$Y $Y.CA $DXM Yellow Media Q1 2013 Highlight Reel Diluted EPS 1.64

Excluding the impact of Canpages, digital revenues increased by 20.1% during the first quarter of 2013 when compared to the same period last year.

On a comparable basis, excluding the results of Canpages, revenues decreased by 10.2% during the first quarter.

During the first quarter of 2013, we recorded restructuring and special charges of $6.2 million

During the first three months of 2013, we invested in software development and equipment for $14.8 million and $4.1 million, respectively, which was more than the corresponding amounts of $7.3 million and $1.1 million spent during the same period last year. The increase is associated with our investments to transform our business.

Note that total net debt is down to $724M. It dropped by 58M in Q1

The introduction

of premium digital products alongside a differentiated service model for high-end customers has resulted in an improved

customer experience and an abatement of the revenue pressure arising from our larger advertisers.

That probably played a role in the fact that for the first time in a long time, Yellow Media's average revenue per advertiser is pretty much flat QoQ. (Thats in the supplemental document).

Total capital expenditures for the first quarter of 2013 amounted to $17.4 million. As part of our digital transformation, we

invested in our new OMM which is scheduled to be deployed in the second quarter of 2013. We also invested in our new Yellow

Analytics infrastructure and platform as well as improving our search engine.

Arpa decreased by 1. Smallest decrease in a year.

RGU’s went up.

http://www.ypg.com/images/ckeditor/files/2013_Q1_MDA.pdf

http://www.ypg.com/images/ckeditor/files/2013_Q1_SuppDisc.pdf

http://www.ypg.com/images/ckeditor/files/2013_Q1_PR.pdf

45.6% EBITDA margins, overall revenue decline 10.2% excluding Canpages, 15.2% digital growth at 39% of revenues, 723m net debt, 67m FCF.

It's just a quarter, but it makes every analyst's model look conservative. If the stock is worth considerably more based on everybody's pessimistic model, what's it worth in reality?

Cash sweep for May 31 is $26 million...