TRADE FOR TUESDAY:
Again, I won't be contributing much to the thread this term, but I'll continue to scan and post one or two picks a day. I appreciate your patience...
YNR looks ready to go. A selloff closed the bearish gap, and price bounced off 40MA to close above the 50MA on an opening gap (bullish). Volume was up 200% above normal. Earnings are due out soon. Last quarter showed a positive rise in EPS. Enter at or before the open on strength...but if we are lucky we might be able to get in somewhere in the gap, i.e. below 60. Resistance is at 71.5, then 82. See: 207.61.23.98
Here is the October 1999 report:
<<Sunday October 28, 09:20 AM Eastern time
Company Press Release
SOURCE:
Young & Rubicam Inc. Reports Third Quarter and Nine
Months 1999 Results
Strong Revenue and Improving Margins Drive 31% Increase in EPS;
Luminant IPO Adds Approximately $42 Million After-Tax Income
Y&R Intends to File Registration Covering Hellman & Friedman
Equity Stake
NEW YORK, Oct. 28 /PRNewswire/ -- Young & Rubicam Inc. (NYSE: YNR) today announced
strong financial results for the three and nine months ended September 30, 1999. The company
remains on track to achieve its goals of double-digit revenue growth and EBIT and EBITDA
margin improvement for the year.
Y&R reported third quarter revenues of 428.5 million, an increase of 14.1 compared to the same
period in 1998. Excluding acquisitions and foreign currency fluctuations, revenues increased by
10.5 over the third quarter of 1998.
Tom Bell, President and COO of Young & Rubicam Inc., said, "This was another excellent
quarter for Young & Rubicam. The steady, balanced growth we continue to experience on the top
line reflects the underlying strength of our integrated marketing strategy. We are also beginning to
benefit from the revenue contributions of newly acquired or majority-owned companies such as
KnowledgeBase Marketing, Direct Impact and Dentsu, Young & Rubicam. And we continue to
make progress in securing new accounts. Local and regional new business efforts, coupled with
new assignments from existing Key Corporate Accounts, resulted in approximately 265 million in
net new business in the third quarter."
The company reported an EBIT margin of 12.9 in the third quarter of 1999, a 170 basis point
improvement over the same period in 1998. Y&R also delivered an EBITDA margin of 17.4, a
220 basis point improvement over the third quarter in 1998.
During the third quarter of 1999, Y&R reduced its estimate of the annual effective income tax rate
from 41 to 40 as the implementation of tax planning strategies continues to favorably impact
estimated full-year income tax expense.
The Company reported net income of 73.9 million, or 0.88 per diluted share. Excluding a net
gain related to the sale of certain assets of Brand Dialogue in exchange for an ownership interest
in Luminant Worldwide Corporation, Y&R reported net income of 31.4 million or 0.38 per
diluted share. This compares favorably to net income of 24.3 million, or 0.29 per diluted share,
during the year ago quarter, a 31 increase in earnings per diluted share.
For the first nine months of 1999, Y&R's reported revenues increased to 1.2 billion, or growth
of 12 over the corresponding nine month period in 1998. Excluding acquisitions and foreign
currency fluctuations, revenues increased 10.5 over the first nine months of 1998. Y&R achieved
an EBIT margin of 11.6 which is a 140 basis point improvement over the pro forma 1998 period,
excluding the effect of certain non-cash charges related to its IPO in May 1998. Y&R also
reported a 170 basis points of EBITDA margin improvement, to 15.8, over the first nine months
of 1998 on a pro forma basis.
In the third quarter of 1999, Young & Rubicam repurchased approximately 800,000 shares of
common stock at an average price of 42.13 on the open market and in other transactions. This
brings the total to 4.4 million shares repurchased under the existing 12 million share repurchase
program. The shares are being purchased under this program principally in anticipation of
exercises of the outstanding employee stock options, and will likely be reissued to employees as
options are exercised.
Michael Dolan, Vice Chairman and Chief Financial Officer, said, "We are extremely pleased with
our success in continuing to deliver EBIT and EBITDA margin improvements. This is an area in
which we expect to see more improvement in the years to come. We are also making excellent
progress in executing strategic acquisitions and investments that both enhance the operating
capabilities we deliver to our clients and contribute to shareholder value creation."
The acquisitions and investments Mr. Dolan referred to include Y&R's stake in Luminant and its
move to a majority equity position in Dentsu Young & Rubicam across the principal markets of
Asia, excluding Japan. During the third quarter, the company also completed the acquisitions of
two marketing communications firms based in the United Kingdom: Rainey Kelly Campbell
Roalfe (RKCR) and Banner. London based RKCR is one of Britain's most creative and
fastest-growing advertising agencies. Banner is a leading European marketing communications
firm specializing in the technology sector.
Y&R intends to file during the week of November 1 a registration statement covering an
underwritten offering of approximately six million shares owned by the Hellman & Freidman
investors and approximately one million shares owned by Y&R management. Any offering will
be made only by means of a prospectus pursuant to the Securities Act of 1933, as amended.
Young & Rubicam Inc. is a diversified, global marketing and communications organization with
integrated services in advertising, direct marketing and sales promotion, perception management
and public relations, branding identity consultation and design services, and healthcare
communications. Young & Rubicam is comprised of Young & Rubicam Advertising, Dentsu
Young & Rubicam, The Bravo Group/Kang & Lee, Wunderman Cato Johnson, KnowledgeBase
Marketing, Brand Dialogue, The Media Edge, Burson-Marsteller, Cohn & Wolfe, Landor
Associates, Sudler & Hennessey and other related companies.>>
TC. |
