DexYP® Announces Fourth Quarter and Full Year 2018 Financial Results

DALLAS–(BUSINESS WIRE)–DexYP®, a leading small business software provider, announced today
financial results for fourth quarter and full year 2018.

Key highlights:

  • Increased recurring Thryv revenue to over $100 million in 2018
  • Grew EBITDA to $587 million in 2018, a $21 million increase over 2017
  • Increased EBITDA margin to 32% for the full year, a 7 percentage point
    increase over 2017
  • Generated $320 million of Free Cash Flow, an $83 million improvement
    over 2017
  • Closed an $825 million five-year senior secured term loan facility to
    finance share buybacks (whether via tender offer or open market
    repurchase programs), dividends and/or acquisitions

We closed out the year with strong performance and continued to grow
our EBITDA and EBITDA margins and generate tremendous cash,” said DexYP
CEO Joe Walsh. “Our flagship product Thryv continues to lead the
industry by helping small business owners manage their appointments,
communicate with clients, and get paid.”


Fourth Quarter and Full Year 2018 Pro Forma



    Variance Variance
  2018       2017     Fav (Unfav)   %     2018       2017     Fav (Unfav)   %  
(in thousands) (in thousands)

Pro Forma Net Revenue

(a ), (b)  
Print $ 199,368 $ 251,654 $ (52,287 ) -20.8 % $ 876,890 $ 1,128,029 $ (251,139 ) -22.3 %
Thryv 28,559 23,177 5,382 23.2 % 107,252 74,420 32,832 44.1 %
Thryv Leads 3,246 3,246 NM 4,819 4,819 NM
IYP 88,879 108,711 (19,831 ) -18.2 % 389,330 449,484 (60,154 ) -13.4 %
Presence 29,972 39,790 (9,819 ) -24.7 % 137,362 217,140 (79,778 ) -36.7 %
SEM 70,555 97,891 (27,336 ) -27.9 % 315,685 429,826 (114,141 ) -26.6 %
Other Revenue   3,000     2,140     860   40.2 %   10,039     9,807     232   2.4 %
Total Pro Forma Net Revenue $ 423,579   $ 523,364   $ (99,784 ) -19.1 % $ 1,841,378   $ 2,308,706   $ (467,328 ) -20.2 %
Variable Expenses   105,730     154,289     (48,559 ) -31.5 %   528,282     689,975     (161,693 ) -23.4 %
Variable Profit $ 317,850 $ 369,075 $ (51,225 ) -13.9 % $ 1,313,096 $ 1,618,731 $ (305,635 ) -18.9 %
Variable Margin 75.0 % 70.5 % 71.3 % 70.1 %
Total Direct Expenses   113,451     190,536     (77,085 ) -40.5 %   482,805     801,703     (318,898 ) -39.8 %
Direct Profit $ 204,399 $ 178,539 $ 25,860 14.5 % $ 830,291 $ 817,027 $ 13,263 1.6 %
Total Direct Margin 48.3 % 34.1 % 45.1 % 35.4 %
Indirect Overhead   60,315     52,221     8,094   15.5 %   243,786     250,748     (6,962 ) -2.8 %
Adjusted Pro Forma EBITDA (a ), (c) $ 144,084   $ 126,318   $ 17,766   14.1 % $ 586,505   $ 566,280   $ 20,225   3.6 %
Adjusted Pro Forma EBITDA Margin % 34.0 % 24.1 % 9.9 % 31.9 % 24.5 % 7.3 %
Free Cash Flow (a ), (d), (e) $ 100,228   $ 67,295   $ 32,933   48.9 % $ 319,632   $ 236,971   $ 82,661   34.9 %

Net Debt

Term Note $ 400,000 $ 652,000 $ 252,000 38.7 %
ABL   146,577     160,012     13,435   8.4 %
Total Outstanding Debt $ 546,577 $ 812,012 $ 265,435 32.7 %
Less: Cash (34,169 ) (2,038 ) 32,131 1576.6 %
Net Debt (e) $ 512,408   $ 809,974   $ 297,566   36.7 %


(a)   All 2018 figures presented are preliminary, subject to change, and
unaudited. Material changes may result from audit procedures.
(b) Pro Forma Net Revenue for 2018 and 2017 is presented on a
consolidated pro forma basis to adjust for acquisition and fresh
start accounting.
(c) Adjusted Pro Forma EBITDA excludes interest, taxes, depreciation and
amortization, and other non-cash/non-recurring expenses, including
adjustments for acquisition and fresh start accounting and
accounting conformity adjustments, integration costs, YP acquisition
related expenses, long-term incentive compensation, and pension
(d) Free Cash Flow reflects cash generated from operating activities,
less capital expenditures and interest payments.
(e) Net debt excludes YP related financing obligations. The cash portion
of these financing obligations, which will be paid out by August
2022, is approximately $2.3 million.

Earnings Conference Call Information

DexYP will host an investor conference call at 10 a.m. CST on February
28, 2019. Individuals within the United States can access the conference
call by dialing (888) 603-6873. International participants should dial
(973) 582-2706. The passcode is: 3785579.

Basis of Presentation and Non-GAAP Financial Measures

The financial information accompanying this release provides a
reconciliation of GAAP to non-GAAP and adjusted pro forma non-GAAP
results. DexYP believes that the use of non-GAAP financial measures
provides useful information to investors to gain an overall
understanding of its current financial performance. Specifically, DexYP
believes the non-GAAP results provide useful information to management
and investors by excluding certain nonrecurring items that DexYP
believes are not indicative of its core operating results. In addition,
non-GAAP financial measures are used by management for budgeting and
forecasting as well as subsequently measuring DexYP’s performance, and
DexYP believes that non-GAAP results provide investors with financial
measures that most closely align to its internal financial measurement

About DexYP

builds and owns Thryv®,
the simple, easy-to-use software that helps small business owners with
the daily demands of running a business; and allows them to take control
and be more successful. Thryv provides modernized business functions
allowing them to manage their time, communicate with clients, and get
paid. These include building a digital customer list, communicating with
customers via email and text, updating business listings across the
internet, accepting appointments, sending notifications and reminders,
managing ratings and reviews, generating estimates and invoices,
processing payments, and issuing invoices and coupons.

delivers business services to more than 500,000 small businesses across
America that enable them to compete and win in today’s economy.

also provides consumer services through our market-leading search,
display and social products—and connects local businesses to the over 30
million monthly visitors of®,® and search portals; and local print directories The Real
Yellow Pages®. For more information about the company, visit

Forward-Looking Statements

Some statements included in this release constitute forward-looking
statements. Statements that include the words “may,” “will,” “could,”
“should,” “would,” “believe,” “anticipate,” “forecast,” “estimate,”
“expect,” “preliminary,” “intend,” “plan,” “project,” “outlook” and
similar statements of a future or forward-looking nature identify
forward-looking statements. You should not place undue reliance on these
statements, as they are not guarantees of future performance.
Forward-looking statements provide current expectations with respect to
our financial performance and future events with respect to our business
and industry in general. Forward-looking statements are based on certain
assumptions and include any statement that does not directly relate to
any historical or current fact. Accordingly, there are or will be
important factors that could cause our actual results to differ
materially from those indicated in these statements. We believe that
these factors include, but are not limited to, the risks related to the
following: the Company’s ability to maintain adequate liquidity to fund
operations; the Company’s future operating and financial performance;
limitations on our operating and strategic flexibility and the ability
to operate our business, finance our capital needs or expand business
strategies under the terms of our credit facilities; our ability to
retain existing business and obtain and retain new business; general
economic or business conditions affecting the markets we serve;
declining use of print yellow page directories by consumers; our ability
to collect trade receivables from clients to whom we extend credit;
credit risk associated with our reliance on small and medium sized
businesses as clients; our ability to attract and retain key managers;
increased competition in our markets; our ability to obtain future
financing due to changes in the lending markets or our financial
position; our ability to maintain agreements with major Internet search
and local media companies; reduced advertising spending and increased
contract cancellations by our clients, which causes reduced revenue;
and, our ability to anticipate or respond effectively to changes in
technology and consumer preferences; and our ability to successfully
integrate the YP business with the Company’s business. With respect to
the acquisition, important factors could cause actual results to differ
materially from those indicated by forward-looking statements and
projections included herein, including, but not limited to: the risk
that anticipated cost savings, growth opportunities and other financial
and operating benefits as a result of the transaction may not be
realized or may take longer to realize than expected, the risk that
benefits from the transaction may be significantly offset by costs
incurred in integrating the companies, including, coordinating
geographically separate organizations, integrating business cultures,
which could prove to be incompatible, difficulties and costs of
integrating information technology systems; and the potential difficulty
in retaining key officers and personnel. All subsequent written and oral
forward-looking statements attributable to us or persons acting on our
behalf are expressly qualified in their entirety by such cautionary

If one or more events related to these or other risks or uncertainties
materialize, or if our underlying assumptions prove to be incorrect,
actual results may differ materially from what we anticipate. All
forward-looking statements included in this press release are expressly
qualified in their entirety by the foregoing cautionary statements.
These forward-looking statements speak only as of the date hereof and,
other than as required by law, we undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.


Media Contact:
Paige Blankenship

Investor Contact:
Nicholas Haughey

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