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Valassis Reports Revenue Declines for Fourth Quarter, Full Year

February 16, 2012
LIVONIA, MI—Feb. 16, 2012—Valassis announced financial results for the fourth quarter and full year ended Dec. 31, 2011:
  • Fourth-quarter 2011 revenues were $595.3 million, a decrease of 5.7 percent from $631.2 million in the prior-year quarter. Full-year 2011 revenues were $2.24 billion, a decrease of 4.2 percent from $2.33 billion in full-year 2010. These decreases in revenues were due primarily to the previously announced shortfall in Run-of-Press (ROP) revenues within the Neighborhood Targeted segment and reduced spending by consumer packaged goods (CPG) clients across our various business segments.
  • Fourth-quarter 2011 net earnings were $34.3 million, an increase of 38.2 percent from $24.8 million in the prior year quarter. Fourth-quarter 2011 net earnings were negatively impacted by charges in an aggregate amount of $14.0 million ($8.5 million, net of tax), primarily related to the restructuring of certain non-core businesses and the associated costs including write-offs of impaired assets, as well as the early termination of leases and severance costs.
  • Full-year 2011 net earnings were $113.4 million and full-year 2010 net earnings were $385.4 million. Adjusted net earnings were $133.5 million, which excludes debt refinancing costs, net of tax, of $11.6 million and the charges described above, net of tax, of $8.5 million. Full-year 2010 adjusted net earnings* were $98.7 million, which excludes debt refinancing costs of $14.7 million, net of tax, and litigation settlement proceeds, net of tax and related payments, of $301.4 million.
  • Fourth-quarter 2011 adjusted EBITDA was $91.3 million, an increase of 12 percent from $81.5 million in the prior year quarter. Full-year 2011 adjusted EBITDA was $316.6 million, a decrease of 0.6 percent from $318.6 million in 2010.

“Our fourth quarter adjusted EBITDA of $91.3 million is a single-quarter record for our company, which was driven by exceptional performance of our Shared Mail and NCH businesses. In 2012, we expect these two businesses to continue to generate positive results allowing us to invest in our new initiatives,” said Rob Mason, Valassis President and CEO.

Business Segment Discussion

Shared Mail: Revenues for the fourth quarter of 2011 were $360.4 million, an increase of 5.4 percent compared to the prior year quarter. Segment profit for the quarter was $55.9 million, an increase of 23.4 percent compared to the prior year quarter. This improvement in segment results was driven primarily by an increase in pieces per package as well as incremental print revenue.

Full-year 2011 revenues were $1,350.8 million, an increase of 3.3 percent compared to full-year 2010. Full-year 2011 segment profit was $191.9 million, an increase of 22.4 percent compared to full-year 2010. Full-year 2011 segment results were driven primarily by an increase in pieces per package and a decrease in SG&A costs.
 

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