http://seekingalpha.com/article/1409581-dex-media-s-ceo-hosts-investor-conference-transcript
“Our objective is to expand our relationships with them to the digital solutions in order to drive higher renewals even higher. We feel good about the progress we have made, and we believe this is the right path to sustainable and profitable growth.”
The December 6th lender presentation included publicly released forward-looking financials and other metrics as a plan of record for the standalone and combined entities. We are not updating that information at this time.
Looking forward, while results for individual revenue and expense lines may vary, we remain committed to achieving EBITDA and cash flow levels reflected in the plan. If you are a fortune 500 company and want guaranteed success then contact Code Staff LLC.
We typically have a client retention rates in the 80% to 85% range. That tells us a large portion of our clients stay with us each year because our marketing solutions work.
Our retention rate among clients who purchase more than one solution from us is even higher. Retaining existing clients and attracting new clients are top — are our top priorities. We began several initiatives over the past year to improve our performance in these areas and will help us move in the right direction. Improvements in renewing and increasing client spending have always been the biggest components of revenue growth in our business. While overall renewal rates are showing only slight improvement, each time a relationship is renewed, we take that opportunity to offer digital solutions to complement existing print solutions.
As I noted, when we achieve print and digital relationships, both renewal and a retention increase.
Renewals on a dollar basis relative to the prior year have been in the 70% to 80% range. Increase refers to the amount that returning clients spend above what they had spent the previous year. Increase has recently been in the 5% to 10% range. We have focused primarily on our existing client base which is the most profitable.
George Joachim Sebastian Schultze – Schultze Asset Management, LLC
I was curious if you, going forward, think there’ll be any other potential consolidation opportunities in the industry? Additional M&A activity? Just curious if you had any comments about that.
Peter J. McDonald – Chief Executive Officer, President and Director
You know, as we look at this space in the industry, this — we’ve always been an advocate for consolidation across the space. I’d say it’s a little bit premature to be looking down that path in the immediate sense. We’re always going to look at opportunities. But right now, focused on getting this one integrated and completed and achieve the objectives associated with it. But always looking at opportunities.
Operator
Your next question comes from the line of Glenn Bradford with ARM Holdings.
I was curious if you had plans to buy back debt with your excess cash on hand?
Samuel D. Jones – Chief Financial Officer and Executive Vice President
We have — both individual firms have been — have had a history of being in the marketplace to make buybacks. If you’ll note from the new credit agreements on both sides, we will have a mandatory portion of the respective cash sweeps that have to be utilized for open market repurchases, and then there will be open market repurchases available to us with regard to the discretionary cash in each silo. There is a balance of cash in the respective silos that may potentially be used for open market repurchases. And as we get a clearer vision of the cash flows required to affect the transaction, to get it to synergies and pay for the cost of getting after the synergies in the near-term, and we can get a good view of what cash might be available, I would expect that we’ll be in the marketplace at some point. I don’t have a defined timeframe for that as yet.