CUC INTERNATIONAL INC. REPORTS RECORD THIRD QUARTER REVENUES AND EARNINGS.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. , CT--(BUSINESS WIRE)--November 29, 1995--CUC International Inc. (NYSE NYSE See: New York Stock Exchange :CU) today announced its financial results for the third quarter ended October October: see month. 31, 1995. Revenues for the third quarter increased 29% to $341.4 million from $263.7 million for the prior year's third quarter. Net income increased to $40.8 million from $30.2 million for the same period a year ago. On a per share basis, net income increased 29% to $.22 per share from $.17 per share a year ago. The weighted average number of shares outstanding was 188.7 million for the fiscal 1996 third quarter, versus 177.4 million for the same quarter last year. For the nine-month period, revenues increased 28% to $979.9 million from $762.9 million for the same period a year ago. Net income for the nine months was $115.4 million, or $.62 per share, versus $84.8 million, or $.48 per share, a year ago. 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 now serves nearly 40 million members, of which 1.96 million were added during this past quarter. The completion of the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Outdoor Group acquisition contributed approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one million new members to the third quarter's membership growth. During the quarter, the company also announced it had signed an agreement to purchase Advance Ross Ross , Sir Ronald 1857-1932. British physician. He won a 1902 Nobel Prize for proving that malaria is transmitted to humans by the bite of the mosquito. Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AROS). The acquisition is expected to close in January January: see month. , 1996. 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 chief executive officer, commented, "The strength of our services is reflected in our ability to maintain high renewal rates. As a result of our success with retaining members, our net income growth exceeded our revenue growth, and our operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: expanded to 18.9% from 18.2% for the same nine-month period a year ago." CUC International Inc. is a leading membership-services company, currently providing nearly 40 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, lifestyle clubs, 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. -0-
CUC INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
October 31, January 31
1995 1995
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $160,261 $180,648
Receivables 255,303 188,185
Membership solicitations in process 57,203 45,636
Prepaid membership materials 44,830 26,503
Prepaid expenses, defer taxes & other 88,859 62,929
Total Current Assets 606,456 503,901
Contract renewal rights and
intangible assets, net 262,973 195,688
Properties, net 55,027 35,089
Deferred income taxes 5,106 16,778
Other 28,061 16,696
$957,623 $768,152
Liabilities and Shareholders' Equity Current Liabilities Accounts payable and accrued expenses & federal and state income taxes payable $102,942 $109,489
Total Current Liabilities 102,942 109,489
Deferred membership income, net 211,024 197,010
Zero coupon convertible notes
(net of unamortized original
issue discount of $1,022 and $2,507) 14,347 15,046
Compensatory stock option plan and other 3,833 3,285
Shareholders' Equity 625,477 443,322
$957,623 $768,152
CUC INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
(Dollar amounts in thousands except per share amounts)
Three Months Ended
October 31,
1995 1994
REVENUES
Membership, service fees & other $341,406 $263,735
Total Revenues 341,406 263,735
COSTS AND EXPENSES
Operating 90,784 70,694
Marketing 134,631 106,363
General and administrative 50,049 37,329
Interest (income) expense,
net & amortization
of restricted stock compensation (643) 211
Total Expenses 274,821 214,597
INCOME BEFORE INCOME TAXES 66,585 49,138
Provision for income taxes 25,831 18,893
NET INCOME $40,754 $30,245 Net Income Per Common Share $0.22 $0.17 Weighted Average Number of Common and Dilutive Common Equivalent Shares Outstanding 188,734 177,428
CUC INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
(Dollar amounts in thousands except per share amounts)
Nine Months Ended
October 31,
1995 1994
REVENUES
Membership, service fees & other $979,886 $762,940
Total Revenues 979,886 762,940
COSTS AND EXPENSES
Operating 263,404 206,868
Marketing 385,684 307,771
General and administrative 145,345 109,390
Interest (income) expense,
net & amortization
of restricted stock compensation (838) 1,123
Total Expenses 793,595 625,152
INCOME BEFORE INCOME TAXES 186,291 137,788
Provision for income taxes 70,884 52,979
NET INCOME $115,407 $84,809 Net Income Per Common Share $0.62 $0.48 Weighted Average Number of Common and Dilutive Common Equivalent Shares Outstanding 186,873 176,400
CUC INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL CASH FLOW DATA
(UNAUDITED)
(In thousands)
Nine Months Ended
October 31,
1995 1994
Net income $115,407 $84,809
Amort of membership acquisition costs 305,472 261,335
Deferred membership income 10,960 (7,004)
Membership acquisition costs (330,357) (262,626)
Amort of contract rights and excess cost 13,793 10,652
Amort of original issue discount
on convertible notes 1,236 1,094
Amortization of restricted stock 303
Depreciation 9,850 6,336
Deferred income taxes 13,986 11,402
$140,347 $106,301
CONTACT: CUC International Inc. Laura Plevyak, 203/965-5114 or Cosmo COSMO Consolidated Supercomputer Management Office (NASA) COSMO Coalition of Senior Membership Organizations COSMO Coalition of Self-Managed Operators COSMO Common Specifications for Mobile Corigliano 203/326-8821 |
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