Yellow Pages Limited Reports Second Quarter 2024 Financial and Operating Results and Declares a Cash Dividend (1)
"We are pleased with our second quarter results, which reflect our continuing progress toward revenue stability, good profitability and a healthy cash balance, all despite continued headwinds in the global economy and, particularly, the Canadian small business sector," said
Eckert commented on the key developments:
- Continued climb toward revenue stability. "Although we continue to deal with the challenges of the current Canadian economic conditions, for the second consecutive quarter, we report a favorable 'bending of the revenue curve' in Q2, as our rate of change in revenue was better than the change reported for the previous quarter."
- Progress on revenue initiatives. "We are pleased with our progress on metrics underlying our revenue generation, including the size of our sales force and our rate of gaining new accounts, while maintaining a solid rate of customer churn. We are particularly pleased with our rate of gaining new accounts, which was 17% higher than last quarter. We believe these fundamentals bode well for our medium- and long-term future."
- Solid quarterly earnings. "Our Adjusted EBITDA2 for the quarter was 26.5% of revenue, even with our continued investments in revenue initiatives, including the steady continued expansion of our sales force."
- Healthy cash balance. "Our steady cash generation has grown cash on hand to approximately $34 million at the end of July."
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Pension plan funding on track. "Consistent with our deficit-reduction plan announced in
May 2021 , in the second quarter of 2024 we made$1.5 million of voluntary incremental payments toward our Defined Benefit Pension Plan's wind-up deficit." -
Quarterly dividend declared. "Our Board has declared a dividend of
$0.25 per common share, to be paid onSeptember 16, 2024 to shareholders of record as ofAugust 26, 2024 ."
Financial Highlights
(In thousands of Canadian dollars, except percentage information and per share information)
Y e l l ow Pages Limited |
For the three-month periods |
For the six-month periods |
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2024 |
2023 |
2024 |
2023 |
Revenues |
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Adjusted EBITDA2 |
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Adjusted EBITDA margin2 |
26.5 % |
35.0 % |
27.1 % |
34.0 % |
Income before income taxes |
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Net income |
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Basic income per share |
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Diluted income per share |
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CAPEX2 |
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Adjusted EBITDA less CAPEX2 |
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Adjusted EBITDA less CAPEX margin2 |
25.2 % |
32.8 % |
25.6 % |
32.2 % |
Cash flows from operating activities |
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(1)
The dividend will be designated as an eligible dividend pursuant to subsection 89(14) of the Income Tax Act ( |
(2)
Adjusted EBITDA is equal to Income from operations before depreciation and amortization and restructuring and other charges (defined herein as Adjusted EBITDA), as shown in |
Second Quarter of 2024 Results
- Total Revenues decreased 11.0% year-over-year and amounted to
$55.8 million for the three-month period endedJune 30, 2024 , an improvement from the decrease of 12.3% reported last quarter. - Adjusted EBITDA less CAPEX1 totalled
$14.1 million and the EBITDA less CAPEX margin1 was 25.2%. - Net income amounted to
$7.6 million , or to$0.55 diluted income per share.
F inancial Results for the Second Quarter of 2024
Total revenues for the second quarter ended
Total digital revenues decreased 10.2% year-over-year and amounted to
Total print revenues decreased 13.6% year-over-year and amounted to
The decline rate of revenues increased year-over-year. The higher decline rate is attributable, in part, to the headwinds in the global economy, whereby, customer renewal rates decreased but remained strong while average spend per customer slowed as customers look to optimize their spend. These factors were partially offset by an increase in the number of new accounts and increases in pricing.
Adjusted EBITDA1 decreased to
Adjusted EBITDA less CAPEX decreased by
Net income for the three-month period ended
Cash flows from operating activities decreased by
(1)
Adjusted EBITDA is equal to Income from operations before depreciation and amortization and restructuring and other charges (defined herein as Adjusted EBITDA), as shown in |
Conference Call & Webcast
Yellow Pages Limited will hold an analyst and media call and simultaneous webcast at 8:30 a.m. (Eastern Time) on
The call will be simultaneously webcast on the Company's website at:
https://corporate.yp.ca/en/investors/financial-reports .
The conference call will be archived in the Investors section of the site at:
https://corporate.yp.ca/en/investors/financial-events-presentations .
About Yellow Pages Limited
Caution Concerning Forward-Looking Statements
T
his press release contains forward-looking statements about the objectives, strategies, financial conditions
and results of operations and businesses of YP (including, without limitation, payment of a cash dividend per share per quarter to its common shareholders).
These statements are forward-looking as they are based on our current expectations, as at
Non-GAAP Financial Measures
A djusted EBITDA and Adjusted EBITDA margin
In order to provide a better understanding of the results, the Company uses the terms Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA is equal to Income from operations before depreciation and amortization and restructuring and other charges (defined herein as Adjusted EBITDA), as shown in
A djusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin
The Company also uses Adjusted EBITDA less CAPEX, which is defined as Adjusted EBITDA, as defined above, less CAPEX which we define as additions to intangible assets and additions to property and equipment as reported in the Investing Activities section of the Company's consolidated statements of cash flows. Adjusted EBITDA less CAPEX margin is defined as the percentage of Adjusted EBITDA less CAPEX to revenues. Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin are non-GAAP financial measures and do not have any standardized meaning under IFRS. Therefore, are unlikely to be comparable to similar measures presented by other publicly traded companies. We use Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin to evaluate the performance of our business as it reflects cash generated from business activities. We believe that certain investors and analysts use Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin to evaluate the performance of businesses in our industry.
The most comparable IFRS financial measure to Adjusted EBITDA less CAPEX is Income from operations before depreciation and amortization and restructuring and other charges (defined above as Adjusted EBITDA) as shown in
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