(See attached tables.)
R.H. DONNELLEY CORPORATION Schedule 1
APPENDIX OF SCHEDULES
Schedule 1 : Appendix of Schedules
Schedule 2 : Consolidated Adjusted Statement of Income
for the Three Months Ended
June 30, 1999 and June 30, 1998
Schedule 3 : Consolidated Adjusted Statement of Income
for the Six Months Ended
June 30, 1999 and June 30, 1998
Schedule 4: Consolidated Balance Sheet at June 30, 1999
Schedule 5: Notes for Consolidated Adjusted Statement
of Income
Supplemental Schedules - Results Q1 1998 through Q2 1999
Schedule 6: Before Restatement - Consolidated Adjusted
Statement of Income for the quarterly
periods from Q1 1998 to Q2 1999. For the
periods prior to the separation on
July 1, 1998, the results have been adjusted
to give affect to the spin-off from
The Dun & Bradstreet Corporation
Schedule 7: With Restatement - Consolidated Adjusted
Statement of Income for the quarterly
periods from Q1 1998 to Q2 1999 to give
affect to the restatement in Q1 1998,
Q4 1998 and Q1 1999
Schedule 8: After Restatement - Consolidated Adjusted
Statement of Income for the quarterly
periods from Q1 1998 to Q2 1999. For the
periods prior to the separation on
July 1, 1998, the results have been adjusted
to give affect to the spin-off from
Dun & Bradstreet, as well as the restatement
in Q1 1998, Q4 1998 and Q1 1999
R.H. DONNELLEY CORPORATION Schedule 2
CONSOLIDATED ADJUSTED STATEMENT OF INCOME
(Unaudited)
Amounts in millions, except earnings per share
Three Months Ended June 30
As Adjusted Variance
1999 1998 $ %
Advertising sales (1)
Directory Advertising
Services $ 198.6 $ 191.2 $ 7.4 3.9%
DonTech Partnership 82.1 78.9 3.2 4.1%
============================================
Total advertising
sales $ 280.7 $ 270.1 $ 10.6 3.9%
============================================
Revenue (2) $ 40.1 $ 38.0 2.1 5.5%
--------------------------------------------
Operating
income: (3)
Directory Advertising
Services $ 6.3 $ 5.9 $ 0.4 6.8%
DonTech Partnership 36.7 34.9 1.8 5.2%
Directory Publishing
Services (0.5) (0.7) 0.2 28.6%
General & corporate (4) (5.0) (3.2) (1.8) -56.3%
--------------------------------------------
Total operating
income $ 37.5 $ 36.9 $ 0.6 1.6%
--------------------------------------------
Interest & other
expense - net (5) (9.2) (10.6) 1.4 13.2%
--------------------------------------------
Pre-tax income $ 28.3 $ 26.3 $ 2.0 7.6%
--------------------------------------------
Tax (6) (11.4) (10.5) (0.9) -8.6%
============================================
Net income $ 16.9 $ 15.8 $ 1.1 7.0%
============================================
Earnings per
share (EPS):
Basic $ 0.50 $ 0.46 $ 0.04 8.7%
Diluted $ 0.49 $ 0.45 $ 0.04 8.9%
Shares used in
computing EPS:
Basic 33.8 34.3
Diluted 34.4 34.6
============================================
D&A - Directory
Ad. & Pub. $ 3.3 $ 3.3 $ - 0.0%
D&A - Gen &
Corp + DonTech $ 1.7 $ 1.7 $ - 0.0%
EBITDA $ 42.5 $ 41.9 $ 0.6 1.4%
See notes attached.
R.H. DONNELLEY CORPORATION Schedule 3
CONSOLIDATED ADJUSTED STATEMENT OF INCOME
(Unaudited)
Amounts in millions, except earnings per share
Six Months Ended June 30
Restated
Restated As Adjusted Variance
1999 1998 $ %
Advertising sales (1)
Directory Advertising
Services $ 313.4 $ 297.2 $ 16.2 5.5%
DonTech Partnership 217.0 208.1 8.9 4.3%
---------------------------------------------
Total advertising
sales $ 530.4 $ 505.3 $ 25.1 5.0%
=============================================
Revenue (2) $ 82.2 $ 71.8 $ 10.4 14.5%
---------------------------------------------
Operating income: (3)
Directory Advertising
Services $ 18.3 $ 16.2 $ 2.1 13.0%
DonTech Partnership 57.5 54.9 2.6 4.7%
Directory Publishing
Services (1.9) (1.0) (0.9) n/m
General & corporate (4) (12.5) (10.4) (2.1) -20.2%
---------------------------------------------
Total operating
income $ 61.4 $ 59.7 $ 1.7 2.8%
---------------------------------------------
Interest & other
expense - net (5) (18.9) (21.3) 2.4 11.3%
---------------------------------------------
Pre-tax income $ 42.5 $ 38.4 $ 4.1 10.7%
---------------------------------------------
Tax (6) (17.1) (15.4) (1.7) -11.0%
---------------------------------------------
Net income $ 25.4 $ 23.1 $ 2.4 10.4%
=============================================
Earnings per
share (EPS):
Basic $ 0.75 $ 0.67 $ 0.08 11.9%
Diluted $ 0.74 $ 0.66 $ 0.08 12.1%
Shares used in
computing EPS:
Basic 33.9 34.2
Diluted 34.4 34.5
=============================================
D&A - Directory
Ad. & Pub. $ 6.6 $ 6.2 $ 0.4 6.5%
D&A - Gen &
Corp + DonTech $ 3.5 $ 3.7 $ (0.2) -5.4%
EBITDA $ 71.5 $ 69.6 $ 2.1 3.0%
See notes attached.
R.H. DONNELLEY CORPORATION Schedule 4
CONSOLIDATED BALANCE SHEET
(Unaudited)
Amounts in millions
At 6/30/99
Assets
Cash and Cash Equivalents $ 6.3
Accounts Receivable - net 62.8
Deferred Contract Costs 15.0
Other Current Assets 5.3
------
Total Current Assets $ 89.4
------
Property and Equipment net $ 18.1
Computer Software net 29.1
Partnership Investments 222.0
Other Non-Current Assets 21.2
======
Total Assets $ 379.8
======
Liabilities and Shareholders
Deficit
Accounts Payable and Other
Current Liabilities $ 63.5
Current Portion Long-Term Debt 6.0
Long-Term Debt 451.8
Postretirement and Postemployment
Benefits 9.8
Deferred Income Taxes 49.0
Other Liabilities 9.7
------
Total Liabilities $ 589.8
------
Shareholders Deficit (Restated) $ (210.0)
------
Total Liabilities and Shareholders
Deficit $ 379.8
------
R.H. DONNELLEY CORPORATION Schedule 5
NOTES FOR CONSOLIDATED ADJUSTED STATEMENT OF INCOME
(1) Advertising sales is the billing value of total advertising sold
for directories published in the period, including RHD's sales
agency relationships and partnerships.
(2) Revenue includes sales commissions received from Bell Atlantic
and Sprint related to sales agency activity performed by RHD, as
well as revenue generated by Cincinnati and Directory Publishing
Services operations.
(3) Operating income has three components. First, results from
operations for Bell Atlantic, Sprint, including the CenDon
partnership, Cincinnati and the company's joint venture in China
are shown as Directory Advertising Services. Second, results from
DonTech, RHD's perpetual joint-venture partnership with
Ameritech, and related fees from Ameritech. Third, results from
Directory Publishing Services which is comprised of RHD's
pre-press directory compilation and graphic arts design
businesses.
(4) General and corporate expenses include corporate general &
administrative, depreciation & amortization and an estimate for
stand-alone corporate overhead expenses as if RHD was a separate
public company for the period prior to the separation from D&B on
July 1, 1998 and actual expenses thereafter.
(5) Interest and other expenses related to the $500 million of
company debt, prior to the separation from D&B on July 1, 1998,
and actual debt and related interest expenses thereafter. Assumes
debt was outstanding for the entire period prior to July 1, 1998.
(6) Taxes include the estimated stand-alone company rate.
(7) On July 27, 1999, the Company announced a change in its recording
of revenue for certain Sprint directories. As a result of this
change, results for the first quarter 1998, fourth quarter 1998
and first quarter 1999 have been restated.
R.H. DONNELLEY CORPORATION Schedule 6
CONSOLIDATED ADJUSTED STATEMENT OF INCOME
(Given affect to the spin-off from Dun & Bradstreet for the
periods prior to the separation on July 1, 1998 and before
the effect of the restatement)
(Unaudited)
Amounts in millions, except earnings per share
1998 1999
Q1 Q2 Q3 Q4 Full Year Q1 Q2
Advertising sales
Directory
Advertising
Services $ 64.9 $ 191.2 $119.5 $ 215.2 $ 590.8 $ 69.9 $198.6
DonTech
Partner-
ship (1) 129.2 78.9 64.6 136.2 408.9 134.8 82.1
----------------------------------------------------------
Total
advertising
sales $ 194.1 $ 270.1 $184.1 $ 351.4 $ 999.7 $204.7 $280.7
==========================================================
Revenue $ 24.3 $ 38.0 $ 53.4 $ 54.3 $ 170.0 $ 31.7 $ 40.1
----------------------------------------------------------
Operating
income:
Directory
Advertising
Services $ 5.5 $ 5.9 $ 12.9 $ 8.3 $ 32.6 $ 6.7 $ 6.3
DonTech
Partnership 20.0 34.9 39.5 25.7 120.1 20.8 36.7
Directory
Publishing
Services (0.3) (0.7) (0.2) (1.8) (3.0) (1.4) (0.5)
General &
corporate (7.2) (3.2) (9.1) (8.9) (28.4) (7.5) (5.0)
----------------------------------------------------------
Total
operating
income $ 18.0 $ 36.9 $ 43.1 $ 23.3 $ 121.3 $ 18.6 $ 37.5
----------------------------------------------------------
Interest &
other
expense
- net (10.7) (10.6) (10.4) (9.8) (41.5) (9.7) (9.2)
----------------------------------------------------------
Pre-tax
income $ 7.4 $ 26.3 $ 32.7 $ 13.5 $ 79.8 $ 8.9 $ 28.3
------------------------------------------ ---------------
Tax (2.9) (10.5) (13.1) (5.4) (31.9) (3.6) (11.4)
------------------------------------------ ---------------
Net income $ 4.4 $ 15.8 $ 19.6 $ 8.1 $ 47.9 $ 5.3 $ 16.9
==========================================================
Earnings per
share
(EPS):
Basic $ 0.13 $ 0.46 $ 0.57 $ 0.24 $ 1.40 $ 0.16 $ 0.50
Diluted $ 0.13 $ 0.45 $ 0.57 $ 0.24 $ 1.39 $ 0.15 $ 0.49
Shares used
in computing
EPS:
Basic 34.2 34.3 34.2 34.2 34.2 34.0 33.8
Diluted 34.5 34.6 34.4 34.4 34.5 34.3 34.4
==========================================================
D&A - Directory
Ad. & Pub. $ 2.9 $ 3.3 $ 2.9 $ 2.8 $ 11.9 $ 3.3 $ 3.3
D&A - Gen & Corp
+ DonTech $ 2.0 $ 1.7 $ 2.3 $ 2.4 $ 8.4 $ 1.8 $ 1.7
EBITDA $ 22.9 $ 41.9 $48.3 $ 28.5 $ 141.6 $ 23.7 $ 42.5
(1) The DonTech Partnership 1998 advertising sales have been
adjusted to conform to 1999's quarterly publication schedule so
that quarterly comparisons will be more meaningful. Actual
advertising sales for the DonTech Partnership reported in 1998
were: $137.9 million for the first quarter , $64.3 million for
the second quarter, $63.2 million for the third quarter, $137.7
for the fourth quarter 1998 and $403.1 million for the full year.
R.H. DONNELLEY CORPORATION Schedule 7
CONSOLIDATED ADJUSTED STATEMENT OF INCOME
(Effect of the restatement)
(Unaudited)
Amounts in millions, except earnings per share
1998 1999
Q1 Q2 Q3 Q4 Full Year Q1 Q2
Advertising
sales
Directory
Advertising
Services $ 41.1 $ - $ - $ (44.9) $ (3.8) $ 44.9 $ -
DonTech
Partnership - - - - - - -
----------------------------------------------------------
Total
advertising
sales $ 41.1 $ - $ - $ (44.9) $ (3.8) $ 44.9 $ -
==========================================================
Revenue $ 9.5 $ - $ - $ (10.4) $ (0.9) $ 10.4 $ -
---------------------------------------------------------
Operating
income:
Directory
Advertising
Services $ 4.8 $ - $ - $ (5.3) $ (0.5) $ 5.3 $ -
DonTech
Partnership - - - - - - -
Directory
Publishing
Services - - - - - - -
General &
corporate - - - - - - -
----------------------------------------------------------
Total
operating
income $ 4.8 $ - $ - $ (5.3) $ (0.5) $ 5.3 $ -
------------------------------------------ --------------
Interest &
other
expense
- net - - - - - - -
----------------------------------------------------------
Pre-tax
income $ 4.8 $ - $ - $ (5.3) $ (0.5) $ 5.3 $ -
----------------------------------------------------------
Tax (1.9) - - 2.1 0.2 (2.1) -
----------------------------------------------------------
Net income $ 2.9 $ - $ - $ (3.2) $ (0.3) $ 3.2 $ -
==========================================================
Earnings per
share
(EPS):
Basic $ 0.08 $ - $ - $ (0.10) $ (0.01) $ 0.09 $ -
Diluted $ 0.08 $ - $ - $ (0.10) $ (0.01) $ 0.10 $ -
Shares used
in
computing
EPS:
Basic 34.2 34.3 34.2 34.2 34.2 34.0 33.8
Diluted 34.5 34.6 34.4 34.4 34.5 34.3 34.4
==========================================================
D&A - Directory
Ad. & Pub. $ - $ - $ - $ - $ - $ - $ -
D&A - Gen &
Corp
+ DonTech $ - $ - $ - $ - $ - $ - $ -
EBITDA $ 4.8 $ - $ - $ (5.3) $ (0.5) $ 5.3 $ -
NOTE: The results by quarter may not equal the annual results due to
rounding
R.H. DONNELLEY CORPORATION Schedule 8
CONSOLIDATED ADJUSTED STATEMENT OF INCOME
(Given affect to the spin-off from Dun & Bradstreet for the
periods prior to the separation on July 1, 1998 and
the effect of the restatement)
(Unaudited)
Amounts in millions, except earnings per share
1998 1999
Q1 Q2 Q3 Q4 Full Year Q1 Q2
Advertising sales
Directory
Advertising
Services $ 106.0 $ 191.2 $ 119.5 $ 170.3 $ 587.0 $114.8 $198.6
DonTech
Partner-
ship (1) 129.2 78.9 64.6 136.2 408.9 134.8 82.1
---------------------------------------------------------
Total
advertising
sales $ 235.2 $ 270.1 $ 184.1 $ 306.5 $ 995.9 $249.6 $280.7
=========================================================
Revenue 33.8 38.0 53.4 43.9 $ 169.1 $ 42.1 $ 40.1
---------------------------------------------------------
Operating income:
Directory
Advertising
Services 10.3 5.9 12.9 3.0 $ 32.1 $ 12.0 $ 6.3
DonTech
Partnership 20.0 34.9 39.5 25.7 120.1 20.8 36.7
Directory
Publishing
Services (0.3) (0.7) (0.2) (1.8) (3.0) (1.4) (0.5)
General &
corporate (7.2) (3.2) (9.1) (8.9) (28.4) (7.5) (5.0)
---------------------------------------------------------
Total
operating
income $ 22.8 $ 36.9 $ 43.1 $ 18.0 $ 120.8 $ 23.9 $ 37.5
---------------------------------------------------------
Interest &
other
expense
- net (10.7) (10.6) (10.4) (9.8) (41.5) (9.7) (9.2)
----------------------------------------------------------
Pre-tax
income $ 12.1 $ 26.3 $ 32.7 $ 8.2 $ 79.3 $ 14.2 $ 28.3
----------------------------------------------------------
Tax (4.8) (10.5) (13.1) (3.3) (31.7) (5.7) (11.4)
------------------------------------------- --------------
Net income $ 7.3 $ 15.8 $ 19.6 $ 4.9 $ 47.6 $ 8.5 $ 16.9
==========================================================
Earnings per
share (EPS):
Basic $ 0.21 $ 0.46 $ 0.57 $ 0.14 $ 1.39 $ 0.25 $ 0.50
Diluted $ 0.21 $ 0.45 $ 0.57 $ 0.14 $ 1.38 $ 0.25 $ 0.49
Shares used
in computing
EPS:
Basic 34.2 34.3 34.2 34.2 34.2 34.0 33.8
Diluted 34.5 34.6 34.4 34.4 34.5 34.3 34.4
=========================================================
D&A - Directory
Ad. & Pub. $ 2.9 $ 3.3 $ 2.9 $ 2.8 $ 11.9 $ 3.3 $ 3.3
D&A - Gen & Corp
+ DonTech $ 2.0 $ 1.7 $ 2.3 $ 2.4 $ 8.4 $ 1.8 $ 1.7
EBITDA $ 27.7 $ 41.9 $ 48.3 $ 23.2 $ 141.1 $ 29.0 $ 42.5
NOTE: The results by quarter may not equal the annual results due to
rounding
(1) - The DonTech Partnership 1998 advertising sales have been adjusted to conform to 1999's quarterly publication schedule so that quarterly comparisons will be more meaningful. Actual advertising sales for the DonTech Partnership reported in 1998 were: $137.9 million for the first quarter , $64.3 million for the second quarter, $63.2 million for the third quarter, $137.7 for the fourth quarter 1998 and $403.1 million for the full year.
--------------------------------------------------------------------------------
Contact:
R.H. Donnelley
Analyst Contact:
Frank M. Colarusso, 914/933-3178
or
The Dilenschneider Group
Media Contact:
Reid H. Gearhart, 212/922-0900
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