Arbitron Inc. Updates Financial Guidance for 2005; Arbitron and VNU Agree to Deploy Pilot Panel for 'Project Apollo' National Marketing Research Service.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Arbitron Inc. (NYSE NYSE See: New York Stock Exchange : ARB) today announced that it has reached an agreement with VNU VNU Volontaires des Nations Unies (French) VNU Verenigde Nederlandse Uitgeversbedrijven (Dutch) VNU Virtual Network User to deploy, by year-end 2005, a pilot panel of more than 6,000 U.S. households as a demonstration of the 'Project Apollo' national marketing research service. Taking into account this agreement with VNU, Arbitron expects year-end 2005 Earnings Before Interest & Taxes (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) to be between $97.0 million and $98.9 million compared to EBIT of $98.4 million for year-end 2004. Net Income is expected to be between $58.7 million and $60.0 million compared to $60.6 million for year-end 2004. Earnings 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. ) for the year ending December 31, 2005 is expected to be between $1.87 and $1.91. As previously stated on January 25 and April 21, 2005, Arbitron expects year-end 2005 revenue to increase between 5 percent and 7 percent over year-end 2004 revenue. For the second quarter 2005, Arbitron now expects Earnings Per Share (diluted) to be between $0.28 and $0.30 versus $0.27 in the second quarter of 2004. As previously stated on April 21, Arbitron expects revenue to increase between 5.5 percent and 7.5 percent compared to the second quarter of last year. Investor conference call: schedule and access Arbitron will host a conference call at 9:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT on Tuesday, May 3, 2005 to discuss the agreement with VNU, the 'Project Apollo' pilot 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 at the following sites: www.arbitron.com, www.ccbn.com and www.streetevents.com There will be a replay available from 12 p.m. on May 3, 2005, through 11:59 p.m. on May 10, 2005. Please call: 877-519-4471 (Domestic); 973-341-3080 (International); ID Code for Replay: 6024081 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 and Europe. 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 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. , a new technology for media and marketing research. Arbitron's marketing and business units are supported by its 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 1,700 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 Media Measurement & Information, Arbitron also provides media and marketing research services to the broadcast television, magazine, newspaper and online industries. 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; --effectively manage the impact of consolidation in the radio and advertising agency industries; --keep up with rapidly changing technological needs of our customer base, including creating new proprietary software systems and new customer products and services that meet these needs in a timely manner; --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.
Arbitron Inc.
EBIT Guidance Reconciliation
Year Ending December 31, 2005
(In millions)
Year Ending
December 31, 2005
Guidance Range
Low High
Earnings before interest and income taxes $97.0 $98.9
Net interest expense 1.4 1.4
Income tax expense 36.9 37.5
Net income (Guidance) $58.7 $60.0
Note: EBIT guidance was given because the management of Arbitron believes it is useful to investors to evaluate the Company's projected results because it excludes 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. EBIT should not be considered as a substitute either for net income, as an indicator of Arbitron's operating performance, or for cash flow, as a measure of Arbitron's liquidity. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion