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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

 

FORM 10-Q

 

 

 

(Mark one)

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2005

 

¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to              

 

Commission File Number: 333-121185

 

 

 

CBD Media Holdings LLC

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

   

Delaware

 

03-0395275

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

  

312 Plum Street, Suite 900

Cincinnati, OH

 

45202

(Address of Principal Executive Offices)

 

(Zip Code)

 

(513) 397-6794

(Registrant’s Telephone Number, Including Area Code)

  

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ¨    No  x  

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2).    

Yes  ¨    No  x



1





 

 

TABLE OF CONTENTS

 

     

 

  

Page

 

Part I

 

FINANCIAL INFORMATION

  

 

Item 1.

 

Financial Statements

  

3

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

  

15

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

  

19

Item 4.

 

Controls and Procedures

  

19

   

Part II

 

OTHER INFORMATION

  

 

Item 5.

 

Legal Proceedings

  

19

Item 6.

 

Exhibits

  

20

  

Signatures

  

21

  
 

  

 




2






PART I

FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

CBD MEDIA HOLDINGS LLC

 

CONDENSED CONSOLIDATED BALANCE SHEETS

MARCH 31, 2005, DECEMBER 31, 2004 AND MARCH 31, 2004

(Dollars in Thousands)

 

          

 

  

March 31,

2005

(Unaudited)

 

  

December 31,

2004

 

  

March 31,

2004

(Unaudited)

 

ASSETS

  

 

 

  

 

 

  

 

 

CURRENT ASSETS:

  

 

 

  

 

 

  

 

 

Cash and cash equivalents

  

$

25,452

  

$

14,996

  

$

15,777

Accounts receivable (net of allowance of $4,471, $4,520 and $3,274 at March 31, 2005, December 31, 2004 and March 31, 2004, respectively)

  

 

5,310

  

 

6,843

  

 

6,070

Deferred directory costs

  

 

6,146

  

 

10,672

  

 

13,273

Prepaid expenses and other current assets

  

 

226

  

 

354

  

 

457

Related party receivable

  

 

1,994

  

 

1,209

  

 

1,263

 

  

 

 

  

 

 

  

 

 

Total current assets

  

 

39,128

  

 

34,074

  

 

36,840

    

PROPERTY AND EQUIPMENT (NET)

  

 

107

  

 

118

  

 

67

    

DEBT ISSUANCE COSTS (net of accumulated amortization of $2,876, $2,373 and $1,167 at March 31, 2005, December 31, 2004 and March 31, 2004, respectively)

  

 

11,752

  

 

12,122

  

 

9,483

    

GOODWILL

  

 

28,299

  

 

28,299

  

 

28,299

    

INTANGIBLE ASSETS (NET)

  

 

228,872

  

 

235,153

  

 

254,479

 

  

 

 

  

 

 

  

 

 

TOTAL ASSETS

  

$

308,158

  

$

309,766

  

$

329,168

 

  

 

 

  

 

 

  

 

 

LIABILITIES AND MEMBERS’ CAPITAL (DEFICIT)

  

 

 

  

 

 

  

 

 

CURRENT LIABILITIES:

  

 

 

  

 

 

  

 

 

Accounts payable

  

$

679

  

 $

1,369

  

$

408

Accrued liabilities

  

 

11,540

  

 

8,069

  

 

8,648

Deferred revenue

  

 

3,235

  

 

5,952

  

 

3,086

Other current liabilities

  

 

634

  

 

634

  

 

634

Related party payable

  

 

131

  

 

114

  

 

686

 

  

 

 

  

 

 

  

 

 

Total current liabilities

  

 

16,220

  

 

16,138

  

 

13,462

 

  

 

 

  

 

 

  

 

 

LONG-TERM DEBT

  

 

403,000

  

 

403,000

  

 

297,000

 

  

 

 

  

 

 

  

 

 

OTHER LONG-TERM LIABILITIES (NET OF CURRENT PORTION)

  

 

1,425

  

 

1,584

  

 

1,959

 

  

 

 

  

 

 

  

 

 

                    Total liabilities

  

420,645

  

420,722

  

312,421

MEMBERS’ CAPITAL (DEFICIT):

  

 

 

  

 

 

  

 

 

Contributed capital

  

 

-

  

 

-

  

 

11,673

Retained earnings (deficit)

  

 

(112,487)

  

 

(110,956)

  

 

5,074

 

  

 

 

  

 

 

  

 

 

Total members’ capital (deficit)

  

 

(112,487)

  

 

(110,956)

  

 

16,747

 

  

 

 

  

 

 

  

 

 

TOTAL LIABILITIES AND MEMBERS’ CAPITAL (DEFICIT)

  

$

308,158

  

$

309,766

  

$

329,168

 

  

 

 

  

 

 

  

 

 

 

See notes to condensed consolidated financial statements.



3





 

CBD MEDIA HOLDINGS LLC

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004

(Dollars in Thousands)


 

2005

 

2004


NET REVENUE (includes related party amounts of $126 and $129 in 2005 and 2004, respectively)


$21,887

 


$21,748

    

COST OF REVENUE (includes related party amounts of $205 and $215 in 2005 and 2004, respectively)

7,978

 

7,930

AMORTIZATION AND DEPRECIATION

6,293

 

6,449

GENERAL AND ADMINISTRATIVE EXPENSES (includes related party amounts of $500 in 2005 and 2004)

1,150

 

1,131

    

OPERATING INCOME

6,466

 

6,238

OTHER EXPENSES:

   

     Interest expense

8,015

 

5,071

     Interest income

(18)

 

(23)

    

          Total other expenses

7,997

 

5,048

    

NET INCOME (LOSS)

$(1,531)

 

$1,190

    


 

 

See notes to condensed consolidated financial statements.



4





 

CBD MEDIA HOLDINGS LLC

 

CONDENSED CONSOLIDATED STATEMENTS OF MEMBERS’ CAPITAL (DEFICIT) (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004

(Dollars in Thousands)

 

             

 

  

Contributed

Capital

 

 

 

Retained

Earnings (Deficit)

 

 

 

Total

Member’s

Capital (Deficit)

 

 

BALANCE AT DECEMBER 31, 2003

  

$

11,673

 

 

$

3,884

 

 

$

15,557

 

NET INCOME

  

 

 

 

 

 

1,190

 

 

 

1,190

 

 

  

 

 

 

 

 

 

 

 

 

 

 

BALANCE AT MARCH 31, 2004

  

$

11,673

 

 

$

5,074

 

 

$

16,747

 

 

  

 

 

 

 

 

 

 

 

 

 

 

BALANCE AT DECEMBER 31, 2004

  

$

-

 

 

$

(110,956

)

 

$

(110,956

)

NET LOSS

  

 

 

 

 

 

(1,531

)

 

 

(1,531

)

 

  

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

BALANCE AT MARCH 31, 2005

  

$

-

 

 

$

(112,487

)

 

$

(112,487

)

 

  

 

 

 

 

 

 

 

 

 

 

 

 

See notes to condensed consolidated financial statements.

 



5





CBD MEDIA HOLDINGS LLC

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004

(Dollars in Thousands)

 

         

 

  

2005

 

 

 

2004

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

  

 

 

 

 

 

 

 

Net income (loss)

  

$

(1,531)

 

 

$

1,190

 

Adjustments to reconcile net income (loss) to cash flows provided by operating activities:

  

 

 

 

 

 

 

 

Depreciation and amortization

  

 

6,293

 

 

 

6,449

 

Changes in certain working capital accounts

  

 

 

 

 

 

 

 

Accounts receivable

  

 

748

 

 

 

688

 

Prepaid expenses and other assets

  

 

632

 

 

 

451

 

Deferred directory costs

  

 

4,526

 

 

 

(2,351

)

Accounts payable and other current liabilities

  

 

(673

)

 

 

(637

)

Accrued liabilities

  

 

3,471

 

 

 

2,266

 

Deferred revenue

  

 

(2,717

)

 

 

(2,386

)

Other

  

 

(159

)

 

 

(159

)

 

  

 

 

 

 

 

 

 

Net cash provided by operating activities

  

 

10,590

 

 

 

5,511

 

 

  

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

  

 

-

 

 

 

-

 

 

  

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

  

 

 

 

 

 

 

 

Debt issuance costs

  

 

(134

)