Gediminas Jasionis
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Yellow Media Inc (TSE:YLO) (PINK:YLWPF) Financial Statements Cause Share Price To Move Sideways

by Gediminas Jasionis Nov 7, 2011
60ylo_chart.pngYellow Media Inc (TSE:YLO) (PINK:YLWPF) stock price is in a tight position as recent financial update provided mixed results and made it unsure if the stock should recover in the near future.

YLO stock ended the last week's volatile trading with nearly no changes to the share price and even managed to slip another 8% lower upon opening on Monday. The stock also made it among the most actively traded list on the Toronto Stock Exchange. Nearly 20 million shares changed hands last Friday, significantly above the average 7.9 million.

The increase in trading activity is significant at the time because the price recently entered into consolidation period, marking the end of a short term price rally. The drops under heavy trading might lead to a significant collapse anytime, especially when the next support is at 23 cents, or 30% lower than the current market price.

The situation remains sticky because of the various changes going on with the business.

The last spike up was a reaction to publication of Yellow Media's financial statements for the period ended September 30, 2011. The company's fillings excluded results of the recently sold Trader Corporation for the first time since the actual sale of the entity.

5yellow_media_inc_logo.jpgFor the period, YLO reported a net income of $74.6 million which was 13.7% larger compared to the same period last year. Revenues, on the other hand, slipped 9.1% lower to $323.4 million. Still, the management remained optimistic by pointing out 26.4% increase in revenues from online segment, which currently represents 27% of total revenues and keeps growing.

The company also made a significant progress in reducing their debts. The total indebtedness was cut by $700 million. As disclosed in late September, the company eliminated dividend payments and is using the extra money to pay their debts.

The last notable big change is a goodwill impairment charge of $2.9 million recorded for the period. However, it's non-cash and doesn't affect the company's current business.

Comments (2)

1. anth.luke
November 08, 2011, 08:46AM

Quotes For shareholders, most important numbers are not those that did not affect the company's current business, as mentioned in the article. Here, the essence for holders.
For the nine months of this year, YLO reports diluted (loss) earnings per share attributable to common shareholders as follows:
- only from continuing operations – loss of $5.42
- total- loss of $5.66.
For the nine months, last year, YLO reported diluted (loss) earnings per share attributable to common shareholders as follows:
- only from continuing operations – earnings of $0.39
- total- earnings of $0.42.
As you can see, the big “M” and the bigger “B” are all irrelevant.

2. Guest
November 07, 2011, 12:49PM

Quotes The Goodwill impairment is 2.9 Billion, with a very big B.

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