ADVO Revenue Grows 10%

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ADVO Inc. revenue grew 10.1 percent for its third fiscal quarter ended June 26, or $29.2 million over the prior-year quarter to a record $318.9 million, the Windsor, CT, company reported last week.


ADVO's revenue increase was driven by advertising piece volume growth of 12.1 percent to 7.5 billion pieces, the company said.


Average pieces per package grew to 7.3, which is on top of 4.0 percent growth in last year's third quarter. Revenue per piece was down 0.7 percent. Total shared packages distributed were up 4.5 percent, as ADVO continues to expand the frequency and reach of ad packages distributed in response to client demand.


Diluted earnings per share for the quarter were 43 cents, including a charge of 8 cents related to the departure of the company's former CEO during the quarter. Excluding this charge, diluted EPS was 52 cents, up 15.6 percent over the prior-year period.


Bobbie Gaunt, ADVO's interim CEO, said that given "our third-quarter results, we are comfortable with our ability to achieve full-year EPS in line with previous guidance of $1.75-$1.83, excluding the 8 cents charge in this quarter and the 3 cents first-quarter refinancing charge."


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