Valassis Reports Decreases in Revenue and Adjusted EBITDA

LIVONIA, MI—April 26, 2012—Valassis announced financial results for the first quarter ended March 31, 2012. Its revenues were $518.6 million, a decrease of 5.2 percent from $547 million in the prior year quarter. This decrease in revenues was due primarily to reduced spending by consumer packaged goods (CPG) clients across our various business segments and the absence of custom co-op programs within our Free-standing Inserts (FSI) segment.

First-quarter 2012 net earnings were $26.4 million, an increase of 23.4 percent from $21.4 million in the prior-year quarter, which included a loss on extinguishment of debt, net of tax, of $8.2 million. Excluding this charge, first-quarter 2011 adjusted net earnings* were $29.6 million.

Adjusted EBITDA was $67.0 million for the quarter, a decrease of 10.1 percent from $74.5 million in the prior year quarter.

“We continue to face headwinds associated with the pullback in CPG spending,” said Rob Mason, Valassis president and CEO. “While I certainly would have preferred a stronger start to the year, I remain very confident in our ability to execute and ultimately deliver our 2012 guidance.”

Some additional highlights include:

Selling, General and Administrative (SG&A) Costs—First-quarter 2012 SG&A costs were $77.6 million (which included $2.3 million in non-cash stock-based compensation expense), down slightly compared to the prior year quarter SG&A costs of $78.4 million (which included $1.9 million in non-cash stock-based compensation expense).

Capital Expenditures—Capital expenditures for first-quarter 2012 were $9.3 million.

Stock Repurchases—During first-quarter 2012, we repurchased $1.4 million, or 59,122 shares, of our common stock at an average price of $23.10 per share under our stock repurchase program.

Outlook
Based on the company’s plan, current outlook and the assumptions specified in our Dec. 13, 2011 earnings guidance press release, we reiterate full-year 2012 guidance as follows:

  • Diluted earnings per share (EPS) of $3.07;
  • Diluted cash EPS* of $3.97; and
  • Capital expenditures of approximately $32 million.


Business Segment Discussion

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