Dex One Corporation (NYSE: DEXO) today announced second quarter 2012 results highlighted by strong digital sales performance. The company re-affirmed guidance and narrowed the ranges for net revenue ($1,250-$1,300 million), Adjusted EBITDA ($525-$575 million) and Free Cash Flow ($310-$360 million).
Ad sales for the quarter were one point better than expected at minus 12 percent compared to the previously provided guidance. Although quarterly bookings declined 13 percent, digital bookings increased 53 percent. The company’s revenue decline slowed to 11 percent.
The company expects digital bookings growth rates will continue well in excess of 30 percent for the balance of the year. In the quarter, bundles represented 58 percent of total bookings and are on track to generate more than half of all bookings by year end.
“We remain focused on transforming Dex One into a leading marketing services company,” said Alfred Mockett, Dex One CEO. “Our performance in the quarter demonstrates our efforts are paying off.”During the second quarter the company used $110 million of cash to retire approximately $181 million of outstanding debt, remaining on track to retire at least $525 million of debt by year end. “The successful execution of our debt retirement and great support from lenders as part of the buyback was a critical component of our strategy,” said Dex One CFO Greg Freiberg. “We will continue to reduce costs, while making targeted investments to drive digital growth.”
SECOND QUARTER 2012 PERFORMANCE
(dollars in millions)
|Year over year change in bookings|
|Year over year change in advertising sales||(12%)|
|Adjusted EBITDA (1)||$141|
|Adjusted EBITDA margin (1)||42%|
|Free cash flow (1)||$79|
|Adjusted net debt (1)||$2,033|