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SuperMedia is a train wreck heading towards a 2nd. BK...
Last Price (USD)$18.95 Change -0.67
The way the share price is tanking I just wonder if some big investor has gotten a peek of the 2nd. Qtr. financials that will be released soon. The 1st. Quarter 2010 financials are the stuff that Hollywood makes horror movies out of...
Wow! Yesterdays decline looks like a cliff on the charts!!
SuperMedia Is Lipstick on the Pig That Was Idearc
http://seekingalpha.com/article/192128-supermedia-is-lipstick-on-the-pig-that-was-idearc
It is fairly rare that MagicDiligence has an unabashed negative opinion towards a Magic Formula stock. Joel Greenblatt's strategy is mechanically designed to find what should be good companies that are trading at cheap valuations. A number of provisions are made in the mechanical formulas to prevent poor stocks from making it in. For example, companies with a lot of debt and little cash are penalized by using enterprise value instead of market capitalization. While there are certainly bad stocks in MFI, the truth is that a solid majority of the stocks filtered by the official screen are "OK" to "great" potential investments.
That said, SuperMedia (SPMD) is just a bad Magic Formula stock. The company is the post Chapter 11 re-spawn of Idearc (formerly IAR), a stock so bad that it was one of the reasons for starting MagicDiligence in the first place. After reorganizing in bankruptcy court, SuperMedia's balance sheet is better - but still pretty ugly. Moreover, the business itself has basically not changed at all. Let's take a look.
The company is a publisher of telephone directories in the U.S., the 2nd largest in the country. Some publications include the White Pages for residential listings, Yellow Pages for business, an online presence with Superpages.com, SuperpagesDirect direct mailers, and Superpages Mobile for cell phones. The company earns money through selling advertising. Traditionally the Yellow Pages are an excellent source for local businesses to acquire customer leads. Idearc was spun off from Verizon (VZ) in 2006, filed for bankruptcy protection in March 2009, and re-emerged with the new moniker at the start of this year.
SuperMedia does have a key competitive advantage: it uses the Verizon name on its directories in locales where Verizon provides local phone service. Since many people naturally trust what looks like the official directory (the one with the Verizon logo) over competitors, it allows SuperMedia to charge more than non-official publishers like competitor Yellowbook (YELL).
From a big-picture perspective, though, there is little growth potential in SuperMedia. The company has posted revenue declines every year since being spun off, and in 2009 sales fell 16%... 19% in the final quarter of the year. Competition is everywhere. In the publishing space, Yellowbook has been a thorn in the side, competing aggressively in nearly all of SuperMedia's markets and driving down ad rates. In the online space, SuperPages.com is at a major disadvantage to the big search engines like Google (GOOG), which already incorporate locale when serving search ads. Location-based services have been pushed heavily in many mobile device applications, further eroding any advantages SuperMedia may have had. In all likelihood, SuperMedia's revenues will continue their long, steady decline.
This is unfortunate, because even after reorganization the balance sheet is still pretty ugly. The firm was able to whittle down debt obligations from over $9 billion (yes, with a "b") to a still very high $2.7 billion, due in 2015. Interest on this debt is obviously junk rate, at 8% over LIBOR with a minimum of 11%. Considering how low LIBOR rates currently are (less than 1%) compared to historical averages (4-5%), it is conceivable that this could increase to as much as 14% during the term of the loan. Even at 11%, I calculate operating earnings covering interest at no more than 3 times, which is just too low (MagicDiligence likes 5 times over at the absolute minimum). With declining sales, that ratio will tighten.
Also, I don't think SuperMedia will have the cash flow left over to pay down the debt by maturity. The balance sheet shows about $212 million in cash, and annual free cash flow around $400 million. That's almost 7 years to repay, and that's also assuming the company can maintain those kinds of cash flows, which is unlikely given the competitive picture. Also, you can forget about share buybacks or a dividend here. All of these things will contribute to a consistently low valuation.
The stock is certainly cheap with an earnings yield of 23%, but this is justified in my view. Magic Formula investors may have noticed an anomaly where the screen was calculating the market cap at $6 billion instead of the proper $630 million. This was due to using the old Idearc float of 147 million shares, instead of the "new" SuperMedia float of 15 million shares.
In short, SuperMedia is lipstick on the pig that was Idearc. It's still a pig, and still a bad Magic Formula stock. Avoid it.
Disclosure: Steve owns no position in any stocks discussed in this article.
Losing money hand over fist...
10Q Three Months ending March 31 2010
http://ih.advfn.com/p.php?pid=nmona&article=42764976&symbol=SPMD
Operating Revenue $154 (in millions)
Net Income (Loss) $(143) (in millions)
Death of the Phonebook
Monday, May 3, 2010
http://adgcreative.blogspot.com/2010/05/death-of-phonebook.html
Death of the Phonebook
Alas, another “end-of-an-era” event in my lifetime (they seem to be mounting up…) The phonebook is on its way out. Yes, that go-to pub of the past that not only provided info for connecting via the telephone -- but also gave strong men something to tear and thousands of youngsters a boost at the Thanksgiving table -- is about to become extinct. With the growing adoption of the internet in every household… sentiment gives way to sensibility and Donnelly has announced that the good book is going bye bye.
Some staggering facts: Before the presses stop, calculations estimate the number of phonebooks printed each year equal three (yes, 3) books for every single American – man, woman, and child. The Yellow Pages currently generate nearly $15 billion in ad sales. I’m certain budgets for print will quickly be obligated to digital ad sales without a second thought. And finally – with the disappearance of the paper (and ink, chemicals, and resources to run the presses) bio-waste will be greatly reduced and the ever talked about carbon footprint will shrink. Hmmm… along with jobs for thousands of pressman, cameramen, bindery personnel, and the like.
I have to confess, I haven’t used a real phonebook in years – but for some reason I’m going to miss it when it’s finally gone. Not because I’m against technology – but I somehow believe that along with the disappearance of the phonebook may come the depletion of another old friend, conversation. Feel the same way? Gimme’a call… or – on second thought – just shoot me an email. I guess that’s just the way it goes.
Posted by ADG Creative at 12:58 PM
Last Price $23.90 Change -0.75 (-3.04%)
No love for SuperMedia
http://www.ilovewavs.com/Effects/Animals/Sound%20Effect%20-%20Coyote.wav
[Suppressed Sound Link]
Company is hemorrhaging... Advertisers are running away from these people due to price gouging in a bad economy...
SuperMedia Wins Preeminent Advertising Industry Award for SuperGuarantee
Last night SuperMedia (NASDAQ:SPMD) took home yet another accolade for its innovative SuperGuarantee® program with a Bronze 2010 Effie Award in the Media Companies category. SuperMedia and TM Advertising were recognized during the Effie North American Gala in New York City for their effective advertising efforts.
The Effie Awards honor the most significant achievements in marketing communications by recognizing any and all forms of marketing communication that contribute to a brand’s success.
“When we launched our SuperGuarantee program, we told businesses across the country that we stand shoulder-to-shoulder with them to be their champion and an engine for their growth,” said Scott W. Klein, CEO of SuperMedia. “Simply stated, SuperGuarantee is working.
“For the first time in years, we are seeing increases in possession and usage in our top 100 directories, an overall increase in call counts for our clients in those markets and positive feedback from clients. Our clients are seeing the benefits of the SuperGuarantee program from advertising in the Verizon® Yellow Pages, Superpages.com®, Superpages Mobile® and SuperpagesDirect® direct mail products.”
SuperGuarantee is a national consumer guarantee program designed to lower the risk of hiring contractors, plumbers, auto body repair shops and thousands of other qualified service-based businesses. If a consumer is not satisfied with the service provided by a participating SuperGuarantee business, SuperMedia will work to resolve any issues or, if unable to resolve the issue, SuperMedia will reimburse the consumer up to $500 of the cost of labor for the service.*
"Working with SuperMedia on its SuperGuarantee program has been like no other. We’ve been part of a brand rebirth," said Bill Oakley, Managing Partner/Chief Creative Officer at TM Advertising. "The pulse of the brand is stronger than ever, and we’re proud of the results and recognition we’ve seen since its launch.”
In addition to the Effie award, SuperMedia’s SuperGuarantee program has been recognized with 2010 "Best of Show" and "Most Effective Integrated Marketing Campaign
" awards from the annual Excellence in Interactive Marketing Awards (EIMA), 2010 Industry Excellence Award by the Yellow Pages Association TM (YPA) for innovation, execution and results and by the U.S. Postal Service (USPS) with the 2010 Creative Business Solutions Award for the company’s work in differentiating its direct mail product, SuperpagesDirect®.
Forward-Looking Statements
Certain statements included in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that include the words "believe," "will," "would," "propose," "anticipate," "foresee," and similar expressions identify forward-looking statements. For a discussion of the risks and uncertainties see SuperMedia's periodic filings with the Securities and Exchange Commission, which you may view at www.sec.gov, and in particular, SuperMedia LLC's Annual Report on Form 10-K for the fiscal year ending December 31, 2009 and SuperMedia LLC’s subsequent Quarterly Reports on Form 10-Q.
About SuperMedia LLC
SuperMedia LLC (“SuperMedia”) (NASDAQ:SPMD) is the advertising agency for local small- to medium-sized businesses across the United States. SuperMedia specializes in results. Click-here results. Ring-the-phone results. Knock-on-the-door results.
SuperMedia’s advertising products and services include: the award-winning SuperGuarantee® program, the SuperTradeExchange® program, Verizon® Yellow Pages, FairPoint® Yellow Pages, Superpages.com®, EveryCarListed.com®, Switchboard.comSM, LocalSearch.comSM, Superpages Mobile® and SuperpagesDirect® direct mail products. For more information, visit www.supermedia.com.
*Restrictions apply. For full details, see the Terms and Conditions for the SuperGuarantee program at www.superguarantee.com.
Last Price (USD)$25.10 Change -1.05 (-4.02%)
nice to see the ship sinking with management aboard
run aground again.................
All Hands Abandon Ship.......
According to Media Post, for the first time in history digital ad revenues is set to top print in 2010.
http://www.jobvent.com/review-of-job-at-supermedia-R92370
The long-predicted tipping point has arrived, with total U.S. digital advertising and marketing revenues set to surpass print revenues in 2010, according to a new study from Outsell, a consulting and research group serving the information industry.
This prediction, based on Outsell’s annual survey of over 1,000 U.S. advertisers and marketers in December 2009, heralds one of the most important symbolic milestones in the history of online advertising.
Altogether, U.S. advertisers and marketers plan to spend $368 billion in 2010, Outsell found — up 1.2% from about $364 billion in 2009. Within the 2010 figure, 32.5% ($119.6 billion) will go to digital, versus 30.3% ($111.5 billion) for print.
Savvy investors might have noticed that SuperMedia is now reporting all revenues lumped together for the companies print and electronic product., something that competitors are not doing. This is believed to be a plan by CEO Scott Klein to cover-up the fact that electronic revenues are not growing as they believed they would and the company no longer has a shining star among the 20%+ year over year declines in total revenues. In my opinion it is a sinking ship destined to end up at the bottom of the sea. Online revenue growth was previously something the company wanted to show off, so now they are only reporting overall revenues to Wall Street investors so they cannot determine that their .com product offering (or lackthereof) is suffering. Do you think they are hiding something? As an insider to both SuperMedia and Local Search Marketing, I can attest that this rumor is most likely true.
All Hands Abandon Ship.......
I am going to go out on a limb and predict folks start jumping ship…. I wonder if the CEO will be the last guy on board? Likely not! He and “his executive team” are probably down in the treasury looking for every last dime they can pocket before the big sell-off.
-Rod Diedendorf, the next in line behind Briggs Ferguson (former President of Internet who left the company recently) SuperMedia’s other senior internet guy, the companies VP of Internet Consumer Products is going to leave the company soon.
- New registrations for the SuperGuarantee Program are not what the company expected. It is very low and these numbers are being ignored by a few senior management folks. I am sure that SuperMedia CEO Scott Klein knows nothing about this.
- The attempt to convert the Super Guarantee shield into the BBB logo are also failing. Contrary to the companies propaganda and lip service, they are not slowing the revenue decline, partially due to the decline of traditional media amongst a shift to digital.
- The offering of “Integrated Advertising Solutions” to local SMBs is challenging since SuperMedia’s direct mail products are overpriced, print is rapidly declining with mobile search and search growth, internet products are marked up and resold from Google’s huge volume of traffic, and web-based products are worst in class. The only positive offering is the fact that the company will extend credit to anyone regardless of the clients ability to handle the calls or pay the bills. Sales results are like counting chickens before they hatch. While competitors like AT&T do not report earnings or operate with such trickery, Idearc/SuperMedia has been doing this for YEARS!
- Paulson, the hedge fund that purchased 17+% of SuperMedia, is working on a deal with Dex One, the post bankrupt R.H. Donnelley, to purchase SuperMedia and considering that the companies executives pocketed much of the company’s stock they are set to walk away from this with millions and the company will be gone.
- SuperMedia has hired yet another consulting group, likely Alexander Proudfoot, to strategize for sales improvements or due diligence. I am sure they are looking at the business to find the best means of integrating Dex One and Super Media.
Does the potential merger with Dex One mean that the stock is a good buy, likely not. In my opinion traditional media companies like SuperMedia have a horrible product offering compared to leading edge local search companies like Yelp and even Briggs Ferguson’s former company CitySearch.
I remember when CEO Scott Klein came to the Texas local sales offices to do a “State of the Business” address. Apparently he had little clue as to the true state of the business after taking the companies helm. Instead of relieving the concerns of tenured employees (like myself) and new hires, Klein proceeded to pander employees with his “7 Keys to Success.” At the time the companies stock was dropping like a rock (partially due to naked short sellers and Wall Street’s inability to understand the cyclical nature of the Yellow Page industry.) I am sure that the mood and sentiment of sales reps is at an all time low. The reason being is Klein came in and took a very basic fundamental business and added more hurdles vs removing them. He forced all sales reps to adapt to a CRM, SalesForce.com, to record all “sales” actions by employees. Reps are required to navigate the CRM after each call to get credit for “activities.” Klein, who once promised not to micro-manage the sales divisions, has turned the company into a telemarketing call center vs local advertising consultancy. Sales reps are frustrated with the additional time-consuming activities and are also having problems selling the companies inferior offering. The real reason the challenge exist in sales is not because of the CRM or management, but due to the fact that in most cases the company is failing to deliver on the promises of sales. Traffic to SuperPages.com’s network is declining in a fragmented local search market. Sales reps have a conscience. They are unwilling to sell products to clients that they feel will not meet their needs.
Newton's Gravitational Theory is being challenged by the share price of SPMD. Apparently the share price is dropping faster than a rock can fall...
Last Price (USD) 26.78
Change $-1.67 (-5.87%)
Looks like investors are jumping ship 29.53 -2.32 and it's not even 10 am yet.
The company has been dumping on the advertisers for several years by jacking them annually for subscription rates. Now phone book readership is being replaced by the internet yet SuperMedia is still raising print advertising rates. This greedy company is chasing away advertisers faster than they predicted... I predict the share price to continue going into the toilet.
$33.81 -.39 Vote of no confidence by former investors.
Verizon aims to cut residential phone listings
State permission sought as use of White Pages drops, reliance on Internet rises
http://www.buffalonews.com/2010/05/12/1047605/verizon-aims-to-cut-residential.html
By David Robinson
News Business Reporter
Updated: May 12, 2010, 12:23 am / 24 comments
Published: May 12, 2010, 11:47 am
Verizon to take the residential White Pages out of the phone book.
The company has asked state regulators for permission to eliminate residential listings from the phone book that carries the Verizon name and is distributed to all of its customers.
Verizon, in a filing with the State Public Service Commission, said most households don't use the residential listings, relying instead on the Internet and other new technology. Dropping the residential listings would save an estimated 5,000 tons of paper per year.
"It's really a prudent step if you take into consideration the environmental benefits involved, and if you listen to our customers, there's a decline in use," said John Bonomo, a Verizon spokesman.
Verizon is the first phone company in New York to ask state regulators to drop the residential listings, said Anne Dalton, a PSC spokeswoman.
Before the change can happen, Verizon would have to win approval from the PSC, which will accept comments from the public before it makes a decision, Dalton said.
No timetable has been set, but a ruling is not likely before late this year, at the earliest.
The change, even if it is approved, also is unlikely to affect how many phone directories residents now receive.
The Verizon directory is published and distributed by a Texas company, SuperMedia LLC, which once was part of Verizon. SuperMedia plans to continue to distribute directories that include the business White Page listings, which generate revenue from companies that pay for more prominent listings, and the Yellow Pages advertising section, along with government listings.
The residential White pages, in contrast, do not generate any revenue, said Andrew Shane, a SuperMedia spokesman.
In addition, the residential listing information still will be made available to other phone book publishers, including The Talking Phone Book published by Hearst Communications, Bonomo said.
Only about one in nine households still use the residential White Pages, Verizon said in the filing, citing a 2008 Gallup survey that showed use had declined from 25 percent in 2005.
In addition, regulators in Oklahoma, Ohio and Florida have allowed AT&T to provide residential listings only to customers that request them.
Verizon said it would also offer residential listings, on request, on CD-ROM and also on the Internet. Customers also would be able to request a printed directory with residential listings. As a result, Verizon is asking state regulators to waive the rule that now requires a directory to be sent to all of its customers.
Verizon would not realize any savings from the streamlined directories. All of the savings would flow to SuperMedia in the form of reduced paper costs and lower energy expenses associated with printing and delivering the directories.
drobinson@buffnews.com
Death of the Phonebook
Alas, another “end-of-an-era” event in my lifetime (they seem to be mounting up…) The phonebook is on its way out. Yes, that go-to pub of the past that not only provided info for connecting via the telephone -- but also gave strong men something to tear and thousands of youngsters a boost at the Thanksgiving table -- is about to become extinct. With the growing adoption of the internet in every household… sentiment gives way to sensibility and Donnelly has announced that the good book is going bye bye.
Some staggering facts: Before the presses stop, calculations estimate the number of phonebooks printed each year equal three (yes, 3) books for every single American – man, woman, and child. The Yellow Pages currently generate nearly $15 billion in ad sales. I’m certain budgets for print will quickly be obligated to digital ad sales without a second thought. And finally – with the disappearance of the paper (and ink, chemicals, and resources to run the presses) bio-waste will be greatly reduced and the ever talked about carbon footprint will shrink. Hmmm… along with jobs for thousands of pressman, cameramen, bindery personnel, and the like.
I have to confess, I haven’t used a real phonebook in years – but for some reason I’m going to miss it when it’s finally gone. Not because I’m against technology – but I somehow believe that along with the disappearance of the phonebook may come the depletion of another old friend, conversation. Feel the same way? Gimme’a call… or – on second thought – just shoot me an email. I guess that’s just the way it goes.
This dog has fleas! Time to short this puppy!
SuperMedia Announces Q1 2010 Results
Last update: 5/11/2010 8:30:02 AM
DALLAS, May 11, 2010 (BUSINESS WIRE) -- SuperMedia (SPMD), a leading advertising agency for local small- to medium-sized businesses across the United States, today announced its financial results for the first quarter 2010.
"With our financial restructuring more than 100 days behind us we are encouraged by the progress we have made so far this year," said Scott W. Klein, chief executive officer of SuperMedia. "While there is certainly additional work ahead of us and plans that must be successfully executed, overall results for the first quarter were consistent with the view of the business we discussed earlier in the year. We are encouraged by the early indicators we are seeing. Because of the nature and timing of our business cycle, it will take more time for the benefits of our continuing transformation to impact the financial results."
Klein added, "I often say we are not your father's yellow pages. Consumers and businesses are starting to see this through continued upward trending in possession and usage of our top directories, ongoing evolution of our offerings in Internet, mobile and direct mail - all supported by our game-changing SuperGuarantee(R) program - as well as a renewed commitment to exceeding client expectations by our SuperPromise 365 program."
Klein continued, "With respect to controlling our costs and improving sales processes, the programs we've initiated over the last 18 months continue to drive cost efficiencies. With regard to revenue, because of our sales cycle, Q1 advertising sales reflect activity primarily from the third and fourth quarters of last year. As a result, both amortized financial statement revenues and Q1 advertising sales trends, consistent with the second half of 2009, were still impacted by the economic cycle of the last 18-24 months faced by small and medium size businesses."
Financial Summary
SuperMedia reports financial results on a GAAP basis and on a non-GAAP basis, referred to as "adjusted pro forma". The adjusted pro forma basis measures are described and are reconciled to the corresponding GAAP measures in the accompanying financial schedules. These results were adjusted for the impacts of fresh start accounting and certain unique costs including reorganization items, restructuring costs and other non-recurring costs.
Adjusted pro forma revenue for Q1 2010 was $533 million, versus $674 million for Q1 2009, a decline of 20.9 percent.
On an adjusted pro forma basis, Q1 2010 earnings before interest, taxes, depreciation and amortization (EBITDA) declined 24.5 percent to $163 million with a margin of 30.6 percent compared to Q1 2009 EBITDA of $216 million with an EBITDA margin of 32.0 percent. Advertising sales in Q1 2010 declined 20.6 percent compared to Q1 2009.
Webcast Information
Individuals within the United States can access the earnings call by dialing 888/603-6873. International participants should dial 973/582-2706. The pass code for the call is: 69826861. In order to ensure a prompt start time, please dial into the call by 9:50am (Eastern). A replay of the teleconference will be available at 800/642-1687. International callers can access the replay by calling 706/645-9291. The replay pass code is 69826861. The replay will be available through May 25, 2010. In addition, a live webcast will be available on SuperMedia's website in the Investor Relations section at .
Non-GAAP Measures
In connection with SuperMedia's emergence from bankruptcy on December 31, 2009, and the application of fresh start accounting, the post-emergence results of the successor company for the three months ended March 31, 2010 and the pre-emergence results of the predecessor company for the three month ended March 31, 2009 are presented separately as successor and predecessor results in the financial statements presented in accordance with generally accepted accounting principles (GAAP). This presentation is required by GAAP as the successor company is considered to be a new entity and the results of the new entity reflect the application of fresh start accounting. For the readers' convenience, the financial information accompanying this release provides a reconciliation of GAAP to non-GAAP adjusted pro forma results.
Forward-Looking Statements
Certain statements included in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that include the words "believe," "will," "would," "anticipate," and similar expressions identify forward-looking statements. You should not place undue reliance on these statements. These forward-looking statements include statements that reflect the current views of our management with respect to our financial performance and future events with respect to our business and industry in general. Forward-looking statements address matters that involve risks and uncertainties. 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 post-restructuring financial condition, financing requirements, prospects and cash flow;
-- the inability to provide assurance for the long-term continued viability of our business;
-- 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 debt instruments;
-- results from any failure to comply with the financial covenants and other provisions and restrictions of our debt agreements;
-- access to capital markets and increased borrowing costs resulting from our leveraged capital structure and recent debt ratings;
-- reduced advertising spending by our customers and increased contract cancellations in the current economic environment and competition from other yellow pages directories publishers and other traditional and new media;
-- declining use of print yellow pages directories by consumers;
-- our ability to complete the implementation of our plan of reorganization and the discharge of our Chapter 11 bankruptcy cases, including successfully resolving any remaining claims;
-- any negative client, vendor, carrier and third-party responses as a result of implementation of our confirmed plan of reorganization;
-- the impact that the filing for and emerging from Chapter 11 bankruptcy has had and could continue to have on our corporate image, business operations, financial condition, liquidity or cash flow;
-- changes in the availability and cost of paper and other raw materials used to print our directories and our reliance on third-party providers for printing and distribution services;
-- increased credit risk associated with our reliance on small- and medium-sized businesses as clients, in particular in the current economic environment;
-- changes in our operating performance;
-- 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 regulatory bodies; and
-- the outcome of pending or future litigation and other claims.
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 anticipated.
For a detailed discussion of these, and other, risks and uncertainties see our periodic filings with the Securities and Exchange Commission, which you may view at , and in particular, our Annual Report on Form 10-K for the year ending December 31, 2009; and our future filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About SuperMedia Inc.
SuperMedia (SPMD) is the advertising agency for local small- to medium-sized businesses across the United States. SuperMedia specializes in results. Click-here results. Ring-the-phone results. Knock-on-the-door results.
SuperMedia's advertising products and services include: the SuperGuarantee(R)and SuperTradeExchange(R) programs, Verizon(R) SuperYellowPages, FairPoint(R) SuperYellowPages(R), Superpages.com(R), EveryCarListed.com(SM), Switchboard.com(SM), LocalSearch.com(SM), Superpages Mobile(SM)and SuperpagesDirect(R) direct mail products. For more information, visit .
SPMD-G
Down $5 a share today! ouch! $39.05
SPMD PR March 31, 2010
Local.com® and SuperMedia Renew and Expand Local Advertising Distribution Agreement
Local.com Corporation (NASDAQ:LOCM), a leading local search site and network, and SuperMedia LLC, home to Superpages.com®, today announced an expanded local advertising distribution agreement.
Under the new agreement, SuperMedia’s performance and subscription advertisers will receive preferred placement on www.local.com. The expanded agreement also includes distribution of enhanced ads and content from Superpages.com advertisers, including ratings and reviews, links to local business profile pages and videos. The expanded agreement is expected to increase the monetization of Local.com search traffic by providing an increased number of Superpages.com’s advertiser listings in response to search requests on Local.com and its distribution network. Revenue is generated when consumers connect with advertisers by clicking on their listing or calling their businesses.
“We are pleased to renew and expand our agreement with Local.com,” said Robyn Rose, vice president of product management at SuperMedia. “The agreement expands our distribution, allowing us to extend our advertisers’ content and deliver more leads to many of our local and national advertisers.”
“We are very happy to continue our successful relationship with SuperMedia,” said Rick Szatkowski, general manager, network properties and sales and advertiser services for Local.com. “This expanded agreement demonstrates Local.com's commitment to providing value to our users by offering relevant local business content, while increasing return on advertising investment to our partners' advertisers by placing their targeted ads in front of tens of millions of consumers on the Local.com site and network.”
About Local.com®
Local.com (NASDAQ:LOCM) owns and operates a leading local search site and private label network in the United States. The company uses patented technologies to provide over 20 million consumers each month with the most relevant search results for local businesses, products and services on Local.com and over 700 regional media sites. Businesses can target ready-to-purchase consumers using a variety of advertising products. To advertise, or for more information visit: www.local.com.
About SuperMedia LLC
SuperMedia LLC (“SuperMedia”) (NASDAQ:SPMD) is the advertising agency for local small to medium sized businesses across the United States. SuperMedia specializes in results. Click-here results. Ring-the-phone results. Knock-on-the-door results.
SuperMedia’s advertising products and services include: the SuperGuarantee® and SuperTradeExchange® programs, Verizon® Yellow Pages, FairPoint® Yellow Pages, Superpages.com®, EveryCarListed.com®, Switchboard.comSM, LocalSearch.comSM, Superpages Mobile® and SuperpagesDirect® direct mail products. For more information, visit www.supermedia.com.
Local.com - Forward Looking Statements
All statements other than statements of historical fact included in this document regarding our anticipated financial position, business strategy
and plans and objectives of our management for future operations, are forward-looking statements. When used in this report, words such as ‘anticipate,’ ‘believe,’ ‘estimate,’ ‘plan,’ ‘expect,’ ‘intend,’ ‘project,’ ‘feel’ and similar expressions and phrases, as they relate to Local.com or our management, identify forward-looking statements. Any forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to our management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including, but not limited to, our ability to monetize the Local.com domain, incorporate our local-search technologies, market the Local.com domain as a destination for consumers seeking local-search results, grow our business by enhancing our local-search services, increase the number of businesses that purchase our subscription advertising and web-hosting products, expand our advertiser and distribution networks, operate as multiple business units, integrate and effectively utilize our acquisitions’ technologies, develop our products and sales, marketing, finance and administrative functions and successfully integrate our expanded infrastructure, as well as our dependence on major advertisers, competitive factors and pricing pressures, changes in legal and regulatory requirements, and general economic conditions. Any forward-looking statements reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this paragraph. Unless otherwise stated, all site traffic and usage statistics are from third-party service providers engaged by the company.
Our Annual Report on Form 10-K, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6233513<=en
Successful SuperGuarantee Program Results in Product Extensions and Updated Ad Campaign
In celebration of the first anniversary of the SuperGuarantee® program, a national consumer guarantee initiative designed to lower the risk with hiring contractors, plumbers, auto body repair shops and thousands of other service based businesses,* SuperMedia LLC announced today the launch of a new national ad campaign. In addition, SuperMedia has extended the benefits of the SuperCrapGuarantee program for consumers and clients with a new automobile initiative, enhanced mobile applications and a way for clients to further promote themselves with the SuperCrapGuarantee.
“For the first time in many years, we are seeing an upward trend in the possession and usage of our top 100 SuperYellowPages directories across the country,” said Scott W. Klein, CEO of SuperMedia, Inc. “In addition, an overall increase in call counts in those markets is occurring and we are receiving more and more positive feedback from clients who are seeing the benefits of the SuperGuarantee as it generates more business for them and provides an instant competitive advantage.” SuperGuarantee companies, indicated by the SuperGuarantee shield, are found exclusively in Superpages.com®, the SuperYellowPages® and SuperpagesDirect® direct mail products. The SuperGuarantee program is free for consumers and eligible businesses. Clients qualify for the SuperGuarantee program based on heading, category, and ad program.
“The SuperGuarantee program can be a deciding factor when people choose me as a vendor,” said Jason Mobley, owner of Avatar Painting in Sumner, Wash. “When consumers go to look at my company listing it says SuperGuarantee next to it and it helps me get more opportunities. It’s really helping me rock out some houses and do great work, I love it.” If a consumer is not satisfied with the service provided by a participating SuperGuarantee business, SuperMedia will work to resolve any issues or, if unable to resolve the issue SuperMedia will reimburse the consumer up to $500 of the cost of labor for the service.* “Having a guarantee when you’re choosing a contractor to do a job is really important to me as a consumer because I know then if I’m not satisfied with the work that was performed, I have a fall back,” said Kathleen Quinn, consumer in Auburn, Wash.
Updated Ad Campaign: “We Make it Easy to Spot the Good Guys” Building on the success of the first campaign the new advertising continues to feature heroic service providers wearing yellow capes, while visually demonstrating the importance of hiring the "Good Guys." The storylines range from a broken-down school bus to a high school football game that loses power; the situation is fixed flawlessly by one of the SuperGuarantee businesses.
The SuperGuarantee branding campaign, "We Make it Easy to Spot the Good Guys," was developed by SuperMedia's advertising agency of record, TM Advertising, an independently managed subsidiary of Interpublic Group.
The second campaign of "Good Guys" advertising consists of TV, radio, out-of-home, online, and a Facebook and Twitter presence. Three 30-second spots and a half dozen 15-second spots premier this week during national primetime programs like “Lost,” “24,” “Modern Family,” “American Idol,” “Grey’s Anatomy” and “Barbara Walters’ Pre-Academy Awards Show.” The campaign will run through the end of the year on network, national cable and key local markets. View the ads here.
Successful SuperGuarantee Program Expands Building on the success of the SuperGuarantee program, SuperMedia’s new SuperGuarantee AutosSM program provides a free powertrain limited warranty that covers many automotive components including the engine, valves, bearings, pumps, transmission and drive axle up to $3,000 for consumers who find and purchase qualified vehicles through EveryCarListed.com® or Superpages.com.** “It’s rewarding to act as a catalyst of commerce by offering leading edge solutions that’s good for consumers and for SuperMedia’s clients,” said Klein. “The marketplace has changed with online search capabilities saving consumers time and money, and we intend to be at the forefront of new search developments as they take place.” SuperMedia has launched a variety of mobile applications which has increased Superpages.com’s user base and provided an additional platform for users to submit user reviews. Superpages Mobile® applications bring the power of Superpages.com and the SuperGuarantee wherever consumers go.
To continue providing a one-of-a-kind application SuperMedia is adding features for users to have an all inclusive SuperGuarantee experience within the application. Currently users can search and find SuperGuarantee businesses. Soon, users will have the ability to sign up for the SuperGuarantee, register service appointments, and, in the event the job is not done right, file a claim to have SuperMedia step in and make it right.* Superpages Mobile applications are available on the iPhone® or iPod® Touch, Blackberry®, and Google Android platforms and the Superpages Mobile Web site, m.superpages.com, is available to use on nearly all mobile phones.
Recognizing the benefits and power of the SuperGuarantee, SuperMedia clients have asked for more from the SuperGuarantee. The new ShieldPower program gives clients more ways to advertise themselves as Good Guys. With the ShieldPower program SuperGuarantee clients can use the SuperGuarantee Shield on the front door of their businesses, on their Web sites, on their business cards, their TV ads and more.
The program helps get the word out about SuperMedia clients and gets the word out that consumers should look for the Shield to find services backed by SuperGuarantee. The ‘Good Guys’ national ad campaign reinforces this message, so each time a SuperMedia ad runs, it benefits the client.
“We are a source of confidence, a connection to indispensable services and genuine advocates of local businesses,” said Klein. "As the first in the industry to stand behind the services of its advertisers, consumers have greater reason to trust SuperMedia and our SuperGuarantee partners. We'll continue with our SuperGuarantee program even long after the economy bounces back." * Restrictions apply. For full details, see the Terms and Conditions for the SuperGuarantee program at www.superguarantee.com.
** Warranty is offered only in eligible states. Other restrictions apply. For full details, see the terms and conditions and complete program details at www.everycarlisted.com.
Follow SuperMedia on Twitter (@SuperMedia) and become a fan on Facebook.
Follow Superpages.com on Twitter (@Superpages) and become a fan on Facebook.
Forward-Looking Statements Certain statements included in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that include the words "believe," "will," "would," "propose," "anticipate," "foresee," and similar expressions identify forward-looking statements. For a discussion of the risks and uncertainties see Idearc's periodic filings with the Securities and Exchange Commission, which you may view at www.sec.gov, and in particular, SuperMedia LLC's Annual Report on Form 10-K for the fiscal year ending December 31, 2008 and SuperMedia LLC’s subsequent Quarterly Reports on Form 10-Q.
About SuperMedia LLC SuperMedia LLC (“SuperMedia”) (NASDAQ:SPMD) is the advertising agency for local small to medium sized businesses across the United States. SuperMedia specializes in results. Click-here results. Ring-the-phone results. Knock-on-the-door results.
SuperMedia’s advertising products and services include: the SuperGuarantee® and SuperTradeExchange® programs, Verizon® Yellow Pages, FairPoint® Yellow Pages, Superpages.com®, EveryCarListed.com®, Switchboard.comSM, LocalSearch.comSM, Superpages Mobile® and SuperpagesDirect® direct mail products. For more information, visit www.supermedia.com.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6197303<=en (SPMD-G)
Shareholder value just flying out the window here...
Red Again -$2.14
Creditors who were paid in shares are dumping and converting to cash as fast as they can. All previous shareholders are erased by Board of Directors.
Supermedia creating a whole new generation of Bagholders.
Tanking again today!
I guess those who got paid in shares are getting rid of them like a hot potato...
IDARQ no longer trading as of Dec. 31, 2009
IDEARC PR 1.4.2010
Idearc Completes Debt Restructuring; Emerges With New Name and
Increased Client Focus
Last update: 1/4/2010 8:30:02 AM
Newly Issued Common Stock of SuperMedia Inc. Trading on NASDAQ Exchange
DALLAS, Jan 04, 2010 (BUSINESS WIRE) -- --Plan of Reorganization Effective as of December 31, 2009; Company Moves Forward with Restructured Balance Sheet and Debt Reduced to $2.75 Billion
Idearc Inc. today announced that it has changed its name to SuperMedia Inc. (the "Company" or "SuperMedia"). The new name symbolizes SuperMedia's renewed focus on providing outstanding products including the SuperYellowPages(R), Superpages.com(R) and SuperpagesDirect(TM) direct mail products as well as services, such as the SuperGuarantee(SM) and SuperTradeExchange(R) Programs, to its clients and consumers nationwide.
SuperMedia's shares trade on the NASDAQ Global Market under the symbol "SPMD" and the Company will take part in Opening Bell ceremonies on Wednesday, January 6, 2010.
"This is an exciting day for SuperMedia, our teammates, our clients and all others who have supported us as we have taken action to strengthen our balance sheet and position the enterprise to succeed in a challenging and rapidly changing business environment," said Scott W. Klein, chief executive officer of SuperMedia Inc.
"Our new name symbolizes the rebirth of our company and along with it the ability to continue to deliver innovative ways that will change the way in which we help match buyers with sellers," Klein added. "We will have much more to say about these initiatives -- and our company's renewed sense of excitement and energy -- in the days, weeks and months ahead."
The name change follows the Company's emergence from a reorganization that reduced its total debt from more than $9 billion to $2.75 billion of secured bank debt. The Company's Plan of Reorganization (the "Plan") became effective on December 31, 2009.
SuperMedia's equity capitalization will consist of 60 million shares of common stock and 5 million shares of preferred stock authorized for issuance. The terms, rights, and preferences of the preferred stock may be set from the Company's Board of Directors from time to time. Upon completion of all distributions to former creditors under the Plan, the Company will have approximately 15 million shares of common stock issued and outstanding.
Paulson Standby Purchase Closing
The Company also announced today that its standby purchase agreement with Paulson & Co. Inc. closed on December 31, 2009.
New Board of Directors
In conjunction with its emergence and in accordance with the Plan, the Company has a new Board of Directors. The newly appointed members are:
-- Edward Bayone, the Earle W. Kazis Professor of the Practice of Finance and International Real Estate at Brandeis University's International School of Business. He previously held numerous positions at FleetBoston Financial Group, including Chief, Global Risk Management and Chief Credit Officer.
-- Robert C. Blattberg, the Timothy W. McGuire Distinguished Service Professor of Marketing and the director of the Center for Marketing Technology and Information at Carnegie Mellon University's Tepper School of Business. From 1991-2008, he was a professor and director of the Center for Retail Management at Northwestern University's Kellogg Graduate School of Management.
-- Charles B. Carden, former Senior Vice President and Chief Financial Officer for John H. Harland Company, a provider of products and services to the financial institution and education markets. He currently serves on the board of directors for Ivox Corporation, a privately held software company that provides driver-based risk management information to fleets and insurance companies.
-- Robin Domeniconi, Vice President, US Advertising for Microsoft Corporation. She has previously served as Senior Advisor/Media & Digital of Avista Capital Partners, President of Time, Inc. Media Group, and President and Publisher of Real Simple.
-- Thomas Gardner, former Corporate Executive Vice President of Reader's Digest Association, Inc. He previously held numerous other positions with Reader's Digest. He has also served as a director for Northern Westchester Hospital, Reader's Digest Foundation, and the Williams College Society of Alumni Executive Committee.
-- David E. Hawthorne, former President and Chief Executive Officer of Lodgian, Inc., an independent hotel owner and operator. Since 2005, he has been with Hawthorne Management LLC, a firm that develops, owns, and operates commercial real estate in central Florida.
-- Scott W. Klein, Chief Executive Officer of SuperMedia Inc. He became CEO and a director of Idearc Inc. in June 2008. He previously served as an operating partner of Symphony Technology Group, a private investment firm, and as President and Chief Executive Officer of Information Resources, Inc., a provider of information solutions for the consumer packaged goods, retail, and healthcare industries. Prior to joining Information Resources, Mr. Klein served as President, Consumer Industries, Retail & Energy Global Industry Group of Electronic Data Systems Corporation.
-- Thomas S. Rogers, President and Chief Executive Officer of TiVo Inc., where he also serves on the board of directors. He joined the Board of Idearc Inc. in December 2007. He has previously served as chairman of the board of Teleglobe International Holdings, Ltd., a provider of international voice, data, internet, and mobile roaming services; chairman of Trget Media LLC, a media industry investment and operations advisory firm; chairman and chief executive officer of Primedia, Inc., a print, video, and online media company; and president of NBC Cable for the National Broadcast Company, Inc.
Cancellation of Old Idearc Common Stock
In accordance with the Plan, the pre-emergence common stock of Idearc Inc. (which has recently traded under the symbol "IDARQ.PK ") was cancelled effective December 31, 2009. Holders of the old Idearc Inc. common stock will not receive any distributions as part of the Plan and their equity interests have no value. No further transfers of the old Idearc Inc. common stock will be recorded on the Company's books.
Forward-Looking Statements
Certain statements included in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that include the words "believe," "will," "would," "propose," "anticipate," "foresee," and similar expressions identify forward-looking statements. For a discussion of the risks and uncertainties see Idearc's periodic filings with the Securities and Exchange Commission, which you may view at , and in particular, Idearc's Annual Report on Form 10-K for the fiscal year ending December 31, 2008 and Idearc's subsequent Quarterly Reports on Form 10-Q.
About SuperMedia Inc.
SuperMedia (SPMD) is the advertising agency for local small to medium sized businesses across the United States. SuperMedia specializes in results. Click-here results. Ring-the-phone results. Knock-on-the-door results.
SuperMedia's advertising products and services include: the SuperGuarantee(SM)and SuperTradeExchange(R) programs, Verizon(R) SuperYellowPages, FairPoint(R) SuperYellowPages, Superpages.com(R), EveryCarListed.com(SM), Switchboard.com(SM), LocalSearch.com(SM), Superpages Mobile(SM)and SuperpagesDirect(TM) direct mail products. For more information, visit .
SPMD-G
SOURCE: SuperMedia Inc.
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Investors should be cautious when buying common stock of companies in Chapter 11 bankruptcy. It is extremely risky and is likely to lead to financial loss. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution.
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