R.H. Donnelley third-quarter operating income drops to $116.5 million

By Caroline Salls

Pittsburgh, Nov. 3 - R.H. Donnelley Corp. reported $116.5 million of operating income for the three months ended Sept. 30 on $534 million in net revenues, according to a company news release.

The figures showed a decline from the $185.9 million operating income posted for the three months ended Sept. 30, 2008 on $648 million in net revenues.

The company also reported $265 million of adjusted EBITDA for the third quarter, down 21% from the third quarter of 2008.

The net income for the third quarter was $23.9 million, down from $26.1 million of net income for the same period of 2008.

Meanwhile, the company posted $424 million of operating income on $1.702 billion of net revenues for the first nine months of 2009, compared with a $2.477 billion operating loss for the first nine months of 2008 on $1.986 billion in net revenues.

The net loss for the first nine months of this year was $452.8 million, narrowing from a $1.936 billion net loss for the first nine months of last year.

R.H. Donnelley had $606.5 million of cash and cash equivalents at Sept. 30, up from $131.2 million at Dec. 31, 2008.

"While there are preliminary signs of stabilization, the local ad sales environment remained difficult in the third quarter," chairman and chief executive officer David C. Swanson said in the release.

"Operating costs in the third quarter were down $45 million year-over-year; we are increasing our customer focus throughout the organization; and we continue to enhance our online and mobile solutions to help local businesses in our markets reach active consumers wherever they are searching.

"We expect that these efforts, in addition to implementing a more sustainable capital structure, will help us emerge from Chapter 11 as a stronger company in early 2010."

R.H. Donnelley is a Yellow Pages and online local commercial search company based in Cary, N.C. The company filed for bankruptcy on May 28 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-11833.

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