DXM announced Q1 2014 earnings on May 6th. Revenues were $456 million down from $581 million last year (adjusting for the SuperMedia acquisition). GAAP net loss was $4.74 a share, compared to a loss of $.5.84 per share last year. Adjusted EBITDA was $194 million compared to $230 million last year. Not a bad quarter as YOY declines have been anticipated, but a bit below our expectations. DXM generated $97 million in free cash flow and paid down its debt by $74 million in the quarter. Net debt stands at $2.447 billion. Our valuation rose to $37.98 up from $34.36 last quarter. DXM is trading at about 20%% of our valuation, but due to the high debt level and small number of shares outstanding, relatively small changes in DXM’s results can cause large swings in our valuation. We will continue to HOLD.

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