R.H. Donnelley Corporation Financials
CONSOLIDATED STATEMENT OF INCOME
Amounts in millions, except earnings per share
Three Months Ended March 31
Reported As Adjusted Variance
1999 1998
$ %
Advertising sales (1)
Directory Advertising
Services $ 69.9 $ 64.9 $ 5.0 7.7%
DonTech Partnership 134.8 129.2 5.6 4.3%
Total advertising
sales $204.7 $ 194.1 $ 10.6 5.5%
Revenue (2) $ 31.7 $ 24.3 7.4 30.5%
Operating income: (3)
Directory $ 6.7 $ 5.5 $ 1.2 21.8%
Advertising Services
DonTech Partnership 20.8 20.0 0.8 4.0%
Directory (1.4) (0.3) (1.1) n/m
Publishing Services
General &
corporate (4) (7.5) (7.2) (0.3) -4.2%
Total operating income $ 18.6 $ 18.0 $ 0.6 3.3%
Interest & other
expense - net (5) (9.7) (10.7) 0.9 8.4%
Pre-tax income $ 8.9 $ 7.4 $ 1.6 21.6%
Tax (6) (3.6) (2.9) (0.7) -24.1%
Net income $ 5.3 $ 4.4 $ 0.9 20.5%
Earnings per share
(EPS):
Basic $ 0.16 $ 0.13 $ 0.03 23.1%
Diluted $ 0.15 $ 0.13 $ 0.02 15.4%
Shares used in
computing EPS:
Basic 34.0 34.2
Diluted 34.3 34.5
D & A - Directory Ad.
& Publishing $ 3.3 $ 2.9 $ 0.4 13.8%
D & A - Gen. & Corp. &
DonTech 1.8 2.0 (0.2) -10.0%
EBITDA $ 23.7 $ 22.9 $ 0.8 3.5%
R.H. Donnelley Corporation
NOTES FOR CONSOLIDATED 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 China joint venture 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.
R.H. Donnelley Corporation
CONSOLIDATED STATEMENT OF INCOME
Reconciliation to As Adjusted Results
Amounts in millions, except earnings per share
Three Months Ended March 31, 1998
As Adjustments As
Reported Adjusted
Advertising sales
Directory $ 64.9 $ 0.0 $ 64.9
Advertising Services
DonTech Partnership 129.2 0.0 129.2
Total advertising
sales $ 194.1 $ 0.0 $ 194.1
Revenue $ 24.3 $ 0.0 $ 24.3
Operating income:
Directory $ 5.5 $ 0.0 $ 5.5
Advertising Services
DonTech Partnership 20.0 0.0 20.0
Directory Publishing (0.3) 0.0 (0.3)
Services
General & corporate (5.0) (2.2)(1) (7.2)
Total operating income $ 20.2 $ (2.2) $ 18.0
Interest & other 0.0 (10.7)(2) (10.7)
expense - net
Pre-tax income $ 20.2 $(12.9) $ 7.4
Tax (8.1) 5.1(3) (2.9)
Net income $ 12.1 $ (7.7) $ 4.4
Earnings per share
(EPS):
Basic $ 0.36 $(0.23) $ 0.13
Diluted $ 0.35 $(0.22) $ 0.13
Shares used in
computing EPS:
Basic 34.2 34.2
Diluted 34.5 34.5
D & A - Directory Ad. &
Publishing $ 2.9 $ 0.0 $ 2.9
D & A - Gen. & Corp. &
DonTech 2.0 0.0 2.0
EBITDA $ 25.1 $(2.2) $ 22.9
Notes:
(1) To include estimated additional stand-alone corporate
overhead expense prior to the separation from D&B.
(2) To include estimated interest and debt financing costs.
(3) To include the tax effect of the adjustments at the stand-alone
tax rate.
R.H. Donnelley Corporation
CONSOLIDATED BALANCE SHEET
Amounts in millions
At 3/31/99 At 12/31/98
Assets
Cash and Cash Equivalents $ 5.8 $ 2.3
Accounts Receivable - net 61.1 84.2
Deferred Contract Costs 13.2 6.4
Other Current Assets 4.5 4.2
Total Current Assets $84.6 $ 97.1
Property and Equipment - net $19.3 $ 21.1
Computer Software - net 31.1 33.5
Partnership Investments 212.5 216.5
Other Non-Current Assets 21.3 22.9
Total Assets $368.8 $391.1
Liabilities and Shareholders' Deficit
Accounts Payable and Other Current
Liabilities $71.1 $ 71.2
Current Portion - Long-Term Debt 5.1 4.1
Long-Term Debt 445.7 464.5
Postretirement and Postemployment
Benefits 9.6 9.6
Deferred Income Taxes 50.3 50.9
Other Liabilities 9.7 12.4
Total Liabilities $591.5 $612.7
Shareholders' Deficit (222.7) (221.6)
Total Liabilities and Shareholders' $368.8 $391.1
Deficit
Contact:
Media Contact:
Contact:
Reid H. Gearhart
The Dilenschneider Group
212.922.0900
or
Analyst
Frank M. Colarusso
R.H.Donnelley
914.933.3178
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