Yellow Pages Ltd T.Y

Q4

[vr6loco]

Yellow Pages Limited will hold an analyst and media call and simultaneous webcast at 8:30 a.m. (Eastern Time) on February 15, 2023 to discuss fourth quarter 2022 results. The call may be accessed by dialing 416-695-6725 within the Toronto area, or 1-866-696-5910 outside of Toronto, both with the passcode 2713953#. Please be prepared to join the conference at least 5 minutes prior to the conference start time.

[HermannHaller]

Revenues were good, but margins were a bit lower than I expected. In part this was due to mgmt compensation tied to the share price. Mgmt seemed confident on call that the revenue trends would continue to improve, even with a soft economy. Most importantly, the company continues to generate gobs of cash. The cash on hand is back to $50 million at January 31. That's $2.67 a share in cash

[vr6loco]

More rinse and repeat with a lower revenue decline, per usual.  More buybacks? Looking more like it with "gobs of cash". A dividend increase would be nice. Would like to know about that gentleman asking about the warrants and the legality of them expiring worthless when the Corporation was doing so well.  We could argue,  a very affordable dividend increase could have

[HermannHaller]

The stock would have had to be over $28, almost a double from here, for the warrants to have any value. 

[vr6loco]

With ~15% payout ratio, they could have easily doubled the dividend or more, collecting 84 million in the process. Obviously, that wasn't the plan. Slow and steady march toward revenue positve seems to be the theme, with buybacks being even more stock appreciating in the end. Wait a year, we'll see.       

[HermannHaller]

I am a little disappointed that they didn't raise the dividend, when they could easily do so. I think the three big shareholders want to get out of their positions. So they probably told mgmt to hold onto the cash until they can do another massive buyback. They have $50 million in cash now, and generate $20 million a quarter, so you could see another big buy happening within a year.