This arrangement with MMC creates what we believe to be the strongest franchise-based direct mail business that satisfies the savings-seeking consumer and delivers measurable results for local advertising merchants.
Livonia, Mich. (Vocus) February 11, 2010
Valassis (NYSE: VCI), one of the nation’s leading media and marketing services companies, announced today that MailCoups, Inc., a Valassis subsidiary that distributes local offers through its SuperCoups brand, has entered into a business arrangement with Mike’s Marketshare Coupons, Inc. (MMC), a Michigan-based company that operates under the brand name Save on Everything. Local savings and deals will be delivered to more than 9 million homes each month across 21 states in approximately 1,000 cities.
MMC, which is owned and operated by Michael Gauthier, shall manage MailCoups through the term of the business arrangement. The MMC team, under Gauthier’s leadership, brings marketing, sales and training expertise having grown MMC through corporately-owned territories over the last 26 years. We believe that MailCoups, under MMC’s management, will become the industry’s most dynamic marketing solution for America’s local businesses.
"This arrangement with MMC creates what we believe to be the strongest franchise-based direct mail business that satisfies the savings-seeking consumer and delivers measurable results for local advertising merchants,” said Steve Mitzel, Valassis General Manager and Chief Financial Officer, Shared Mail. "We are excited about the great potential of this relationship and are hopeful we can expand this business model further.”
Both companies deliver local coupons with super savings to consumers while helping small business owners grow their businesses and maximize the returns on their advertising investment. Presently, nearly 42 million SuperCoups envelopes are mailed across 17 states with 48 franchises. Today, SAVE Magazine, a product of MMC, reaches more than 50 million homes annually through the 166 unique magazines it produces. The plans are to continue both formats consolidated under the Save On Everything brand.
We expect that MailCoups’ team of sales representatives and franchisees will utilize new, technology-driven efficiencies and digital marketing tools as a result of this arrangement. "It’s all about increasing customer service and advertising effectiveness,” said Gauthier.
"I am strongly committed to furthering our business models and collectively leading the industry with the broad reach of each offering and the unmatched savings they provide. This is a tremendous growth opportunity for both companies,” remarked Gauthier.
Valassis is one of the nation’s leading media and marketing services companies, offering unparalleled reach and scale to more than 15,000 advertisers. Its RedPlum media portfolio delivers value on a weekly basis to over 100 million shoppers across a multi-media platform – in-home, in-store and in-motion. Through its interactive offering – redplum.com – consumers will find compelling national and local deals online. Headquartered in Livonia, Michigan with approximately 7,000 associates in 28 states and eight countries, Valassis is widely recognized for its associate and corporate citizenship programs, including its America’s Looking for Its Missing Children® program. Valassis companies include Valassis Direct Mail, Inc., Valassis Canada, Promotion Watch, Valassis Relationship Marketing Systems, LLC and NCH Marketing Services, Inc. For more information, visit http://www.valassis.com or http://www.redplum.com.
Safe Harbor and Forward-Looking Statements
Certain statements found in this document constitute "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: price competition from our existing competitors; new competitors in any of our businesses; a shift in client preference for different promotional materials, strategies or coupon delivery methods, including, without limitation, as a result of declines in newspaper circulation; an unforeseen increase in paper or postal costs; changes which affect the businesses of our clients and lead to reduced sales promotion spending, including, without limitation, a decrease of marketing budgets which are generally discretionary in nature and easier to reduce in the short-term than other expenses; our substantial indebtedness, and ability to refinance such indebtedness, if necessary, and our ability to incur additional indebtedness, may affect our financial health; the financial condition, including bankruptcies, of our clients, suppliers, senior secured credit facility lenders or other counterparties; our ability to comply with or obtain modifications or waivers of the financial covenants contained in our debt documents; certain covenants in our debt documents could adversely restrict our financial and operating flexibility; ongoing disruptions in the credit markets that make it difficult for companies to secure financing; fluctuations in the amount, timing, pages, weight and kinds of advertising pieces from period to period, due to a change in our clients’ promotional needs, inventories and other factors; our failure to attract and retain qualified personnel may affect our business and results of operations; a rise in interest rates could increase our borrowing costs; we may be required to recognize additional impairment charges against goodwill and intangible assets in the future; court approval of the settlement agreement among the parties to the pending ADVO securities class action lawsuit; possible governmental regulation or litigation affecting aspects of our business; the credit and liquidity crisis in the financial markets could continue to affect our results of operations and financial condition; reductions of our credit ratings may have an adverse impact on our business; counterparties to our secured credit facility and interest rate swaps may not be able to fulfill their obligations due to disruptions in the global credit markets; uncertainty in the application and interpretation of applicable state sales tax laws may expose us to additional sales tax liability; and general economic conditions, whether nationally, internationally, or in the market areas in which we conduct our business, including the adverse impact of the ongoing economic downturn on the marketing expenditures and activities of our clients and prospective clients as well as our vendors, with whom we rely on to provide us with quality materials at the right prices and in a timely manner. These and other risks and uncertainties related to our business are described in greater detail in our filings with the United States Securities and Exchange Commission, including our reports on Forms 10-K and 10-Q and the foregoing information should be read in conjunction with these filings. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Director, Investor Relations and Corporate Communications
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