(BSNS WIRE) Idearc Announces Year to Date and Second Quarter 2008 Result=1
Idearc Announces Year to Date and Second Quarter 2008 Result=1
DALLAS--(BUSINESS WIRE)----
Idearc Inc. (NYSE: IAR) today announced financial results for the
second quarter and six months ended June 30, 2008.
Scott W. Klein, the Company's chief executive officer, said, "As I
complete my first sixty days with Idearc, I see opportunities
everywhere. The future is in our hands and we aren't going to accept
the economy as an excuse. It is clear that we have not made the leap
from operating as a division of Verizon to being a stand alone public
company. You will see us catch up quickly."
"Our priorities are accelerating revenue growth; right-sizing
expenses; and, creating a high-performance culture. These priorities
can best be achieved by leveraging our key assets - our customers, our
sales force and employee base and our products. We have already made
significant changes that will improve performance."
Klein continued: "The need for small and medium sized businesses
to connect with buyers is critical to our success. We have
relationships with about 800,000 businesses and while that might sound
impressive we have just scratched the surface. There are more than
12.5 million of these businesses in the United States and thousands
are launched weekly. We are streamlining cumbersome internal processes
and equipping our sales professionals with new technology to drive
sales."
"We are also changing Idearc's management structure and focus. By
centralizing and restructuring, we can eliminate complexity, maximize
efficiency, and become easier to do business with. While the changes
we have made and will continue to make will take some time to be fully
realized, I am confident we will succeed."
Financial Summary
Idearc reports financial results on a GAAP basis and on an
adjusted pro forma basis to eliminate the impact of transition and
certain non-recurring costs. The adjusted pro forma basis measures are
described and are reconciled to the corresponding GAAP measures in the
accompanying financial schedules.
On a year-to-date basis, Idearc reported multi-product revenues of
$1,529 million, a 5.1 percent decrease compared to the same period in
2007. Year-to-date Internet revenue was $148 million, a 5.0 percent
increase compared to the same period in 2007.
The Company reported second quarter 2008 multi-product revenues of
$759 million, a 5.7 percent decrease compared to the same period in
2007. The Company reported Internet revenue of $75 million in the
second quarter, a 2.7 percent increase compared to the same period in
2007.
The Company reported year-to-date earnings before interest, taxes,
depreciation and amortization (EBITDA) of $658 million, an 8.4 percent
decrease compared to the same period in 2007. Reported year-to-date
EBITDA margins were 43.0 percent, compared to 44.6 percent in the same
period in 2007. On an adjusted pro forma basis, year-to-date EBITDA
was $683 million, an 11.3 percent decrease compared to the same period
in 2007. Adjusted pro forma EBITDA margins were 44.7 percent, compared
to 47.8 percent in the same period in 2007.
The company reported second quarter EBITDA of $299 million, a 17.9
percent decrease compared to the same period in 2007. The company
reported EBITDA margins of 39.4 percent in the second quarter,
compared to 45.2 percent in the same period 2007. On an adjusted pro
forma basis, second quarter EBITDA was $316 million, a 19.2 percent
decrease compared to the same period in 2007. Adjusted pro forma
EBITDA margins were 41.6 percent in the second quarter 2008, compared
to 48.6 percent in the same period in 2007.
The Company reported year-to-date net income of $187 million, an
11.8 percent decrease compared to the same period in 2007. On an
adjusted pro forma basis, year-to-date net income was $203 million, a
17.5 percent decrease versus the same period in 2007.
The company reported net income of $76 million, a decrease of 30.3
percent versus the same period in 2007 for the second quarter 2008. On
an adjusted pro forma basis, second quarter net income was $87
million, a decrease of 31.5 percent versus the same period in 2007.
Free cash flow for the six months ended June 30, 2008 was $151
million based on cash from operating activities of $176 million, less
capital expenditure of $25 million.
Multi-product advertising sales for the second quarter declined
9.3 percent compared to 2007.
Idearc Reiterates Guidance for Full Year
Idearc is reiterating 2008 guidance, as of July 29, noting mid
single digit decline in amortized multi-product revenues and some
operating margin contraction.
Webcast Information
Idearc welcomes investors, media and other interested parties to
join Scott Klein, Idearc CEO, and Samuel D. (Dee) Jones, acting chief
financial officer, in a discussion via a webcast and teleconference
beginning today at 10:00 a.m. (Eastern). 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: 52261634. In order to
ensure a prompt start time, please dial in to the call by 9:50 a.m.
(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 52261634. The replay will be
available through August 12. In addition, a live webcast will be
available on Idearc's Web site at www.idearc.com, under the Investor
Relations tab.
