Dex Media Announces Second Quarter 2013 Earnings

  Dex Media Announces Second Quarter 2013 Earnings

Business Wire

DALLAS -- August 7, 2013

Dex Media, Inc. (NASDAQ:DXM), one of the largest national providers of social,
local and mobile marketing solutions through direct relationships with local
businesses, today announced financial results for the second quarter and year
to date ending June 30, 2013. Dex Media was formed through the merger of Dex
One Corporation (“Dex One”) and SuperMedia, Inc. (“SuperMedia”), completed on
April 30, 2013.

“As we integrate operations, we are implementing best practices to improve our
long-term relationships with clients by providing a full range of local
marketing solutions,” said Peter McDonald, president and CEO of Dex Media.
“Improving revenue performance by providing more value for existing and new
clients is a key priority.”

                                             
2013 Second Quarter and Year to Date Results
                                                
$ in millions
GAAP Reporting                      2Q'13       YTD '13
Operating Revenue                   $ 345       $ 633
Operating (Loss)                    $ (136  )   $ (117  )
Net (Loss)                          $ (68   )   $ (127  )
                                                
Non-GAAP Reporting                  2Q'13       YTD '13
Pro forma Operating Revenue¹        $ 568       $ 1,149
Adjusted Pro forma EBITDA¹          $ 224       $ 454
Adjusted Pro forma EBITDA margin¹     39.4  %     39.5  %
                                                
Advertising Sales²
Print                                 -21.8 %     -22.2 %
Digital                              6.2   %    9.5   %
Total                                -16.2 %    -16.2 %
                                                        

¹ These represent non-GAAP measures. Pro forma Operating Revenue includes Dex
One and SuperMedia operating revenue as if the merger had occurred prior to
2012 and excludes the impact of acquisition accounting, as required by U.S.
GAAP. Adjusted Pro forma EBITDA represents earnings before interest; taxes;
depreciation and amortization; gains on early extinguishment of debt; and
other nonrecurring items, including reorganization items, merger transaction
costs, merger integration costs, severance costs, and the amortization of
other post-employment benefits. Adjusted Pro forma EBITDA includes Dex One and
SuperMedia EBITDA as if the merger had occurred prior to 2012 and excludes the
impact of acquisition accounting, as required by U.S. GAAP. Adjusted Pro forma
EBITDA margin is calculated by dividing Adjusted Pro forma EBITDA by Pro forma
Operating Revenue.

² Advertising sales is an operating measure which represents the annual
contract value of print directories published and digital contracts sold. It
is important to distinguish advertising sales from revenue, which under U.S.
GAAP are recognized under the deferral and amortization method. Advertising
sales are a leading indicator of revenue recognition and are presented on a
combined basis, including both Dex One and SuperMedia, for the three and six
months ended June 30, 2013 and 2012.

Pro forma free cash flow, a non-GAAP measure, was $176 million for the six
months ended June 30. These results are net of $20 million integration costs
and $30 million of merger transaction costs. Dex Media and its predecessor
companies have repaid $209 million of debt year to date through the second
quarter. The company had a cash balance of $244 million as of June 30.

Acquisition Accounting Statement

On April 30, 2013, the merger of Dex One and SuperMedia was consummated, with
100% of the equity of SuperMedia being exchanged for equity in Dex Media. We
accounted for the business combination using the acquisition method of
accounting, with Dex One identified as the acquiring entity for accounting
purposes. As a result of the acquisition of SuperMedia, our U.S. GAAP results
for the three and six months ended June 30, 2013 include the operating results
of SuperMedia from May 1, 2013 through June 30, 2013. The historical results
of SuperMedia for April 2013 and prior periods have not been included. Prior
to the merger with Dex One, SuperMedia had deferred revenue and deferred
directory costs on its consolidated balance sheet. These amounts represented
future revenue and cost that would have been amortized by SuperMedia from May
2013 through April 2014 that will not be recognized by Dex Media. As a result
of acquisition accounting, the fair value of deferred revenue and deferred
directory costs was determined to have no future value, thus were not
recognized in the operating results of Dex Media. The exclusion of these items
from our operating results did not have any impact on the cash flows of Dex
Media. See the attached schedules and our quarterly filing on Form 10-Q for
additional information on the merger and the financial impacts on our results.

Earnings Call and Webcast Information

Dex Media will host an investor call at 10 a.m. EDT today. Individuals within
the United States can access today’s call by dialing 888-603-6873.
International participants should dial 973-582-2706. The pass code for the
call is: 19149862. In order to ensure a prompt start time, please dial into
the call by 9:50 a.m. EDT. A replay of the teleconference will be available at
800-585-8367. International callers can access the replay by calling
404-537-3406. The replay pass code is: 19149862. The replay will be available
through Aug 21, 2013. In addition, a live Web cast will be available on Dex
Media’s Web site in the Investor Relations section at www.dexmedia.com.

Basis of Presentation and Non-GAAP Financial Measures

The financial information accompanying this release provides a reconciliation
of U.S. GAAP to non-GAAP and adjusted pro forma non-GAAP results. Dex Media
believes that the use of non-GAAP financial measures provides useful
information to investors to gain an overall understanding of its current
financial performance. Specifically, Dex Media believes the non-GAAP results
provide useful information to management and investors by excluding certain
nonrecurring items that Dex Media believes are not indicative of its core
operating results. In addition, non-GAAP financial measures are used by
management for budgeting and forecasting as well as subsequently measuring Dex
Media's performance, and Dex Media believes that non-GAAP results provide
investors with financial measures that most closely align to its internal
financial measurement processes.

Forward-Looking Statements

Some statements included in this release 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 risk that anticipated cost savings, growth opportunities and other
    financial and operating benefits as a result of the merger of Dex One and
    SuperMedia may not be realized or may take longer to realize than
    expected;
  *the risk that benefits from the merger of Dex One and SuperMedia may be
    significantly offset by costs incurred in integrating SuperMedia and Dex
    One operations;
  *difficulties with the process of integrating the operations of SuperMedia
    and Dex One, including: coordinating geographically separate
    organizations; integrating business cultures, which could prove to be
    incompatible; difficulties and costs of integrating information technology
    systems; and the potential difficulty in retaining key officers and
    personnel;
  *our inability to provide assurance for the long-term continued viability
    of our business;
  *reduced advertising spending and increased contract cancellations by our
    clients, which causes reduced revenue;
  *declining use of print yellow pages directories by consumers;
  *competition from other yellow pages directory publishers and other
    traditional and new media including increased competition from existing
    and emerging digital technologies;
  *our ability to collect trade receivables from customers to whom we extend
    credit;
  *our ability to anticipate or respond to changes in technology and user
    preferences;
  *changes in our operating performance;
  *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 credit facilities;
  *failure to comply with the financial covenants and other restrictive
    covenants in our credit facilities;
  *limited access to capital markets and increased borrowing costs resulting
    from our leveraged capital structure and debt ratings;
  *changes in our credit rating;
  *changes in the availability and cost of paper and other raw materials used
    to print our directories;
  *our reliance on third-party providers for printing, publishing and
    distribution services;
  *our ability to maintain agreements with major internet search and local
    media companies;
  *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 federal,
    state and local municipalities impacting our businesses;
  *the outcome of pending or future litigation and other claims; and
  *other events beyond our control that may result in unexpected adverse
    operating results.

The foregoing factors should not be construed as exhaustive and should be read
together with the other cautionary statements included in periodic reports we
file with the Securities and Exchange Commission, including the information
and risk factors in “Item 1A. Risk Factors” in Part I of the Annual Report on
Form 10-K for the year ended December 31, 2012 filed by Dex One. 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 release are expressly qualified in their entirety by the foregoing
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 Dex Media

Dex Media (NASDAQ: DXM) provides local, social and mobile marketing solutions
to businesses in communities across the U.S. under the Dex One and SuperMedia
brands. The company's widely used consumer services include the DexKnows.com®
and Superpages.com® online and mobile search portals and applications and
local print directories. For more information, visit www.DexMedia.com.

                                                                  
                                                                      
Dex Media Inc.                                         Schedule A
Consolidated Statements of Operations
                                                                      
Reported (GAAP)
Six Months Ended June 30, 2013 Compared to Six Months Ended June 30, 2012
(dollars in millions, except per share amounts)
                                                                      
                                                                      
                                        6 Mos. Ended   6 Mos. Ended
Unaudited                              6/30/13       6/30/12       % Change
                                                                      
Operating Revenue                       $  633         $  679         (6.8   )
                                                                      
Operating Expense
Selling                                    160            145         10.3
Cost of service (exclusive of              208            183         13.7
depreciation and amortization)
General and administrative                 100            63          58.7
Depreciation and amortization             282         209        34.9
Total Operating Expenses                   750            600         25.0
                                                                      
Operating Income (Loss)                    (117    )      79          NM
Interest expense, net                     122         105        16.2
Income (Loss) Before Reorganization
Items, Gains on Early
Extinguishment of Debt and Provision       (239    )      (26    )    NM
(Benefit) for Income Taxes
                                                                      
Reorganization items                       37             -           NM
Gains on early extinguishment of debt     -           140        (100.0 )
Income (Loss) Before Provision             (276    )      114         NM
(Benefit) for Income Taxes
Provision (benefit) for income taxes      (149    )    3          NM
Net Income (Loss)                       $  (127    )  $  111        NM
                                                                      
Basic and Diluted Earnings (Loss) per   $  (10.08  )   $  10.96       NM
Common Share
Basic and diluted weighted-average        12.5        10.1   
common shares outstanding

                                                                  
                                                                      
Dex Media Inc.                                         Schedule B
Consolidated Statements of Operations
                                                                      
Reported (GAAP)
Three Months Ended June 30, 2013 Compared to Three Months Ended June 30, 2012
                                                                      
                                                                      
                                                                      
                                        3 Mos. Ended   3 Mos. Ended
Unaudited                              6/30/13       6/30/12       % Change
                                                                      
Operating Revenue                       $  345         $   335        3.0
                                                                      
Operating Expense
Selling                                    95              71         33.8
Cost of service (exclusive of              124             93         33.3
depreciation and amortization)
General and administrative                 69              32         115.6
Depreciation and amortization             193          105       83.8
Total Operating Expenses                   481             301        59.8
                                                                      
Operating Income (Loss)                    (136   )        34         NM
Interest expense, net                     79           48        64.6
Income (Loss) Before Reorganization
Items, Gains on Early
Extinguishment of Debt and Provision       (215   )        (14   )    NM
(Benefit) for Income Taxes
                                                                      
Reorganization items                       1               -          NM
Gains on early extinguishment of debt     -            71        (100.0 )
Income (Loss) Before Provision             (216   )       57         NM
(Benefit) for Income Taxes
Provision (benefit) for income taxes      (148   )      4         NM
Net Income (Loss)                       $  (68    )   $   53        NM
                                                                      
Basic and Diluted Earnings (Loss) per   $  (4.56  )    $   5.23       NM
Common Share
Basic and diluted weighted-average        14.7         10.1  
common shares outstanding

                                                                
                                                                  
Dex Media Inc.                                     Schedule C
Reconciliation of Non-GAAP Measures
                                                                  
Six Months Ended June 30, 2013 and 2012
                                                   (dollars in millions)
                                                                  
                                                                  
                                                  6 Mos. Ended   6 Mos. Ended
Unaudited                                         6/30/13       6/30/12
                                                                  
Net Income (Loss) - GAAP                           $  (127   )    $  111
Add/(subtract) non-operating items:
Provision (benefit) for income taxes                  (149   )       3
Interest expense, net                                 122            105
Reorganization items ^(3)                             37             -
Gains on early extinguishment of debt ^ (4)          -           (140   )
Operating Income (Loss)                               (117   )       79
Depreciation and amortization                        282         209    
EBITDA (non-GAAP) ^(1)                               165         288    
                                                                  
Adjustments and Pro Forma Items:
SuperMedia results-EBITDA impact ^ (5)                262            290
Merger transaction costs ^ (6)                        34             -
Merger integration costs ^ (7)                        28             -
Severance ^ (8)                                       3              6
Post-employment benefits amortization ^ (9)          (38    )     -      
Adjusted Pro Forma EBITDA (non-GAAP) ^(2)          $  454       $  584    
                                                                  
                                                                  
Operating Revenue - GAAP                              633            679
SuperMedia revenue excluded from GAAP revenue ^      516         712    
(13)
Pro Forma Operating Revenue (non-GAAP)             $  1,149     $  1,391  
                                                                  
Operating Income (Loss) margin ^ (10)                 -18.5  %       11.6   %
Impact of depreciation and amortization              44.6   %     30.8   %
EBITDA margin (non-GAAP) ^(11)                       26.1   %     42.4   %
Impact of adjustments and pro forma Items            13.4   %     -0.4   %
Adjusted Pro Forma EBITDA margin (non-GAAP)          39.5   %     42.0   %
^(12)
                                                                  
                                                  6 Mos. Ended   6 Mos. Ended
Unaudited                                         6/30/13       6/30/12
                                                                  
Free Cash Flow                                     $  127         $  152
SuperMedia operating cash flow excluded from          55             176
GAAP results ^ (14)
SuperMedia additions to fixed assets and
capitalized software excluded from GAAP results      (6     )     (6     )
^ (14)
Pro Forma Free Cash Flow                           $  176       $  322    
                                                                  
Note: Please see accompanying reconciliation
endnotes.

                                                               
                                                                  
Dex Media Inc.                                     Schedule D
Reconciliation of Non-GAAP Measures
                                                                  
Three Months Ended June 30, 2013 and 2012
                                                   (dollars in millions)
                                                                  
                                                                  
                                                  3 Mos. Ended   3 Mos. Ended
Unaudited                                         6/30/13       6/30/12
                                                                  
Net Income - GAAP                                  $  (68    )    $   53
Add/(subtract) non-operating items:
Provision (benefit) for income taxes                  (148   )        4
Interest expense, net                                 79              48
Reorganization items ^(3)                             1               -
Gains on early extinguishment of debt ^ (4)          -            (71   )
Operating Income                                      (136   )        34
Depreciation and amortization                        193          105   
EBITDA (non-GAAP) ^(1)                               57           139   
                                                                  
Adjustments and Pro Forma Items:
SuperMedia results-EBITDA impact ^ (5)                130             144
Merger transaction costs ^ (6)                        18              -
Merger integration costs ^ (7)                        28              -
Severance ^ (8)                                       -               3
Post-employment benefits amortization ^ (9)          (9     )      -     
Adjusted Pro Forma EBITDA (non-GAAP) ^(2)          $  224       $   286   
                                                                  
                                                                  
Operating Revenue - GAAP                              345             335
SuperMedia revenue excluded from GAAP revenue ^      223          349   
(13)
Pro Forma Operating Revenue (non-GAAP)             $  568       $   684   
                                                                  
Operating Income (Loss) margin ^ (10)                 -39.4  %        10.1  %
Impact of depreciation and amortization              55.9   %      31.4  %
EBITDA margin (non-GAAP) ^(11)                       16.5   %      41.5  %
Impact of adjustments and pro forma Items            22.9   %      0.3   %
Adjusted Pro Forma EBITDA margin (non-GAAP)          39.4   %      41.8  %
^(12)
                                                                  
Note: Please see accompanying reconciliation endnotes.

                                                                
                                                                    
Dex Media Inc.                                         Schedule E
Consolidated Balance Sheets
                                                                    
Reported (GAAP)
As of June 30, 2013 and December 31, 2012
                                          (dollars in millions)
                                                                    
                                                                    
Unaudited                                6/30/2013   12/31/2012  $ Change
                                                                    
Assets
Current assets:
Cash and cash equivalents                 $ 244        $ 172        $ 72
Accounts receivable, net of allowances      209          99           110
of $15 and $20
Unbilled accounts receivable                242          21           221
Deferred directory costs                    147          100          47
Deferred tax asset                          -            39           (39    )
Prepaid expenses and other                  18           35           (17    )
Accrued tax receivable                      12           2            10
Assets held for sale                       21        -         21     
Total current assets                       893       468       425    
Fixed assets and computer software, net     128          105          23
Goodwill                                    396          -            396
Intangible assets, net                      2,217        1,833        384
Pension assets                              50           -            50
Other non-current assets                   17        20        (3     )
Total Assets                              $ 3,701    $ 2,426    $ 1,275  
                                                                    
Liabilities and Shareholders' Equity
(Deficit)
Current liabilities:
Current maturities of long-term debt      $ 162        $ 2,010      $ (1,848 )
Accounts payable and accrued                189          95           94
liabilities
Accrued interest                            32           19           13
Deferred revenue                            116          121          (5     )
Current deferred tax liabilities           33        -         33     
Total current liabilities                  532       2,245     (1,713 )
Long-term debt                              2,776        -            2,776
Employee benefit obligations                169          78           91
Deferred tax liabilities                    178          54           124
Unrecognized tax benefits                   51           6            45
Other liabilities                           1            2            (1     )
                                                                    
Stockholders' equity (deficit):
Common stock, par value $.001 per
share, authorized- 300,000,000 shares:
issued and outstanding-17,248,781 at        -            -            -
June 30, 2013 and 10,176,988 at
December 31, 2012
Additional paid-in capital                  1,551        1,465        86
Retained (deficit)                          (1,507 )     (1,380 )     (127   )
Accumulated other comprehensive income     (50    )   (44    )   (6     )
(loss)
Total shareholders' equity (deficit)       (6     )   41        (47    )
Total Liabilities and Shareholders'       $ 3,701    $ 2,426    $ 1,275  
Equity (Deficit)

                                                                  
                                                                      
Dex Media Inc.                                         Schedule F
Consolidated Statements of Cash Flows
                                                                      
Reported (GAAP) and Non-GAAP Financial Reconciliation - Free Cash
Flow
Six Months Ended June 30, 2013 Compared to Six Months Ended June    
30, 2012
                                                       (dollars in millions)
                                                                      
                                       6 Mos. Ended   6 Mos. Ended
Unaudited                              6/30/13       6/30/12       $ Change
                                                                      
Cash Flows from Operating Activities
Net Income                              $   (127  )    $   111        $ (238 )
Reconciliation of net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization               282            209          73
Deferred income taxes                       (151  )        -            (151 )
Provision for bad debts                     12             21           (9   )
Amortization of debt discount               16             14           2
Other non-cash interest expense             8              9            (1   )
Stock-based compensation expense            3              3            -
Employee retirement benefits                (1    )        1            (2   )
Gains on early extinguishment of debt       -              (140  )      140
Non-cash reorganization items               32             -            32
Changes in assets and liabilities
Accounts receivable and unbilled            82             (20   )      102
accounts receivable
Deferred Directory Costs                    (20   )        20           (40  )
Other current assets                        8              1            7
Accounts payable and accrued                (5    )        (52   )      47
liabilities
Other items, net                           -           (13   )    13   
Net cash provided by operating             139         164       (25  )
activities
                                                                      
Cash Flows from Investing Activities
Additions to fixed assets and               (12   )        (12   )      -
capitalized software
Cash acquired in acquisition               154         -         154  
Net cash provided by (used in)             142         (12   )    154  
investing activities
                                                                      
Cash Flows from Financing Activities
Debt repayments                             (209  )        (324  )      115
Debt issuance costs and other              -           (3    )    3    
financing items, net
Net cash (used in) financing               (209  )      (327  )    118  
activities
Increase (decrease) in cash and cash        72             (175  )      247
equivalents
Cash and cash equivalents, beginning       172         258       (86  )
of year
Cash and cash equivalents, end of       $   244      $   83       $ 161  
period
                                                                      
                                                                      
                                       6 Mos. Ended   6 Mos. Ended
Non-GAAP Financial Reconciliation -    6/30/13       6/30/12       $ Change
Free Cash Flow
Unaudited
                                                                      
Net cash provided by operating          $   139        $   164        $ (25  )
activities
Less: Additions to fixed assets and        (12   )      (12   )    -    
capitalized software
Free Cash Flow                          $   127      $   152      $ (25  )

                                                             
                                                                    
Dex Media Inc.                                         Schedule G
                                                                    
Advertising Sales                                          
                                                                    
                                                                    
                     3 Mos. Ended   3 Mos. Ended       6 Mos.       6 Mos.
                                                       Ended        Ended
Unaudited           6/30/13       6/30/12         6/30/13     6/30/12
                                                                    
                                                                    
Print Products
Sales
% Change             (21.8   %)     (20.7   %)         (22.2  %)    (20.1  %)
year-over-year
                                                                    
Digital Sales
% Change             6.2     %      27.5    %          9.5    %     20.5   %
year-over-year
                                                            
                                                                    
Total Advertising
Sales^(1)
% Change             (16.2   %)    (14.2   %)      (16.2  %)   (14.6  %)
year-over-year


Notes:

(1) Advertising sales is an operating measure which represents the annual
contract value of print directories published and digital contracts sold. It
is important to distinguish advertising sales from revenue, which under U.S.
GAAP are recognized under the deferral and amortization method. Advertising
sales are a leading indicator of revenue recognition and are presented on a
combined basis, including both Dex One and SuperMedia, for the three and six
months ended June 30, 2013 and 2012.

     
       
Dex Media Inc.
Reconciliation of Non-GAAP Measures Endnotes
       
       EBITDA is a non-GAAP measure that represents earnings before interest,
(1)    taxes, reorganization items, gains on early extinguishment of debt,
       depreciation and amortization.
       
(2)    Adjusted Pro Forma EBITDA is a non-GAAP measure that adjusts EBITDA for
       certain unique costs and pro forma items.
       
       Adjusted Pro Forma results for 2013 reflect the combination of Dex One
       and SuperMedia as if the transaction had been consummated prior to
       January 1, 2012 and reflect certain other adjustments, including
       adjustments to exclude the effects of purchase accounting, merger
       transaction and integration costs, severance and post-employment
       benefits amortization. Pro forma adjusted results do not necessarily
       reflect what the underlying operational or financial performance of Dex
       Media would have been had the Dex One / SuperMedia transaction been
       consummated prior to January 1 2012.
       
       Reorganization items represent charges that are directly associated
       with the process of reorganizing the business under Chapter 11 of the
(3)    United States Bankruptcy Code. These costs include a non-cash charge of
       $32 million to write off the unamortized debt fair value adjustment
       associated with Dex One's senior secured credit facilities in the six
       months ended June 30, 2013.
       
(4)    Gain on early extinguishments of debt represents the gains associated
       with the purchase of a portion of the Company's debt below par value.
       
       This pro forma adjustment represents the historical EBITDA results of
(5)    SuperMedia that as a result of acquisition accounting, are not included
       in the U.S. GAAP results of Dex Media.
       
(6)    Merger transaction costs represent costs associated with completing the
       merger between Dex One and SuperMedia.
       
(7)    Merger integration costs represent costs incurred to achieve synergies
       related to the merger of Dex One and SuperMedia.
       
(8)    Severance costs are associated with headcount reductions.
       
       This adjustment includes a credit to expense related to a deferred
       pretax gain associated with SuperMedia plan amendments to other
(9)    post-employment benefits and amortization of unrecognized net losses
       related to other post-employment benefits which is included in
       SuperMedia historical results.
       
(10)   Operating Income (Loss) margin is calculated by dividing Operating
       Income (Loss) by Operating Revenue.
       
(11)   EBITDA margin is calculated by dividing EBITDA by Operating Revenue.
       
(12)   Adjusted Pro Forma EBITDA margin is calculated by dividing Adjusted Pro
       Forma EBITDA by Pro Forma Operating Revenue.
       
       This pro forma adjustment represents the historical revenue results of
(13)   SuperMedia that as a result of acquisition accounting, are not included
       in the U.S. GAAP results of Dex Media.
       
       Pro Forma Free Cash Flow is calculated by adding Dex Media free cash
(14)   flow to the historical operating cash flow and additions to fixed
       assets and capitalized software of SuperMedia that, as a result of
       acquisition accounting are not included in Dex Media free cash flow.

Contact:

Dex Media, Inc.
Media Relations Contact:
Chris Hardman, 303-784-1351
chris.hardman@dexmedia.com
or
Investor Relations Contact:
Cliff Wilson, 972-453-6188
cliff.wilson@dexmedia.com