"Our first quarter results reflect continued strong profitability and cash generation with solid progress on the revenue front and we are pleased to announce an increase in our quarterly cash dividend," said
Eckert commented on the key developments:
- Strong quarterly earnings. "Despite our continued investments in revenue initiatives, including significant expansion of our sales force, our Adjusted EBITDA2 for the quarter was 33.1% of revenue."
- Pension plan funding on track. "Consistent with our deficit-reduction plan announced in
May 2021 , in the first quarter of 2023 we made$1.5 million of voluntary incremental payments toward our Defined Benefit Pension Plan's wind-up deficit." - Healthy cash balance. "Even after certain regular, seasonal cash disbursements during the quarter, cash on hand stood at approximately
$54 million at the end of April." - Stable change in revenue. "Despite some increase in headwinds in the general economy, our change in revenue in the first quarter compared to prior year was slightly better than the same measure a year ago. And while we remain attentive to continued pressures in the global and Canadian economy, we are pleased with our company's progress on underlying metrics, including the size of our sales force, our rate of churn of customers, and our rate of gaining new accounts."
- Increase in quarterly cash dividend. "Our board has modified the dividend policy of paying a quarterly cash dividend to common shareholders by increasing the dividend from
$0.15 per share to$0.20 per share." - Quarterly dividend declared. "Our Board has declared a dividend of
$0.20 per common share, to be paid onJune 15, 2023 to shareholders of record as ofMay 25, 2023 ."
Financial Highlights
(In thousands of Canadian dollars, except percentage information and per share information) | ||
Yellow Pages Limited | For the three-month periods | |
2023 | 2022 | |
Revenues | ||
Adjusted EBITDA2 | ||
Adjusted EBITDA margin2 | 33.1 % | 37.5 % |
Income before income taxes | ||
Net income | ||
Basic income per share | ||
Diluted income per share | ||
CAPEX2 | ||
Adjusted EBITDA less CAPEX2 | ||
Adjusted EBITDA less CAPEX margin2 | 31.6 % | 35.3 % |
Cash flows from operating activities |
(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 |
First Quarter of 2023 Results
- Total revenues decreased 7.5% year-over-year and amounted to
$62.7 million for the three-month period endedMarch 31, 2023 , an improvement from the decrease of 7.8% reported for the same period last year. - Adjusted EBITDA less CAPEX1 totalled
$19.8 million and the EBITDA less CAPEX margin1 was 31.6%. - Net income decreased to
$12.4 million , or to$0.68 per diluted share.
Financial Results for the First Quarter of 2023
Total revenues for the first quarter ended
The decline rates for total revenues and digital revenues improved year-over-year. Total revenue decline of 7.5% this quarter compares to a decline of 7.8% reported for the same period last year. Digital revenue decline of 5.7% this quarter compares to a decline of 7.7% reported for the same period last year. The improvements in total and digital revenues were due to increased average spend per customer in digital, increased renewal rates as well as continued improvements in customer claim rates. Print revenue decline of 13.7% this quarter compares to a decline of 7.9% reported for the same period last year. The higher decline rate for print revenue is attributable to the decrease in average spend per customer, partially offset by improvements in customer claim rates.
For the three-month period ended
For the three-month period ended
Net income decreased to
Cash flows from operating activities increased by
As at
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
Yellow Pages Limited (TSX: Y) is a Canadian digital media and marketing company that creates opportunities for buyers and sellers to interact and transact in the local economy. Yellow Pages holds some of
Caution Concerning Forward-Looking Statements
This 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
Adjusted 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
Adjusted 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 interim condensed 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
SOURCE
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