YP ANNOUNCES 3RD QUARTER RESULTS
YP Corp. (OTCBB: YPNT), a leading provider of nationwide Internet Yellow Pages
and related services reported its financial results for the three months ended
June 30, 2004. Net Revenue for the three months ended June 30, 2004 was
$16,917,361 compared to $8,013,845 for the comparable period ended June 30,
2003, an increase of approximately 111%. The increase in revenue is principally
the result of two factors: (1) an increase in the number of our Internet
Advertising Package(TM) ("IAP") advertisers and (2) an increase in our monthly
pricing. The Company had approximately 224,474 paying IAP advertisers and
320,296 activated IAP advertisers at June 30, 2004 compared to approximately
161,000 paying IAP advertisers and 235,162 activated IAP advertisers at June 30,
2003, an increase of approximately 39% and 36% respectively. The increase in
paying advertisers is due to the continued success of our marketing program. YP
Corp. utilizes direct mailings as its primary marketing program.
Operating income for the three months ended June 30, 2004 was $3,513,172
compared to $2,155,018 in the same period in fiscal 2003, an increase of
approximately 63%. Operating margins were approximately 21% compared to
approximately 27% in the same period in fiscal 2003. Income before income taxes
for the three months ended June 30, 2004 was $4,048,533 compared to $2,352,869
in the comparable period in 2003, an increase of approximately 72%. Pre-tax
margins were approximately 24% in the fiscal 2004 period compared to
approximately 29% in the fiscal 2003 period. The decrease in operating and
pre-tax margins is primarily the result of a short-term increase in dilution
resulting from our program to convert direct-invoice billed advertisers to
telephone billing through the advertisers' Local Exchange Carriers. However, we
expect the dilution to be reduced to more normal levels over the next few
quarters as this dilution runs its course through the billing system.
Net profits for the three months ended June 30, 2004 were $2,631,547, or $0.06
per share ($.05 per share on a diluted basis). compared to net profits of
$1,676,830, or $0.04 per share in the comparable period in 2003 or an increase
of approximately 57% in net income. Net margins were approximately 17% for the
three months ended June 30, 2004 versus 21% for the fiscal 2003 period.
Peter J. Bergmann, YP Corp.'s CEO commented, "We are seeing strong growth in
fiscal 2004. Despite the events of the quarter, we expect the long-term effect
on profitability to be positive as a result of our efforts."
ABOUT YP CORP.
YP Corp., a leading provider of Internet-based Yellow Pages services, offers an
Internet Advertising Package(TM) ("IAP") that includes a Mini-WebPage(TM) and
Preferred Listing through its Yellow Pages web site at www.YP.Com. The Company's
web site contains listings for approximately 18 million businesses in the United
States and 150 million individuals in the United States and Canada. As of June
30, 2004, YP Corp. had approximately 320,000 activated IAP advertisers.
YP Corp. also provides an array of other Internet services that complement its
Yellow Pages web site, including an Internet Dial-Up Package(TM) (dial-up
Internet access) and QuickSite(TM) (web site design & hosting services).
YP Corp. is a longstanding member, exhibitor and sponsor of the two major Yellow
Pages trade associations - Yellow Page Integrated Media Association (YPIMA), the
major trade association of Yellow Pages publishers throughout the world, and the
Association of Directory Publishers (ADP), which mostly represents independent
Yellow Pages publishers. YP Corp. is based in Mesa, AZ. For more information,
visit the web site at www.YP.Com.
FORWARD-LOOKING DISCLAIMER
This press release may include statements that constitute "forward-looking
statements," which are often characterized by the terms "may," "believes,"
"projects," "expects," or "anticipates," and do not reflect historical facts.
Forward-looking statements involve risks, uncertainties and other factors that
may cause actual results, performance or achievements of YP Corp. and its
subsidiary to be materially different from those expressed or implied by such
forward-looking statements. Specific forward-looking statements contained in
this press release include, but are not limited to, (i) the continued success of
the marketing program; (ii) the Company's expectation that dilution will be
reduced to more normal levels over the next few quarters; and (iii) the
Company's expectation of strong growth in fiscal 2004 and profitability to be
positive.
Factors that may affect forward-looking statements and the Company's business
generally include but are not limited to (i) challenges the Company will face as
a result of the indictment of its former CEO; (ii) the success of existing
competitors and the introduction of new competitors in the market; (iii) the
impact of existing or new regulation on the Company's marketing and solicitation
efforts; (iv) risk factors and cautionary statements made in the Company's
Quarterly Report on Form 10-QSB for the period ended June 30, 2004; and (v)
other factors that YP Corp. is currently unable to identify or quantify, but may
exist in the future.
Forward-looking statements speak only as of the date the statement was made. YP
Corp. does not undertake and specifically declines any obligation to update any
forward-looking statements.
YP CORP. CONTACT
Roger Bedier
YP Corp Investor Relations
Phone 480-325-4339
rogerb@ypcorp.com