said Alan F. Schultz, Valassis Chairman, President and Chief Executive Officer. for Valassis

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VCI » Topics » said Alan F. Schultz, Valassis Chairman, President and Chief Executive Officer.

This excerpt taken from the VCI 8-K filed Jul 30, 2009.

said Alan F. Schultz, Valassis Chairman, President and Chief Executive Officer. “In addition, we have very high retention within our diverse and stable client base who use our products to generate measurable results."

Some additional financial highlights include:

2009 Profit Maximization Plan (PMP) Continues to be Ahead of Schedule: Second-quarter 2009 selling, general and administrative (SG&A) costs were $86.7 million, which includes $3.7 million in legal costs related to the News America lawsuits, compared to prior year quarter SG&A costs of $96.9 million. This 10.5% reduction was due primarily to cuts in staffing, divested and discontinued businesses and reduced discretionary spending. First-half 2009 SG&A was $172.9 million (including $6.6 million in legal costs), down 10.9% compared to the first half of 2008 SG&A of $194.0 million.

Capital Expenditures: Capital expenditures for the second quarter of 2009 were $6.6 million and are on track to meet our annual target of $15 million to $20 million in 2009.

Liquidity: Second-quarter 2009 cash flow from operations was $83.7 million with a decrease in debt of $23.1 million. As of June 30, 2009, our net debt position was $952.2 million. During the quarter, we completed two “modified Dutch” auctions in which we repurchased and retired $21.6 million of our outstanding term loan B and delayed draw term loans under our senior secured credit facility at an average discount of 7.3% to par, or for an aggregate purchase price of $20.0 million, plus fees. Our cash interest expense for the quarter was $19.0 million compared to $20.3 million for the first quarter.

Outlook

We are updating full-year 2009 guidance based on our current outlook. Given continued success with our PMP and assuming no further economic downturns, we are increasing full-year 2009 adjusted EBITDA* guidance to $245.0 million from $215.0 million.

“We are very pleased with our cost management efforts in the first half which have resulted in significant margin and profit improvement,”

This excerpt taken from the VCI 8-K filed Apr 30, 2009.

said Alan F. Schultz, Valassis Chairman, President and Chief Executive Officer. “While client spending is more constricted than we anticipated, we are on plan to reach our 2009 adjusted EBITDA* guidance. We are particularly pleased with the growth in our Neighborhood Targeted preprint business driven by our new client wins and cross-selling strategy.”

Some additional financial highlights include:

2009 Profit Maximization Plan Ahead of Schedule: First-quarter 2009 selling, general and administrative (SG&A) costs were $86.2 million, which includes $2.9 million in legal costs related to the News America lawsuits and $0.8 million in severance costs, compared to prior year quarter SG&A costs of $97.2 million. This 11.3% reduction was due primarily to cuts in discretionary spending and staffing.

Capital Expenditures: Capital expenditures for the first quarter of 2009 were $2.0 million and are on track to meet our annual target of $15 to $20 million in 2009.

Liquidity: First-quarter 2009 cash flow from operations was $39.7 million with a net decrease in debt of $86.2 million. As we previously disclosed on Jan. 26, 2009, we paid off and cancelled our 6 5/8% Senior Secured Notes that matured on Jan. 15, 2009. No other material debt maturities are scheduled until 2014.

Outlook

It is difficult to predict with precision client advertising budgets due to the prolonged economic downturn. However, based on this quarter’s performance and our current outlook, we are on plan to meet our 2009 adjusted EBITDA* annual guidance of approximately $215.0 million, allowing us to comfortably exceed our debt covenant thresholds throughout 2009. Based on today’s environment, we will no longer provide 2009 revenue guidance.

“We are off to a great start in the implementation of our 2009 Profit Maximization Plan and savings are coming at a faster pace than we anticipated,”

This excerpt taken from the VCI 8-K filed Feb 17, 2009.

said Alan F. Schultz, Valassis Chairman, President and Chief Executive Officer. “A number of our products are well positioned in this recessionary environment, as they deliver value to a growing list of today’s deal-seeking consumers.”

Some additional financial highlights include:

Achieved 2008 Cost Synergies: Total 2008 cost synergies resulting from our acquisition of ADVO, Inc., were $38.4 million compared to our target of $38.0 million.

Reduction of SG&A Costs: Fourth-quarter 2008 SG&A costs were $97.9 million, which includes $2.5 million in legal costs related to the News America lawsuit and $4.2 million in severance costs, compared to the prior year quarter SG&A costs of $107.1 million which included $7.6 million in non-recurring charges. This 8.6% reduction was due primarily to decreases in incentive-based compensation, discretionary spending and staffing.

Reduction of Capital Expenditures: Capital expenditures for the fourth quarter of 2008 were $5.3 million. Full-year 2008 capital expenditures were $24.7 million, well below our full-year 2008 guidance of $35.0 million.

Liquidity: During 2008 we generated $96.3 million in Cash Flow from Operations and had a net decrease in debt of $108.0 million. We subsequently paid off and cancelled our 6 5/8% Senior Secured Notes that matured on Jan. 15, 2009. No other material debt maturities are scheduled until 2014. We announced on Jan. 26, 2009, that we amended our senior secured credit facility to, among other things, permit us to use up to $125 million to repurchase from tendering lenders our outstanding term loans at prices below par through one or more “modified Dutch” auctions during 2009. In addition, we also agreed to voluntarily reduce the availability on our revolving credit portion of the senior secured credit facility from $120 million to $100 million. The amendment also permits us to exclude from the definition of Consolidated Interest Expense swap breakage costs in connection with any repurchases or payments on outstanding term loans.

Pre-Tax, Non-Cash, Impairment Charge: In accordance with SFAS No. 142, “Goodwill and Other Intangible Assets,” we recorded a pre-tax, non-cash, impairment charge of $245.7 million. The charge represents a decrease in the market value of our business and does not affect our cash flow or day-to-day operations. In addition, we recorded a write-down of $4.8 million related to our investment in China.

VCI 4Q08 Earnings

Page 2

Outlook

Management noted that it continues to see declines in client marketing budgets due to adverse economic conditions. Based on current forecasts, we reiterate our guidance announced on Nov. 6, 2008: we assume a mid-single digit decline in revenue in the first half of 2009 and flat to slightly down revenue in the second half of 2009, which should result in 2009 adjusted EBITDA* of approximately $215.0 million and allow us to meet our covenant requirements throughout 2009.

“Our 2009 Profit Maximization Plan is on track to reach its total cost savings goal of $50 to $60 million for 2009,”

EXCERPTS ON THIS PAGE:

8-K	Jul 30, 2009

8-K	Apr 30, 2009

8-K	Feb 17, 2009

Valassis Communications (VCI)

VCI » Topics » said Alan F. Schultz, Valassis Chairman, President and Chief Executive Officer.

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