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Idearc Reports Strong Earnings and Cash Flow
Quarterly Dividend Declared
DALLAS, Feb 08, 2007 (BUSINESS WIRE) -- Idearc Inc. (NYSE:IAR), publisher of the Verizon Yellow Pages and provider of SuperPages.com (www.superpages.com), today announced that its strong cash flow will fund a quarterly dividend for shareholders. The company also announced 2006 financial results consistent with expectations.
Idearc's industry-leading business model, recurring revenue streams and strong cash flow enable the company to provide a solid cash return to shareholders, service debt and be opportunistic in evaluating investment opportunities.
Key Idearc Accomplishments:
-- Completes successful spin-off from Verizon
-- Fourth-quarter and year-end results reflect continued improvement in published revenue
-- Reiterates guidance for 2007
"This is an exciting day for us," said Kathy Harless, Idearc president and CEO." We're off to a strong start as a publicly traded company. We have an established, value-generating portfolio, a resilient multi-platform business model and a national base of diverse markets."
Harless continued: "Our spin-off from Verizon is complete, and our dividend indicates a commitment to tangible returns to our shareholders. We are focused on driving our multi-platform revenue. We are on track to meet our revenue forecast for 2007, and our earnings guidance remains consistent with previous forecasts."
Dividend Declaration - Strong cash flow allows dividend payment
Yesterday, Feb. 7, 2007, the Idearc board of directors declared our first quarterly dividend of 34.25 cents per outstanding share. The dividend is payable on or about March 15, 2007, to our shareholders of record at the close of business on Feb. 21, 2007.
Operational Overview - Completes successful spin-off from Verizon
Idearc successfully completed a spin-off from Verizon Communications on Nov. 17, 2006, through a tax-free distribution by Verizon of shares of our common stock to Verizon's shareholders. Our common stock began public trading on the New York Stock Exchange on Nov. 20, 2006. Idearc is now a stand-alone entity with approximately 146 million common shares outstanding.
Idearc has a broad national footprint - a key differentiator among our competitors. We have a presence in 81 of the top 100 domestic DMAs (Designated Marketing Area), including "incumbent" markets served by Verizon's wireline business and "independent" markets that are not served by Verizon's domestic telecom unit. DMA is a widely used term to define market coverage and penetration in the advertising industry.
Through a 30-year publishing agreement with Verizon, Idearc is the official publisher of Verizon print directories, with rights to publish yellow pages under the Verizon brand in both incumbent and independent markets.
We estimate we have successfully captured more than 70 percent of the aggregate market share in our top 15 incumbent MSA markets, based on 2005 revenues. We also operate in 42 independent MSA markets from coast to coast. We select independent markets based on the ability to profitably generate revenue, populate content on SuperPages.com and broaden our reach and appeal to large national advertisers.
Idearc publishes more than 1,200 directory titles and distributes more than 130 million copies in 35 states and the District of Columbia.
SuperPages.com is the number one Internet yellow pages site, as measured by the most recently available search share data. The site includes a free basic listing for the approximately 19 million businesses in the U.S. Approximately 11 million businesses have profiles with enhanced content.
SuperPages.com has an attractive revenue model that includes fixed-fee and industry leading performance-based advertising products that enhance our basic listing content. Fixed-fee advertising includes options such as advertisement placement on SuperPages.com, extended distribution and Web site development for advertisers. Performance-based advertising products generate revenue when consumers connect with advertisers by clicking through to their Web sites or by calling their businesses.
Idearc's agreements with Google and Yahoo! bring the company strategic relationships, as well as augment SuperPages.com's position as a leader in local search. These agreements also bring an enhanced level of support for SuperPages.com's performance-based advertisers.
Financial Overview - Delivers fourth-quarter/year-end 2006 financial results consistent with expectations
Idearc reported net income of $99 million, or 68 cents per diluted share, for the fourth quarter of 2006 and $772 million, or $5.29 per diluted share, for the full year. Net income includes one-time costs related to the spin-off, a month and a half of interest expense related to Idearc's debt issued in connection with the spin-off, and pension and other post-retirement benefit expenses allocated to us from Verizon. Adjusting for these items in the manner described in the accompanying financial schedules, Idearc's pro forma net income was $97 million, or 67 cents per diluted share, for the fourth quarter of 2006 and $465 million, or $3.19 per diluted share, for the full year.
Revenue for 2006 of $3.2 billion reflected an expected decrease of 4.5 percent from 2005. For the fourth quarter, revenue of $801 million was down 2.4 percent, compared to the same period last year.
Pro forma revenue for 2006 declined 3.4 percent as compared to pro forma revenue for the prior year. Pro forma revenue in the fourth quarter 2006 reflects continuing improvement in performance with a decline of only 1.7 percent over pro forma revenue for the same period in the prior year.
Internet revenue of $230 million for 2006 grew $33 million, or 16.8 percent, from 2005. SuperPages.com's strong revenue growth resulted from an approximately 20 percent year-over-year increase in the number of advertisers and a significant increase in usage as measured by a 90 percent increase in Internet yellow pages searches. In the fourth quarter, SuperPages.com delivered revenue of $63 million, an increase of $13 million, or 26 percent, as compared to the fourth quarter 2005. During 2006, the SuperPages.com network had more than 2.8 billion searches.
Idearc also reported operating income before interest, taxes, depreciation and amortization (OIBITDA) of $285 million for the fourth quarter and $1.412 billion for the full year. On a pro forma basis, these results were $363 million and $1.537 billion, producing OIBITDA margins of 45.3 percent and 47.8 percent for the respective periods.
Published Print Revenue Results - Improvement of 580 basis points for fourth quarter 2006 over fourth quarter 2005
Idearc reported published print revenue for the full year 2006, showing an improvement of approximately 270 basis points relative to 2005 results. Published print revenue in 2005 reflected a decline of 5.6 percent as compared to the prior year. This measure improved significantly in 2006 as a result of our investment in sales force, new products and other initiatives, declining 2.9 percent versus 2005.
The fourth quarter 2006 published print revenue showed an even greater improvement, declining only 1.0 percent versus the same period in 2005, an improvement of 580 basis points from the fourth quarter 2005 performance.
2007 Guidance - Approaching flat multi-product revenues
We are reiterating 2007 guidance provided at the time of our spin-off, noting close to flat multi-product revenues expected for the year and only slight OIBITDA margin contraction from 2006 pro forma results due to continued changes in our revenue mix.
Harless concluded: "I want to reiterate my confidence in our strategy and our prospects for the future. The company, now known as Idearc, has a long and successful history. Now, as a new publicly traded media company, I know we have the right value proposition and fiscal management to continue to grow in this rapidly changing environment."
Individuals within the United States can access the earnings call by dialing 800-683-1525. International participants should dial 973-872-3197. The passcode for the call is: 8363261. In order to ensure a prompt start time, please dial into the call by 9:50 a.m. (Eastern). A replay of the teleconference can be accessed at www.idearc.com. There is no passcode for the replay. In addition, a live webcast will be available on Idearc's Web site at www.idearc.com.
Note: This press release includes non-GAAP financial measures. See the financial schedules accompanying this press release and www.idearc.com/investor for reconciliations of these non-GAAP financial measures to generally accepted accounting principles (GAAP).
IDEARC INC.
Consolidated Statements of Income - Reported (GAAP)
----------------------------------------------------------------------
(dollars in millions, except per share amounts)
3 Mos. Ended 3 Mos. Ended
Unaudited 12/31/06 12/31/05 % Change
------------------------------- ------------- ------------- ----------
Operating Revenue
Print products $737 $764 (3.5)
Internet 63 50 26.0
Other 1 7 (85.7)
------------- -------------
Total Operating Revenue 801 821 (2.4)
------------- -------------
Operating Expense
Selling 199 190 4.7
Cost of sales (exclusive of
depreciation and amortization) 155 161 (3.7)
General and administrative 162 71 128.2
Depreciation and amortization 22 23 (4.3)
------------- -------------
Total Operating Expense 538 445 20.9
Operating Income 263 376 (30.1)
Interest expense (income), net 81 (6) NM
------------- -------------
Income Before Provision for
Income Taxes 182 382 (52.4)
Provision for income taxes 83 145 (42.8)
------------- -------------
Net Income $99 $237 (58.2)
------------- -------------
Basic and Diluted Earnings per
Share (1) $.68 $1.63 (58.3)
Weighted average number of
common shares (in millions) 146 146
12 Mos. 12 Mos.
Ended Ended
Unaudited 12/31/06 12/31/05 % Change
-------------------------------------- --------- --------- ----------
Operating Revenue
Print products $2,978 $3,147 (5.4)
Internet 230 197 16.8
Other 13 30 (56.7)
--------- ---------
Total Operating Revenue 3,221 3,374 (4.5)
--------- ---------
Operating Expense
Selling 732 646 13.3
Cost of sales (exclusive of
depreciation and amortization) 629 622 1.1
General and administrative 448 374 19.8
Depreciation and amortization 89 91 (2.2)
--------- ---------
Total Operating Expense 1,898 1,733 9.5
Operating Income 1,323 1,641 (19.4)
Interest expense (income), net 60 (16) NM
--------- ---------
Income Before Provision for Income
Taxes 1,263 1,657 (23.8)
Provision for income taxes 491 632 (22.3)
--------- ---------
Net Income $772 $1,025 (24.7)
--------- ---------
Basic and Diluted Earnings per Share
(1) $5.29 $7.03 (24.8)
Weighted average number of common
shares (in millions) 146 146
Notes:
(1) The number of shares issued for the spin-off of Idearc on November
17, 2006 was approximately 146 million. For basic and diluted
earnings per share calculations it was assumed that approximately 146
million shares were outstanding for the entire period. No additional
shares were issued through December 31, 2006.
IDEARC INC.
Consolidated Statements of Income - Reconciliation from Reported
(GAAP) to Adjusted (Non-GAAP) and Pro Forma (Non-GAAP)
----------------------------------------------------------------------
(dollars in millions, except per share amounts)
Non-Recurring Items
------------------------
3 Mos. Stock Based Separation 3 Mos.
Ended Compensation Costs (4) Ended
12/31/06 Charge (3) 12/31/06
Unaudited Reported Adjusted
(GAAP) Non-
GAAP
------------------------- --------- ------------- ---------- --------
Operating Revenue
Print products $737 $- $- $737
Internet 63 - - 63
Other 1 - - 1
--------- ------------- ---------- --------
Total Operating Revenue 801 - - 801
--------- ------------- ---------- --------
Operating Expense
Selling 199 - - 199
Cost of sales (exclusive
of depreciation and
amortization) 155 - - 155
General and
administrative 162 (39) (28) 95
Depreciation and
amortization 22 - - 22
--------- ------------- ---------- --------
Total Operating Expense 538 (39) (28) 471
--------- ------------- ---------- --------
Operating Income 263 39 28 330
Interest expense
(income), net 81 - - 81
--------- ------------- ---------- --------
Income Before Provision
for Income Taxes 182 39 28 249
Provision for income
taxes 83 15 3 101
--------- ------------- ---------- --------
Net Income $99 $24 $25 $148
--------- ------------- ---------- --------
Basic and Diluted
Earnings per Share (1) $.68 $.16 $.17 $1.02
Operating Income $263 $39 $28 $330
Depreciation and
Amortization 22 - - 22
--------- ------------- ---------- --------
OIBITDA (non-GAAP) (2) $285 $39 $28 $352
--------- ------------- ---------- --------
OIBITDA (non-GAAP) margin
(2) 35.6% 43.9%
Pro Forma Items
--------------------------
Pension Printing Debt 3 Mos.
OPEB Contract (7) Ended
Reduction (6) 12/31/06
(5)
Unaudited Pro Forma
Non-GAAP
--------------------------------- --------- --------- ------ ---------
Operating Revenue
Print products $- $- $- $737
Internet - - - 63
Other - - - 1
--------- --------- ------ ---------
Total Operating Revenue - - - 801
--------- --------- ------ ---------
Operating Expense
Selling (5) - - 194
Cost of sales (exclusive of
depreciation and amortization) (1) (3) - 151
General and administrative (2) - - 93
Depreciation and amortization - - - 22
--------- --------- ------ ---------
Total Operating Expense (8) (3) - 460
--------- --------- ------ ---------
Operating Income 8 3 - 341
Interest expense (income), net - - 95 176
--------- --------- ------ ---------
Income Before Provision for
Income Taxes 8 3 (95) 165
Provision for income taxes 3 1 (37) 68
--------- --------- ------ ---------
Net Income $5 $2 $(58) $97
--------- --------- ------ ---------
Basic and Diluted Earnings per
Share (1) $.04 $.01 $(.40) $.67
Operating Income $8 3 - $341
Depreciation and Amortization - - - 22
--------- --------- ------ ---------
OIBITDA (non-GAAP) (2) $8 3 - $363
--------- --------- ------ ---------
OIBITDA (non-GAAP) margin (2) 45.3%
Notes:
(1) The number of shares issued for the spin-off of Idearc on November
17, 2006 was approximately 146 million. For basic and diluted
earnings per share calculations it was assumed that approximately 146
million shares were outstanding for the entire period. No additional
shares were issued through December 31, 2006.
(2) OIBITDA is a non-GAAP measure that represents Operating Income
Before Interest, Taxes, Depreciation, and Amortization. OIBITDA
margin is calculated by dividing OIBITDA by total operating revenue.
(3) The stock-based compensation charge reflects a one-time adjustment
to record stock compensation expense of $39 million associated with
Verizon stock-based compensation and other stock-based awards that
vested at the time of spin.
(4) Separation costs are non-recurring costs associated with becoming
a stand-alone entity as a result of the spin-off from Verizon.
(5) On-going net pension and OPEB expenses are expected to be reduced,
primarily as a result of the 414(l) pension asset transfer from the
Verizon Pension Plan as the result of the Idearc spin-off from
Verizon. This pro forma adjustment is to reflect the expected on-
going pension and OPEB cost levels during this historical period.
(6) Reflects the impact of entering into a new contract with R.R.
Donnelley and Sons which resulted in a reduction in printing cost
rates.
(7) As a result of the spin on November 17, 2006, Idearc now has $9.1
billion of debt and will incur interest expense that it did not incur
in the past. This pro forma adjustment is to reflect the ongoing
interest expense levels during this historical period.
IDEARC INC.
Consolidated Statements of Income - Reconciliation from Reported
(GAAP) to Adjusted (Non-GAAP) and Pro Forma (Non-GAAP)
----------------------------------------------------------------------
(dollars in millions, except per share amounts)
Non-Recurring Items
------------------------
12 Mos. Stock Based Separation 12 Mos.
Ended Compensation Costs (4) Ended
12/31/06 Charge (3) 12/31/06
Unaudited Reported Adjusted
(GAAP) Non-
GAAP
----------------------------------- ------------- ---------- --------
Operating Revenue
Print products $2,978 $- $- $2,978
Internet 230 - - 230
Other 13 - - 13
--------- ------------- ---------- --------
Total Operating Revenue 3,221 - - 3,221
--------- ------------- ---------- --------
Operating Expense
Selling 732 - - 732
Cost of sales (exclusive
of depreciation and
amortization) 629 - - 629
General and administrative 448 (39) (30) 379
Depreciation and
amortization 89 - - 89
--------- ------------- ---------- --------
Total Operating Expense 1,898 (39) (30) 1,829
--------- ------------- ---------- --------
Operating Income 1,323 39 30 1,392
Interest expense (income),
net 60 - - 60
--------- ------------- ---------- --------
Income Before Provision
for Income Taxes 1,263 39 30 1,332
Provision for income taxes 491 15 4 510
--------- ------------- ---------- --------
Net Income $772 $24 $26 $822
--------- ------------- ---------- --------
Basic and Diluted Earnings
per Share (1) $5.29 $.17 $.18 $5.64
Operating Income $1,323 $39 $30 $1,392
Depreciation and
Amortization 89 - - 89
--------- ------------- ---------- --------
OIBITDA (non-GAAP) (2) $1,412 $39 $30 $1,481
--------- ------------- ---------- --------
OIBITDA (non-GAAP) margin
(2) 43.8% 46.0%
Pro Forma Items
---------------------------
Pension Printing Debt 12 Mos.
OPEB Contract (7) Ended
Reduction (6) 12/31/06
(5)
Unaudited Pro Forma
Non-GAAP
------------------------------------------ --------- ------- ---------
Operating Revenue
Print products $- $- $- $2,978
Internet - - - 230
Other - (7) - 6
--------- --------- ------- ---------
Total Operating Revenue - (7) - 3,214
--------- --------- ------- ---------
Operating Expense
Selling (26) - - 706
Cost of sales (exclusive of
depreciation and amortization) (8) (28) - 593
General and administrative (1) - - 378
Depreciation and amortization - - 89
--------- --------- ------- ---------
Total Operating Expense (35) (28) - 1,766
--------- --------- ------- ---------
Operating Income 35 21 - 1,448
Interest expense (income), net - - 642 702
--------- --------- ------- ---------
Income Before Provision for
Income Taxes 35 21 (642) 746
Provision for income taxes 13 8 (250) 281
--------- --------- ------- ---------
Net Income $22 $13 $(392) $465
--------- --------- ------- ---------
Basic and Diluted Earnings per
Share (1) $.15 $.09 $(2.69) $3.19
Operating Income $35 21 - $1,448
Depreciation and Amortization - - - 89
--------- --------- ------- ---------
OIBITDA (non-GAAP) (2) $35 21 - $1,537
--------- --------- ------- ---------
OIBITDA (non-GAAP) margin (2) 47.8%
Notes:
(1) The number of shares issued for the spin-off of Idearc on November
17, 2006 was approximately 146 million. For basic and diluted
earnings per share calculations it was assumed that approximately 146
million shares were outstanding for the entire period. No additional
shares were issued through December 31, 2006.
(2) OIBITDA is a non-GAAP measure that represents Operating Income
Before Interest, Taxes, Depreciation, and Amortization. OIBITDA
margin is calculated by dividing OIBITDA by total operating revenue.
(3) The stock-based compensation charge reflects a one-time adjustment
to record stock compensation expense of $39 million associated with
Verizon stock-based compensation and other stock-based awards that
vested at the time of spin.
(4) Separation costs are non-recurring costs associated with becoming
a stand-alone entity as a result of the spin-off from Verizon.
(5) On-going net pension and OPEB expenses are expected to be reduced,
primarily as a result of the 414(l) pension asset transfer from the
Verizon Pension Plan as the result of the Idearc spin-off from
Verizon. This pro forma adjustment is to reflect the expected on-
going pension and OPEB cost levels during this historical period.
(6) Reflects the impact of entering into a new contract with R.R.
Donnelley and Sons which resulted in exiting the commercial printing
business ($7 million in revenue and $4 million in costs) and a
reduction in printing cost rates.
(7) As a result of the spin on November 17, 2006, Idearc now has $9.1
billion of debt and will incur interest expense that it did not incur
in the past. This pro forma adjustment is to reflect the ongoing
interest expense levels during this historical period.
IDEARC INC.
Operating Revenue - Reconciliation from Reported (GAAP) to Pro Forma
(Non-GAAP)
----------------------------------------------------------------------
(dollars in millions, except per share amounts)
3 Mos. 3 Mos.
Ended Ended
Unaudited 12/31/06 12/31/05 % Change
--------------------------------------- --------- --------- ---------
Operating Revenue (GAAP) $801 $821 (2.4)
2005 Sale of Hawaii Operations (1) - - NM
2006 Sale of Printing Assets (2) - (6) (100.0)
--------- ---------
Pro Forma Operating Revenue (non-GAAP) $801 $815 (1.7)
--------- ---------
12 Mos. 12 Mos.
Ended Ended
Unaudited 12/31/06 12/31/05 % Change
--------------------------------------- --------- --------- ----------
Operating Revenue (GAAP) $3,221 $3,374 (4.5)
2005 Sale of Hawaii Operations (1) - (22) (100.0)
2006 Sale of Printing Assets (2) (7) (24) (70.8)
--------- ---------
Pro Forma Operating Revenue (non-GAAP) $3,214 $3,328 (3.4)
--------- ---------
Notes:
(1) Reflects May 2005 sale of our directory markets in Hawaii.
(2) Reflects February 2006 sale of our printing assets which results
in us no longer deriving revenue from commercial printing services.
IDEARC INC.
Consolidated Balance Sheet - Reported (GAAP)
----------------------------------------------------------------------
(dollars in millions)
Unaudited 12/31/06 12/31/05 $Change
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $172 $- $172
Note receivable due from Verizon - 348 (348)
Accounts receivable, net of allowances
of $76 and $80 325 366 (41)
Deferred directory costs 147 168 (21)
Current deferred tax assets 50 33 17
Prepaid expenses and other 13 27 (14)
------------------------------
Total current assets 707 942 (235)
------------------------------
Plant, property and equipment 474 511 (37)
Less: accumulated depreciation 331 347 (16)
------------------------------
143 164 (21)
------------------------------
Goodwill 73 70 3
Other intangible assets, net 103 123 (20)
Pension assets 174 - 174
Non-current deferred tax assets 21 113 (92)
Debt issuance costs 97 - 97
------------------------------
Total Assets $1,318 $1,412 $(94)
------------------------------
Liabilities and Parent's Equity /
Shareholders' Equity (Deficit)
Current liabilities:
Accounts payable and accrued
liabilities $412 $332 $80
Deferred revenue 190 209 (19)
Current maturities of long-term debt 48 - 48
Other 42 43 (1)
------------------------------
Total current liabilities 692 584 108
------------------------------
Long-term debt 9,067 - 9,067
Employee benefit obligations 401 499 (98)
Other liabilities 4 4 -
Parent's equity / shareholders' equity
(deficit):
Common stock ($.01 par value; 225
million authorized,
145,851,862 shares issued and
outstanding in 2006) 1 - 1
Parent's equity - 325 (325)
Additional paid-in capital (deficit) (8,786) - (8,786)
Retained earnings 7 - 7
Accumulated other comprehensive loss (68) - (68)
------------------------------
Total parent's equity / shareholders'
equity (deficit) (8,846) 325 (9,171)
------------------------------
Total Liabilities and Parent's Equity /
Shareholders' Equity (Deficit) $1,318 $1,412 $(94)
------------------------------
IDEARC INC.
Condensed Consolidated Statements of Cash Flows - Reported (GAAP)
----------------------------------------------------------------------
(dollars in millions)
Unaudited 12 Mos. Ended 12 Mos. Ended
12/31/06 12/31/05 $Change
------------------------------ -------------- -------------- ---------
Cash Flows From Operating
Activities
Net Income $772 $1,025 $(253)
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization
expense 89 91 (2)
Employee retirement benefits 50 48 2
Deferred income taxes (55) 11 (66)
Provision for uncollectible
accounts 140 167 (27)
Changes in current assets and
liabilities
Accounts receivable (96) (121) 25
Deferred directory costs 21 6 15
Other current assets (6) - (6)
Accounts payable and accrued
liabilities 33 (44) 77
Other, net 45 56 (11)
-------------- -------------- ---------
Net cash provided by operating
activities 993 1,239 (246)
-------------- -------------- ---------
Cash Flows From Investing
Activities
Capital expenditures
(including capitalized
software) (64) (78) 14
Acquisition (16) - (16)
Proceeds from sale of assets 20 - 20
Other, net 19 2 17
-------------- -------------- ---------
Net cash used in investing
activities (41) (76) 35
-------------- -------------- ---------
Cash Flows From Financing
Activities
Proceeds from issuance of long
term-debt 1,953 - 1,953
Change in note receivable 348 (105) 453
Dividends / returns of capital
paid to former parent (652) (1,058) 406
Net transactions with former
parent related to spin (2,429) - (2,429)
-------------- -------------- ---------
Net cash used in financing
activities (780) (1,163) 383
-------------- -------------- ---------
Increase in cash and cash
equivalents 172 - 172
Cash and cash equivalents,
beginning of period - - -
-------------- -------------- ---------
Cash and cash equivalents, end
of period $172 $- $172
-------------- -------------- ---------
IDEARC INC.
Reconciliation of Print Products Revenue (GAAP) to Published Print
Revenue (non-GAAP)
----------------------------------------------------------------------
(dollars in millions)
Twelve Months Ended
Unaudited 2006 2005 2004
------------------------------------------ -------- -------- --------
Print Products Revenue (GAAP) $2,978 $3,147 $3,318
% Growth YoY -5.4% -5.2%
Less: Net difference in Published Print
versus Amortized Revenue recognition
methodology 70 153 147
-------- -------- --------
Published Print Revenue (non-GAAP) (1) $2,908 $2,994 $3,171
% Growth YoY -2.9% -5.6%
-------- -------- --------
(1) Published Print Revenue represents the total revenue value of
directories published that will be amortized over the life of the
directory, typically 12 months.
IDEARC INC.
Reconciliation of Print Products Revenue (GAAP) to Published Print
Revenue (non-GAAP)
----------------------------------------------------------------------
(dollars in millions)
Three Months Ended
Unaudited 2006 2005 2004
--------------------------------------------- -------- ------- ------
Print Products Revenue (GAAP) $737 $764 $809
% Growth YoY -3.5% -5.5%
Less: Net difference in Published Print
versus Amortized Revenue recognition
methodology (123) (104) (123)
-------- ------- ------
Published Print Revenue (non-GAAP) (1) $860 $868 $932
% Growth YoY -1.0% -6.8%
-------- ------- ------
(1) Published Print Revenue represents the total revenue value of
directories published that will be amortized over the life of the
directory, typically 12 months.
IDEARC'S ONLINE NEWS CENTER: Idearc news releases, fact sheets, biographies, media contacts, high quality video and images, and other information are available at Idearc's News Center on the World Wide Web at www.idearc.com/pressroom.
Some statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Idearc Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.
Various risks could cause future results to differ from those expressed by the forward-looking statements included in this press release. These risks include, but are not limited to, the following:
-- risks inherent in our spin-off from our former parent corporation, Verizon Communications Inc., including increased costs and reduced profitability associated with operating as an independent company;
-- risks related to borrowings made in connection with the spin-off from Verizon Communications Inc.;
-- risks associated with our dependence on key agreements entered into with Verizon Communications Inc. in connection with the spin-off;
-- risks associated with our ability to replicate services provided to us by Verizon Communications Inc. prior to our spin-off and currently under the transition services agreement;
-- increased demands on our management teams as a result of operating as an independent company;
-- changes in our competitive position due to competition from other yellow pages publishers and search engines and/or our ability to anticipate or respond to changes in technology and user preferences;
-- changes in the availability and cost of printing raw materials and third party printers and distributors;
-- changes in U.S. labor, business, political and/or economic conditions;
-- changes in governmental regulations and policies and actions of regulatory bodies;
-- changes in operating performance; and
-- access to capital markets and changes in credit ratings.
For further details and a discussion of these and other risks and uncertainties, please see Idearc Inc.'s filings with the Securities and Exchange Commission, which you may view at www.sec.gov, and in particular, Idearc Inc.'s information statement, filed as part of its registration statement on Form 10, and related amendments, filed with the Securities and Exchange Commission on July 7, 2006, and made effective as of Nov. 1, 2006.
Other unknown or unpredictable factors could have material adverse effects on our future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed herein may not occur. We caution you not to place undue reliance on these forward-looking statements. All subsequent written and oral forward-looking statements concerning Idearc Inc., or other matters and attributable to Idearc Inc. or any person acting on its behalf, are expressly qualified in their entirety by the cautionary statements above. Idearc Inc. does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.
SOURCE: Idearc Inc.
Idearc Inc. Media: Mary De La Garza, 972-453-7016 mary.delagarza@idearc.com or David Matthews, 972-453-7691 david.matthews@idearc.com or Investor Relations: Dee Jones, 972-453-7364 dee.jones@idearc.com
Copyright Business Wire 2007
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