<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 8-K
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 15, 1997
Catalina Marketing Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-11008 33-0499007
Commission File Number (IRS Employer
Identification No.)
11300 9th Street North 33716
St. Petersburg, Florida (Zip code)
(Address of principal executive offices)
(813) 579-5000
Registrant's Telephone Number
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Item 5. Other Events.
On October 15, 1997 Catalina Marketing Corporation (the
Company) issued a press release communicating its fiscal 1998 second
quarter earnings, included in this report as Exhibit 99.2.
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Item 7. Exhibits.
99.2 Form of press release dated October 15, 1997.
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SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
CATALINA MARKETING CORPORATION
By /s/ PHILIP B. LIVINGSTON
-------------------------------
Philip B. Livingston,
Senior Vice President and Chief
Financial Officer
Dated: November 25, 1997
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Exhibit 99.2
CATALINA
[LOGO] MARKETING
CORPORATION
NEWS
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FOR IMMEDIATE RELEASE CONTACT: Philip B. Livingston
Senior Vice President and
Chief Financial Officer
813-579-5006
Bruce Valentine
Treasurer
813-579-5210
CATALINA MARKETING REPORTS RECORD
REVENUE AND EARNINGS PER SHARE
ST. PETERSBURG, Florida, October 15, 1997 - Catalina Marketing Corporation
(NYSE: POS) today announced that for the second quarter ended September 30,
1997, earnings per share increased 23 percent to 43 cents versus 35 cents
reported for the comparable period a year ago. The company's net income was
$8.2 million on total revenue of $52.7 million, compared to net income of $7.2
million on revenue of $41.6 million in the September 1996 quarter. The
company's revenue growth amounted to a 27 percent increase over the year-ago
quarter.
For the six month period ended September 30, 1997, total revenue increased 25
percent to $99.4 million versus $79.7 million posted in the first half of
fiscal 1997. Earnings per share was 73 cents versus 66 cents reported a year
ago.
George W. Off, president and chief executive officer, commented, "We were
pleased with the quarter's results, as we achieved record levels of revenue and
earnings per share. The $53 million in consolidated revenue for the quarter
included solid top-line growth in our core domestic business, and we continued
to benefit from new product initiatives like Checkout Direct. In addition, our
new ventures and international operations were growing contributors to the top
line. We feel that we are positioned for a successful second half."
Other highlights for the quarter included the following:
* Quarterly cash flow, or EBITDA, increased 32 percent to $19.9 million from
the comparable period a year ago. Total operating expenses before
depreciation and amortization decreased as a percent of revenue, resulting
in an improved EBITDA margin of 38 percent versus 36 percent a year ago.
On a trailing twelve month basis, EBITDA reached $67.9 million, up
25 percent over the comparable period a year ago.
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* Net income was up 15 percent over the second quarter a year ago. The
difference between this mark and the 23 percent increase in earnings per
share reflects the company's share repurchase activity and related interest
costs. Over the twelve month period ended September 30, 1997, the company
has repurchased 1.6 million common shares for $49.0 million at an average
price of $30.59 per share, with the activity occurring in the December,
March, and June quarters. Revolving credit borrowings for this purpose
were as high as $22 million during the first quarter ended June 30 and were
reduced to $1.7 million as of September 30.
* The company made continued progress in store installations in the United
Kingdom, France and Japan. In the U.K., store installations began in the
Somerfield chain under a contract to install over 400 stores by the end of
the calendar year. In France, the roll-out of Champion stores commenced
under an agreement calling for the installation of 500 stores before the
end of next year. In Japan, a second retailer pilot was launched with the
200-store Seiyu chain.
* Health Resource Publishing Company (HRPC), which delivers targeted
promotions and advertising in over 1,400 pharmacy outlets, announced that
it has signed an installation agreement with the 4,000 store Rite Aid
chain. The agreement provides for HRPC's program to be rolled out in over
1,000 West-coast Rite Aid stores over the next 12 months, with
installations to commence in the remaining Rite Aid pharmacies thereafter.
* SuperMarkets Online, Inc. announced that it is launching a secure Internet
coupon solution this fall that will give packaged goods manufacturers and
retailers an important tool for linking Internet marketing with the
Catalina Marketing Network(R) on a national scale.
* Net income for the quarter included pre-tax losses from domestic new
business ventures of $1.6 million, or five cents per share after tax. In
the comparable quarter a year ago, the company's net income reflected
pre-tax losses from domestic new business ventures of $3.1 million, or
nine cents per share on an after-tax basis.
Based in St. Petersburg, Florida, Catalina Marketing Corporation provides
in-store electronic marketing programs for more than 150 consumer goods
companies. The Catalina Marketing Network(R) reaches more than 142 million
shoppers each week in over 10,800 supermarkets across the United States. The
company consists of four distinct business units: Catalina Marketing Services,
which markets the company's core electronic marketing programs; Catalina
Marketing International, which markets Network programs abroad; Health
Resource Publishing Company, which delivers incentives through customized
newsletters in the pharmacy; and SuperMarkets Online, Inc., which distributes
targeted consumer goods promotions on the World Wide Web.
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CATALINA MARKETING CORPORATION
Selected Financial Data
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Six Months
------------ ----------
Periods ended September 30 1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenue $52,727 $41,618 $99,386 $79,745
Direct Operating Expenses 20,407 14,863 38,440 27,999
Selling, General and Administrative 12,421 11,658 25,317 22,812
Depreciation and Amortization 5,923 4,090 11,614 7,754
Income from Operations 13,976 11,007 24,015 21,180
Interest Income/(Expense) and Other (390) 341 (783) 573
Minority Interest - 212 - 372
Provision for Income Taxes 5,342 4,371 9,351 8,642
Net Income 8,244 7,189 $13,881 13,483
Earnings Per Share $ 0.43 $ 0.35 $ 0.73 $ 0.66
Weighted Average Shares Outstanding 19,146 20,608 19,135 20,580
</TABLE>
Selected Other Data
<TABLE>
<CAPTION>
September 30
------------
1997 1996
---- ----
<S> <C> <C> <C>
Balance Sheet and Cash Flow (in thousands):
- -------------------------------------------
Cash $ 2,769 $ 25,894
Stockholders' Equity 75,914 88,294
Twelve Month EBITDA 67,977 54,400
U.S. Checkout Coupon Business:
- ------------------------------
Number of Stores at Quarter End 10,801 10,470
Net Stores Installed During Quarter/YTD (31)/56 385/704
Promotions Printed During Quarter/YTd (in millions) 660/1,257 574/1,095
Weekly Shopper Reach at Quarter End (in millions) 142 136
International Checkout Coupon Business:
- ---------------------------------------
Number of Stores at Quarter End 913 690
Net Stores Installed During Quarter/YTD (144)/(28) 68/132
Promotions Printed During Quarter/YTD (in millions) 78/184 48/98
Weekly Shopper Reach at Quarter End (in millions) 15 14
</TABLE>
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