R.H. Donnelley Announces 2008 Guidance and $100 Million Share Repurchase Plan
December 04 2007 - 7:30AM
PR Newswire (US)
CARY, N.C., Dec. 4 /PRNewswire-FirstCall/ -- R.H. Donnelley
Corporation (NYSE:RHD), one of the nation's leading Yellow Pages
and online local commercial search companies, will be providing
2008 financial guidance today at the UBS 35th Annual Global Media
& Communications Conference. During the presentation, which
will begin at 8:00 a.m. EDT, the company will forecast: --
Advertising sales of $2,745 million. -- Adjusted EBITDA, excluding
the impact of FAS 123 R expense and purchase accounting and related
expenses, of at least $1,440 million and operating income of $930
million. -- Free cash flow of at least $620 million and operating
cash flow of $710 million. -- Net debt at year end, excluding the
fair value adjustment of $0.1 billion, of approximately $9.5
billion. -- Weighted average fully diluted shares outstanding
during 2008 of approximately 72.5 million (Logo:
http://www.newscom.com/cgi-bin/prnh/20060731/NYM044LOGO ) During
its presentation, the company will also affirm its 2007 outlook,
which was last updated on October 25, 2007, with the exception of
weighted average fully diluted shares outstanding for the year,
which is now expected to be 72.0 million versus the previous
guidance of 72.5 million. See the attached appendix for a
reconciliation of the foregoing non-GAAP measures to the most
comparable GAAP measures. 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. The company also announced today
that its Board of Directors has authorized the purchase of up to
$100 million of its common stock over the next 12 months. These
purchases will be made based on market conditions and other factors
and may be made or suspended at any time. For those unable to
attend the conferences, a live audio Web cast of the presentation
can be accessed by visiting our Web site at http://www.rhd.com/,
clicking on "Investor Relations" and following the instructions
provided. In addition, an archived version of the presentation will
be available on RHD's Web site for up to one year from the date of
the call. Helping Local Businesses Reach More Customers R.H.
Donnelley's interactive offerings are essential to its Triple
Play(TM) solution suite -- an integrated set of products and
services that efficiently and effectively extend the marketing
reach of local businesses. Spanning multiple media platforms --
print Yellow Pages directories, DexKnows.com search site and the
major search engines (e.g. Yahoo!(R) and Google(R)) via the
Company's Dex Search Marketing(R) tools -- Triple Play delivers
local businesses' advertisements to a wider set of ready-to-buy
consumers. About R.H. Donnelley R.H. Donnelley connects businesses
and consumers through its portfolio of print and interactive
marketing solutions. Small- and medium-sized businesses look to
R.H. Donnelley's experienced team of marketing consultants to help
them grow their companies and drive sales leads. Consumers depend
on the Company's reliable, local business content to deliver the
most relevant search results when they are seeking local goods and
services. For more information, visit http://www.rhd.com/ and
DexKnows.com. Safe Harbor Provision Certain statements contained in
this press release regarding RHD's future operating results or
performance or business plans or prospects and any other statements
not constituting historical fact are "forward-looking statements"
subject to the safe harbor created by the Private Securities
Litigation Reform Act of 1995. Where possible, the words "believe,"
"expect," "anticipate," "intend," "should," "will," "planned,"
"estimated," "potential," "goal," "outlook" and similar
expressions, as they relate to RHD or its management, have been
used to identify such forward-looking statements. All forward-
looking statements reflect only RHD's current beliefs and
assumptions with respect to future business plans, prospects,
decisions and results, and are based on information currently
available to RHD. Accordingly, the statements are subject to
significant risks, uncertainties and contingencies, which could
cause RHD's actual operating results, performance or business plans
or prospects to differ materially from those expressed in, or
implied by, these statements. The following factors, among others,
could cause actual results to differ from those set forth in the
forward-looking statements: (1) the risk that the legacy Dex and
RHD businesses will not continue to be integrated successfully; (2)
the risk that the expected strategic advantages and remaining cost
savings from the Dex Media merger may not be fully realized or may
take longer to realize than expected; (3) disruption from the Dex
Media merger making it more difficult to maintain relationships
with customers, employees or suppliers; and (4) general economic
conditions and consumer sentiment in our markets. Additional
factors that could cause RHD's results to differ materially from
those described in the forward-looking statements are described in
detail in RHD's Annual Report on Form 10-K for the fiscal year
ended December 31, 2006 in Item 1A "Risk Factors" as well as RHD's
other periodic filings with the SEC that are available on the SEC's
website at http://www.sec.gov/. Amounts in millions, except for
percentages Full Year 2008 Full Year 2007 Outlook Outlook
Reconciliation of adjusted EBITDA(1) to operating income - GAAP and
adjusted EBITDA excluding SFAS No. 123 R outlook to operating
income - GAAP outlook Adjusted EBITDA Adjusted EBITDA excluding
SFAS No. 123 R outlook $1,440 $1,440 Less: Depreciation and
amortization (470) (440) Less: SFAS No. 123 R expense and amounts
related to former BDC restricted stock awards (40) (40) Adjusted
operating income Adjusted operating income outlook 930 960 Less:
Deferred cost uplift - (30) Operating income - GAAP Operating
income - GAAP outlook $930 $930 Full Year 2008 Full Year 2007
Outlook Outlook Calculation of adjusted EBITDA margin excluding
SFAS No. 123 R outlook Net revenue - GAAP outlook $2,745 $2,680
Adjusted EBITDA excluding SFAS No. 123 R outlook $1,440 $1,440
Adjusted EBITDA margin excluding SFAS No. 123 R outlook 53% 53%
Full Year 2008 Full Year 2007 Outlook Outlook Reconciliation of
cash flow from operations - GAAP to free cash flow and cash flow
from operations - GAAP outlook to free cash flow outlook Cash flow
from operations - GAAP Cash flow from operations - GAAP outlook
$710 $685 Less: Additions to fixed assets and computer software
(90) (85) Free cash flow - - Free cash flow outlook $620 $600
Amounts in billions, except for ratios Full Year 2008 Full Year
2007 Outlook Outlook Reconciliation of net debt - GAAP and GAAP
outlook to net debt - excluding fair value adjustment outlook(2)
Net debt - GAAP Net debt - GAAP outlook $9.6 $10.0 Less: Fair value
adjustment due to purchase accounting (0.1) (0.1) Net debt -
excluding fair value adjustment - - Net debt - excluding fair value
adjustment outlook $9.5 $9.9 Notes to Schedules (1) EBITDA
represents earnings before interest, taxes, depreciation and
amortization. Adjusted EBITDA represents adjusted earnings before
interest, taxes, depreciation and amortization. Adjusted pro forma
EBITDA represents adjusted pro forma earnings before interest,
taxes, depreciation and amortization. EBITDA, adjusted EBITDA and
adjusted pro forma EBITDA are not measurements of operating
performance computed in accordance with GAAP and should not be
considered as a substitute for operating income or net income
prepared in conformity with GAAP. In addition, EBITDA may not be
comparable to similarly titled measures of other companies. (2) As
a result of purchase accounting, RHD was required to adjust the
carrying value of Dex Media's debt at January 31, 2006 to its fair
value. Net debt -- GAAP represents total debt less cash and cash
equivalents for the respective period. Net debt -- excluding fair
value adjustments represents net debt -- GAAP adjusted to remove
the remaining fair value purchase accounting adjustment of Dex
Media's debt.
http://www.newscom.com/cgi-bin/prnh/20060731/NYM044LOGO
http://photoarchive.ap.org/ DATASOURCE: R.H. Donnelley Corporation
CONTACT: Investors, James M. Gruskin, 1-800-497-6329, or media,
Tyler D. Gronbach, +1-919-297-1541, both of R.H. Donnelley
Corporation Web site: http://www.rhd.com/
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