Valassis Reports Revenue Declines for Fourth Quarter, Full Year

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.

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.

Comments