EX-99.1 2 d27125exv99w1.htm PRESS RELEASE exv99w1
 

EXHIBIT 99.1 — Press release dated July 18, 2005

     
(infoUSA LOGO)
  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) — infoUSAÒ (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**  
 

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        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.”

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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 19th, 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 19th, through midnight Eastern Time, July 26th. 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)

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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  
 
                       

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     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    
 

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