Snyder Communications Reports Second Quarter Results.Business/Technology Editors BETHESDA Bethesda, city, United States Bethesda, uninc. city (1990 pop. 62,936), Montgomery co., W central Md., an affluent residential and commercial suburb of Washington, D.C. The area was settled in the late 17th cent. , Md.--(BUSINESS WIRE)--Aug. 9, 2000 Snyder Communications Snyder Communications Inc. (SNC) was founded in 1988 by Daniel M. Snyder and his sister Michelle Snyder. Their activities were mainly outsourced marketing services, such as Direct marketing, database marketing, proprietary product sampling, sponsored information display in prime , Inc., (NYSE NYSE See: New York Stock Exchange : SNC SNC St Norbert College (De Pere, Wisconsin) SNC Sistema Nervioso Central SNC Société en Nom Collectif (French: Partnership) SNC Système Nerveux Central (French: central nervous system) ) today announced its financial results for the quarter ended June June: see month. 30, 2000. During the second quarter of 2000, the Company reported revenue of $159.5 million compared to $154.4 million for the same quarter of 1999, excluding revenue from Ventiv Health Inc. (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 : VTIV), spun off during the third quarter of 1999, and from Circle.com (NASDAQ: CIRC), which had its own tracking stock commence trading in October October: see month. 1999. 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 second quarter of 2000 were $0.13 compared to $0.21 for the same period of 1999, on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis. Net income for the quarter ended June 30, 2000 was $10.6 million, compared to $15.9 million for the same quarter of 1999, on a pro forma basis. Exclusive of corporate costs and the results of the Company's teleservices (1) Refers to a variety of enhanced services via telephone, including fax-on-demand, voice mail and computer telephone integration. See CTI and IVR. (2) Services by human operators for taking orders and providing customer assistance and other tasks via telephone. business, the SNC agencies of Snyder Communications reported second quarter EBITA EBITA Earnings Before Interest Taxes Amortization of $26.1 million, reflecting an EBITA margin of 17.2%. Similarly, agency EBITA for the first quarter was $23.6 million, reflecting an EBITA margin of 15.8%. Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. M. Snyder Snyder, city (1990 pop. 12,195), seat of Scurry co., NW Tex., in a prairie and mesquite region; inc. 1907. Oil production is the city's main industry; natural gas is also refined and processed. , Chief Executive Officer of Snyder Communications commented, "Our Agency Brands continued to demonstrate strong operating results in the second quarter. One year ago, we stated that we would increase the level of business reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. to support our 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 initiatives. These incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. investments in technology and people have already begun to yield results. In the first half of 2000, exclusive of the teleservicing business, our agencies have generated revenues and margins consistent with our budgeted objectives. "As we move closer to finalizing our anticipated merger with Havas Havas is the second largest advertising group in France and is a "Global advertising and communications services group" and the sixth-largest global advertising and communications group worldwide, operating on the communications consulting market through three main operational Advertising, our Agency Brands have readied themselves to take advantage of the tremendous opportunities for international expansion offered by Havas Advertising's global reach. Looking at the remainder of the year, we anticipate continued improvement across our core businesses in line with our stated goals which include revenue growth of approximately 15%." On February February: see month. 21, 2000 Snyder Communications, Inc., announced a merger with Havas Advertising (Paris Stock Exchange: EURC EURC Edinburgh University Rifle Club (UK) EURC European Urban Renewal Council EURC End User Request Center (JPMorgan Chase) .PA) in which the Paris-based advertising firm will acquire Snyder's SNC class of common stock in an all-stock transaction valued at $29.50 per SNC share, or approximately $2.1 billion, creating the world's fourth largest advertising communications group based on 1999 revenues. Snyder's Circle.com common stock, the tracking stock for Snyder Communications' Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the services business, will remain outstanding after the merger. [pilcrow (paragraph sign)] The transaction has been approved by the Federal Trade Commission and the Department of Justice, pursuant to the Hart-Scott-Rodino Antitrust Improvements Act The Hart-Scott-Rodino Antitrust Improvements Act of 1976 (Public Law 94-435, known commonly as the HSR Act) is a set of amendments to the antitrust laws of the United States, principally the Clayton Antitrust Act. The HSR Act was signed into law by President Gerald R. of 1976. The Companies anticipate the merger will be completed in late September September: see month. of this year. The completion of the merger transaction is subject to shareholder approval and customary closing conditions. In a separate announcement, Havas Advertising today reported that it has filed a Form F-4 registration statement with the U.S. Securities and Exchange Commission in conjunction with the proposed acquisition of Snyder Communications. The four financial tables attached to this press release include: (1) a pro forma presentation of SNC (NYSE: SNC); (2) an actual presentation of SNC including non-recurring costs and Ventiv Health, Inc. presented as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. in 1999; (3) an actual presentation of Circle.com; (4) and an actual presentation including the consolidated results of SNC and Circle.com, non-recurring costs, and Ventiv Health, Inc. presented as discontinued operations in 1999. Snyder Communications, Inc. is an international provider of direct marketing, advertising and communications services and Internet professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. . Snyder's Brann Brann can refer to:
adj. 1. Of or relating to the initial phase of a project: a front-end investment. 2. Of or relating to the forward parts of a vehicle: a front-end alignment. Internet Website development through to the back-end e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. systems. Snyder's Bounty bounty, payment made by a government bounty, amount paid by a government for the achievement of certain economic or other goals. It often takes the form of a premium paid for the increased production or export of certain goods. SCA (Single Connector Attachment) An 80-pin plug and socket used to connect peripherals. With a SCSI drive, it rolls three cables (power, data channel and ID configuration) into one connector for fast installation and removal. Worldwide offers global consumer access and insight through its proprietary channels. Snyder Communications has offices 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. , the United Kingdom, Belgium, Spain, Switzerland, and Russia. Visit the Snyder Communications Website at www.snyder.com. 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. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other factors include, without limitation: the risk that growth and development efforts will not produce the desired results; uncertainties related to the time required to complete growth and development; uncertainties related to market acceptance of services being offered and developed; and the services' ability to compete successfully with other services in the market. Readers of this press release are referred to the various reports and documents filed from time to time by the Company with the Securities and Exchange Commission for further discussion of these and other factors which could affect future results.
SNC
(amounts in thousands, except per share data)
(unaudited)
Pro forma- Excluding Merger and Integration Costs and
Ventiv Health, Inc.
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Net revenue $ 159,526 $ 154,432 $ 316,822 $ 287,388
Costs and expenses:
Cost of services 110,120 105,060 219,209 192,183
Selling, general
and administrative 30,240 24,186 60,563 45,851
Total costs and expenses 140,360 129,246 279,772 238,034
Income from operations 19,166 25,186 37,050 49,354
Interest income
(expense), net (2,071) 159 (4,498) 541
Income before taxes 17,095 25,345 32,552 49,895
Income tax provision 6,496 9,397 12,370 18,711
Net income 10,599 15,948 20,182 31,184
Plus: Income (loss)
related to retained
interest in Circle.com (859) (304) (1,794) (478)
Income attributable
to SNC stockholders $ 9,740 $ 15,644 $ 18,388 $ 30,706
Diluted net income
per SNC share (a) $ 0.13 $ 0.21 $ 0.25 $ 0.41
SNC shares (b) 74,223 75,911 73,921 75,347
Depreciation and
Amortization $ 7,076 $ 7,187 $ 13,697 $ 11,791
EBITDA $ 26,242 $ 32,373 $ 50,747 $ 61,145
(a)SNC per share amounts reflect SNC's income and SNC's retained
interest in the income (loss) of Circle.com.
(b)1999 shares have been computed using the shares of SNC stock
that would have been outstanding if the recapitalization of Snyder
Communications had occurred at the beginning of 1999.
SNC
(amounts in thousands, except per share data)
(unaudited)
Actual - Including Merger and Integration Costs and Presenting
Ventiv Health, Inc. as Discontinued Operations
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Net revenue $ 159,526 $ 154,432 $ 316,822 $ 287,388
Costs and expenses:
Cost of services 110,120 105,060 219,209 192,183
Selling, general and
administrative 30,240 24,186 60,563 45,851
Merger and integration
costs (a) 325 673 4,313 1,382
Total costs and expenses 140,685 129,919 284,085 239,416
Income (loss)
from operations 18,841 24,513 32,737 47,972
Interest income
(expense), net (2,071) 159 (4,498) 541
Income before taxes 16,770 24,672 28,239 48,513
Income tax provision 6,496 9,449 12,370 18,595
Net income from
continuing operations 10,274 15,223 15,869 29,918
Income from discontinued
operations net of tax (b) -- 7,549 -- 12,639
Plus: Income (loss)
related to retained
interest in Circle.com (859) (304) (1,794) (478)
Income (loss) attributable
to SNC stockholders $ 9,415 $ 22,468 $ 14,075 $ 42,079
Diluted net income (loss)
per SNC share (c) $ 0.13 $ 0.30 $ 0.19 $ 0.56
SNC shares (d) 74,223 75,911 73,921 75,347
(a)Merger and integration costs in the six months ended June 30,
2000 consist of investment banking fees and other professional service
fees related to the planned acquisition of Snyder Communications by
Havas Advertising. Merger and integration costs in the six months
ended June 30, 1999 consist of costs to integrate acquired companies
pursuant to a plan initiated in the fourth quarter of 1998.
(b)Includes the results of Ventiv Health, Inc., which the company
spun off on September 27, 1999.
(c)SNC per share amounts reflect SNC's income and SNC's retained
interest in the income (loss) of Circle.com.
(d)1999 shares have been computed using the shares of SNC stock
that would have been outstanding if the recapitalization of Snyder
Communications had occurred at the beginning of 1999.
Circle.com
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Net revenues $ 17,720 $ 6,998 $ 34,397 $ 12,347
Operating expenses:
Professional services 10,082 3,906 20,071 7,128
Office and general 13,135 3,705 26,223 7,017
Income (loss) from operations (5,497) (613) (11,897) (1,798)
Interest expense, net (1,069) -- (1,811) --
Income (loss) before
income taxes (6,566) (613) (13,708) (1,798)
Income tax provision (benefit) (1,379) 907 (2,879) 593
Net income (loss) (5,187) (1,520) (10,829) (2,391)
Less: Income (loss) related
to SNC's retained interest (859) (304) (1,794) (478)
Income (loss) attributable to
Circle.com stockholders $ (4,328) $ (1,216) $ (9,035) $ (1,913)
Diluted net income (loss)
per share (a) $ (0.19) $ (0.06) $ (0.40) $ (0.10)
Circle.com shares (b) 22,571 18,992 22,520 18,485
(a)Circle.com per share amounts exclude the portion of
Circle.com's income (loss) which is attributed to SNC's retained
interest.
(b)1999 shares have been computed using the shares of Circle.com
stock that would have been outstanding if the recapitalization of
Snyder Communications had occurred at the beginning of 1999.
Snyder Communications, Inc.
(Consolidation of SNC and Circle.com)
(amounts in thousands, except per share data)
(unaudited)
Actual - Including Merger and Integration Costs and Presenting
Ventiv Health, Inc. as Discontinued Operations
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Net revenue $ 176,959 $ 161,345 $ 350,892 $ 299,426
Costs and expenses
Cost of services 122,335 109,806 243,473 200,736
Selling, general
and administrative 40,955 26,966 82,266 51,134
Merger and integration
costs (a) 325 673 4,313 1,382
Total costs and expenses 163,615 137,445 330,052 253,252
Income (loss) from operations 13,344 23,900 20,840 46,174
Interest income
(expense), net (3,140) 159 (6,309) 541
Income (loss) before taxes 10,204 24,059 14,531 46,715
Income tax provision 5,117 10,356 9,491 19,188
Net income (loss) from
continuing operations 5,087 13,703 5,040 27,527
Income from discontinued
operations net of tax (b) -- 7,549 -- 12,639
Net income (loss) $ 5,087 $ 21,252 $ 5,040 $ 40,166
SNC:
Diluted net income
(loss) per share (c) $ 0.13 $ 0.30 $ 0.19 $ 0.56
SNC shares (d) 74,223 75,911 73,921 75,347
Circle.com:
Diluted net income
(loss) per share (e) $ (0.19) $ (0.06) $ (0.40) $ (0.10)
Circle.com shares (d) 22,571 18,992 22,520 18,485
(a)Merger and integration costs in the six months ended June 30,
2000 consist of investment banking fees and other professional service
fees related to the planned acquisition of Snyder Communications by
Havas Advertising. Merger and integration costs in the six months
ended June 30, 1999 consist of costs to integrate acquired companies
pursuant to a plan initiated in the fourth quarter of 1998.
(b)Includes the results of Ventiv Health, Inc., which the company
spun off on September 27, 1999.
(c)SNC per share amounts reflect SNC's income and SNC's retained
interest in the income (loss) of Circle.com.
(d)1999 shares have been computed using the shares of SNC and
Circle.com stock that would have been outstanding if the
recapitalization of Snyder Communications had occurred at the
beginning of 1999.
(e)Circle.com per share amounts exclude the portion of
Circle.com's income (loss) which is attributed to SNC's retained
interest.
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