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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): July 16, 1998
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 July 16, 1998 Catalina Marketing Corporation (the Company)
issued a press release communicating its first quarter fiscal 1999
earnings, included in this report as Exhibit 99.6.
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<TABLE>
<CAPTION>
Item 7. Exhibits.
<S> <C> <C>
99.6 Form of press release dated July 16, 1998.
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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: July 20, 1998
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EXHIBIT 99.6
[LOGO]
CATALINA
MARKETING
CORPORATION NEWS
================================================================================
IMMEDIATE RELEASE CONTACT: Philip B. Livingston
Senior Vice President and
Chief Financial Officer
813-579-5006
Bruce Valentine
Treasurer
813-579-5210
CATALINA MARKETING CORPORATION
REPORTS FIRST QUARTER RESULTS
ST. PETERSBURG, Florida, July 16, 1998 - Catalina Marketing Corporation (NYSE:
POS) today announced that for the first quarter ended June 30, 1998, earnings
per share increased to 35 cents from 30 cents reported for the comparable period
a year ago. The company's quarterly net income was $6.7 million on total revenue
of $56.8 million, compared to net income of $5.6 million on revenue of $46.7
million in the June, 1997 quarter. The company's first quarter revenue increased
22 percent over the prior year's quarter.
George W. Off, Chief Executive Officer, commented, "The quarter was in line with
our expectations. Growth in our core domestic business and stronger
international performance were key factors driving incremental profit for the
period."
Other highlights for the quarter included the following:
- - Total revenue in the core domestic business increased 17 percent over
the year-ago level as average revenue per store grew by 11 percent
relative to the June, 1997 quarter.
- - Earnings before interest, taxes, depreciation and amortization
("EBITDA") increased 14 percent to $18.0 million from $15.7 million for
the year-ago quarter, and grew 27 percent to $82.3 million (on a pro
forma basis) for the trailing twelve month period ended June 30, 1998.
- - During the quarter the company increased its core domestic installed
base by 268 stores on a net basis, resulting in a total installed base
of 11,432 stores. Internationally, the company's installed base
increased by 84 outlets to 1,456 stores due to expansion in the
company's UK and France businesses.
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- - Health Resource Publishing Company added 336 stores on a net basis,
finishing the quarter with an installed base of 2,256 pharmacy outlets.
Installation activity under the company's Rite-Aid contract was a key
factor propelling the company across the 2,000-store mark.
- - With over 1,000,000 visitors per month, SuperMarkets Online, Inc.
continued to build upon its position as a leader in Internet consumer
packaged goods promotions. Over 40 packaged goods manufacturers are now
participating in ValuPage programs involving 114 product categories.
ValuPage offers can now be accepted in over 7,000 supermarkets within
the Catalina Marketing Network(R). Consisting of customized shopping
lists of offers that consumers can access through www.valupage.com,
ValuPage provides packaged goods manufacturers with a secure Internet
coupon solution that leverages the in-store, scanner-based Catalina
Marketing Network.
- - On July 13 the company announced it had acquired Market Logic, Inc., a
marketing firm specializing in the development and fulfillment of
sophisticated, customized direct marketing programs for retailers. In
reference to the acquisition, Daniel D. Granger, President and Chief
Operating Officer, commented, "By joining the Catalina team, Market
Logic will enhance our offerings of loyalty marketing services and
expand our ability to help retailers with frequent shopper programs."
- - 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.
Such losses were flat compared to the June, 1997 quarter.
Based in St. Petersburg, Florida, Catalina Marketing Corporation provides a menu
of in-store electronic marketing programs to over 150 consumer goods companies.
The company's purchase-based, individually customized communications and
promotions reach more than 150 million U.S. shoppers in over 11,400 supermarkets
via the Catalina Marketing Network(R). The company's businesses include Catalina
Marketing Services, which markets the company's core electronic marketing
programs in the U.S.; Catalina Marketing International, which operates Network
programs in the UK, France, and Japan; Health Resource Publishing Company, which
delivers targeted incentives and advertising through customized newsletters to
pharmacy customers based on prescription purchases; and SuperMarkets Online,
Inc., a secure coupon vehicle which distributes promotions via the World Wide
Web.
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CATALINA MARKETING CORPORATION
Selected Financial Data
(in thousands, except per share amounts)
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<CAPTION>
THREE MONTHS
PERIODS ENDED JUNE 30 1998 1997
<S> <C> <C>
Revenue $ 56,834 $ 46,659
Direct Operating Expenses 23,550 18,033
Selling, General and Administrative 15,305 12,896
Depreciation and Amortization 6,404 5,691
Income from Operations 11,575 10,039
Interest Income/(Expense) and Other (28) (393)
Provision for Income Taxes 4,809 4,009
Net Income $ 6,738 $ 5,637
DILUTED:
Earnings Per Share $ 0.35 $ 0.30
Weighted Average Shares Outstanding 19,033 19,072
BASIC:
Earnings Per Share $ 0.36 $ 0.31
Weighted Average Shares Outstanding 18,530 18,330
</TABLE>
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Selected Other Data
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<TABLE>
<CAPTION>
JUNE 30,
1998 1997
<S> <C> <C>
BALANCE SHEET AND CASH FLOW (IN THOUSANDS):
Cash $24,674 $ 3,017
Stockholders' Equity 97,705 65,510
Twelve Month EBITDA 78,844 63,175
Twelve Month EBITDA (Pro forma)* 82,339 64,605
U.S. CHECKOUT COUPON BUSINESS:
Number of Stores at Quarter End 11,432 10,832
Net Stores Installed During Quarter 268 87
Promotions Printed During Quarter (in millions) 607 597
Weekly Shopper Reach at Quarter End (in millions) 153 147
INTERNATIONAL CHECKOUT COUPON BUSINESS:
Number of Stores at Quarter End 1,456 1,057
Net Stores Installed During Quarter 84 116
Promotions Printed During Quarter (in millions) 91 106
Weekly Shopper Reach at Quarter End (in millions) 23 20
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* Pro forma EBITDA for the twelve months ended June 30, 1998 excludes $3.5
million in expense associated with the shutdown of Mexican operations during
the quarter ended December 31, 1997. Comparably, pro forma EBITDA for the
twelve months ended June 30, 1997 excludes the effect of $1.4 million in
expense ($2.0 million less $0.6 million in depreciation expense) incurred in
shutting down the company's electronic coupon clearing operation during the
fourth quarter of fiscal year 1997.
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