(Direct Newsline)—Valassis posted net earnings of $20.6 million, up 197.3% from $6.9 million in the prior year, primarily because of its acquisition of Advo last March.
The firm reported revenue of $661.5 million for the quarter ended Dec. 31, a 131% surge over revenue of $296.4 million the last year.
“Our exceptional performance in the second half of 2007 reflects the significant improvements we have made in the management of the shared mail business and the realization of cost synergies associated with the Advo acquisition,” said Alan F. Schultz, chairman and CEO, in a statement. “The value of blended media solutions including shared mail is compelling to our clients, and we are aggressively cross-selling to drive sustainable, profitable revenue growth which we expect to begin realizing in the back half of 2008.”
In late 2006, Valassis bought shared mail service Advo for $1.2 billion in cash. As part of the purchase agreement, both companies agreed to dismiss all pending litigation. Earlier that year, Valassis, which had made a takeover bid, later sued Advo in an attempt to stop the deal but later agreed to acquire the firm (Direct Newsline, Sept. 1, 2006).
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