Valassis generated fourth quarter revenue of $605 million, down 3.4% from the $626.3 million it pulled in a year ago. The marketing services firm reported net earnings of $24 million, compared with a net loss of $222 million a year ago.
The results from a year ago included a $245.7 million impairment charge. Absent this charge, the company would have recorded $1.4 million in net earnings.
The company’s revenue for all of 2009 was $2.24 billion, down 5.8% from the $2.38 billion it racked up in 2008. Net earnings for 2009 were $66.8 million, compared with 2008;s net loss of $209.7 million. The 2008 figure included the impairment charge.
Valassis’s 2009 revenue does not include a $500 million cash payment it received from News America in February of this year. The payment was the result of litigation settlement.
Within its business segments:
Shared mail revenue for the fourth quarter was $335.1 million, flat compared to the prior year quarter. Segment profit for the quarter was $38.4 million, up 68.4% compared to fourth quarter 2008. Full-year shared mail revenue was $1.28 billion, down 6.7% from 2008. Shared mail generated $110.2 million in profit, up 22.8% from a year ago. Valassis attributed the increase in profit to cost management, including package optimization efforts, newspaper alliances and internal expenses reductions.
Neighborhood Targeted Products revenue in the fourth quarter fell 8.3%, to $141.1 million. Within this unit, newspaper inserts revenue was up 25% while run-of-press revenue fell due to softness in the financial vertical. Profits for this unit were up for the fourth quarter, reaching $12.1 million, 10% higher than in fourth-quarter 2008. For the year, this segment’s revenue fell 5.2% to $444.7 million from 2008’s level. Segment profit reflected the revenue decline, dropping 6.4% for the year to $36.3 million.
Free-standing insert revenue dropped 9.1%, to $83.2 million, during the fourth quarter. According to Valassis, this was due to continued pricing declines and one less custom co-op program during the quarter. Segment profit for the quarter was $3.6 million, up 80% compared to the prior year quarter primarily due to an increase of 3.2% in industry volume and reduced costs. Full-year 2009 segment revenue was $361.4 million, down 2.4% from 2008. Full-year 2009 segment profit was $11.5 million, up 538.9% from full-year 2008. Industry units were up 3.9% for full-year 2009.
International, digital media and services revenue for the fourth quarter was $45.6 million, up 3.9% compared to the prior year quarter. Segment profit for the quarter was $7.8 million, up 105.3% compared to the prior year quarter due primarily to record increases in U.S. coupon clearing volume.
According to NCH Marketing Services, Inc. (the company’s coupon-processing and analytics subsidiary), 2009 consumer packaged goods coupon distribution was up 11% and coupon redemption was up 23% compared to the prior year. Full-year 2009 segment revenue was $159 million, down 7.4% from full-year 2008. Segment profit for full-year 2009 was $25 million compared to $600,000 in full-year 2008, which included restructuring charges of $2.5 million.
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