Supermedia INC: modeFinance Credit Report

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modeFinance’s credit report.

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ASKMORETM plans 3 types of reports:

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Basic:This report includes modeFinance TM

’ sMORE Credit Ratings and MORE CreditLimit to help you in the decision making.It covers all essential information includingfinancial statements of the last three yearsand descriptive information including tradedescription and sector analysis.This report type is ideally suited fordecisions on transactions with each levelof credit risk.

modeFinanceTM HeadquarterBuilding A - AREA Science ParkPadriciano 99 - 34149 Trieste - ItalyPh.: +39 040 375 5337Fax: +39 040 375 [email protected]

askMORETM is a registered mark of modeFinanceTM

SUPERMEDIA INC.Tuesday, 19 March 2013

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D C CC CCC B BB BBB A AA AAA

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D C CC CCC B BB BBB A AA AAAnot

available

non return extremlypathological

pathological highdanger

weak sufficient adequate good very

strongextremely

strong

Company name SUPERMEDIA INC.

Identification number Not available

Country United States of America

ZIP code and city 75261 - DALLAS FORT WORTH AIRPORT

Address P.O. BOX: 619810

+1 972 453 7000

www.supermedia.com

Not available

Legal form Not available

Account Consolidated

Incorporation date 2006

NACE 2 Sector 7311 - Advertising agencies

Listed

Status Active

MORE Credit limit 4,000,000 e

31/12/2011 31/12/2010 31/12/2009

Turnover (th e) 1,269,032 879,648 1,743,717

Rating CCC CC BB

Probability of default 16.00% 42.00% 1.20%

Confidence Level 78% 78% 78%

Solvency ratios

Leverage ratio -3.07 -98.53 18.17

Total asset/Total liabilities 0.67 0.99 1.06

Liquidity ratios

Current Ratio 1.84 1.62 2.84

Quick Ratio 1.84 1.62 2.84

Profitability and economic equili-

brium ratios

Return on investement ROI (%) - - -

Return on equity ROE (%) -97.84 -653.33 4,128.50

Asset turnover 1.01 0.40 0.66

Interest paid weight - - -

Gross Profit/Operating revenue 0.75 0.64 0.77

Interest Coverage ratios

EBIT interest coverage ratio - - -

Analysis and trend of financial

strength


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modeFinance TM srlVAT number [email protected]

Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741

Sector Analysis

Company Healthy Balanced Vulnerable Risky

Solvency ratios

Leverage ratio -3.07 0.78 3.12 8.81 -2.78

Total asset/Total liabilities 0.67 2.28 1.32 1.07 0.95

Liquidity ratios

Current Ratio 1.84 2.09 1.24 1.02 0.89

Quick Ratio 1.84 2.07 1.20 1.00 0.86

Profitability and economic equilibrium ratios

Return on investement ROI (%) - 22.18 7.75 1.05 -9.41

Return on equity ROE (%) -97.84 28.43 22.29 -1.50 -107.90

Asset turnover 1.01 2.09 2.17 1.86 2.03

Interest paid weight - 0.00 0.03 0.02 -0.06

Gross Profit/Operating revenue 0.75 0.34 0.22 0.15 0.22

Interest Coverage ratios

EBIT interest coverage ratio - 507.50 24.87 1.14 -13.70

Cash Conversion Cycle (days)

Days Sales Of Inventory (DIO) 0 4 7 10 9

Days Sales Outstanding (DSO) 33 61 72 76 80

Days Payable Outstanding (DPO) 0 22 40 53 54

Cash Conversion Cycle (DIO + DSO - DPO) 33 41 38 26 36

Numer of analyzed companies - 690 1,591 722 186

(Average) Rating CCC A BB B CC

The sector has been chosen according to:

international companies in the sector NACE 2 7311 with financial data of year 2011.


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Sector Analysis - Graphs


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Balance Sheet

BALANCE SHEET (th e) 31/12/2011 31/12/2010 31/12/2009

Accounting practice Local GAAP Local GAAP Local GAAP

Exchange rate USD - EUR 0.7729 0.748 0.6942

Number of months 12 12 12

Total assets 1,262,076 2,188,648 2,661,390

Fixed assets 928,974 1,742,840 1,737,470

Intangible fixed assets 810,727 1,636,624 1,611,134

Tangible fixed assets 54,100 68,068 74,275

Other fixed assets 64,147 38,148 52,062

Current assets 333,101 445,808 923,920

Stocks 0 0 0

Debtors 113,610 157,080 221,435

Other current assets 219,491 288,728 702,485

Cash & cash equivalent 69,557 130,152 147,161

Shareholders funds -609,012 -22,440 138,831

Capital 0 0 0

Other shareholders funds -609,012 -22,440 138,831

Total liabilities 1,871,087 2,211,088 2,522,559

Non current liabilities 1,690,239 1,935,076 2,197,001

Long term debt 1,345,544 1,623,908 1,908,926

Other non-current liabilities 344,694 311,168 288,074

Current liabilities 180,849 276,012 325,559

Loans 3,091 0 0

Creditors 0 0 0

Other current liabilities 177,757 276,012 325,559

Total shareh. funds & liab. 1,262,076 2,188,648 2,661,390

NET DEBT (th e) 31/12/2011 31/12/2010 31/12/2009

Short term debts 3,091 0 0

Long term debt 1,345,544 1,623,908 1,908,926

Cash & cash equivalent 69,557 130,152 147,161

Net debt 1,279,079 1,493,756 1,761,765

31/12/2011 31/12/2010 31/12/2009

Working capital - - -

Net Current Assets 152,253 169,796 598,362

31/12/2011 31/12/2010 31/12/2009

Days Sales Of Inventory (DIO) 0 0 0

Days Sales Outstanding (DSO) 33 65 46

Days Payable Outstanding (DPO) 0 0 0

Cash Conversion Cycle (DIO + DSO - DPO) 33 65 46


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Income Statement

INCOME STATEMENT (th e) 31/12/2011 31/12/2010 31/12/2009

Accounting practice Local GAAP Local GAAP Local GAAP

Exchange rate USD - EUR 0.7729 0.748 0.6942

Number of months 12 12 12

Sales 1,269,032 879,648 1,743,717

Revenues growth (%) 44 -50 -

Other revenues +/- variation in inventories and contract in progress + Fixed assets

own construction capitalized0 0 0

Operating revenue / turnover 1,269,032 879,648 1,743,717

Total operating costs 1,711,879 944,724 1,211,995

Costs growth (%) 81 -22 -

Service costs - - -

Material costs - - -

Costs of employees - - -

EBITDA 465,260 74,052 578,925

Depreciation 908,107 139,128 47,203

EBIT -442,847 -65,076 531,723

Financial P/L -105,109 -161,568 5,459,529

Financial revenue -175,439 -207,944 -100,652

Financial expenses -70,330 -46,376 -5,560,182

Interest paid - - -

P/L before tax -547,956 -226,644 5,991,252

Extr. and other P/L - - -

Extr. and other revenue - - -

Extr. and other expenses - - -

P/L before tax + Extr. and other P/L - - -

Taxation 47,917 -80,036 259,614

P/L for period -595,873 -146,608 5,731,638

31/12/2011 31/12/2010 31/12/2009

Costs of Good Sold 315,326 312,664 403,304

Gross Profit 953,706 566,984 1,340,413

Other Operating Expenses 1,396,553 632,060 808,691

31/12/2011 31/12/2010 31/12/2009

Cash flow 312,234 -7,480 5,778,841

Added value - - -

31/12/2011 31/12/2010 31/12/2009

Number of employees 3,400 4,400 5,500


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Evolutions and trends


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Qualitative information

Full overview The company, formerly Idearc Inc., is engaged in the provision of media advertising programs in the United States.

It conducts its business from its registered head office located in DFW Airport, Texas. It was incorporated in the

year 2006. The company publishes SuperYellowPages, the print directories, which offer a range of paid advertising

options, such as listing options, in - column advertising options, display advertising options, and specialty adverti-

sing, as well as white pages directories. It also operates Superpages. com, an online local search site that provides

advertisers fixed - fee and performance - based advertising options. In addition, the company offers direct mailers

under SuperpagesDirect name; and Superpages Mobile, an information source for wireless subscribers. Further, it

operates as an official publisher of print directories.

History Not available.

Primary business line Engaged in the provision of media advertising programs in the United States.

Secondary business line Not available.

Main activity Services.

Secondary activity Not available.

Main products and services Media advertising programs.

Size estimate Not available.

Strategy, organization and policy Not available.

Strategic alliances Not available.

Membership of a network Not available.

Main brand names Not available.

Main domestic country United States of America.

Main foreign countries or regions Not available.

Main production sites Not available.

Main distribution sites Not available.

Main sales representation sites Not available.

Main customers Not available.


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Auditor/Advisor/Bank

name type address

ERNST & YOUNG LLP Auditor -

Computershare Trust Company Transfer Agent -

Board

name date of birth nationality function

Mr. Douglas D Wheat - - Independent Chairman of the Board

Mr. Thomas S Rogers - - Independent Vice Chairman of the Board

Mr. Edward J Bayone - - Independent Director

Mr. Robert Charles Blattberg 19/10/1942 - Independent Director

Mr. Charles B Carden - - Independent Director

Mr. Thomas D Gardner - - Independent Director

Mr. Peter Jude McDonald 28/10/1950 - President, Chief Executive Officer, Director

Mr. John Slater - - Independent Director

Sharehoders (the first twenty shareholders ordered by Direct %)

PAULSON & CO. INC. via its funds Rating:

Country ISO code US Operating Revenue (MIL $) 11.8

NACE Rev. 2, Core code - Total Assets (MIL $) -

Direct % - Number of Employees 75

Total % 16.62 Information date 2012/06

Address : Not available

BENNETT JAMES DONALD via its funds Rating:

Country ISO code US Operating Revenue (MIL $) -


Direct % - Number of Employees -



HAYMAN CAPITAL MANAGEMENT LP Rating:



Direct % 9.96 Number of Employees 0

Total % - Information date 2012/12



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SCHULTZE ASSET MANAGEMENT, LLC via its funds Rating:






WEST FACE CAPITAL INC via its funds Rating:

Country ISO code CA Operating Revenue (MIL $) 3.79





GRUSS & CO., INC. via its funds Rating:






D. E. SHAW INVESTMENTS, L.P. via its funds Rating:


NACE Rev. 2, Core code - Total Assets (MIL $) 24014.19




GENERAL ELECTRIC COMPANY via its funds Rating: -

Country ISO code US Operating Revenue (MIL $) 147359

NACE Rev. 2, Core code - Total Assets (MIL $) 685328




STATE OF CALIFORNIA via its funds Rating:



Direct % - Number of Employees -



FAIRFAX FINANCIAL HOLDINGS LIMITED via its funds Rating:

Country ISO code CA Operating Revenue (MIL $) 6743.5






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EATON VANCE CORP via its funds Rating: BBB






SOUNDPOST PARTNERS LP via its funds Rating:






VANGUARD GROUP, INC. THE via its funds Rating:






JP MORGAN CHASE & CO. via its funds Rating:






RENAISSANCE TECHNOLOGIES LLC via its funds Rating:






BRIDGEWAY CAPITAL MANAGEMENT INC via its funds Rating:






BANK OF AMERICA CORPORATION via its funds Rating:







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BPCE SA via its funds Rating:

Country ISO code FR Operating Revenue (MIL $) 11787.43





MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY via its funds Rating:






BLUEMOUNTAIN CAPITAL MANAGEMENT, LLC via its funds Rating:






Subsidiaries (the first twenty subsidiaries ordered by Direct %)

SUPERMEDIA LLC Rating:




Total % WO Information date 2011/12

SUPERMEDIA SALES INC. Rating:



Direct % WO Number of Employees -


SUPERMEDIA SERVICES INC. Rating:



Direct % WO Number of Employees -


SUPERMEDIA INFORMATION SERVICES LLC Rating:



Direct % MO Number of Employees 600



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ASKMORE rating guide

General vision A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of

an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk

factors.

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial

companies by using data included in financial statements.

The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy

model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the

model are obtained by applying newly developed numerical methodologies, drawing together financial theory,

data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective

algorithm that produces a classification of each company, by taking into account any attributes (such as sector and

country) characterizing a firm.

The model gives the opportunity to assign a rating to a company even without considering a complete data analysis

and allows to process quality information. It induces a better understanding of a company’s strength and weakness

thanks to sophisticated data mining tools and taking into account the analyst knowledge.

The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the

rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium

between the different aspects, better will be the final rating.

This is done studying, evaluating and aggregating the most important sections of the financial and economic

behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.


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Rating scale

Rating class Rating macro class Assessment

AAA

Healthy

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent

economic and financial flow and fund equilibrium.

AAThe company has very strong creditworthiness. It also has a good capital structure and economic and financial

equilibrium. Difference from AAA is slight.

AThe company has a high solvency. The company is however more susceptible to the adverse effects of changes in

circumstances and economic conditions than companies in higher rated categories.

BBB

Balanced

Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial

commitments could be affected by serious unfavourable events.

BBA company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing

uncertainties or exposure to adverse business, financial, or economic conditions.

B

Vulnerable

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic

conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.

CCC

A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial

fundamentals. Adverse market events and an inadequate management could affect with high probability the

company’s solvency.

CC

Risky

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the

company’s strong disequilibrium could increase.

CThe company shows considerable pathological situations. The company’s capacity to meet its financial

commitments is very low.

D The company has not any longer the capacity to meet its financial commitments.


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Fundamental Credit Rating Ratios

Analysis area Ratio Assessment

Solvency ratios

Leverage ratioThis measures the level of total liabilities of the company in comparison

with equity.

Assets to debtThis indicates company’s solvency. The company shows a level of deficit

when the value of this ratio is under one unit.

Financial ratios Fixed Assets coverage ratioThis is calculated only for holdings. It measures the capital structure i.e.

whether a company covers the fixed assets with long term capital.

Liquidity ratios

Current ratioThis measures whether a company has sufficient short-term assets to cover

its short-term liabilities.

Quick ratioThis compares current liabilities only to those assets that can be readily

turned into cash.

Profitability and economic ratios

Return on Investement(ROI)This measures the profitability of company investments without regard to

the way the investment is financed.

Return on Equity(ROE) This measures the profitability of the equity.

Asset turnover

This indicates the investments turnover with regards to sales. The level

assumed from the ratio depends on the sector in which the company

operates.

Profit margin This indicates the profitability of sales.

Interest coverage ratio Interest Paid coverage

This indicate the ability of the company to cover interest expenses through

the economic margins (Gross profit and EBIT) and through the cash flow

from operating activities.


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MORE Credit Limit, Probability of default and Confidence Level

MORE Credit Limit MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial

relationship with the analyzed company with an outlook of one year.

modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size;

• Years in Business;

• Average number of suppliers;

• Liquidity of the company and the comparison with its sector;

• The funds dedicated to be paid to suppliers;

• The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual

public data. This value should be reviewed by paying attention to the Confidence Level value and by using other

information such as other business information, news... etc; and private information such as the relationship with

client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence

Level

In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of

confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go

into default.

As the probability of default is strongly affected by the economic climate that the company is operating in,

companies in the same MORE class will not necessarily have the same probability of default.

The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =

∑Available Information∑

Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in

availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the

MORE rating is able to take into account for each company.

For companies with fully populated records a confidence level of 100% would be applied: companies where no

financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.


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Notes and disclaimer

NOTES modeFinance has based the present analysis on the company available financial statements, coming from one or

more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s

database etc.

DISCLAIMER All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any

form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of

the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot

be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will

be based on information gathered in good faith from both primary and secondary sources, whose accuracy we

are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken

based on any information that may subsequently prove to be incorrect.

Contacts

Company modeFinance

Products MORE rating

Where AREA Science Park

34149 Trieste, via Padriciano 99 - ITALY

Info [email protected]

web www.modefinance.com

Phone +39 040 3755337

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Supermedia INC: modeFinance Credit Report

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