CHICAGO Kupper Parker Communications posted lower revenue for its fiscal-year 2003, but managed to show a minor gain in net income due to lower operating expenses and charges compared with the same period last year.
In unaudited results for the year ending Oct. 31, revenue decreased 18.6 percent to $11.6 million, compared with $14.2 million in fiscal 2002. Net income for the year, however, was just over $1 million, or 17 cents a share, compared with a fiscal-2002 net loss of $3.4 million, or 58 cents a share.
The net income gain was attributable to lower operating expenses and a $2.8 million onetime charge in the fourth quarter of FY 2002. Operating expenses were $10.3 million for FY 2003, compared with $17.5 million for 2002, a decrease of 40 percent, according to the company.
"Through an aggressive combination of expense control and repositioning our portfolio to focus on more profitable lines of business, we successfully turned our performance around," said Bruce Kupper, chairman and chief executive officer of KPC, in a statement. "This has been one of the most difficult economies our industry has faced, but we met the challenge of achieving profitability while implementing operational changes associated with earlier acquisitions."
For the fourth quarter of 2003, the St. Louis-based agency network posted a net income of $287,000, or 5 cents a share, compared with a net loss of $2.6 million, or 44 cents a share, for the same period in 2002. Revenue during the fourth quarter decreased 22.6 percent to $2.8 million, compared with $3.6 million for the same period in 2002.
Kupper said the agency's new business "pipeline" was strong, and expected the network and integrated capabilities could create new growth. KPC's recent client wins include Stony Brook University Hospital, Centex Destination Properties, Global Products International and some operating divisions of Pfizer.
Headquartered in St. Louis, KPC has offices in Boston; Chicago; Kansas City, Mo.; Louisville, Ky.; Memphis, Tenn.; Melville, N.Y.; and Pensacola, Fla. An ownership stake in Communications in Business provides services in Europe.