Catalina Marketing Files Audited Financial Statements

Catalina Marketing Files Audited Financial Statements 


ST. PETERSBURG, Fla., May 17  /PRNewswire-FirstCall/ -- Catalina Marketing
Corporation  today reported that it has completed the restatement of its
financial statements and has filed with the Securities and Exchange Commission
(SEC) its Annual Report on Form 10-K for the fiscal year ended March 31, 2003,
which includes audited financial statements for fiscal years 2003, 2002 and
2001.  These financial statements reflect adjustments to previously announced
unaudited results for fiscal year 2003, and include restated financial
statements for fiscal years 2002 and 2001.

"The Audit Committee has conducted a thorough review of all issues related to
the fiscal years 2001 through 2003," said L. Dick Buell, chief executive
officer.  "The final results confirm that the primary issues were related to
the timing of certain revenue recognition, and also include changes relating to
the timing of certain expense items.  In particular, expenses were affected by
the timing of non-cash write-offs of goodwill relating to the loss of value of
certain of our operating units."  The Company reiterated that the restatements
did not have an impact on its credit facilities and that it is currently in
compliance with all related financial covenants.

For the three fiscal years ended March 31, 2003, 2002 and 2001, the Company
reported consolidated financial results as follows (in millions, except per
share amounts):

                           Year Ended       Year Ended       Year Ended
                       March 31, 2003   March 31, 2002   March 31, 2001
  Revenues                     $470.7           $442.7           $413.1
  Net Income                    $55.1            $58.6            $47.2
  Earnings per share,
   diluted                      $1.00            $1.03            $0.81



In addition to the adjustments reported in the Company's May 3, 2004 news
release, Catalina has made three additional adjustments to its 2003, 2002 and
2001 results.  Further analysis performed during the preparation of its Annual
Report on Form 10-K identified these additional adjustments, which were
necessary to present the Company's financial statements in accordance with
accounting principles generally accepted in the United States of America (U.S.
GAAP).  The Company has made the following additional adjustments:

  -- An adjustment was recorded by the Company for the proper amortization
     of prior service costs related to the implementation of its
     postretirement healthcare benefit plan.  While the aggregate expense
     related to the implementation of the postretirement healthcare benefits
     will remain unchanged, the adjustment caused these expenses to decrease
     by $1.1 million in fiscal year 2002, and to increase by $0.7 million in
     fiscal year 2003, with the remainder of the expense to be recognized in
     future periods.
  -- An adjustment was made to expense bonus compensation, paid directly by
     the previous owner, at Research Solutions.  This adjustment caused
     selling, general and administrative expenses to increase by $0.7
     million in fiscal year 2002.
  -- During the Company's re-examination of the lease transaction governing
     its corporate headquarters, it determined that the related lease should
     have been accounted for as a capital lease rather than an operating
     lease.  The Company restated its financial statements effective
     beginning fiscal year 2001 to reflect early adoption of FASB
     Interpretation No. 46, "Consolidation of Variable Interest Entities,"
     (FIN 46).  The Company's election to adopt FIN 46 early resulted in a
     $30.5 million increase in property and equipment and a $29.6 million
     increase in long-term debt to reflect the inclusion of the Company's
     corporate headquarters and the related liability on the Company's
     balance sheet as of the third quarter of the fiscal year ended March
     31, 2001.  Effective with the adoption of FIN 46, depreciation expense
     increased approximately $1.5 million annually, related to the
     depreciation of the building and related improvements.  Had the Company
     not chosen to adopt FIN No. 46 early, the restatement would have
     required conversion of the lease obligation from operating to capital.



Net of tax, the impact of these adjustments compared with the amounts reported
on May 3, 2004 was a decrease of $1.3 million in net income or $0.02 per
diluted share in fiscal 2003, a decrease of $0.6 million in net income or $0.01
per diluted share in fiscal 2002, and a decrease of $0.3 million in net income
or $0.01 per diluted share in fiscal 2001.

Details related to the adjustments captured in the financial results reported
for fiscal year 2003 and the restated financial results for fiscal years 2002
and 2001 are included in the Company's Annual Report on Form 10-K. The Company
has announced that it will host a webcast on Tuesday, May 18, 2004 at 10:00
a.m. EDT to discuss the adjustments and financial results that it reported. 
The webcast may be accessed at
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=POS&script=400 .

It should be noted that the financial results of the Company's fiscal year
ended March 31, 2004 have not been announced.  The financial results for the
periods ended March 31, 2003, and the Company's financial condition as of that
date, are not reflective of the Company's financial results for the year ended,
and financial condition as of, March 31, 2004.  The Company intends to publish
those results as soon as practicable.  Until such time as those results are
published, investors should be aware that the publicly available financial
information regarding the Company is not current.

Based in St. Petersburg, FL., Catalina Marketing Corporation
(http://www.catalinamarketing.com/) was founded 20 years ago based on the
premise that targeting communications based on actual purchase behavior would
generate more effective consumer response.  Today, Catalina Marketing combines
unparalleled insight into consumer behavior with dynamic consumer access.  This
combination of insight and access provides marketers with the ability to
execute behavior- based marketing programs, ensuring that the right consumer
receives the right message at exactly the right time.  Catalina Marketing
offers an array of behavior-based promotional messaging, loyalty programs and
direct-to-patient information.  Personally identifiable data that may be
collected from the Company's targeted marketing programs, as well as its
research programs, are never sold or given to any outside party without the
express permission of the consumer.

Certain statements in the preceding paragraphs are forward looking, and actual
results may differ materially.  Statements not based on historic facts involve
risks and uncertainties, including, but not limited to, the changing market for
promotional activities, especially as it relates to policies and programs of
packaged goods manufacturers for the issuance of certain product coupons, the
effect of economic and competitive conditions and seasonal variations, actual
promotional activities and programs with the Company's customers, the pace of
installation of the Company's store network, the success of new services and
businesses and the pace of their implementation, the Company's ability to
maintain favorable client relationships, the timing of completion of the
Company's audits, the timing of the completion of the Company's future SEC
filings, the outcome and impact of the ongoing SEC investigation, and the
outcome and impact of the pending shareholder class action. 

DATASOURCE: Catalina Marketing Corporation



CONTACT:  Investors, Christopher W. Wolf, Executive Vice President and

Chief Financial Officer, [phone], or Joanne Freiberger, Vice

President, Finance, [phone], or Media, Susan Gear, Executive Director,

Marketing, [phone], all of Catalina Marketing Corporation



Web site:  http://www.catalinamarketing.com/ 

Copyright