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): October 25, 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	68127
(Address of Principal Executive Offices)	(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))

TABLE OF CONTENTS

Press Release

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 October 25, 2005, infoUSA Inc. (the “Company”) issued a press release providing results of operations for the third quarter and nine months ended September 30, 2005. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

     The Company hosted its third quarter conference call on October 26, 2005. A replay of the call is available through midnight Eastern Time, November 2, 2005. The replay number is 888/286-8010, passcode #53181384. 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.

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ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits. The following exhibit is furnished herewith:

      Exhibit 99.1     Press Release dated October 25, 2005

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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: October 27, 2005	By:	/s/ RAJ DAS
		Raj Das
		Chief Financial Officer

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EXHIBIT INDEX

Exhibit 99.1     Press Release dated October 25, 2005

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EX-99.1

EXHIBIT 99.1 – Press release dated October 25, 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 October 25, 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 Q3 2005

• GAAP Revenue of $95.5 Million, up 6% from last year

• EBITDA of $23.0 Million, 24% margin

• GAAP EPS of 15 cents, up 50% from last year

• Confirms previous 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 third quarter and first nine months of fiscal year 2005 ending on September 30, 2005.

	3rd Quarter			3rd Quarter			Year-to-date			Year-to-date
(amounts in thousands, except per share amounts)	2004			2005			2004			2005
Net sales	$	90,172		$	95,536		$	254,777		$	284,367
EBITDA (see table on income statement)		18,515			22,983			49,467			68,903
Operating income		10,760			15,214			30,041			42,593
Net income		5,045			8,089			13,130			23,503
Diluted earnings per share		10	cents		15	cents		25	cents		44	cents
Total debt		220,598			178,278			220,598			178,278
Capital expenditures (see table)		2,092			2,319			5,615			8,241
Cash flow from operations		19,575			12,978			45,791			46,179

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RESULTS OF OPERATIONS

Vin Gupta, Chairman and CEO, infoUSA, said, “During third quarter of 2005, we achieved revenue of $95.5 million, up 6% from last year.”

Gupta continued, “Our third quarter reported EBITDA was $23.0 million or 24% of revenue. This represents a 4% margin improvement over last year’s third quarter results. Cash flow from operations for fiscal third quarter was $13.0 million. Our GAAP earnings per share for third quarter were 15 cents.”

Gupta added, “Our revenue for first nine months of fiscal 2005 was $284.4 million, up 12% from last year. Our reported EBITDA during the same period was $68.9 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 nine months of fiscal 2005 was $46.2 million. Our GAAP earnings per share for the first nine months of 2005 were 44 cents.”

Gupta added, “We were pleased with the performance of our subscription products during the first nine months of this year. By converting our small business customers to subscription, we are creating a recurring revenue stream. This conversion to subscriptions will continue to be our key focus and growth strategy for the foreseeable future.”

Gupta concluded, “We continue to maintain our sales pipeline, as evidenced by our deferred revenue of $51.5 million on the balance sheet as of September 30, 2005. In addition, we had an incremental $63 to $64 million of future billings at the end of the fiscal third quarter, which represent future invoicing to our customers with signed contracts.”

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

Conference Call

The company will host its third quarter conference call on October 26^th, at 12:00 noon Eastern time. To access the conference call, please dial 866/770-7120, passcode #26615793, approximately 10 minutes prior to the start of the call. A replay of the call will be available from 2:00 PM Eastern time, October 26^th, through midnight Eastern Time, November 2^nd. The replay number is 888/286-8010, passcode #53181384. A live webcast of the conference call will be available at the company’s Investor Relations web site, http://ir.infousa.com.

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About infoUSA

infoUSA (www.infoUSA.com), founded in 1972, is the leading provider of business and consumer databases to businesses so they can find more prospects and increase their sales. It is the only company to own 12 proprietary databases of consumers and businesses under one roof. The infoUSA database powers the directory services of the top Internet traffic-generating sites. Nearly 4 million customers use infoUSA’s products and services to find new customers, grow their sales, and for other direct marketing, database marketing, email marketing, telemarketing, customer analysis and credit reference purposes.

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 NINE
	FOR THE QUARTER ENDED						MONTHS ENDED
	September			September			September			September
	30, 2004			30, 2005			30, 2004			30, 2005
	(unaudited)
Net sales	$	90,172		$	95,536		$	254,777		$	284,367
Costs and expenses:
Database and production costs		27,634			26,381			76,318			79,354
Selling, general and administrative		43,046			45,093			123,246			135,614
Depreciation and amortization of operating assets		3,523			2,717			10,397			9,991
Amortization of intangible assets		4,409			4,596			11,471			13,469
Non-cash stock compensation		(45	)		0			595			(289	)
Restructuring costs		766			929			2,388			2,549
Litigation settlement charge		0			605			0			731
Acquisition costs		79			0			321			354
		79,412			80,322			224,736			241,774
Operating income		10,760			15,214			30,041			42,593
Other income (expense):
Investment income (loss)		(177	)		400			(219	)		2,794
Other charges		0			56			(2,223	)		56
Interest expense		(2,447	)		(3,003	)		(6,422	)		(8,721	)
Income before income taxes		8,136			12,667			21,177			36,722
Income taxes		3,091			4,578			8,047			13,219
Net income	$	5,045		$	8,089		$	13,130		$	23,503
BASIC & DILUTED EARNINGS PER SHARE:
Basic earnings per share	$	0.10		$	0.15		$	0.25		$	0.44
Diluted earnings per share	$	0.10		$	0.15		$	0.25		$	0.44
Basic weighted average shares outstanding		53,005			54,132			52,630			53,878
Diluted weighted average shares outstanding		53,317			54,169			53,123			54,029

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The following provides a reconciliation of net income to EBITDA:

	FOR THE QUARTER				FOR THE NINE
	ENDED				MONTHS ENDED
	September		September		September		September
	30, 2004		30, 2005		30, 2004		30, 2005
Net income	$	5,045	$	8,089	$	13,130	$	23,503
Interest expense		2,447		3,003		6,422		8,721
Income taxes		3,091		4,578		8,047		13,219
Depreciation and amortization of operating assets		3,523		2,717		10,397		9,991
Amortization of intangible assets		4,409		4,596		11,471		13,469
EBITDA
	$	18,515	$	22,983	$	49,467	$	68,903

The following provides a schedule of Capital Expenditures:

	FOR THE QUARTER				FOR THE NINE
	ENDED				MONTHS ENDED
	September		September		September		September
	30, 2004		30, 2005		30, 2004		30, 2005
Purchases of Property of Equipment	$	1,230	$	1,066	$	3,721	$	4,110
Software and Database Development Costs		862		1,253		1,894		4,131
Capital Expenditures	$	2,092	$	2,319	$	5,615	$	8,241

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

	FOR THE QUARTER						FOR THE NINE
	ENDED						MONTHS ENDED
	September			September			September			September
	30, 2004			30, 2005			30, 2004			30, 2005
Cash Flow from Operations	$	19,575		$	12,978		$	45,791		$	46,179
Less:
Capital Expenditures		(2,092	)		(2,319	)		(5,615	)		(8,241	)
Free Cash Flow	$	17,483		$	10,659		$	40,176		$	37,938

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 September 30 2005, compared to December 31, 2004.

	December 31,		September 30,
(amounts in thousands)	2004		2005
Assets
Cash and Cash Equivalents	$	10,404	$	7,203
Accounts Receivable		51,707		40,236
Accounts Receivable-List Brokerage		19,635		25,028
Deferred Marketing Costs		2,632		2,780
Property and Equipment, net		42,537		46,370
Intangible Assets, net		365,286		358,666
Liabilities
Accounts Payable		21,268		13,354
Accounts Payable-List Brokerage		15,427		19,383
Accrued Payroll Expenses		15,917		18,637
Accrued Expenses		7,028		6,874
Deferred Revenue		53,034		51,510
Total Debt		196,226		178,278

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