Dex One Corporation Reports Full Year and Fourth Quarter 2010 Results.

Extract

---

Dex One Corporation Reports Full Year and Fourth Quarter 2010 Results.

* EBITDA of $808 Million, as Adjusted

* Free Cash Flow of $572 Million, as Adjusted

* Dex One to Host an Investor Day on February 24

CARY, N.C. -- Dex One Corporation (NYSE: DEXO) today announced its 2010 results. Alfred Mockett, CEO of Dex One, stated, "While developing the go-forward strategy to return to growth, we have delivered on a number of notable initiatives in the closing months of 2010. In the fourth quarter, we launched our new mobile app, providing consumers with detailed local business information. We have also identified a range of opportunities in our cost base and have put in place aggressive action plans to deliver more than $100 million of cost savings in 2011. We will be providing more information at today's Investor Day."

Steven M. Blondy, Executive Vice President and CFO of Dex One said, "Ad sales remained weak in 2010, as expected. Additionally, the delinquent account status of a single certified marketing representative had a 0.7% negative impact on our ad sales during the year, which was not contemplated in our guidance. Excluding this account, the receivable quality associated with all other certified marketing representatives remains strong. Despite lower than expected revenue, EBITDA and free cash flow exceeded guidance primarily due to diligent cost management and the timing of restructuring costs."

FISCAL YEAR 2010 RESULTS SUMMARY (dollars in millions)

Metric

Results

Guidance(1)

Difference Relative to Midpoint

Combined adjusted net revenue(2)

$1,782

$1,800

($18)

Combined adjusted EBITDA(2)

$808

$775 - $800

$20

Combined adjusted free cash flow(2)

$572

$500 - $525

$60

Year over year change in advertising sales (including impact of a single certified marketing representative)

(16.1%)

(15.5% to 16.0%)

(0.3%)

Year over year change in advertising sales (before impact of a single certified marketing representative)

(15.4%)

(15.5% to 16.0%)

0.4%

The adoption of fresh start accounting had a significant impact o...

See the full content of this document

---