DEX ONE Corp. (DEXO, Financial) filed Quarterly Report for the period ended 2010-03-31.
Dex One Corp. has a market cap of $1.25 billion; its shares were traded at around $24.93 with and P/S ratio of 0.5.
Gross advertising revenues were $52.3 million for the two months ended March 31, 2010 and exclude $257.9 million of gross advertising revenues resulting from our adoption of fresh start accounting. Gross advertising revenues continue to be impacted by declines in advertising sales over the past twelve months, primarily as a result of declines in new and recurring business, mainly driven by (1) declines in overall advertising spending by our clients, (2) the significant impact of the weak local business conditions on consumer purchasing in our clients markets and (3) an increase in competition and more fragmentation in local business search.
Other revenues were $3.3 million for the two months ended March 31, 2010 and exclude $1.8 million of other revenues resulting from our adoption of fresh start accounting. Other revenues include late fees received on outstanding customer balances, barter revenues, commissions earned on sales contracts with respect to advertising placed into other publishers directories, and sales of directories and certain other advertising-related products.
Total production and distribution expenses were $29.0 million for the two months ended March 31, 2010. Production and distribution expenses are comprised of items such as print, paper and distribution expenses, internet production and distribution expenses and amortization of cost-uplift associated with print, paper and distribution expenses resulting from our adoption of fresh start accounting. As a result of our adoption of fresh start accounting, production and distribution expenses exclude the amortization of deferred directory costs under the deferral and amortization method for directories published before the Fresh Start Reporting Date totaling $28.4 million and include amortization of cost-uplift of $1.4 million. Print paper and distribution expenses continue to be impacted by lower page volumes associated with declines in print advertisements and negotiated price reductions in our print and paper expenses. Internet production and distribution expenses have been affected by lower headcount, partially offset by increased purchased traffic costs incurred to direct traffic to our online properties.
Total selling and support expenses were $58.4 million for the two months ended March 31, 2010. Selling and support expenses are comprised of items such as bad debt expense, commissions and salesperson expenses, directory publishing expenses, billing, credit and collection expense, occupancy expenses, advertising expense and amortization of cost uplift associated with commissions resulting from our adoption of fresh start accounting. Due to our adoption of fresh start accounting, selling and support expenses exclude the amortization of deferred directory costs under the deferral and amortization method for directories published before the Fresh Start Reporting Date totaling $28.4 million and include amortization of cost-uplift of $0.5 million. Bad debt expense has been impacted by improving local business conditions in certain of our markets as well as effective credit and collections practices. If clients fail to pay within specified credit terms, we may cancel their advertising in future directories, which could impact our ability to collect past due amounts as well as adversely impact our advertising sales and revenue trends. Commissions and salesperson expenses continue to decline due to lower advertising sales and its effect on variable-based commissions as well as lower headcount resulting from salesforce efficiencies. Directory publishing expenses continue to be affected by declines in print advertisements and lower headcount. Billing, credit and collections expense has been impacted by lower billing volumes associated with declines in advertisers and print advertisements. Occupancy expenses have been impacted by the renegotiation of our leased properties and reduction in the amount of leased properties during the bankruptcy process.
Depreciation and amortization expense was $39.4 million for the two months ended March 31, 2010. Amortization of intangible assets was $30.8 million for the two months ended March 31, 2010 and was impacted by the increase in fair value of our intangible assets and the establishment of the estimated useful lives resulti
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Dex One Corp. has a market cap of $1.25 billion; its shares were traded at around $24.93 with and P/S ratio of 0.5.
Highlight of Business Operations:
On the Effective Date and in accordance with the Plan, $6.1 billion of the Predecessor Companys senior notes, senior discount notes and senior subordinated notes (collectively the notes in default) were exchanged for (a) 100% of the reorganized Dex One equity and (b) $300.0 million of the Dex One Senior Subordinated Notes issued to the holders of the Dex Media West 8.5% Senior Notes due 2010 and 5.875% Senior Notes due 2011 on a pro rata basis in addition to their share of the reorganized Dex One equity. See Item 1, Financial Statements Unaudited Note 6, Long-Term Debt, Credit Facilities and Notes for further details of our long-term debt.Gross advertising revenues were $52.3 million for the two months ended March 31, 2010 and exclude $257.9 million of gross advertising revenues resulting from our adoption of fresh start accounting. Gross advertising revenues continue to be impacted by declines in advertising sales over the past twelve months, primarily as a result of declines in new and recurring business, mainly driven by (1) declines in overall advertising spending by our clients, (2) the significant impact of the weak local business conditions on consumer purchasing in our clients markets and (3) an increase in competition and more fragmentation in local business search.
Other revenues were $3.3 million for the two months ended March 31, 2010 and exclude $1.8 million of other revenues resulting from our adoption of fresh start accounting. Other revenues include late fees received on outstanding customer balances, barter revenues, commissions earned on sales contracts with respect to advertising placed into other publishers directories, and sales of directories and certain other advertising-related products.
Total production and distribution expenses were $29.0 million for the two months ended March 31, 2010. Production and distribution expenses are comprised of items such as print, paper and distribution expenses, internet production and distribution expenses and amortization of cost-uplift associated with print, paper and distribution expenses resulting from our adoption of fresh start accounting. As a result of our adoption of fresh start accounting, production and distribution expenses exclude the amortization of deferred directory costs under the deferral and amortization method for directories published before the Fresh Start Reporting Date totaling $28.4 million and include amortization of cost-uplift of $1.4 million. Print paper and distribution expenses continue to be impacted by lower page volumes associated with declines in print advertisements and negotiated price reductions in our print and paper expenses. Internet production and distribution expenses have been affected by lower headcount, partially offset by increased purchased traffic costs incurred to direct traffic to our online properties.
Total selling and support expenses were $58.4 million for the two months ended March 31, 2010. Selling and support expenses are comprised of items such as bad debt expense, commissions and salesperson expenses, directory publishing expenses, billing, credit and collection expense, occupancy expenses, advertising expense and amortization of cost uplift associated with commissions resulting from our adoption of fresh start accounting. Due to our adoption of fresh start accounting, selling and support expenses exclude the amortization of deferred directory costs under the deferral and amortization method for directories published before the Fresh Start Reporting Date totaling $28.4 million and include amortization of cost-uplift of $0.5 million. Bad debt expense has been impacted by improving local business conditions in certain of our markets as well as effective credit and collections practices. If clients fail to pay within specified credit terms, we may cancel their advertising in future directories, which could impact our ability to collect past due amounts as well as adversely impact our advertising sales and revenue trends. Commissions and salesperson expenses continue to decline due to lower advertising sales and its effect on variable-based commissions as well as lower headcount resulting from salesforce efficiencies. Directory publishing expenses continue to be affected by declines in print advertisements and lower headcount. Billing, credit and collections expense has been impacted by lower billing volumes associated with declines in advertisers and print advertisements. Occupancy expenses have been impacted by the renegotiation of our leased properties and reduction in the amount of leased properties during the bankruptcy process.
Depreciation and amortization expense was $39.4 million for the two months ended March 31, 2010. Amortization of intangible assets was $30.8 million for the two months ended March 31, 2010 and was impacted by the increase in fair value of our intangible assets and the establishment of the estimated useful lives resulti
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