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Thryv Holdings, Inc. (THRY)

Q3 2017 Earnings Call· Wed, Nov 15, 2017

$3.72

-3.63%

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Transcript

Operator

Operator

Good afternoon, and welcome to the DexYP's Third Quarter 2017 Conference Call. With me today are Joe Walsh, Chief Executive Officer and President; and Paul Rouse, Chief Financial Officer and Treasurer. Some statements made by the company today during this call are forward-looking statements. These statements include the company's beliefs and expectations as to the future events and trends affecting the company's business and are subject to risks and uncertainties. Actual results may vary materially from these forward-looking statements. The company advises you not to place undue reliance on these forward-looking statements and to consider them in light of the factors that could cause actual results to differ materially from those in the forward-looking statements. These factors can be found in our press release dated October 30, 2017. The company has no obligation to update any forward-looking statement. I would now like to turn the call over to Joe Walsh.

Joe Walsh

Chief Executive Officer

Thank you, Paula. This morning, Paul and I will review our financial results for the third quarter and year-to-date October 2017. I will highlight a few key statements and then turn the call over to Paul to run through detailed financials. As you know, we are in the process of integrating YP onto the Dex platform, the DexYP organization. And for the first time, we'll be sharing integrated financial results. We are continuing to manage the business tightly to deliver on our goal of being a lean, efficient company. Paul will be covering our results in more detail, but I'd like to speak to a few key highlights. We again delivered strong EBITDA margins, indicating robust operating performance. Our free cash flow is allowing us to reduce debt quickly. DexYP remains in a great position to integrate YP and future acquisitions. We spent the last 2 months training the YP sales team members on our local business automation software, Thryv. They've responded enthusiastically. Eager to provide this unique offering to local independent business owners across the former YP footprint. Clients are already seeing the benefit of moving to our software platform and the benefit of expanding the offer to more prospects. We are on plan for the integration and synergies that we targeted as part of the YP acquisition. Now I want to turn the call over to Paul to take you through the financials from this past quarter. Paul?

Paul Rouse

Chief Financial Officer

Thank you, Joe, and good morning, everyone. We will now discuss, in more detail, our consolidated third quarter 2017 financial results as released on our website on October 30. Our results are presented on a consolidated basis for DexYP, as if YP had been acquired on January 1, 2016. Breaking out separate financial results for Dex and YP would be misleading and not aligned with the way we view and are managing our business. We would like to point out that most of the financial measures presented and discussed this afternoon were presented on a non-GAAP adjusted pro forma basis. We believe these non-GAAP results provide more meaningful information to management and investors relative to the underlying financial performance of the company. In addition, these non-GAAP financial measures are used in turnover by management for budgeting, forecasting and compensation. Slides 5 and 6 in the Appendix, provide reconciliations of GAAP results to non-GAAP adjusted pro forma results for revenue, EBITDA and free cash flow. The adjustments made to our GAAP results remove the impact of fresh start accounting [indiscernible] hired upon the emergence from bankruptcy on July 29, 2016. And our acquisition of YP on June 30, 2017. In addition, nonrecurring costs associated with capital restructuring and business transformation and noncash expenses associated with pension and long-term stock-based incentive compensation were removed from our non-GAAP results. As discussed on prior earnings calls, we continue to work through the impact of an income tax accounting error related to 2010 tax year for Dex One, one of our predecessor companies. This error occurred prior to the merger of SuperMedia and Dex One and subsequent to the formation of Dex Media in 2013. These complex historical income tax calculations have caused a delay in the issuance of our 2015 and 2016 financial statements.…

Joe Walsh

Chief Executive Officer

Thank you, Paul. The numbers backup our plan to produce solid financial results. We are becoming a lean, efficient company with effective cost controls in place throughout the business. We continue to create better processes within DexYP in order to remove waste from the business. This allows us to build our future, creating local business automation software that serves an operating -- that serves as an operating system for local businesses. To be fiercely devoted to enabling local independent businesses across the country to Thryv. With that, Paula, we'll turn it back over to you to manage the questions.

Operator

Operator

[Operator Instructions] You have a question from Raymond Darrell of Theft Y&P. [Operator Instructions] At this time we have no questions.

Joe Walsh

Chief Executive Officer

Okay, we would like to thank everybody for attending the call. We appreciate it, and we look forward to updating you on our results next quarter. Goodbye.

Operator

Operator

Ladies and gentlemen, thank you for your participation in today's conference. This concludes today's call. You may now disconnect.