UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Filed Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 12, 1998
NFO WORLDWIDE, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-21460 06-1327424
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification Number)
2 Pickwick Plaza
Suite 400
Greenwich, Connecticut 06830
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(Address of principal executive offices)
Registrant's telephone number, including area code: (203) 629-8888
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Item 5. Other Events
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A copy of the Press Release dated May 12, 1998 is attached hereto as
Exhibit 99.1 and is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma
Financial Information and Exhibits
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(c) The following is an exhibit to this Report and is filed herewith:
Exhibit 99.1 Press Release dated May 12, 1998 of
NFO Worldwide, Inc.
2
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NFO WORLDWIDE, INC.
(Registrant)
By: /s/ PATRICK G. HEALY
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Patrick G. Healy
President - Corporate Product/Systems
Development and Chief Financial Officer
Dated: May 12, 1998
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EXHIBIT INDEX
NFO WORLDWIDE, INC.
Current Report on Form 8-K
Dated May 12, 1998
Exhibit No. Description
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Exhibit 99.1 Press Release dated May 12, 1998 of NFO Worldwide,
Inc.
CONTACT: Patrick G. Healy
President-CPSD & CFO
203-618-8502
e-mail: [email protected]
NFO WORLDWIDE, INC. REPORTS RECORD
FIRST QUARTER RESULTS
Greenwich, CT -- May 12, 1998 -- NFO Worldwide, Inc. (NYSE:NFO) today
reported its results for the first quarter ended March 31, 1998. Revenues for
the first quarter increased by 20% to $50.2 million compared with $42.0 million
for the same period last year. Net income increased 6% to $2.5 million from $2.4
million in the year ago quarter. Diluted earnings per share increased 9% to
$0.12 from $0.11 a year ago. Currency translation decreased first quarter
revenues by $1.5 million, or almost 4%, and net income by $0.4 million, or $0.02
per share. Excluding the negative currency impact, earnings per share increased
27% versus a year ago.
Revenue growth in the first quarter was driven by the strong
performance in the Company's international, hi-tech and financial services
business units, as well as by the contributions from NFO's newest companies - CM
Research, Ross-Cooper-Lund and MarketMind Technologies. Consolidated revenues,
at constant exchange rates, grew by 23% over the prior year.
Operating income for the quarter ended March 31, 1998 increased 4% to
$4.9 million compared with $4.7 million for the same period a year ago. Currency
translations negatively impacted operating income by over $.5 million, or 11%,
during the quarter. Excluding the effects of the currency translations,
operating income increased 15% over the prior year and net income rose 22%.
William E. Lipner, Chairman, President and Chief Executive Officer,
said "Despite the negative currency impact, our financial performance during the
first quarter was consistent with our operating plan, and marks the start of
what we believe will be another excellent year for NFO. The seasonality of
business in some of our newly acquired companies also negatively impacted
operating margins."
Lipner added, "We were pleased to welcome to the NFO family, late in
the first quarter, Ross-Cooper-Lund (RCL) and MarketMind Technologies which were
acquired in early March, and CF Group which did not officially join NFO until
early April. Each of these companies is outstanding in its respective field of
specialization: RCL in strategically based brand research, MarketMind in
continuous information tracking and CF for its leading market position in
Canada. These companies are performing well and should deliver substantial
strategic and financial advantages in the periods ahead."
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Lipner concluded, "We are aggressively pursuing our expanded business
development strategy. We look forward to sharing with you the many exciting
developments that will continue to drive NFO's future growth, as we strive to
become the worldwide leader in the marketing information business."
NFO Worldwide, Inc., is a leading provider of custom and syndicated
marketing information to America's largest companies as well as the
international business community. Through its pre-recruited consumer panel and
other specialized databases, NFO offers access to more than 575,000 North
American households (over 1.5 million people) and, through a joint venture, to
over 100,000 European households. The Company provides its services to over
2,300 clients in key market segments such as packaged goods and foods,
healthcare, financial services, hi- tech/telecommunications and travel &
leisure. NFO operates in 24 countries and has more than 6,500 full and part-time
employees.
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NFO WORLDWIDE, INC.
Financial Summary
(In thousands, except per share amounts)
Three Months
Ended March 31
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1998 1997
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Revenues $50,243 $42,020
Cost of Revenues 22,281 19,116
Selling, General and 20,984 16,779
Administrative Expenses
Depreciation and Amortization 2,055 1,378
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Operating Income 4,923 4,747
Interest Expense, Net 427 9
Equity Interest in Net Loss
of Affiliated Companies and
Other Expenses 173 67
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Income Before Income Taxes 4,323 4,671
and Minority Interest
Provision For Income Taxes 1,665 1,901
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Net Income Before Minority
Interests 2,658 2,770
Minority Interests 177 419
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Net Income $ 2,481 $ 2,351
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Earnings Per Share(1)
Basic $ .12 $ .12
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Diluted $ .12 $ .11
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Average Shares Outstanding(1)
Basic 20,791 20,075
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Diluted 21,514 20,687
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(1) For comparability, the earnings per share and share data reflect the
three-for-two stock split effected October 15, 1997.
Statements in this press release relating to matters that are not historical
facts are forward-looking statements. Such forward-looking statements are based
on the Company's current forecasts and actual results may differ materially. To
understand the risks which may affect the Company's future performance, please
refer to Part I of NFO's 1997 Annual Report on Form 10-K and the "Risk Factors"
section in the Company's Form 10-K filed March 30, 1998.
