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SuperMedia Announces 2010 Full Year Results DALLAS–(BUSINESS WIRE)– SuperMedia (NASDAQ:SPMD) today announced its financial results for the year ended December 31, 2010. Highlights for 2010 include:

• The company reduced total debt obligations by $579 million in 2010, including the utilization of $185 million of cash in the fourth quarter to reduce total debt obligations by $264 million under an amendment to the term loan agreement allowing a below par debt repurchase;
• adjusted pro forma earnings before interest, taxes, depreciation and amortization (EBITDA) was $651 million¹; and
• continued aggressive cost management.

SuperMedia’s Chief Executive Officer, Peter McDonald, who joined the company in October 2010 said, “As we move into 2011, our focus will be on improving our revenue trends and continuing to manage expenses.” Financial Summary SuperMedia reports financial results on a generally accepted accounting principles (“GAAP”) and non-GAAP basis, referred to as “adjusted pro forma”. The adjusted pro forma basis measures are described and reconciled to the corresponding GAAP measures in the accompanying financial schedules. These results were adjusted for the impacts of fresh start accounting and certain unique costs including reorganization items, restructuring costs and certain other non-recurring costs. Reported GAAP operating revenue for Q4 2010 was $426 million. Adjusted pro forma operating revenue for Q4 2010 was $468 million, versus $576 million for Q4 2009, a decline of 18.8 percent. Reported GAAP full year operating revenue for 2010 was $1,176 million. Adjusted pro forma full year operating revenue for 2010 was $2,002 million, versus $2,512 million in 2009, a decline of 20.3 percent. Reported Q4 2010 earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP measure, was $126 million. On an adjusted pro forma basis, Q4 2010 EBITDA was $151 million with an EBITDA margin of 32.3 percent compared to Q4 2009 EBITDA of $195 million with an EBITDA margin of 33.9 percent. Reported full year 2010 EBITDA, a non-GAAP measure, was $90 million. On an adjusted pro forma basis, full year 2010 EBITDA was $651 million with an EBITDA margin of 32.5 percent compared to full year 2009 EBITDA of $856 million with an EBITDA margin of 34.1 percent. Results for 2010 include a $40 million general and administrative expense reduction related to the favorable non-recurring, non-cash resolution of state operating tax claims. Advertising sales in Q4 2010 declined 15.1 percent, compared to a decline of 20.9 percent reported for the same period in 2009. Full year 2010 advertising sales declined 17.2 percent compared to a full year 2009 decline of 18.8 percent. Free cash flow, a non-GAAP measure, for 2010 was $464 million representing cash from operating activities of $509 million, less capital expenditures (including capitalized software) of $45 million. In the second quarter, the company received a net federal income tax refund of $94 million. SuperMedia made debt principal payments of $61 million in the fourth quarter, in accordance with the mandatory cash sweep provisions of the company’s loan agreement. Cash on hand at the end of the quarter totaled $174 million, reflecting the net cash benefits of the items noted above. Also in the fourth quarter, an amendment was approved by the holders of the company’s term loan allowing the company to repurchase $264 million of debt at 70 percent of par, utilizing $185M in cash. For the year ending December 31, 2010, the company utilized cash of $500 million to reduce total debt obligations in the amount of $579 million. Webcast Information Individuals within the United States can access the earnings call by dialing 888/603-6873. International participants should dial 973/582-2706. The pass code for the call is: 37480660. In order to ensure a prompt start time, please dial into the call by 9:50am (Eastern). A replay of the teleconference will be available at 800/642-1687. International callers can access the replay by calling 706/645-9291. The replay pass code is: 37480660. The replay will be available through March 9, 2011. In addition, a live Web cast will be available on SuperMedia’s Web site in the Investor Relations section at www.supermedia.com. Basis of Presentation and Non-GAAP Measures In connection with SuperMedia’s emergence from bankruptcy on December 31, 2009, and the application of fresh start accounting, the post-emergence results of the successor company and the pre-emergence results of the predecessor company are presented separately as successor and predecessor results in the financial statements presented in accordance with GAAP. This presentation is required by GAAP as the successor company is considered to be a new entity and the results of the new entity reflect the application of fresh start accounting. For the readers’ convenience, the financial information accompanying this release provides a reconciliation of GAAP to non-GAAP results. Forward-Looking Statements Certain statements included in this annual report constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. 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. These forward-looking statements include statements that reflect the current views of our senior management with respect to our financial performance and future events with respect to our business and industry in general. Forward-looking statements address matters that involve risks and uncertainties. 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 inability to provide assurance for the long-term continued viability of our business;
• reduced advertising spending and contract cancellations by our clients, which drives reduced revenue;
• declining use of print yellow pages directories by consumers;
• competition from other yellow pages directory publishers and other traditional and new media and our ability to anticipate or respond to changes in technology and user preferences;
• changes in our operating performance;
• our post-restructuring financial condition, financing requirements and cash flow;
• 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 debt agreements;
• failure to comply with the financial covenants and other restrictive covenants in our debt agreements;
• limited access to capital markets and increased borrowing costs resulting from our leveraged capital structure and debt ratings;
• our ability to resolve any remaining bankruptcy claims;
• changes in the availability and cost of paper and other raw materials used to print our directories and our reliance on third-party providers for printing, publishing and distribution services;
• credit risk associated with our reliance on small- and medium-sized businesses as clients;
• our ability to attract and retain qualified key personnel;
• our ability to maintain good relations with our unionized employees;
• changes in labor, business, political and
  economic conditions;
• changes in governmental regulations and policies and actions of regulatory bodies; and
• the outcome of pending or future litigation and other claims.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this and other reports we file with the Securities and Exchange Commission, including the information in “Item 1A. Risk Factors” in Part I of our Annual Report on Form 10-K for the year ended December 31, 2010. 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 report are expressly qualified in their entirety by these cautionary statements. The forward-looking statements speak only as of the date made 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. About SuperMedia Inc. SuperMedia (NASDAQ:SPMD) is the advertising company for local small- to medium-sized businesses across the United States. SuperMedia specializes in results. Click-here results. Ring-the-phone results. Knock-on-the-door results. SuperMedia’s advertising products and services include: the SuperGuarantee®and SuperTradeExchange® programs, Verizon® SuperYellowPages, FairPoint® SuperYellowPages and Frontier^® SuperYellowPages, Superpages.com®, EveryCarListed.com^SM, Switchboard.com^SM, LocalSearch.com^SM, Superpages Mobile^SM and SuperpagesDirect® direct mail products. For more information, visit www.supermedia.com. ¹ includes a favorable non-recurring non-cash benefit of $40 million associated with the resolution of state operating tax claims SPMD-G  

  SuperMedia Media Relations Contact: Andrew Shane, 972-453-6473 [email protected] or Investor Relations Contact: Cliff Wilson, 972-453-6188 [email protected]   Source: SuperMedia News Provided by Acquire Media