Business News
R.H. Donnelley Reports Second Quarter 2009 Results
Wednesday 05. August 2009 - -- Net Revenue of $566 Million -- Adjusted EBITDA of $293 Million -- Adjusted Free Cash Flow of $164 Million
R.H. Donnelley Corporation, one of the nation’s leading consumer and business-to-business local commercial search companies, today reported second quarter 2009 net revenue of $566 million, representing a 15 percent decline from second quarter 2008. Adjusted EBITDA(1) in the quarter was $293 million, down 20 percent from second quarter 2008. Adjusted free cash flow in the quarter was $164 million – based on cash flow from operations of $121 million, capital expenditures of $6 million and $49 million related to reorganizational, restructuring and restricted stock unit payments – up from $159 million in second quarter 2008, primarily due to the termination of bond interest payments while in bankruptcy. Second quarter advertising sales were $523 million, down 23 percent from advertising sales in the second quarter 2008. Net loss was $75 million in the quarter compared to a net loss of $339 million in second quarter 2008.
“While the local ad sales environment remained very challenging, we made significant headway on several business priorities in the quarter,” said David C. Swanson, Chairman and CEO of R.H. Donnelley. “We successfully negotiated a new, three-year union contract that covers approximately 420 employees and made great progress on our restructuring plans. We still expect to emerge from Chapter 11 in early 2010 as a stronger company with a more sustainable capital structure. We also continued to prudently manage the business and reduce costs while also investing in programs that drive additional value to advertisers.”
Important information regarding operating results and related reconciliations of non-GAAP financial measures to the most comparable GAAP measures can be found in the schedules and related footnotes of this press release, which should be thoroughly reviewed. In addition, the forthcoming quarterly reports on Form 10-Q for the period ended June 30, 2009 for R.H. Donnelley and its subsidiaries that are SEC registrants should be carefully examined as they will contain important information, including the financial impact of filing voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Advertising sales is a statistical measure and consists of sales of advertising in print directories distributed during the period and Internet-based products and services with respect to which such advertising first appeared publicly during the period. It is important to distinguish advertising sales from net revenue, which is recognized under the deferral and amortization method.
Helping Local Small- and Medium-Sized Businesses Reach More Customers
R.H. Donnelley’s integrated Dex product solutions extend the marketing reach of local businesses. Through its unique Dex Advantage, customers’ business information is leveraged and marketed through a single profile, and efficiently distributed via a variety of local search products. Dex ensures advertisers’ business content and messages are found wherever, whenever and however consumers choose to search. The Dex Advantage spans multiple media platforms for local advertisers including print with the Dex directories; online and mobile devices with DexKnows.com; voice-activated directory search at 1-800-Call-Dex; and leading search engines and other online sites via Dex Net.