FINANCIALS:
R.H. DONNELLEY CORPORATION Schedule 1
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Amounts in millions, except earnings per share
----------------------------------------------------------------------
Three Months Ended December 31
----------------------------------------
Variance
1999 1998 $ %
----------------------------------------------------------------------
Advertising sales (1)
Directory Advertising
Services(a) $ 182.3 $ 163.7 $ 18.6 11.4%
DonTech Partnership 142.7 136.2 6.5 4.8%
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Total advertising sales $ 325.0 $ 299.9 $ 25.1 8.4%
======================================
Revenue (2) $ 44.4 $ 43.9 0.5 1.1%
-----------------=--------------------
Operating income: (3)
Directory Advertising Services $ 4.1 $ 3.0 $ 1.1 36.7%
DonTech Partnership 24.9 25.7 (0.8) (3.1%)
Directory Publishing Services (2.2) (1.8) (0.4) (22.2%)
General & corporate (5.4) (8.9) 3.5 39.3%
--------------------------------------
Total operating income $ 21.4 $ 18.0 $ 3.4 18.9%
--------------------------------------
Interest & other expense - net (8.8) (9.8) 1.0 10.2%
--------------------------------------
Pre-tax income $ 12.6 $ 8.2 $ 4.4 53.7%
--------------------------------------
Tax (5.1) (3.3) (1.8) (54.5%)
======================================
Net income $ 7.5 $ 4.9 $ 2.6 53.1%
======================================
Earnings per share (EPS):
Basic $ 0.22 $ 0.14 $ 0.08 57.1%
Diluted $ 0.22 $ 0.14 $ 0.08 57.1%
Shares used in computing EPS:
Basic 33.3 34.2
Diluted 33.9 34.4
======================================
D&A - Directory Ad. & Pub. $ 4.0 $ 2.8 $ 1.2 42.9%
D&A - Gen & Corp + DonTech $ 1.5 $ 2.4 $ (0.9) (37.5%)
EBITDA $ 26.9 $ 23.2 $ 3.7 15.9%
----------------------------------------------------------------------
See notes attached.
(a) - 1998 Directory Advertising Services' 4th quarter advertising
sales have been reduced by $6.6 million to exclude the value of
directories which did not publish in 1999.
R.H. DONNELLEY CORPORATION Schedule 2
CONSOLIDATED ADJUSTED STATEMENT OF INCOME
(Unaudited)
Amounts in millions, except earnings per share
----------------------------------------------------------------------
As Adjusted Variance
1999 1998 $ %
----------------------------------------------------------------------
Advertising sales (1)
Directory Advertising
Services(a) $ 617.5 $ 580.4 $ 37.1 6.4%
DonTech Partnership 427.6 408.9 18.7 4.6%
-----------------------------------------
=========================================
Total advertising sales $ 1,045.1 $ 989.3 $ 55.8 5.6%
=========================================
Revenue (2) $ 185.2 $ 169.1 $ 16.1 9.5%
-----------------------------------------
Operating income: (3)
Directory Advertising
Services $ 36.0 $ 32.1 $ 3.9 12.1%
DonTech Partnership 123.5 120.1 3.4 2.8%
Directory Publishing
Services (5.2) (3.0) (2.2) (73.3%)
General & corporate (4) (24.4) (28.4) 4.0 14.1%
-----------------------------------------
Total operating income $ 129.9 $ 120.8 $ 9.1 7.5%
-----------------------------------------
Interest & other expense
- net (5) (36.7) (41.5) 4.8 11.6%
-----------------------------------------
Pre-tax income $ 93.2 $ 79.3 $ 13.9 17.5%
-----------------------------------------
Tax (38.0) (31.7) (6.3) (19.9%)
-----------------------------------------
Net income $ 55.2 $ 47.6 $ 7.6 16.0%
=========================================
Earnings per share (EPS):
Basic $ 1.64 $ 1.39 $ 0.25 18.0%
Diluted $ 1.61 $ 1.38 $ 0.23 16.7%
Shares used in computing EPS:
Basic 33.7 34.2
Diluted 34.2 34.5
=========================================
D&A - Directory Ad. & Pub. $ 13.8 $ 11.9 $ 1.9 16.0%
D&A - Gen & Corp + DonTech $ 6.5 $ 8.4 $ (1.9) (22.6%)
EBITDA $150.2 $ 141.1 $ 9.1 6.4%
----------------------------------------------------------------------
See notes attached.
(a) - 1998 Directory Advertising Services' advertising sales have been
reduced by $6.6 million to exclude the value of directories which did
not publish in 1999.
R.H. DONNELLEY CORPORATION
CONSOLIDATED BALANCE SHEET
(Unaudited)
Amounts in millions
----------------------------------------------------------------------
At 12/31/99
----------------------------------------------------------------------
Assets
Cash and Cash Equivalents $ 2.4
Accounts Receivable - net 78.7
Deferred Contract Costs 9.7
Other Current Assets 11.5
-------------------
Total Current Assets $ 102.3
-------------------
Property and Equipment - net $ 17.6
Computer Software - net 24.2
Partnership Investments 230.2
Other Non-Current Assets 21.1
===================
Total Assets $ 395.4
===================
Liabilities and Shareholders' Deficit
Accounts Payable and Other Current Liabilities $ 58.8
Current Portion - Long-Term Debt 9.8
Long-Term Debt 435.0
Postretirement and Postemployment Benefits 9.4
Deferred Income Taxes 63.0
Other Liabilities 12.2
-------------------
Total Liabilities $ 588.2
-------------------
Shareholders' Deficit $ (192.8)
-------------------
Total Liabilities and
Shareholders' Deficit $ 395.4
----------------------------------------------------------------------
R.H. DONNELLEY CORPORATION Schedule 4
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, and 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 expenses, 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 initial issuance of
$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.
--------------------------------------------------------------------------------
Contact:
Media Contact:
The Dilenschneider Group
Reid H. Gearhart
212/922-0900
or
Analyst Contact:
R.H. Donnelley
Frank M. Colarusso
914/933-3178 |
