CUC INTERNATIONAL INC. REPORTS RECORD FIRST QUARTER RESULTS.STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , Conn.--(BUSINESS WIRE)--May 31, 1995--CUC International Inc. (NYSE NYSE See: New York Stock Exchange :CU) today announced its financial results for the first quarter ended April 30, 1995. The Company achieved record quarterly revenues of $292.5 million versus $244.3 million for the prior year's first quarter, an increase of 20%. Earnings were $.29 per share compared to $.23 per share for the prior year's first quarter, an increase of 26%. The weighted average number of shares outstanding was 119.9 million for the quarter ended April 30, 1995. Walter Wal·ter , Bruno 1876-1962. German conductor noted for his interpretations of Mozart and Mahler. Noun 1. Walter - German conductor (1876-1962) Bruno Walter A. Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes , 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 CUC International CUC (Comp-U-Card) International Inc., a huge membership-based consumer services conglomerate with travel, shopping, auto, dining, home improvement and financial services offered to more than 60 million customers worldwide based out of Stamford, Connecticut and headed by Kirk , said, "The first quarter of fiscal year 1996 is off to a strong start. Our membership base now surpasses 36.8 million. During the quarter, we added 3 million net new members, of which approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1.7 million members come from the acquisitions of Welcome Wagon Noun 1. welcome wagon - a wheeled vehicle carrying information and gifts from local merchants for new residents in an area wheeled vehicle - a vehicle that moves on wheels and usually has a container for transporting things or people; "the oldest known wheeled International, Inc., CUC CUC Cuban Convertible Peso (ISO currency code) CUC Columbia Union College (Takoma Park, MD, USA) CUC Canadian Unitarian Council CUC Canadian Ultimate Championships 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). , and Credit Card Sentinel Limited, all completed this
quarter."The strong membership trends are reflected in our revenue increase of 20%. The continued strength of our renewal rates contributed to our increasing operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: which were 19% for the quarter, up from 17.8% for the first quarter of last year. CUC International is a leading membership services company, currently providing more than 36 million consumers with access to a variety of services including home shopping Home Shopping commonly refers to the electronic retailing / home shopping channels industry, which includes such billion dollar companies as HSN, QVC, eBay, ShopNBC, Buy.com, and Amazon.com. , travel, insurance, auto, dining, home improvement, checking account enhancements, and discount coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer programs. CUC International is a 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 Stock Exchange-listed company whose divisions and subsidiaries include Benefit Consultants, Inc., Comp-U-Card, CUC Europe Limited, Entertainment Publications, Inc., Essex Corporation, FISI-Madison Financial Corporation, Interval International Interval International is an affiliated exchange company that arranges vacation exchanges for timeshare owners. Their exchange network includes more than 2,200 resorts and nearly 2 million member families worldwide. Similar to RCI, Interval International, I.I. , Inc., National Card Control, Inc., The NetMarket Company and Welcome Wagon International, Inc. -0-
CUC INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
April 30, January 31
1995 1995
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $133,514 $180,648
Receivables 212,072 188,185
Membership solicitations in process 50,295 45,636
Prepaid membership materials 20,568 26,503
Prepaid expenses, defer taxes & other 74,471 62,929
Total Current Assets 490,920 503,901
Contract renewal rights and
intangible assets, net 261,667 195,688
Properties, net 41,555 35,089
Deferred income taxes 13,464 16,778
Other 19,743 16,696
$827,349 $768,152
Liabilities and Shareholders' Equity Current Liabilities Accounts payable and accrued expenses & federal and state income taxes payable $100,401 $109,489
Total Current Liabilities 100,401 109,489
Deferred membership income, net 204,625 197,010
Zero coupon convertible notes
(net of unamortized original
issue discount of $2,033 and $2,507) 15,456 15,046
Compensatory stock option plan and other 5,384 3,285
Shareholders' Equity 501,483 443,322
$827,349 $768,152
CUC INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollar amounts in thousands except per share amounts)
Three Months Ended
April 30,
1995 1994
REVENUES
Membership and service fees $291,188 $242,851
Other 1,325 1,411
Total Revenues 292,513 244,262
COSTS AND EXPENSES
Operating 78,747 67,024
Marketing 115,497 97,972
General and administrative 42,840 35,702
Interest and amortization of restricted
stock compensation 311
Total Expenses 237,084 201,009
INCOME BEFORE INCOME TAXES 55,429 43,253
Provision for income taxes 21,218 16,652
NET INCOME $34,211 $26,601 Net Income Per Common Share $0.29 $0.23 Weighted Average Number of Common and Dilutive Common Equivalent Shares Outstanding 119,869 117,208
CUC INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL CASH FLOW DATA (UNAUDITED)
(In thousands)
Three Months Ended
April 30,
1995 1994
Net income $34,211 $26,601
Amort of membership acquisition costs 95,003 84,912
Deferred membership income (13,574) (8,141)
Membership acquisition costs (81,341) (78,276)
Amort of contract rights and excess cost 4,314 3,484
Amort of original issue discount
on convertible notes 426 402
Amortization of restricted stock 144
Depreciation 2,770 1,943
Deferred income taxes 3,314 4,820
$45,123 $35,889
CONTACT: CUC International Inc. Sandra Morgan Sandra Morgan (born June 6 1942 in Tamworth, New South Wales), known after marriage as Sandra Beavis was an Australian freestyle swimmer of the 1950s, who won a gold medal in the 4x100m freestyle relay at the 1956 Melbourne Olympics. 203/965-5114 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion