Thryv Holdings, Inc. - FORM 8-K - EX-99.4 - December 15, 2015

Attached files

file filename
8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - Thryv Holdings, Inc.a15-21744_18k.htm
EX-99.1 - EX-99.1 - Thryv Holdings, Inc.a15-21744_1ex99d1.htm
EX-99.3 - EX-99.3 - Thryv Holdings, Inc.a15-21744_1ex99d3.htm
EX-99.2 - EX-99.2 - Thryv Holdings, Inc.a15-21744_1ex99d2.htm
EX-10.1 - EX-10.1 - Thryv Holdings, Inc.a15-21744_1ex10d1.htm

Exhibit 99.4

 

Dex Media East, Inc.

2014 Ad Sales Growth

Compared to 2013

 

 

 

December 31, 2014

 

December 31, 2014

 

 

 

QTD

 

YTD

 

Print Ad Sales

 

-19

%

-19

%

Digital Ad Sales

 

11

%

12

%

Total Ad Sales

 

-8

%

-11

%

 

Dex Media East, Inc.

Directly Attributable Contribution Margin

For the Three and Twelve Months Ended December 31, 2014

($ millions)

 

Q4 2014

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

41

 

 

 

$

19

 

 

 

Less: Directly Attributable Costs

 

$

7

 

 

 

$

8

 

 

 

Directly Attributable Contribution Margin

 

$

34

 

82.9

%

$

11

 

57.9

%

 

YTD December 2014

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

175

 

 

 

$

77

 

 

 

Less: Directly Attributable Costs

 

$

30

 

 

 

$

32

 

 

 

Directly Attributable Contribution Margin

 

$

145

 

82.9

%

$

45

 

58.4

%

 


 

Dex Media West, Inc.

2014 Ad Sales Growth

Compared to 2013

 

 

 

December 31, 2014

 

December 31, 2014

 

 

 

QTD

 

YTD

 

Print Ad Sales

 

-23

%

-20

%

Digital Ad Sales

 

8

%

7

%

Total Ad Sales

 

-16

%

-13

%

 

Dex Media West, Inc.

Directly Attributable Contribution Margin

For the Three and Twelve Months Ended December 31, 2014

($ millions)

 

Q4 2014

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

45

 

 

 

$

20

 

 

 

Less: Directly Attributable Costs

 

$

9

 

 

 

$

8

 

 

 

Directly Attributable Contribution Margin

 

$

36

 

80.0

%

$

12

 

60.0

%

 

YTD December 2014

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

192

 

 

 

$

85

 

 

 

Less: Directly Attributable Costs

 

$

34

 

 

 

$

37

 

 

 

Directly Attributable Contribution Margin

 

$

158

 

82.3

%

$

48

 

56.5

%

 


 

R.H. Donnelley Inc.

2014 Ad Sales Growth

Compared to 2013

 

 

 

December 31, 2014

 

December 31, 2014

 

 

 

QTD

 

YTD

 

Print Ad Sales

 

-23

%

-21

%

Digital Ad Sales

 

6

%

9

%

Total Ad Sales

 

-15

%

-12

%

 

R.H. Donnelley Inc.

Directly Attributable Contribution Margin

For the Three and Twelve Months Ended December 31, 2014

($ millions)

 

Q4 2014

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

60

 

 

 

$

32

 

 

 

Less: Directly Attributable Costs

 

$

11

 

 

 

$

12

 

 

 

Directly Attributable Contribution Margin

 

$

49

 

81.7

%

$

20

 

62.5

%

 

YTD December 2014

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

259

 

 

 

$

130

 

 

 

Less: Directly Attributable Costs

 

$

49

 

 

 

$

53

 

 

 

Directly Attributable Contribution Margin

 

$

211

 

81.5

%

$

77

 

59.2

%

 


 

Dex Media East, Inc.

2015 Ad Sales Growth

Compared to 2014

 

 

 

March 31, 2015

 

 

 

QTR

 

Print Ad Sales

 

-30

%

Digital Ad Sales

 

-22

%

Total Ad Sales

 

-28

%

 

Dex Media East, Inc.

Directly Attributable Contribution Margin

For the Quarter Ended March 31, 2015

($ millions)

 

Q1 2015

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

38

 

 

 

$

19

 

 

 

Less: Directly Attributable Costs

 

$

7

 

 

 

$

10

 

 

 

Directly Attributable Contribution Margin

 

$

31

 

81.6

%

$

9

 

47.4

%

 


 

Dex Media West, Inc.

2015 Ad Sales Growth

Compared to 2014

 

 

 

March 31, 2015

 

 

 

QTR

 

Print Ad Sales

 

-23

%

Digital Ad Sales

 

-26

%

Total Ad Sales

 

-24

%

 

Dex Media West, Inc.

Directly Attributable Contribution Margin

For the Quarter Ended March 31, 2015

($ millions)

 

Q1 2015

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

41

 

 

 

$

20

 

 

 

Less: Directly Attributable Costs

 

$

7

 

 

 

$

10

 

 

 

Directly Attributable Contribution Margin

 

$

34

 

82.9

%

$

10

 

50.0

%

 


 

R.H. Donnelley Inc.

2015 Ad Sales Growth

Compared to 2014

 

 

 

March 31, 2015
QTR

 

Print Ad Sales

 

-24

%

Digital Ad Sales

 

-23

%

Total Ad Sales

 

-24

%

 

R.H. Donnelley Inc.

Directly Attributable Contribution Margin

For the Quarter Ended March 31, 2015

($ millions)

 

Q1 2015

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

55

 

 

 

$

31

 

 

 

Less: Directly Attributable Costs

 

$

9

 

 

 

$

14

 

 

 

Directly Attributable Contribution Margin

 

$

46

 

83.6

%

$

17

 

54.8

%

 


 

SuperMedia, Inc.

2015 Ad Sales Growth

Compared to 2014

 

 

 

March 31, 2015

 

 

 

QTR

 

Print Ad Sales

 

-26

%

Digital Ad Sales

 

-35

%

Total Ad Sales

 

-29

%

 

SuperMedia, Inc.

Directly Attributable Contribution Margin

For the Quarter Ended March 31, 2015

($ millions)

 

Q1 2015

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

139

 

 

 

$

62

 

 

 

Less: Directly Attributable Costs

 

$

26

 

 

 

$

34

 

 

 

Directly Attributable Contribution Margin

 

$

113

 

81.2

%

$

28

 

45.2

%

 


 

Dex Media East, Inc.

2015 Ad Sales Growth

Compared to 2014

 

 

 

June 30, 2015

 

June 30, 2015

 

 

 

QTD

 

YTD

 

Print Ad Sales

 

-18

%

-25

%

Digital Ad Sales

 

-10

%

-15

%

Total Ad Sales

 

-15

%

-22

%

 

Dex Media East, Inc.

Directly Attributable Contribution Margin

For the Three and Six Months Ended June 30, 2015

($ millions)

 

Q2 2015

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

36

 

 

 

$

18

 

 

 

Less: Directly Attributable Costs

 

$

6

 

 

 

$

9

 

 

 

Directly Attributable Contribution Margin

 

$

30

 

83.3

%

$

9

 

50.0

%

 

YTD June 2015

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

74

 

 

 

$

37

 

 

 

Less: Directly Attributable Costs

 

$

13

 

 

 

$

19

 

 

 

Directly Attributable Contribution Margin

 

$

61

 

82.4

%

$

18

 

48.6

%

 


 

Dex Media West, Inc.

2015 Ad Sales Growth

Compared to 2014

 

 

 

June 30, 2015

 

June 30, 2015

 

 

 

QTD

 

YTD

 

Print Ad Sales

 

-16

%

-21

%

Digital Ad Sales

 

-24

%

-25

%

Total Ad Sales

 

-21

%

-23

%

 

Dex Media West, Inc.

Directly Attributable Contribution Margin

For the Three and Six Months Ended June 30, 2015

($ millions)

 

Q2 2015

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

39

 

 

 

$

20

 

 

 

Less: Directly Attributable Costs

 

$

7

 

 

 

$

9

 

 

 

Directly Attributable Contribution Margin

 

$

32

 

82.1

%

$

11

 

55.0

%

 

YTD June 2015

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

80

 

 

 

$

40

 

 

 

Less: Directly Attributable Costs

 

$

14

 

 

 

$

19

 

 

 

Directly Attributable Contribution Margin

 

$

66

 

82.5

%

$

21

 

52.5

%

 


 

R.H. Donnelley Inc.

2015 Ad Sales Growth

Compared to 2014

 

 

 

June 30, 2015

 

June 30, 2015

 

 

 

QTD

 

YTD

 

Print Ad Sales

 

-22

%

-23

%

Digital Ad Sales

 

-16

%

-19

%

Total Ad Sales

 

-20

%

-21

%

 

R.H. Donnelley Inc.

Directly Attributable Contribution Margin

For the Three and Six Months Ended June 30, 2015

($ millions)

 

Q2 2015

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

52

 

 

 

$

32

 

 

 

Less: Directly Attributable Costs

 

$

8

 

 

 

$

14

 

 

 

Directly Attributable Contribution Margin

 

$

44

 

84.6

%

$

18

 

56.3

%

 

YTD June 2015

 

Print

 

Margin %

 

Digital

 

Margin %

 

Revenue - Amortized

 

$

108

 

 

 

$

62

 

 

 

Less: Directly Attributable Costs

 

$

18

 

 

 

$

27

 

 

 

Directly Attributable Contribution Margin

 

$

90

 

83.3

%

$

35

 

56.5

%

 


 

Dex Media

GAAP Operating Costs Detail

June 2015 YTD

(in millions)

 

 

 

SuperMedia Inc.

 

 

 

 

 

R.H. Donnelley,

 

 

 

Consolidated

 

 

 

and Subsidiaries

 

Dex East, Inc.

 

Dex West, Inc.

 

Inc.

 

Dex Media Inc.

 

Dex Media

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Operating Costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Commissions

 

29

 

8

 

9

 

12

 

—

 

58

 

Print and Distribution

 

35

 

10

 

11

 

13

 

—

 

69

 

Sales Employee Related Costs

 

24

 

7

 

6

 

11

 

—

 

48

 

Depreciation and Amortization

 

67

 

43

 

52

 

37

 

—

 

199

 

Stewardship

 

—

 

—

 

—

 

—

 

5

 

5

 

Other (a)

 

24

 

6

 

7

 

6

 

—

 

43

 

Total Direct Operating Costs:

 

179

 

74

 

85

 

79

 

5

 

422

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shared Costs

 

152

 

42

 

45

 

64

 

—

 

303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Costs

 

331

 

116

 

130

 

143

 

5

 

725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense, Net

 

101

 

10

 

14

 

29

 

18

 

172

 

 

(a) occupancy expense, bad debt, bank fees and sales employee expense reimbursements

 


 

Dex Media

GAAP Operating Costs Detail

2014

(in millions)

 

 

 

SuperMedia Inc.

 

 

 

 

 

R.H. Donnelley,

 

 

 

Consolidated

 

 

 

and Subsidiaries

 

Dex East, Inc.

 

Dex West, Inc.

 

Inc.

 

Dex Media Inc.

 

Dex Media

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Operating Costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Commissions

 

69

 

17

 

19

 

26

 

—

 

131

 

Print and Distribution

 

83

 

24

 

26

 

38

 

—

 

171

 

Sales Employee Related Costs

 

27

 

14

 

18

 

28

 

—

 

87

 

Depreciation and Amortization

 

218

 

125

 

154

 

110

 

—

 

607

 

Stewardship

 

—

 

—

 

—

 

—

 

24

 

24

 

Other (a)

 

50

 

11

 

14

 

20

 

—

 

95

 

Total Direct Operating Costs:

 

447

 

191

 

231

 

222

 

24

 

1,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shared Costs

 

356

 

93

 

106

 

149

 

—

 

704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Costs

 

803

 

284

 

337

 

371

 

24

 

1,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense, Net

 

207

 

23

 

29

 

63

 

34

 

356

 

 

(a) occupancy expense, bad debt, bank fees and sales employee expense reimbursements

 


 

R.H. Donnelley Inc.

Financial Covenant Calculations

December 31, 2014

($ Millions)

 

 

 

1Q14

 

2Q14

 

3Q14

 

4Q14

 

 

Total

 

Consolidated EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Income

 

$

5.7

 

$

(11.6

)

$

(0.8

)

$

(69.8

)

 

$

(76.6

)

(a) Additions (without duplication)

 

 

 

 

 

 

 

 

 

 

—

 

(i) Consolidated interest expense

 

16.2

 

16.1

 

16.1

 

15.1

 

 

63.5

 

(ii) Consolidated income tax expense

 

(15.8

)

4.1

 

(5.3

)

52.1

 

 

35.0

 

(iii) Depreciation and amortization

 

29.4

 

29.2

 

29.1

 

29.0

 

 

116.7

 

(iv) Extraordinary charges or non-cash charges

 

0.1

 

0.1

 

0.1

 

8.4

 

 

8.8

 

(v) Non-recurring charges:

 

 

 

 

 

 

 

 

 

 

—

 

(A) Severance costs associated with restructuring (2015-2016 only) not to exceed $3.5M per year

 

—

 

—

 

—

 

—

 

 

—

 

(B) Investment and commercial banking fees and expenses

 

—

 

—

 

—

 

—

 

 

—

 

(C) Cash premiums, penalties or other payments payable in connection with the early extinguishment or repurchase of debt

 

—

 

—

 

—

 

—

 

 

—
—
—

 

(vi) Specified Charges through 12/31/13 up to $14.7M total

 

—

 

—

 

—

 

—

 

 

—

 

(b) Subtractions (without duplication)

 

 

 

 

 

 

 

 

 

 

—

 

(i) Consolidated interest income

 

—

 

—

 

—

 

—

 

 

—

 

(ii) Extraordinary gains and non-cash gains

 

—

 

—

 

(3.3

)

—

 

 

(3.3

)

Other Adjustments

 

 

 

 

 

 

 

 

 

 

—

 

Fresh start accounting adjustment

 

—

 

—

 

—

 

—

 

 

—

 

Consolidated EBITDA

 

$

35.6

 

$

37.9

 

$

36.0

 

$

34.7

 

 

$

144.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q14

 

2Q14

 

3Q14

 

4Q14

 

 

Total

 

Consolidated Cash Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

(a) Sum of (i) and (ii):

 

 

 

 

 

 

 

 

 

 

 

 

(i) Total cash interest expense

 

 

 

 

 

 

 

 

 

 

 

 

(A) Interest expense per GAAP

 

$

16.2

 

$

16.1

 

$

16.1

 

$

15.1

 

 

$

63.5

 

Less:

 

 

 

 

 

 

 

 

 

 

—

 

(B) Amortization of deferred financing

 

(0.3

)

(0.3

)

(0.3

)

(0.3

)

 

(1.3

)

(C) Swap/cap MTM adjustments

 

—

 

—

 

—

 

—

 

 

—

 

(D) Debt FMV adjustment

 

—

 

—

 

—

 

—

 

 

—

 

Total Cash interest expense

 

$

15.8

 

$

15.8

 

$

15.8

 

$

14.8

 

 

$

62.2

 

(ii) Dividends/Distributions per Section 6.08(a)(iv)

 

3.0

 

—

 

3.2

 

—

 

 

6.2

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

(b) Total cash interest income

 

—

 

—

 

—

 

—

 

 

—

 

Consolidated Cash Interest Expense

 

$

18.9

 

$

15.8

 

$

18.9

 

$

14.8

 

 

$

68.4

 

 

DEBT

 

 

 

4Q14

 

Term loan outstanding

 

$

611.8

 

Cash (up to $25MM)

 

$

(23.1

)

Total Senior Secured Debt

 

$

588.7

 

 

Interest Coverage

 

 

 

 

 

 

 

Actual

 

Minimum

 

Result

 

2.11 x

 

1.10 x

 

Pass

 

 

Total Leverage

 

 

 

Actual

 

Maximum

 

Result

 

4.08 x

 

5.3500 x

 

Pass

 

 


 

R.H. Donnelley Inc.
Financial Covenant Calculations

March 31, 2015

($ Millions)

 

 

 

2Q14

 

3Q14

 

4Q14

 

1Q15

 

 

Total

 

Consolidated EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Net Income

 

$

(11.6

)

$

(0.8

)

$

(69.8

)

$

8.4

 

 

$

(73.8

)

(a) Additions (without duplication)

 

 

 

 

 

 

 

 

 

 

—

 

(i) Consolidated interest expense

 

16.1

 

16.1

 

15.1

 

15.0

 

 

62.4

 

(ii) Consolidated income tax expense

 

4.1

 

(5.3

)

52.1

 

(9.8

)

 

41.1

 

(iii) Depreciation and amortization

 

29.2

 

29.1

 

29.0

 

20.1

 

 

107.4

 

(iv) Extraordinary charges or non-cash charges

 

0.1

 

0.1

 

8.4

 

(3.2

)

 

5.5

 

(v) Non-recurring charges:

 

—

 

—

 

—

 

—

 

 

—

 

(A) Severance costs associated with restructuring (2015-2016 only) not to exceed $3.5M per year

 

—

 

—

 

—

 

—

 

 

—

 

(B) Investment and commercial banking fees and expenses

 

—

 

—

 

—

 

—

 

 

—

 

(C) Cash premiums, penalties or other payments payable in connection with the early extinguishment or repurchase of debt

 

—

 

—

 

—

 

—

 

 

—

 

(vi) Specified Charges through 12/31/13 up to $14.7M total

 

—

 

—

 

—

 

—

 

 

—

 

(b) Subtractions (without duplication)

 

—

 

—

 

—

 

—

 

 

—

 

(i) Consolidated interest income

 

—

 

—

 

—

 

—

 

 

—

 

(ii) Extraordinary gains and non-cash gains

 

—

 

(3.3

)

—

 

—

 

 

(3.3

)

Other Adjustments

 

—

 

—

 

—

 

—

 

 

—

 

Fresh start accounting adjustment

 

—

 

—

 

—

 

—

 

 

—

 

Consolidated EBITDA

 

$

37.9

 

$

36.0

 

$

34.7

 

$

30.7

 

 

$

139.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q14

 

3Q14

 

4Q14

 

1Q15

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Cash Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

(a) Sum of (i) and (ii):

 

 

 

 

 

 

 

 

 

 

 

 

(i) Total cash interest expense

 

 

 

 

 

 

 

 

 

 

 

 

(A) Interest expense per GAAP

 

$

16.1

 

$

16.1

 

$

15.1

 

$

15.0

 

 

$

62.4

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

(B) Amortization of deferred financing

 

(0.3

)

(0.3

)

(0.3

)

(0.3

)

 

(1.3

)

(C) Swap/cap MTM adjustments

 

 

 

 

 

 

 

 

 

 

—

 

(D) Debt FMV adjustment

 

—

 

—

 

—

 

—

 

 

—

 

Total Cash interest expense

 

$

15.8

 

$

15.8

 

$

14.8

 

$

14.7

 

 

$

61.1

 

(ii) Dividends/Distributions per Section 6.08(a)(iv)

 

—

 

3.2

 

—

 

—

 

 

3.2

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

(b) Total cash interest income

 

—

 

—

 

—

 

—

 

 

—

 

Consolidated Cash Interest Expense

 

$

15.8

 

$

18.9

 

$

14.8

 

$

14.7

 

 

$

64.3

 

 

DEBT

 

 

 

1Q2015

 

Term loan outstanding

 

$

604.9

 

Cash (up to $25MM)

 

$

(24.2

)

Total Senior Secured Debt

 

$

580.7

 

 

Interest Coverage

 

 

 

 

 

 

 

Actual

 

Minimum

 

Result

 

2.17 x

 

1.10 x

 

Pass

 

 

Total Leverage

 

 

 

Actual

 

Maximum

 

Result

 

4.1684 x

 

5.3125 x

 

Pass

 

 


 

Dex Media, Inc.

Severance Packages

 

Employee Level /

 

 

 

 

 

 

 

 

Severance Package

 

Effective Date

 

Payout Timeline

 

Payout terms

 

Payout Restrictions

Executive Vice President (“EVP”) and above

 

7/6/14

 

Lump sum payment

 

78 weeks of pay plus 1.5 times target bonus

 

N/A

Non-Bargained employees below EVP

 

11/17/14

 

Lump sum payment

 

(2 times full years of service + prorated year of service) times weekly compensation

 

Minimum: 6 to 26 times weekly compensation (1)
Maximum: 26 to 52 times weekly compensation (2)

CWA Union employees Dex East

 

7/1/14

 

Lump sum payment

 

(2 times full years of service times weekly compensation w/incentive included) + prorated payment (3)

 

Minimum: 4 times weekly compensation
Maximum: 35 times weekly compensation

CWA Union employees Dex West

 

9/15/12 - 3/18/16

 

Lump sum payment

 

Voluntary (4): $1k for each year of employment

Involuntary (5): $2k for each year of employment

 

Voluntary (4)
Minimum : $1k
Maximum: $15k

Involuntary (5)
Minimum : $2k
Maximum : For 25 or more years of service = 1 yr. of salary (but no less than $48k)

IBEW Union employees Dex West

 

6/12/15 - 5/11/18

 

Lump sum payment

 

Voluntary (4): $1k for each year of employment


Involuntary (5): $2k for each year of employment

 

Voluntary (4)
Minimum : $1k
Maximum: $15k

Involuntary (5)
Minimum : $2k
Maximum : For 25 or more years of service = 1 yr. of salary (but no less than $48k)

 

Notes:

 

(1) 6 times weekly compensation is for employees below Director/Division Managers; 26 times weekly compensation is for Directors, AVPs, VPs, Divisional Managers, and Regional VPs

(2) 26 times weekly compensation is for employees below Director/Division Managers; 52 times weekly compensation is for Directors, AVPs, VPs, Divisional Managers, and Regional VPs

(3) If partial year of service is greater than 6 months = 2 times weekly compensation; if partial year is less than 6 months = 1 times weekly compensation

(4) Regular employees who are declared surplus by Company due to lack of work and accept voluntary separation

(5) Regular employees who are declared surplus by Company due to lack of work and who are involuntary separated

 


 

 

 


 

Entity Information

 

·                       Dex Media Inc., Parent of Dex Media, holding company

 

·                       Dex Media Holdings, Inc., holding company for Dex Media East, Inc., Dex Media West, Inc. and Dex Media Services LLC

 

·                       Dex Media Services LLC, pension services for Dex Media East Inc. and Dex Media West Inc.

 

·                       Dex Media East, Inc., operating entity, yellow pages print and digital advertising

 

·                       Dex Media West, Inc., operating entity, yellow pages print and digital advertising

 

·                       Dex One Digital, Inc., national digital advertising services

 

·                       Dex One Services, Inc., management company for Dex Media Inc.

 

·                       R.H. Donnelley, Inc., operating entity, yellow pages print and digital advertising

 

·                       R.H. Donnelley APIL, Inc., management company for R.H. Donnelley, Inc.

 

·                       R.H. Donnelley Corporation, inactive entity

 

·                       SuperMedia Inc., holding company for SuperMedia entities

 

·                       SuperMedia LLC, operating entity, yellow pages print and digital advertising

 

·                       SuperMedia UK, Ltd., disregarded entity providing digital advertising services

 

·                       SuperMedia Sales, Inc., employment services support entity

 

·                       All “BRE LLC’s” (bankruptcy remote entity) are disregarded entities designed to protect related owner entity’s intellectual property

 


 

Items on Balance Sheets of Legal Entities

 

Dex Media, Inc — Cash, Senior subordinated notes, Investment in subs, Accounts payable and other accrued liabilities (Stewardship obligations) Intercompany payable, Taxes, Equity

 

Dex Media Holdings Inc- Investment in subs (DME, DMW, DM Services LLC-2%), Equity

 

Dex Media Services LLC — Intercompany payable, Pension liability, Equity

 

Dex Media East, Inc — Cash, Customer A/R, Deferred directory costs, Intercompany receivable, Fixed assets/Capitalized software, Intangible assets, Accounts payable and other accrued liabilities, Accrued interest, Deferred revenue, Senior secured credit facilities, Taxes, Investment in Sub (DM Services LLC-49%), Equity

 

Dex Media West, Inc — Cash, Customer A/R, Deferred directory costs, Intercompany receivable, Fixed assets/Capitalized software, Intangible assets, Accounts payable and other accrued liabilities, Accrued interest, Deferred revenue, Senior secured credit facilities, Taxes, Investment in Sub (DM Services LLC-49%), Equity

 

Dex One Digital, Inc — Cash, A/R, Intercompany payable, Deferred revenue, Taxes, Equity

 

Dex One Services, Inc- Cash, Prepaid expenses/Other current assets, Intercompany receivable, Fixed assets/Capitalized software, Accounts payable and other accrued liabilities, Employee benefits (no pension), Taxes, Equity

 

R.H.Donnelley, Inc- Cash, Customer A/R, Deferred directory costs, Fixed assets/Capitalized software, Intangible assets, Investment in Subs (R.H. Donnelley, APIL, Inc), Accounts payable and other accrued liabilities, Accrued interest, Deferred revenue, Intercompany payable, Senior secured credit facilities, Pension liability, Taxes, Equity

 

R.H.Donnelley, APIL, Inc- Intercompany receivable, Taxes, Equity

 

R.H.Donnelley Corporation-Inactive

 

SuperMedia Inc- Goodwill, Pension asset, Investment in subs (SuperMedia LLC), Intercompany interest payable (SuperMedia LLC), Intercompany note payable (SuperMedia LLC), Intercompany payable, Senior secured credit facilities, Pension liability, Taxes, Equity

 

SuperMedia LLC-Cash, Customer A/R, Deferred directory costs, Intercompany interest receivable (SuperMedia Inc), Intercompany note receivable (SuperMedia Inc), Prepaid expenses and other, Fixed assets/Capitalized software, Intangible assets, Investment in Subs (SuperMedia Sales, Inc), Accounts payable and other accrued liabilities, Accrued interest, Deferred revenue, Intercompany payable (SuperMedia Sales), Intercompany payable, Senior secured credit facilities, Other employee benefits (LTD, Supplemental Employee Retirement Liability), Taxes, Equity

 

SuperMedia UK, Ltd- Immaterial assets/liabilities

 

SuperMedia Sales, Inc- Fixed assets, Intercompany note receivable (SuperMedia LLC), Intercompany payable, Accounts payable and other accrued liabilities, Taxes, Equity

 

All BRE LLC’s do not have any assets/liabilities on their books.

 

Note:

 

Accounts payable and accrued expenses can include:

 

Accounts payable

 

Accrued salaries and wages, including accrued severance

 

Accrued taxes

 

Accrued expenses

 

Customer refunds, advance payments and other

 


 

Dex Media

GAAP Operating Costs Detail

June 2015 YTD

(in millions)

 

 

 

SuperMedia Inc.

 

 

 

 

 

R.H. Donnelley,

 

 

 

Consolidated

 

 

 

and Subsidiaries

 

Dex East, Inc.

 

Dex West, Inc.

 

Inc.

 

Dex Media Inc.

 

Dex Media

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Operating Costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Commissions

 

29

 

8

 

9

 

12

 

—

 

58

 

Print and Distribution

 

35

 

10

 

11

 

13

 

—

 

69

 

Sales Employee Related Costs

 

24

 

7

 

6

 

11

 

—

 

48

 

Depreciation and Amortization

 

67

 

43

 

52

 

37

 

—

 

199

 

Stewardship

 

—

 

—

 

—

 

—

 

5

 

5

 

Other (a)

 

24

 

6

 

7

 

6

 

—

 

43

 

Total Direct Operating Costs:

 

179

 

74

 

85

 

79

 

5

 

422

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shared Costs

 

152

 

42

 

45

 

64

 

—

 

303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Costs

 

331

 

116

 

130

 

143

 

5

 

725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense, Net

 

101

 

10

 

14

 

29

 

18

 

172

 

 

(a) occupancy expense, bad debt, bank fees and sales employee expense reimbursements

 


 

Dex Media

GAAP Operating Costs Detail

2014

(in millions)

 

 

 

SuperMedia Inc.

 

 

 

 

 

R.H. Donnelley,

 

 

 

Consolidated

 

 

 

and Subsidiaries

 

Dex East, Inc.

 

Dex West, Inc.

 

Inc.

 

Dex Media Inc.

 

Dex Media

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Operating Costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Commissions

 

69

 

17

 

19

 

26

 

—

 

131

 

Print and Distribution

 

83

 

24

 

26

 

38

 

—

 

171

 

Sales Employee Related Costs

 

27

 

14

 

18

 

28

 

—

 

87

 

Depreciation and Amortization

 

218

 

125

 

154

 

110

 

—

 

607

 

Stewardship

 

—

 

—

 

—

 

—

 

24

 

24

 

Other(a)

 

50

 

11

 

14

 

20

 

—

 

95

 

Total Direct Operating Costs:

 

447

 

191

 

231

 

222

 

24

 

1,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shared Costs

 

356

 

93

 

106

 

149

 

—

 

704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Costs

 

803

 

284

 

337

 

371

 

24

 

1,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense, Net

 

207

 

23

 

29

 

63

 

34

 

356

 

 

(a) occupancy expense, bad debt, bank fees and sales employee expense reimbursements

 


 

Dex Media

Intercompany Detail

Excluding Tax Sharing Agreement

As of June 30, 2015

 

 

 

 

 

 

 

Dex Media Holdings

 

Shared Services Funding

 

 

 

 

 

Stewardship Costs

 

Parent Bond Interest

 

Group Activity

 

Activity

 

Intercompany Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

Dex Media Inc.

 

(44,607,108.00

)

(25,587,436.00

)

—

 

—

 

(70,194,544.00

)

R.H. Donnelly, Inc.

 

9,050,438.00

 

9,467,345.00

 

—

 

(3,700,813.00

)

14,816,970.00

 

Dex Media Holdings Inc.

 

—

 

—

 

(11,767.00

)

—

 

(11,767.00

)

Dex Media East, Inc.

 

6,212,811.50

 

6,908,605.00

 

3,981,414.50

 

(4,266,805.00

)

12,836,026.00

 

Dex Media West, Inc.

 

6,566,116.50

 

9,211,486.00

 

3,832,790.50

 

(2,689,157.00

)

16,921,236.00

 

Dex Media Service LLC

 

—

 

—

 

(7,802,438.00

)

—

 

(7,802,438 00

)

Dex One Digital, Inc.

 

—

 

—

 

—

 

(661,142.00

)

(661,142.00

)

SuperMedia Inc and Subsidiaries

 

22,777,742.00

 

—

 

—

 

(17,001,683.00

)

5,776,059.00

 

Eliminations/Other

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Dex One Service, Inc.

 

—

 

—

 

—

 

28,319,600.00

 

28,319,600.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

—

 

—

 

—

 

—

 

 

Notes:

 

Stewardship, parent bond interest and pension activity will continue to increase as there is no mechanism to settle these intercompanies Shared funding activity will go up and down as various liabilities are accrued and paid throughout the year

 


 

Dex Media Inc. & Subsidiaries - Intercompany (I/C) Balance Summary

June 30, 2015

Excludes Tax Sharing Agreement

 

 

 

I/C Activity to be Settled with Cash

 

I/C Activity to be Settled with Non-Cash Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2014

 

 

 

 

 

 

 

 

 

Q2 2015

 

 

 

 

 

Q4 2014

 

 

 

 

 

 

 

 

 

Q2 2015

 

Ending Balance

 

 

 

 

 

 

 

 

 

Ending Balance

 

Q2 2015

 

 

 

Ending Balance

 

Net

 

Net

 

Net

 

Net

 

Ending Balance

 

to be Settled with

 

Net

 

Net

 

Net

 

Net

 

to be Settled with

 

Ending Balance

 

 

 

to be Settled with

 

I/C Activity

 

I/C Activity

 

I/C Activity

 

I/C Activity

 

to be Settled with

 

Non-Cash

 

I/C Activity

 

I/C Activity

 

I/C Activity

 

I/C Activity

 

Non-Cash

 

Cash &

 

Due From (Due To) Dex One Service, Inc.

 

Cash

 

Q1

 

Q2

 

Q3

 

Q4

 

Cash

 

Distribution

 

Q1

 

Q2

 

Q3

 

Q4

 

Distribution

 

Non-Cash

 

Dex Media Inc.

 

—

 

—

 

 

 

 

 

 

 

—

 

(49,553,632

)

(16,686,275

)

(3,954,637

)

 

 

 

 

(70,194,544

)

(70,194,544

)

R.H. Donnelly, Inc.

 

(4,166,476

)

4,886,093

 

(4,420,431

)

 

 

 

 

(3,700,813

)

13,080,495

 

5,341,372

 

95,916

 

 

 

 

 

18,517,783

 

14,816,969

 

Dex Media Holdings Inc. (120)\

 

—

 

 

 

—

 

 

 

 

 

—

 

(11,686

)

(80

)

 

 

 

 

 

 

(11,767

)

(11,767

)

Dex Media East, Inc.

 

(19,259,396

)

2,308,654

 

12,683,937

 

 

 

 

 

(4,266,805

)

12,865,929

 

3,848,990

 

387,913

 

 

 

 

 

17,102,831

 

12,836,026

 

Dex Media West, Inc.

 

2,170,477

 

1,827,129

 

(6,686,763

)

 

 

 

 

(2,689,157

)

14,275,279

 

4,022,141

 

1,312,973

 

 

 

 

 

19,610,393

 

16,921,235

 

Dex Media Service LLC

 

—

 

 

 

—

 

 

 

 

 

—

 

(7,989,524

)

(494,950

)

682,036

 

 

 

 

 

(7,802,438

)

(7,802,438

)

Dex One Digital, Inc.

 

(951,385

)

(351,668

)

641,910

 

 

 

 

 

(661,142

)

—

 

—

 

—

 

 

 

 

 

—

 

(661,142

)

SuperMedia Inc and Subsidiaries

 

(33,160,804

)

4,443,726

 

11,715,395

 

 

 

 

 

(17,001,683

)

17,333,139

 

3,968,804

 

1,475,800

 

 

 

 

 

22,777,743

 

5,776,060

 

Eliminations/Other

 

1

 

 

 

 

 

 

 

 

 

1

 

—

 

—

 

—

 

—

 

—

 

—

 

1

 

Total

 

(55,367,583

)

13,113,934

 

13,934,049

 

—

 

—

 

(28,319,600

)

0

 

0

 

0

 

—

 

—

 

1

 

(28,319,599

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dex One Service, Inc. - Due From (Due to)

 

55,367,583

 

(13,113,934

)

(13,934,049

)

—

 

—

 

28,319,600

 

—

 

(0

)

(0

)

—

 

—

 

(1

)

28,319,599

 

Dex Media Inc. Consolidated

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

Notes:

 

Net Intercompany Activity to be Settled in Cash: Disbursements from the Dex One Service funding account are settled with the appropriate entities when the payment clears. This activity reflects expense accruals that will be paid in a subsequent period plus disbursements from the Dex One Service funding account that have not yet been settled with the operating companies minus cash settlements from a prior period.

 

Net Intercompany Activity to be Settled with Non-Cash Distribution: This activity represents certain expenses that are settled through a non-cash dividend or equity adjustment in accordance with the Shared Services Agreement.

 


 

Dex Media Inc. & Subsidiaries - Intercompany Tax Sharing Agreement Balance Summary

June 30, 2015

 

 

 

I/C Tax Sharing Agreement Activity

 

 

 

 

 

 

 

 

 

Q2 2015

 

 

 

 

 

 

 

Net

 

Ending Tax

 

 

 

Q4 2014

 

Net

 

I/C TSA

 

Sharing

 

 

 

Ending

 

I/C TSA Activity

 

Activity

 

Agreement

 

Due From (Due To) Dex One Service, Inc.

 

Balance

 

Q1

 

Q2

 

Balance

 

Dex Media Inc.

 

—

 

(19,860

)

—

 

(19,860

)

R.H. Donnelly, Inc.

 

(3,158,193

)

6,316,059

 

(4,226,013

)

(1,068,147

)

Dex Media Holdings Inc. (120)

 

155,691

 

11,353

 

(144,415

)

22,629

 

Dex Media East, Inc.

 

6,342,020

 

(2,675,895

)

(2,722,367

)

943,759

 

Dex Media West, Inc.

 

7,532,398

 

(4,188,506

)

(2,722,419

)

621,473

 

Dex Media Service LLC

 

(6,791,504

)

(248,544

)

7,040,049

 

1

 

Dex One Digital, Inc.

 

(11,712

)

803

 

11,258

 

349

 

SuperMedia Inc. and Subsidiaries

 

(3,828,019

)

(6,366,625

)

9,935,120

 

(259,524

)

Eliminations/Other

 

(1

)

1

 

1

 

1

 

Total

 

240,679

 

(7,171,213

)

7,171,213

 

240,679

 

 

 

 

 

 

 

 

 

 

 

Dex One Service, Inc. - Due From (Due to)

 

(240,679

)

7,171,213

 

(7,171,213

)

(240,679

)

Dex Media Inc. Consolidated

 

—

 

—

 

—

 

—

 

 


 

Confidential Christopher Petrocelli Sep 08, 2015 16:02 Tax Sharing Agreement (TSA) Overview • To provide an overview of the TSA, the following summary is provided: • There are two agreements: one amongst the Dex One group and one between SuperMedia and the Dex One group. • Tax attributes, as defined, include NOLs and current year losses. • Each company with current year taxable income reimburses for attributes utilized to offset its taxable income. • The members of the Dex One group pay 50 cents for each dollar of Dex One group tax attribute utilized. • SuperMedia pays the Dex One group members 75 cents for each dollar of tax attribute utilized. • Any SuperMedia tax attributes utilized by the Dex One group members are reimbursed at 50 cents for each dollar of tax attribute utilized. • Cancellation of debt income (CODI): • Dex One group does not reimburse for tax attributes utilized. • SuperMedia reimburses for attributes utilized to offset taxable income or utilized through tax attribute reduction fan-out. 1 Confidential and Proprietary Information of Dex Media Get found. Get chosen. Get talked about. dex media. Confidential Christopher Petrocelli Sep 08, 2015 16:02

 


Confidential Christopher Petrocelli Sep 08, 2015 16:02 Tax Sharing Agreement (TSA) Overview - Continued • Tax attributes utilized • First, the current year taxable losses of members are utilized, following consolidated return regulations. Second, NOLs are utilized. • The tax attributes utilized are allocated to the members with positive taxable income based on each member’s share of the positive taxable income generated by all members. • Parent losses • The losses are utilized by all members, however, only SuperMedia reimburses for any tax attributes it utilizes. • Dex One Services (DOS) Excess • The Dex One group members with positive current year taxable income share proportionately the Dex One Service excess. • This includes 75% reimbursement for Parent tax attributes that SuperMedia utilized; and • The difference between the current year tax paid in to DOS at 100% by the Dex One group less what the Dex One members are reimbursed for current year taxable losses. • DOS Funding • Any funding of DOS is allocate using the Shared Services cost allocation percentages. 2 Confidential and Proprietary Information of Dex Media Get found. Get chosen. Get talked about. dex media. Confidential Christopher Petrocelli Sep 08, 2015 16:02

 


Confidential Christopher Petrocelli Sep 08, 2015 16:02 Tax Sharing Agreement (TSA) Summary (In thousands) RHD DME DMW SM DOD DMHI Total 2013 Tax Year Settlements, Received/(Paid) Subsequent to Merger* 10,430 8,254 4,427 (23,168) 37 20 - 2014 Tax Year Settlements, Received/(Paid) 8,942 6,351 4,921 (20,242) 4 24 - 2015 Estimated Settlement Receivable/(Payable) (2,238) 1,825 1,171 (765) 1 6 - * Full year 2013 as trued up for filing of 2013 tax returns, less Q1 2013 estimate payment (pre-merger). Confidential Christopher Petrocelli Sep 08, 2015 16:02

 


 

Federal NOLs

 

Dex Media, Inc.

Federal Net Operating Loss - Pre-tax

Balance as of 12/31/2014

(in millions)

 

Estimated Federal Net Operating Loss Balance

 

$

732

 

 

Note 1: All Federal NOLs are at the R.H. Donnelley Inc. silo.

Note2 :  Estimate based on 2014 provision and will be trued up  based on completion of the 2014 Federal Dex Media Inc. Income Tax Return.

 


 

Dex Media

Unitary State NOL Carryforwards (Post Apportionment, Pre-Tax)

Estimated as of 12/31/14

 

By Silo

 

Arizona

 

California

 

Colorado

 

District of

 

Idaho

 

Illinois

 

Iowa

 

Kansas

 

Kentucky

 

Maine

 

Massachusetts

 

Michigan

 

Minnesota

 

Montana

 

Nebraska

 

New Hampshire

 

New Mexico

 

New York

 

North Dakota

 

Oregon

 

Texas

 

Utah

 

Vermont

 

West Virginia

 

Wisconsin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

R.H. Donnelley, Inc.

 

682,368

 

3,016,572

 

144,893,493

 

59

 

1,121,304

 

229,622,460

 

6,306,469

 

41,654,771

 

0

 

93,233

 

0

 

0

 

7,238,639

 

0

 

691,077

 

0

 

83,102

 

79,170,311

 

32,813

 

71,340

 

0

 

2,289,119

 

0

 

111,004

 

24,606

 

Dex Media East, Inc.

 

3,179,791

 

3,973,984

 

18,548,238

 

332

 

2,330,353

 

0

 

56,546,060

 

2,512,559

 

0

 

140,217

 

0

 

0

 

166,771,749

 

5,215,082

 

1,211,240

 

0

 

460,060

 

0

 

839,392

 

122,685

 

0

 

4,892,362

 

0

 

633,900

 

1,032,705

 

Dex Media West, Inc.

 

15,192,684

 

4,908,273

 

17,874,770

 

583

 

7,641,798

 

0

 

1

 

3,066,881

 

0

 

44,330

 

0

 

0

 

11,063,808

 

226,401

 

1,112,951

 

0

 

39,569

 

0

 

20,395

 

829,222

 

0

 

61,553,082

 

0

 

1,115,234

 

22,985

 

SuperMedia, Inc.

 

0

 

0

 

0

 

167,820

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

0

 

58,839

 

309,502

 

Parent and Other

 

1,293,427

 

71,832,688

 

40,471,374

 

106

 

920,559

 

0

 

314,424

 

9,468,177

 

0

 

157,246

 

0

 

0

 

2,362,252

 

0

 

312,209

 

0

 

142,820

 

0

 

53,154

 

117,360

 

0

 

2,397,832

 

0

 

196,480

 

39,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

20,348,270

 

83,731,517

 

221,787,874

 

168,900

 

12,014,014

 

229,622,460

 

63,166,955

 

56,702,388

 

0

 

435,026

 

0

 

0

 

187,436,448

 

5,441,483

 

3,327,478

 

0

 

725,551

 

79,170,311

 

945,753

 

1,140,607

 

0

 

71,132,394

 

0

 

2,115,457

 

1,429,661

 

 

Note 1: Unitary state net operating losses per silo are based on a Tax Sharing Agreement (TSA) view.

 

Note 2: States that track net operating loss on a pre-apportionment basis are presented with the applicable net operating loss at a post-apportionment amount as of December 31, 2014.

 


 

Dex Media

Separate Company State NOL Carryforwards (Post Apportionment, Pre-Tax)

Estimated as of 12/31/14

 

 

By Silo

 

Alabama

 

Connecticut

 

Delaware

 

Florida

 

Georgia

 

Indiana

 

Louisiana

 

Maryland

 

Missouri

 

Mississippi

 

North Carolina

 

New Jersey

 

Ohio

 

Oklahoma

 

Pennsylvania

 

Rhode Island

 

South Carolina

 

Tennessee

 

Virginia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

R.H. Donnelley, Inc.

 

—

 

—

 

—

 

8,159,876

 

—

 

5,499,761

 

—

 

—

 

401

 

—

 

603,150,439

 

23,884,822

 

—

 

—

 

23,736,823

 

—

 

1,134,713

 

22,814,092

 

10,995,200

 

Dex Media East, Inc.

 

—

 

—

 

—

 

167,201

 

—

 

—

 

—

 

—

 

—

 

—

 

544,652

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Dex Media West, Inc.

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

101,230

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

SuperMedia, Inc.

 

40,500

 

2,218

 

129,621

 

3,674,042

 

27,970

 

16,469

 

—

 

1,169,633

 

12,339

 

—

 

—

 

1,059,871

 

—

 

—

 

2,101,779

 

—

 

60,334

 

166,785

 

1,514,900

 

Parent and Other

 

—

 

499,696

 

—

 

81,817

 

—

 

—

 

—

 

—

 

—

 

—

 

27,154,882

 

0

 

—

 

—

 

63,664

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

40,500

 

501,914

 

129,621

 

12,082,937

 

27,970

 

5,516,230

 

—

 

1,169,633

 

12,740

 

—

 

630,951,203

 

24,944,693

 

—

 

—

 

25,902,266

 

—

 

1,195,047

 

22,980,877

 

12,510,101

 

 

Note 1: States that track net operating loss on a pre-apportionment basis are presented with the applicable net operating loss at a post-apportionment amount as of December 31, 2014.

 


 

Summary of Illustrative Analysis of Dex Media, Inc.’s Tax Attributes in the Context of Various Restructuring Scenarios(1)

 

EXHIBIT 1 - PRE/POST TRANSACTION INTANGIBLE ASSET BASIS REDUCTIONS

 

 

 

 

 

Pre-Transaction

 

 

 

Post-Transaction

 

($ in millions)

 

Silo

 

Asset Basis (2)

 

Inc. / (Dec.)

 

Asset Basis (2)

 

2.00x Scenario (1)

 

SuperMedia

 

$

135

 

$

(135

)

$

0

 

 

RHDI

 

59

 

(12

)

47

 

 

Dex East

 

152

 

(100

)

52

 

 

Dex West

 

193

 

(143

)

50

 

2.25x Scenario (1)

 

SuperMedia

 

$

135

 

$

(135

)

$

0

 

 

RHDI

 

59

 

(9

)

50

 

 

Dex East

 

152

 

(81

)

71

 

 

Dex West

 

193

 

(119

)

74

 

2.50x Scenario (1)

 

SuperMedia

 

$

135

 

$

(135

)

$

0

 

 

RHDI

 

59

 

(7

)

52

 

 

Dex East

 

152

 

(62

)

90

 

 

Dex West

 

193

 

(97

)

96

 

2.75x Scenario (1)

 

SuperMedia

 

$

135

 

$

(107

)

$

28

 

 

RHDI

 

59

 

(4

)

55

 

 

Dex East

 

152

 

(40

)

112

 

 

Dex West

 

193

 

(69

)

124

 

3.00x Scenario (1)

 

SuperMedia

 

$

135

 

$

(56

)

$

79

 

 

RHDI

 

59

 

(1

)

58

 

 

Dex East

 

152

 

(19

)

133

 

 

Dex West

 

193

 

(42

)

151

 

 

Notes:

 

(1): Multiples based on 2015E EBITDA of $525mm

 

 

(2): Only inclusive of asset basis subject to a potential CODI reduction

 

 

(1)                                 The valuation multiples disclosed herein were utilized solely for the basis of understanding potential tax consequences of a restructuring of Dex Media, Inc.  These multiples are not intended to provide any stakeholder a valuation of Dex Media, Inc., as a potential valuation is subject to many factors not contemplated in this illustrative analysis.  These valuation multiples are not explicitly or implicitly endorsed by the Management of Dex Media, Inc. or its financial, accounting, and legal advisors.

 


 

EXHIBIT 2 - PRE/POST TRANSACTION DMI STOCK BASIS REDUCTIONS

 

 

 

 

 

Pre-Transaction

 

 

 

Post-Transaction

 

($ in millions)

 

Silo

 

DMI Stock Basis (2)

 

Inc. / (Dec.)

 

DMI Stock Basis (2)

 

2.00x Scenario (1)

 

SuperMedia

 

$

(128

)

$

0

 

$

(128

)

 

RHDI

 

222

 

(61

)

161

 

 

Dex East

 

313

 

(49

)

264

 

 

Dex West

 

607

 

(95

)

512

 

2.25x Scenario (1)

 

SuperMedia

 

$

(65

)

$

0

 

$

(65

)

 

RHDI

 

250

 

(63

)

187

 

 

Dex East

 

333

 

(49

)

284

 

 

Dex West

 

629

 

(94

)

535

 

2.50x Scenario (1)

 

SuperMedia

 

$

(3

)

$

0

 

$

(3

)

 

RHDI

 

277

 

(65

)

212

 

 

Dex East

 

352

 

(50

)

302

 

 

Dex West

 

650

 

(93

)

557

 

2.75x Scenario (1)

 

SuperMedia

 

$

59

 

$

0

 

$

59

 

 

RHDI

 

305

 

(63

)

242

 

 

Dex East

 

372

 

(48

)

324

 

 

Dex West

 

672

 

(86

)

586

 

3.00x Scenario (1)

 

SuperMedia

 

$

121

 

$

0

 

$

121

 

 

RHDI

 

334

 

(61

)

273

 

 

Dex East

 

390

 

(45

)

345

 

 

Dex West

 

693

 

(81

)

612

 

 

Notes:

 

(1): Multiples based on 2015E EBITDA of $525mm

 

 

(2): The assets described in this schedule are in addition to those featured in Exhibit 1

 

EXHIBIT 3 — ADDITIONAL MISCELLANEOUS PRE/POST TRANSACTION BASIS REDUCTIONS

 

($ in millions)

 

Metric

 

Pre-Transaction (2)

 

Inc. / (Dec.)

 

Post-Transaction (2)

 

2.00x Scenario (1)

 

DMI Basis in Depreciable Prop.

 

$

22

 

$

(6

)

$

16

 

 

SPMD Basis in Accounts Rec.

 

80

 

(19

)

61

 

 

RHDI Stock Basis in APIL

 

543

 

(108

)

435

 

2.25x Scenario (1)

 

DMI Basis in Depreciable Prop.

 

$

22

 

$

(5

)

$

17

 

 

SPMD Basis in Accounts Rec.

 

80

 

(19

)

61

 

 

RHDI Stock Basis in APIL

 

543

 

(85

)

458

 

2.50x Scenario (1)

 

DMI Basis in Depreciable Prop.

 

$

22

 

$

(5

)

$

17

 

 

SPMD Basis in Accounts Rec.

 

80

 

(19

)

61

 

 

RHDI Stock Basis in APIL

 

543

 

(62

)

481

 

2.75x Scenario (1)

 

DMI Basis in Depreciable Prop.

 

$

22

 

$

(4

)

$

18

 

 

SPMD Basis in Accounts Rec.

 

80

 

—

 

80

 

 

RHDI Stock Basis in APIL

 

543

 

(35

)

508

 

3.00x Scenario (1)

 

DMI Basis in Depreciable Prop.

 

$

22

 

$

(4

)

$

18

 

 

SPMD Basis in Accounts Rec.

 

80

 

—

 

80

 

 

RHDI Stock Basis in APIL

 

543

 

(9

)

534

 

 

Notes:

 

(1): Multiples based on 2015E EBITDA of $525mm

 

 

(2): The assets described in this schedule are in addition to those featured in Exhibit 1

 


 

EXHIBIT 4 — INTANGIBLE ASSET AMORTIZATION PERIOD (DEX EAST & DEX WEST)

 

($ in millions)

 

Silo

 

Asset Amortization Period

 

2.00x Scenario (1)

 

Dex East

 

2 years

 

 

Dex West

 

3 years

 

2.25x Scenario (1)

 

Dex East

 

2 years

 

 

Dex West

 

3 years

 

2.50x Scenario (1)

 

Dex East

 

2 years

 

 

Dex West

 

3 years

 

2.75x Scenario (1)

 

Dex East

 

2 years

 

 

Dex West

 

3 years

 

3.00x Scenario (1)

 

Dex East

 

2 years

 

 

Dex West

 

3 years

 

 

Notes:

 

(1): Multiples based on 2015E EBITDA of $525mm

 

EXHIBIT 5 — RBIG & 382 LIMITATION DETAIL

 

($ in millions)

 

Silo

 

One-time RBIG (2)

 

Annual RBIG (3)

 

382 Limitation Yr 1

 

382 Limitation Rem. Yrs

 

2.00x Scenario (1)

 

SuperMedia

 

$

198

 

$

19

 

$

—

 

$

—

 

 

RHDI

 

60

 

8

 

—

 

—

 

 

Dex East

 

30

 

—

 

—

 

—

 

 

Dex West

 

45

 

—

 

—

 

—

 

 

Consolidated

 

NA

 

NA

 

368

 

35

 

2.25x Scenario (1)

 

SuperMedia

 

$

198

 

$

23

 

$

—

 

$

—

 

 

RHDI

 

60

 

10

 

—

 

—

 

 

Dex East

 

30

 

—

 

—

 

—

 

 

Dex West

 

45

 

—

 

—

 

—

 

 

Consolidated

 

NA

 

NA

 

378

 

45

 

2.50x Scenario (1)

 

SuperMedia

 

$

198

 

$

27

 

$

—

 

$

—

 

 

RHDI

 

60

 

12

 

—

 

—

 

 

Dex East

 

30

 

—

 

—

 

—

 

 

Dex West

 

45

 

—

 

—

 

—

 

 

Consolidated

 

NA

 

NA

 

388

 

54

 

2.75x Scenario (1)

 

SuperMedia

 

$

198

 

$

31

 

$

—

 

$

—

 

 

RHDI

 

60

 

14

 

—

 

—

 

 

Dex East

 

30

 

—

 

—

 

—

 

 

Dex West

 

45

 

—

 

—

 

—

 

 

Consolidated

 

NA

 

NA

 

397

 

64

 

3.00x Scenario (1)

 

SuperMedia

 

$

198

 

$

36

 

$

—

 

$

—

 

 

RHDI

 

60

 

16

 

—

 

—

 

 

Dex East

 

30

 

—

 

—

 

—

 

 

Dex West

 

45

 

—

 

—

 

—

 

 

Consolidated

 

NA

 

NA

 

407

 

74

 

 

Notes:

 

(1): Multiples based on 2015E EBITDA of $525mm

 

 

(2): Occurs in the first year following emergence

 

 

(3): Occurs in each of the first five years following emergence

 


 

EXHIBIT 6 — AMT NOL DETAIL

 

($ in millions)

 

3.0x Valuation
Scenario (1)

 

2.75x Valuation
Scenario (1)

 

2.5x Valuation
Scenario (1)

 

2.25x Valuation
Scenario (1)

 

2.0x Valuation
Scenario (1)

 

Incremental Depreciation Expense - AMTI

 

 

 

 

 

 

 

 

 

 

 

2016

 

$

14.2

 

$

12.2

 

$

11.0

 

$

10.8

 

$

10.6

 

2017

 

16.7

 

15.6

 

14.8

 

14.7

 

14.5

 

2018

 

18.1

 

17.4

 

16.9

 

16.8

 

16.7

 

2019

 

19.5

 

19.0

 

18.7

 

18.6

 

18.5

 

2020

 

20.3

 

20.0

 

19.8

 

19.7

 

19.7

 

Incremental Intangible Amortization Expense - AMTI

 

 

 

 

 

 

 

 

 

 

 

2016

 

$

115.0

 

$

96.5

 

$

77.5

 

$

62.3

 

$

46.3

 

2017

 

105.9

 

88.6

 

71.0

 

56.9

 

42.0

 

2018

 

35.2

 

28.2

 

21.2

 

16.0

 

10.5

 

2019

 

1.1

 

0.4

 

—

 

—

 

—

 

2020

 

1.1

 

0.4

 

—

 

—

 

—

 

Reduction to Deferred Directory Costs and A/R - AMTI

 

 

 

 

 

 

 

 

 

 

 

2016

 

$

(14.7

)

$

(20.9

)

$

(46.6

)

$

(51.9

)

$

(57.5

)

2017

 

—

 

—

 

—

 

—

 

—

 

2018

 

—

 

—

 

—

 

—

 

—

 

2019

 

—

 

—

 

—

 

—

 

—

 

2020

 

—

 

—

 

—

 

—

 

—

 

Incremental Depreciation Expense - Taxable Income

 

 

 

 

 

 

 

 

 

 

 

2016

 

$

14.1

 

$

12.2

 

$

10.9

 

$

10.7

 

$

10.5

 

2017

 

16.6

 

15.5

 

14.8

 

14.6

 

14.4

 

2018

 

18.1

 

17.4

 

16.9

 

16.8

 

16.7

 

2019

 

19.5

 

19.0

 

18.7

 

18.6

 

18.5

 

2020

 

20.3

 

20.0

 

19.8

 

19.7

 

19.7

 

Incremental Intangible Amortization Expense - Taxable Income

 

 

 

 

 

 

 

 

 

 

 

2016

 

$

102.1

 

$

84.4

 

$

66.2

 

$

51.8

 

$

36.7

 

2017

 

95.0

 

78.4

 

61.5

 

48.1

 

33.9

 

2018

 

35.7

 

28.7

 

21.9

 

16.8

 

11.5

 

2019

 

1.1

 

0.4

 

—

 

—

 

—

 

2020

 

1.1

 

0.4

 

—

 

—

 

—

 

Reduction to Deferred Directory Costs and A/R - Taxable Income

 

 

 

 

 

 

 

 

 

 

 

2016

 

$

(6.4

)

$

(12.6

)

$

(38.4

)

$

(43.7

)

$

(49.2

)

2017

 

—

 

—

 

—

 

—

 

—

 

2018

 

—

 

—

 

—

 

—

 

—

 

2019

 

—

 

—

 

—

 

—

 

—

 

2020

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Starting RHDI NOL Balance

 

$

534.2

 

$

508.3

 

$

478.4

 

$

393.3

 

$

307.0

 

Starting AMT NOL Balance

 

294.5

 

267.7

 

237.3

 

152.3

 

65.7

 

 

Notes:

 

(1): Multiples based on 2015E EBITDA of $525mm

 


 

Appendix

 


 

Q4 2014 Selected Financial Data

 

Dex Media East, Inc.

Reconciliation of Non-GAAP Measures Directly Attributable Contribution Margin

For the Three and Twelve Months Ended December 31, 2014

($ millions)

 

Q4 2014

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

41

 

 

 

$

19

 

 

 

$

60

 

Less: Directly Attributable Costs

 

$

7

 

 

 

$

8

 

 

 

$

15

 

Directly Attributable Contribution Margin

 

$

34

 

82.9

%

$

11

 

57.9

%

$

45

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

45

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

25

 

Depreciation and amortization

 

32

 

Total costs not included above

 

$

57

 

 

 

 

 

GAAP Operating income (loss)

 

$

(12

)

 

 

 

 

Operating income (loss) margin

 

-20.0

%

 

YTD December 2014

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

175

 

 

 

$

77

 

 

 

$

252

 

Less: Directly Attributable Costs

 

$

30

 

 

 

$

32

 

 

 

$

62

 

Directly Attributable Contribution Margin

 

$

145

 

82.9

%

$

45

 

58.4

%

$

190

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

190

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

92

 

Depreciation and amortization

 

130

 

Total costs not included above

 

$

222

 

 

 

 

 

GAAP Operating income (loss)

 

$

(32

)

 

 

 

 

Operating income (loss) margin

 

-12.7

%

 


 

Q4 2014 Selected Financial Data

 

Dex Media West, Inc.

Reconciliation of Non-GAAP Measures Directly Attributable Contribution Margin

For the Three and Twelve Months Ended December 31, 2014

($ millions)

 

Q4 2014

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

45

 

 

 

$

20

 

 

 

$

65

 

Less: Directly Attributable Costs

 

$

9

 

 

 

$

8

 

 

 

$

17

 

Directly Attributable Contribution Margin

 

$

36

 

80.0

%

$

12

 

60.0

%

$

48

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

48

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

30

 

Depreciation and amortization

 

40

 

Total costs not included above

 

$

70

 

 

 

 

 

GAAP Operating income (loss)

 

$

(22

)

 

 

 

 

Operating income (loss) margin

 

-33.8

%

 

YTD December 2014

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

192

 

 

 

$

85

 

 

 

$

277

 

Less: Directly Attributable Costs

 

$

34

 

 

 

$

37

 

 

 

$

71

 

Directly Attributable Contribution Margin

 

$

158

 

82.3

%

$

48

 

56.5

%

$

206

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

206

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

106

 

Depreciation and amortization

 

160

 

Total costs not included above

 

$

266

 

 

 

 

 

GAAP Operating income (loss)

 

$

(60

)

 

 

 

 

Operating income (loss) margin

 

-21.7

%

 


 

Q4 2014 Selected Financial Data

 

R.H. Donnelley Inc.

Reconciliation of Non-GAAP Measures Directly Attributable Contribution Margin

For the Three and Twelve Months Ended December 31, 2014

($ millions)

 

Q4 2014

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

60

 

 

 

$

32

 

 

 

$

92

 

Less: Directly Attributable Costs

 

$

11

 

 

 

$

12

 

 

 

$

23

 

Directly Attributable Contribution Margin

 

$

49

 

81.7

%

$

20

 

62.5

%

$

69

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

69

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

43

 

Depreciation and amortization

 

29

 

Total costs not included above

 

$

72

 

 

 

 

 

GAAP Operating income (loss)

 

$

(3

)

 

 

 

 

Operating income (loss) margin

 

-3.3

%

 

YTD December 2014

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

259

 

 

 

$

130

 

 

 

$

389

 

Less: Directly Attributable Costs

 

$

49

 

 

 

$

53

 

 

 

$

102

 

Directly Attributable Contribution Margin

 

$

211

 

81.5

%

$

77

 

59.2

%

$

288

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

288

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

153

 

Depreciation and amortization

 

117

 

Total costs not included above

 

$

270

 

 

 

 

 

GAAP Operating income (loss)

 

$

18

 

 

 

 

 

Operating income (loss) margin

 

4.6

%

 


 

Q1 2015 Selected Financial Data

 

Dex Media East, Inc.

 

Reconciliation of Non-GAAP Measures Directly Attributable Contribution Margin

 

For the Quarter Ended March 31, 2015

 

($ millions)

 

 

Q1 2015

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

38

 

 

 

$

19

 

 

 

$

57

 

Less: Directly Attributable Costs

 

$

7

 

 

 

$

10

 

 

 

$

17

 

Directly Attributable Contribution Margin

 

$

31

 

81.6

%

$

9

 

47.4

%

$

40

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

40

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

21

 

Depreciation and amortization

 

22

 

Total costs not included above

 

$

43

 

 

 

 

 

GAAP Operating income (loss)

 

$

(3

)

 

 

 

 

Operating income (loss) margin

 

-5.3

%

 


 

Q1 2015 Selected Financial Data

 

Dex Media West, Inc.

 

Reconciliation of Non-GAAP Measures Directly Attributable Contribution Margin

 

For the Quarter Ended March 31, 2015

 

($ millions)

 

 

Q1 2015

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

41

 

 

 

$

20

 

 

 

$

61

 

Less: Directly Attributable Costs

 

$

7

 

 

 

$

10

 

 

 

$

17

 

Directly Attributable Contribution Margin

 

$

34

 

82.9

%

$

10

 

50.0

%

$

44

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

44

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

23

 

Depreciation and amortization

 

28

 

Total costs not included above

 

$

51

 

 

 

 

 

GAAP Operating income (loss)

 

$

(7

)

 

 

 

 

Operating income (loss) margin

 

-11.5

%

 


 

Q1 2015 Selected Financial Data

 

R.H. Donnelley Inc.

Reconciliation of Non-GAAP Measures Directly Attributable Contribution Margin

For the Quarter Ended March 31, 2015

($ millions)

 

Q1 2015

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

55

 

 

 

$

31

 

 

 

$

86

 

Less: Directly Attributable Costs

 

$

9

 

 

 

$

14

 

 

 

$

23

 

Directly Attributable Contribution Margin

 

$

46

 

83.6

%

$

17

 

54.8

%

$

63

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

63

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

30

 

Depreciation and amortization

 

20

 

Total costs not included above

 

$

50

 

 

 

 

 

GAAP Operating income (loss)

 

$

13

 

 

 

 

 

Operating income (loss) margin

 

15.1

%

 


 

Q1 2015 Selected Financial Data

 

SuperMedia, Inc.

Reconciliation of Non-GAAP Measures Directly Attributable Contribution Margin

For the Quarter Ended March 31, 2015

($ millions)

 

Q1 2015

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

139

 

 

 

$

62

 

 

 

$

201

 

Less: Directly Attributable Costs

 

$

26

 

 

 

$

34

 

 

 

$

60

 

Directly Attributable Contribution Margin

 

$

113

 

81.2

%

$

28

 

45.2

%

$

141

 

 

Reconciliation to GAAP

 

 

 

Revenue per Contribution Margin

 

$

201

 

Revenue not included in above

 

1

 

GAAP Revenue

 

$

202

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

142

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

78

 

Depreciation and amortization

 

36

 

Total costs not included above

 

$

114

 

 

 

 

 

GAAP Operating income (loss)

 

$

28

 

 

 

 

 

Operating income (loss) margin

 

13.9

%

 


 

Q2 2015 Selected Financial Data

 

Dex Media East, Inc.

Reconciliation of Non-GAAP Measures Directly Attributable Contribution Margin

For the Three and Six Months Ended June 30, 2015

($ millions)

 

Q2 2015

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

36

 

 

 

$

18

 

 

 

$

54

 

Less: Directly Attributable Costs

 

$

6

 

 

 

$

9

 

 

 

$

15

 

Directly Attributable Contribution Margin

 

$

30

 

83.3

%

$

9

 

50.0

%

$

39

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

39

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

19

 

Depreciation and amortization

 

22

 

Total costs not included above

 

$

41

 

 

 

 

 

GAAP Operating income (loss)

 

$

(2

)

 

 

 

 

Operating income (loss) margin

 

-3.7

%

 

YTD June 2015

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

74

 

 

 

$

37

 

 

 

$

111

 

Less: Directly Attributable Costs

 

$

13

 

 

 

$

19

 

 

 

$

32

 

Directly Attributable Contribution Margin

 

$

61

 

82.4

%

$

18

 

48.6

%

$

79

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

79

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

40

 

Depreciation and amortization

 

44

 

Total costs not included above

 

$

84

 

 

 

 

 

GAAP Operating income (loss)

 

$

(5

)

 

 

 

 

Operating income (loss) margin

 

-4.5

%

 


 

Q2 2015 Selected Financial Data

 

Dex Media West, Inc.

Reconciliation of Non-GAAP Measures Directly Attributable Contribution Margin

For the Three and Six Months Ended June 30, 2015

($ millions)

 

Q2 2015

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

39

 

 

 

$

20

 

 

 

$

59

 

Less: Directly Attributable Costs

 

$

7

 

 

 

$

9

 

 

 

$

16

 

Directly Attributable Contribution Margin

 

$

32

 

82.1

%

$

11

 

55.0

%

$

43

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

43

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

21

 

Depreciation and amortization

 

25

 

Total costs not included above

 

$

46

 

 

 

 

 

GAAP Operating income (loss)

 

$

(3

)

 

 

 

 

Operating income (loss) margin

 

-5.1

%

 

YTD June 2015

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

80

 

 

 

$

40

 

 

 

$

120

 

Less: Directly Attributable Costs

 

$

14

 

 

 

$

19

 

 

 

$

33

 

Directly Attributable Contribution Margin

 

$

66

 

82.5

%

$

21

 

52.5

%

$

87

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

87

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

44

 

Depreciation and amortization

 

53

 

Total costs not included above

 

$

97

 

 

 

 

 

GAAP Operating income (loss)

 

$

(10

)

 

 

 

 

Operating income (loss) margin

 

-8.3

%

 


 

Q2 2015 Selected Financial Data

 

R.H. Donnelley Inc.

Reconciliation of Non-GAAP Measures Directly Attributable Contribution Margin

For the Three and Six Months Ended June 30, 2015

($ millions)

 

Q2 2015

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

52

 

 

 

$

32

 

 

 

$

84

 

Less: Directly Attributable Costs

 

$

8

 

 

 

$

14

 

 

 

$

22

 

Directly Attributable Contribution Margin

 

$

44

 

84.6

%

$

18

 

56.3

%

$

62

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

62

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

29

 

Depreciation and amortization

 

19

 

Total costs not included above

 

$

48

 

 

 

 

 

GAAP Operating income (loss)

 

$

14

 

 

 

 

 

Operating income (loss) margin

 

16.7

%

 

YTD June 2015

 

Print

 

Margin
%

 

Digital

 

Margin
%

 

Total

 

Revenue - Amortized

 

$

108

 

 

 

$

62

 

 

 

$

170

 

Less: Directly Attributable Costs

 

$

18

 

 

 

$

27

 

 

 

$

45

 

Directly Attributable Contribution Margin

 

$

90

 

83.3

%

$

35

 

56.5

%

$

125

 

 

Reconciliation to GAAP

 

 

 

 

 

 

 

Directly Attributable Contribution Margin

 

$

125

 

 

 

 

 

Other Costs Not Included Above in Directly Attributable Costs

 

59

 

Depreciation and amortization

 

39

 

Total costs not included above

 

$

98

 

 

 

 

 

GAAP Operating income (loss)

 

$

27

 

 

 

 

 

Operating income (loss) margin

 

15.9

%

 


 

R.H. Donnelley Inc.
Reconciliation of Non-GAAP Measures for

Financial Covenant Calculations

December 31, 2014

($ Millions)

 

 

 

1Q14

 

2Q14

 

3Q14

 

4Q14

 

Total

 

Consolidated EBITDA from Financial Covenant Calculations

 

$

35.6

 

$

37.9

 

$

36.0

 

$

34.7

 

$

144.3

 

Reconciliation to GAAP Operating Income

 

 

 

 

 

 

 

 

 

 

 

Subtract Depreciation and Amortization

 

(29.4

)

(29.2

)

(29.1

)

(29.0

)

(116.7

)

Subtract Extraordinary charges or non-cash charges

 

(0.1

)

(0.1

)

(0.1

)

(8.4

)

(8.8

)

Operating Income GAAP

 

$

6.1

 

$

8.5

 

$

6.7

 

$

(2.6

)

$

18.7

 

 


 

R.H. Donnelley Inc.
Reconciliation of Non-GAAP Measures for
Financial Covenant Calculations
March 31, 2015
($ Millions)

 

 

 

2Q14

 

3Q14

 

4Q14

 

1Q15

 

Total

 

Consolidated EBITDA from Financial Covenant Calculations

 

$

37.9

 

$

36.0

 

$

34.7

 

$

30.7

 

$

139.3

 

Reconciliation to GAAP Operating Income

 

 

 

 

 

 

 

 

 

 

 

Subtract Depreciation and Amortization

 

(29.2

)

(29.1

)

(29.0

)

(20.1

)

(107.4

)

Subtract Customer Late Fees in Interest

 

—

 

—

 

—

 

(0.3

)

(0.3

)

Subtract Extraordinary charges or non-cash charges

 

(0.1

)

(0.1

)

(8.4

)

3.2

 

(5.5

)

Operating Income GAAP

 

$

8.5

 

$

6.7

 

$

(2.6

)

$

13.4

 

$

26.1

 

 

Thryv Holdings, Inc. Reports