RECORD EARNINGS !!!!!!
Thursday July 29, 4:03 pm Eastern Time
Company Press Release
Snyder Communications Reports Record Second Quarter Results
BETHESDA, Md.--(BUSINESS WIRE)--July 29, 1999--Snyder Communications, Inc., (NYSE:SNC - news) today
announced record revenues, operating profits and earnings per share for the quarter ended June 30, 1999.
Net income for the quarter ended June 30, 1999 grew 32% to $23.3 million, compared to $17.7 million for the same quarter of 1998, on a pro forma basis.
Earnings per share (diluted) for the second quarter of 1999 increased 24% to $0.31 from $0.25 for the second quarter of 1998, on a pro forma basis. Revenue for
the second quarter of 1999 increased 26% to a record $256 million, compared with $203 million for the same quarter of 1998, including revenue from the
Healthcare Services Division.
Daniel M. Snyder, Chief Executive Officer of Snyder Communications commented, ''This was another quarter marked by continued strong performance across all
operating units. We are committed to taking the actions necessary to further strengthen our business operations, further public understanding of our operational
structure and capabilities, and to increase shareholder value.''
Mr. Snyder continued, ''During the second quarter of 1999 we announced our plans to issue a new class of stock to track the performance of circle.com, Snyder's
Internet-based professional services organization. Launching circle.com as a publicly traded entity allows it to accelerate its growth rate, establish a dominant position
on the Web, and create its own capital structure. As a separately traded company circle.com can more aggressively pursue key talent and capture a significant share
of a hyper-growth market.
''circle.com creates Internet-based customer relationship management systems for its Fortune 1000 and emerging Internet-based clients,'' said Mr. Snyder.
''circle.com provides all the services necessary to create these systems, including all front-end and back-end services, and sees strategic advantage in delivering all
of the services necessary to create such systems for our clients. By delivering fully integrated services across multiple parts of a client's business, we become an
integral part of our client's organization. This promotes long-term client relationships that evolve as the client's Internet-based business strategy evolves.''
Mr. Snyder added, ''Also during the second quarter we announced the plan to spin-off Snyder Healthcare Services into an independent, publicly-traded company.
We believe that separating Snyder Healthcare Services from Snyder Communications will create two 'pure-play' companies and make both more attractive to their
respective employees, clients and investors. From a business perspective, we believe that this 'pure-play' status will enhance both companies' abilities to attract and
retain talent, will allow both to be more strategically focused and be more responsive to the changing needs of our particular clients and marketplace.''
Mr. Snyder continued, ''After the spin-off, Snyder Communications will be a strategically focused direct marketing, advertising and communications organization,
competing directly with organizations which include The Interpublic Group, Omnicom and Young & Rubicam. We want the world to see and understand the
evolution of Snyder Communications clearly. We believe Snyder Communications will be better recognized for its capabilities in the direct marketing, advertising and
communications capabilities and Snyder Healthcare Services will be better recognized for its position in the health marketing services industry.
''On June 28th we filed our registration statement with the SEC for both transactions and are currently on schedule for completing the transactions in the second half
of 1999.''
The financial tables attached to this press release include: a pro forma presentation that includes the consolidated results of Snyder Healthcare Services, Inc., which
the Company plans to spin-off to shareholders in the second half of 1999, and excludes non-recurring costs; and an actual presentation that includes non-recurring
costs and presents Snyder Healthcare Services, Inc. as discontinued operations.
Snyder Communications, Inc. is one of the leading providers of integrated marketing communications, interactive services and advertising in the world. Snyder's
Brann Worldwide offers comprehensive direct marketing, database modeling, data warehousing, and other technology solutions. Snyder's circle.com provides an
entire range of interactive capabilities, extending from front-end Internet Website development through to the back-end e-commerce systems. Snyder's Arnold
Communications provides advertising, creative and public relations services through its global network. Snyder's Bounty SCA Worldwide offers global consumer
access and insight through its proprietary channels. Snyder has offices throughout the United States, Canada, the United Kingdom, France, Italy, Hungary, Germany,
and the Netherlands. Visit the Snyder Communications Website at www.snyder.com.
Further information concerning the circle.com and Snyder Healthcare Services transactions is contained in publicly available preliminary disclosure materials filed with
the Securities and Exchange Commission on June 28th, 1999. |
