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SuperMedia Announces Second Quarter 2012 Results

Stock quotes in this article: SPMD 

Total expenses, excluding depreciation and amortization and severance costs, were $205 million, compared with Q2 2011 operating expenses of $269 million, a reduction of $64 million or 23.8 percent.

During the second quarter, SuperMedia reduced indebtedness under its credit agreement by $170 million, including at par payments of $114 million and $56 million through open market debt repurchases allowed under the terms of the credit agreement. The $56 million debt reduction accomplished through open market repurchases used cash of $33 million. SuperMedia’s total indebtedness at June 30, 2012 was $1.511 billion.

During the second quarter, the Company recorded a $262 million pretax reduction of certain post-employment benefit obligations and an after-tax deferred gain to accumulated other comprehensive income of $164 million.

Advertising sales 1 declined 19.3 percent, compared with a decline of 16.3 percent reported for the same quarter last year.

2012 Year-to-date Financial Results

Operating revenue was $712 million, a decline of $147 million or 17.1 percent compared with the same period last year.

Operating income was $210 million, an increase of $1 million or 0.5 percent compared with the same period last year.

Operating income margin was 29.5 percent, compared with 24.3 percent for the first half 2011, a 520 basis point improvement.

Net Income was $126 million, which included a $51 million non-taxable gain on early extinguishment of debt, an increase of 113.6 percent compared with year-to-date Q2 2011.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), a non-GAAP measure, which excludes the gains realized on early extinguishment of debt as well as severance costs, was $292 million, a decline of 4.6 percent compared with adjusted EBITDA of $306 million for the first half of 2011.

Adjusted EBITDA margin, a non-GAAP measure, was 41.0 percent compared with 35.6 percent for the first half of 2011, a 540 basis point improvement.

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