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CUC International Reports record Third Quarter Operating Results
Stamford, CT.--December 2, 1996
CUC International Inc.(NYSE:CU) today announced its financial results for its third quarter and nine month period ended
Oct. 31, 1996.
Revenues for the third quarter increased 22.2% to $602.2 million from $492.6 million for the same quarter a year ago.
Net income, before a one-time charge, increased 34% to $71.5 million, as compared to $53.3 million, before a one-time
restructuring charge relating to Ideon Group, Inc., for the same period a year ago. On a per share basis, CUC reported a
net loss of $0.04 per share, which reflects the one-time cost of $0.22 per share. The one-time charge primarily reflects
the previously announced integration, transaction, and litigation costs related to the acquisition of Ideon as well as certain
additional consolidation costs related to the integration of Sierra and Davidson, which now comprise CUC's software
division. Without giving effect to the one-time charge, CUC's operating results for the third quarter would have been
$0.18 per share. The weighted average number of shares outstanding was 407.0 million for the third quarter vs. 395.4
million for the same quarter last year. The Ideon acquisition, which closed on Aug. 7, 1996, has been accounted for as a
pooling-of-interests and, accordingly, all financial information has been restated to reflect Ideon's results of operations.
For the nine month period ended Oct. 31, 1996, revenues increased 21.4% to $1.7 billion from $1.4 billion for the same
period a year ago. Year-to-date net income, before merger costs, increased to $189.2 million vs. $141.8 million, before
last year's one-time charge, for the same period a year ago. On a per share basis, net income for the nine month period is
$0.19 per share, which reflects merger costs of $0.29 per share.
Walter A. Forbes, chairman and chief executive officer of CUC, commented, "We are proud to report record operating
results for our most recently completed quarter. Our performance reflects the continued strength of our membership
business as well as the integration and consolidation of our software acquisitions."
CUC International Inc. is a leading technology-driven, membership-based consumer services company that provides
more than 63.8 million consumers worldwide with access to home shopping, travel, insurance, automobile, dining, home
improvement, lifestyle clubs, checking account enhancement, and discount coupon programs. The company also provides
educational and entertainment interactive media products. |
