Valassis Posts Revenue Decline, Reduces It 2011 Outlook

• Net earnings were $27.5 million, an increase of 1.9 percent from $27.0 million for the prior year quarter.

• Adjusted EBITDA was $69.8 million, a decrease of 12.5 percent compared to $79.8 million for the prior year quarter driven primarily by the decline in revenue.

“The combined effect of the economy and increasing coupon redemptions are prematurely exhausting annual consumer promotion budgets in the second half of 2011,” said Alan F. Schultz, Valassis chairman, president and CEO. “We believe marketers will expand their consumer promotion budgets in 2012 to accommodate the increasing redemptions as they have in the past. We are also counseling clients to proactively manage redemption costs by controlling the variables we know influence redemptions such as coupon face values, coupon durations and multiple purchase requirements.”