[TRANSWESTERN PUBLISHING LOGO]
8344 Clairemont Mesa Blvd. - San Diego, CA 92111 - 1-800-333-1111 -
FAX: (858) 495-1546
EXHIBIT 99.1
PRESS RELEASE
Contact: Kimberley Beales
(858) 467-2815
FOR IMMEDIATE RELEASE
May 12, 2003
TRANSWESTERN PUBLISHING
ANNOUNCES FIRST QUARTER EARNINGS
SAN DIEGO - TransWestern Publishing Company LLC, a wholly-owned subsidiary of
TransWestern Holdings L.P., announced first quarter revenues of $63.0 million, a
decrease of $6.0 million over the first quarter of 2002. During the first
quarter earnings before interest, taxes, depreciation and amortization (EBITDA)
was $14.8 million, a decrease of $5.1 million or 25.4 percent as compared to the
same period in 2002. Net income for the quarter decreased $6.2 million, from
income of $1.3 million in the first quarter of 2002 to a loss of $4.9 million in
the same period in 2003. (See the financial tables accompanying this release for
a reconciliation of EBITDA to net income and for a further discussion of the use
of EBITDA).
Decreased revenue for the quarter was due to 22 directories that moved out of
the first quarter of 2003 that contributed $24.3 million in revenue in 2002.
These directories did not meet specific sales objectives in order to publish
them in the first quarter. This was partially offset by the publication of five
new directories which contributed $5.2 million in revenue, $2.1 million or 4.8
percent revenue growth for the same 36 directories that published in both
periods, and 15 directories which moved into the period and added $11.0 million.
Income from operations was $4.3 million in the first quarter of 2003 compared to
$9.8 million in the first quarter of 2002 as a result of decreased revenues
primarily related to directories moving out of the 2003 period. Interest expense
decreased by $0.1 million, or 1.7 percent, in the first quarter of 2003 as
compared to the first quarter of 2002 due to slightly lower interest rates.
The Company completed one acquisition in the first quarter of 2003 adding three
directories to its portfolio. The full earnings impact of this acquisition will
occur when the acquired directories are published.
Bookings, which are the daily advertising orders received for the entire
portfolio of books, grew from $62.1 million in the first quarter of 2002 to
$67.4 million in the first quarter of 2003, an increase of 8.6 percent,
reflecting 7.0 percent growth in the same markets and bookings from newly
acquired directories.
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TRANSWESTERN PUBLISHING
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TransWestern Publishing's President and Chief Executive Officer Rick Puente
commented on the results, "TransWestern Publishing is extending many of its
sales campaigns to ensure our advertisers are properly represented. These
extensions will strengthen our market position as well as help increase revenue
for these directories which will be published later in the year.
TransWestern Publishing will host a conference call to discuss the first quarter
results on May 13, 2003 at 4:00 p.m. [EDT]. The call can be accessed by dialing
(800) 852-5279. The call will be recorded with replay accessible from May 13,
2003 through May 20, 2003 by dialing (888) 211-2648, passcode 3540602. This
press release and other financial and statistical information to be discussed on
the conference call is available at www.worldpages.com under heading about
us/newsroom.
TransWestern Publishing is a California-based independent telephone directory
publisher with 333 community-oriented telephone directories in 25 states.
This news release contains forward-looking statements about the Company's future
business prospects. These statements are subject to risks and uncertainties that
could cause actual results to differ materially from those set forth or implied
by such forward looking statements. Factors that may cause future results to
differ materially from the Company's current expectations include, among others:
general economic conditions, the Company's high level of indebtedness, account
executive retention rates and risks relating to the acquisition and start-up of
new directories. More information about these and other risks and uncertainties
faced by the Company is contained in the Company's most recent registration
statement, which is on file with the Securities and Exchange Commission.
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TRANSWESTERN PUBLISHING COMPANY LLC
CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
AS OF MARCH 31,
2003 2002
---- ----
(Unaudited)
ASSETS
Total current assets $ 129,637 $ 161,082
Property, equipment and leasehold improvements, net 5,280 6,360
Acquired intangibles, net 227,204 244,400
Other assets, primarily debt issuance costs, net 10,402 12,604
Deferred tax asset 7,795 0
--------- ---------
Total assets $ 380,318 $ 424,446
========= =========
LIABILITIES AND MEMBER DEFICIT
Total current liabilities $ 80,872 $ 78,793
Long term debt:
Senior Credit Facility 219,228 226,132
Revolving Loan 4,500 0
9 5/8% Series F Senior Subordinated Notes 215,610 215,743
Acquisition debt 200 300
--------- ---------
Total Long term debt: 439,538 442,175
Member deficit (140,092) (96,522)
--------- ---------
TOTAL LIABILITIES AND MEMBER DEFICIT $ 380,318 $ 424,446
========= =========
WORKING CAPITAL $ 48,765 $ 82,289
TRADE RECEIVABLES, NET $ 93,525 $ 95,602
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TRANSWESTERN PUBLISHING COMPANY LLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS)
THREE MONTHS ENDED
MARCH 31,
2003 2002
---- ----
(Unaudited)
Net revenues $ 63,048 $ 68,970
Cost of revenues 10,701 13,214
-------- --------
Gross profit 52,347 55,756
Operating expenses:
Sales and marketing 31,768 30,140
General and administrative 16,253 15,820
-------- --------
Total operating expenses 48,021 45,960
-------- --------
Income from operations 4,326 9,796
Other income (loss), net 212 283
Interest expense (8,431) (8,577)
-------- --------
Income (loss) before taxes (3,893) 1,502
Tax provision (1,056) (241)
-------- --------
NET INCOME (LOSS) $ (4,949) $ 1,261
======== ========
NET INCOME (LOSS) PER MEMBER UNIT $ (4,949) $ 1,261
======== ========
EBITDA DATA:
Net income (loss) $ (4,949) $ 1,261
Interest expense 8,431 8,577
Depreciation and amortization 10,275 9,786
Tax provision 1,056 241
-------- --------
EBITDA $ 14,813 $ 19,865
======== ========
EBITDA is not a measure of performance under accounting principles generally
accepted in the United States (GAAP). EBITDA should not be considered in
isolation or as a substitute for net income, cash flows from operating
activities and other income or cash flow statement data presented in accordance
with GAAP, or as a measure of profitability or liquidity. However, management
has included EBITDA because it may be used by certain investors to analyze and
compare companies on the basis of operating performance, leverage and liquidity
and to determine a company's ability to service debt. The Company's definition
of EBITDA may not be comparable to that of other companies.
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