Valassis says third-quarter profit fell on weak revenue

Share this content:

Newspaper insert distributor Valassis Communications Inc. said Oct. 26 its third quarter net income fell as a result of weak revenue and costs related to its proposed acquisition of direct mail advertising company Advo Inc. and subsequent lawsuit to rescind the agreement.

Livonia, MI-based Valassis said net earnings in the quarter ended Sept. 30 fell to $6.6 million from $21.3 million in the same quarter a year earlier. Quarterly revenue fell 6.5 percent to $248.9 million.

The company said that during the third quarter, the proposed acquisition of Windsor, CT-based Advo and the lawsuit cost the company $10.1 million.

Valassis filed a lawsuit on Aug. 30 in Delaware Chancery Court seeking to rescind its merger agreement with direct mailer Advo based on allegations of fraud and material adverse changes. A Dec. 11 court date has been set. On Sept. 8, Advo filed a lawsuit in response to Valassis' complaint.

Valassis said that while it has made important progress in some areas of its business, year-to-date, its 2006 performance has fallen short of expectations.

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above