Exhibit 99.1
The Reader's Digest Association, Inc.
Media: Susan Russ, (914) 244-5488 susan.russ@rd.com
Investor Relations: Richard Clark, (914) 244-5425
richard.clark@rd.com
READER'S DIGEST ASSOCIATION REPORTS HIGHER 3Q EARNINGS
INTERNATIONAL PROFITS MORE THAN TRIPLE;
OTHER OPERATING SEGMENTS UP DOUBLE DIGITS
PLEASANTVILLE, N.Y., April 29, 2004 --The Reader's Digest
Association, Inc. (NYSE: RDA) today reported earnings of $0.02
per share for the third quarter of Fiscal 2004 ended March 31,
2004, compared with a loss of $(0.05) per share in the Fiscal
2003 third quarter. This year's period included a one-time,
non-cash charge (in Other income and (expense), net) of $(6.5)
million, or $(0.04) per share principally related to accelerated
amortization of debt financing fees in connection with RDA's
repayment of existing debt. Last year's comparable results
included restructuring charges and other one-time items which
netted to $(0.08) per share.
RDA reported sharply higher third-quarter operating profits
of $19 million, versus a loss of $(3) million in the year-ago
quarter. Prior-year results included restructuring charges of
$16 million. All three operating segments reported profit
improvements in excess of 20 percent for the quarter, with
International Businesses profits at three times the year-ago
period. Revenues for the Fiscal 2004 third quarter were $561
million, versus $563 million in Fiscal 2003.
Free cash flow (change in cash before the change in total
borrowings, dividends, share repurchases, divestitures and
acquisitions) improved by $1 million over the Fiscal 2003 third
quarter to $61 million. For the first nine months of Fiscal
2004, free cash flow was up 16 percent to $157 million. During
the quarter, the company reduced total debt outstanding by $61
million to $737 million.
"Operating profits for the third quarter were much improved
over last year, most notably in International Businesses, and
cash flows continued to be strong," said Thomas O. Ryder,
Chairman and Chief Executive Officer. "We projected this
improvement as part of our two-year plan, which called for
permanent cost reductions along with investments in growth
opportunities. The plan anticipated a soft first half in Fiscal
2004 followed by a generally stronger second half as we begin to
see the concurrent impact of cost reductions and investment
returns."
Key factors in the quarterly earnings comparison include:
- International Businesses achieved an incremental $10 million
in operating profits, reflecting the program to reduce
costs, stabilize the business and invest in growth
opportunities.
- RD North America operating profits were up 26 percent, or $2
million over the prior year.
- Consumer Business Services (CBS) operating profits were $1
million higher than the prior year.
- Investment spending added $5 million in expenses in Fiscal
2004, including new magazine launches and sales-force
expansion. Non-cash corporate expenses were an
incremental $7 million.
- Other income and (expense), net includes an incremental
$(6.5) million, or $(0.04) per share, reflecting
accelerated amortization of debt financing fees and
retirement of interest rate caps associated with the
partial retirement of the company's term loan with
proceeds from the $300 million bond offering completed in
March.
- Fiscal 2003 results included $(13) million net in
restructuring and one-time charges.
Summary of Consolidated Results
Fiscal 2004 Fiscal 2003
In millions, except per share data Quarter 3 Quarter 3 Better/(Worse)
Revenues $ 561 $ 563 $ (2)
Operating expenses (542) (550) 8
Other operating items, net -- (16) 16
----- ------ -----
Operating profit (loss) 19 (3) 22
Other income and expense, net (18) (5) (13)
Income tax benefit 1 3 (2)
----- ------ -----
Net income (loss) $ 2 $ (5) $ 7
===== ====== =====
Diluted earnings (loss) per share $0.02 $(0.05) $0.07
===== ====== =====
Non-GAAP Financial Measures:
Free cash flow source $ 61 $ 60 $ 1
Revenues
Total revenues for the company were roughly flat versus
prior year at $561 million, as 1 percent revenue gains in both
International Businesses and Consumer Business Services were
offset by a 3 percent decline in RD North America. These results
included $33 million in favorable effects from foreign currency
translation. Excluding foreign currency translation, revenues
were down 6 percent. Results at CBS reflected a 15 percent gain
in revenues in the Trade Publishing business, a 2 percent
increase at QSP and a 2 percent decline at BAF. The gain in
International Businesses revenues was largely driven by favorable
foreign currency translation. Excluding the effect of favorable
foreign exchange, revenues were down 11 percent, reflecting
strategically scaled back activity in many international markets
and underlying weak trends in some markets. RD North America
revenues were $197 million, down 3 percent, as higher revenues in
the Canadian business were offset by revenue declines at U.S.
Reader's Digest magazine, U.S. Books and Home Entertainment (BHE)
and Reiman Media Group.
Operating Profits
The company reported operating profits of $19 million, an
improvement of $22 million over the prior-year loss of $(3)
million, which included $16 million in restructuring charges.
Profits improved in each of the operating segments:
International Businesses, by $10 million or more than 200
percent; RD North America profits, by 26 percent; and Consumer
Business Services, by 46 percent. At RD North America and
International Businesses, profit gains largely reflected
significant reductions in overhead expenses and operating costs
versus the year-ago period, while gains in Consumer Business
Services reflected higher revenues in the Trade Publishing
business. Divisional gains were offset by an increase in
non-cash corporate unallocated expenses of $7 million and
incremental investment spending of $5 million.
Other Income and (Expense), net
Other income and (expense), net was $(18) million this
quarter compared with $(5) million in the prior-year quarter.
These amounts primarily consist of net interest expense of
approximately $(10) million in each period. In Fiscal 2004, the
company incurred $(6.5) million in one-time, non-cash expenses
related to accelerated amortization of debt financing fees
related to the partial retirement of the company's term loans and
related interest rate caps. Also included in Fiscal 2004 are
non-cash expenses of $(2) million related to the dissolution of
the company's Norway subsidiary. On a comparative basis, results
in Fiscal 2003 included approximately $2 million of income from
the sale of LookSmart, Ltd. shares and $3 million from the
recovery of costs incurred in connection with the company's
re-capitalization.
Taxes
The effective tax rate and income tax benefit in the third
quarter of Fiscal 2004 includes a net favorable adjustment of $1
million primarily related to valuation allowances on deferred tax
assets.
Outlook
During the Fiscal 2004 third quarter, RDA continued to make
progress against its two-year plan to achieve sustainable revenue
and profit growth by Fiscal 2005, while steadily improving its
already strong free cash-flow generation. Through the first
three quarters, the company remained on track with 12 of its 15
investment metrics for growth, operating performance, cost
reduction and investment, which were identified as part of the
two-year plan. The company strategically reduced marketing
activity in international markets, while implementing
cost-reduction efforts and incremental investment spending. As
expected, these moves contributed to soft results in the first
half and have begun to bear fruit in the second half.
Most notably, with one quarter remaining in Fiscal 2004 the
company was at or close to achieving its cash and debt targets:
free cash flow was at $157 million, approaching last year's
full-year $162 million and net debt was at $680 million, below
the year-end target of $700 million. In addition, through the
first three quarters, the company had achieved the low end of its
full-year EPS guidance.
In the fourth quarter, RDA expects the following:
International Businesses and RD North America profits to continue
to improve, driving double-digit full-year operating profit
growth within these segments; somewhat weaker performance at CBS
on slightly lower revenues (QSP records a seasonal loss during
the fourth quarter); and higher non-cash corporate unallocated
expenses consistent with the first three quarters. As a result,
the company expects full-year EPS near the middle of the previous
guidance of $0.65 to $0.75 per share, excluding any restructuring
charges and one-time items.
Segment Information
Fiscal 2004 Fiscal 2003 Better/
In millions Quarter 3 Quarter 3 (Worse)
Revenues:
Reader's Digest North $ 197 $ 203 $ (6)
America
International 236 3
Businesses 239
Consumer Business 129 128 1
Services
Intercompany eliminations (4) (4) --
----- ----- -----
Total revenues $ 561 $ 563 $ (2)
===== ===== =====
Operating profit (loss):
Reader's Digest North America $ 11 $ 9 $ 2
International Businesses 14 4 10
Consumer Business Services 4 3 1
Corporate Unallocated (10) (3) (7)
Other operating items, net -- (16) 16
----- ----- -----
Total operating profit (loss) $ 19 $ (3) $ 22
===== ===== =====
RD North America
Operating profits improved by 26 percent to $11 million in
the quarter, and revenues were $197 million, down 3 percent
versus prior year. This follows a similarly strong first half,
when operating profits were up 13 percent. Year to date,
operating profits for RD North America were up 16 percent, and
margins improved from 7 percent to 9 percent. During the third
quarter, margins improved from 4 percent to 6 percent, largely
attributable to improved subscriber profitability on lower
promotion costs at Reader's Digest magazine. Profits also rose
at U.S. BHE, largely reflecting overhead savings from cost
reduction efforts in connection with the two-year plan.
Profit gains at RD North America were partly offset by
Reiman Media Group, whose revenues fell slightly because of
year-over-year declines in sales of book "annuals". Profits were
also unfavorably affected by incremental investment in two new
magazine launches--Backyard Living and Our Canada. These
magazines were launched in early January, both continue to track
successfully and have achieved circulation levels of 430,000 and
120,000 respectively.
International Businesses
International Businesses operating profits were $14 million
in the third quarter, an improvement of $10 million versus the
prior-year quarter. Revenues improved by 1 percent to $239
million. Excluding the effects of foreign currency translation,
revenues fell by 11 percent. Foreign currency translation added
$2 million to operating profits. The significant increase in
operating profits reflected the benefit of cost reduction,
re-engineering, improved execution and investment activity in the
first half of Fiscal 2004. These efforts reduced revenues and
profits in the first half but have led to improved performance in
the second half, resulting in 6 percent growth in profits
year-to-date.
Operating profits improved in most international markets,
most notably France and Australia, largely due to cost cutting
and improved execution, and to a lesser extent, Poland, Mexico,
the United Kingdom and the BNI region (Benelux, Nordic, and
Iberia). Many of the company's markets experienced more
predictable response rates and improved payment performance. New
business development efforts will continue in the fourth quarter,
including a new market launch in Romania and tests of BAF, Young
Families and Reiman in several markets. The company expects
International Businesses profits and margins will continue to
increase in the fourth quarter versus prior year, leading to
double-digit full year operating profit growth.
Consumer Business Services
Operating profits improved by 46 percent to $4 million, and
revenues improved by 1 percent to $129 million versus the prior
year. Growth was driven largely by double-digit revenue gains in
the Trade Publishing business. QSP revenues rose 2 percent and
BAF revenues declined by 2 percent. The improved results in the
Trade business reflected the outstanding performance of the
"Movie Theater Storybook and Projector" products in multiple
channels including retail and special markets. At QSP, revenues
for the quarter were up 2 percent versus the prior year on higher
sales in Canada and at the on-line fundraising unit
eFundraising. Revenues at Books Are Fun declined by $1 million
during the quarter despite growth in sales for some of the newer
product lines. The decline primarily reflects lower sales in the
corporate fairs division due to a decrease in events and average
sales per event.
Corporate Unallocated
Corporate Unallocated expenses were $(10) million in the
quarter. This category primarily reflects the company's cost of
governance as well as other centrally managed expenses. It also
includes the accounting for U.S. pension plans, post-retirement
healthcare costs, and executive compensation programs. For the
Fiscal 2004 quarter, the $7 million unfavorable variance was
mostly non-cash and primarily attributable to a $5 million
decrease in pension income derived from the company's over-funded
U.S. pension plan, an additional $1 million in compensation
expense due to a greater mix of restricted stock versus stock
options, and an incremental $1 million associated with the rising
cost of post-retirement healthcare. The company expects a
similarly unfavorable variance to continue in the fourth
quarter.
Non-GAAP Financial Measures
The company publicly reports its financial information in
accordance with accounting principles generally accepted in the
United States (GAAP). To facilitate external analysis of the
company's operating performance, the company also presents
financial information that may be considered "non-GAAP financial
measures" under Regulation G and related reporting requirements
promulgated by the Securities and Exchange Commission. Non-GAAP
financial measures should be evaluated in conjunction with, and
are not a substitute for, GAAP financial measures. The following
non-GAAP financial measures included in this release are used by
the company in its internal analysis of the business.
- Free Cash Flow (change in cash before the change in total
borrowings, dividends, share repurchases, divestitures and
acquisitions) - Free cash flow is presented to provide
period-to-period cash flow trends generated by the business
before any discretionary, finance-related uses/sources of
cash. It is used by management to reconcile the change in
net debt from period to period. Certain amounts do not
recalculate due to rounding.
Three-month periods ended Nine-month periods ended
Reconciliation of Free Cash Flow, March 31, March 31,
In millions 2004 2003 2004 2003
Reported change in cash per cash
flow statement (see Table 4) $ (11.6) $ 13.0 $ 5.5 $ (26.6)
Less:
Change in total borrowings, net (61.2) (34.9) (129.3) (34.5)
Dividends paid (5.2) (5.2) (15.5) (15.8)
Share repurchases -- -- -- (101.7)
Bond offering fees (6.5) -- (6.5) --
Recapitalization costs -- (7.2) -- (10.4)
------- ------- -------- --------
Free Cash Flow Source $ 61.3 $ 60.3 $ 156.8 $ 135.8
======= ======= ======== ========
- Net Debt (total borrowings less cash and cash equivalents) -
Net debt is one of management's measures of leverage and is
an approximate measure of the company's debt less cash on
hand. The company typically manages its cash and debt by
using any "excess" cash (i.e., cash in excess of a desired
on-hand amount) to make principal payments on its
outstanding debt.
RDA will host a conference call with financial analysts to
discuss the company's third quarter results on April 29, 2004 at
8:30 a.m. EST. The company invites investors to listen to the
webcast of the conference call at the company's Web site,
www.rd.com in the Investor Relations section. This will also
include a reconciliation of non-GAAP financial measures that may
be disclosed on the conference call or from time to time in other
oral, webcast or broadcast public announcements by the company.
The company reports business results in three segments:
- Reader's Digest North America - Reader's Digest magazine in
the United States and Canada; Reiman Media Group, including
magazines Taste of Home, Light & Tasty, Quick Cooking, Birds
& Blooms, Country, Country Woman, Country Discoveries,
Reminisce, Backyard Living, Farm & Ranch Living and Crafting
Traditions, as well as books, cooking schools, country tours
and other enterprises; The Family Handyman, American
Woodworker, Reader's Digest Large Print Edition and U.S.
Selecciones magazines; Our Canada; Select Editions, series
and general books, health and home books and products, and
music and video products in the United States and Canada.
- Consumer Business Services - Books Are Fun; Young Families
and children's products in the United States and Canada;
adult and children's trade books; QSP, Inc. and QSP Canada;
and financial services marketing alliances and other
strategic initiatives in the United States.
- International Businesses - Products sold in more than 60
countries outside the United States and Canada, including:
Select Editions, series and general books, music, video and
Young Families products; Reader's Digest magazine in 48
editions and 19 languages, Special Interest magazines in the
Czech Republic, a personal finance magazine in the United
Kingdom, and The Family Handyman in Australia; Books Are Fun
operations in France, Mexico and Spain; and financial
services marketing partnerships and other initiatives in
more than 30 countries.
The Reader's Digest Association, Inc. (RDA) is a global
publisher and direct marketer of products that inform, enrich,
entertain and inspire people of all ages and cultures around the
world. Global headquarters are located at Pleasantville, New
York. The company's main Web site is at www.rd.com.
This release may include "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements inherently involve risks and
uncertainties that could cause actual future results and
occurrences to differ materially from the forward-looking
statements. The Reader's Digest Association, Inc.'s filings
with the Securities and Exchange Commission, including its
reports on Forms 10-K, 10-Q and 8-K, contain a discussion of
additional factors that could affect future results and
occurrences. RDA does not undertake to update any
forward-looking statements.
###
Table 1 of 4
The Reader's Digest Association, Inc. and Subsidiaries
Consolidated Statements of Income
(In millions, except per share data)
(unaudited)
Three-month period ended Nine-month period ended
March 31, 2004 and 2003 (A) March 31, 2004 and 2003
Fiscal Year Better/ Fiscal Year Better/
2004 2003 (Worse) 2004 2003 (Worse)
Revenues $561.0 $563.5 -- $1,852.1 $1,911.2 (3%)
Product, distribution and editorial expenses (234.9) (236.4) 1% (753.3) (765.5) 2%
Promotion, marketing and administrative expenses (307.0) (314.5) 2% (970.1) (987.3) 2%
Other operating items, net -- (16.1) N/M (9.1) (13.3) N/M
------ ------ ---- -------- -------- ----
Operating profit (loss) 19.1 (3.5) N/M 119.6 145.1 (18%)
Other income and (expense), net (B) (17.5) (5.1) (243%) (35.1) (28.3) (24%)
------ ------ ---- -------- -------- ----
Income before income tax benefit 1.6 (8.6) N/M 84.5 116.8 (28%)
Income tax benefit (provision) 0.6 4.0 (85%) (29.3) (42.4) 31%
------ ------ ---- -------- -------- ----
Net income (loss) $2.2 ($4.6) N/M $55.2 $74.4 (26%)
====== ====== ==== ======== ======== ====
Basic earnings (loss) per share:
Weighted average common shares outstanding 97.1 96.8 97.0 98.4
Basic earnings (loss) per share $0.02 ($0.05) N/M $0.56 $0.75 (25%)
====== ====== ==== ======== ======== ====
Diluted earnings (loss) per share:
Weighted average common shares outstanding 99.4 96.8 99.2 99.6
Diluted earnings (loss) per share $0.02 ($0.05) N/M $0.55 $0.74 (26%)
====== ====== ==== ======== ======== ====
Dividends per common share $0.05 $0.05 -- $0.15 $0.15 --
(A) RDA reports on a fiscal year beginning July 1. The three-month periods ended March 31, 2004 and 2003 are the third fiscal
quarters of fiscal year 2004 and fiscal year 2003, respectively. Operating results for any interim period are not necessarily
indicative of the results for an entire year.
(B) Other income and (expense), net for the three-month period ended March 31, 2004 includes $(6.5) million, or $(0.04) per
share, due to the write-off of deferred debt financing fees in connection with the partial retirement of RDA's term loans and
related interest rate caps. For the three-month period ended March 31, 2003, other income and (expense), net includes income of
$2.7 million, or $0.03 per share [expense of $(3.3) million, or $(0.03) per share for the nine-month period ended March 31, 2003],
from the recovery of costs incurred in connection with the share recapitalization completed in the second quarter of fiscal 2003.
N/M - Not meaningful.
Table 2 of 4
The Reader's Digest Association, Inc. and Subsidiaries
Revenues and Operating Profit by Operating Segments
(In millions)
(unaudited)
Three-month period ended Nine-month period ended
March 31, 2004 and 2003 (A) March 31, 2004 and 2003
Fiscal Year Fiscal Year
Restated (B) Better/ Restated (B) Better/
2004 2003 (Worse) 2004 2003 (Worse)
Revenues
Reader's Digest North America $197.5 $203.2 (3%) $632.5 $645.1 (2%)
International Businesses 238.7 236.2 1% 730.0 756.1 (3%)
Consumer Business Services 129.2 128.5 1% 513.2 531.2 (3%)
Intercompany eliminations (C) (4.4) (4.4) -- (23.6) (21.2) (11%)
------ ------ ---- -------- -------- ----
Total Revenues $561.0 $563.5 -- $1,852.1 $1,911.2 (3%)
====== ====== ==== ======== ======== ====
Operating profit (loss)
Reader's Digest North America $11.3 $9.0 26% $54.6 $47.2 16%
International Businesses 13.9 4.3 223% 36.3 34.3 6%
Consumer Business Services 4.1 2.8 46% 71.1 91.4 (22%)
Corporate unallocated (D) (10.2) (3.5) (191%) (33.3) (14.5) (130%)
------ ------ ---- -------- -------- ----
$19.1 $12.6 52% $128.7 $158.4 (19%)
Other operating items, net -- ($16.1) N/M ($9.1) (13.3) N/M
------ ------ ---- -------- -------- ----
Total operating profit (loss) $19.1 ($3.5) N/M $119.6 $145.1 (18%)
====== ====== ==== ======== ======== ====
N/M - Not meaningful.
(A) RDA reports on a fiscal year beginning July 1. The three-month periods ended March 31, 2004 and 2003 are the third fiscal
quarters of fiscal year 2004 and fiscal year 2003, respectively. Operating results for any interim period are not necessarily
indicative of the results for an entire year.
(B) The operating segment results for fiscal 2003 have been restated to conform to our new operating segments, effective June 30,
2003.
(C) In the normal course of business, the company's segments enter into transactions with one another. These intercompany
transactions are recorded by each segment at amounts as if the transactions were with third parties and, therefore, affect segment
performance. Operating segment revenues, above, are presented gross before intercompany eliminations. However, intercompany
revenues and associated expenses are eliminated in consolidation and are not reflected in the company's consolidated results.
(D) Corporate unallocated expenses include the cost of governance and other centrally managed expenses, as well as the accounting
for U.S. pension plans, post-retirement healthcare costs, and executive compensation programs which are not allocated to the
operating segments. Governance and centrally managed expenses include costs such as corporate finance and general management,
investor and public relations, legal, treasury, and any related information technology and facility costs utilized by these
departments.
Table 3 of 4
The Reader's Digest Association, Inc. and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2004 and June 30, 2003
(In millions)
(unaudited)
March 31, June 30,
2004 2003
Assets
Cash and cash equivalents $ 56.8 $ 51.3
Accounts receivable, net 259.2 256.5
Inventories 167.4 155.7
Prepaid and deferred promotion costs 126.1 132.7
Prepaid expenses and other current assets 166.3 191.8
--------- ---------
Total current assets 775.8 788.0
Property, plant and equipment, net 160.0 162.5
Goodwill 1,009.4 1,009.4
Other intangible assets, net 183.9 212.3
Other noncurrent assets 415.4 427.3
--------- ---------
Total assets $ 2,544.5 $ 2,599.5
========= =========
Liabilities and Stockholders' Equity
Loans and notes payable $ 4.4 $ 31.3
Accounts payable 106.9 97.5
Accrued expenses 267.8 281.4
Income taxes payable 21.9 36.5
Unearned revenue 444.0 414.8
Other current liabilities 19.0 19.7
--------- ---------
Total current liabilities 864.0 881.2
Long-term debt 732.3 834.7
Unearned revenues 138.8 127.6
Other noncurrent liabilities 354.1 355.7
--------- ---------
Total liabilities 2,089.2 2,199.2
Capital stock 15.2 17.6
Paid-in capital 210.0 215.0
Retained earnings 1,341.3 1,301.6
Accumulated other comprehensive (loss) income (104.7) (109.2)
Treasury stock, at cost (1,006.5) (1,024.7)
--------- ---------
Total stockholder's equity 455.3 400.3
--------- ---------
Total liabilities and stockholder's equity $ 2,544.5 $ 2,599.5
========= =========
Table 4 of 4
The Reader's Digest Association, Inc. and Subsidiaries
Consolidated Condensed Statements of Cash Flows
Nine-month periods ended March 31, 2004 and 2003
(In millions)
(unaudited)
Three-month period ended Nine-month period ended
March 31, (A) March 31,
2004 2003 2004 2003
Reclassified (A) Reclassified (A)
Cash flows from operating activities
Net income (loss) $ 2.2 ($ 4.6) $ 55.2 $ 74.4
Depreciation and amortization 15.5 16.0 47.7 48.0
Asset impairments 0.3 -- 0.8 --
Stock-based compensation 2.2 1.7 7.8 4.9
Net gain on marketable securities, investments and sales
of certain assets (0.1) (1.9) (3.8) (7.1)
Changes in current assets and liabilities
Accounts receivable, net 84.0 95.5 6.9 15.8
Inventories (1.6) (15.0) (8.2) (24.2)
Unearned revenues (10.3) (8.5) 23.1 26.4
Accounts payable and accrued expenses (33.1) (4.9) (15.6) (18.9)
Other, net 2.3 (32.7) 22.1 (8.1)
Changes in noncurrent assets and liabilities 3.3 6.8 25.4 20.7
-------- -------- -------- --------
Net change in cash due to operating activities 64.7 52.4 161.4 131.9
-------- -------- -------- --------
Cash flows from investing activities
Proceeds from maturities and sales of marketable
securities and short-term investments -- 2.0 0.8 5.2
Purchases of marketable securities, other investments and
licensing agreements -- 0.1 (1.3) (7.5)
Proceeds from other long-term investments -- -- 3.0 --
Proceeds from sales of property, plant and equipment 0.4 0.3 0.6 3.7
Capital expenditures (3.7) (3.2) (12.3) (9.8)
-------- -------- -------- --------
Net change in cash due to investing activities (3.3) (0.8) (9.2) (8.4)
-------- -------- -------- --------
Cash flows from financing activities
Repayments from revolving credit and other facilities, net (0.1) (16.9) (0.7) --
Repayments of term loan (361.1) (18.0) (428.6) (34.5)
Proceeds from senior notes offering 300.0 -- 300.0 --
Payments of debt financing fees (6.5) -- (6.5) --
Common stock repurchased -- (101.7)
Dividends paid (5.2) (5.2) (15.5) (15.8)
Proceeds from employee stock purchase plan and exercise
of stock options -- -- 1.4 1.8
Other, net 0.6 0.9 0.6 0.4
-------- -------- -------- --------
Net change in cash due to financing activities (72.3) (39.2) (149.3) (149.8)
-------- -------- -------- --------
Effect of exchange rate changes on cash (0.7) 0.6 2.6 (0.3)
-------- -------- -------- --------
Net change in cash and cash equivalents (11.6) 13.0 5.5 (26.6)
-------- -------- -------- --------
Cash and cash equivalents at beginning of period 68.4 68.0 51.3 107.6
-------- -------- -------- --------
Cash and cash equivalents at end of period $ 56.8 $ 81.0 $ 56.8 $ 81.0
======== ======== ======== ========
(A) RDA reports on a fiscal year beginning July 1. The three-month periods ended March 31, 2004 and 2003 are the third fiscal
quarters of fiscal year 2004 and fiscal year 2003, respectively. Operating results for any interim period are not necessarily
indicative of the results for an entire year. In some instances, prior year amounts have been reclassified to conform to the
current year presentation.