-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IpqIYx5yTf/tZ97gHXW9Thek5c8HBpR5z5zVstbWG172jTep6cSEawctnhgrDcG3 5FlQHifBN1/IHxMe6+v5mw== 0000950134-01-500556.txt : 20010421 0000950134-01-500556.hdr.sgml : 20010421 ACCESSION NUMBER: 0000950134-01-500556 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010416 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010419 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INFOUSA INC CENTRAL INDEX KEY: 0000879437 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-DIRECT MAIL ADVERTISING SERVICES [7331] IRS NUMBER: 470751545 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-19598 FILM NUMBER: 1606633 BUSINESS ADDRESS: STREET 1: 5711 S 86TH CIRCLE CITY: OMAHA STATE: NE ZIP: 68127 BUSINESS PHONE: 4025934500 MAIL ADDRESS: STREET 1: 5711 SOUTH 86TH CIRCLE CITY: OMAHA STATE: NE ZIP: 68127 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN BUSINESS INFORMATION INC /DE DATE OF NAME CHANGE: 19930328 8-K 1 d86324e8-k.txt FORM 8-K DATED APRIL 16, 2001 1 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): APRIL 16, 2001 ---------- infoUSA INC. (Exact name of registrant as specified in its charter) DELAWARE (State or other jurisdiction of incorporation) 0-19598 47-0751545 (Commission File Number) (IRS Employer Identification No.) 5711 SOUTH 86TH CIRCLE, OMAHA, NEBRASKA 68127 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (402) 593-4500 N/A (Former name or former address, if changed since last report) ================================================================================ 2 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. c. EXHIBITS EXHIBIT NO. DESCRIPTION 99.1 Press Release dated April 16, 2001 99.2 Supplemental Information dated April 16, 2001 ITEM 9. REGULATION FD DISCLOSURE] On April 16, 2001, infoUSA Inc. issued the news release attached hereto as Exhibit 99.1 and the supplemental information attached hereto as Exhibit 99.2. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. infoUSA INC. (Registrant) Date: April 18, 2001 By: /s/ STORMY DEAN ------------------------------ Name: Stormy Dean Title: Chief Financial Officer 3 INDEX TO EXHIBITS
EXHIBIT NUMBER DESCRIPTION ------- ----------- 99.1 Press Release dated April 16, 2001 99.2 Supplemental Information dated April 16, 2001
EX-99.1 2 d86324ex99-1.txt PRESS RELEASE 1 EXHIBIT 99.1 [infoUSA LETTERHEAD] infoUSA REPORTS RECORD EBITDA FOR FIRST QUARTER 2001 (OMAHA, NE) -- infoUSA(R) (Nasdaq: IUSA) today announced its operating results for the first quarter of fiscal year 2001. The following table presents the financial results, key financial highlights of the company's operations and selected balance sheet items for the first quarter of fiscal year 2001:
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 1Q00 1Q01 Net sales 81,521 73,853 -------- -------- EBITDA, as adjusted (1) 18,594 25,205 EBITDA margin 23% 34% Operating pretax earnings (2) 14,395 20,256 Net income (loss) (11,560) 1,854 -------- -------- EPS - fully diluted $ (0.23) $ 0.04 EPS - cash basis, fully diluted (3) $ (0.07) $ 0.19 -------- -------- Non-cash stock compensation expense 1,222 77 Restructuring costs -- 876 Acquisition costs 1,380 -- Gain on issuance of subsidiary stock 2,429 -- Cumulative effect of accounting changes (10,266) -- Loss on discontinued operations (1,004) -- Depreciation and amortization of operating assets 4,199 4,949 Goodwill amortization 7,959 7,784 Interest expense 6,784 6,914 Total debt 261,519 248,736 Capital expenditures 7,877 1,835 -------- -------- Number of basic shares outstanding 49,610 50,609 Number of diluted shares outstanding 49,610 50,609 -------- -------- Accounts receivable (DSO) - without Walter Karl (4) 71 64 -------- --------
(1) EBITDA excluding non-cash stock compensation expense, restructuring costs and acquisition costs, and including losses for Internet operations in 2000. (2) Excluding non-cash stock compensation expense, restructuring costs, acquisition costs and goodwill amortization, and including losses for Internet operations in 2000. (3) Net income (loss) plus goodwill amortization (per share) (4) Walter Karl is a list broker. Trade accounts receivable and trade accounts payable are reflected at gross on the balance sheet. 2 RESULTS OF OPERATIONS Vin Gupta, Chairman and CEO, infoUSA, said, "Our results for the first quarter of 2001 represent a return to the earnings and profitability we have historically experienced in our core business. The fact that we achieved these results during the most severe U.S. economic slowdown in a decade is extremely encouraging. While our revenues of $73.9 million were below first quarter revenues of $81.5 million in 2000, they increased over fourth quarter 2000 revenues of $70.4 million. We closed several deals with new customers in all of our divisions. This is significant in that we signed new business at a time when many of our customers and prospects were curtailing or postponing orders due to the weakened economy." Gupta continued, "We are very pleased with the results of our cost cutting, which enabled the company to reach record EBITDA of $25.2 million and restore profitability to historical levels, with EBITDA margins in excess of 34%. Going forward, we remain confident that we can continue to benefit from strong cash flow and expense control." HIGHLIGHTS OF FIRST QUARTER: infoUSA INC. - CONSOLIDATED Net sales for the first quarter were $73.9 million compared to $70.4 million for the fourth quarter of 2000 and $81.5 million for the first quarter of 2000. EBITDA, as adjusted, for the first quarter was $25.2 million, or 34% of net sales, compared to $18.6 million, or 23% of net sales, for Q1 last year. EBITDA for the core business (excluding the Internet companies) was $25.0 million, or 35% of net sales, for the first quarter compared to $24.8 million, or 30% of net sales, for Q1 last year. First quarter earnings per share was $0.04 compared to loss per share of $0.23 last year. First quarter EPS on a cash basis was $0.19 compared to a loss of $0.07 last year. During the first quarter of 2001, the company recorded restructuring charges of $0.9 million, reflecting severance for approximately 150 employees terminated during January 2001. This staffing reduction was in addition to the approximately 350 employees terminated during December 2000. infoUSA.com - a majority-owned subsidiary of the company, reported revenue of $5.0 million for the first quarter of 2001 compared to $4.9 million last year. During the first quarter the subsidiary recorded EBITDA, as adjusted, of $0.2 million, compared to an EBITDA, as adjusted, loss of $2.6 million for Q1 last year. OPERATING HIGHLIGHTS PROPRIETARY DATABASE COMPILATION DEPARTMENT During the first quarter of 2001 the company continued to enhance both its consumer and business databases. Most recently, infoUSA introduced e-ShareForce(TM), its new proprietary vertical market business and consumer response files. The company has rolled out over 20 new specialty databases, and plans to introduce several more over the next quarter. Several of these new databases contain e-mail address information. Some of the databases rolled out include Hi-tech Households; Households by lifestyle interests; Mail-order and Internet buyers; Investors; Professionals; Female professionals; Executive emails; New businesses; Home based businesses; Business Websites with firmographics; Ethnic executives; Growing businesses; and New Homeowners. e-ShareForce(TM) expands the company's ShareForce(TM) brand leadership in combining self reported information from mail surveys with data from millions of self-reported telephone and Internet surveys and its traditional compiled databases. This strategy combines very rich compiled information with response information, including emails, and translates it into highly targeted and segmented lists. In addition to providing unique information, the addition of emails to e-ShareForce(TM) products enable marketers to test offers to various prospect segments online, and rollout comprehensive direct mail campaigns based on the response from these low cost and quick turnaround campaigns. 3 Also during the first quarter, the database group developed a new service to be offered as part of the e-ShareForce(TM) suite of products. This service, called infoResponse, offers infoUSA clients custom Internet survey collection data that is "tailor-made" to each clients needs and specifications. This service provides unique and targeted leads that are unavailable through traditional information companies. For example, a well known pharmaceutical company is using infoResponse to target allergy sufferers and a large casino uses the service to get information on individual gaming preferences. This service is receiving strong demand by several Fortune 100 companies. LARGE CUSTOMER GROUP - DONNELLEY MARKETING AND WALTER KARL The Large Customer group reported first quarter 2001 revenues of $27.3 million versus $27.6 million for fourth quarter 2000 and $29.9 million for the first quarter of the prior year. Despite softer customer demand due to the macroeconomic downturn and the adverse impact on its customers from the postal rate increase, the group has been able to increase its profitability. This is due to favorable changes in its business mix, including the addition of new customers in the financial, telecommunications and direct marketing industry that purchased higher margin core content and processing services. The group also benefited from the cost containment programs implemented during the past two quarters. Although Donnelley Marketing experienced weaker demand from existing customers during the quarter, it successfully added several new infoConnect(TM) customers from firms in the packaged goods, cable, and high-tech industries. infoConnect(TM) is Donnelley's leading e-CRM and data integration solution, containing all of the "Abilitec" features and functions. Going forward, the group will continue to focus on profitable revenue growth and client acquisition by emphasizing its innovative new products and superior customer service. SMALL BUSINESS GROUP The Small Business Group reported revenues of $30.9 million for the first quarter of 2001, versus $29.2 million for fourth quarter 2000 and $33.2 million for the first quarter of 2000. Last year's revenue included a $1 million nonrecurring sale of consumer data to the United States Census Bureau for Census 2000. The Small Business Group experienced double digit revenue growth and increased profitability during the first quarter 2001 from several of its vertical market groups. These include the Middle Market, Library, infoCanada operations and American Church List divisions. In addition, revenues for the group's Internet divisions, ListBazaar.com and businessCreditUSA.com, increased sharply, and both sites were highly profitable. Field Sales offices, which provide consultative sales solutions to small businesses, increased revenue by 15% to $3.1 million, and the company believes this market has continued high growth potential. Revenues from the Reseller group were particularly weak for the first quarter of 2001. Resellers, which function as "middlemen" between infoUSA and ultimate consumers, were most adversely affected by the economic downturn during the first quarter. infoUSA is addressing this situation by offering more favorable terms to their reseller customers, and believes sales to this group will rebound as the economy recovers. DATABASE LICENSES (NON-INTERNET) The Database License group recorded revenues during the first quarter of $7.6 million, up from $6.9 million in the fourth quarter and versus $8.6 million in the first quarter of 2000. The decrease is attributable to the loss of one licensee due to its acquisition by another company, and to the change in timing and terms of certain annual license renewals. During the quarter the group signed two new contracts with wireless mapping and electronic in-car navigation companies. The group also benefited from the expansion of existing contract revenues and three new site licenses with data processing service bureaus in the direct marketing industry. 4 infoUSA.com During the first quarter, infoUSA.com renewed and expanded its multi-year contract with Microsoft to be the exclusive source of yellow page data on MSN. At the end of the quarter the company signed a comprehensive long term licensing agreement with AOL, encompassing a wide range of infoUSA's yellow and white page information, as well as proprietary vertical market and multimedia data. Additionally, infoUSA.com has most recently signed two new deals with Vindigo and OmniSky in the mobile device and wireless markets. Under the new agreement with Vindigo, mobile device users will be able to access local guides containing infoUSA data on shopping and other value-added location based information. As per the new agreement with OmniSky, users of Palm, Handspring and other mobile devices will be able to access infoUSA.com's database of 14 million businesses. The company believes that the strength of these recent deals indicates a continuing high level of demand by leading technology companies for its top quality proprietary data. CONFERENCE CALL The company will host its first quarter conference call on Monday, April 16, 2001, at 3PM Eastern Time. To access the conference call, please dial 719/ 457-2617, passcode # 785235, approximately 10 minutes prior to the start of the call. A replay of the call will be available from 7:00 PM Eastern time, April 16, through midnight, Eastern time, April 22. The replay number is 719/457-0820, passcode # 785235. ABOUT infoUSA infoUSA (www.infoUSA.com), founded in 1972, is the leading provider of business and consumer information products, database marketing services, data processing services and sales and marketing solutions. Content is the essential ingredient in every marketing program, and infoUSA has the most comprehensive data in the industry, and is the only company to own a proprietary database of 250 million consumers and 14 million businesses under one roof. The infoUSA database powers the directory services of the top Internet traffic-generating sites, including Yahoo! (Nasdaq:YHOO - news) and Microsoft (Nasdaq:MSFT - news). Nearly 3 million customers use infoUSA's products and services to find new customers, grow their sales, and for other direct marketing, telemarketing, customer analysis and credit reference purposes. infoUSA headquarters are located at 5711 S. 86th Circle, Omaha, NE 68127 and can be contacted at (402) 593-4500. Statements in this announcement other than historical data and information constitute forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, but are not limited to, recent changes in senior management, the successful integration of recent and future acquisitions, fluctuations in operating results, failure to successfully carry out our Internet strategy or to grow our Internet revenue, effects of leverage, changes in technology and increased competition. More information about potential factors that could affect the company's business and financial results is included in the company's filings with the Securities and Exchange Commission. INCOME STATEMENT FOLLOWS 5 infoUSA INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
FOR THE QUARTERS ENDED ------------------------ MARCH 31, MARCH 31, 2000 2001 ---------- ---------- (UNAUDITED) Net sales $ 81,521 $ 73,853 Costs and expenses: Database and production costs 25,683 21,387 Selling, general and administrative 37,244 27,261 Depreciation and amortization of software development costs 4,199 4,949 Non-cash stock compensation expense 1,222 77 Restructuring costs -- 876 Acquisition costs 1,380 -- ---------- ---------- 69,728 54,550 ---------- ---------- Operating income 11,793 19,303 Other income (expense): Investment income 204 245 Gain on sale of subsidiary stock 2,429 -- Minority interest in subsidiary 274 (60) Interest expense (6,784) (6,914) ---------- ---------- Income (loss) from continuing operations before income taxes, extraordinary item and cumulative effect of change in accounting principle (43) 4,790 Income taxes 247 2,936 ---------- ---------- Income (loss) from continuing operations before extraordinary item and cumulative effect of change in accounting principle (290) 1,854 Discontinued operations, net of tax (1,004) -- Cumulative effect of accounting change, net of tax (10,266) -- ---------- ---------- Net income (loss) $ (11,560) $ 1,854 ========== ========== DILUTED EARNINGS PER SHARE: Income (loss) from continuing operations $ (0.01) $ 0.04 Discontinued operations and cumulative effect of change in accounting principle (0.22) -- ---------- ---------- Diluted earnings (loss) per share $ (0.23) $ 0.04 ========== ========== Cash earnings per share $ (0.07) $ 0.19 Weighted average shares outstanding 49,610 50,609 ========== ========== EBITDA, as adjusted $ 18,594 $ 25,205 ========== ==========
EX-99.2 3 d86324ex99-2.txt SUPPLEMENTAL INFORMATION DATED APRIL 16,2001 1 EXHIBIT 99.2 [infoUSA LETTERHEAD] TO infoUSA INVESTORS AND ANALYSTS: The following "Consolidated Statement of Operations" contains supplementary information. It clarifies the previous consolidated statement of operations, which was included in the company's First Quarter 2001 press release, dated April 16, 2001. The following statement provides additional detail on the company's goodwill amortization and basic earnings per share. This information is being provided for clarification purposes only - none of the reported numbers have been changed or restated. 2 INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
FOR THE QUARTERS ENDED ------------------------ MARCH 31, MARCH 31, 2000 2001 ---------- ---------- (UNAUDITED) Net sales $ 81,521 $ 73,853 Costs and expenses: Database and production costs 25,683 21,387 Selling, general and administrative 37,244 27,261 Depreciation and amortization of software development costs 4,199 4,949 Amortization of goodwill 7,959 7,784 Non-cash stock compensation expense 1,222 77 Restructuring costs -- 876 Acquisition costs 1,380 -- ---------- ---------- 77,687 62,334 ---------- ---------- Operating income including goodwill amortization 3,834 11,519 Operating income excluding goodwill amortization 11,793 19,303 Other income (expense): Investment income 204 245 Gain on sale of subsidiary stock 2,429 -- Minority interest in subsidiary 274 (60) Interest expense (6,784) (6,914) ---------- ---------- Income (loss) from continuing operations before income taxes, extraordinary item and cumulative effect of change in accounting principle (43) 4,790 Income taxes 247 2,936 ---------- ---------- Income (loss) from continuing operations before extraordinary item and cumulative effect of change in accounting principle (290) 1,854 Discontinued operations, net of tax (1,004) -- Cumulative effect of accounting change, net of tax (10,266) -- ---------- ---------- Net income (loss) $ (11,560) $ 1,854 ========== ========== BASIC & DILUTED EARNINGS PER SHARE: Income (loss) from continuing operations $ (0.01) $ 0.04 Discontinued operations and cumulative effect of change in accounting principle (0.22) -- ---------- ---------- Earnings (loss) per share $ (0.23) $ 0.04 ========== ========== Basic weighted average shares outstanding 49,610 50,609 ========== ========== Diluted weighted average shares outstanding 49,610 50,609 ========== ========== Cash basis earnings per share, fully diluted $ (0.07) $ 0.19 ========== ========== EBITDA, as adjusted $ 18,594 $ 25,205 ========== ==========
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