Valassis Reports Decreases in Revenue and Adjusted EBITDA

Shared Mail—Revenues for the first quarter of 2012 were $328.1 million, an increase of 1.7 percent compared to the prior year quarter. Segment profit for the quarter was $42.4 million, an increase of 0.7 percent compared to the prior year quarter. The improvement in segment results was driven by an increase in revenue per package and lower SG&A costs; however, segment profit was negatively impacted by reduced wrap revenue and a decrease in insert volume.

Neighborhood Targeted—Revenues for the first quarter of 2012 were $72.2 million, a decrease of 19.9 percent compared to the prior year quarter. Segment loss for the quarter was $1.6 million compared to segment profit in the prior year quarter of $1.9 million, due to the aforementioned revenue decline. Segment results were negatively impacted primarily by the reduction in CPG spend across newspaper inserts and sampling.

Free-standing Inserts (FSI)—Revenues for the first quarter of 2012 were $76.3 million, a decrease of 14.5 percent compared to the prior year quarter. Segment profit for the quarter was $5.4 million, a decrease of 27.0 percent compared to the prior year quarter. Segment results for the quarter were impacted by the reduced CPG spend and the absence of custom co-op business.

International, Digital Media & Services (IDMS)—Revenues for the first quarter of 2012 were $42.0 million, a decrease of 6.9 percent compared to the prior year quarter. Growth in NCH Marketing Services, Inc., our coupon clearing and analytics business, and our digital business was offset by declines in solo direct mail and in-store products. Segment profit for the quarter was $2.7 million, a decrease of 50.0 percent compared to the prior year quarter. The segment profit decline was primarily due to the negative pressure on the in-store business resulting from the reduction in CPG spend.

About Valassis
Valassis is one of the nation’s leading media and marketing services companies, offering unparalleled reach and scale to more than 15,000 advertisers. Its RedPlum media portfolio delivers value on a weekly basis to over 100 million shoppers across a multimedia platform—in-home, in-store and in-motion. Through its digital offering, including redplum.com and save.com, consumers can find compelling national and local deals online. Headquartered in Livonia, Michigan with approximately 7,000 associates in 28 states and eight countries, Valassis is widely recognized for its associate and corporate citizenship programs, including its America’s Looking for Its Missing Children program. Valassis companies include Valassis Direct Mail, Valassis Canada, Promotion Watch, Valassis Relationship Marketing Systems, LLC and NCH Marketing Services.