DEX ONE Corp. (DEXO, Financial) filed Quarterly Report for the period ended 2011-09-30.
Dex One Corp. has a market cap of $32.1 million; its shares were traded at around $0.64 .
GAAP bad debt expense for the three months ended September 30, 2011 increased $1.1 million compared to non-GAAP adjusted bad debt expense for the three months ended September 30, 2010, primarily due to write-off experience associated with a CMR who is under financial distress and is winding down its operations and its impact on allowance factors. GAAP bad debt expense for the nine months ended September 30, 2011 declined $8.3 million compared to non-GAAP combined adjusted bad debt expense for the nine months ended September 30, 2010, primarily due to effective credit and collections practices, which have driven improvement in our accounts receivable portfolio, as well as lower billing volumes associated with declines in advertisers and advertising sales, partially offset by write-off experience associated with the CMR referenced above and its impact on allowance factors. GAAP bad debt expense for the three and nine months ended September 30, 2011 represented 4.2% and 3.4%, respectively, of our net revenue, compared to 3.3% and 3.5% for the non-GAAP adjusted and combined adjusted three and nine months ended September 30, 2010, respectively.
Net income of $22.2 million for the three months ended September 30, 2011 was a direct result of the revenue and expense trends described above. Net (loss) of $(524.5) million for the nine months ended September 30, 2011was a direct result of the goodwill impairment charge and revenue and expense trends described above, partially offset by the income tax benefit described above. Net loss of $(390.6) million and $(903.3) million for the three and eight months ended September 30, 2010, respectively, was directly impacted by the impairment charges noted above, the significant impact of the effects of fresh start accounting and the revenue and expense trends described above, partially offset by the income tax benefit described above.
Advertising sales is a non-GAAP 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 revenues, which under GAAP are recognized under the deferral and amortization method. Advertising sales in current periods will be recognized as gross advertising revenues in future periods as a result of the deferral and amortization method of revenue recognition. Advertising sales for the three and nine months ended September 30, 2011 were $269.3 million and $1,002.6 million, respectively, representing a decline of $42.8 million, or 13.7%, and $178.4 million, or 15.1%, from advertising sales of $312.1 million and combined advertising sales of $1,181.0 million for the three and nine months ended September 30, 2010, respectively.
In order to provide more visibility into what the Company will book as revenue in the future, we are presenting an additional non-GAAP statistical measure called bookings, which represent sales activity associated with our print directories and Internet-based marketing solutions during the period. Bookings associated with our local customers represent signed contracts during the period. Bookings associated with our national customers represent what has been published or fulfilled during the period. Bookings for the three and nine months ended September 30, 2011 were $314.1 million and $981.4 million, respectively, representing a decline of $51.1 million, or 14.0%, and $173.2 million, or 15.0%, from bookings of $365.2 million and combined bookings of $1,154.6 million for the three and nine months ended September 30, 2010, respectively.
Read the The complete Report
Dex One Corp. has a market cap of $32.1 million; its shares were traded at around $0.64 .
Highlight of Business Operations:
We also continue to actively manage expenses and are considering and acting upon various initiatives and opportunities to streamline operations and reduce our cost structure. We commenced our most significant initiative during the fourth quarter of 2010 by implementing a restructuring plan that realigns internal resources to better support our base of business and ensure we have an organizational structure that is optimized to compete in a rapidly evolving marketplace (the "Restructuring Actions"). The Restructuring Actions, which have continued into 2011, include headcount reductions, consolidation of responsibilities and vacating leased facilities. At the time of initial implementation, the Company announced that it expected to incur a restructuring charge of between $30 to $50 million associated with the Restructuring Actions. As a result of the Restructuring Actions, the Company recorded a restructuring charge to earnings of $18.6 million during the fourth quarter of 2010 related to severance of which $0.7 million was paid in cash. During the three and nine months ended September 30, 2011, the Company recorded a restructuring charge to earnings of $4.5 million and $19.2 million, respectively, and made cash payments of $9.9 million and $25.9 million, respectively, related to severance, vacating leased facilities and related restructuring activities. The Company anticipates that restructuring charges associated with the Restructuring Actions will remain within the range noted above, the balance of which will be recognized during the remainder of 2011. See Item 1, “Financial Statements (Unaudited)” - Note 4, “Restructuring Charges” for additional information.GAAP bad debt expense for the three months ended September 30, 2011 increased $1.1 million compared to non-GAAP adjusted bad debt expense for the three months ended September 30, 2010, primarily due to write-off experience associated with a CMR who is under financial distress and is winding down its operations and its impact on allowance factors. GAAP bad debt expense for the nine months ended September 30, 2011 declined $8.3 million compared to non-GAAP combined adjusted bad debt expense for the nine months ended September 30, 2010, primarily due to effective credit and collections practices, which have driven improvement in our accounts receivable portfolio, as well as lower billing volumes associated with declines in advertisers and advertising sales, partially offset by write-off experience associated with the CMR referenced above and its impact on allowance factors. GAAP bad debt expense for the three and nine months ended September 30, 2011 represented 4.2% and 3.4%, respectively, of our net revenue, compared to 3.3% and 3.5% for the non-GAAP adjusted and combined adjusted three and nine months ended September 30, 2010, respectively.
Net income of $22.2 million for the three months ended September 30, 2011 was a direct result of the revenue and expense trends described above. Net (loss) of $(524.5) million for the nine months ended September 30, 2011was a direct result of the goodwill impairment charge and revenue and expense trends described above, partially offset by the income tax benefit described above. Net loss of $(390.6) million and $(903.3) million for the three and eight months ended September 30, 2010, respectively, was directly impacted by the impairment charges noted above, the significant impact of the effects of fresh start accounting and the revenue and expense trends described above, partially offset by the income tax benefit described above.
Advertising sales is a non-GAAP 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 revenues, which under GAAP are recognized under the deferral and amortization method. Advertising sales in current periods will be recognized as gross advertising revenues in future periods as a result of the deferral and amortization method of revenue recognition. Advertising sales for the three and nine months ended September 30, 2011 were $269.3 million and $1,002.6 million, respectively, representing a decline of $42.8 million, or 13.7%, and $178.4 million, or 15.1%, from advertising sales of $312.1 million and combined advertising sales of $1,181.0 million for the three and nine months ended September 30, 2010, respectively.
In order to provide more visibility into what the Company will book as revenue in the future, we are presenting an additional non-GAAP statistical measure called bookings, which represent sales activity associated with our print directories and Internet-based marketing solutions during the period. Bookings associated with our local customers represent signed contracts during the period. Bookings associated with our national customers represent what has been published or fulfilled during the period. Bookings for the three and nine months ended September 30, 2011 were $314.1 million and $981.4 million, respectively, representing a decline of $51.1 million, or 14.0%, and $173.2 million, or 15.0%, from bookings of $365.2 million and combined bookings of $1,154.6 million for the three and nine months ended September 30, 2010, respectively.
Read the The complete Report
