| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers V > Headlines for Valassis Communications Inc. > News item |
Valassis cuts debt, completes four Dutch auctions in third quarter
By Lisa Kerner
Charlotte, N.C., Oct. 29 - Valassis Communications Inc.'s federal trial against News America Inc. will begin on Feb. 2 in the U.S. District Court for the Eastern District of Michigan, president and chief executive officer Alan F. Schultz said during the company's quarterly earnings call on Thursday.
The company was awarded $300 million in compensatory damages in July by a Wayne County Circuit Court jury in the first of its three lawsuits against News America.
Schultz, when asked, would not elaborate on the company's plans for the $300 million. However, he did say that debt reduction is a priority.
According to a September news release, Valassis' complaint alleges that News America has improperly leveraged and tied the purchase of its in-store promotion and advertising services to the purchase of space in its free-standing insert and that News America has attempted to monopolize the free-standing insert market.
During the third quarter, Valassis decreased its debt by $40.9 million. In the year to date, the company said it has paid down $150.1 million in debt.
Valassis had net debt at Sept. 30 of $941.6 million.
The company completed four modified Dutch auctions in the third quarter, repurchasing and retiring $39.3 million of its outstanding term loan B and delayed-draw term loans under its senior secured credit facility at an average discount of 2.6% to par for an after-tax net gain of $400,000.
For the third quarter of 2009, Valassis' revenue fell by 3.5% to $544.1 million from $563.7 million for the prior-year quarter.
Net earnings were up at $13.8 million, or $0.28 per share, compared with a loss of $5.2 million, or a loss of $0.11 per share, for the third quarter of 2008, the company said.
Full-year 2009 guidance was increased, with adjusted EBITDA expected to be between $255 million and $265 million. It was previously expected to be $245 million.
Valassis is a Livonia, Mich.-based provider of media and marketing services.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.