Idearc acting CFO says underlying business fundamentals sound, liquidity not a near-term issue

By Jennifer Lanning Drey

Portland, Ore., March 11 - Idearc, Inc.'s acting chief financial officer told investors that the company's underlying fundamentals and long-term prospects are unchanged, despite its current struggle against economic headwinds, during an investor presentation given Tuesday.

"The set of assets that made this business an attractive investment are still there, still sound and still solid," Samuel "Dee" Jones said while presenting at the Bear Stearns 21st Annual Media Conference in Palm Beach, Fla.

The acting CFO also made it clear that he does not believe Idearc has any near-term liquidity issues or demands on capital.

When asked by a conference participant about the company's capital allocation and possibility of eliminating its dividend, Jones said, "We have a good amount of cash available to us. We have to figure out how to deploy it in the most efficient and effective fashion."

The company had cash and cash equivalents of $48 million at Dec. 31, according to its fourth-quarter earnings release.

However, Jones added that cash is not the only factor Idearc's board uses in determining whether to issue a dividend. Assessments of a proper risk profile and ultimate capital structure are also factors, he said.

Like its competitors, Idearc is dealing with the repercussions of a weakened economy and expects the difficult conditions to last at least through the first half of 2008.

At the same time, Jones said local media, and directional media in particular, continues to be a large and growing market.

Idearc is a Dallas-based provider of yellow and white page directories and related advertising products.

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