research.canaccordgenuity.com/_layouts/researchnoteviewer.aspx?pubid=109212
http://seekingalpha.com/article/2391555-yellow-media-ylwdf-ceo-julien-billot-on-q2-2014-results-earnings-call-transcript?part=single
my notes:
new customers this quarter were 2350 which is the lowest quarter in the last 12 months but Q2 of 2013 was the worst quarter ever.. and Q2 appears seasonally weak. apparently they are targeting 20,000 by 2015 and 40-60,000 long term. aka 5,000 by 2015 and 15,000 long term. (canaccord)
the rest of 411 was purchased at no choice via a put option. $22.7M, which should boost digital revenues by 3.5M/quarter and ebitda by ~0.7M/quarter
targeting growth in customer count by 2017, revenues are still being hurt by print advertising spend from larger customers – spending dynamics
i’m not sure why they are excluding digital revenues — impact from mediative, 411, wall2wall.
increased employee related expenses contributed to killing ebitda and investments. their G&A actually is increasing
seeing a decline in gross profit margin due to decline in print margins
As at June 30, 2014, the fixed charge coverage
ratio fell below 1.1 times. so now $5M is drawn on the ABL
During the first six months of 2014, we purchased common shares of Yellow Media Limited on the open market to fund the
Restricted Share Unit and Performance Share Unit Plan at a cost of $12.5 million compared to $2.4 million during the same
period last year
The adoption of the Yellow Pages 360º Solution helps promote customer retention, as it provides SMEs with comprehensive,
dedicated access to online, mobile and print media placement, customized search engine solutions, website services, social
media presence and digital display advertising. As at June 30, 2014, Yellow Pages 360º Solution customers (defined as YPG
customers who purchase three product categories or more) held a 91% renewal rate, compared to 83% for non-Yellow Pages
360º Solution customers. The overall customer renewal rate remained stable versus the same period last year, reaching 85% as
at June 30, 2014.
note that the new drop off rate of new customers is 9% and ARPA is pretty much 3200.
so 20,000 gets you a run rate revenue of 711M or $177M/quarter. that to me seems like a solid floor. so from there if you assume that they burn at a 66% Gross profit margin, gets you $469.26, and with this quarter they burned 30% in G&A gets you to $255M of stabilized EBITDA at this point in the game.
per the call: 30,000 and then ultimately 40,000 to 60,000
2014 was 20,000 and they are on target.
at 30,000 normalized EBITDA is 384M
formula: (.66-.3)*30000/.09*3200
50/50 mobile/desktop
expect mobile to grow in the coming months
not sure where we are at in terms of cash taxes.
i think that i read somewhere that there was a $15M savings from print consolidation per year or something.
20M. 20% margins for 411. growing. awesome..
planning to spend more in the back half.
lots of spending.
going to dilute the convertible debentures.
print bleed to continue.
$400K of convertible debentures were swapped for shares this quarter