 October 1957 in Macclesfield, Cheshire, England) is a musician in the Manchester based , president and chief executive officer of Arbitron, said: "In the first quarter 2004, we again met our goals for revenue and profitability. Our core radio ratings business remains strong, and we continued our investments in new services that have long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth potential for our company and for our customers. In particular, we acquired Marketing Resources Plus, a leading provider of media buying software systems to local and regional advertising agencies for broadcast and print media." "Throughout the quarter, we also made steady progress across all three facets of our Portable People Meter The Portable People Meter (sometimes mistakenly "Personal People Meter") or PPM, is a device developed by Arbitron to measure how many people are listening (or at least exposed) to individual radio stations and television stations, including cable TV. (PPM(SM)) development strategy-the market research application, our international ratings efforts and U.S. local market ratings services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. . "We are continuing our work toward the development of a national marketing research panel based on the PPM. Our goal is a service that would enhance the accountability of ad-supported media and enable marketers to gain a better understanding of consumer media behavior. "Arbitron is also making steady progress with the PPM in international markets. Expanded trials of the PPM are now under way in France, Portugal Portugal (pôr`chəgəl), officially Portuguese Republic, republic (2005 est. pop. 10,566,000), 35,553 sq mi (92,082 sq km), SW Europe, on the western side of the Iberian Peninsula and including the Madeira Islands and the Azores in the and Norway Norway, Nor. Norge, officially Kingdom of Norway, constitutional monarchy (2005 est. pop. 4,593,000), 125,181 sq mi (324,219 sq km), N Europe, occupying the western part of the Scandinavian peninsula. , and we are laying the groundwork for more trials in the United Kingdom later this year. "And, we continue to work closely with leading radio and agency executives who asked us to demonstrate our upgraded PPM methodology in a second U.S. market that has a significant Hispanic Hispanic Multiculture A person of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race Social medicine Any of 17 major Latino subcultures, concentrated in California, Texas, Chicago, Miam, NY, and elsewhere and African-American population. We remain focused on achieving our goals for PPM through our proposed Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; demonstration and are working to garner additional support." Arbitron will host a conference call at 10:00AM ET on April 20 to discuss its first-quarter results and other relevant matters. To listen to the call, dial the following telephone number: (877) 780-2271. The call will also be available live on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at the following sites: www.arbitron.com, www.ccbn.com and www.streetevents.com. About Arbitron Arbitron Inc. (NYSE:ARB) is an international media and marketing research firm serving radio broadcasters, cable companies, advertisers, advertising agencies and outdoor advertising companies 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. , Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . Arbitron's core businesses are measuring
network and local market radio audiences across the United States;
surveying the retail, media and product patterns of local market
consumers; and providing application software used for analyzing media
audience and marketing information data. The Company is developing the
Portable People Meter, a new technology for radio, television and cable
ratings.
Arbitron's marketing and business units are supported by a world-renowned research and technology organization located in Columbia, Maryland Columbia is a census-designated place and planned community in Howard County, Maryland, United States. It is a suburb of Baltimore, and, to a lesser degree, Washington, DC. It began with the idea that a city could enhance its residents' quality of life. . Arbitron has approximately 900 full-time employees; its executive offices are located in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . Through its Scarborough Research joint venture with VNU VNU Volontaires des Nations Unies (French) VNU Verenigde Nederlandse Uitgeversbedrijven (Dutch) VNU Virtual Network User , Inc., Arbitron also provides media and marketing research services to the broadcast television, magazine, newspaper, outdoor and online industries. PPM(SM) is a service mark of Arbitron Inc. This press release contains 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. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The statements regarding Arbitron in this document that are not historical in nature, particularly those that utilize terminology such as "may," "will," "should," "likely," "expects," "anticipates," "estimates," "believes" or "plans," or comparable terminology, are forward-looking statements based on current expectations about future events, which Arbitron has derived from information currently available to it. These forward-looking statements involve known and unknown risks and uncertainties that may cause our results to be materially different from results implied in such forward-looking statements. These risks and uncertainties include whether we will be able to: -- renew all or part of contracts with large customers as they expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. ; -- successfully execute our business strategies, including implementation of our Portable People Meter services, as well as expansion of international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; -- effectively manage the impact of further consolidation in the radio industry; -- keep up with rapidly changing technological needs of our customer base, including creating new products and services that meet these needs; -- successfully manage the impact on our business of any economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. generally and in the advertising market in particular; and -- successfully manage the impact on costs of data collection due to privacy concerns and/or government regulations. Additional important factors known to Arbitron that could cause forward-looking statements to turn out to be incorrect are identified and discussed from time to time in Arbitron's filings with the Securities and Exchange Commission, including in particular the risk factors discussed under the caption "ITEM 1. BUSINESS - Business Risks" in our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . The forward-looking statements contained in this document speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and Arbitron undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.
(Tables to Follow)
Arbitron Inc.
Consolidated Statements of Income
Three Months Ended March 31, 2004 and 2003
(In thousands, except per share data)
(Unaudited)
Three Months
Ended
March 31, $ %
2004 2003 Change Change
Revenue $76,585 $71,354 $5,231 7.3%
Costs and expenses
Cost of revenue 21,697 19,989 1,708 8.5%
Selling, general and administrative 14,791 13,975 816 5.8%
Research and development 6,863 6,281 582 9.3%
Total costs and expenses 43,351 40,245 3,106 7.7%
Operating income 33,234 31,109 2,125 6.8%
Proportionate share of net loss of
affiliate (1,328) (1,259) (69) (5.5%)
Earnings before interest and income
taxes 31,906 29,850 2,056 6.9%
Interest income 202 188 14 7.4%
Interest expense 2,429 3,615 (1,186) (32.8%)
Earnings before income taxes 29,679 26,423 3,256 12.3%
Income tax expense 11,575 10,305 1,270 12.3%
Net income $18,104 $16,118 $1,986 12.3%
Net income per weighted average
common share
Basic $0.59 $0.54 $0.05 9.3%
Diluted $0.57 $0.53 $0.04 7.5%
Weighted average shares used in
calculations
Basic 30,794 29,639 1,155 3.9%
Diluted 31,503 30,176 1,327 4.4%
Other data
EBITDA $33,224 $31,077 $2,147 6.9%
Arbitron Inc.
EBIT and EBITDA Reconciliation
Three Months Ended March 31, 2004 and 2003
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2004 2003
Net income $18,104 $16,118
Income tax expense 11,575 10,305
Net interest expense 2,227 3,427
EBIT $31,906 $29,850
Depreciation and amortization 1,318 1,227
EBITDA $33,224 $31,077
Note: Earnings before interest and income taxes (EBIT) and earnings
before interest, income taxes, depreciation and amortization (EBITDA)
are widely used measures of operating performance. They are presented
as supplemental information that management of Arbitron believes is
useful to investors to evaluate the Company's results because they
exclude certain items that are not directly related to the Company's
core operating performance. EBIT is calculated by adding back net
interest expense and income tax expense to net income. EBITDA is
calculated by adding back net interest expense, income taxes,
depreciation and amortization to net income. EBIT and EBITDA should
not be considered as substitutes either for net income, as indicators
of Arbitron's operating performance, or for cash flow, as measures of
Arbitron's liquidity. In addition, because EBITDA may not be
calculated identically by all companies, the presentation here may not
be comparable to other similarly titled measures of other companies.
Arbitron Inc.
Condensed Consolidated Balance Sheets
March 31, 2004 and December 31, 2003
(In thousands)
March 31, Dec. 31,
2004 2003
(Unaudited) (Audited)
Assets:
Cash and cash equivalents $68,808 $68,433
Trade receivables 18,091 21,355
Deferred taxes 25,775 30,829
Goodwill, net 38,027 32,937
Other assets 31,983 30,640
Total assets $182,684 $184,194
Liabilities and Stockholders' Equity (Deficit):
Deferred revenue $50,999 $58,398
Long-term debt 85,000 105,000
Other liabilities 40,472 38,869
Stockholders' equity (deficit) (1) 6,213 (18,073)
Total liabilities and stockholders' equity
(deficit) $182,684 $184,194
(1) Prior to the spin-off from Ceridian Corporation in March 2001,
Arbitron distributed its earnings to Ceridian. Those distributions,
together with a $250 million distribution made to Ceridian on the date
of the spin-off, gave rise to the stockholders' deficit. Proceeds from
the issuance of long-term debt were used by Arbitron to make the $250
million distribution.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion