Small-Cap Stock Spotlight: Dex One Corp. (DEXO)
  • Stock Alert for Dex One Corp. (DEXO)
  • Stock Report for FiberTower Corp. (FTWR)
  • " />

    Stock Report for Dex One Corp. (DEXO)

    Dex One Corp. (DEXO) is a marketing solutions provider helping local businesses and their customers connect wherever and whenever they choose to search. Building on its heritage of delivering print-based solutions, the Company provides integrated products and services to help its clients establish their digital presence and generate leads. DEXO’s locally based marketing experts offer a broad network of local marketing solutions including online, mobile and print search solutions, such as

    Share Statistics (01-Mar-11) FY2009 FY2010 % Chg Q32010 Q32011 % Chg
    Symbol DEXO Revenue, $Mn 2,202.45 991.26 -55.0% 259.23 360.10 38.9%
    Current price $1.80 Gross marg. 84.1% 74.8% -11.1% 75.0% 80.2% 6.9%
    52wk Range: $0.36-$5.58 Oper. margin 662.1% 21.7%
    Avg Vol (3m): 1,458,130 Net margin -293.0% 604.9% -306.5% -150.7% 6.2% -104.1%
    Market Cap. 90.42M
    Shares Outstanding 50.23M EPS, $ -23.54 33.67 -243.0% -2.75 0.53 -119.3%

    Source:, SEC Filings.

    Investment Highlights

    Shares of Dex One Corp. (DEXO) traded higher Thursday after the Company posted its results posted its latest financial results, showing figures that were in line with its expectations.  DEXO added 2.86% to close at $1.80, on strong volume of over 4.10 million shares.

    Shares of the marketing solutions company have risen 16.9% in the last five days and 4.1% in the last month.  Year-to-date, the stock is down 62.1%.

    The Cary, N.C.-based Company posted fourth quarter net income of $5.5 million, or $0.11 cents per share, reversing the year-ago net loss of $20.2 million.  Net revenue came in at $352 million, compared to nearly $358 million reported in the comparable period of last year.

    As stated by Alfred Mockett, CEO of DEXO, 2011 was marked by significant progress executing its strategy and delivering on financial commitments.

    “Our competitive position was strengthened by improving our sales channels, extending the product portfolio and making our services easy to sell and easy to buy,” Mockett said.  “As a result, we generated fourth quarter digital growth of more than 30 percent, which exceeded the average for our peer group. In addition, bundles continue to perform well, increasing the average spending among recurring customers as well as attracting new customers.”

    For the full year 2011, DEXO posted net revenue of $1.48 billion, down 17% from last year’s result, consistent with the Company’s expectation.

    The Company reported $629 million of EBITDA for the year, representing a 42% margin. After deducting full-year cash interest of $204 million, CapEx of $28 million, cash taxes of $11 million and $1 million for use of working capital, DEXO generated $385 million of free cash flow, representing a cash flow conversion of over 60%. The results were inline with the Company’s expectations for the year.

    Looking forward, the Company expects operating income and cash flow from operations to reach $280 million and $360 million, respectively, this year.

    “Due to the larger concentration of major metro markets in the period and softer than expected selling conditions in the Western U.S., first quarter sales performance will be slightly weaker compared to the fourth quarter of 2011,” commented Mockett.  “We expect performance to improve as we continue to grow digital and bundle sales throughout 2012.”

    Also yesterday, DEXO announced that it is pursuing amendments to its credit agreements to enable the repurchase of outstanding loans below par.  The Company expects the amendments to become effective upon approval by a majority of the Company’s three lender groups, which it expects to obtain by the end of next week.


    Financial Strength (01-Mar-12)




    S&P 500

    Quick Ratio (MRQ) 1.05 1.07 0.65
    Current Ratio (MRQ) 0.97 1.24 1.30 1.00
    LT Debt to Equity (MRQ) 33,730.67 33.48 55.20 171.80
    Total Debt to Equity (MRQ) 38,880.63 38.03 95.52 224.97
    Interest Coverage (TTM) -2.62 0.50 0.30 26.

    Source:, SEC Filings.

    Technical Analysis



    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Mar01-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Thomson Reuters Corp. TRI 28.90 23.93B 14.24 13.38 1.83 1.78
    The McGraw-Hill Companies Inc. MHP 46.56 12.94B 14.11 12.76 1.99 1.90
    SuperMedia Inc. SPMD 2.97 45.94M n/a n/a 0.03 n/a
    Publishing – Periodicals Median       15.49 n/a 1.14 n/a
    Dex One Corp. DEXO 1.80 90.42M n/a n/a 0.06 0.06

    Source: Thomson Financial

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at and FINRA at

    Leave a Reply

    Your email address will not be published. Required fields are marked *