Dallas, Texas 07/13/2015 (Financialstrend) – Dex Media Inc (NASDAQ:DXM) in an SEC filing has confirmed plans to retain its set of advisers led by Moelis & Company LLC, Alvarez & Marsal, North America, LLC and legal advisors Kirkland & Ellis LLP. The advisers are to provide guidance on the implementation of the company’s strategic plan.
Cost Cutting Measures
The restructuring plan should see the company spend a great deal in launching virtual sales offices that are to replace field sales offices. Dex Media Inc (NASDAQ:DXM) is also in the process of automating its sales process with the integration of new systems expected to reduce its workforce leading to a low wage bill.
Dex Media Inc (NASDAQ:DXM) is currently looking for ways to enhance its revenue as it continues to face uncertainty on its liquidity levels. The company has seen its market value slid in the market much to the concern of the NASDAQ that has already issued a warning. Its market value has already dropped below $15 million, needed to be in compliance with the NASDAQ trading regulations.
The exchange has given the company 180 days to reach and hold the $15 million market value for an average of 10 days or be delisted from the market. The local advertising business has already sold its building in Martinsburg as part of downsizing efforts geared towards improving the company’s liquidity. However, Dex Media Inc (NASDAQ:DXM) is to continue occupying the building as part of a leaseback agreement.
The advisers are expected to share insight on how they believe the company should operate in its pursuit of reshaping client offerings. Dex Media Inc (NASDAQ:DXM) is also looking to streamline its operations as it continues to evaluate its capital structure.
Dex Media Inc (NASDAQ:DXM) finds itself in the current financial mess having posted a net loss of $59 million for the first quarter, translating to a loss of $3.39 a share. Revenues came in at $406 million with the situation expected to be worse in Q2, where the company said it expects its revenue to come in the range of $390 million and $410 million.