Vertis Inc. Announces First Quarter Earnings, All About Debts

	All About Debts	Search


	Consolidation Debt Consolidation Debt Loan Consolidate Debt Debt Management Bad Consolidation Credit Debt Card Credit Debt Debt Solution Debt Reduction Debt Relief Consolidation Debt Program	consumer counseling debt consolidation counseling best consolidation debt counselor debt best company consolidation consolidation debt lending debt equity ratio business consolidation debt out of debt card credit debt help advice consolidation debt debt eliminate debt services card consolidation credit debt debt help

Directory

Links

Create the future you want! Learn to make money online. Visit our website and start today! www.exclusivebizopps.com

Vertis Inc. Announces First Quarter Earnings

BALTIMORE--(BUSINESS WIRE)--April 26, 2004--Vertis Inc. ("Vertis" or the "company"), a leading provider of targeted advertising, media, and marketing services, today announced results for the quarter ended March 31, 2004.
For the three months ended March 31, 2004, net sales were $387.5 million, $16.3 million or 4.4% above the first quarter of 2003. Earnings before interest, taxes, depreciation, and amortization ("EBITDA") amounted to $40.8 million in the three months ended March 31, 2004, a decrease of $2.4 million, or 5.6% versus the first quarter of 2003. In the first quarter of 2003, the Company received a $10.1 million recovery from a settlement to a legal proceeding. Without that recovery the first quarter 2003 EBITDA would have been $33.1 million and the first quarter 2004 EBITDA growth would have been 23.3%.

Donald E. Roland, chairman, president, and chief executive officer, stated, "The year-over-year growth is indicative of the overall positive performance of our business while the reorganization of our sales teams in the fourth quarter of 2003 is enabling Vertis to better meet our customers' targeted advertising needs. We continue our focus on new growth opportunities and are committed to our targeted advertising strategy."

Dean D. Durbin, chief financial officer, commented, "We continue to see signs of improving advertising market conditions as reflected in our volume growth in the first quarter. It is also noteworthy that pricing is stabilizing. Our cost management initiatives continue to provide benefits evidenced by a 160 basis point improvement in EBITDA margin versus 2003 excluding the impact of the legal settlement. On the same basis we improved cash flow from operations by over 60% from the first quarter of 2003 and finished the quarter safely within our debt covenant requirements."

Vertis reported a net loss of $11.3 million in the first quarter of 2004 versus a net loss of $5.8 million in the first quarter of 2003. The 2003 net loss includes the $10.1 million benefit from the legal settlement identified above.

Vertis will hold an earnings call on Tuesday, April 27, 2004 at 2 p.m. EST to discuss its first quarter results. The call-in number is 1-866-556-1092 (or 1-773-756-4797 for international callers), and the passcode confirmation is "VERTIS Q1". A recording of the call will be available for review for one week at 1-800-879-3392.

Vertis Inc. and Subsidiaries
Balance Sheet Data

 In thousands ---------------------------------------------------------------------- March 31, Dec. 31, 2004 2003 ---------------------- (Unaudited) Total current assets $254,023 $266,576 Property, plant and equipment, net 392,500 401,820 Goodwill 357,244 353,496 Other long-term assets 123,750 125,606 ---------------------- Total assets 1,127,517 1,147,498 ====================== Total current liabilities (excluding current portion of long-term debt) 306,134 327,109 Long-term debt (including current portion) 1,061,825 1,051,950 Other long-term liabilities 110,963 110,637 ---------------------- Total liabilities 1,478,922 1,489,696 ---------------------- Total stockholder's deficit (351,405) (342,198) ---------------------- Total liabilities and stockholder's deficit $1,127,517 $1,147,498 ====================== Vertis Inc. and Subsidiaries Consolidated Statements of Operations In thousands ---------------------------------------------------------------------- Three months ended March 31, ----------- 2004 2003 -------------------- (Unaudited) Net sales $387,486 $371,215 -------------------- Operating expenses: Costs of production 302,375 290,206 Selling, general and administrative 42,991 46,926 Restructuring charges 862 Depreciation and amortization of intangibles 19,069 21,404 -------------------- 365,297 358,536 -------------------- Operating income 22,189 12,679 -------------------- Other expenses (income): Interest expense, net 32,717 29,753 Other, net 502 (9,112) -------------------- 33,219 20,641 -------------------- Loss before income tax expense (benefit) (11,030) (7,962) Income tax expense (benefit) 223 (2,117) -------------------- Net loss $(11,253) $(5,845) ==================== Vertis Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows In thousands ---------------------------------------------------------------------- Three months ended March 31, --------------- 2004 2003 --------------- (Unaudited) Net cash provided by operating activities $18,476 $21,424 Net cash used in investing activities (9,079)(11,235) Net cash used in financing activities (3,196) (4,888) Effect of exchange rate changes on cash 353 120 ------------------- Net increase in cash and cash equivalents 6,554 5,421 Cash and cash equivalents at beginning of quarter 2,083 5,735 ------------------- Cash and cash equivalents at end of quarter $8,637 $11,156 =================== Vertis Inc. and Subsidiaries Rollforward of Long-term Debt (Unaudited) In thousands ---------------------------------------------------------------------- Long-term debt as of December 31, 2003 $1,051,950 Revolver activity (net borrowing) 7,016 Repayments of long-term debt (51) ----------- Total increase in long-term debt 6,965 Accretion of discount 992 Effect of foreign exchange rate fluctuation 1,918 -------- Total change in long-term debt 9,875 ----------- Long-term debt as of March 31, 2004 $1,061,825 ===========

EBITDA represents the sum of net income (loss), net interest expense, income taxes, depreciation and amortization of intangible assets. EBITDA is presented below to provide additional information regarding our performance and because it is a measure by which we gauge our profitability. EBITDA is not a measure of financial performance in accordance with accounting principles generally accepted in the United States of America ("GAAP"). You should not consider it an alternative to net income as a measure of operating performance. Our calculation of EBITDA may be different from the calculation used by other companies and therefore comparability may be limited. The most comparable measure to EBITDA in accordance with GAAP is net income (loss). The following table is a reconciliation of EBITDA to net loss:

 Three months ended March 31, ------------------- (in thousands) 2004 2003 ------------------- (Unaudited) Net loss $(11,253)$(5,845) Interest expense, net 32,717 29,753 Income tax expense (benefit) 223 (2,117) Depreciation and amortization of intangibles 19,069 21,404 ------------------- EBITDA $40,756 $43,195 ===================

About Vertis

Vertis is a leading provider of targeted advertising, media, and marketing services that drive consumers to marketers more effectively. Its comprehensive products and services range from consumer research, audience targeting, creative services, and workflow management to targeted advertising inserts, direct mail, interactive marketing, packaging solutions, and digital one-to-one marketing and fulfillment. With headquarters in Baltimore and with facilities throughout the U.S. and the U.K., Vertis combines best-in-class technology, creative resources and innovative production to serve the targeted marketing needs of companies worldwide.

To learn more about Vertis, visit www.vertisinc.com.

This release and the conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In the call, the words "believes, "anticipates, "expects, "estimates, "plans, "intends" and similar expressions are intended to identify forward-looking statements. All forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from projected results. Factors that may cause these differences include fluctuations in the cost of raw materials we use, changes in the advertising, marketing and information services markets, the financial condition of our customers, actions by our competitors, changes in the legal or regulatory environment, general economic and business conditions in the U.S. and other countries, and changes in interest and foreign currency exchange rates.

Consequently, you should consider any such forward-looking statements only as our current plans, estimates and beliefs. Even if those plans, estimates or beliefs change because of future events or circumstances, we decline any obligation to publicly update or revise any such forward-looking statements.

Contacts

Vertis, Baltimore
Dean D. Durbin, 410-361-8367
or
Stephen E. Tremblay, 410-361-8352
or
Formula
Michelle Metter or Donovan Roche, 619-234-0345

[ Comment, Edit or Article Submission ]