Post Apollo, Arbitron Reissues Financials
February 26, 2008 at 5:32 AM (PT)
YESTERDAY, (NET NEWS 2/25) ARBITRON and THE NIELSEN COMPANY announced the termination of "PROJECT APOLLO," the proposed single-source, national research service. TODAY, ARBITRON rereleases financial data to include the effect of PROJECT APOLLO.
On FEBRUARY 14th, the Company issued full year 2008 revenue growth guidance of 8% to 10% and earnings per share guidance expectations between $1.42 and $1.56. At that time, it was noted that the earnings per share guidance excluded the impact of any incremental costs associated with shutting down or commercializing PROJECT APOLLO. At the same time, the Company also noted that the outcome of the commercialization decision would result in additional costs of between $4 million and $10 million, with the low end representing a shutdown of the panel and the high end representing a full commercialization scenario.
ARBITRON continues to expect revenue for the full year 2008 to increase between 8% and 10% compared to last year’s revenue from continuing operations. (This revenue guidance excludes 2007 revenue from CONTINENTAL RESEARCH, which was sold in JANUARY 2008 and has been classified as a Discontinued Operation effective with the fourth quarter 2007.)
Earnings per share (diluted) for the full year 2008 is now expected to be between $1.30 and $1.44 versus $1.35 in 2007. Earnings per share (diluted) from continuing operations in 2007 was $1.37. The initial earnings per share guidance for 2008 included only costs associated with operating the PROJECT APOLLO pilot into the first quarter and represented approximately $0.04 per diluted share. The incremental $0.12 included in the guidance issued today brings the total 2008 estimated costs to $0.16 per diluted share, roughly flat with 2007.
In 2007, costs associated with PROJECT APOLLO totaled $6.9 million.