EX-99.1 2 d29707exv99w1.htm PRESS RELEASE exv99w1
 

EXHIBIT 99.1 – Press release dated October 25, 2005
     
(INFO USA 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
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) — 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 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 26th, 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 26th, through midnight Eastern Time, November 2nd. 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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