CUC INTERNATIONAL INC. REPORTS RECORD YEAR-END AND FOURTH 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)--March 19, 1996--CUC International Inc. (NYSE NYSE See: New York Stock Exchange : CU) today announced its financial results for the fourth quarter and fiscal year-ended Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. January January: see month. 31, 1996. 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 Inc. reported record year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. revenues of $1,415 million versus $1,182.9 million for the prior year, representing an increase of 20%. Earnings increased 27% to $0.84 per share which included $5.2 million of merger costs ($0.02 per common share 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. effect), as compared to $0.66 per share for the same period a year ago. The weighted average number of shares outstanding was 194.7 million for the year-ended January 31, 1996 versus 189.2 million for the year-ago period. For the fourth quarter ended January 31, 1996, CUC International reported revenues of $377.9 million as compared to $320.2 million for the same quarter a year ago. Earnings per share for the fourth quarter were $.22 per share which included $5.2 million of merger costs ($0.02 per common share after-tax effect) based on 196.4 million weighted average shares outstanding versus $.18 per share for the fourth quarter last year based on 190.7 million weighted average shares outstanding. All financial information has been restated to reflect the fiscal 1996 acquisitions which were accounted in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the "pooling-of-interests" method of accounting. 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 of CUC International, stated, "During fiscal 1996, we continued our robust membership growth and now provide approximately 46.5 million consumers with one or more of CUC's value-oriented services such as 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. , dining and travel. This expansion was fueled in part by solid growth in our traditional distribution channels, new marketing approaches such as Transfer-Plus and enhanced services Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; which broaden our consumer appeal such as electronic dining. Our continued success in attracting new members demonstrates our ability to understand consumers' needs and provide a breadth of services aimed at making their lives easier." CUC International also said that during fiscal 1996, the Company exceeded its international goals, ending the year with over 900,000 wholesale members as compared to 50,000 a year ago. CUC's rapid international growth is due mainly to the successful rollout of its wholesale program through major European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. banks and expansion into other regions of the world including South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . Mr. Forbes added, "Our interactive vision, upon which CUC International was founded more than 20 years ago, is no longer considered futuristic fu·tur·is·tic adj. 1. Of or relating to the future. 2. a. Of, characterized by, or expressing a vision of the future: futuristic decor. b. , but rather has become an integral way of thinking for businesses focused on 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. The validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. of our interactive vision is in the numbers and trends. Our internet/online memberships grew 100% this year to over 200,000 consumers, a trend that reflects a rapidly-growing and promising market for CUC's services. Moreover, our membership growth in the interactive world is commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the increased penetration of home PCs and the expansion of subscribers to the online services." He concluded, "Our goal has always been to be the leading provider of consumer services Consumer Services refers to the formulation, deformulation, technical consulting and testing of most consumer products, such as food, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair products, household cleaners, [paints, plastics, metals, waxes, coatings, minerals, in the electronic marketplace. We believe that our current offerings of diverse consumer services, coupled with our previously announced proposed acquisitions of Sierra On-Line and Davidson Da·vid·son , Jo(seph) 1883-1952. American sculptor best remembered for his vigorous portrait busts of Woodrow Wilson, Franklin D. Roosevelt, and Albert Einstein, among others. & Associates, establish CUC International as a leading content provider in the fast-growing adj. 1. tending to spread quickly; - used mostly of plants. Adj. 1. fast-growing - tending to spread quickly; "an aggressive tumor" strong-growing, aggressive interactive marketplace." CUC International Inc. is a leading membership-services company, currently providing approximately 46.5 million consumers with access to a variety of services including home shopping, travel, insurance, auto, dining, home improvement, lifestyle clubs, checking account enhancements and discount coupon programs. -0-
CUC INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
January 31, January 31,
1996 1995
Assets
Current Assets
Cash and cash equivalents $269,987 $209,054
Receivables 297,842 224,856
Membership solicitations in process 60,713 45,636
Prepaid membership materials 39,061 33,268
Prepaid expenses, defer taxes & other 100,104 71,892
Total Current Assets 767,707 584,706
Contract renewal rights and
intangible assets, net 276,047 212,016
Properties, net 61,441 43,357
Deferred income taxes and other 36,111 38,558
$1,141,306 $878,637
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable & accrued expenses &
federal & state income taxes payable $149,845 $160,269
Total Current Liabilities 149,845 160,269
Long-term obligations 4,088 8,008
Deferred membership income, net 240,117 209,885
Zero coupon convertible notes
(net of unamortized original
issue discount of $588 and $2,507) 14,410 15,046
Other 5,634 5,266
Shareholders' Equity 727,212 480,163
$1,141,306 $878,637
CUC INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (Dollar amounts in thousands except per share amounts) Three Months Ended January 31, 1996 1995
REVENUES
Membership, service fees & other $377,948 $320,201
Total Revenues 377,948 320,201
EXPENSES
Operating 101,287 88,422
Marketing 148,939 129,858
General and administrative 53,574 49,062
Merger costs (a) 5,247
Interest (income) expense, net 455 (786)
Total Expenses 309,502 266,556
INCOME BEFORE INCOME TAXES 68,446 53,645
Provision for income taxes 25,831 20,207
NET INCOME $42,615 $33,438 Net Income Per Common Share $0.22 $0.18 Weighted Average Number of Common and Dilutive Common Equivalent Shares Outstanding 196,391 190,714
(a) Merger costs are comprised primarily of transaction
costs and other professional fees related to the completion
of the Advance Ross acquisition. Approximately 50% of the
total amount is estimated to be tax deductible.
CUC INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (Dollar amounts in thousands except per share amounts) Year Ended January 31, 1996 1995
REVENUES
Membership, service fees & other $1,414,964 $1,182,896
Total Revenues 1,414,964 1,182,896
EXPENSES
Operating 379,919 320,773
Marketing 556,920 479,590
General and administrative 207,401 180,166
Merger costs (a) 5,247
Interest (income) expense, net (866) 582
Total Expenses 1,148,621 981,111
INCOME BEFORE INCOME TAXES 266,343 201,785
Provision for income taxes 102,969 77,219
NET INCOME $163,374 $124,566 Net Income Per Common Share $0.84 $0.66 Weighted Average Number of Common and Dilutive Common Equivalent Shares Outstanding 194,666 189,219
(a) Merger costs are comprised primarily of transaction
costs and other professional fees related to the completion
of the Advance Ross acquisition. Approximately 50% of the
total amount is estimated to be tax deductible.
CUC INTERNATIONAL INC. AND SUBSIDIARIES SUPPLEMENTAL CASH FLOW DATA (UNAUDITED) (In thousands) Year Ended January 31, 1996 1995
Net income $163,374 $124,566
Amort of membership acquisition costs 417,104 361,038
Deferred membership income 65,235 45,450
Membership acquisition costs (463,958) (388,366)
Amort of contract rights and excess cost 19,702 15,375
Amort of original issue discount
on convertible notes 1,646 1,662
Amortization of restricted stock 303
Depreciation 15,417 10,959
Deferred income taxes 16,276 6,356
$234,796 $177,343
CONTACT: CUC International Inc., Stamford 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 Chief Financial Officer (203) 326-8821 or Laura Plevyak Vice President, Investor Relations Investor relations The process by which the corporation communicates with its investors. (203) 965-5114 |
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