Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - Thryv Holdings, Inc. | a15-16946_18k.htm |
Exhibit 99.1
Media Relations Contact:
Suzanne Keen
972-453-7875
suzanne.keen@dexmedia.com
Investor Relations Contact:
Cliff Wilson
972-453-6188
cliff.wilson@dexmedia.com
Dex Media announces second quarter 2015 financial results
DALLAS, Aug. 6, 2015 — Dex Media, Inc. (NASDAQ:DXM), one of the largest national providers of social, local and mobile marketing solutions through direct relationships with local businesses, today announced financial results for the second quarter and six months ended June 30, 2015.
Key highlights for second quarter 2015:
· Long-term strategic initiatives on track with higher-value products and service offerings that drive customer retention, more sustainable revenue and profitability
· Expense reduction expected to exceed target for 2015, realizing annualized run rate savings of approximately $160 million
· Completed consolidation of print fulfillment and advertising graphics production systems, improving efficiencies and further reducing costs
· Broadened client service model with introduction of Gold tier, following earlier launch of Platinum tier. Service tiers are designed to reward and retain the company’s best and most profitable clients
“We are transforming Dex Media into the go-to marketing resource for small businesses,” said Joe Walsh, president and CEO. “We are helping local businesses fight back against the national and regional companies that are outmaneuvering them online, particularly in mobile search. We are giving them the tools and service they need to win. This strategy provides us a focused path to generate sustainable revenue and profitability over the long term. During the quarter, we made significant progress on our core initiatives. We know we still have some way to go and we continue to work to ensure we have the right strategic, operational and financial structure in place to support our business for many years to come.”
Second Quarter 2015 Results
|
$ in millions |
|
2Q’ 15 |
|
YTD ‘15 |
| ||
|
GAAP Reporting |
|
|
|
|
| ||
|
Operating Revenue |
|
$ |
387 |
|
$ |
793 |
|
|
Operating Revenue Growth YoY |
|
-18.4 |
% |
-14.7 |
% | ||
|
Operating Income |
|
$ |
42 |
|
$ |
68 |
|
|
Net (Loss) |
|
$ |
(42 |
) |
$ |
(101 |
) |
|
|
|
2Q’ 15 |
|
YTD ‘15 |
| ||
|
Non-GAAP Reporting |
|
|
|
|
| ||
|
Operating Revenue |
|
$ |
387 |
|
$ |
793 |
|
|
Operating Pro Forma Revenue Growth YoY |
|
-18.4 |
% |
-17.4 |
% | ||
|
Adjusted EBITDA(1) |
|
$ |
159 |
|
$ |
302 |
|
|
Adjusted EBITDA margin(1) |
|
41.1 |
% |
38.1 |
% | ||
|
|
|
2Q’ 15 |
|
YTD ‘15 |
|
|
Sales Metrics |
|
|
|
|
|
|
Print Ad Sales |
|
-22.8 |
% |
-24.6 |
% |
|
Digital Ad Sales |
|
-22.1 |
% |
-25.4 |
% |
|
Total |
|
-22.5 |
% |
-24.9 |
% |
(1) Adjusted EBITDA is a non-GAAP measure that represents earnings before interest; taxes; depreciation and amortization; and other nonrecurring items, including business transformation costs and long term incentive compensation. Adjusted EBITDA margin (non-GAAP) is calculated by dividing Adjusted EBITDA (non-GAAP) by operating revenue.
Cash provided by operations for the six months ended June 30, 2015, was $136 million, less $9 million in capital expenditures, which resulted in free cash flow, a non-GAAP measure, of $127 million. Dex Media had a cash balance of $191 million as of June 30, 2015.
Financial Guidance for Full Year 2015
|
$ millions |
|
Low |
|
High |
| ||
|
Operating Revenue |
|
$ |
1,475 |
|
$ |
1,525 |
|
|
Operating Revenue Growth YoY |
|
-20.1 |
% |
-17.3 |
% | ||
|
Adjusted EBITDA |
|
$ |
510 |
|
$ |
540 |
|
|
Adjusted EBITDA Margin |
|
34.6 |
% |
35.4 |
% | ||
|
Free Cash Flow |
|
$ |
180 |
|
$ |
220 |
|
Earnings Webcast Information
Dex Media will host an investor webcast at 10 a.m. EDT today. Individuals within the United States can access today’s webcast by dialing 888-603-6873. International participants should dial 973-582-2706. The pass code is: 97076207. A replay of the webcast will be available at 855-859-2056. International callers can access the replay by calling 404-537-3406. The replay pass code is: 97076207. The replay will be available through Aug. 27, 2015. In addition, you can access the webcast in the Investor Relations section at www.dexmedia.com.
Basis of Presentation and Non-GAAP Financial Measures
The financial information accompanying this release provides a reconciliation of GAAP to non-GAAP and adjusted pro forma non-GAAP results. Dex Media believes that the use of non-GAAP financial measures provides useful information to investors to gain an overall understanding of its current financial performance. Specifically, Dex Media believes the non-GAAP results provide useful information to management and investors by excluding certain nonrecurring items that Dex Media believes are not indicative of its core operating results. In addition, non-GAAP financial measures are used by management for budgeting and forecasting as well as subsequently measuring Dex Media’s performance, and Dex Media believes that non-GAAP results provide investors with financial measures that most closely align to its internal financial measurement processes.
About Dex Media
Dex Media (NASDAQ: DXM) is a full-service media company offering integrated marketing solutions that deliver measurable results. As the marketing department for hundreds of thousands of small- and medium-sized businesses across the U.S., Dex Media helps them Get Found, Get Chosen and Get Talked About. The company’s widely used consumer services include the DexKnows.com® and Superpages.com® search portals and applications as well as local print directories. For more information, visit www.DexMedia.com.
Forward-Looking Statements
Some statements included in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Statements that include the words “may”, “will”, “could”, “should”, “would”, “believe”, “anticipate”, “forecast”, “estimate”, “expect”, “preliminary”, “intend”, “plan”, “project”, “outlook” and similar statements of a future or forward-looking nature identify forward-looking statements. You should not place undue reliance on these statements, as they are not guarantees of future performance. Forward-looking statements provide current expectations with respect to our financial performance and future events with respect to our business and industry in general. Forward-looking statements are based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements address matters that involve risks and uncertainties, and include, without limitation, future operating and financial performance of the Company (including, without limitation, the future prospects for and stability of the industry in which the Company operates, anticipated future revenues, EBITDA margins and free cash flow for the remainder of 2015, the implementation of the business transformation program and the ability of the Company to retain existing business and to obtain and retain new business. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the risks related to the following: our ability to provide assurance for the long-term continued viability of our business; our ability to comply with the financial covenants and other restrictive covenants in our credit facilities; limitations on our operating and strategic flexibility and the ability to operate our business, finance our capital needs or expand business strategies under the terms of our credit facilities; limited access to capital markets and increased borrowing costs resulting from our leveraged capital structure and debt ratings; our ability to obtain additional financing or refinance our existing indebtedness on satisfactory terms
or at all; our ability to accurately report our financial results due to a material weakness in our internal control over financial reporting; possible changes in our credit rating; changes in our operating performance; our ability to implement our business transformation program as planned; our ability to realize the anticipated benefits in the amounts and at the times expected from the business transformation program; the risk that the amount of costs associated with our business transformation program will exceed estimates; the risk that our common stock may be delisted from The Nasdaq Stock Market LLC; reduced advertising spending and increased contract cancellations by our clients, which causes reduced revenue; declining use of print yellow page directories by consumers; our ability to collect trade receivables from clients to whom we extend credit; credit risk associated with our reliance on small and medium sized businesses as clients; our ability to anticipate or respond to changes in technology and user preferences; our ability to maintain agreements with major Internet search and local media companies; competition from other yellow page directory publishers and other traditional and new media including increased competition from existing and emerging digital technologies; changes in the availability and cost of paper and other raw materials used to print our directories; our reliance on third-party providers for printing, publishing and distribution services; our ability to attract and retain qualified key personnel; our ability to maintain good relations with our unionized employees; changes in labor, business, political and economic conditions; changes in governmental regulations and policies and actions of federal, state and local municipalities impacting our businesses; the outcome of pending or future litigation and other claims; and other events beyond our control that may result in unexpected adverse operating results.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this and other periodic reports we file with the Securities and Exchange Commission “SEC”, including the information in “Item 1A. Risk Factors” in Part I of our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, which is incorporated herein by reference. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. All forward-looking statements included in this report are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof or, in the case of statements incorporated by reference, on the date of the document incorporated by reference and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
###
|
Dex Media, Inc. |
Schedule A |
|
Consolidated Statements of Comprehensive (Loss) |
|
|
|
|
|
Reported (GAAP) |
|
|
|
(dollars in millions, except per share amounts) |
|
|
|
Six Mos. Ended |
|
Six Mos. Ended |
|
|
| ||
|
Unaudited |
|
6/30/15 |
|
6/30/14 |
|
% Change |
| ||
|
|
|
|
|
|
|
|
| ||
|
Operating Revenue |
|
$ |
793 |
|
$ |
930 |
|
(14.7 |
) |
|
|
|
|
|
|
|
|
| ||
|
Operating Expenses |
|
|
|
|
|
|
| ||
|
Selling |
|
178 |
|
227 |
|
(21.6 |
) | ||
|
Cost of service (exclusive of depreciation and amortization) |
|
265 |
|
296 |
|
(10.5 |
) | ||
|
General and administrative |
|
73 |
|
73 |
|
— |
| ||
|
Depreciation and amortization |
|
209 |
|
322 |
|
(35.1 |
) | ||
|
Total Operating Expenses |
|
725 |
|
918 |
|
(21.0 |
) | ||
|
|
|
|
|
|
|
|
| ||
|
Operating Income |
|
68 |
|
12 |
|
NM |
| ||
|
Interest expense, net |
|
172 |
|
180 |
|
(4.4 |
) | ||
|
(Loss) Before Gain on Early Extinguishment of Debt and Provision (Benefit) for Income Taxes |
|
(104 |
) |
(168 |
) |
(38.1 |
) | ||
|
|
|
|
|
|
|
|
| ||
|
Gain on early extinguishment of debt |
|
1 |
|
— |
|
NM |
| ||
|
(Loss) Before Provision (Benefit) for Income Taxes |
|
(103 |
) |
(168 |
) |
(38.7 |
) | ||
|
Provision (benefit) for income taxes |
|
(2 |
) |
(1 |
) |
100.0 |
| ||
|
Net (Loss) |
|
$ |
(101 |
) |
$ |
(167 |
) |
(39.5 |
) |
|
|
|
|
|
|
|
|
| ||
|
Other Comprehensive (Loss) |
|
|
|
|
|
|
| ||
|
Adjustments for pension and other post-employment benefits, net of taxes |
|
2 |
|
4 |
|
(50.0 |
) | ||
|
Comprehensive (Loss) |
|
$ |
(99 |
) |
$ |
(163 |
) |
(39.3 |
) |
|
|
|
|
|
|
|
|
| ||
|
Basic and Diluted (Loss) per Common Share |
|
$ |
(5.78 |
) |
$ |
(9.67 |
) |
(40.2 |
) |
|
Basic and diluted weighted-average common shares outstanding |
|
17.4 |
|
17.3 |
|
|
| ||
|
Dex Media, Inc. |
Schedule B |
|
Consolidated Statements of Comprehensive Loss |
|
|
|
|
|
Reported (GAAP) |
|
|
|
(dollars in millions, except per share amounts) |
|
|
|
Three Mos. Ended |
|
Three Mos. Ended |
|
|
| ||
|
Unaudited |
|
6/30/15 |
|
6/30/14 |
|
% Change |
| ||
|
|
|
|
|
|
|
|
| ||
|
Operating Revenue |
|
$ |
387 |
|
$ |
474 |
|
(18.4 |
) |
|
|
|
|
|
|
|
|
| ||
|
Operating Expenses |
|
|
|
|
|
|
| ||
|
Selling |
|
82 |
|
112 |
|
(26.8 |
) | ||
|
Cost of service (exclusive of depreciation and amortization) |
|
124 |
|
146 |
|
(15.1 |
) | ||
|
General and administrative |
|
36 |
|
50 |
|
(28.0 |
) | ||
|
Depreciation and amortization |
|
103 |
|
161 |
|
(36.0 |
) | ||
|
Total Operating Expenses |
|
345 |
|
469 |
|
(26.4 |
) | ||
|
|
|
|
|
|
|
|
| ||
|
Operating Income |
|
42 |
|
5 |
|
NM |
| ||
|
Interest expense, net |
|
87 |
|
90 |
|
(3.3 |
) | ||
|
(Loss) Before Gain on Early Extinguishment of Debt and Provision (Benefit) for Income Taxes |
|
(45 |
) |
(85 |
) |
(47.1 |
) | ||
|
|
|
|
|
|
|
|
| ||
|
Gain on early extinguishment of debt |
|
1 |
|
— |
|
NM |
| ||
|
(Loss) Before Provision (Benefit) for Income Taxes |
|
(44 |
) |
(85 |
) |
(48.2 |
) | ||
|
Provision (benefit) for income taxes |
|
(2 |
) |
— |
|
NM |
| ||
|
Net (Loss) |
|
$ |
(42 |
) |
$ |
(85 |
) |
(50.6 |
) |
|
|
|
|
|
|
|
|
| ||
|
Other Comprehensive (Loss) |
|
|
|
|
|
|
| ||
|
Adjustments for pension and other post-employment benefits, net of taxes |
|
(1 |
) |
2 |
|
NM |
| ||
|
Comprehensive (Loss) |
|
$ |
(43 |
) |
$ |
(83 |
) |
(48.2 |
) |
|
|
|
|
|
|
|
|
| ||
|
Basic and Diluted (Loss) per Common Share |
|
$ |
(2.39 |
) |
$ |
(4.93 |
) |
(51.5 |
) |
|
Basic and diluted weighted-average common shares outstanding |
|
17.4 |
|
17.3 |
|
|
| ||
|
Dex Media, Inc. |
|
Schedule C |
|
Reconciliation of Non-GAAP Measures |
|
|
|
|
|
(dollars in millions) |
|
Unaudited |
|
Six Mos. Ended |
|
Six Mos. Ended |
| ||
|
|
|
|
|
|
| ||
|
Net (Loss) - GAAP |
|
$ |
(101 |
) |
$ |
(167 |
) |
|
Add/(subtract) non-operating items: |
|
|
|
|
| ||
|
Provision (benefit) for income taxes |
|
(2 |
) |
(1 |
) | ||
|
Interest expense, net |
|
172 |
|
180 |
| ||
|
Gain on early extinguishment of debt (3) |
|
(1 |
) |
— |
| ||
|
Operating Income - GAAP |
|
68 |
|
12 |
| ||
|
Depreciation and amortization |
|
209 |
|
322 |
| ||
|
EBITDA (non-GAAP) (1) |
|
277 |
|
334 |
| ||
|
|
|
|
|
|
| ||
|
Adjustments and pro forma items: |
|
|
|
|
| ||
|
Adjustments for SuperMedia acquisition accounting (4) |
|
— |
|
21 |
| ||
|
Merger integration costs (5) |
|
— |
|
26 |
| ||
|
Business transformation costs (6) |
|
24 |
|
— |
| ||
|
Long term incentive compensation (7) |
|
1 |
|
5 |
| ||
|
Employee benefit plan amendments (8) |
|
— |
|
(13 |
) | ||
|
Adjusted EBITDA (non-GAAP) and Adjusted Pro Forma EBITDA (non-GAAP) (2) |
|
$ |
302 |
|
$ |
373 |
|
|
|
|
|
|
|
| ||
|
Operating Revenue - GAAP |
|
$ |
793 |
|
$ |
930 |
|
|
SuperMedia revenue excluded from GAAP revenue (9) |
|
— |
|
30 |
| ||
|
Operating Revenue - GAAP and Pro Forma Operating Revenue (non-GAAP) |
|
$ |
793 |
|
$ |
960 |
|
|
|
|
|
|
|
| ||
|
Operating income margin (10) |
|
8.6 |
% |
1.3 |
% | ||
|
Impact of depreciation and amortization |
|
26.3 |
% |
34.6 |
% | ||
|
EBITDA margin (non-GAAP) (11) |
|
34.9 |
% |
35.9 |
% | ||
|
Impact of adjustments and pro forma Items |
|
3.2 |
% |
3.0 |
% | ||
|
Adjusted EBITDA (non-GAAP) and Adjusted Pro Forma EBITDA margin (non-GAAP) (12) |
|
38.1 |
% |
38.9 |
% | ||
|
Full Year 2015 Guidance |
|
Low |
|
High |
| ||
|
|
|
|
|
|
| ||
|
Operating Income - GAAP |
|
$ |
60 |
|
$ |
90 |
|
|
Add backs: |
|
|
|
|
| ||
|
Depreciation and amortization |
|
405 |
|
405 |
| ||
|
Non-GAAP adjustments |
|
45 |
|
45 |
| ||
|
Adjusted EBITDA (non-GAAP) (2) |
|
$ |
510 |
|
$ |
540 |
|
Note: Please see accompanying reconciliation end notes.
|
Dex Media, Inc. |
Schedule D |
|
Reconciliation of Non-GAAP Measures |
|
|
|
(dollars in millions) |
|
Unaudited |
|
Three Mos. Ended |
|
Three Mos. Ended |
| ||
|
|
|
|
|
|
| ||
|
Net (Loss) - GAAP |
|
$ |
(42 |
) |
$ |
(85 |
) |
|
Add/(subtract) non-operating items: |
|
|
|
|
| ||
|
Provision (benefit) for income taxes |
|
(2 |
) |
— |
| ||
|
Interest expense, net |
|
87 |
|
90 |
| ||
|
Gain on early extinguishment of debt (3) |
|
(1 |
) |
— |
| ||
|
Operating Income - GAAP |
|
42 |
|
5 |
| ||
|
Depreciation and amortization |
|
103 |
|
161 |
| ||
|
EBITDA (non-GAAP) (1) |
|
145 |
|
166 |
| ||
|
|
|
|
|
|
| ||
|
Adjustments and pro forma items: |
|
|
|
|
| ||
|
Merger integration costs (5) |
|
— |
|
8 |
| ||
|
Business transformation costs (6) |
|
15 |
|
— |
| ||
|
Long term incentive compensation (7) |
|
(1 |
) |
2 |
| ||
|
Adjusted EBITDA (non-GAAP) (2) |
|
$ |
159 |
|
$ |
176 |
|
|
|
|
|
|
|
| ||
|
Operating Revenue - GAAP |
|
$ |
387 |
|
$ |
474 |
|
|
|
|
|
|
|
| ||
|
Operating income margin (10) |
|
10.9 |
% |
1.1 |
% | ||
|
Impact of depreciation and amortization |
|
26.6 |
% |
33.9 |
% | ||
|
EBITDA margin (non-GAAP) (11) |
|
37.5 |
% |
35.0 |
% | ||
|
Impact of adjustments and pro forma Items |
|
3.6 |
% |
2.1 |
% | ||
|
Adjusted EBITDA (non-GAAP) (12) |
|
41.1 |
% |
37.1 |
% | ||
Note: Please see accompanying reconciliation end notes.
|
Dex Media, Inc. |
Schedule E |
|
Consolidated Balance Sheets |
|
|
|
|
|
Reported (GAAP) |
|
|
|
|
|
|
(dollars in millions) |
|
Unaudited |
|
June 30, 2015 |
|
December 31, 2014 |
| ||
|
|
|
|
|
|
| ||
|
Assets |
|
|
|
|
| ||
|
Current assets |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
191 |
|
$ |
171 |
|
|
Accounts receivable, net of allowances of $27 and $30 |
|
131 |
|
151 |
| ||
|
Deferred directory costs |
|
136 |
|
161 |
| ||
|
Prepaid expenses and other |
|
18 |
|
14 |
| ||
|
Total current assets |
|
476 |
|
497 |
| ||
|
Fixed assets and capitalized software, net |
|
45 |
|
64 |
| ||
|
Goodwill |
|
315 |
|
315 |
| ||
|
Intangible assets, net |
|
608 |
|
794 |
| ||
|
Pension assets |
|
44 |
|
45 |
| ||
|
Other non-current assets |
|
6 |
|
7 |
| ||
|
Total Assets |
|
$ |
1,494 |
|
$ |
1,722 |
|
|
|
|
|
|
|
| ||
|
Liabilities and Shareholders’ (Deficit) |
|
|
|
|
| ||
|
Current liabilities |
|
|
|
|
| ||
|
Current maturities of long-term debt |
|
$ |
124 |
|
$ |
124 |
|
|
Accounts payable and accrued liabilities |
|
122 |
|
167 |
| ||
|
Accrued interest |
|
20 |
|
20 |
| ||
|
Deferred revenue |
|
76 |
|
93 |
| ||
|
Total current liabilities |
|
342 |
|
404 |
| ||
|
Long-term debt |
|
2,211 |
|
2,272 |
| ||
|
Employee benefit obligations |
|
118 |
|
127 |
| ||
|
Deferred tax liabilities |
|
28 |
|
30 |
| ||
|
Unrecognized tax benefits |
|
11 |
|
11 |
| ||
|
Other liabilities |
|
3 |
|
— |
| ||
|
|
|
|
|
|
| ||
|
Stockholders’ (deficit): |
|
|
|
|
| ||
|
Common stock, par value $.001 per share, authorized - 300,000,000 shares: issued and outstanding -17,566,247 at June 30, 2015 and 17,608,580 at December 31, 2014 |
|
— |
|
— |
| ||
|
Additional paid-in capital |
|
1,556 |
|
1,554 |
| ||
|
Retained (deficit) |
|
(2,692 |
) |
(2,591 |
) | ||
|
Accumulated other comprehensive (loss) |
|
(83 |
) |
(85 |
) | ||
|
Total shareholders’ (deficit) |
|
(1,219 |
) |
(1,122 |
) | ||
|
Total Liabilities and Shareholders’ (Deficit) |
|
$ |
1,494 |
|
$ |
1,722 |
|
|
Dex Media, Inc. |
Schedule F |
|
Consolidated Statements of Cash Flows |
|
|
Reported (GAAP) and Non-GAAP Financial Reconciliation - Free Cash Flow |
|
|
|
|
|
|
(dollars in millions) |
|
|
|
Six Mos. Ended |
|
Six Mos. Ended |
|
|
| |||
|
Unaudited |
|
6/30/15 |
|
6/30/14 |
|
$ Change |
| |||
|
Cash Flows from Operating Activities |
|
|
|
|
|
|
| |||
|
Net (loss) |
|
$ |
(101 |
) |
$ |
(167 |
) |
$ |
66 |
|
|
Reconciliation of net (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
| |||
|
Depreciation and amortization |
|
209 |
|
322 |
|
(113 |
) | |||
|
Provision for deferred income taxes |
|
(4 |
) |
(5 |
) |
1 |
| |||
|
Provision for bad debts |
|
8 |
|
15 |
|
(7 |
) | |||
|
Non-cash interest expense |
|
53 |
|
45 |
|
8 |
| |||
|
Stock-based compensation expense |
|
1 |
|
2 |
|
(1 |
) | |||
|
Employee retiree benefits |
|
2 |
|
(16 |
) |
18 |
| |||
|
Gain on early extinguishment of debt |
|
(1 |
) |
— |
|
(1 |
) | |||
|
Changes in assets and liabilities: |
|
|
|
|
|
|
| |||
|
Accounts receivable |
|
11 |
|
35 |
|
(24 |
) | |||
|
Deferred directory costs |
|
25 |
|
8 |
|
17 |
| |||
|
Other current assets |
|
— |
|
5 |
|
(5 |
) | |||
|
Accounts payable and accrued liabilities |
|
(66 |
) |
(41 |
) |
(25 |
) | |||
|
Other items, net |
|
(1 |
) |
(1 |
) |
— |
| |||
|
Net cash provided by operating activities |
|
136 |
|
202 |
|
(66 |
) | |||
|
|
|
|
|
|
|
|
| |||
|
Cash Flows from Investing Activities |
|
|
|
|
|
|
| |||
|
Additions to fixed assets and capitalized software |
|
(9 |
) |
(9 |
) |
— |
| |||
|
Sales of fixed assets |
|
5 |
|
— |
|
5 |
| |||
|
Net cash (used in) investing activities |
|
(4 |
) |
(9 |
) |
5 |
| |||
|
|
|
|
|
|
|
|
| |||
|
Cash Flows from Financing Activities |
|
|
|
|
|
|
| |||
|
Debt repayments |
|
(107 |
) |
(202 |
) |
95 |
| |||
|
Debt issuance costs and other financing items, net |
|
(5 |
) |
(1 |
) |
(4 |
) | |||
|
Net cash (used in) financing activities |
|
(112 |
) |
(203 |
) |
91 |
| |||
|
Increase (decrease) in cash and cash equivalents |
|
$ |
20 |
|
$ |
(10 |
) |
$ |
30 |
|
|
Cash and cash equivalents, beginning of year |
|
171 |
|
156 |
|
15 |
| |||
|
Cash and cash equivalents, end of period |
|
$ |
191 |
|
$ |
146 |
|
$ |
45 |
|
|
|
|
Six Mos. Ended |
|
Six Mos. Ended |
|
|
| |||
|
Non-GAAP Financial Reconciliation - Free Cash Flow |
|
6/30/15 |
|
6/30/14 |
|
$ Change |
| |||
|
Unaudited |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
| |||
|
Net cash provided by operating activities - GAAP |
|
$ |
136 |
|
$ |
202 |
|
$ |
(66 |
) |
|
Less: Additions to fixed assets and capitalized software |
|
(9 |
) |
(9 |
) |
— |
| |||
|
Free Cash Flow (non-GAAP) |
|
$ |
127 |
|
$ |
193 |
|
$ |
(66 |
) |
|
Dex Media, Inc. |
Schedule G |
|
|
|
|
Metrics |
|
|
Advertising Sales |
|
Three Mos. Ended |
|
Three Mos. Ended |
|
Six Mos. Ended |
|
Six Mos. Ended |
|
|
Unaudited |
|
6/30/15 |
|
6/30/14 |
|
6/30/15 |
|
6/30/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Print Products Sales |
|
|
|
|
|
|
|
|
|
|
% Change year-over-year |
|
(22.8 |
)% |
(20.5 |
)% |
(24.6 |
)% |
(20.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Digital Sales |
|
|
|
|
|
|
|
|
|
|
% Change year-over-year |
|
(22.1 |
)% |
12.4 |
% |
(25.4 |
)% |
11.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total Advertising Sales(1) |
|
|
|
|
|
|
|
|
|
|
% Change year-over-year |
|
(22.5 |
)% |
(10.0 |
)% |
(24.9 |
)% |
(11.4 |
)% |
Notes:
(1) Advertising sales is an operating measure which represents the annual contract value of print directories published and digital contracts sold. It is important to distinguish advertising sales from revenue, which under GAAP are recognized under the deferral and amortization method. Advertising sales are a leading indicator of revenue recognition.
|
Other Metrics |
|
Three Mos. Ended |
|
Three Mos. Ended |
|
Six Mos. Ended |
|
Six Mos. Ended |
|
|
Unaudited |
|
6/30/15 |
|
6/30/14 |
|
6/30/15 |
|
6/30/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Revenue Sourced from Digital Solutions |
|
34 |
% |
29 |
% |
33 |
% |
28 |
% |
|
|
|
As of |
|
As of |
|
|
|
|
|
|
Unaudited |
|
6/30/15 |
|
6/30/14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Clients with a Digital Relationship |
|
39 |
% |
36 |
% |
|
|
|
|
|
Dex Media, Inc. |
Schedule H |
|
Reconciliation of Non-GAAP Measures End Notes |
|
|
(1) |
|
EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization. |
|
|
|
|
|
(2) |
|
Adjusted EBITDA is a non-GAAP measure that adjusts EBITDA for certain unique costs. Adjusted Pro Forma EBITDA is a non-GAAP measure that adjusts EBITDA for certain unique costs and pro forma items. |
|
|
|
|
|
|
|
Adjusted Pro Forma results for 2014 reflect the combination of Dex One and SuperMedia as if the transaction had been consummated prior to January 1, 2012 and reflect certain other adjustments, including adjustments to exclude the effects of purchase accounting, merger integration costs, business transformation costs, long term incentive compensation and employee benefit plan amendments. Pro forma adjusted results do not necessarily reflect what the underlying operational or financial performance of Dex Media would have been had the Dex One / SuperMedia merger transaction been consummated prior to January 1, 2012. |
|
|
|
|
|
(3) |
|
Gain on early extinguishments of debt represents the gain associated with the purchase of a portion of the Company’s debt below par value. |
|
|
|
|
|
(4) |
|
This pro forma adjustment represents the 2014 EBITDA results of SuperMedia that as a result of acquisition accounting, were not included in the GAAP results of Dex Media. |
|
|
|
|
|
(5) |
|
Merger integration costs represent costs incurred to achieve synergies related to the merger of Dex One and SuperMedia. |
|
|
|
|
|
(6) |
|
Business transformation costs represent organizational restructuring costs incurred to transform the Company by launching virtual sales offices, enabling the Company to eliminate field sales offices, the automation of the sales process, integration of systems to eliminate duplicative systems and workforce reductions. |
|
|
|
|
|
(7) |
|
Long term incentives include stock based compensation, other long term incentive compensation and the value creation programs. |
|
|
|
|
|
(8) |
|
These adjustments for 2014 include credits to expense related to pretax gains associated with employee benefit plan amendments. |
|
|
|
|
|
(9) |
|
This pro forma adjustment represents the revenue results of SuperMedia that as a result of acquisition accounting, were not included in the 2014 GAAP results of Dex Media. |
|
|
|
|
|
(10) |
|
Operating income margin is calculated by dividing operating income by operating revenue. |
|
|
|
|
|
(11) |
|
EBITDA margin (non-GAAP) is calculated by dividing EBITDA (non-GAAP) by GAAP operating revenue. |
|
|
|
|
|
(12) |
|
Adjusted EBITDA margin (non-GAAP) is calculated by dividing Adjusted EBITDA (non-GAAP) by operating revenue. Adjusted Pro Forma EBITDA margin is calculated by dividing Adjusted Pro Forma EBITDA (non-GAAP) by Pro Forma operating revenue (non-GAAP). |