(RTTNews) - Thursday, media and marketing services firm Valassis Communications Inc. (VCI: News ) reported an increase in third-quarter earnings, helped mainly by lower costs, despite a decline in revenues.

The Livonia, Michigan-based company reported third quarter net earnings of $13.8 million or $0.28 per share, compared to net loss of $5.2 million or $0.11 per share last year.

On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter declined to $544.06 million from $563.65 million in the same quarter last year. Excluding the revenue of $3.8 million from divested and discontinued businesses in the prior year quarter, the quarterly revenue decline would have been 2.8%. Analysts had a revenue consensus of $540.27 million for the third quarter.

Segment wise, Shared Mail segment's quarterly revenues decreased 2.3% to $319.5 million from $327.0 last year. Neighborhood Targeted revenue totaled $92.0 million, down 14.0% from $107.0 million in the prior-year quarter. Free-standing Inserts segment revenue grew 1.3% to $92.6 million from $91.4 million in the previous year. International, Digital Media & Services revenue increased 4.4% to $40.0 million from $38.3 million in the year-ago quarter.

Total costs and expenses for the quarter declined 8.7% to $501.39 million from $549.22 million in the prior year quarter. Total other expenses and income were $21.29 million, down 8.7% from $23.31 million last year.
The company reported a 3.4% reduction in general and administrative costs during the quarter, compared to same quarter last year. Operating income surged to $42.38 million from $14.43 million in the previous year quarter.

For the nine-month period, the company reported net income of $42.78 million or $0.87 per share, compared to $12.35 million or $0.26 per share in the previous-year period. Revenue for the period decreased 6.6% to $1.64 billion from $1.76 billion a year ago.

Looking forward, the company said it is increasing full-year 2009 adjusted EBITDA guidance to be between $255 million and $265 million from $245 million.

VCI closed Thursday's regular trading at $20.19, up $3.32 or 19.68% on a volume of 1.94 million shares. However, the stock lost 2 cents in the after hours.

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by RTT Staff Writer

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