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Valassis Reports Revenue Declines for Fourth Quarter, Full Year

February 16, 2012

Neighborhood Targeted: Revenues for the fourth quarter of 2011 were $118.9 million, a decrease of 20.7 percent compared to the prior year quarter. Segment profit for the quarter was $4.6 million, an increase of 360 percent compared to the prior year quarter, which included a $4.5 million charge to bad debt.

Full-year 2011 revenues were $374.7 million, a decrease of 21.9 percent compared to full-year 2010. Full-year 2011 segment profit was $7.7 million, a decrease of 62.6 percent compared to full-year 2010. Segment results for the full year were negatively impacted by the continued margin pressure in this segment and the previously announced revenue shortfall in ROP.

Free-standing Inserts (FSI): Revenues for the fourth quarter of 2011 were $64.1 million, a decrease of 25.7 percent compared to the prior year quarter due primarily to the absence of custom co-op business and the decline in industry volume. Segment profit for the quarter was a loss of $0.8 million compared to the prior year quarter profit of $0.3 million.

Full-year 2011 revenues were $316.0 million, a decrease of 14.0 percent compared to the prior year. Segment profit for the full-year 2011 was$14.1 million, a decrease of 43.4 percent compared to the prior year.

Segment results for the quarter and full year were negatively impacted by the aforementioned absence of custom co-op business and industry volume declines.

International, Digital Media & Services (IDMS): Revenues for the fourth quarter of 2011 were $51.9 million, a decrease of 2.3 percent compared to the prior year quarter.Segment profit for the quarter was $9.3 million a decrease of 3.1 percent compared to the prior year quarter.

Full-year 2011 revenues were $194.5 million, an increase of 8.8 percent compared to the prior year. NCH Marketing Services, Inc., our coupon clearing and analytics business, and our Digital business were the key drivers of growth in this segment. Full-year 2011 segment profit was $24.3 million, an increase of 7.0 percent compared to the prior year.

The improvement in full-year 2011 segment profit results was primarily driven by the positive effect of coupon redemptions on our coupon clearing and analytics business and was partially offset by pressure on the In-Store business resulting from the reduction in consumer packaged goods spend and our continued investment in new businesses.

About Valassis

Valassis is one of the nation's leading media and marketing services companies, offering unparalleled reach and scale to more than 15,000 advertisers. Its RedPlum™ media portfolio delivers value on a weekly basis to over 100 million shoppers across a multi-media platform – in-home, in-store and in-motion. Through its digital offering, including redplum.com and save.com, consumers can find compelling national and local deals online. Headquartered in Livonia, MI, with approximately 7,000 associates in 28 states and eight countries, Valassis is widely recognized for its associate and corporate citizenship programs, including its America's Looking for Its Missing Children program. Valassis companies include Valassis Direct Mail, Inc., Valassis Canada, Promotion Watch, Valassis Relationship Marketing Systems, LLC and NCH Marketing Services, Inc.

Source: Valassis.

 

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