Catalina Marketing Files Audited Financial Statements
May 17 2004 - 5:51PM
PR Newswire (US)
Catalina Marketing Files Audited Financial Statements ST.
PETERSBURG, Fla., May 17 /PRNewswire-FirstCall/ -- Catalina
Marketing Corporation today reported that it has completed the
restatement of its financial statements and has filed with the
Securities and Exchange Commission (SEC) its Annual Report on Form
10-K for the fiscal year ended March 31, 2003, which includes
audited financial statements for fiscal years 2003, 2002 and 2001.
These financial statements reflect adjustments to previously
announced unaudited results for fiscal year 2003, and include
restated financial statements for fiscal years 2002 and 2001. "The
Audit Committee has conducted a thorough review of all issues
related to the fiscal years 2001 through 2003," said L. Dick Buell,
chief executive officer. "The final results confirm that the
primary issues were related to the timing of certain revenue
recognition, and also include changes relating to the timing of
certain expense items. In particular, expenses were affected by the
timing of non-cash write-offs of goodwill relating to the loss of
value of certain of our operating units." The Company reiterated
that the restatements did not have an impact on its credit
facilities and that it is currently in compliance with all related
financial covenants. For the three fiscal years ended March 31,
2003, 2002 and 2001, the Company reported consolidated financial
results as follows (in millions, except per share amounts): Year
Ended Year Ended Year Ended March 31, 2003 March 31, 2002 March 31,
2001 Revenues $470.7 $442.7 $413.1 Net Income $55.1 $58.6 $47.2
Earnings per share, diluted $1.00 $1.03 $0.81 In addition to the
adjustments reported in the Company's May 3, 2004 news release,
Catalina has made three additional adjustments to its 2003, 2002
and 2001 results. Further analysis performed during the preparation
of its Annual Report on Form 10-K identified these additional
adjustments, which were necessary to present the Company's
financial statements in accordance with accounting principles
generally accepted in the United States of America (U.S. GAAP). The
Company has made the following additional adjustments: -- An
adjustment was recorded by the Company for the proper amortization
of prior service costs related to the implementation of its
postretirement healthcare benefit plan. While the aggregate expense
related to the implementation of the postretirement healthcare
benefits will remain unchanged, the adjustment caused these
expenses to decrease by $1.1 million in fiscal year 2002, and to
increase by $0.7 million in fiscal year 2003, with the remainder of
the expense to be recognized in future periods. -- An adjustment
was made to expense bonus compensation, paid directly by the
previous owner, at Research Solutions. This adjustment caused
selling, general and administrative expenses to increase by $0.7
million in fiscal year 2002. -- During the Company's re-examination
of the lease transaction governing its corporate headquarters, it
determined that the related lease should have been accounted for as
a capital lease rather than an operating lease. The Company
restated its financial statements effective beginning fiscal year
2001 to reflect early adoption of FASB Interpretation No. 46,
"Consolidation of Variable Interest Entities," (FIN 46). The
Company's election to adopt FIN 46 early resulted in a $30.5
million increase in property and equipment and a $29.6 million
increase in long-term debt to reflect the inclusion of the
Company's corporate headquarters and the related liability on the
Company's balance sheet as of the third quarter of the fiscal year
ended March 31, 2001. Effective with the adoption of FIN 46,
depreciation expense increased approximately $1.5 million annually,
related to the depreciation of the building and related
improvements. Had the Company not chosen to adopt FIN No. 46 early,
the restatement would have required conversion of the lease
obligation from operating to capital. Net of tax, the impact of
these adjustments compared with the amounts reported on May 3, 2004
was a decrease of $1.3 million in net income or $0.02 per diluted
share in fiscal 2003, a decrease of $0.6 million in net income or
$0.01 per diluted share in fiscal 2002, and a decrease of $0.3
million in net income or $0.01 per diluted share in fiscal 2001.
Details related to the adjustments captured in the financial
results reported for fiscal year 2003 and the restated financial
results for fiscal years 2002 and 2001 are included in the
Company's Annual Report on Form 10-K. The Company has announced
that it will host a webcast on Tuesday, May 18, 2004 at 10:00 a.m.
EDT to discuss the adjustments and financial results that it
reported. The webcast may be accessed at
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=POS&script=400
. It should be noted that the financial results of the Company's
fiscal year ended March 31, 2004 have not been announced. The
financial results for the periods ended March 31, 2003, and the
Company's financial condition as of that date, are not reflective
of the Company's financial results for the year ended, and
financial condition as of, March 31, 2004. The Company intends to
publish those results as soon as practicable. Until such time as
those results are published, investors should be aware that the
publicly available financial information regarding the Company is
not current. Based in St. Petersburg, FL., Catalina Marketing
Corporation (http://www.catalinamarketing.com/) was founded 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 given 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 packaged goods manufacturers
for the issuance of certain product coupons, the effect of economic
and competitive conditions and seasonal variations, actual
promotional activities and programs with the Company's customers,
the pace of installation of the Company's store network, the
success of new services and businesses and the pace of their
implementation, the Company's ability to maintain favorable client
relationships, the timing of completion of the Company's audits,
the timing of the completion of the Company's future SEC filings,
the outcome and impact of the ongoing SEC investigation, and the
outcome and impact of the pending shareholder class action.
DATASOURCE: Catalina Marketing Corporation CONTACT: Investors,
Christopher W. Wolf, Executive Vice President and Chief Financial
Officer, +1-727-579-5218, or Joanne Freiberger, Vice President,
Finance, +1-727-579-5116, or Media, Susan Gear, Executive Director,
Marketing, +1-727-579-5452, all of Catalina Marketing Corporation
Web site: http://www.catalinamarketing.com/
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