Valassis Posts Revenue Decline, Reduces It 2011 Outlook
• Free-standing Inserts (FSI): Revenues for the third quarter of 2011 were $73.5 million, a decrease of 17.6 percent compared to the prior year quarter due to the aforementioned reduction in CPG programs. Industry volume decreased by approximately 10 percent. Segment profit for the quarter was a loss of $0.8 million, a decrease of 116.3 percent compared to the prior year quarter.
• International, Digital Media & Services (IDMS): Revenues for the third quarter of 2011 were $47.5 million, an increase of 10.2 percent compared to the prior year quarter. Segment revenue results were driven by strong growth in our coupon clearing business despite lower than expected revenue in our new business initiatives. Segment profit for the quarter was $3.2 million, a decrease of 28.9 percent compared to the prior year quarter. Segment profit results were negatively impacted by the aforementioned reduction in CPG programs, but partially offset by a substantial increase in profitability in our coupon clearing and analytics business, NCH Marketing Services, Inc.
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(TM) 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, Michigan 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.