Catalina Marketing Reports Financial Results for the Third Quarter of Fiscal 2006.ST. PETERSBURG Petersburg, city (1990 pop. 38,386), politically independent and in no county, SE Va., on the Appomattox River; inc. 1850. A port of entry and an important tobacco market, it has industries producing chemicals, pharmaceuticals, furniture, structural steel, lumber, , Fla. -- Catalina Catalina may refer to: In geography:
See: New York Stock Exchange :POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale ) today reported financial results for its third quarter and first nine months ended December December: see month. 31, 2005. For the three months ended December 31, 2005, consolidated revenues were $97.2 million, compared with revenues of $100.3 million in the same period of fiscal 2005. Consolidated net income for the third quarter was $14.2 million, or $0.29 per 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. share, compared with net income of $19.0 million, or $0.36 per diluted share, in the third quarter of fiscal 2005. Third quarter results in fiscal 2005 included $1.4 million in losses from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. due principally to losses from the disposal of non-core businesses. The company reported consolidated income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter ended December 31, 2005 of $14.2 million, or $0.29 per diluted share, compared with $20.4 million, or $0.39 per diluted share, for the quarter ended December 31, 2004. During the quarter ended December 31, 2004, the company received a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. ruling related to a state sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. assessment, and as a result, reversed into income a $4.4 million accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. liability, which had been recognized as expense in prior periods. The reversal of this liability resulted in a favorable impact, net of related income taxes, of approximately $0.05 per diluted share in the third quarter of fiscal 2005. Nine-Month Consolidated Results For the nine-month period ended December 31, 2005, consolidated revenues were $291.8 million, compared with revenues of $298.1 million in the comparable period of fiscal 2005. Consolidated net income for the first nine months of fiscal 2006 was $47.6 million, or $0.96 per diluted share, compared with net income of $50.2 million, or $0.96 per diluted share, in fiscal 2005. Results in the first nine months of fiscal 2005 included a loss from discontinued operations of $2.4 million related to the operation and divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of non-core businesses plus the positive impact on income from the reversal of $4.4 million of sales tax reserves. The company reported consolidated income from continuing operations for the nine months ended December 31, 2005 of $47.6 million, or $0.96 per diluted share, compared with $52.6 million, or $1.01 per diluted share, for the nine months ended December 31, 2004. "Third quarter revenues were affected by market conditions as Catalina Marketing Services experienced specific challenges due to reduced spending by certain manufacturer clients at the end of their calendar year," chief executive officer, Dick Buell Buell may refer to:
(2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. to experience improvement in the fourth quarter of this fiscal year." Buell continued, "As we begin preparing for fiscal year 2007, capital and resource investments will increase to strengthen the foundation for Catalina's important 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. business growth. The organization is focused on the additional investments which will affect our income statement and balance sheet as we roll out our recently announced full color and full graphics printing capabilities. While the overall expected return Expected Return The average of a probability distribution of possible returns, calculated by using the following formula: on this project is financially attractive, we believe that the timing of these strategic investments will precede the related anticipated revenue growth and will impact operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. next fiscal year. We remain both committed to and focused on our long-term revenue and profit growth objectives through the introduction of new products and services, entry into new channels as evidenced by the ongoing installation of Walgreens Walgreen Co. (NYSE: WAG), d/b/a Walgreens (without an apostrophe), is a pharmacy chain, mail service pharmacy, pharmacy benefit manager, and specialty pharmacy which has operations throughout the continental United States and Puerto Rico. and Kmart For the Australasian department store chain, see Kmart Australia. "K-Mart" is also a nickname for NBA player Kenyon Martin. Kmart is a chain of department stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Guam. stores, and expansion into new geographies."
Summary of Segment Results
Three Months Ended Three Months Ended
December 31, 2005 December 31, 2004
(In millions) Revenues Income/(Loss) Revenues Income/(Loss)
Catalina Marketing
Services $58.0 $14.3 $65.5 $18.2
Catalina Health Resource 21.1 3.1 19.8 3.7
Catalina Marketing
International 18.1 1.9 15.0 1.6
Corp / Eliminations 0.0 (5.1) 0.0 (3.1)
-------- ------------- -------- -------------
From Continuing
Operations $97.2 $14.2 $100.3 $20.4
-------- ------------- -------- -------------
Discontinued Operations $ - $ - $ - $(1.4)
-------- ------------- -------- -------------
Consolidated $97.2 $14.2 $100.3 $19.0
======== ============= ======== =============
Nine Months Ended Nine Months Ended
December 31, 2005 December 31, 2004
(In millions) Revenues Income/(Loss) Revenues Income/(Loss)
Catalina Marketing
Services $176.3 $45.1 $195.0 $53.2
Catalina Health Resource 62.5 10.9 56.9 7.5
Catalina Marketing
International 53.0 5.0 46.1 4.5
Corp / Eliminations 0.0 (13.4) 0.1 (12.6)
-------- ------------- -------- -------------
From Continuing
Operations $291.8 $47.6 $298.1 $52.6
-------- ------------- -------- -------------
Discontinued Operations $ - $ - $ - $(2.4)
-------- ------------- -------- -------------
Consolidated $291.8 $47.6 $298.1 $50.2
======== ============= ======== =============
Three Months Ended
December 31, 2005
(In millions) Percent Change
Revenues Income/(Loss)
Catalina Marketing Services (11.5%) (21.7%)
Catalina Health Resource 6.5% (15.7%)
Catalina Marketing International 21.0% 17.6%
Corp / Eliminations (100.0%) (63.4%)
-------- -------------
From Continuing Operations (3.1%) (30.4%)
-------- -------------
Discontinued Operations - 100.0%
-------- -------------
Consolidated (3.1%) (25.2%)
======== =============
Nine Months Ended
December 31, 2005
(In millions) Percent Change
Revenues Income/(Loss)
Catalina Marketing Services (9.6%) (15.3%)
Catalina Health Resource 10.0% 44.2%
Catalina Marketing International 15.0% 11.7%
Corp / Eliminations (93.6%) (5.9%)
-------- -------------
From Continuing Operations (2.1%) (9.5%)
-------- -------------
Discontinued Operations - 100.0%
-------- -------------
Consolidated (2.1%) (5.1%)
======== =============
Stock Repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. During the third quarter, the company repurchased 192,400 shares of its common stock for a total of $5.1 million, at an average price of $26.33 per share. Since the beginning of the fiscal year, the company has purchased 3,057,600 shares of its common stock for a total of $75.2 million, at an average price of $24.59 per share. The company currently has authority to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. an additional $80.6 million of common stock under the August 2005 Board of Directors authorization The right or permission to use a system resource; the process of granting access. See access control. . Webcast and Investor Conferences Scheduled The company will host a webcast on Thursday Thursday: see week. , January January: see month. 26, 2006 at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy to discuss its financial results for its fiscal year 2006 third quarter. The webcast may be accessed at http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker ticker An automated quotation system on which security transactions are reported after they occur on an exchange floor. Even though the newer systems are electronic and no longer actually tick, the name of the old mechanical device has stuck. =POS&script=1000 and will be available for replay from Thursday, January 26, 2006 through Monday Monday: see week. , February February: see month. 27, 2006. Dick Buell, chief executive officer, will present at the Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. Investment Conference in Palm Beach, Florida Palm Beach is an incorporated town in Palm Beach County, Florida. The Intracoastal Waterway separates it from the neighboring cities of West Palm Beach and Lake Worth. As of 2000, Palm Beach had a year-round population of 10,468, with an estimated seasonal population of 30,000. on Monday, February 27, 2006. Mr. Buell will also present at Baird's 2006 Business Solutions Conference in Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. on Wednesday Wednesday: see week. , March 1, 2006. The presentations will be webcast and will be accessible through the Investor Relations Investor relations The process by which the corporation communicates with its investors. Calendar of Events section of the company's web site (http://www.catalinamarketing.com).
Catalina Marketing Corporation
Selected Operating Data
(in thousands, except per share amounts)
Periods Ended December 31 Three Months Nine Months
2005 2004 2005 2004
Revenues $97,223 $100,319 $291,833 $298,093
Direct Operating Expenses 33,643 26,200 96,646 92,003
Selling, General and
Administrative 31,853 31,365 91,276 88,705
Depreciation and Amortization 8,453 10,202 26,680 32,360
-------- --------- --------- ---------
Income from Operations 23,274 32,552 77,231 85,025
Other Income (Expense) (383) 255 (451) (12)
Provision for Income Taxes 8,698 12,404 29,176 32,394
-------- --------- --------- ---------
Income from Continuing
Operations 14,193 20,403 47,604 52,619
Gain (Loss) from Discontinued
Operations - 292 - (4,002)
Gain (Loss) from Disposition - (1,724) - 1,559
-------- --------- --------- ---------
Income (Loss) from Discontinued
Operations - (1,432) - (2,443)
-------- --------- --------- ---------
Net Income $14,193 $18,971 $47,604 $50,176
======== ========= ========= =========
Earnings Per Share, Basic:
Earnings Per Share from
Continuing Operations $0.30 $0.39 $0.97 $1.01
Income (Loss) from Discontinued
Operations $ - $(0.03) $ - $(0.05)
-------- --------- --------- ---------
Net Income Per Common Share $0.30 $0.36 $0.97 $0.96
Weighted Average Shares
Outstanding 48,021 52,300 49,088 52,266
Earnings Per Share, Diluted:
Earnings Per Share from
Continuing Operations $0.29 $0.39 $0.96 $1.01
Income (Loss) from Discontinued
Operations $ - $(0.03) $ - $(0.05)
-------- --------- --------- ---------
Net Income Per Common Share $0.29 $0.36 $0.96 $0.96
Weighted Average Shares
Outstanding 48,428 52,720 49,419 52,334
Catalina Marketing Corporation
Selected Other Data
(in thousands, except store data)
December 31, December 31,
2005 2004
Selected Balance Sheet and Cash
Flow Data (in thousands):
Cash $32,556 $119,437
Debt 48,001 62,197
Stockholders' Equity 156,551 222,114
Cash Flows from Operating Activities
Quarter / YTD 30,263 / 62,025 29,291 / 71,761
Capital Expenditures Quarter / YTD 14,902 / 39,496 6,758 / 12,933
Catalina Marketing Services:
Number of Stores at Quarter End 17,788 17,712
Net Stores (Deinstalled) Installed
During Quarter / YTD 1,095 / 179 68 / 108
Promotions Printed During Quarter /
YTD (in millions) 712 / 2,169 813 / 2,403
Weekly Shopper Reach at Quarter End
(in millions) 226 221
Catalina Health Resource:
Number of Stores at Quarter End 12,621 12,380
Net Stores Installed (Deinstalled)
During Quarter / YTD 217 / 198 299 / 451
Catalina Marketing International:
Number of Stores at Quarter End 6,962 5,741
Net Stores Installed During Quarter
/ YTD 263 / 1,055 41 / 196
Promotions Printed During Quarter /
YTD (in millions) 286 / 774 204 / 616
Weekly Shopper Reach at Quarter End
(in millions) 84 62
About Catalina Marketing Corporation Based in St. Petersburg, Fla., Catalina Marketing Corporation (http://www.catalinamarketing.com) was founded over 20 years ago based on the premise that targeting communications based on actual purchase behavior would generate more effective consumer response. Today, Catalina Marketing combines unparalleled insight into consumer behavior with dynamic consumer access. This combination of insight and access provides marketers with the ability to execute behavior-based marketing programs, ensuring that the right consumer receives the right message at exactly the right time. Catalina Marketing offers an array of behavior-based promotional messaging, loyalty programs and direct-to-patient information. Personally identifiable data that may be collected from the company's targeted marketing programs, as well as its research programs, are never sold or provided to any outside party without the express permission of the consumer. Certain statements in the preceding paragraphs are forward-looking, and actual results may differ materially. Statements not based on historic facts involve risks and uncertainties, including, but not limited to, the changing market for promotional activities, especially as it relates to policies and programs of consumer packaged goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one and pharmaceutical manufacturers and retailers and competition to provide marketing services to these customers, mergers and consolidations in the consumer packaged goods and retailer industries, federal, state and international government and regulatory statutes, rules, regulations and policies including privacy and labeling, the effect of economic conditions and seasonal variations, actual promotional activities and programs with the company's customers, the pace, cost and challenges associated with the installation of the company's store network and changes in the status of contractual relations with retailers including as it relates to the company's installation of color not of the white race; - commonly meaning, esp. in the United States, of negro blood, pure or mixed. See also: Color printers and related new technologies, the success of new services and businesses and the pace of their implementation including the entry into new retail channels, the company's ability to maintain favorable relationships with its clients and retailers, the outcome and impact of an ongoing SEC investigation into certain of the company's prior fiscal years, and the outcome and impact of the pending shareholder class action and derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. lawsuits. |
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