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 .
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