WWW.IBISWORLD.

COM Database & Directory Publishing in the USMarch 2019   1

Find and replace: Revenue will continue to

decline as customers migrate to the internet
This report was provided to
Edeska (2129455405)
by IBISWorld on 08 July 2019 in accordance with their license agreement with IBISWorld

IBISWorld Industry Report 51114

Database & Directory
Publishing in the US
March 2019 Devin McGinley

2 About this Industry 16 International Trade 28 Key Statistics

2 Industry Definition
2 Main Activities
2 Similar Industries
3 Additional Resources
4 Industry at a Glance
5 Industry Performance
5 Executive Summary
5 Key External Drivers
7 Current Performance
9 Industry Outlook
11 Industry Life Cycle
13 Products and Markets
13 Supply Chain
13 Products and Services
14 Demand Determinants
15 Major Markets
17 Business Locations 28 Industry Data
28 Annual Change
19 Competitive Landscape 28 Key Ratios
19 Market Share Concentration 29 Industry Financial Ratios
19 Key Success Factors
19 Cost Structure Benchmarks 30 Jargon & Glossary
21 Basis of Competition
21 Barriers to Entry
22 Industry Globalization
23 Major Companies
23 Dex Media Holdings Inc.
25 Operating Conditions
25 Capital Intensity
26 Technology and Systems
26 Revenue Volatility
27 Regulation and Policy
27 Industry Assistance

www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

WWW.IBISWORLD.COM Database & Directory Publishing in the USMarch 2019   2

About this Industry

Industry Definition This industry includes companies that
publish organized compilations of
information or facts. These collections
may be published in print or electronic
form. Electronic versions can be provided
directly to customers by the publisher or
offered through online services or
third-party vendors. However, businesses
that publish solely on the internet are
excluded from this industry.

Main Activities The primary activities of this industry are

Selling advertising space
Publishing business and telephone directories
Maintaining and selling databases
Publishing mailing lists

The major products and services in this industry are

Databases
Directories
Other

Similar Industries 32311 Printing in the US

Companies in this industry print on apparel and textile products, paper, metal, glass, plastics and other
materials. Such printing is done without publishing databases and directories.

51113 Book Publishing in the US

Companies in this industry publish encyclopedias.

51121 Software Publishing in the US

Companies in this industry publish computer software.

51911 News Syndicates in the US

Companies in this industry supply information to news media such as news reports, articles, pictures and
features.

51913b Internet Publishing and Broadcasting in the US

Companies in this industry operate websites that use search engines to generate and maintain extensive
databases of internet addresses and content.

51913a Search Engines in the US

Companies in this industry operate websites that use search engines to generate and maintain extensive
databases of internet addresses and content.

Provided to: Edeska (2129455405) | 08 July 2019

WWW.IBISWORLD.COM Database & Directory Publishing in the USMarch 2019   3

About this Industry

Additional Resources For additional information on this industry

www.adp.org
Association of Directory Publishers
www.localsearchassociation.org
Local Search Association
www.localsearchinsider.org
LSA Insider

IBISWorld writes over 1000 US

industry reports, which are updated
up to four times a year. To see all
reports, go towww.ibisworld.com

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WWW.IBISWORLD.COM Database & Directory Publishing in the US March 2019   4

Industry at a Glance
Database & Directory Publishing in 2019

Key Statistics Revenue Annual Growth 14–19 Annual Growth 19–24

Snapshot
$7.0bn -2.8% -5.9%
Profit Wages Businesses

$279.2m $974.8m 2,443

Revenue vs. employment growth Print advertising expenditure
Market Share
Dex Media 8 -2
Holdings Inc.
0
30.7% -4

-8
% change

% change
-6
-16

-8
-24

-32 -10
Year 11 13 15 17 19 21 23 25 Year 12 14 16 18 20 22 24
Revenue Employment
SOURCE: WWW.IBISWORLD.COM
p. 23
Products and services segmentation (2019)

Key External Drivers 4.8%

Other
Print advertising
expenditure
Percentage of services
conducted online
Corporate profit
Total advertising
38.8%
expenditure Databases

56.4%
Directories

p. 5

SOURCE: WWW.IBISWORLD.COM

Industry Structure Life Cycle Stage Decline Regulation Level Light

Revenue Volatility Medium Technology Change Medium
Capital Intensity Medium Barriers to Entry High
Industry Assistance Low Industry Globalization Low
Concentration Level Low Competition Level Medium

FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 28

Provided to: Edeska (2129455405) | 08 July 2019

WWW.IBISWORLD.COM
Industry Performance
Executive Summary   |   Key External Drivers   |   Current Performance
Industry Outlook   |   Life Cycle Stage
Executive Summary The decline of the Database and
Directory Publishing industry over the
past five years has been driven by the
sustained migration from print to digital
advertising, as the industry historically
generated the majority of its revenue
from the sale of advertisement space in
printed publications. Print advertising
expenditure, which drives demand for
advertising space in directories, is
expected to decline at an annualized rate
of 4.5% over the five years to 2019.
Forced to increase its digital presence,
the industry has experienced intense
Online
competition will rise, but improved
advertising demand will slow the
industry’s decline
competition from online substitutes,
limiting the industry’s digital
advertisement sales. In particular,
industry operators are enduring high
external competition from online search
engines, such as Google, and social media
platforms, such as Facebook. As a result,
over the five years to 2019, industry
revenue is expected to fall an annualized
5.9% to $7.0 billion, including a projected
drop of 2.3% in 2019.
Demand for printed directories has
fallen over the past five years, as
institutional clients and consumers have
continued their shift to online resources.
Key External Drivers Print advertising expenditure
Database and directory publishers
generate the majority of their revenue
from the sale of print advertising space.
Due to changing consumer preferences,
digital media has increasingly replaced
print media as a source of news and
entertainment. Consequently, businesses
have reduced investment in print
advertisements, shifting their focus to
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Database & Directory Publishing in the USMarch 2019   5
Declining demand for print advertising
has curbed industry revenue, and growth
in online revenue has only slightly
mitigated this decline. Additionally, this
transition has negatively affected
industry profitability, as operators have
been forced to lower advertising prices to
compete with more popular digital media
platforms for advertising revenue.
Declining profitability has forced
enterprises from the industry, driving
down industry participation. Remaining
operators have cut labor costs to protect
profit margins, causing both employment
and wages to fall significantly.
The industry is forecast to continue to
decline over the next five years, as both
businesses and consumers will
continually turn to digital alternatives for
information and advertising
opportunities. Consequently, demand for
ad space in traditional print publications
is anticipated to decline, hurting industry
performance. As online publications’
share of industry revenue continues to
expand, industry operators will be
increasingly forced to compete in the
digital advertising market largely
dominated by search engines and social
media platforms. Nevertheless, operators
will benefit from improving overall
demand for digital products and services,
helping to temper the industry’s decline.
Over the five years to 2024, industry
revenue is projected to fall at an
annualized rate of 2.8% to $6.1 billion.
digital publication advertisements. Such
a shift has negatively affected industry
revenue and forced operators to
increasingly publish online, where they
endure significant competition from
search engines and social media sites for
digital advertisement spending. In 2019,
print advertising expenditure is
anticipated to decline, posing a potential
threat to the industry.
WWW.IBISWORLD.COM
Industry Performance
Key External Drivers Percentage of services conducted online
continued References to print yellow pages will
gradually decline as people increasingly
turn to competitive webpages to search
for information. This shift diminishes the
attractiveness of advertising in printed
directories. Additionally, leading internet
search engines and social media
platforms are focusing on local
commercial search initiatives and are
expected to gain market share from
companies within this industry. The
percentage of services conducted online
is expected to increase in 2019.
Corporate profit
Business spending on advertising is
closely linked to a company’s broader
performance. Advertising costs are often
the first items to be scaled back when
earnings decline. Conversely, higher
profitability permits businesses to direct
more resources toward expanding their
Print advertising expenditure
-2
-4
% change
-6
-8
-10
Year 12 14 16 18 20
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Database & Directory Publishing in the USMarch 2019   6
market base through advertising.
Corporate profit is expected to rise in
2019, representing a potential
opportunity for the industry.
Total advertising expenditure
Database and directory publishers
generate the majority of their revenue
from the sale of advertising space. While
print advertising expenditure has
declined, overall advertising expenditure
has increased, driven by the expansion of
the digital advertising market.
Consequently, as businesses invest in
online advertisements, industry operators
will focus more of their efforts on digital
publications as a means of generating
revenue from the sale of advertisement
space. However, such revenue growth will
be mitigated by strong competition from
search engines and social media sites. In
2019, total advertising expenditure is
anticipated to rise.
Percentage of services conducted online
25
20
15
%
10
5
22 24 Year 10 12 14 16 18 20 22 24
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Performance
Current The migration of advertising from
printed directories to online media has
Performance slashed Database and Directory
Publishing industry revenue over the past
five years. Both the share of services
conducted online and consumers’ use of
the internet to retrieve information have
significantly increased over the past five
years, causing demand for printed
telephone directories to decline. As a
result, over the five years to 2019,
IBISWorld expects industry revenue to
fall at an annualized rate of 5.9% to $7.0
billion, which includes a projected
decline of 2.3% over 2019 alone. Industry
profitability is also expected to decline, as
operators have been forced to sell
advertising space at lower prices to
compete for digital ad revenue with
popular alternative platforms, including
generalized search engines and social
media sites.
Industry operators provide several
products, including: directories, such as
yellow and white pages; databases; and
mailing lists. Advertising dollars have
been increasingly directed toward
internet-based, digital products rather
than printed products, as internet
The decline of print Directory and database publishers earn
advertising the majority of their revenue by selling
advertising space to businesses. As a
result, industry revenue moves in line
with business expenditure on marketing,
which is sensitive to the level of overall
economic activity in the United States.
While total advertising expenditure is
expected to rise over the five years to
2019, expenditure on print advertising is
anticipated to decline during the period
at an annualized rate of 4.5%. The
primary cause of this decline has been
the growing importance of the internet
and digital media for the retrieval of
information. Consumers have
increasingly turned to digital forms of
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Database & Directory Publishing in the USMarch 2019   7
Industry revenue
6
0
-6
% change
-12
-18
-24
Year 11 13 15 17 19 21 23 25
SOURCE: WWW.IBISWORLD.COM
advertising enables operators to better
target their audience. However, industry
operators endure enormous competition
from internet search engines and social
media platforms for viewership. Given
the popularity and widespread use of
search engines and social media, these
present substantial competition for
advertising dollars. As a result, the
decline of print advertising and
substantial competition for digital
advertising have weighed heavily on
industry performance.
information in recent years, including
search engines and social media and
electronic books, causing demand for
printed books, newspapers and other
publications to decline.
While most industry operators have
increasingly shifted to digital forms of
directories, databases and mailing lists,
the revenue generated from the industry’s
digital publications has been limited.
Namely, the market for digital
advertisements is saturated with a range
of online-only directory publishers (which
are excluded from this industry) and other
websites, such as Yelp, that provide more
accurate targeted advertising
opportunities than industry participants
WWW.IBISWORLD.COM
Industry Performance
The decline of print for small- to medium-size businesses.
advertising continued More importantly, industry operators
endure overwhelming competition for
internet ad expenditures from leading
search engine providers and popular
social media pages, which tend to be less
generalized but provide consumers access
to much of the same information.
Additionally, search engines and social
media sites offer stiff competition in
terms of service. Rather than visiting a
digital directory site to conduct business
searches, consumers are increasingly
bypassing these sites entirely, opting
instead to perform the same search while
Industry participation Historically, the industry was
dominated by a few of the leading
and profit
telephone companies, such as AT&T
and Verizon Communications.
However, as demand for industry goods
and services declined, these companies
spun off their publishing businesses,
which now largely combined in the
industry’s sole major player. The
industry’s then largest player, YP
Holdings, was the former advertising
solutions segment of AT&T. That
company had itself spun off its print
media business in 2014, only for its
remaining digital operations to be
acquired in 2017 by Dex Media Inc.
(Dex Media), historically the second-
largest directory publisher. Dex Media
was formed from a merger of Dex One
and Supermedia, and previously was
part of Verizon. Dex Media and YP
Holdings are now combined into
DexYP, which accounts for just under
one-third of the industry, with the
remainder of the industry consisting
mainly of niche players without
significant revenue. Overall, over the
five years to 2019, the number of
enterprises operating in the industry is
expected to decline at an annualized
rate of 7.2% to 2,443.
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Database & Directory Publishing in the USMarch 2019   8
on Google or Facebook as a matter of
convenience. Since search engines and
social media sites act as more convenient
substitutes for industry services, industry
operators have struggled to attract
advertisement expenditure, as their sites
are becoming increasingly unpopular
with consumers. As revenue from print
media has continued to fall and revenue
from digital media has been limited by
strong search engine and social media
competition over the five-year period,
the industry has responded through
increased consolidation and cost-
cutting measures.
Operators have slashed
digital advertising space
prices, cutting into margins
Industry profitability is expected to
decrease over the five years to 2019. As
industry operators increasingly opt to
increase their digital presence to capitalize
on an expanding market for digital
advertising space, they have been forced
to adjust to competitive pressure from
well-established, popular alternative
platforms, such as search engines and
social media sites. In an effort to increase
their attractiveness, industry operators
have slashed digital advertising space
selling prices, cutting into their margins
during the period. IBISWorld anticipates
that industry profit has declined as a share
of revenue, from 5.2% in 2014 to 4.0% in
2019. To minimize profit contraction,
operators have opted to reduce
operational costs. For example, companies
have substantially cut labor costs,
reducing both industry employment and
wages. Over the five years to 2019, the
industry’s workforce is expected to
contract at an annualized rate of 11.9% to
14,700 employees.
WWW.IBISWORLD.COM
Industry Performance
Industry Over the five years to 2024, the Database
and Directory Publishing industry is
Outlook anticipated to continue its downward
trajectory. Advertising revenue from
printed directories will further decline as
small and large businesses turn to digital
advertisements for better returns on
investment. As online advertising
expenditure increases in the upcoming
years, more industry participants will
focus on developing their digital services
and products. As a result, an increasing
number of operators are expected to exit
the industry in favor of online-only
operations. The remaining operators are
expected to experience intensifying
competition from search engines and
Print advertising Print advertising expenditure is expected
spending falls to continue declining over the next five
years. During the period, IBISWorld
projects a 5.4% annualized decline, even
as total advertising expenditure rises an
annualized 2.7%. Although growth in
consumer spending and private
investment will boost spending on
advertisements overall, declining print
advertising expenditure will be driven by
the continued shift in consumer
preference to digital and online forms.
Over the next five years, digital media
Digital shift plagues Revenue from printed directories is
industry projected to decline over the next five
years, principally driven by intense
price-based competition among print
directory publishers, competition from
alternative advertising media and
plummeting expenditures on print
advertisements. Such strong competition
is forecast to erode industry profit during
this period. In response to lower margins,
smaller niche directory publishers will
follow industry leaders in offering online
products and services.
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Database & Directory Publishing in the USMarch 2019   9
social media platforms, leading to slow
digital advertisement sales growth. As
more consumers are expected to conduct
business searches on sites such as Google
or Facebook as a means of convenience,
industry sites will experience falling
viewership, forcing them to lose out on
advertisement spending. Even players
that maintain traffic to online directories
will experience the problem that has
plagued print publishers over the past
decade: due to heavy price competition
and programmatic ad markets, digital
consumers are never as valuable as print
consumers. Over the five years to 2024,
industry revenue is projected to fall at an
annualized rate of 2.8% to $6.1 billion.
Decliningprint advertising
expenditure will be driven
by the continued shift to
digital and online forms
viewership is expected to increase
relative to print. As a result, industry
operators will be forced to combat
intense competition from online search
engine and social media companies.
Competition from search engines and
social media sites will remain the greatest
challenge to industry revenue growth.
For example, operators in the Search
Engines industry (IBISWorld report
51913a), such as Alphabet Inc., the parent
company of Google, have a competitive
advantage in terms of attracting digital
advertising expenditure, as it has the
technological capabilities to advertise to
very specific consumer segments,
appealing to a range of businesses
looking to spend on advertisements.
WWW.IBISWORLD.COM
Industry Performance
Digital shift plagues Similarly, social media sites like
industry continued Facebook have invested in similar
advertisement-targeting capabilities.
Additionally, both search engines and
social media sites are expected to
continue to limit industry advertising
market share. As a matter of convenience,
more consumers are expected to conduct
business searches while on Google,
Facebook and similar general-interest
sites, rather than visiting a digital
directory or database to yield similar
results. Thus, changing consumer
preferences will result in increasingly
tough competition from search engines
and social media, forcing industry
companies with digital databases to lower
Ongoing Publishers are anticipated to continue
consolidation merger and acquisition activity as the
leading operators try to boost
performance by acquiring smaller
competitors that possess valuable
trademarks and patents. As the industry
becomes more digitized over the
upcoming years, fewer companies will be
involved with publishing directories,
leading to a highly competitive landscape
that is dominated by a few operators.
Consequently, the number of
establishments is expected to fall at a
slightly slower rate than the number of
enterprises. Moreover, consolidation will
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Database & Directory Publishing in the USMarch 2019   10
advertising prices. Accordingly, directory
operators in this industry will focus on
improving their online offerings to
protect their revenue bases.
As a result of declining print
advertisement spending, along with fierce
digital advertising and service competition,
an increasing number of industry
companies are expected to exit the
industry, either by pivoting to online-only
services or shuttering altogether. Over the
next five years, the number of active
database and directory publishers is
forecast to fall at an annualized rate of 5.8%
to 1,808 companies. Similarly, employment
in the industry is projected to drop an
annualized 5.0% to 11,381 workers.
Publishers
are anticipated
to continue M&A activity as
the leading operators try to
boost performance
help decelerate the decline of industry
profitability, though price pressures are
likely to continue gradually eroding
margins. However, consolidation also
presents the possibility that a prominent
pivot to online-only operations could
cause steeper drops in industry revenue.
WWW.IBISWORLD.COM Database & Directory Publishing in the USMarch 2019   11

Industry Performance
Life Cycle Stage Industry value added is anticipated
to fall over the 10 years to 2024
The industry endures intense competitive
pressure from digital alternatives
Industry participation is expected to
decline over the 10 years to 2024

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WWW.IBISWORLD.COM
Industry Performance
Industry Life Cycle The Database and Directory Publishing
industry is in the decline phase of its life
cycle. Over the 10 years to 2024, industry
Thisindustry is value added (IVA), which measures the
in D
 ecline industry’s contribution to the overall
economy, is anticipated to decline at an
annualized rate of 8.1%. By comparison,
US GDP is projected to grow at an
annualized rate of 2.1% during the same
10-year period. Along with an IVA that is
forecast to substantially underperform
the economy, several other factors point
to the decline of this industry.
During this 10-year period, industry
revenue is expected to erode, primarily
due to a consistent decline in print
advertising expenditure. As a result, the
industry has been forced to adapt to
alternative, more efficient modes of
online advertising and directory service.
However, leading search providers and
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Database & Directory Publishing in the USMarch 2019   12
popular social media sites, such as
Google, and popular social media
platforms, such as Facebook, have grown
in popularity and are anticipated to
benefit from the overwhelming majority
of revenue derived from digital
advertisements. Although companies and
local businesses will allocate a greater
share of advertising expenses to online
advertisements, this industry’s digital
advertisement revenue gains will not be
sufficient to reverse losses from declining
print advertising expenditure. Given the
declining revenue, many companies have
been forced to exit the industry, either
shuttering entirely or pivoting into
online-only services that are beyond the
scope of the industry. During the 10-year
period, the number of companies
participating in the industry is projected
to decline at an annualized rate of 6.5%.
WWW.IBISWORLD.COM Database & Directory Publishing in the USMarch 2019   13

Products & Markets

Supply Chain   |   Products and Services   |   Demand Determinants
Major Markets   |   International Trade   |   Business Locations

Supply Chain KEY BUYING INDUSTRIES

44-45 Retail Trade in the US
Local retailers purchase ad space from industry operators to advertise their business.
54181 Advertising Agencies in the US
Companies in this industry purchase mailing and industry lists from database and directory
publishers.
54182 Public Relations Firms in the US
Industry players supply mailing and business/industry operator lists to public relations
companies.
54186 Direct Mail Advertising in the US
Direct mail advertisers require the mailing lists that database and directory publishers produce.
54189 Promotional Products in the US
Virtually all marketing campaigns purchase information about people and businesses in their
targeted region.

KEY SELLING INDUSTRIES

42411 Paper Wholesaling in the US
Paper producers supply publishers with paper to produce printed directories.
51711c Wired Telecommunications Carriers in the US
Companies in this industry supply listings information to database and directory publishers.
51711e VoIP in the US
Carriers of wired telecommunications provide listings information to publishers of database
and directories.

Products and Services Products and services segmentation (2019)

4.8%
Other

38.8%
Databases
56.4%
Directories

Total $7.0bn SOURCE: WWW.IBISWORLD.COM

Print directories information and conducting a variety of

Print directories are anticipated to
account for 56.4% of industry revenue in
2019. The shift of consumer preferences
has led to the decline in print publications,
as more consumers are searching for
activities online. This has driven industry
participants to increasingly focus on
online publications. Furthermore,
websites such as Yelp, search engines like
Google and leading social media platforms

Provided to: Edeska (2129455405) | 08 July 2019

WWW.IBISWORLD.COM
Products & Markets
Products and Services such as Facebook have replaced the need
continued for both printed and online directories
and databases. For example, consumers
are no longer limited to combing
advertisements in directories for local and
small businesses, as an internet search bar
yields almost immediate results. Over the
next five years, print publications’ share of
revenue is forecast to further decline as
websites operated by both industry
participants and competitors continue
obtain share of the overall market for
database information and advertisements.
Online publications
Online databases have become
increasingly important for customers,
as accessible and timely data becomes a
necessity. This segment’s share of the
industry has substantially increased to
38.8% in 2019. Many providers of
printed directories also offer an
Demand The information and services provided by
Determinants the Database and Directory Publishing
industry are often considered essential and
necessary promotional tools by local and
regional businesses. This idea is reinforced
by the promotions and advertising
undertaken by directory publishers. Unlike
most other forms of advertising, changing
economic conditions do not significantly
alter industry revenue since directory
advertising is viewed as a necessity for
many businesses. Small- and medium-size
businesses (SMBs) account for a large
percentage of directory advertising
spending, and a recent proliferation of
large retail chains appears to have harmed
some SMBs’ financial performance and
negatively affected demand for directory
advertising from SMBs.
Websites are capturing a growing
share of the classified advertising market,
and this is a factor slowing growth in
printed advertising, including in
directories. Also, directory companies’
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Database & Directory Publishing in the USMarch 2019   14
internet listing service, and this
segment’s contribution to the industry
is increasing steadily. Nonetheless, the
industry endures heavy competition
from companies that operate strictly
online, which are not included in the
industry. While online publications
have not yet displaced print
publications, their share of industry
revenue is anticipated to continue
growing during the upcoming years.
Other
In addition to its two main product
offerings, databases and directories, the
industry has several smaller ancillary
revenue streams. Miscellaneous products
and services account for an estimated
4.8% of industry revenue and include
rental of mailing lists, licensing of
intellectual property and contract
printing services.
print and online products are enduring
increasing competition from internet
search engines and social media
platforms, such as Google and Facebook.
Demand for business directories has two
interrelated components: the provision of
information for consumers and the
provision of advertising for suppliers.
Business and residential
telephone directories
Households and businesses use business
directories as a source of information for
service and product providers. Pursuant
to state public utilities commission
requirements, telephone companies must
publish and distribute white pages
directories of certain residences and
businesses that order or receive a local
telephone service. Telephone companies
often outsource the publication and
distribution of directories.
The business model of telephone
directory publishers is largely based on
WWW.IBISWORLD.COM
Products & Markets
Demand generating advertising revenue from the
Determinants providers of listed information such as
businesses, governments and nonprofit
continued
organizations. These providers use local
directories to advertise special events and
promote their organizations, although
Major Markets Major market segmentation (2019)
4.8%
Other
40.9%
Subscribers
Total $7.0bn
Advertisers
The sale of advertising space is expected to
comprise 54.3% of industry revenue in 2019.
Since the industry relies heavily on revenue
from advertising sales, any downturn in
advertising has a negative impact on industry
operators’ bottom lines. As print advertising
has continued to decline over the five years to
2019, the industry has more aggressively
targeted online, digital advertising. Thus far,
revenue from online advertisements has not
been enough to offset the decline of revenue
from print advertisements. Consequently,
advertisements’ share of revenue has
declined since 2014.
Subscribers
General sales and subscription sales
make up an estimated 40.9% of industry
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Database & Directory Publishing in the USMarch 2019   15
businesses (mainly SMBs) are the
predominant source of directory
advertising spending. Directory
publishers charge varied prices for
advertisements, depending on the size
and placement of the advertisement.
54.3%
Advertisers
SOURCE: WWW.IBISWORLD.COM
revenue in 2019. Revenue generated
from sales and subscriptions is expected
to decline over the coming years, though
not as much as advertising. Both
segments will likely decline relative to
other miscellaneous services, as demand
for the industry’s core services declines
and operators strive to offset losses
through ancillary services like mailing
list rental and third-party printing.
Many clients that purchase
subscriptions want to have their desired
data available at all times and updated
prudently. The online publication of
databases and directories has fulfilled
this demand better than any other
technological advance that the industry
has seen, raising its popularity and share
of industry sales.
WWW.IBISWORLD.COM Database & Directory Publishing in the USMarch 2019   16

Products & Markets

International Trade Database and directory publishers do not pages directories are tied with
engage in international trade. Operators telecommunications companies that only
in this industry typically focus on serving service consumers and businesses in a
local and regional markets. Many yellow limited geographic region.

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 WWW.IBISWORLD.COM Database & Directory Publishing in the USMarch 2019   17

Products & Markets

Business Locations 2019

West
AK
0.3 New
England
ME
Great Mid- 0.6

Lakes Atlantic 1 2
NY 3
WA MT ND 7.3
5 4
2.8 0.6 MN
Rocky
0.4 2.2
WI
OR Mountains SD
0.4
Plains 1.9 MI
1.8
PA
3.4
6
7
1.9 ID IA OH 9 8
0.5 WY 4.7
0.4
NE
1.0
IL IN WV VA
3.8 0.8 3.8

West NV
2.4 0.4
KY
UT MO
1.0 NC
1.2
1.7 CO KS 2.0 1.8
2.5 1.4 TN
SC
Southeast
1.0
CA 1.5
10.8
OK AR GA
1.9 0.4 AL 2.7
AZ MS 0.8
1.5 NM
0.3 Southwest 0.5

TX LA
1.5 FL
7.8 6.1

West Establishments (%)

HI Less than 3%
0.6 Additional States (as marked on map) 3% to less than 10%
1 VT 2 NH 3 MA 4 RI 10% to less than 20%
0.4 0.6 1.8 0.4 20% or more

5 CT 6 NJ 7 DE 8 MD 9 DC
1.7 2.9 0.1 1.4 0.4

SOURCE: WWW.IBISWORLD.COM

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WWW.IBISWORLD.COM Database & Directory Publishing in the USMarch 2019   18

Products & Markets

Business Locations The Database and Directory Publishing

Distribution of establishments vs. population
industry is highly concentrated in areas
that are densely populated. Industry
30
establishments are also located near
downstream customers. The head office
locations of major telecommunications 20
companies are also critical to industry
players, which source their information

%
from such companies. 10
The largest region for the industry is
the Southeast, which accounts for 21.5%
of total industry establishments. The 0
West and the Mid-Atlantic regions also

West

Great Lakes

Mid-Atlantic

New England

Plains

Rocky Mountains

Southeast

Southwest
account significant shares of industry
establishments, at 17.6% and 15.5%,
respectively. Industry establishments are
concentrated in a few states, including Establishments
California (10.8% of establishments), Population
Texas (7.8%), New York (7.3%) and SOURCE: WWW.IBISWORLD.COM

Florida (6.1%). Many directory publishers

were previously located in regions close less important for operators because the
to telecommunications and advertising internet has enabled operators to
clients. Proximity to clients has become communicate over long distances.

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WWW.IBISWORLD.COM Database & Directory Publishing in the US March 2019   19
Competitive Landscape
Market Share Concentration   |   Key Success Factors   |   Cost Structure Benchmarks
Basis of Competition   |   Barriers to Entry   |   Industry Globalization
Market Share The Database and Directory Publishing
Concentration industry exhibits a low level of
concentration. In 2019, only one
company holds a market share greater
Level
than 5.0%, with Dex Media Holdings Inc.
Concentration in expected to control 30.7% of industry
this industry is L ow revenue. Market share concentration has
been on the rise, however, since Dex
Media Holdings is the result of mergers
over the years, including its purchase of
Key Success Factors Development of new products
Companies must be able to develop new
products, such as specialized directories
IBISWorld identifies and internet services, to maintain market
250 Key Success share in a declining industry.
Factors for a
business. The most Product differentiation
Due to the competitive nature of
important for this
market for databases and directories,
industry are: operators must differentiate their
products and services.
Protection of intellectual property/
copyrighting of output
Trademarks, service marks, database and
software copyrights and other intellectual
property can be material assets for
businesses in this industry. Therefore, it
Cost Structure Profit
Benchmarks Industry profit, measured as earnings
before interest and taxes, is anticipated to
account for 4.0% of revenue in 2019,
representing a decline from 5.2% in 2014.
This profit contraction has been primarily
driven by the declining popularity of print
media. To generate revenue from a
contracting print publications market,
industry operators have been forced to
lower selling prices for print advertising
space, adversely influencing profit
margins. Nonetheless, profit margins vary
drastically from company to company. As
the industry continues to decline over the
Provided to: Edeska (2129455405) | 08 July 2019
SuperMedia in 2013 and the acquisition
of much of the Yellow Pages’ operations
in 2017. Still, the market remains
relatively fragmented because although
general directory publishing has
consolidated, many specialized
directories and databases remain in
operation, operating in a niche and
failing to individually account for a
substantial market share.
is important to ensure continued
ownership of these assets.
Possession of accurate information
A company must ensure that the
information it provides is accurate to
retain customers and advertising clients.
Access to highly skilled workforce
It is important for companies to hire
experienced sales, marketing and
development professionals to develop
differentiated products and drive sales.
Securing sales contracts
Companies that obtain sales contracts
with the leading telephone companies
benefit from a reliable source of revenue.
next five years, industry profit is expected
to contract further, though declines will
likely be more modest as the industry
continues to adjust to an increasingly
digitally focused market.
Purchases
Costs associated with the production of
both physical and online directories are
anticipated to account for 12.1% of
revenue in 2019. Purchase costs are
expected to be on the decline. The price
of paper, one of the largest inputs into
industry directories, is expected to
increase at an annualized rate of only
WWW.IBISWORLD.COM Database & Directory Publishing in the US March 2019   20

Competitive Landscape

Cost Structure 1.1% over the next five years.
Benchmarks Furthermore, the cost to print and
distribute physical directories has
continued
declined due to lower volumes and lower
contract services costs. Additionally,
distribution costs have decreased as the
industry has gradually moved online,
lowering costs for industry operators.
various services to customers. To save
costs, companies will outsource or hire
temporary workers, which has affected
the average wage of the industry as well.
This trend is forecast to persist over the
next five years, as employment becomes
more competitive and labor shifts from
humans to computers.

Wages Other costs

In 2019, wages are expected to account
for 14.0% of industry revenue,
representing a decline from 2014. Over
the past five years, employment has
declined due to the growing importance
of online publications and the lesser need
for manual labor. With revenue
generated from online directories
accounting for an increasing share of
total industry revenue, operators have
had to hire a range of professionals
including IT specialists and advertising
analysts to create websites and provide
Other costs that are incurred by the
industry include depreciation,
amortization, research and development,
marketing and costs associated with
mergers and acquisitions (M&A), among
others. The industry has undergone
significant M&A activity over the past five
years, causing some of the leading
companies to operate at a loss due to the
high costs associated with purchasing
and restructuring an independent
company. Publishers rely on patents and
trademarks to ensure exclusive use of

Sector vs. Industry Costs

Average Costs of
all Industries in Industry Costs
sector (2019) (2019)
100
4.0 n Profit
n Wages
18.3 14.0 n Purchases
80 n Depreciation
12.1 n Marketing
26.7 2.3 n Rent & Utilities
3.3 n Other
Percentage of revenue

60 3.3

16.2
40
5.0
4.3 61.0
3.7
20

25.8
0
SOURCE: WWW.IBISWORLD.COM

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WWW.IBISWORLD.COM Database & Directory Publishing in the US March 2019   21
Competitive Landscape
Cost Structure intellectual property. Due to the growing
Benchmarks importance of online publications,
patent and trademark ownership has
continued
Basis of Competition Internal competition
Directory and database publishers usually
compete within specific geographic or
Level & Trend niche marketing areas based on price,
 ompetition
C in breadth of circulation and distribution,
this industry is presentation and user perception and
Mediumand the experience. Virtually all independent
directory publishers compete aggressively
trend is I ncreasing
on price to increase market share.
Furthermore, print publishers generate
revenue from advertising services and
therefore compete to offer the most
attractive prices for advertisement spaces.
Competition within the directory market
is decreasing due to the decline in the
number of industry operators over the five
year-period. The industry’s largest database
and directory publishers have been able to
protect profit margins from falling industry
revenue by engaging in large-scale
divestitures and mergers, as well as
acquiring smaller directory operations.
Along with decreased competition, these
activities have contributed to some
consolidation in the industry.
Barriers to Entry The primary barrier to entry for the
Database and Directory Publishing
Level & Trend industry is the declining nature of this
industry. Industry revenue is estimated
 arriers to Entry
B to decline at an annualized rate of 5.9%
in this industry are over the five years to 2019. Consequently,
Highand S teady the number of enterprises and
establishments have decreased
substantially, discouraging prospects
from pursuing a directory and database
publishing business. Therefore, barriers
to entry into this industry are high.
Other barriers to entry include the
costs associated with establishing a
publishing operation. Database and
Provided to: Edeska (2129455405) | 08 July 2019
increased in recent years, causing
amortization’s share of revenue to
consequently grow.
External competition
Printed telephone directories compete
for advertising sales with other
mediums, such as the internet,
newspapers, magazines, billboards, TV
and radio. Emailing list services also
compete directly with the industry’s
sales of mailing lists, especially because
their demographic details are getting
increasingly specific and are easier to
modify. References to print directories
in the United States are projected to
decline further, mainly due to a
migration to digital and interactive
media delivery devices for local
commercial search information.
Online competition comes from the
websites of online-only directory
publishers and search engines, such as
Google. Search engines in particular are
focusing and placing a high priority on
local commercial search initiatives
through location-specific advertising.
This is making them a closer substitute to
printed or specialized directories.
Barriers to Entry checklist
Competition Medium
Concentration Low
Life Cycle Stage Decline
Capital Intensity Medium
Technology Change Medium
Regulation and Policy Light
Industry Assistance Low
SOURCE: WWW.IBISWORLD.COM
directory production typically requires a
combination of internal technology and
outsourced printing and distribution.
WWW.IBISWORLD.COM
Competitive Landscape
Barriers to Entry Large directory publishers are able to
continued leverage economies of scale to negotiate
lower costs for the printing and
distribution of directories. The cost of
industry-specific technology (e.g.
database organizational software and
hardware) can be substantial and deter
prospects from entering the industry.
Building a directory or database
publishing business can be difficult
considering the high initial costs, in
addition to strict regulations that
protect consumer privacy. The time and
costs involved in building databases
Industry There is a low level of globalization in
Globalization the Database and Directory Publishing
industry. Many yellow pages directories
Level & Trend are still associated with large domestic
telecommunications companies but
 lobalization
G in this only a few have established similar
industry is L owand
the trend is S  teady
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Database & Directory Publishing in the US March 2019   22
from scratch can be significant.
Additionally, the market is crowded and
the industry has experienced growing
competition from publishers that
operate strictly online.
Existing operators can also capitalize
on their market recognition. They often
win sales by virtue of the recognition of
their brands by advertisers and through
national accounts. As a result, new and
small directory businesses are at a
disadvantage in attracting advertisers
due to a lack of brand recognition and a
small readership.
services in other countries. Most major
operators involved with databases and
mailing lists also only service the
domestic market. These factors
contribute to the low level of
globalization in the industry.
WWW.IBISWORLD.COM Database & Directory Publishing in the USMarch 2019   23

Major Companies
Dex Media Holdings Inc. | Other Companies

Major Players
(Market Share)

69.3%
Other

Dex Media Holdings Inc. 30.7%

SOURCE: WWW.IBISWORLD.COM

Player Performance Dex Media Holdings Inc. (DexYP) is the
most recent iteration of a longtime
directory publisher that has experienced
Dex Media Holdings several mergers in recent history. The
Inc. company was initially formed in 2002 to
Market Share: 30.7% acquire QwestDex, the directory publishing
arm of now-defunct telecom giant Qwest
Communications International. In 2013, it
acquired SuperMedia, the directory
publishing business formerly affiliated with
Verizon Communications. Most recently, it
merged in 2017 with most of the operations
of the Yellow Pages to become DexYP, the
sole major player in the industry.
In 2017, the most recent year for which
full financial data is available, DexYP
generated total revenue of $1.3 billion and
consisted of a workforce of about 2,800
sales employees. The company publishes
about 2,000 directory titles in 48 states,
with a circulation of about 116.0 million,
according to financial filings. Although the
company benefits from a prominent brand
in the Yellow Pages, it has shared in the
struggles of the overall industry,
experiencing sharp declines and frequently
operating at a loss over the past five years.
In 2016, the company filed for bankruptcy,
the company and its predecessors’ fifth
bankruptcy in a period of only seven years.
Although it emerged from bankruptcy
proceedings relatively quickly, its
underlying challenges of declining print
advertising and low consumer demand for
print phone books remain.
Financial performance
Over the five years to 2019, DexYP’s
industry-relevant revenue is expected to
increase at an annualized rate of 3.4% to
$2.1 billion. However, this overall
growth belies consistent declines in
organic revenue. The acquisition of YP
Holdings in 2017 boosted revenue over

Dex Media Holdings Inc. (US industry-specific segment) - financial

performance*
Revenue Operating Income
Year ($ million) (% change) ($ million) (% change)
2014 1,815.0 N/C -4.0 N/C
2015 1,500.3 -17.3 53.1 N/C
2016 1,909.9 27.3 -151.6 N/C
2017 1,318.2 -31.0 -171.8 N/C
2018 2,157.2 63.6 170.5 N/C
2019 2,144.8 -0.6 122.7 -28.0

*Estimates
SOURCE: ANNUAL REPORT AND IBISWORLD

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WWW.IBISWORLD.COM
Major Companies
Player Performance the following two years, including 63.6%
continued growth estimated in 2018. However, the
company’s industry-relevant revenue
has declined in each comparable year-
Other Companies There are no other significant players in
the Database and Directory Publishing
industry. The existing major company is
the amalgamation of several companies
with roots as divisions of telephone
services. When they entered the industry
as independent operators after being
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Database & Directory Publishing in the USMarch 2019   24
over-year period since 2014. Moreover,
the company has struggled with
profitability, operating at a loss through
much of the period.
spun off from these telecommunications
giants, they already had national
customer bases. The remainder of the
industry consists mostly of much smaller
businesses that publish directories and
databases in a geographic or business-
specialty niche.
WWW.IBISWORLD.COM Database & Directory Publishing in the USMarch 2019   25

Operating Conditions
Capital Intensity   |   Technology & Systems   |   Revenue Volatility
Regulation & Policy   |   Industry Assistance

Capital Intensity The Database and Directory Publishing

industry exhibits a medium level of Capital Intensity
Capital units per labor unit
capital intensity. Using wages as a proxy
Level
for labor and depreciation as a proxy for 0.5
The levelof capital capital, IBISWorld estimates that for
intensity is M
 edium every dollar spent on labor in the 0.4

industry, $0.16 is invested in capital. This 0.3

figure represents a slight increase from
an estimated $0.15 in 2014. Labor plays a 0.2

more significant role in selling 0.1

advertising space and organizing the
details of printing and publishing. Also, 0.0
Economy Information Database &
compiling, checking and updating Directory
Publishing
mailing list details tend to be more Dotted line shows a high level of capital intensity
labor-intensive tasks. However, as the SOURCE: WWW.IBISWORLD.COM

industry has cut labor costs over the past

five years amid weak demand, and as the increased relative to labor expenses over
industry has strived to digitize to the past five years, raising the industry’s
compete, capital investments have level of capital intensity.

Provided to: Edeska (2129455405) | 08 July 2019

WWW.IBISWORLD.COM
Operating Conditions
Technology and The directory publishing business is
Systems subject to changes arising from
developments in technology, which
Level influences information distribution
methods and user preferences. The use of
The level
of the internet and wireless devices by
technology change consumers as a way to transact commerce
is M
 edium is resulting in new technologies and
services that compete with industry
products and services. For example,
leading search companies like Google have
continued to develop a high stake in local
commercial search activities.
In the mailing list area, operators are
increasingly combining business and
marketing information with online
Revenue Volatility The Database and Directory Publishing
industry exhibits a moderate level of
revenue volatility. Industry revenue is
Level
directly linked to changes in advertising
The level
of volatility spending, advertiser preferences and
is M
 edium trends in online information retrieval.
Advertising spending in the United States
is sensitive to economic conditions such
as unemployment and consumer
spending, which have improved over the
five-year period.
The industry’s shift toward online
directories has exacerbated the volatility
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Database & Directory Publishing in the USMarch 2019   26
technology and other software. These
developments improve the ability of
clients to access and obtain information
for the compilation of mailing lists and
for sales and marketing leads. The
information can be provided in either
raw or custom form. Advances in
information technology and
fragmentation of the media, combined
with increasing amounts of raw data
and changing demographics, have
influenced the transition from
traditional mass media to targeted
one-to-one marketing. In particular,
the internet has emerged as an ideal
one-to-one marketing channel.
of its revenue. The growth of social media
platforms and ecommerce websites has
caused companies to allocate an
increasing proportion of their
advertisement expenditure to digital
mediums. While the leading industry
participants all offer digital solutions, this
line of business only accounts for a small
share of their total revenue. Moreover, the
online classified advertising and directory
market is even more crowded than the
printed directory market, making it
difficult for industry participants to obtain
WWW.IBISWORLD.COM
Operating Conditions
Revenue Volatility significant share of the online market.
continued Nevertheless, operators’ involvement in
internet directories and online
Regulation and Policy This industry is subject to a light but
increasing level of regulation as it is
affected by state public utilities
Level & Trend commission requirements, rules
 he level of
T stipulated by the Federal Communications
Regulation is L ight Commission (FCC), privacy regulations
and the trend and legislation. Pursuant to state public
utilities commission requirements,
is I ncreasing
telephone utilities must publish and
distribute white page directories of certain
residences and businesses that order or
receive a local telephone service.
Telephone companies often outsource the
publication and distribution of directories.
In March 2002, the FCC handed down
a decision that was intended to open up
competition in this industry. The FCC
attempted to establish a reasonable rate
for the purchase of business-listing entry
details by independent directory
companies from telecommunications
companies. The rate was capped at $0.06
per listing for updated details. In this
particular test case, telecommunications
companies were seeking to charge $0.65
per listing to independent directory
companies. The order also prohibits any
double recovery of costs (i.e. double
Industry Assistance The industry does not engage in
international trade and therefore, does
not receive direct assistance from the
Level & Trend government in the form of import tariffs.
 he level of
T However, publishers receive indirect
Industry Assistance assistance from trade organizations, such
is L owand the as the Local Search Association (LSA)
and the Association of Directory
trend is S teady
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Database & Directory Publishing in the USMarch 2019   27
advertising has partially offset the
declining revenue from print business
and telephone directories.
payment for the same costs) associated
with listings. The FCC has indicated that
while telecommunications companies can
charge more than these set rates, their
reasons must be justified and approved of
by the commission.
The industry is subject to federal and
state privacy laws that are becoming more
stringent. These include both limitations
on the improper disclosure of information,
the right to inspect information and the
right of consumers to forego disclosing
their personal information with third
parties. Another instance of tightened
regulation is a 2010 city ordinance in
Seattle that requires yellow page
publishers to pay a $0.14 fee on each
commercial phone book delivered in the
city. Publishers are subject to a $125.00
fine for delivering unwanted yellow pages
to residents or businesses and a $100.00
annual licensing fee. Although AT&T and
Dex One Corp. have filed lawsuits against
this ordinance on the grounds of free
speech, there is a growing dissatisfaction
from environmentalists and residents
across the country that do not want to
receive yellow pages.
Publishers (ADP). The LSA services the
industry by publishing industry research,
advocating for public policy issues on
behalf of the industry and holding annual
industry conferences. The ADP provides
a range of services, including protecting
publishers’ competitive rights and
advocating on behalf of the industry.
WWW.IBISWORLD.COM Database & Directory Publishing in the US March 2019   28

Key Statistics
Industry Data Industry Print advertising
Revenue Value Added Establish- Wages Domestic expenditure
($m) ($m) ments Enterprises Employment Exports Imports ($m) Demand ($b)
2010 14,236.4 4,197.3 6,106 5,380 45,954 -- -- 3,139.6 N/A 46.5
2011 13,052.2 3,725.1 5,404 4,815 39,378 -- -- 2,842.5 N/A 45.3
2012 11,541.0 3,133.9 4,631 4,165 33,520 -- -- 2,418.1 N/A 44.1
2013 9,274.0 2,803.2 4,118 3,738 29,645 -- -- 2,040.4 N/A 42.0
2014 9,465.4 2,652.7 3,885 3,549 27,669 -- -- 1,872.2 N/A 39.1
2015 8,936.5 2,541.4 3,368 3,118 24,750 -- -- 1,816.5 N/A 37.4
2016 8,366.3 1,570.4 3,001 2,808 17,521 -- -- 1,193.6 N/A 35.7
2017 7,951.8 1,605.2 2,814 2,663 16,948 -- -- 1,137.6 N/A 34.3
2018 7,143.6 1,471.7 2,692 2,577 15,330 -- -- 1,012.8 N/A 32.7
2019 6,980.0 1,409.3 2,555 2,443 14,700 -- -- 974.8 N/A 31.1
2020 6,738.4 1,350.7 2,417 2,309 13,866 -- -- 923.9 N/A 29.6
2021 6,546.4 1,294.0 2,276 2,171 13,211 -- -- 883.6 N/A 28.1
2022 6,380.9 1,239.6 2,155 2,053 12,541 -- -- 843.4 N/A 26.7
2023 6,246.4 1,197.2 2,023 1,922 12,026 -- -- 812.1 N/A 25.5
2024 6,055.5 1,140.8 1,905 1,808 11,381 -- -- 772.2 N/A 23.6
Sector Rank 31/37 31/37 22/37 13/37 30/37 N/A N/A 31/37 N/A N/A
Economy Rank 564/694 604/694 458/694 430/694 604/694 N/A N/A 570/694 N/A N/A

Annual Change Industry Establish- Domestic Print advertising

Revenue Value Added ments Enterprises Employment Exports Imports Wages Demand expenditure
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2011 -8.3 -11.3 -11.5 -10.5 -14.3 N/A N/A -9.5 N/A -2.6
2012 -11.6 -15.9 -14.3 -13.5 -14.9 N/A N/A -14.9 N/A -2.6
2013 -19.6 -10.6 -11.1 -10.3 -11.6 N/A N/A -15.6 N/A -4.7
2014 2.1 -5.4 -5.7 -5.1 -6.7 N/A N/A -8.2 N/A -6.9
2015 -5.6 -4.2 -13.3 -12.1 -10.5 N/A N/A -3.0 N/A -4.5
2016 -6.4 -38.2 -10.9 -9.9 -29.2 N/A N/A -34.3 N/A -4.4
2017 -5.0 2.2 -6.2 -5.2 -3.3 N/A N/A -4.7 N/A -3.9
2018 -10.2 -8.3 -4.3 -3.2 -9.5 N/A N/A -11.0 N/A -4.9
2019 -2.3 -4.2 -5.1 -5.2 -4.1 N/A N/A -3.8 N/A -4.9
2020 -3.5 -4.2 -5.4 -5.5 -5.7 N/A N/A -5.2 N/A -4.9
2021 -2.8 -4.2 -5.8 -6.0 -4.7 N/A N/A -4.4 N/A -4.9
2022 -2.5 -4.2 -5.3 -5.4 -5.1 N/A N/A -4.5 N/A -4.9
2023 -2.1 -3.4 -6.1 -6.4 -4.1 N/A N/A -3.7 N/A -4.7
2024 -3.1 -4.7 -5.8 -5.9 -5.4 N/A N/A -4.9 N/A -7.2
Sector Rank 33/37 34/37 37/37 37/37 35/37 N/A N/A 35/37 N/A N/A
Economy Rank 657/694 670/694 685/694 685/694 680/694 N/A N/A 673/694 N/A N/A

Key Ratios Imports/ Exports/ Revenue per Share of the

IVA/Revenue Demand Revenue Employee Wages/Revenue Employees Average Wage Economy
(%) (%) (%) ($’000) (%) per Est. ($) (%)
2010 29.48 N/A N/A 309.80 22.05 7.53 68,320.49 0.03
2011 28.54 N/A N/A 331.46 21.78 7.29 72,184.98 0.02
2012 27.15 N/A N/A 344.30 20.95 7.24 72,139.02 0.02
2013 30.23 N/A N/A 312.84 22.00 7.20 68,827.80 0.02
2014 28.03 N/A N/A 342.09 19.78 7.12 67,664.17 0.02
2015 28.44 N/A N/A 361.07 20.33 7.35 73,393.94 0.01
2016 18.77 N/A N/A 477.50 14.27 5.84 68,123.97 0.01
2017 20.19 N/A N/A 469.19 14.31 6.02 67,122.96 0.01
2018 20.60 N/A N/A 465.99 14.18 5.69 66,066.54 0.01
2019 20.19 N/A N/A 474.83 13.97 5.75 66,312.93 0.01
2020 20.04 N/A N/A 485.97 13.71 5.74 66,630.61 0.01
2021 19.77 N/A N/A 495.53 13.50 5.80 66,883.66 0.01
2022 19.43 N/A N/A 508.80 13.22 5.82 67,251.42 0.01
2023 19.17 N/A N/A 519.41 13.00 5.94 67,528.69 0.01
2024 18.84 N/A N/A 532.07 12.75 5.97 67,849.93 0.01
Sector Rank 36/37 N/A N/A 14/37 31/37 31/37 29/37 31/37
Economy Rank 502/694 N/A N/A 210/694 420/694 451/694 201/694 604/694

Figures are in inflation-adjusted 2019 dollars. Rank refers to 2019 data. SOURCE: WWW.IBISWORLD.COM

Provided to: Edeska (2129455405) | 08 July 2019

WWW.IBISWORLD.COM Database & Directory Publishing in the US March 2019   29

Industry Financial Ratios

Apr 2016 - Mar 2017 by company revenue
Apr 2013 - Apr 2014 - Apr 2015 - Apr 2016 - Small Medium Large
Mar 2014 Mar 2015 Mar 2016 Mar 2017 (<$10m) ($10-50m) (>$50m)

Liquidity Ratios
Current Ratio 1.5 1.7 1.4 1.3 1.4 1.4 1.1
Quick Ratio 1.0 1.0 1.0 0.9 0.9 0.9 0.9
Sales / Receivables (Trade Receivables
Turnover) 9.2 9.2 8.8 9.1 12.2 7.9 6.6
Days’ Receivables 39.7 39.7 41.5 40.1 29.9 46.2 55.3
Cost of Sales / Inventory (Inventory Turnover) 13.4 16.2 22.5 18.0 110.4 9.0 19.6
Days’ Inventory 27.2 22.5 16.2 20.3 3.3 40.6 18.6
Cost of Sales / Payables (Payables Turnover) 9.6 11.5 9.4 9.9 13.3 9.0 8.1
Days’ Payables 38.0 31.7 38.8 36.9 27.4 40.6 45.1
Sales / Working Capital 11.5 8.7 14.7 21.3 21.1 18.6 29.6

Coverage Ratios
Earnings Before Interest & Taxes (EBIT) /
Interest 3.9 4.9 5.5 4.7 4.9 2.7 5.4
Net Profit + Dep., Depletion, Amort. / Current
Maturities LT Debt 2.3 2.0 2.7 2.2 n/a 2.7 1.9

Leverage Ratios
Fixed Assets / Net Worth 0.5 0.4 0.5 0.4 0.2 0.3 12.4
Debt / Net Worth 2.4 2.1 2.3 3.1 2.5 1.5 -999.9
Tangible Net Worth 10.2 14.4 12.0 5.6 -4.0 25.3 -2.1

Operating Ratios
Profit before Taxes / Net Worth, % 14.4 17.1 18.5 20.4 26.5 14.0 28.0
Profit before Taxes / Total Assets, % 5.1 6.8 5.5 6.3 7.0 4.3 7.2
Sales / Net Fixed Assets 25.7 28.1 27.8 32.7 94.8 24.2 16.8
Sales / Total Assets (Asset Turnover) 1.6 1.6 1.7 1.8 2.4 1.6 1.3

Cash Flow & Debt Service Ratios (% of sales)

Cash from Trading 53.0 53.5 55.5 57.8 60.3 61.2 48.8
Cash after Operations 7.7 7.7 8.7 7.8 7.8 7.3 12.1
Net Cash after Operations 7.7 7.2 9.0 7.7 8.1 6.0 9.6
Cash after Debt Amortization 2.3 1.9 2.6 2.6 2.6 2.0 5.8
Debt Service P&I Coverage 2.4 3.8 2.6 3.5 3.8 3.6 3.2
Interest Coverage (Operating Cash) 5.8 8.0 7.9 9.4 6.9 13.1 10.7

Assets, %
Cash & Equivalents 14.1 15.5 15.6 15.7 19.5 14.4 10.5
Trade Receivables (net) 21.9 22.0 23.0 24.8 25.8 23.4 24.9
Inventory 14.1 15.3 11.5 13.9 14.4 16.8 9.4
All Other Current Assets 5.1 5.8 3.6 3.6 3.2 4.5 3.3
Total Current Assets 55.2 58.6 53.7 58.1 62.8 59.1 48.1
Fixed Assets (net) 15.4 13.3 14.3 12.3 10.9 14.6 12.1
Intangibles (net) 18.4 18.1 19.6 17.1 11.3 17.5 27.4
All Other Non-Current Assets 11.0 10.0 12.3 12.5 15.1 8.9 12.3
Total Assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total Assets ($m) 9,340.4 9,010.9 8,757.1 7,514.7 238.6 1,527.4 5,748.7

Liabilities, %
Notes Payable-Short Term 6.4 5.7 5.7 8.1 12.8 5.9 2.4
Current Maturities L/T/D 3.8 2.9 2.6 3.2 3.6 2.9 2.7
Trade Payables 11.9 11.2 12.0 13.8 14.1 13.8 13.3
Income Taxes Payable 0.3 0.2 0.4 0.4 0.1 0.3 1.0
All Other Current Liabilities 17.3 16.9 20.0 21.8 25.7 17.1 20.5
Total Current Liabilities 39.7 37.0 40.7 47.2 56.2 40.0 39.9
Long Term Debt 19.6 14.3 17.9 18.1 21.5 10.6 21.2
Deferred Taxes 0.6 0.5 0.4 0.4 n/a 0.6 0.7
All Other Non-Current Liabilities 11.6 15.7 9.4 11.6 14.9 5.9 12.9
Net Worth 28.6 32.5 31.6 22.7 7.3 42.8 25.3
Total Liabilities & Net Worth ($m) 9,340.4 9,010.9 8,757.1 7,514.7 238.6 1,527.4 5,748.7

Maximum Number of Statements Used 289 284 274 236 105 73 58

Source: RMA Annual Statement Studies, rmahq.org. RMA data for all industries is derived directly from more
than 260,000 statements of member financial institutions’ borrowers and prospects.
Note: For a full description of the ratios refer to the Key Statistics chapter online.

Provided to: Edeska (2129455405) | 08 July 2019

WWW.IBISWORLD.COM
Jargon & Glossary
Industry Jargon INDEPENDENT DIRECTORYA directory without ties to
a telephone operating company.
WHITE PAGESDirectories that alphabetically list the
names, addresses and phone numbers of residential,
professional and business phone customers.
IBISWorld Glossary BARRIERS TO ENTRYHigh barriers to entry mean that
new companies struggle to enter an industry, while low
barriers mean it is easy for new companies to enter an
industry.
CAPITAL INTENSITYCompares the amount of money
spent on capital (plant, machinery and equipment) with
that spent on labor. IBISWorld uses the ratio of
depreciation to wages as a proxy for capital intensity. High
capital intensity is more than $0.333 of capital to $1 of
labor; medium is $0.125 to $0.333 of capital to $1 of labor;
low is less than $0.125 of capital for every $1 of labor.
CONSTANT PRICESThe dollar figures in the Key Statistics
table, including forecasts, are adjusted for inflation using
the current year (i.e. year published) as the base year. This
removes the impact of changes in the purchasing power of
the dollar, leaving only the “real” growth or decline in
industry metrics. The inflation adjustments in IBISWorld’s
reports are made using the US Bureau of Economic
Analysis’ implicit GDP price deflator.
DOMESTIC DEMANDSpending on industry goods and
services within the United States, regardless of their
country of origin. It is derived by adding imports to
industry revenue, and then subtracting exports.
EMPLOYMENTThe number of permanent, part-time,
temporary and seasonal employees, working proprietors,
partners, managers and executives within the industry.
ENTERPRISEA division that is separately managed and
keeps management accounts. Each enterprise consists
of one or more establishments that are under common
ownership or control.
ESTABLISHMENTThe smallest type of accounting unit
within an enterprise, an establishment is a single
physical location where business is conducted or where
services or industrial operations are performed. Multiple
establishments under common control make up an
enterprise.
EXPORTSTotal value of industry goods and services sold
by US companies to customers abroad.
IMPORTSTotal value of industry goods and services
brought in from foreign countries to be sold in the
United States.
INDUSTRY CONCENTRATIONAn indicator of the
dominance of the top four players in an industry.
Concentration is considered high if the top players
account for more than 70% of industry revenue.
Medium is 40% to 70% of industry revenue. Low is less
than 40%.
Provided to: Edeska (2129455405) | 08 July 2019
Database & Directory Publishing in the USMarch 2019   30
YELLOW PAGESDirectories that list businesses
according to the product or service they provide.
INDUSTRY REVENUEThe total sales of industry goods
and services (exclusive of excise and sales tax); subsidies
on production; all other operating income from outside
the firm (such as commission income, repair and service
income, and rent, leasing and hiring income); and
capital work done by rental or lease. Receipts from
interest royalties, dividends and the sale of fixed
tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)The market value of
goods and services produced by the industry minus the
cost of goods and services used in production. IVA is
also described as the industry’s contribution to GDP, or
profit plus wages and depreciation.
INTERNATIONAL TRADEThe level of international
trade is determined by ratios of exports to revenue and
imports to domestic demand. For exports/revenue: low is
less than 5%, medium is 5% to 20%, and high is more
than 20%. Imports/domestic demand: low is less than
5%, medium is 5% to 35%, and high is more than
35%.
LIFE CYCLEAll industries go through periods of growth,
maturity and decline. IBISWorld determines an
industry’s life cycle by considering its growth rate
(measured by IVA) compared with GDP; the growth rate
of the number of establishments; the amount of change
the industry’s products are undergoing; the rate of
technological change; and the level of customer
acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENTBusinesses with
no paid employment or payroll, also known as
nonemployers. These are mostly set up by self-employed
individuals.
PROFITIBISWorld uses earnings before interest and tax
(EBIT) as an indicator of a company’s profitability. It is
calculated as revenue minus expenses, excluding
interest and tax.
VOLATILITYThe level of volatility is determined by
averaging the absolute change in revenue in each of the
past five years. Volatility levels: very high is more than
±20%; high volatility is ±10% to ±20%; moderate
volatility is ±3% to ±10%; and low volatility is less than
±3%.
WAGESThe gross total wages and salaries of all
employees in the industry. The cost of benefits is also
included in this figure.
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