DexYP® Announces First Quarter 2019 Financial Results

DALLAS–(BUSINESS WIRE)–DexYP®, a leading small business software provider, announced today
financial results for first quarter 2019.


Key highlights for DexYP:

  • Grew Thryv revenue $3 million year-over-year to an annual recurring
    revenue rate of $107 million
  • Drove EBITDA margin to 31% from 29% in Q1 2018
  • Generated $63 million of Free Cash Flow, a $9 million improvement over
    2018

Thryv®
is helping small business owners to take control of their businesses,”
said DexYP CEO Joe Walsh. “Paired with Thryv Leads, Thryv is becoming an
indispensable tool to drive new business, communicate with clients, and
get paid.”

 

First Quarter 2019 Pro Forma Results

 
Q1
    Variance
  2019       2018     Fav (Unfav)   %  
(in thousands)

Operating/Pro Forma Net Revenue

(a), (b)  
Print $ 180,939 $ 242,919 $ (61,981 ) -25.5 %
Thryv 26,701 23,867 2,833 11.9 %
Thryv Leads 5,537 5,537
IYP 81,219 107,136 (25,917 ) -24.2 %
Presence 28,858 34,114 (5,256 ) -15.4 %
SEM 62,723 87,623 (24,900 ) -28.4 %
Other Revenue   4,265       2,032       2,233     109.9 %
Total Operating/Pro Forma Net Revenue $ 390,241     $ 497,692     $ (107,451 )   -21.6 %
 
Variable Expenses   118,421       154,982       (36,561 )   -23.6 %
Variable Profit $ 271,820 $ 342,711 $ (70,890 ) -20.7 %
Variable Margin 69.7 % 68.9 %
 
Total Direct Expenses   97,476       123,040       (25,565 )   -20.8 %
Direct Profit $ 174,344 $ 219,670 $ (45,326 ) -20.6 %
Total Direct Margin 44.7 % 44.1 %
 
Indirect Overhead   52,692       73,563       (20,871 )   -28.4 %
Adjusted Pro Forma EBITDA (a), (c) $ 121,653     $ 146,107     $ (24,454 )   -16.7 %
Adjusted Pro Forma EBITDA Margin % 31.2 % 29.4 % 1.8 %
             
Free Cash Flow (a), (d), (e) $ 62,785     $ 53,479     $ 9,306     17.4 %
 

Net Debt

(a)
Term Note $ 770,000 $ 610,000 $ (160,000 ) -26.2 %
ABL         152,812       152,812     100.0 %
Total Outstanding Debt $ 770,000 $ 762,812 $ (7,188 ) -0.9 %
Less: Cash (313,437 ) (4,158 ) 309,279 7438.2 %
             
Net Debt (e) $ 456,563     $ 758,654     $ 302,091     39.8 %
 

Footnotes:

(a)   All 2019 figures presented are preliminary, subject to change, and
unaudited. Material changes may result from audit procedures.
(b) Pro Forma Net Revenue is applicable for 2018 only, and is adjusted
for acquisition accounting.
(c) Adjusted Pro Forma EBITDA excludes interest, taxes, depreciation and
amortization, and other non-cash/non-recurring expenses, including
adjustments for acquisition accounting, integration costs including
YP acquisition related expenses, long-term incentive compensation,
and pension expense.
(d) Free Cash Flow reflects cash generated from operating activities,
less capital expenditures and interest payments.
(e) Net debt excludes YP related financing obligations. The cash portion
of these financing obligations, which will be paid out by August
2022, is approximately $2.2 million.
 

Earnings Conference Call Information

DexYP will host an investor conference call at 9 a.m. CDT on Thursday,
April 25, 2019. Individuals within the United States can access the
conference call by dialing (888) 603-6873. International participants
should dial (973) 582-2706. The passcode is: 3287396.

Basis of Presentation and Non-GAAP Financial Measures

The financial information accompanying this release provides a
reconciliation of GAAP to non-GAAP and adjusted pro forma non-GAAP
results. DexYP believes that the use of non-GAAP financial measures
provides useful information to investors to gain an overall
understanding of its current financial performance. Specifically, DexYP
believes the non-GAAP results provide useful information to management
and investors by excluding certain nonrecurring items that DexYP
believes are not indicative of its core operating results. In addition,
non-GAAP financial measures are used by management for budgeting and
forecasting as well as subsequently measuring DexYP’s performance, and
DexYP believes that non-GAAP results provide investors with financial
measures that most closely align to its internal financial measurement
processes.

About DexYP

DexYP®
builds and owns Thryv®,
the simple, easy-to-use software that helps small business owners with
the daily demands of running a business; and allows them to take control
and be more successful. Thryv provides modernized business functions
allowing them to manage their time, communicate with clients, and get
paid. These include building a digital customer list, communicating with
customers via email and text, updating business listings across the
internet, accepting appointments, sending notifications and reminders,
managing ratings and reviews, generating estimates and invoices,
processing payments, and issuing invoices and coupons.

DexYP
delivers business services to more than 400,000 small businesses across
America that enable them to compete and win in today’s economy.

DexYP
also provides consumer services through our market-leading search,
display and social products—and connects local businesses to the over 25
million monthly visitors of DexKnows.com®, Superpages.com® and
yellowpages.com search portals; and local print directories The Real
Yellow Pages®. For more information about the company, visit dexyp.com.

Forward-Looking Statements

Some statements included in this release constitute forward-looking
statements. Statements that include the words “may,” “will,” “could,”
“should,” “would,” “believe,” “anticipate,” “forecast,” “estimate,”
“expect,” “preliminary,” “intend,” “plan,” “project,” “outlook” and
similar statements of a future or forward-looking nature identify
forward-looking statements. You should not place undue reliance on these
statements, as they are not guarantees of future performance.
Forward-looking statements provide current expectations with respect to
our financial performance and future events with respect to our business
and industry in general. Forward-looking statements are based on certain
assumptions and include any statement that does not directly relate to
any historical or current fact. Accordingly, there are or will be
important factors that could cause our actual results to differ
materially from those indicated in these statements. We believe that
these factors include, but are not limited to, the risks related to the
following: the Company’s ability to maintain adequate liquidity to fund
operations; the Company’s future operating and financial performance;
limitations on our operating and strategic flexibility and the ability
to operate our business, finance our capital needs or expand business
strategies under the terms of our credit facilities; our ability to
retain existing business and obtain and retain new business; general
economic or business conditions affecting the markets we serve;
declining use of print yellow page directories by consumers; our ability
to collect trade receivables from clients to whom we extend credit;
credit risk associated with our reliance on small and medium sized
businesses as clients; our ability to attract and retain key managers;
increased competition in our markets; our ability to obtain future
financing due to changes in the lending markets or our financial
position; our ability to maintain agreements with major Internet search
and local media companies; reduced advertising spending and increased
contract cancellations by our clients, which causes reduced revenue;
and, our ability to anticipate or respond effectively to changes in
technology and consumer preferences; and our ability to successfully
integrate the YP business with the Company’s business. With respect to
the acquisition, important factors could cause actual results to differ
materially from those indicated by forward-looking statements and
projections included herein, including, but not limited to: the risk
that anticipated cost savings, growth opportunities and other financial
and operating benefits as a result of the transaction may not be
realized or may take longer to realize than expected, the risk that
benefits from the transaction may be significantly offset by costs
incurred in integrating the companies, including, coordinating
geographically separate organizations, integrating business cultures,
which could prove to be incompatible, difficulties and costs of
integrating information technology systems; and the potential difficulty
in retaining key officers and personnel. All subsequent written and oral
forward-looking statements attributable to us or persons acting on our
behalf are expressly qualified in their entirety by such cautionary
statements.

If one or more events related to these or other risks or uncertainties
materialize, or if our underlying assumptions prove to be incorrect,
actual results may differ materially from what we anticipate. All
forward-looking statements included in this press release are expressly
qualified in their entirety by the foregoing cautionary statements.
These forward-looking statements speak only as of the date hereof and,
other than as required by law, we undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.

Contacts

Media Contact:
Paige Blankenship
DexYP
972.453.3012
paige.blankenship@dexyp.com

Investor Contact:
KJ Christopher
DexYP
972.453.7068
KJ.Christopher@dexyp.com