Machine Learning Authors: Yeshim Deniz, Pat Romanski, Liz McMillan, Elizabeth White, Corey Roth

News Feed Item

Yellow Media Inc. Reports Third-Quarter 2012 Financial Results

- Company receives approval from the requisite majority of its debtholders and shareholders on the proposed recapitalization

MONTREAL, QUEBEC -- (Marketwire) -- 11/06/12 -- Yellow Media Inc. (TSX:YLO) released its financial results today for the third quarter ending September 30, 2012, and provided an update on its proposed recapitalization (the "Recapitalization"). On July 23, 2012, the Company proposed a recapitalization transaction aimed at significantly reducing the Company's debt and improving its maturity profile, with new debt first coming due in 2018.

This Recapitalization will allow the Company to align its capital structure with its operating strategy. It will ensure the necessary financial flexibility to pursue the Company's ongoing transformation in order to enhance long-term value for stakeholders.

On September 6, 2012, Yellow Media Inc. held debtholder and shareholder meetings in Montreal to obtain support for the plan of arrangement under the Canada Business Corporations Act implementing the Recapitalization. The Recapitalization was approved by the requisite majority of its debtholders and shareholders at their respective meetings, with 70.39% of support received from the debtholders and 77.26% of support received from the shareholders.

The court hearing for the final approval of the Recapitalization ended on October 23, 2012. A decision from the Quebec Superior Court is pending.

The Company recorded net earnings of $24.0 million during the quarter ending September 30, 2012. During the third quarter of 2012, the Company incurred $37.6 million of non-recurring expenses, which do not reflect the ongoing operations of the business. For the same quarter last year, the Company recorded a net loss from continuing operations of $2.8 billion as a result of a goodwill impairment charge of $2.9 billion. Net earnings from continuing operations before the impairment charge were $74.6 million. Net earnings per share for the third quarter ending September 30, 2012 were $0.04 compared to net earnings per share from continuing operations before the impairment charge of $0.14 in 2011.

Adjusted earnings were $77.1 million for the quarter compared to $69.2 million of adjusted earnings from continuing operations last year. Adjusted earnings per common share for the quarter were $0.15 versus $0.14 of adjusted earnings per common share from continuing operations in 2011. The increase in adjusted earnings is due to lower cash taxes and lower cash interest payments, partially offset by a decrease in EBITDA.

Revenues for the third quarter of 2012 were $267.7 million compared to $323.4 million last year. The 17.2% decrease is due principally to lower print revenues, the discontinuation of duplicate directories published by Canpages, and the divestiture of LesPAC on November 14, 2011. On a comparable basis, excluding the impact of the changes to the Canpages business, the LesPAC divestiture and YPG USA, revenues decreased by 12.5% versus the same period last year.

Online revenues for the quarter were $92.0 million compared to $87.3 million last year, representing growth of 5.3%. On a comparable basis, excluding the impact of the changes to the Canpages business, the LesPAC divestiture and YPG USA, online revenues grew 14.1% versus the same period last year. Digital revenues currently represent over 34% of total revenues.

Income from operations for the third quarter ending September 30, 2012 was $73.5 million. This compares to income from operations before the impairment charge of $127.7 million for the same period last year. EBITDA for the quarter declined from $166.0 million to $137.8 million, and the EBITDA margin remained relatively stable at 51.5% compared to 51.3% in 2011.

"Yellow Media has a century-long legacy of catering to the needs of locally-based small and medium-sized companies through marketing advice and solutions," said Marc P. Tellier, President and Chief Executive Officer of Yellow Media Inc. "Our digital transformation benefits these businesses by providing them with the same trusted expert advice alongside an extensive portfolio of online, mobile, and web-related products designed to increase their digital presence in today's marketplace."

Continued Progress on Yellow Pages Group's Digital Strategy

The Yellow Pages 360 degrees Solution offers a multi-channel approach complementing the challenges SMEs face, bringing single-point access to a comprehensive suite of products and services. Yellow Pages Group's ("YPG's") tailored advertising mix includes online, mobile and print media platforms, managed website services, customized search engine marketing and search engine optimization, and Yellow Pages(TM) Analytics, alongside marketing support to best manage the local performance marketing needs of Canadian businesses.

In an effort to meet the needs of larger advertisers, Mediative is supporting YPG by delivering search engine optimization, search engine marketing and usability services to high end local clients with a new product line called Digital PowerPlay(TM). Introduced during the third quarter of 2012, Digital PowerPlay(TM) establishes and optimizes a business' digital presence by determining the necessary steps to maximize qualified leads across various digital channels.

As at September 30, 2012, the advertiser penetration of YPG's 360 degrees Solution (defined as advertisers who subscribe to three product categories or more) was 14.0% compared to 4.1% at the end of the same period last year.

Mobile continues to gain traction within the Yellow Pages 360 degrees Solution product suite. As at September 30, 2012, the Company had approximately 21,600 Canadian SMEs purchasing mobile products, representing approximately 39,800 mobile units.

In response to the societal, cultural and technological trends that have changed the way consumers and businesses find each other, and which have fuelled the Company's digital transformation, YPG launched a new ad campaign in October 2012. The campaign focuses on "Meet the New Neighborhood," and demonstrates the relevance of the Company's digital tools, platforms and expertise in connecting consumers with local businesses.

Enhancing the User Experience

To promote increased traffic across its network of properties and provide valuable business leads to Canadian advertisers, YPG continues to invest in the online user experience. YPG's network of sites currently reaches 9.1 million unduplicated unique visitors, representing 33% of Canada's online population.

YPG's business transformation also revolves around the continued improvement of the mobile user experience. The Company's mobile applications have been downloaded 4.7 million times, compared to 3.0 million times at the same period last year. During the quarter, the YP.ca application was fully redesigned to include more user relevant content. The homepage of the YP.ca application now includes quick access to relevant groupings of business listings and neighborhood deals pertaining to the user's search category.

YellowAPI.com, the Company's public application programming interface, currently has over 2,200 software developers enrolled. These developers power their mobile applications with YPG's database of 1.5 million business listings, generating significant visibility for small and medium sized businesses nationwide. During the third quarter, MyCityWay released Canadian versions of their local discovery applications using the data available through YellowAPI.com. MyCityWay is currently one of the top tier and award winning local search and discovery applications in the United States.


Mediative is a leading Canadian digital media advertising company, offering extensive display, mobile and other location-based marketing solutions. Reaching approximately 15.6 million unique visitors per month, Mediative's online ad network matches advertisers with the websites of premium online brands.

During the quarter, Mediative enhanced its location-based offering with the launch of a flexible mobile advertising network enabling advertisers to reach consumers based on their intent to buy. Mediative currently offers the targeted marketing power of 18 mobile applications to help marketers reach local audiences on any kind of mobile device.

Capital Structure

As at September 30, 2012, the Company had approximately $1.4 billion of net debt, or $2 billion including preferred shares, Series 1 and 2, and convertible instruments. The net debt to Latest Twelve Month EBITDA ratio as at September 30, 2012 was 2.7 times compared to 2.5 times as at December 31, 2011.

Upon completion of the Recapitalization, the Company will have debt of approximately $877.5 million consisting of $775 million of Senior Secured Notes and $102.5 million of Subordinated Unsecured Exchangeable Debentures. This compares to total debt and preferred shares Series 1 and 2 of $2.4 billion as at September 30, 2012. Annual interest expense will also be reduced by approximately $45 million.

The Recapitalization will exchange the Company's credit facilities and medium term notes, representing $1.8 billion of the Company's debt, for a combination of:

--  $775 million of 9% Senior Secured Notes due in 2018; 
--  $100 million of Subordinated Unsecured Exchangeable Debentures due in
    2022, with interest payable in cash at 8% or in additional debentures at
--  23,062,948 New Common Shares, representing 82.5% of the New Common
    Shares; and  
--  $250 million of cash. 

Holders of existing convertible debentures will receive, in exchange for their securities, a combination of:

--  $2.5 million of Subordinated Unsecured Exchangeable Debentures due in
    2022, with interest payable in cash at 8% or in additional debentures at
--  497,852 New Common Shares, representing 1.8% of the New Common Shares;
--  484,487 Warrants, representing in the aggregate 1.7% of the New Common

Holders of existing preferred shares and common shares will receive, in exchange for their securities, a combination of:

--  4,394,288 New Common Shares, representing 15.7% of the New Common
    Shares; and  
--  2,511,022 Warrants, representing in the aggregate 9.0% of the New Common

Details of the Recapitalization are currently available on SEDAR (www.sedar.com) and the Company's website (http://www.ypg.com/en/investors/recapitalization-transaction).

Investor Conference Call

Yellow Media Inc. will hold an analyst and media call at 9:00 a.m. (Eastern Time) on November 6, 2012 to discuss the third quarter results. The call may be accessed by dialing (416) 340-2216 within the Toronto area, or 1 866 226-1792 outside of Toronto.

The call will be simultaneously webcast on the Company's website at http://www.ypg.com/en/investors/financial-reports/2012/quarterly-reports/third-quarter.

The conference call will be archived in the Investor Center of the site at www.ypg.com. A playback of the call can also be accessed from November 6 to November 13, 2012 by dialing (905) 694-9451 within the Toronto area, or 1 800 408-3053 outside Toronto. The conference passcode is 2321162.

About Yellow Media Inc.

Yellow Media Inc. (TSX:YLO) is a leading media and marketing solutions company in Canada. The Company owns and operates some of Canada's leading properties and publications including Yellow Pages(TM) print directories, YellowPages.ca(TM), Canada411.ca and RedFlagDeals.com(TM). Its online destinations reach over 9 million unique visitors monthly and its mobile applications for finding local businesses and deals have been downloaded over 4 million times. Yellow Media Inc. is also a leader in national digital advertising through Mediative, a digital advertising and marketing solutions provider to national agencies and advertisers. For more information, visit www.ypg.com.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements about the objectives, strategies, financial conditions, results of operations and businesses of the Company. These statements are forward-looking as they are based on our current expectations, as at November 6, 2012, about our business and the markets we operate in, and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations are discussed in section 7 of our November 6, 2012 Management's Discussion and Analysis. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.

Financial Highlights                                                        
(in thousands of Canadian dollars - except share and per share information) 
                              For the three-month        For the nine-month 
                                    periods ended             periods ended 
                                    September 30,             September 30, 
Yellow Media Inc.               2012         2011         2012         2011 
Revenues                    $267,711     $323,441     $843,268   $1,015,551 
Income (loss) from                                                          
 operations                  $73,548  ($2,772,299) ($2,662,826) ($2,524,815)
Net earnings (loss) from                                                    
 continuing operations       $24,017  ($2,806,099) ($2,777,541) ($2,756,344)
Basic earnings (loss)                                                       
 per share from                                                             
 continuing operations                                                      
 attributable to common                                                     
 shareholders                  $0.04       ($5.52)      ($5.45)      ($5.42)
Cash flow from operating                                                    
 activities from                                                            
 continuing operations       $49,640      $43,985     $176,824     $243,609 
EBITDA(1)                   $137,775     $165,998     $429,036     $532,509 
EBITDA margin(1)                51.5%        51.3%        50.9%        52.4%
Adjusted earnings from                                                      
 operations(1)               $77,145      $69,232     $235,318     $304,195 
Weighted average number                                                     
 of common shares                                                           
 outstanding             512,610,477  509,752,238  512,600,405  511,591,101 
Adjusted earnings per                                                       
 common share from                                                          
 continuing operations         $0.15        $0.14        $0.46        $0.59 
Dividends on common                                                         
 shares                            -      $40,360            -     $207,345 
Dividends declared per                                                      
 common share                      -        $0.08            -        $0.40 
Payout ratio                       -           57%           -           68%

Non-IFRS Measures(1 )

In order to provide a better understanding of the results, the Company uses the term EBITDA, defined as income from operations before depreciation and amortization, impairment of goodwill and intangible assets, recapitalization and acquisition-related costs and restructuring and special charges. Management believes this measure is reflective of ongoing operations. The Company also uses the term Adjusted earnings from continuing operations, defined as net earnings (loss) from continuing operations available to common shareholders excluding amortization of intangible assets attributable to shareholders, non-cash financial charges, non-cash income taxes and non-recurring items such as recapitalization and acquisition-related costs, impairment of goodwill and intangible assets, restructuring and special charges, gain on sale of assets, gain on investment and impairment of investment in associate. These terms are not performance measures defined under IFRS, they do not have any standardized meaning and are therefore not likely to be comparable to similar measures used by other publicly traded companies. Management believes EBITDA and Adjusted earnings from continuing operations to be important measures. The table below is a reconciliation of Adjusted earnings from continuing operations to the most comparable IFRS financial measures:

Adjusted earnings from continuing operations                                
(in thousands of Canadian dollars - except share and per share information) 

                             For the three-month         For the nine-month 
                                   periods ended              periods ended 
                                   September 30,              September 30, 
                               2012         2011         2012          2011 
Net earnings (loss) from                                                    
 continuing operations      $24,017  ($2,806,099) ($2,777,541)  ($2,756,344)
Attributable to non-                                                        
 controlling interest           (21)          84          (48)          441 
Dividends to preferred                                                      
 shares series 3, 5 and                                                     
 7 shareholders              (5,583)      (5,583)     (16,751)      (16,955)
Net earnings (loss) from                                                    
 continuing operations                                                      
 available to                                                               
common shareholders         $18,413  ($2,811,598) ($2,794,340)  ($2,772,858)
Amortization of                                                             
 intangibles assets(1)       23,290       35,172       68,837       141,867 
Impairment of goodwill                                                      
 and intangible assets            -    2,900,000    2,967,847     2,900,000 
Recapitalization and                                                        
 costs                       10,818          497       16,305         7,533 
Restructuring and                                                           
 special charges             26,812            -       26,812        11,888 
Financial charges            30,198       10,314       97,819        94,940 
Gain on sale of assets         (641)           -         (641)            - 
Interest paid               (35,065)     (49,226)     (94,970)     (120,554)
Gain on investment (net                                                     
 of income taxes of $0.1                                                    
 million)                         -            -       (2,090)            - 
Impairment of investment                                                    
 in associate (net of                                                       
 income taxes of $0.2                                                       
 million)                         -            -            -        50,271 
Provision for income                                                        
 taxes                       15,538       18,678        5,688        60,030 
Income taxes paid           (12,218)     (34,605)     (55,949)      (68,922)
Adjusted earnings from                                                      
 continuing operations      $77,145      $69,232     $235,318      $304,195 
Weighted average number                                                     
 of common shares                                                           
 outstanding            512,610,477  509,752,238  512,600,405   511,591,101 
Adjusted earnings per                                                       
 common share from                                                          
 continuing operations        $0.15        $0.14        $0.46         $0.59 
Dividends on common                                                         
 shares                           -      $40,360            -      $207,345 
Dividends declared per                                                      
 common share                     -        $0.08            -         $0.40 
Payout ratio                      -           57%           -            68%
(1) Represents amortization of intangible assets attributable to common     

Investor Relations
Amanda Di Gironimo
Senior Manager, Corporate Finance and
Investor Relations
(514) 934-2680
[email protected]

Fiona Story
Senior Manager, Public Relations
(514) 934-2672
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@CloudExpo Stories
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In a world where the internet rules all, where 94% of business buyers conduct online research, and where e-commerce sales are poised to fall between $427 billion and $443 billion by the end of this year, we think it's safe to say that your website is a vital part of your business strategy. Whether you're a B2B company, a local business, or an e-commerce site, digital presence is key to maintain in your drive towards success. Digital Performance will take priority in 2018 for the following reason...
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
In his session at Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to maximize project result...