Valassis Communications Inc. (VCI, Financial) filed Quarterly Report for the period ended 2011-09-30.
Valassis Communications Inc. has a market cap of $973.7 million; its shares were traded at around $20.67 with a P/E ratio of 9 and P/S ratio of 0.4.
Shared Mail revenues were $330.5 million and $326.1 million for the three months ended September 30, 2011 and 2010, respectively, an increase of 1.3%, and $990.3 million and $965.3 million for the nine months ended September 30, 2011 and 2010, respectively, an increase of 2.6%. For the three months ended September 30, 2011, the growth in revenues was due to price increases offset by lighter weight inserts and volume declines. Shared Mail pieces decreased 1.1% to 9.0 billion pieces for the three months ended September 30, 2011 as compared to the three months ended September 30, 2010. For the nine months ended September 30, 2011, the growth in revenues was attributable to volume gains in inserts and price increases. Shared Mail pieces increased 1.9 % to 27.3 billion pieces for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010.
Segment profit was $46.2 million and $39.3 million for the three months ended September 30, 2011 and 2010, respectively, an increase of 17.6%, and $136.0 million and $111.5 million for the nine months ended September 30, 2011 and 2010, respectively, an increase of 22.0%. Segment profit as a percentage of revenues was 14.0% and 12.1% for the three months ended September 30, 2011 and 2010, respectively, and 13.7% and 11.6% for the nine months ended September 30, 2011 and 2010, respectively. The increases in segment profit and segment profit as a percentage of revenues were the result of the growth in revenues, gross margin improvement and decreased SG&A costs.
FSI revenues were $73.5 million and $89.2 million for the three months ended September 30, 2011 and 2010, respectively, a decrease of 17.6%, and $251.9 million and $281.3 million for the nine months ended September 30, 2011 and 2010, respectively, a decrease of 10.5%. The FSI segment experienced a loss of $0.8 million for the three months ended September 30, 2011 and profit of $4.9 million for the three months ended September 30, 2010, and profit of $14.9 million and $24.6 million for the nine months ended September 30, 2011 and 2010, respectively, a decrease of 39.4%. These declines in revenues and segment profit reflect reduced industry volumes resulting from the reduction in CPG programs, particularly during the three months ended September 30, 2011, and decreased market share for the nine months ended September 30, 2011.
International, Digital Media & Services revenues were $47.5 million and $43.1 million for the three months ended September 30, 2011 and 2010, respectively, an increase of 10.2%, and $142.6 million and $125.7 million for the nine months ended September 30, 2011 and 2010, respectively, an increase of 13.4%. International, Digital Media & Services segment profit was $3.2 million and $4.5 million for the three months ended September 30, 2011 and 2010, respectively, a decrease of 28.9%, and $15.0 million and $13.1 million for the nine months ended September 30, 2011 and 2010, respectively, an increase of 14.5%. Revenues for the three and nine months ended September 30, 2011 benefitted from strong performance by NCH, which was driven by increased coupon redemptions, and continued growth in our digital business, which were offset, in part, by the reduction in CPG programs. In addition, our in-store business contributed to increased revenues for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010. Although revenues related to our new digital and in-store initiatives have increased, the growth has been slower than previously anticipated. Segment profit for the three and nine months ended September 30, 2011 was negatively impacted by the reduction in CPG programs and continued investments in our digital business and the expansion of our in-store network.
Read the The complete Report
Valassis Communications Inc. has a market cap of $973.7 million; its shares were traded at around $20.67 with a P/E ratio of 9 and P/S ratio of 0.4.
Highlight of Business Operations:
Cost of sales was $395.7 million and $421.5 million for the three months ended September 30, 2011 and 2010, respectively. Gross profit as a percentage of revenues for the three months ended September 30, 2011 was 25.1%, compared to 26.4% for the three months ended September 30, 2010. Cost of sales was $1,222.3 million and $1,248.7 million for the nine months ended September 30, 2011 and 2010, respectively. Gross profit as a percentage of revenues for the nine months ended September 30, 2011 was 25.5%, compared to 26.7% for the nine months ended September 30, 2010. These decreases in gross profit as a percentage of revenues resulted primarily from the declines in revenues discussed above and cost increases in paper and energy.Shared Mail revenues were $330.5 million and $326.1 million for the three months ended September 30, 2011 and 2010, respectively, an increase of 1.3%, and $990.3 million and $965.3 million for the nine months ended September 30, 2011 and 2010, respectively, an increase of 2.6%. For the three months ended September 30, 2011, the growth in revenues was due to price increases offset by lighter weight inserts and volume declines. Shared Mail pieces decreased 1.1% to 9.0 billion pieces for the three months ended September 30, 2011 as compared to the three months ended September 30, 2010. For the nine months ended September 30, 2011, the growth in revenues was attributable to volume gains in inserts and price increases. Shared Mail pieces increased 1.9 % to 27.3 billion pieces for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010.
Segment profit was $46.2 million and $39.3 million for the three months ended September 30, 2011 and 2010, respectively, an increase of 17.6%, and $136.0 million and $111.5 million for the nine months ended September 30, 2011 and 2010, respectively, an increase of 22.0%. Segment profit as a percentage of revenues was 14.0% and 12.1% for the three months ended September 30, 2011 and 2010, respectively, and 13.7% and 11.6% for the nine months ended September 30, 2011 and 2010, respectively. The increases in segment profit and segment profit as a percentage of revenues were the result of the growth in revenues, gross margin improvement and decreased SG&A costs.
FSI revenues were $73.5 million and $89.2 million for the three months ended September 30, 2011 and 2010, respectively, a decrease of 17.6%, and $251.9 million and $281.3 million for the nine months ended September 30, 2011 and 2010, respectively, a decrease of 10.5%. The FSI segment experienced a loss of $0.8 million for the three months ended September 30, 2011 and profit of $4.9 million for the three months ended September 30, 2010, and profit of $14.9 million and $24.6 million for the nine months ended September 30, 2011 and 2010, respectively, a decrease of 39.4%. These declines in revenues and segment profit reflect reduced industry volumes resulting from the reduction in CPG programs, particularly during the three months ended September 30, 2011, and decreased market share for the nine months ended September 30, 2011.
International, Digital Media & Services revenues were $47.5 million and $43.1 million for the three months ended September 30, 2011 and 2010, respectively, an increase of 10.2%, and $142.6 million and $125.7 million for the nine months ended September 30, 2011 and 2010, respectively, an increase of 13.4%. International, Digital Media & Services segment profit was $3.2 million and $4.5 million for the three months ended September 30, 2011 and 2010, respectively, a decrease of 28.9%, and $15.0 million and $13.1 million for the nine months ended September 30, 2011 and 2010, respectively, an increase of 14.5%. Revenues for the three and nine months ended September 30, 2011 benefitted from strong performance by NCH, which was driven by increased coupon redemptions, and continued growth in our digital business, which were offset, in part, by the reduction in CPG programs. In addition, our in-store business contributed to increased revenues for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010. Although revenues related to our new digital and in-store initiatives have increased, the growth has been slower than previously anticipated. Segment profit for the three and nine months ended September 30, 2011 was negatively impacted by the reduction in CPG programs and continued investments in our digital business and the expansion of our in-store network.
Read the The complete Report
