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FOR IMMEDIATE RELEASE
Valassis Announces Results for the Second Quarter Ended June 30, 2013
LIVONIA, Mich., July 25, 2013: Valassis (NYSE: VCI) today announced financial results for the second quarter ended June 30, 2013. Second-quarter 2013 revenues were $495.9 million, a decrease of 8.2% from $540.2 million in the prior year quarter. This decrease was due primarily to an anticipated decline in revenues in the Neighborhood Targeted segment resulting from the change in certain client contracts to a fee-based media placement model, as well as the discontinuance of the sampling and solo direct mail products. Without the effect of these changes, second-quarter 2013 adjusted revenues* increased 1.2%.
Second-quarter 2013 net earnings were $26.8 million, which included $0.9 million net of tax, of restructuring costs, an increase of 23.5% from $21.7 million in the prior year quarter, which included $10.7 million net of tax, of restructuring costs and asset impairments resulting from the exit of the newspaper polybag advertising and sampling and solo direct mail businesses and other non-recurring charges. Excluding these restructuring costs, asset impairments and other non-recurring charges, second-quarter 2013 adjusted net earnings* were $27.7 million and second-quarter 2012 adjusted net earnings* were $32.4 million.
Second-quarter 2013 diluted earnings per share (EPS) was $0.68, which included the negative impact of the aforementioned restructuring costs of $0.02, an increase of 33.3% from $0.51 in the prior year quarter, which included the negative impact of the aforementioned restructuring costs, asset impairments and other non-recurring charges of $0.25. Excluding these charges, second-quarter 2013 adjusted diluted EPS* was $0.70 and second-quarter 2012 adjusted diluted EPS* was $0.76. Second-quarter 2013 adjusted EBITDA* was $66.2 million, a decrease of 13.8% from $76.8 million in the prior year quarter.
Despite a challenging first half, we remain committed and focused on improving our execution, said Rob Mason, Valassis President and Chief Executive Officer. Based on our back-half plan and current forecast, I believe we are on the right path to achieve our full-year 2013 guidance.
Some additional highlights include:
Selling, General and Administrative (SG&A) Costs: Second-quarter 2013 SG&A costs were $77.7 million (which included $0.9 million in restructuring costs), compared to the prior year quarter SG&A costs of $83.5 million (which included $6.0 million in restructuring and other non-recurring costs).
Capital Expenditures: Capital expenditures for second-quarter 2013 were $7.1 million.
Return of Capital: During second-quarter 2013, we returned approximately $44.2 million to shareholders through a combination of stock repurchases and the payment of a cash dividend. Under our stock repurchase program, we repurchased $32.2 million or 1.3 million shares of our common stock, at an average price of $25.53 per share. We paid a cash dividend of $0.31 per share of common stock, for a total of approximately $12.0 million.
We reduced total debt by $18.8 million during second-quarter 2013 (including a voluntary payment of $15.0 million), and we ended the quarter with net debt (total debt less cash) of $476.4 million.
At June 30, 2013, we had $88.6 million in cash.
Based on our plan and current outlook, we reiterate full-year 2013 guidance as follows:
diluted earnings per share (EPS) of between $3.05 and $3.20,
adjusted EBITDA* of between $290.0 million and $300.0 million, and
capital expenditures of approximately $25 million.
The following information was filed by Valassis Communications Inc (VCI) on Thursday, July 25, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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