Idearc Inc. (SPMD, Financial) filed Quarterly Report for the period ended 2010-06-30.
Idearc Inc. has a market cap of $320.4 million; its shares were traded at around $20.66 with and P/S ratio of 0.1. SPMD is in the portfolios of Louis Moore Bacon of Moore Capital Management, LP, David Tepper of APPALOOSA MANAGEMENT LP, John Paulson of Paulson & Co., Prem Watsa of Fairfax Financial Holdings, Inc..
Cost of Sales. Cost of sales of $103 million for the three months ended June 30, 2010 decreased $45 million, or 30.4%, compared to $148 million for the three months ended June 30, 2009. This decrease was primarily due to the impacts of fresh start accounting and reduced printing and distribution costs. Our cost of sales expense for the three months ended June 30, 2010 was significantly impacted by the exclusion of approximately $33 million of the amortized effect of printing and distribution costs due to our implementation of fresh start accounting, that would have been recognized by our Predecessor Company.
reduced employee related costs. In addition, a $16 million expense reduction related to the favorable non-recurring, non-cash resolution of state tax claims was recorded in the three months ended June 30, 2010. Bad debt expense of $18 million for the three months ended June 30, 2010, decreased by $42 million, or 70.0%, compared to $60 million for the three months ended June 30, 2009. Bad debt expense as a percent of total operating revenue was 7.3% for the three months ended June 30, 2010 compared to 9.2% for the three months ended June 30, 2009. Our general and administrative expense for the three months ended June 30, 2010 was significantly impacted by the exclusion of approximately $22 million of bad debt expense due to our lower revenue associated with the implementation of fresh start accounting at December 31, 2009, that would have been recognized by our Predecessor Company.
Depreciation and Amortization. Depreciation and amortization expense of $47 million for the three months ended June 30, 2010 increased $30 million, or 176.5%, compared to $17 million for the three months ended June 30, 2009. This increase was primarily due to the amortization of intangible assets of $28 million related to client relationships, patented technologies (patents) and marketing-related intangible assets (trademarks, domain names and trade names), which were recorded at December 31, 2009 in connection with our adoption of fresh start accounting. This increase in intangible assets will significantly increase our amortization expense throughout the remainder of 2010.
Cost of Sales. Cost of sales of $192 million for the six months ended June 30, 2010 decreased $107 million, or 35.8%, compared to $299 million for the six months ended June 30, 2009. This decrease was primarily due to the impacts of fresh start accounting, reduced printing and distribution costs and reduced Internet traffic costs. Our cost of sales expense for the six months ended June 30, 2010 was significantly impacted by the exclusion of approximately $82 million of the amortized effect of printing and distribution costs due to our implementation of fresh start accounting, that would have been recognized by our Predecessor Company.
losses in 2010 associated with our pension plans, and lower stock-based compensation. In addition, a $16 million expense reduction related to the favorable non-recurring, non-cash resolution of state tax claims was recorded in the six months ended June 30, 2010. These decreases were partially offset by higher employee severance costs. During the six months ended June 30, 2009, we recorded $13 million of restructuring charges associated with our ongoing strategic organizational cost savings initiatives, which included $10 million of professional fees associated with pre-petition capital restructuring costs. Bad debt expense of $30 million for the six months ended June 30, 2010, decreased by $92 million, or 75.4%, compared to $122 million for the six months ended June 30, 2009. Bad debt expense as a percent of total operating revenue was 7.5% for the six months ended June 30, 2010 compared to 9.2% for the six months ended June 30, 2009. Our general and administrative expense for the six months ended June 30, 2010 was significantly impacted by the exclusion of approximately $52 million of bad debt expense due to our lower revenue associated with the implementation of fresh start accounting at December 31, 2009, that would have been recognized by our Predecessor Company.
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Idearc Inc. has a market cap of $320.4 million; its shares were traded at around $20.66 with and P/S ratio of 0.1. SPMD is in the portfolios of Louis Moore Bacon of Moore Capital Management, LP, David Tepper of APPALOOSA MANAGEMENT LP, John Paulson of Paulson & Co., Prem Watsa of Fairfax Financial Holdings, Inc..
Highlight of Business Operations:
As a result of the implementation of fresh start accounting, approximately $265 million of revenue and $66 million of directory and sales commissions costs were not recognized in the three months ended June 30, 2010, which would have otherwise been recorded by the Predecessor. For the six months ended June 30, 2010, approximately $644 million of revenue and $158 million of directory and sales commissions costs were not recognized, which would have otherwise been recorded by the Predecessor. In addition, the fair values of certain intangible assets were increased in association with fresh start accounting, resulting in amortization expense in the three and six months ended June 30, 2010 of $28 million and $56 million, respectively, which would not have been recorded by the Predecessor.Cost of Sales. Cost of sales of $103 million for the three months ended June 30, 2010 decreased $45 million, or 30.4%, compared to $148 million for the three months ended June 30, 2009. This decrease was primarily due to the impacts of fresh start accounting and reduced printing and distribution costs. Our cost of sales expense for the three months ended June 30, 2010 was significantly impacted by the exclusion of approximately $33 million of the amortized effect of printing and distribution costs due to our implementation of fresh start accounting, that would have been recognized by our Predecessor Company.
reduced employee related costs. In addition, a $16 million expense reduction related to the favorable non-recurring, non-cash resolution of state tax claims was recorded in the three months ended June 30, 2010. Bad debt expense of $18 million for the three months ended June 30, 2010, decreased by $42 million, or 70.0%, compared to $60 million for the three months ended June 30, 2009. Bad debt expense as a percent of total operating revenue was 7.3% for the three months ended June 30, 2010 compared to 9.2% for the three months ended June 30, 2009. Our general and administrative expense for the three months ended June 30, 2010 was significantly impacted by the exclusion of approximately $22 million of bad debt expense due to our lower revenue associated with the implementation of fresh start accounting at December 31, 2009, that would have been recognized by our Predecessor Company.
Depreciation and Amortization. Depreciation and amortization expense of $47 million for the three months ended June 30, 2010 increased $30 million, or 176.5%, compared to $17 million for the three months ended June 30, 2009. This increase was primarily due to the amortization of intangible assets of $28 million related to client relationships, patented technologies (patents) and marketing-related intangible assets (trademarks, domain names and trade names), which were recorded at December 31, 2009 in connection with our adoption of fresh start accounting. This increase in intangible assets will significantly increase our amortization expense throughout the remainder of 2010.
Cost of Sales. Cost of sales of $192 million for the six months ended June 30, 2010 decreased $107 million, or 35.8%, compared to $299 million for the six months ended June 30, 2009. This decrease was primarily due to the impacts of fresh start accounting, reduced printing and distribution costs and reduced Internet traffic costs. Our cost of sales expense for the six months ended June 30, 2010 was significantly impacted by the exclusion of approximately $82 million of the amortized effect of printing and distribution costs due to our implementation of fresh start accounting, that would have been recognized by our Predecessor Company.
losses in 2010 associated with our pension plans, and lower stock-based compensation. In addition, a $16 million expense reduction related to the favorable non-recurring, non-cash resolution of state tax claims was recorded in the six months ended June 30, 2010. These decreases were partially offset by higher employee severance costs. During the six months ended June 30, 2009, we recorded $13 million of restructuring charges associated with our ongoing strategic organizational cost savings initiatives, which included $10 million of professional fees associated with pre-petition capital restructuring costs. Bad debt expense of $30 million for the six months ended June 30, 2010, decreased by $92 million, or 75.4%, compared to $122 million for the six months ended June 30, 2009. Bad debt expense as a percent of total operating revenue was 7.5% for the six months ended June 30, 2010 compared to 9.2% for the six months ended June 30, 2009. Our general and administrative expense for the six months ended June 30, 2010 was significantly impacted by the exclusion of approximately $52 million of bad debt expense due to our lower revenue associated with the implementation of fresh start accounting at December 31, 2009, that would have been recognized by our Predecessor Company.
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