For what it's worthI made a query to YLO regarding the current price pressure, and received the following:
We thank you for your interest in Yellow Pages Group.
There has been no change to our business fundamentals that would warrant such a decrease in unit price.
Our business fundamentals continue to be very strong, as reflected in our record results for 2007 and the first quarter of 2008. The company's financial and operational performance continued to grow in Q1-08 with solid gains. This is highlighted by growth in both EBITDA and EBITDA margins. Furthermore, our adjusted revenues increased by 7.8% and adjusted EBITDA by 11.7%, compared to the same period last year. In all, we benefit from sustained operational efficiencies, continued organic growth as well as additional revenue contribution from strategic acquisitions.
In addition, YPG posted double-digit growth in distributable cash per unit in Q1-08, which increased by 12.9%, compared to the same period last year. This outstanding performance underlines the overall confidence we have in our company, its strategic positioning and its business fundamentals.
We reiterated our guidance for 2008 when we reported Q1-2008 results (May) and we continue to strongly believe in and support our business model.
On March 28, 2008, we announced a normal course issuer bid for our units. Under this normal course issuer bid, the Fund intends to purchase up to but no more than 25 million of its outstanding units, representing approximately 5 per cent of total units outstanding at the time of the announcement. The Fund’s Trustees believe that the current trading price of our units does not reflect the strong fundamentals and future prospects for the business of Yellow Pages Income Fund. In their opinion, such purchases are in the best interest of the Fund and its unitholders and constitute an appropriate use of the Fund’s funds. This unit repurchase confirms the company’s confidence in its ability to continue its trajectory of growth and profitability.
We continue to focus on managing our operations and delivering strong financial and operational results.
Regards,
Anne-Sophie Roy
Senior Manager Investor Relations