QUOTE AND NEWS
DailyFinance  Mar 20  Comment 
TORONTO, ONTARIO -- (Marketwired) -- 03/20/14 -- SustainCo Inc. (the "Company" or "SustainCo") (TSX VENTURE: SMS) is pleased to announce that VCI Controls Inc. ("VCI") has been awarded a contract from Defence Construction Canada to provide a...
DailyFinance  Jan 31  Comment 
TORONTO, ONTARIO -- (Marketwired) -- 01/31/14 -- SustainCo Inc. (the "Company" or "SustainCo") (TSX VENTURE: SMS) is pleased to announce that the TSX Venture Exchange (the "Exchange") has conditionally accepted the acquisition of all of the...
DailyFinance  Jan 6  Comment 
Harland Clarke Holdings Corp., a leading provider of best-in-class integrated payment solutions and marketing services, and Valassis (NYSE: VCI), a leader in intelligent media delivery, today announced that Harland Clarke...
DailyFinance  Dec 31  Comment 
The Law Offices of Vincent Wong are investigating potential claims against the Board of Directors of Valassis Communications Inc. (NYSE: VCI) (“VCI”) state law in connection with the sale of the Company to Harland Clarke...
DailyFinance  Dec 24  Comment 
Rigrodsky & Long, P.A.: Do you own shares of Valassis Communications, Inc. (NYSE: VCI)?Did you purchase any of your shares prior to December 18, 2013?Do you think the proposed buyout price is too low?Do you want to discuss your...
DailyFinance  Dec 20  Comment 
Law office of Brodsky & Smith, LLC announces that it is investigating potential claims against the Board of Directors of Valassis Communications, Inc. (“Valassis” or the “Company”) (NYSE:VCI) relating to the proposed...
DailyFinance  Dec 19  Comment 
TORONTO, ONTARIO -- (Marketwired) -- 12/19/13 -- SustainCo Inc. (the "Company" or "SustainCo") (TSX VENTURE: SMS) announces that it has entered into agreements with PriceCo Inc. ("PriceCo") and Tannenberg Management Inc. ("TMI"), the...
DailyFinance  Dec 19  Comment 
Kirby McInerney LLP is investigating potential claims against the Board of Directors of Valassis Communications, Inc. (“Valassis” or the “Company”) (NYSE: VCI) concerning the proposed acquisition of the Company by...
Benzinga  Dec 19  Comment 
Analysts at Bernstein downgraded Shire plc (NASDAQ: SHPG) from “outperform” to “market perform.” The target price for Shire is set to $145. Shire's shares closed at $138.33 yesterday. Analysts at BMO Capital downgraded Valassis...
DailyFinance  Dec 19  Comment 
Juan E. Monteverde, a partner at Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of Valassis Communications Inc. (“Valassis” or the...




 
TOP CONTRIBUTORS

Valassis Communications (NYSE: VCI) provides media and marketing services. Its largest consumer brand name, RedPlum, is a print advertisement that reaches 70 million US households each week. The company derives its revenue from the following four operating segments: shared mail (56% of revenue), neighborhood targeted (marketing products which target specific newspaper zones or neighborhoods and account for 21% of revenues), free standing inserts (16% of revenue), international, digital media and services (7% of revenue).[1] However, commodity prices and Valassis' entrance into the digital media industry can affect the company's revenues.

Business Growth

In FY 2010, net sales increased 4% to $2.33 billion. Net income increased 476.9% to $385.4 million.[2] This growth is attributed to the increase in production of Shared Mail pieces and improvements in Valassis' digital services business.

Trends and Forces

Increased commodity prices negatively impacts VCI's profitability

Because Valassis relies so much on print media, paper is a primary raw material in its businesses. However, the price of lumber and paper fluctuates greatly over periods of time. For example, in 2010, lumber prices increased 80% in 12 months.[3] Such changes are due to changes in demand and production as well as natural or manmade disasters. In turn, increased prices for Valassis' supplies can decrease its profitability. In order to protect against this, the company enters long-term contracts to take advantage of price discounts and prevent price fluctuations.[4]

Valassis' expansion of its digital services contributes to its bottom line

With more than 80% of shoppers participating in grocery and drug frequent shopper programs and research showing that the majority of shoppers are interested in receiving savings directly from the Internet, the coupon industry is going digital. In January 2011, Valassis entered into an agreement with AOL to create one of the largest digital coupon footprints in the US with over 7500 grocery stores. This agreement allows Valassis and AOL to to reach over 127 million users in the frequent shopper program each week across each other's networks. Valassis also expanded its digital portfolio to include email, print-at-home coupons, display ads, and coupon to card/ID features on shopper cards or mobile phones. In turn, secure coupon prints in RedPlum increased 300% from 2009 while coupon to card/ID download volume increased 1000% in the 2nd quarter of 2010 compared to the 1st quarter. In turn, Valassis' international, digital media and services segment revenues increased 12.5% to $178.8 million in 2010. As a result, Valassis' entrance into digital media can greatly increase its bottom line.[5]

Competitors

Marketing Services

Media & Entertainment

Valassis has different product lines and thus, no single business directly competes with VCI in all of its lines. However, Valassis is not the largest business in any of the industries it competes in, leading to disadvantages due to smaller brand name and less buying power.[6]

References

  1. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDE3Njc4fENoaWxkSUQ9NDMwMzk1fFR5cGU9MQ==&t=1
  2. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9ODc3OTZ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
  3. http://www.connecttristates.com/news/story.aspx?id=448059
  4. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDE3Njc4fENoaWxkSUQ9NDMwMzk1fFR5cGU9MQ==&t=1
  5. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDE3Njc4fENoaWxkSUQ9NDMwMzk1fFR5cGU9MQ==&t=1
  6. http://www.hoovers.com/company/Valassis_Communications_Inc/rtyfhi-1.html
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