8-K

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): July 18, 2005

infoUSA Inc.

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation)

0-19598 (Commission File Number)	47-0751545 (I.R.S. Employer Identification No.)
5711 South 86th Circle Omaha, Nebraska (Address of Principal Executive Offices)	68127 (Zip Code)

(402) 593-4500
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

     The following information is being furnished pursuant to Item 2.02 of Form 8-K. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

     On July 18, 2005, infoUSA Inc. (the “Company”) issued a press release providing results of operations for the second quarter and first half of fiscal year 2005 ended June 30, 2005. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

     The Company hosted its second quarter conference call on July 19, 2005. A replay of the call is available through midnight Eastern Time, July 26, 2005. The replay number is 888/286-8010, passcode #13307222. A webcast of the conference call is available at the Company’s Investor Relations web site, http://ir.infousa.com.

     The attached press release includes certain financial information that has been determined by methods other than in accordance with GAAP. These non-GAAP financial measures are “EBITDA,” “capital expenditures” and “free cash flow.” Such measures are not measures of financial performance or liquidity under GAAP and should not be considered as alternatives to the comparable GAAP measures for the applicable period. The Company has presented reconciling information for each of the above non-GAAP financial measures in the press release. The Company uses these non-GAAP financial measures in its analysis of the Company’s performance.

• “EBITDA” is defined as net income before interest expense, income taxes, depreciation and amortization of operating assets, and amortization of intangible assets. The Company’s management utilizes this measure as a key financial measure in the analysis of its financial performance, as it does with similar GAAP financial measures including operating income and cash flows from operations. The Company’s Credit Facility provides for financial covenants that are based on EBITDA, as adjusted. Additionally, the Company has historically had a significant amount of recorded goodwill and purchased intangibles resulting from the acquisition of other companies, and the amount of non-cash amortization expense associated with these acquisitions has varied significantly between reporting periods. The Company’s calculation of EBITDA is defined by footnote in the accompanying financial data table.

• “Free cash flow” is defined as cash flow from operations minus capital expenditures. “Capital expenditures” consists of the sum of purchases of property and equipment and capitalized software and database development costs as reported on the Company’s consolidated cash flows statement. The Company’s management utilizes these measures as a key financial measure in the analysis of its financial performance, as it does with similar GAAP financial measures including operating income and cash flows from operations.

2

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits. The following exhibits are furnished herewith:

Exhibit 99.1 Press Release dated July 18, 2005

SIGNATURES

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, thereunto duly authorized.

	infoUSA, Inc. (Registrant)
Date: July 19, 2005	By:	/s/ RAJ DAS
		Raj Das,
		Chief Financial Officer

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release dated July 18, 2005

EX-99.1

EXHIBIT 99.1 — Press release dated July 18, 2005

	5711 S 86TH CIR • PO BOX 27347 • Omaha NE 68127-0347 Executive Office: (402) 596-8900 • Fax (402) 592-4006 Internet: www.infoUSA.com   FOR IMMEDIATE RELEASE
	July 18, 2005
	CONTACT:
	VIN GUPTA — CHAIRMAN & CHIEF EXECUTIVE OFFICER
	Phone: (402) 596-8900 · Fax: (402) 339-0265
	E-Mail: vin.gupta@infousa.com
	RAJ DAS — CHIEF FINANCIAL OFFICER
	Phone: (402) 593-4517 · Fax: (402) 339-0265
	E-Mail: raj.das@infousa.com
	LAUREL GUPTA — DIRECTOR, INVESTOR RELATIONS
	Phone: (402) 593-4535 · Fax: (402) 339-0265
	E-Mail: laurel.gupta@infousa.com

infoUSA Reports Financial Results for Q2 2005

• GAAP Revenue of $93.7 Million, up 12% from last year

• EBITDA of $20.7 Million, a 4% margin improvement over last year

• GAAP EPS of 12 cents, up 71% from last year

• Confirms previously revised revenue and EPS guidance for fiscal 2005

(OMAHA, NE) — infoUSA^Ò (Nasdaq: IUSA). The following table presents the financial results, key financial highlights of the company’s operations, and selected balance sheet items for the second quarter and first half of fiscal year 2005 ending on June 30, 2005.

	2nd Quarter		2nd Quarter			Year-to-date		Year-to-date
(amounts in thousands, except per share amounts)	2004		2005			2004		2005
Net sales	$	83,794	$	93,736	*	$	164,605	$	188,831	**
EBITDA (see table on income statement)		14,924		20,699	*		30,952		45,920	**
Operating income		10,070		11,790	*		19,281		27,379	**
Net income		3,712		6,356	*		8,085		15,414	**
Diluted earnings per share	7 cents		12 cents*			15 cents		29 cents**

5

	2nd Quarter		2nd Quarter		Year-to-date		Year-to-date
(amounts in thousands, except per share amounts)	2004		2005		2004		2005
Total debt		236,149		191,682		236,149		191,682
Capital expenditures (see table)		1,420		3,966		3,523		5,922
Cash flow from operations		10,073		22,455		26,216		33,200

*	These figures were negatively impacted by approximately $1.9 million related to the acquisition accounting impact related to OneSource revenue and conversion of a portion of infoUSA Group business to subscription format.
**	These figures were negatively impacted by approximately $4.9 million related to the acquisition accounting impact related to OneSource revenue and conversion of a portion of infoUSA Group business to subscription format.

RESULTS OF OPERATIONS

Vin Gupta, Chairman and CEO, infoUSA, said, “During second quarter of 2005, we achieved revenue of $93.7 million, up 12% from last year. We were able to grow our revenue through: (i) continuing progress in the sale of our subscription products and (ii) solid results from our recent acquisitions.”

Gupta continued, “Our second quarter reported EBITDA was $20.7 million or 22% of revenue. This represents a 4% margin improvement over last year’s second quarter results. Reported revenue and EBITDA were negatively impacted by approximately $1.9 million as follows: (i) non-recognizable deferred revenue from the OneSource acquisition of $0.4 million and (ii) deferral of approximately $1.5 million of revenues from accounting for our subscription product revenue. Cash flow from operations for fiscal second quarter was $22.5 million; free cash flow (cash flow from operations less capital expenditures) for fiscal second quarter was $18.5 million. Our GAAP earnings per share for second quarter were 12 cents.”

Gupta added, “Our revenue for first half of fiscal 2005 was $188.8 million, up 15% from last year. Our first half of the year reported EBITDA was $45.9 million or 24% of revenue. This represents a 5% margin improvement over last year’s comparable period results. Cash flow from operations for the first half of fiscal 2005 was $33.2 million; free cash flow for the same period was $27.3 million. Our GAAP earnings per share for the first half of 2005 were 29 cents.”

Gupta added, “We were pleased with the performance of our subscription products during the first half of this year. Our roll-out of subscription products is very encouraging, and is gaining acceptance among small businesses, entrepreneurs, and sales people. We were successful in growing our subscription base while keeping our cancellation rates below 10%. Our strategy of migrating small business customers from one-time purchasers of sales leads to a subscription based service will be a gradual process but a key growth driver for infoUSA.”

Gupta concluded, “We continue to build a pipeline of business company-wide, as evidenced by our deferred revenue of $55.0 million on the balance sheet as of June 30, 2005. In addition, we had an incremental $54 to 56 million of future billings at the end of the fiscal second quarter, which represent future invoicing to our customers with signed contracts. This combination of a solid pipeline and billings indicates growing demand for our products.”

2

The company is reconfirming its previously revised guidance for fiscal 2005. The guidance is as follows: (i) GAAP revenue of $370 to $380 million; (ii) EBITDA of $92 to $96 million; (iii) GAAP earnings per share of $0.59 to $0.63; and (iv) free cash flow of $63 to $67 million.

Conference Call

The company will host its second quarter conference call on July 19^th, at 11:00 AM Eastern time. To access the conference call, please dial 800/688-0836, passcode #26603005, approximately 10 minutes prior to the start of the call. A replay of the call will be available from 1:00 PM Eastern time, July 19^th, through midnight Eastern Time, July 26^th. The replay number is 888/286-8010, passcode #13307222. A live webcast of the conference call will be available at the company’s Investor Relations web site, http://ir.infousa.com.

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. 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)

3

infoUSA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

							FOR THE SIX
	FOR THE QUARTER ENDED						MONTHS ENDED
	June 30, 2004			June 30, 2005			June 30, 2004			June 30, 2005
	(unaudited)
Net sales	$	83,794		$	93,736		$	164,605		$	188,831
Costs and expenses:
Database and production costs		24,823			26,945			48,684			52,973
Selling, general and administrative		40,021			46,123			80,200			90,521
Depreciation and amortization of operating assets		3,560			3,366			6,874			7,274
Amortization of intangible assets		3,616			4,469			7,062			8,873
Non-cash stock compensation		458			0			640			(289	)
Restructuring costs		1,007			917			1,622			1,620
Litigation settlement charge		0			126			0			126
Acquisition costs		239			0			242			354
		73,724			81,946			145,324			161,452
Operating income		10,070			11,790			19,281			27,379
Other income (expense):
Investment income (loss)		(243	)		1,074			(42	)		2,394
Other charges		(2,079	)		0			(2,223	)		0
Interest expense		(1,761	)		(2,979	)		(3,975	)		(5,718	)
Income before income taxes		5,987			9,885			13,041			24,055
Income taxes		2,275			3,529			4,956			8,641
Net income	$	3,712		$	6,356		$	8,085		$	15,414
BASIC & DILUTED EARNINGS PER SHARE:
Basic earnings per share	$	0.07		$	0.12		$	0.15		$	0.29
Diluted earnings per share	$	0.07		$	0.12		$	0.15		$	0.29
Basic weighted average shares outstanding		52,540			54,021			52,440			53,859
Diluted weighted average shares outstanding		53,106			54,052			53,030			53,961

     The following provides a reconciliation of net income to EBITDA:

	FOR THE QUARTER				FOR THE SIX
	ENDED				MONTHS ENDED
	June 30, 2004		June 30, 2005		June 30, 2004		June 30, 2005
Net income	$	3,712	$	6,356	$	8,085	$	15,414
Interest expense		1,761		2,979		3,975		5,718
Income taxes		2,275		3,529		4,956		8,641
Depreciation and amortization of operating assets		3,560		3,366		6,874		7,274
Amortization of intangible assets		3,616		4,469		7,062		8,873
EBITDA	$	14,924	$	20,699	$	30,952	$	45,920

4

     The following provides a schedule of Capital Expenditures:

	FOR THE QUARTER				FOR THE SIX
	ENDED				MONTHS ENDED
	June 30, 2004		June 30, 2005		June 30, 2004		June 30, 2005
Purchases of Property of Equipment	$	840	$	1,883	$	2,491	$	3,044
Software and Database Development Costs		580		2,083		1,032		2,878
Capital Expenditures	$	1,420	$	3,966	$	3,523	$	5,922

     The following provides a reconciliation of Cash Flow from Operations to Free Cash Flow:

	FOR THE QUARTER						FOR THE SIX
	ENDED						MONTHS ENDED
	June 30, 2004			June 30, 2005			June 30, 2004			June 30, 2005
Cash Flow from Operations	$	10,073		$	22,455		$	26,216		$	33,200
Less:
Capital Expenditures		(1,420	)		(3,966	)		(3,523	)		(5,922	)
Free Cash Flow	$	8,653		$	18,489		$	22,693		$	27,278

infoUSA INC. AND SUBSIDIARIES
Selected Balance Sheet Amounts
(In thousands, except per share amounts)

The following table presents selected balance sheet account information as of June 30 2005, compared to December 31, 2004.

	December 31,		June 30,
(amounts in thousands)	2004		2005
Assets
Cash and Cash Equivalents	$	10,404	$	8,714
Accounts Receivable		51,707		43,913
Accounts Receivable-List Brokerage		19,635		22,222
Deferred Marketing Costs		2,632		3,538
Property and Equipment, net		42,537		46,225
Intangible Assets, net		365,286		362,499
Liabilities
Accounts Payable		21,268		16,963
Accounts Payable-List Brokerage		15,427		17,660
Accrued Payroll Expenses		15,917		20,171
Accrued Expenses		7,028		5,009
Deferred Revenue		53,034		55,000
Total Debt		196,226		191,682

5