POS Catalina Marketing Corp

Catalina Marketing Reports Financial Results for the First Quarter of Fiscal 2006 ST. PETERSBURG, Fla., July 28 /PRNewswire-FirstCall/ -- Catalina Marketing Corporation (NYSE:POS) today reported financial results for its first quarter ended June 30, 2005. For the three months ended June 30, 2005, consolidated revenues were $91.9 million, compared with revenues of $95.4 million in the comparable period of fiscal year 2005. Consolidated net income for the first quarter was $13.7 million, or $0.27 per diluted share, compared with net income of $10.9 million, or $0.21 per diluted share, in the first quarter of fiscal year 2005. First quarter results in fiscal year 2005 included $2.4 million in losses from discontinued operations due principally to operating losses from the divested non-core businesses. The company reported consolidated income from continuing operations for the quarter ended June 30, 2005 of $13.7 million, or $0.27 per diluted share, compared with $13.4 million, or $0.26 per diluted share, for the quarter ended June 30, 2004. "While first quarter earnings per share were in line with expectations, we recognize the need to grow our top line and intend to focus on this objective with the launch of new services and entry into new channels," said Dick Buell, chief executive officer of Catalina Marketing. "Catalina Health Resource and International both experienced growth in revenues for the quarter; however, Catalina Marketing Services revenues declined due to a challenging first quarter. We remain solidly committed to building future revenue and earnings growth, and we are seeing important indications of acceptance of many of our new products and services." Summary of Segment Results Three Months Ended Three Months Ended June 30, 2005 June 30, 2004 (In thousands) Revenues Net Income Revenues Net Income Catalina Marketing Services $57,689 $14,796 $63,402 $16,133 Catalina Health Resource 18,530 2,809 17,866 1,074 International 15,628 729 14,246 801 Corp / Eliminations 7 (4,671) (112) (4,645) From Continuing Operations - GAAP $91,854 $13,663 $95,402 $13,363 Discontinued Operations $ -- $ -- $ -- $(2,437) Consolidated GAAP $91,854 $13,663 $95,402 $10,926 Stock Repurchases During the first quarter, the company repurchased 1,693,300 shares of its common stock for a total of $41.8 million, at an average price of $24.71 per share. The company currently has authorization to repurchase an additional $14.0 million of common stock under the September 2004 Board of Directors' authorization. Webcast Scheduled The company will host a webcast on Thursday, July 28, 2005 at 10:00 a.m. EDT to discuss its financial results for its fiscal year 2006 first quarter. The webcast may be accessed at http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=POS&script=1000 and will be available for replay from Thursday, July 28, 2005 through Thursday, August 25, 2005. Catalina Marketing Corporation Selected Operating Data (in thousands, except per share amounts) Periods Ended June 30 Three Months 2005 2004 Revenues $91,854 $95,402 Direct Operating Expenses 30,685 33,788 Selling, General and Administrative 29,801 28,823 Depreciation and Amortization 9,505 11,554 Income from Operations 21,863 21,237 Other Income (Expense) 174 (392) Provision for Income Taxes 8,374 7,482 Income from Continuing Operations 13,663 13,363 Income (Loss) from Discontinued Operations -- (2,437) Net Income (Loss) $13,663 $10,926 Earnings Per Share, Basic: Earnings Per Share from Continuing Operations $ 0.27 $ 0.26 Income (Loss) from Discontinued Operations $ -- $ (0.05) Net Income (Loss) Per Common Share $ 0.27 $ 0.21 Weighted Average Shares Outstanding 50,550 52,227 Earnings Per Share, Diluted: Earnings Per Share from Continuing Operations $ 0.27 $ 0.26 Income (Loss) from Discontinued Operations $ -- $ (0.05) Net Income (Loss) Per Common Share $ 0.27 $ 0.21 Weighted Average Shares Outstanding 50,865 52,245 Catalina Marketing Corporation Selected Other Data (in thousands, except store data) June 30 June 30 2005 2004 Selected Balance Sheet and Cash Flow Data (in thousands): Cash $ 46,006 $ 71,467 Debt $ 32,951 $ 66,771 Stockholders' Equity $168,687 $194,668 Cash Flows from Operating Activities Quarter $ 14,187 $ 1,866 Capital Expenditures Quarter $ 8,483 $ 2,141 Catalina Marketing Services: Number of Stores at Quarter End 17,581 17,607 Net Stores (Deinstalled) Installed During Quarter (28) 3 Promotions Printed During Quarter (in millions) 713 738 Weekly Shopper Reach at Quarter End (in millions) 230 220 Catalina Health Resource: Number of Stores at Quarter End 12,451 12,009 Net Stores Installed (Deinstalled) During Quarter 28 80 Catalina Marketing International: Number of Stores at Quarter End 6,003 5,598 Net Stores Installed During Quarter 96 53 Promotions Printed During Quarter (in millions) 209 191 Weekly Shopper Reach at Quarter End (in millions) 58 63 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 and pharmaceutical manufacturers and retailers, government and regulatory statutes, rules, regulations and policies, 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 outcome and impact of an ongoing SEC investigation into certain of the company's prior fiscal years, and the outcome and impact of the pending shareholder class action and derivative lawsuits. http://www.corporate-ir.net/ireye/ir_site.zhtml?ticketr=POS&script=1000DATASOURCE: Catalina Marketing Corporation CONTACT: Investors, Rick Frier, Executive Vice President and Chief Financial Officer, +1-727-579-5147, or Joanne Freiberger, Vice President, Finance, +1-727-579-5116, or Media, Crystal Coovert, Executive Director, Corporate Communications, +1-727-579-5129, all of Catalina Marketing Corporation Web site: http://www.catalinamarketing.com/

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