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Dex One Corporation (NYSE: DEXO) today announced fourth quarter and full year 2011 results, consistent with previously announced guidance.
Additionally, the company announced that it is pursuing amendments to its credit agreements to enable the repurchase of outstanding loans below par. Dex One expects to launch the amendments later today, and they will become effective upon approval by a majority of the company’s three lender groups, which it expects to obtain by the end of next week.
Dex One CEO Alfred Mockett said, “2011 was marked by significant progress executing our strategy and delivering on financial commitments. Our competitive position was strengthened by improving our sales channels, extending the product portfolio and making our services easy to sell and easy to buy.
“As a result, we generated fourth quarter digital growth of more than 30 percent, which exceeded the average for our peer group. In addition, bundles continue to perform well, increasing the average spending among recurring customers as well as attracting new customers.”
Gregory Freiberg, Dex One CFO, said, “Efforts in 2011 to improve our capital structure are expected to result in our ability to repurchase our operating companies’ loans below par.
“The proposed amendments would allow us to opportunistically buy back debt at market prices within the next two years and we would expect to commence repurchase activities shortly after receiving lender approval.
“Meanwhile, we currently have the ability to repurchase Dex One Corporation’s notes in the open market. We therefore intend to increase the pace of debt reduction and capture the discounted value for our shareholders.”
2011 PERFORMANCE (dollars in millions)
Year over year change in bookings
Year over year change in advertising sales
Adjusted EBITDA (1)
Adjusted EBITDA margin (1)
Free cash flow (1)
Adjusted net debt (1)
2011 GUIDANCE (dollars in millions)
Fourth quarter year over year change in net advertising sales