Good morning, and welcome to Dex Media's Second Quarter 2017 Conference Call. With me today are Joe Walsh, Chief Executive Officer and President; and Paul Rouse, Chief Financial Officer and Treasurer. Some statements made by the company today during this call are forward-looking statements. These statements include the company's beliefs and expectations as to the future events and trends affecting the company's business and are subject to risk and uncertainties. Actual results may vary materially from these forward-looking statements. The company advises you not to place undue reliance on these forward-looking statements and to consider them in light of the factors that could cause actual results to differ materially from those in the forward-looking statements. These factors can be found in our press release dated July 31, 2017. The company has no obligation to update any forward-looking statements. I would now like to turn the call over to Joe Walsh.

Thank you, Lori. This morning, Paul and I will review our financial results from second quarter and year-to-date June 2017. I will highlight some key statements and then turn the call over to Paul to run through detailed financials. As you know, we just completed our acquisition of YP and are now DexYP. The first thing -- first though, it is important to share the results for the standalone Dex Media. We are tightening up our business. We're becoming lean and an efficient company. We have simplified our products, our processes and merged systems. We've come a long way, but we still have a ways to go. You will see our EBITDA results for the first half of the year that we're making substantial progress. We've variable-ized cost of the business by streamlining and we're wringing efficiencies out of the business. We believe Dex is prepared now and an ideal platform on which to place the YP clients. As we bring YP clients onto the streamlined Dex platform, there will be many benefits, both in cost savings and in revenue opportunity. The YP sales organization is anxious to be able to offer our local business automation software, Thryv. This enables them to be much more productive, offering unique solutions for real problems faced by independent business owners and reduces their reliance on commoditized, low-margin digital advertising products. By adding the YP sales coverage and the large client base that YP has, we will feed the growth of Thryv. We expect the YP sales organization to contribute to Thryv's sales growth by early 2018. Overall, we're delighted thus far with the YP acquisition. We have picked up some talented members, adding some important skills and capabilities to the company. The YP.com audience is a welcome addition. We're on plan for the timeline of our integration and synergies that we targeted and associated cost to achieve. Now I want to turn the call over to Paul to take you through the financials from this past quarter. Paul?

Thank you, Joe, and good morning, everyone. As Joe mentioned, on June 30, 2017, the company acquired all the ownership interest in the legal entities related to the operations of YP Holdings LLC and Print Media Holdings LLC, collectively known as YP, for $600 million in cash consideration and 3% of the company's common stock, which equates to 3,248,487 shares. The newly formed company will do business as DexYP and will be led by the company's current Board of Directors and executive management team. To finance the acquisition, the company amended its Dex Media term note agreement to borrow an additional $550 million. In addition, the company amended its revolving line of credit, increasing the facility from $200 million to $350 million. We used $70.7 million of the additional facility to complete the transaction. Today, I will speak to the Dex Media business on a stand-alone basis for the majority of my remarks. We have presented DexYP combined on a pro forma basis for informational purposes only. Beginning in the third quarter, we will discuss the combined entity as we are working to integrate all operations and run the company as a single unit. For Dex Media, non-GAAP adjusted pro forma EBITDA was $79.6 million in the second quarter. Our EBITDA margin for the second quarter was 31.3%, reflecting our continued focus on creating an operationally efficient company. This was the fifth consecutive quarter of EBITDA margins greater than 30%. I would like to point out that most of the financial measures presented and discussed this morning are non-GAAP adjusted pro forma results. We believe these non-GAAP metrics provide more useful and meaningful information to management and investors relative to the underlying financial performance of the company. In addition, these non-GAAP financial measures are used internally by management for building…

Thanks, Paul. The numbers back up our strategic plan to produce effective financial results. We are doing a better job for our customers through service, fulfillment and the results that we deliver. We have better processes and an ownership mindset in our employee base, where they're taking ownership of what's happening out there we and are just doing a lot better job for our customers. We're flowing the cash. We're squeezing out waste and ineffective processes out of the business. And we're building our future. Thryv is operating system for independent businesses, and we have a leadership position in this large and fast-growing Software-as-a-Service market. With that, Lori, I'd like to turn it over to you to open it up for questions.

[Operator Instructions] We do have a question from the line of Jonathan Sacks of Stonehill.

Can you tell us a little bit more about the Thryv software and what services that's providing exactly to the customers and how it's being received so far?

Sure. So think of Thryv as an operating system for an independent local business owner. They're largely up against big national and regional companies and even some venture-backed app providers and e-commerce players. And the consumer experience is a lot better with these giant companies. Consumers can whip out a smartphone and talk to it and look at the map, schedule an appointment, deal with it. For a lot of independent business owners, they don't have any of those tools. They do things in an analog world. So what Thryv is really doing is it's coming along and it's allowing those local independent businesses to play at the same level as the larger national and regional companies. And so it handles appointment booking and scheduling within the business, it handles 2-way communication where they can do text and e-mail communications with their customers. They can maintain a digitized database and record in a CRM-type format of all the transactions, the interactions they have with their various business owners. It also does a lot for managing their listings and reputation out across the web. We work closely with Yext in that element. There's also a social media component to it. So it really is kind of the operating system for those local businesses, helping them to find more efficiency, and essentially, run their business from a mobile device.

And how is it being received? Or what industries is it getting traction in?

Well, because our legacy is, the Yellow Pages is A to Z, every business from A to Z, we are working in a horizontal fashion as we implement what we call local business automation. So we've got very happy Thryv customers, more than 28,000 of them at this point, that are really coming from all different walks of life from lots of different industries. We don't just have just any one vertical approach. And we are offering some minor vertical customization that we plan to do more in the future. But it's early days. We've only been at this for a couple of years, and we're really just getting a head of steam up. But the uptake is very good. They're selling briskly. They're retaining at a high level. And increasingly, we're getting clients more and more engaged in using a lot of these tools. One of the important differentiators for Thryv is it has a Dallas-based service team here that work closely with the local business owners across the country with their various questions and helping them to set up and optimally use this tool. There are various CRM and marketing automation-type software tools that you can buy from other providers. But for the most part, they come with no service. It's a buy-it-yourself, do-it-yourself type thing. And as you can imagine, the 700-or-so thousand customers we have at DexYP are largely baby boomer, kind of a little bit more mature businesses and not necessarily overall as tech-savvy. So the service offering is a big part of the differentiation and big part of the success. We're not just offering tools, we're actually coaching and teaching and leading these local businesses in how to implement and use these tools.

That's great. And can you just give a little bit of an overview of sort of our mix of digital products? I know there are several different ones, but it's hard to know how large each one is or what comprises the bulk of the revenue. And if you could compare and contrast that a little bit with YP's digital business and what would you expect that, that would look like going forward as the 2 companies are merged.

Sure. The slippery slope in this business is reselling other people's low-margin products and ending up in a commoditized digital battle where you're just selling the same thing that everybody else is selling. There's no barrier to entry out there at all to just go be a Google reseller or just resell for Facebook. As you -- most of you on the call here know, in the digital advertising space, Google and Facebook are first and second place and then there's a long, long way before you get to third place. They really are dominating that space. So it's a pretty low-margin operation to just resell, particularly for Google. So if you look at our business, one of the things that we've done over the last couple of years in Dex is we have been weaning ourselves off of or deemphasizing search engine marketing and putting more focus and more emphasis on owned and operating or exclusive solution products which have much, much higher retention. They don't churn out the way that search engine marketing, Google does. And they have much, much better margins, much stickier, much better financially for us. So as to your question about YP coming in, over the last couple of years, YP was pushing very hard to try to maintain digital revenue growth or slower digital revenue decline, and they pushed the sales force to get the digital sales, and they got them. A lot of them are search engine marketing sales. So while they've got a nice mix of business, they've got a big IYP business, Internet Yellow Pages that is, YP.com, with a great audience that we're really excited about and that's a very profitable line of business for them, over the last couple of years, they were sort of flipping into that search engine marketing hole. And so there's a lot of search engine marketing there, and it is churning, and that would be one of the issues that we need to address early on.

[Operator Instructions] Your next question comes from the line of Christina Murphy of Paulson & Co.

Yes, this is John Paulson. Could you talk a little bit about your plans for YP.com and how you plan to integrate that with Dex?

Yes, absolutely. One of the things that we're most excited about in the combination with YP is the tremendous audience that YP.com brings to us. YP.com has multiples more traffic than Superpages or DexKnows does. And this represents a real opportunity for the company. So we intend to -- we maintain the team that runs YP.com. We're going to carry on investing in that and nourishing that because we think that owned and operated traffic is a real differentiator. When you're out there walking up and down the street selling commoditized digital products, having your own giant audience makes a big, big difference. And it makes that difference in several ways. One is that when you do get involved in running search campaigns, you have much of your own traffic that you can feed in, which helps improve the margins. You also have the data that comes from that search activity to infuse into those search campaigns to run them better. So it helps in that way. About a little over a year ago we made an arrangement with YP where we included YP.com into our Extended Search Solution for Dex. And that's part of the really strong growth you've seen over the last year of our Internet Yellow Pages within Dex. And so now, that's a combined entity, and we feel that, that growth will be -- continue to be very, very strong in Dex. Unfortunately, recently, within YP, they've actually been declining a little bit in the Internet Yellow Pages and we're going to work on that and see if we can include the entire YP organization into our ESS solution, our Extended Search Solution, which really features the IYP. And we think that, that will hopefully allow us to return the YP side back to growth and the IYP as well. But John, that's a great question because the real asset here are the owned and operated references that we have, both to the printed telephone directories and to the online Yellow Pages. That's the real, real asset. And we're endeavoring to really level leverage that asset to a maximum.

At this time there are no further questions. I'll now return the call to Joe Walsh for any additional or closing remarks.

Well, thank you very much, everyone, for attending the call. We're very pleased overall with the progress that we're making. We've got the Dex legacy company platform at a very operationally efficient level at this point, and now, as we bring the YP 300,000-or-so clients on to that foundation, we think that there's a lot of margin flow-through opportunity and we're really excited about the reach this gives Thryv. We feel like we can now accelerate the growth and development of Thryv with a full national footprint and a very skilled sales force that's chomping at the bit. If I could just give you a little bit of color on what these last few weeks working with the YP sales organization has been like, they are just so enthused about this pivot, the idea of moving away from just selling marketing and sales things, to really getting into Software-as-a-Service and working with local businesses on local business automation. The energy level, the enthusiasm in YP to get started with that, is incredible. We are planning before the end of this year to get that sales force trained up and selling Thryv, but they want to start today. I mean, they're ready to go right now. So we look forward to updating you at our next call. But we're on track, on plan with the integration. And we feel really good about how it's going. So I'll close there. Thank you.

Thank you. That does conclude Dex Media's Second Quarter 2017 Conference Call. You may now disconnect.