01 May 2010
Dallas based SUPERMEDIA (SPMD) will report earnings for the first quarter of 2010 on May 11th 2010.
Considering this is the first bit of real information to investors for the company out of bankruptcy I don't think they will show a flat line for revenue losses or see a growth. Local business owners are are just now getting calls from so-called "gurus" and former "Google Employees" out the wazzoo! I was shocked when more than 3 different business owners called me to tell me that they were seeing an increased amount of calls from not just yellow pages companies, as in the past, but with "sales reps" from local search marketing companies offering advertising on Google. What is worse is that many are pitching the idea of guaranteed organic placement (impossible to guarantee) and making rediculious statements that couldn't be farther from the truth. What does this have to do with SuperMedia and earnings?
I am sure the information you will hear from Scott Klein as the same hogwash. Couldn't be further from the truth. You see, he made the choice after joining the company to be dishonest to investors, declare the company bankrupt when it had yet to miss a debt payment, and failed to stop process paying sales reps for sales that resulted in zero revenue, end the abuse and fraud with illegal immigrants in the Spanish directories such as Greater El Paso that is over 80% sales fraud, and countless other forms of mismanagement and earnings manipulations.
Here are a few SuperMedia facts:
SuperMedia / Verizon Yellow Pages
Print revenue 2,512 $ 2,973 $ 3,189 $ 3,221 $ 3,374
2004: $3.5 billion
2006: $3.0 billion
2008: $2.7 billion
2009: $ 2.5 billion
2010: "I project $ 1.99 billion"
Projected 2013: $1.6 billion*
2006: $230 million
2008: $300 million
Projected 2013: $598 million*
Industrywide classified yellow pages printed:
Down 1 billion to 13.4 billion between 2005 and 2007
* Best-case scenario
Source: SEC and court filings
My take on what is wrong with all this from the core:
I hear all of the management team from SuperMedia is in palm springs on the company award trip. rumor is that Lane Siddell went even though he only had 3 months on the job for the period measured. Jim De La Ossa is in charge in Dallas Fort Worth as nobody else is there - Sherry Taylor, Bill Brewer, all in Palm Springs. Sherry Taylor, the former GSM who was demoted to SPM (a position of zero authority and power) has no subordinates and is not eligible to go on a sales trip, but because she has done a good job of cancelling revenues on some employees and reporting sales on her number, she has insured her eligibility by kissing the right rear ends at SuperMedia. I also heard that there is a lot of internal investigation going on about reps selling ads in headings located prior to headings that have credit requirements, then superceding ad copy to match the main heading content at book close....obviously Jesse Vickers (Scott Klein's henchmen) is having a field day.
Maybe it is time for Jesse to start Investigating Scott Klein, Dave Bethea, Ivan Seidenburg, Kathy Harless, and the rest of the former Verizon Yellow Pages management team that works for SuperMedia.
I remember when Dave Lewis lost the Carolinas and Florida due to huge revenue losses (all of which were essentially out of his control and more closely related to the decline of yellow pages) and all he could do to keep his job was to (allow fraud) replace "Florida decreases" with "El Paso new revenues."
Worse than Goldman Sachs I tell ya! And you don't know the start of it!
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