Friday, May 9, 2008

yellow pages Q1

Yellow Pages Income Fund (YLO.UN), a publisher of print directories, various online references like Canada411, and owner of Trader Media which operates Auto Trader, announced their first quarter earnings yesterday. Despite the recent mass dumping of the stock, and scathing forecasts from some analysts, YLO's numbers don't seem to point to a weak company operating in a declining industry. Here are some of the highlights:
  • Adjusted Directory Revenue (not including acquisitions) increased 4.2%
  • Directories margin reached a new high at 60.2%
  • Online Revenue now makes up 13% of Total Revenue, as it grew 48%
  • Total Earnings up 5%, Total Revenue up 8%
  • Adjusted EBITDA +11.7%, Adj. Revenue +7.8% (excludes acquisition impacts)

Since the first quarter of 2007 the units are actually down a whopping 25%. The units are currently yielding 10.5%, and the company is distributing only about 80% of their cash available for distributions. Yellow Pages has stated that they plan to continue distributions at the current level through the income trust tax changes that will occur in 2011. For both sides of the trade on Yellow Pages see Middle Class Millionaire and I post on both angles. The company actually bought back 2.8 Million units in April of 2008 as it deems them to be undervalued.


Dividends4Life said...

That sounds like an interesting value play. Do you think the dividend is safe?

Best Wishes,

MG (moneygardener) said...

I think the distribution is very safe.

Middle Class Millionaire said...

Good results for this environment. A real positive to see online revenues growing.Once they get to the 60% range I'll give them another look.

P.S - I'm still not a buying though.


elie said...

MG nice blog.

I'm a dividend investor too, lately I've been picking up income funds on margin,
logic bieng the intrest on my margin is currently 6% which is lower than the yield of the income funds.

something like KEG.UN, they have 11% yield. I get 11-6 = 5% returns from investing the banks money :D

it also fits well because any dividends that come in from my portfolio automatically pay off the margin, so all my dividends earn 6% from the first day they arrive to my account.

instead of waiting around for enough money to accululate or my to add more funds to start a new position.

brian.roth said...

Yellow Pages

Why the drop of close to 6% in the last two days, any news that I don't know about. Nobody seems to like this stock. I wonder if there was any institutional selling.


MG (moneygardener) said...

Brian, I have not heard any news.

brian.roth said...

Thanks money, I added to my portfolio at 10.30$.
11% yield why not.


MG (moneygardener) said...

that's likely a good buy Brian. It amazes me how this stock can sell off day after day even after great earnings reports.

Potato said...

I don't understand this stock, and I just couldn't keep my money away from it. Bought more today.

MG (moneygardener) said...

potato, I agree. I am amazed to see the declines day after day in YLO. Can't get my head fully around it given all the information..

Anonymous said...


Once again after crash Nifty has started going up. Now we suggest all rises should be used as an opportunity to exit old long positions.
This bull run will continue for few more days. Overall market is in bearish mood as in medium term its just a small rally due to short covering
and result season.

Happy Trading,


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