Exhibit 99.1
5711 S 86TH CIRCLE• PO BOX 27347• Omaha NE 68127-0347
Executive Office: (402) 596-8900• Fax (402) 596-8902
Internet: www.infoGROUP.com
FOR IMMEDIATE RELEASE
August 10, 2009
CONTACT:
Lisa Olson — Senior Vice President, Corporate Relations
Phone: (402) 593-4541
E-Mail:lisa.olson@infogroup.com
Thomas Oberdorf — Chief Financial Officer
Phone: (402) 593-4690
infoGROUP Reports Revised Second Quarter Results
(OMAHA, NE) —infoGROUP (NASDAQ: IUSA), the leading provider of data driven and interactive resources for targeted sales, marketing and research solutions today reported revised preliminary unaudited financial results for the second quarter ended June 30, 2009.
The Company announced its preliminary results for the second quarter of 2009 in its earnings release on August 3, 2009. Subsequent to announcing our second quarter 2009 financial results, management determined that the Company had historically recorded certain revenue within a business unit of the Data Group segment prior to it being realized. The attached exhibit reflects the pre-tax correcting adjustment of $0.6 million recorded in the second quarter 2009 results.
GAAP Results
During the second quarter of 2009infoGROUP’s revised revenue, after adjusting for the $0.6 million revenue recognition adjustment, was $121.6 million, compared to $122.2 million reported in our press release on August 3, 2009.
infoGROUP’s operating results have been revised to an operating income for the second quarter of 2009 of $0.9 million, compared to operating income of $1.5 million reported in our press release on August 3, 2009.
infoGROUP’s operating results have been revised to a net income for the second quarter of 2009 of $0.2 million, or earnings per share of $0.00, compared to net income of $0.6 million, or earnings per share of $0.01 reported in our press release on August 3, 2009.
Non-GAAP Results
infoGROUP’s revised adjusted earnings per share for the second quarter of 2009, excluding the restructuring, non-recurring and non-cash charges, was $0.14, compared to $0.15 reported in our press release on August 3, 2009.
In the second quarter of 2009, revised EBITDA was $8.0 million compared to $8.6 million reported in our press release on August 3, 2009. Revised adjusted EBITDA, which excludes certain restructuring, non-recurring and non-cash charges, was $20.5 million in the second quarter of 2009, compared to $21.1 million in our press release on August 3, 2009.
NON-GAAP INFORMATION
In addition to disclosing results determined in accordance with generally accepted accounting principles, or GAAP,infoGROUP also discloses the following non-GAAP measures: (1) earnings before interest expense, income taxes and depreciation and amortization, or EBITDA, (2) adjusted EBITDA excluding the effects of the non-recurring charges related to the Derivative Litigation, the Stipulation of Settlement, and the SEC investigation, restructuring costs, impairments and write-down of assets, litigation settlement charges, and non-cash stock compensation expense and (3) adjusted earnings (loss) per share excluding the effects of the non-recurring charges related to the Derivative Litigation, the Stipulation of Settlement and the SEC investigation, restructuring costs, impairments and write-down of assets, litigation settlement charges, and non-cash stock compensation expense.
Management believes EBITDA provides useful supplemental information to management and investors because management uses this information internally for evaluating the aggregate performance of the Company’s operating businesses. In addition, EBITDA is commonly used as an analytical indicator withininfoGROUP’s industry and is a component of the Company’s financial covenant calculations under its credit facilities, subject to certain adjustments. Additionally, management excludes the effects of the non-recurring charges related to the Derivative Litigation, the Stipulation of Settlement and the SEC investigation and the restructuring costs, impairments and write-down of assets, litigation settlement charges, and non-cash stock compensation expense because such items resulted from events that are non-recurring and are not part of on-going operations. Management believes that adjusted earnings per share and adjusted EBITDA provide useful supplemental information to management and investors because they better reflect the Company’s on-going performance and business operations during the periods presented and are more useful to investors for comparative purposes.
All companies do not calculate non-GAAP measures in the same manner and the non-GAAP financial measures presented in this press release may not be comparable to similar measures used by other companies. Non-GAAP measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of the Company’s business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP as measures of the Company’s profitability or liquidity.
See the tables in this press release for a reconciliation of net income to non-GAAP EBITDA and non-GAAP adjusted EBITDA, and earnings (loss) per share to non-GAAP adjusted earnings per share.
AboutinfoGROUP
infoGROUP (NASDAQ: IUSA) is the leading provider of data and interactive resources that enables targeted sales, effective marketing and insightful research solutions. Our information powers innovative tools and insight for businesses to efficiently reach current and future customers through multiple channels, including the world’s most dominant and powerful Internet search
engines and GPS navigation systems.infoGROUP headquarters are located at 5711 S. 86th Circle, Omaha, NE 68127. For more information, call (402) 593-4500 or visitwww.infogroup.com.
Forward-looking Statements
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. You can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continues” or the negative of these terms or other comparable terminology. The potential risks and uncertainties include, but are not limited to, recent changes in senior management, risks associated with litigation, 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.
(CONDENSED FINANCIAL STATEMENTS FOLLOW)
infoGROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | FOR THE QUARTER ENDED JUNE 30, 2009 | | | FOR THE SIX MONTHS ENDED JUNE 30, 2009 | |
| | | (unaudited) | | | (unaudited) | |
| | | As Reported in | | | Revenue | | | | | | | As Reported in | | | Revenue | | | | |
| | | August 3, 2009 | | | Recognition | | | | | | | August 3, 2009 | | | Recognition | | | | |
| | | Press Release | | | Adjustment | | | Revised | | | Press Release | | | Adjustment | | | Revised | |
| Net sales | | $ | 122,216 | | | $ | (646 | ) | | $ | 121,570 | | | $ | 249,753 | | | $ | (646 | ) | | $ | 249,107 | |
| Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | |
| Cost of goods and services | | | 45,908 | | | | — | | | | 45,908 | | | | 92,897 | | | | — | | | | 92,897 | |
| Selling, general and administrative | | | 66,973 | | | | — | | | | 66,973 | | | | 137,109 | | | | — | | | | 137,109 | |
| Depreciation and amortization of operating assets (1) | | | 5,000 | | | | — | | | | 5,000 | | | | 9,759 | | | | — | | | | 9,759 | |
| Amortization of intangible assets | | | 2,839 | | | | — | | | | 2,839 | | | | 5,773 | | | | — | | | | 5,773 | |
| | | | | | | | | | | | | | | | | | | |
| | | | 120,720 | | | | — | | | | 120,720 | | | | 245,538 | | | | — | | | | 245,538 | |
| | | | | | | | | | | | | | | | | | | |
| Operating income | | | 1,496 | | | | (646 | ) | | | 850 | | | | 4,215 | | | | (646 | ) | | | 3,569 | |
| Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment income (expense) | | | 1 | | | | — | | | | 1 | | | | (1 | ) | | | — | | | | (1 | ) |
| Other income (expense) | | | (699 | ) | | | — | | | | (699 | ) | | | (1,324 | ) | | | — | | | | (1,324 | ) |
| Interest expense | | | (2,160 | ) | | | — | | | | (2,160 | ) | | | (5,406 | ) | | | — | | | | (5,406 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes | | | (1,362 | ) | | | (646 | ) | | | (2,008 | ) | | | (2,516 | ) | | | (646 | ) | | | (3,162 | ) |
| Income tax expense (benefit) | | | (504 | ) | | | (239 | ) | | | (743 | ) | | | (931 | ) | | | (239 | ) | | | (1,170 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) from continuing operations | | | (858 | ) | | | (407 | ) | | | (1,265 | ) | | | (1,585 | ) | | | (407 | ) | | | (1,992 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) from discontinued operatons, net of tax | | | 1,470 | | | | — | | | | 1,470 | | | | (7,142 | ) | | | — | | | | (7,142 | ) |
| | | | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | 612 | | | $ | (407 | ) | | $ | 205 | | | $ | (8,727 | ) | | $ | (407 | ) | | $ | (9,134 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| BASIC EARNINGS (LOSS) PER SHARE: | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | ( 0.01 | ) | | $ | ( 0.01 | ) | | $ | ( 0.02 | ) | | $ | ( 0.03 | ) | | $ | 0.00 | | | $ | ( 0.03 | ) |
| Income (loss) from discontinued operations (2) | | $ | 0.02 | | | $ | 0.00 | | | $ | 0.02 | | | $ | ( 0.12 | ) | | $ | ( 0.01 | ) | | $ | ( 0.13 | ) |
| | | | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | 0.01 | | | $ | ( 0.01 | ) | | $ | 0.00 | | | $ | ( 0.15 | ) | | $ | ( 0.01 | ) | | $ | ( 0.16 | ) |
| | | | | | | | | | | | | | | | | | | |
| Basic weighted average shares outstanding | | | 57,570 | | | | 57,570 | | | | 57,570 | | | | 57,220 | | | | 57,220 | | | | 57,220 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| DILUTED EARNINGS (LOSS) PER SHARE: | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | ( 0.01 | ) | | $ | ( 0.01 | ) | | $ | ( 0.02 | ) | | $ | ( 0.03 | ) | | $ | 0.00 | | | $ | ( 0.03 | ) |
| Income (loss) from discontinued operations (2) | | $ | 0.02 | | | $ | 0.00 | | | $ | 0.02 | | | $ | ( 0.12 | ) | | $ | ( 0.01 | ) | | $ | ( 0.13 | ) |
| | | | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | 0.01 | | | $ | ( 0.01 | ) | | $ | 0.00 | | | $ | ( 0.15 | ) | | $ | ( 0.01 | ) | | $ | ( 0.16 | ) |
| | | | | | | | | | | | | | | | | | | |
| Diluted weighted average shares outstanding | | | 57,570 | | | | 57,570 | | | | 57,570 | | | | 57,220 | | | | 57,220 | | | | 57,220 | |
| | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Depreciation of tangible assets and amortization of capitalized software. |
| |
| (2) | | Basic and diluted earnings (loss) per share from discontinued operations were not impacted by this revenue recognition adjustment, but the earnings per share number for the six months ended June 30, 2009 was adjusted for rounding. |
The following provides a reconciliation of GAAP net income (loss) to non-GAAP EBITDA and non-GAAP adjusted EBITDA:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | FOR THE QUARTER ENDED JUNE 30, 2009 | | | FOR THE SIX MONTHS ENDED JUNE 30, 2009 | |
| | | (unaudited) | | | (unaudited) | |
| | | As Reported in | | | Revenue | | | | | | | As Reported in | | | Revenue | | | | |
| | | August 3, 2009 | | | Recognition | | | | | | | August 3, 2009 | | | Recognition | | | | |
| (In thousands) | | Press Release | | | Adjustment | | | Revised | | | Press Release | | | Adjustment | | | Revised | |
| GAAP net income (loss) | | $ | 612 | | | $ | (407 | ) | | $ | 205 | | | $ | (8,727 | ) | | $ | (407 | ) | | $ | (9,134 | ) |
| (Income) loss from discontinued operations | | | (1,470 | ) | | | — | | | | (1,470 | ) | | | 7,142 | | | | — | | | | 7,142 | |
| Interest expense | | | 2,160 | | | | — | | | | 2,160 | | | | 5,406 | | | | — | | | | 5,406 | |
| Income tax expense (benefit) | | | (504 | ) | | | (239 | ) | | | (743 | ) | | | (931 | ) | | | (239 | ) | | | (1,170 | ) |
| Depreciation and amortization of operating assets | | | 5,000 | | | | — | | | | 5,000 | | | | 9,759 | | | | — | | | | 9,759 | |
| Amortization of intangible assets | | | 2,839 | | | | — | | | | 2,839 | | | | 5,773 | | | | — | | | | 5,773 | |
| | | | | | | | | | | | | | | | | | | |
| Non-GAAP EBITDA | | $ | 8,637 | | | $ | (646 | ) | | $ | 7,991 | | | $ | 18,422 | | | $ | (646 | ) | | $ | 17,776 | |
| | | | | | | | | | | | | | | | | | | |
| Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
| SEC investigation / shareholder litigation expenses | | $ | 1,868 | | | $ | — | | | $ | 1,868 | | | $ | 5,701 | | | $ | — | | | $ | 5,701 | |
| Restructuring costs | | | 6,908 | | | | — | | | | 6,908 | | | | 9,546 | | | | — | | | | 9,546 | |
| Impairments and write-down of assets | | | 3,201 | | | | — | | | | 3,201 | | | | 5,383 | | | | — | | | | 5,383 | |
| Litigation settlement charges | | | 114 | | | | — | | | | 114 | | | | 372 | | | | — | | | | 372 | |
| Non-cash stock compensation expense | | | 395 | | | | — | | | | 395 | | | | 822 | | | | — | | | | 822 | |
| | | | | | | | | | | | | | | | | | | |
| Non-GAAP adjusted EBITDA | | $ | 21,123 | | | $ | (646 | ) | | $ | 20,477 | | | $ | 40,246 | | | $ | (646 | ) | | $ | 39,600 | |
| | | | | | | | | | | | | | | | | | | |
The following provides a reconciliation of GAAP basic earnings (loss) per share to non-GAAP adjusted basic earnings (loss) per share:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | FOR THE QUARTER ENDED JUNE 30, 2009 | | | FOR THE SIX MONTHS ENDED JUNE 30, 2009 | |
| | | (unaudited) | | | (unaudited) | |
| | | As Reported in | | | Revenue | | | | | | | As Reported in | | | Revenue | | | | |
| | | August 3, 2009 | | | Recognition | | | | | | | August 3, 2009 | | | Recognition | | | | |
| (In thousands, except per share amounts) | | Press Release | | | Adjustment | | | Revised | | | Press Release | | | Adjustment | | | Revised | |
| GAAP basic earnings (loss) per share from continuing operations | | $ | (0.01 | ) | | $ | (0.01 | ) | | $ | (0.02 | ) | | $ | (0.03 | ) | | $ | 0.00 | | | $ | (0.03 | ) |
| Effect of adjustments (see below) | | $ | 0.14 | | | $ | 0.00 | | | $ | 0.14 | | | $ | 0.24 | | | $ | 0.00 | | | $ | 0.24 | |
| | | | | | | | | | | | | | | | | | | |
| Non-GAAP adjusted basic earnings (loss) per share from continuing operations | | $ | 0.13 | | | $ | (0.01 | ) | | $ | 0.12 | | | $ | 0.21 | | | $ | 0.00 | | | $ | 0.21 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| GAAP basic earnings (loss) per share | | $ | 0.01 | | | $ | (0.01 | ) | | $ | 0.00 | | | $ | (0.15 | ) | | $ | (0.01 | ) | | $ | (0.16 | ) |
| Effect of adjustments (see below) | | $ | 0.14 | | | $ | 0.00 | | | $ | 0.14 | | | $ | 0.24 | | | $ | 0.00 | | | $ | 0.24 | |
| | | | | | | | | | | | | | | | | | | |
| Non-GAAP adjusted basic earnings (loss) per share | | $ | 0.15 | | | $ | (0.01 | ) | | $ | 0.14 | | | $ | 0.09 | | | $ | (0.01 | ) | | $ | 0.08 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjustments (detail in above table) | | $ | 12,486 | | | $ | 0.00 | | | $ | 12,486 | | | $ | 21,824 | | | $ | 0.00 | | | $ | 21,824 | |
| Income tax effect of adjustments | | | 4,620 | | | $ | 0.00 | | | | 4,620 | | | | 8,075 | | | $ | 0.00 | | | | 8,075 | |
| | | | | | | | | | | | | | | | | | | |
| Impact of adjustments on net income | | $ | 7,866 | | | $ | 0.00 | | | $ | 7,866 | | | $ | 13,749 | | | $ | 0.00 | | | $ | 13,749 | |
| | | | | | | | | | | | | | | | | | | |
| Basic weighted average shares outstanding | | | 57,570 | | | | 57,570 | | | | 57,570 | | | | 57,220 | | | | 57,220 | | | | 57,220 | |
| | | | | | | | | | | | | | | | | | | |
| Effect of adjustments on basic earnings (loss) per share from continuing operations and basic earnings (loss) per share | | $ | 0.14 | | | $ | 0.00 | | | $ | 0.14 | | | $ | 0.24 | | | $ | 0.00 | | | $ | 0.24 | |
| | | | | | | | | | | | | | | | | | | |
infoGROUP INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
| | | | | | | | | | | | | | | | | |
| | | June 30, 2009 | | | | |
| | | (unaudited) | | | | |
| | | As Reported in | | | Revenue | | | | | | | |
| | | August 3, 2009 | | | Recognition | | | | | | | |
| | | Press Release | | | Adjustment | | | Revised | | | December 31, 2008 | |
Assets | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 7,603 | | | | | | | $ | 7,603 | | | $ | 4,691 | |
| Marketable securities | | | 611 | | | | | | | | 611 | | | | 992 | |
| Accounts receivable | | | 42,304 | | | | | | | | 42,304 | | | | 56,030 | |
| List brokerage accounts receivable | | | 66,540 | | | | | | | | 66,540 | | | | 86,841 | |
| Unbilled services | | | 10,669 | | | | | | | | 10,669 | | | | 11,120 | |
| Deferred income taxes | | | 5,196 | | | | | | | | 5,196 | | | | 6,889 | |
| Income taxes receivable | | | — | | | | | | | | — | | | | 3,782 | |
| Prepaid expenses | | | 11,207 | | | | | | | | 11,207 | | | | 9,382 | |
| Escrow, current | | | 3,002 | | | | | | | | 3,002 | | | | — | |
| Other receivables | | | 2,610 | | | | | | | | 2,610 | | | | — | |
| Deferred marketing costs | | | 1,004 | | | | | | | | 1,004 | | | | 1,004 | |
| Assets held for sale | | | 2,815 | | | | | | | | 2,815 | | | | 3,960 | |
| Current assets of discontinued operations | | | — | | | | | | | | — | | | | 36,845 | |
| | | | | | | | | | | | | |
| Total current assets | | | 153,561 | | | | | | | | 153,561 | | | | 221,536 | |
| | | | | | | | | | | | | |
| Property and equipment, net | | | 54,270 | | | | | | | | 54,270 | | | | 59,235 | |
| Goodwill | | | 353,088 | | | | | | | | 353,088 | | | | 377,708 | |
| Intangible assets, net | | | 64,274 | | | | | | | | 64,274 | | | | 69,950 | |
| Other assets | | | 2,445 | | | | | | | | 2,445 | | | | 2,505 | |
| Escrow, noncurrent | | | 10,005 | | | | | | | | 10,005 | | | | — | |
| Noncurrent assets of discontinued operations | | | — | | | | | | | | — | | | | 84,844 | |
| | | | | | | | | | | | | |
| | | $ | 637,643 | | | | | | | $ | 637,643 | | | $ | 815,778 | |
| | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
| Current portion of long-term debt | | $ | 2,837 | | | | | | | $ | 2,837 | | | | 2,899 | |
| Accounts payable | | | 19,084 | | | | | | | | 19,084 | | | | 29,569 | |
| Accounts payable-list brokerage | | | 59,420 | | | | | | | | 59,420 | | | | 79,827 | |
| Accrued payroll expenses | | | 28,751 | | | | | | | | 28,751 | | | | 32,128 | |
| Accrued expenses | | | 16,600 | | | | | | | | 16,600 | | | | 16,068 | |
| Income taxes payable | | | 5,236 | | | | (734 | ) | | | 4,502 | | | | — | |
| Deferred revenue | | | 54,919 | | | | 1,985 | | | | 56,904 | | | | 60,479 | |
| Current liabilities of discontinued operations | | | — | | | | | | | | — | | | | 16,659 | |
| | | | | | | | | | | | | |
| Total current liabilities | | | 186,847 | | | | 1,251 | | | | 188,098 | | | | 237,629 | |
| | | | | | | | | | | | | |
| Long-term debt, net of current portion | | | 190,618 | | | | | | | | 190,618 | | | | 297,745 | |
| Deferred income taxes | | | 7,561 | | | | | | | | 7,561 | | | | 10,552 | |
| Other liabilities | | | 7,218 | | | | | | | | 7,218 | | | | 5,417 | |
| Noncurrent liabilities of discontinued operations | | | — | | | | | | | | — | | | | 16,406 | |
Stockholders’ equity | | | | | | | | | | | | | | | | |
| Common stock | | | 143 | | | | | | | | 143 | | | | 142 | |
| Paid-in capital | | | 149,281 | | | | | | | | 149,281 | | | | 147,029 | |
| Retained earnings | | | 106,199 | | | | (1,251 | ) | | | 104,948 | | | | 114,082 | |
| Note receivable — shareholder | | | (6,800 | ) | | | | | | | (6,800 | ) | | | (9,000 | ) |
| Accumulated other comprehensive loss | | | (3,424 | ) | | | | | | | (3,424 | ) | | | (4,224 | ) |
| | | | | | | | | | | | | |
| Total stockholders’ equity | | | 245,399 | | | | (1,251 | ) | | | 244,148 | | | | 248,029 | |
| | | | | | | | | | | | | |
| | | $ | 637,643 | | | $ | — | | | $ | 637,643 | | | $ | 815,778 | |
| | | | | | | | | | | | | |
