Thursday, March 12, 2009

RH Donnelley Executives Whistling In Grave Yard

RH Donnelley (OTC:RHD) announced poor results. But according to David C. Swanson, chairman and CEO . “During 2008, we took significant initiatives to address the challenging selling environment and advanced our strategic priorities”.

The EVP & CFO Steven Blondy then went on to say "Our goal is to better position R.H. Donnelley for the future by establishing a more sustainable capital structure," Essentially they are in pre-liquidation mode and trying to find solutions. He then went on to say

“We have significant debt maturities commencing in 2010 that we are working to address. Though we intended to refinance this debt prior to maturity, it may no longer be possible to do so given the current state of the capital markets. In the meantime, the company continues to generate robust EBITDA and has significant liquidity to meet all our financial and business obligations."

All this at the bottom of the business cycle. If the board and senior executive had truly been on the ball they would have been ahead of the curve on this one. Its buy low and sell high that will create wealth. They are now selling low.