Infogroup (IUSA) 8-K Infogroup Reports First Quarter 2010 Results

Exhibit 99.1

	5711 South 86th Circle
	Omaha, NE 68127
	Phone 402.596.4500
	Fax 402.593.4574 www.infogroup.com

FOR IMMEDIATE RELEASE
May 3, 2010

Infogroup Contacts:
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 First Quarter 2010 Results

• Revenue for the first quarter of $124.2 million compared to $127.5 million last year

• Operating income of $12.3 million compared to $2.7 million last year

• Cash flow from continuing operations of $13.6 million

• Earnings per share from continuing operations of $0.13 compared to a loss per share of $0.01 last year

(OMAHA, NE) — Infogroup (NASDAQ: IUSA), the leading provider of data driven and interactive resources for targeted sales, marketing and research solutions today reported preliminary unaudited financial results for the first quarter of 2010 ended on March 31, 2010.

FIRST QUARTER 2010 RESULTS

GAAP Results

During the first quarter of 2010, Infogroup recorded net sales of $124.2 million, compared to $127.5 million for the same period in 2009, representing a decline of $3.3 million or 3%. On a currency neutral basis, net sales declined by 4% year over year. Net sales for the Data Group for the first quarter of 2010 were $64.0 million, a 5% decrease from $67.3 million for the same period in 2009. Net sales for the Services Group for the first quarter of 2010 were $35.8 million, flat from $35.8 million for the same period in 2009. Net sales for the Marketing Research Group for the first quarter of 2010 were $24.4 million, a decrease of $0.1 million from $24.5 million for the same period in 2009.

Infogroup’s operating income for the first quarter of 2010 was $12.3 million, which included $5.2 million of restructuring, non-recurring and non-cash charges, compared to operating income of $2.7 million in the first quarter of 2009, which included $8.8 million of comparable charges. Operating income for the Data Group for the first quarter of 2010 was $17.5 million, or 27% of net sales, compared to $12.9 million, or 19% of net sales for the same period in 2009. Operating income for the Services Group for the first quarter of 2010 was $4.5 million, or 13% of net sales, compared to $5.0 million, or 14% of net sales for the same period in 2009. Operating loss for the Marketing Research Group was $0.04 million, or 0.2% of revenue, compared to $0.2 million, or 0.8% of net sales for the same period in 2009. Operating loss for Corporate Activities for the first quarter of 2010 was $9.7 million, compared to $15.1 million for the same period in 2009.

Infogroup’s net income from continuing operations for the first quarter of 2010 was $7.3 million, or earnings per share from continuing operations of $0.13, compared to a net loss from continuing operations of $0.7 million, or a loss per share from continuing operations of $0.01 in the first quarter of 2009.

	5711 South 86th Circle
	Omaha, NE 68127
	Phone 402.596.4500
	Fax 402.593.4574 www.infogroup.com

Non-GAAP Results

Infogroup’s adjusted earnings per share from continuing operations for the first quarter of 2010, excluding the restructuring, non-recurring and non-cash charges, was $0.17, compared to $0.09 for the first quarter of 2009, an increase of $0.08.

In the first quarter of 2010, EBITDA was $21.8 million compared to $9.8 million in the first quarter of 2009. Adjusted EBITDA, which excludes certain restructuring, non-recurring and non-cash charges, was $24.8 million in the first quarter of 2010, compared to $19.1 million in the first quarter of 2009. Adjusted EBITDA for the Data Group in the first quarter of 2010 was $22.8 million, compared to $19.1 million for the same period in 2009. Adjusted EBITDA for the Services Group in the first quarter of 2010 was $7.6 million, compared to $8.1 million for the same period in 2009. Adjusted EBITDA for the Marketing Research Group in the first quarter of 2010 was $2.3 million, compared to $1.7 million for the same period in 2009. Adjusted EBITDA for Corporate Activities in the first quarter of 2010 was a loss of $7.9 million, compared to a loss of $9.9 million for the same period in 2009.

In total, the Company recorded $4.0 million in costs during the first quarter of 2010 for restructuring, non-recurring and non-cash charges. This included restructuring costs for severance associated with headcount reductions and facility closures of $3.0 million, merger related expenses of $2.0 million, accelerated tradename amortization expense of $0.9 million, SEC investigation expenses of $0.2 million and litigation settlement charges of $0.1 million. These charges were offset by non-recurring benefits of $2.3 million. This included $1.3 million of realized gains primarily related to the sale of marketable securities and $1.0 million net benefit from non-cash stock compensation expense resulting from a $1.3 million reversal of prior expense for stock awards forfeited during the quarter. Of these charges, $4.3 million was recorded in selling, general and administrative expenses, $0.9 million was recorded in amortization of intangible assets expenses, and income of $1.3 million was recorded in investment income. During the first quarter of 2009, the Company recorded $9.3 million of comparable charges.

Net Debt as of March 31, 2010 was $163.3 million, compared to $174.1 million as of December 31, 2009, representing a decline of $10.8 million.

During the first quarter of 2010 the Company implemented and realized cost savings of approximately $4.0 million. These cost savings in addition to those implemented in 2009 contributed to lower overall adjusted selling, general and administrative expenses by approximately $8.3 million. The first quarter of 2010 cost savings initiatives will have a realized impact of approximately $15.0 million for the full year of 2010, with an annualized impact of approximately $16.0 million.

NON-GAAP INFORMATION

In addition to presenting results determined in accordance with generally accepted accounting principles, or GAAP, this release also presents non-GAAP financial measures. Investors are referred to the tables included in this press release for a reconciliation of these non-GAAP measures to GAAP financial measures.

Management considers GAAP and non-GAAP financial measures in evaluating the operating performance of the Company. EBITDA is commonly used as an analytical indicator within Infogroup’s industry. Adjusted EBITDA, adjusted earnings per share, non-GAAP selling, general and administrative expenses and non-GAAP operating income exclude items that management believes result from events that are not recurring and are not part of on-going operations. Additionally management discloses non-GAAP net debt, which deducts cash and marketable securities from GAAP debt. Management believes these non-GAAP financial measures also provide useful supplemental information to investors in evaluating the aggregate performance of the Company’s operating businesses.

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

	5711 South 86th Circle
	Omaha, NE 68127
	Phone 402.596.4500
	Fax 402.593.4574 www.infogroup.com

measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.

CONFERENCE CALL

Given the pending transaction with CCMP Capital Advisors, LLC announced on March 8, 2010, the Company will not hold a conference call to discuss its quarterly results.

About Infogroup

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’s headquarters are located at 5711 South 86^th Circle, Omaha, NE 68127. For more information, call (402) 593-4500 or visit www.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. Forward looking statements can be identified 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 completion of the Company’s proposed merger, integration of 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.

	5711 South 86th Circle
	Omaha, NE 68127
	Phone 402.596.4500
	Fax 402.593.4574
	www.infogroup.com

Infogroup INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

	THREE MONTHS ENDED
	March 31,
	2010			2009
	(UNAUDITED)
Net sales	$	124,218		$	127,537
Costs and expenses:
Cost of goods and services		46,394			46,989
Selling, general and administrative		57,433			70,136
Depreciation and amortization of operating assets		4,884			4,759
Amortization of intangible assets		3,169			2,934
Total operating costs and expenses		111,880			124,818
Operating income		12,338			2,719
Investment income (expense)		1,278			(2	)
Other income (expense)		127			(625	)
Interest expense		(1,763	)		(3,246	)
Other expense, net		(358	)		(3,873	)
Income (loss) before income taxes		11,980			(1,154	)
Income tax expense (benefit)		4,668			(427	)
Net income (loss) from continuing operations		7,312			(727	)
Loss from discontinued operations, net of tax		(13	)		(8,612	)
Net income (loss)	$	7,299		$	(9,339	)
BASIC EARNINGS (LOSS) PER SHARE:
Income (loss) from continuing operations	$	0.13		$	(0.01	)
Loss from discontinued operations	$	—		$	(0.15	)
Net income (loss)	$	0.13		$	(0.16	)
Basic weighted average shares outstanding		57,861			57,113
DILUTED EARNINGS (LOSS) PER SHARE:
Income (loss) from continuing operations	$	0.13		$	(0.01	)
Loss from discontinued operations	$	—		$	(0.15	)
Net income (loss)	$	0.13		$	(0.16	)
Diluted weighted average shares outstanding		58,247			57,113

	5711 South 86th Circle
	Omaha, NE 68127
	Phone 402.596.4500
	Fax 402.593.4574
	www.infogroup.com

Infogroup INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

	March 31,			December 31,
	2010			2009
	(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents	$	16,506		$	5,784
Marketable securities		74			1,773
Trade accounts receivable, net		43,086			61,947
List brokerage trade accounts receivable, net		67,943			81,033
Unbilled services		9,163			8,487
Deferred income taxes		480			1,184
Prepaid expenses		10,911			8,702
Deferred marketing costs		1,052			742
Escrow, current		10,037			—
Assets held for sale		1,132			1,457
Total current assets		160,384			171,109
Property and equipment, net		48,747			50,285
Goodwill		346,451			346,265
Intangible assets, net		60,360			61,828
Other assets		3,694			3,736
Escrow, noncurrent		—			10,029
	$	619,636		$	643,252
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	70,066		$	2,692
Accounts payable		10,967			18,500
List brokerage trade accounts payable		54,021			65,936
Accrued payroll expenses		25,398			31,767
Accrued expenses		12,526			11,370
Income taxes payable		1,145			3,751
Deferred revenue		60,197			62,582
Total current liabilities		234,320			196,598
Long-term debt, net of current portion		109,850			179,010
Deferred income taxes		7,086			5,774
Other liabilities		11,119			11,034
Stockholders’ equity:
Common stock		145			144
Paid-in capital		154,557			151,529
Retained earnings		114,829			107,530
Note receivable — shareholder		(9,790	)		(6,800	)
Accumulated other comprehensive loss		(2,480	)		(1,567	)
Total stockholders’ equity		257,261			250,836
	$	619,636		$	643,252

	5711 South 86th Circle
	Omaha, NE 68127
	Phone 402.596.4500
	Fax 402.593.4574
	www.infogroup.com

Infogroup INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	THREE MONTHS ENDED
	March 31,
	2010			2009
	(UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	7,299		$	(9,339	)
Net loss from discontinued operations		(13	)		(8,612	)
Net income (loss) from continuing operations		7,312			(727	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of operating assets		4,884			4,759
Amortization of intangible assets		3,169			2,934
Amortization of deferred financing fees		388			312
Deferred income taxes		2,585			(2,873	)
Non-cash stock compensation expense (benefit)		(1,046	)		428
Non-cash 401(k) contribution in common stock and other non-cash expense		754			821
(Gain) loss on sale of assets and marketable securities		(1,298	)		29
Asset impairment charges		—			2,060
Changes in assets and liabilities
Trade accounts receivable and unbilled services		17,860			13,302
List brokerage trade accounts receivable		13,090			10,137
Prepaid expenses and other assets		(2,227	)		(3,999	)
Deferred marketing costs		(310	)		(82	)
Accounts payable		(8,048	)		(13,509	)
List brokerage trade accounts payable		(11,915	)		(9,937	)
Income taxes receivable and payable, net		(4,612	)		51,580
Accrued expenses and other liabilities		(4,995	)		(2,442	)
Deferred revenue		(1,994	)		(1,536	)
Net cash provided by operating activities — continuing operations		13,597			51,257
Net cash used in operating activities — discontinued operations		(21	)		(34,531	)
Net cash provided by operating activities		13,576			16,726
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of marketable securities		1,674			9
Proceeds from sale of property and equipment		322			776
Purchases of property and equipment		(1,398	)		(1,659	)
Software and database development costs and purchases of other intangibles		(3,494	)		(1,900	)
Net cash used in investing activities — continuing operations		(2,896	)		(2,774	)
Net cash provided by investing activities — discontinued operations		—			128,428
Net cash provided by (used in) investing activities		(2,896	)		125,654
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of long-term debt		(6,786	)		(105,429	)
Proceeds from long-term debt		5,000			4,000
Deferred financing costs paid		—			(1,085	)
Tax benefit related to issuance of common stock		127			—
Proceeds from shareholder pursuant to stipulation of settlement		2,200			2,200
Net cash provided by (used in) financing activities — continuing operations		541			(100,314	)
Effect of exchange rate fluctuations on cash and cash equivalents		(499	)		(449	)
Net increase in cash and cash equivalents		10,722			41,617
Cash and cash equivalents, beginning		5,784			4,691
Cash and cash equivalents, ending	$	16,506		$	46,308

	5711 South 86th Circle
	Omaha, NE 68127
	Phone 402.596.4500
	Fax 402.593.4574
	www.infogroup.com

The following provides a reconciliation of GAAP net income (loss) to non-GAAP EBITDA, non-GAAP adjusted EBITDA, as well as total adjustments included in income (loss) before income taxes:

	THREE MONTHS ENDED
	March 31,
	2010			2009
(in thousands)	(UNAUDITED)
GAAP net income (loss)	$	7,299		$	(9,339	)
Loss from discontinued operations, net of tax		13			8,612
Interest expense		1,763			3,246
Income tax expense (benefit)		4,668			(427	)
Depreciation and amortization of operating assets		4,884			4,759
Amortization of intangible assets		3,169			2,934
Non-GAAP EBITDA	$	21,796		$	9,785
EBITDA adjustments:
SEC investigation and merger related expenses	$	2,206		$	3,832
Restructuring costs		3,017			2,638
Net impairments and write-down of assets / (gains) on sale of assets		(1,257	)		2,183
Litigation settlement charges		102			258
Non-cash stock compensation expense (benefit)		(1,046	)		427
Total EBITDA adjustments		3,022			9,338
Non-GAAP adjusted EBITDA	$	24,818		$	19,123
Total adjustments:
EBITDA adjustments	$	3,022		$	9,338
Accelerated tradename amortization expense		943			—
Total adjustments included in income (loss) before income taxes	$	3,965		$	9,338

The following provides a reconciliation of GAAP basic earnings (loss) per share to non-GAAP adjusted basic earnings (loss) per share:

	THREE MONTHS ENDED
	March 31,
	2010		2009
(in thousands, except per share amounts)	(UNAUDITED)
GAAP basic earnings (loss) per share from continuing operations	$	0.13	$	(0.01	)
Effect of adjustments (see below)	$	0.04	$	0.10
Non-GAAP adjusted basic earnings per share from continuing operations	$	0.17	$	0.09
GAAP basic earnings (loss) per share	$	0.13	$	(0.16	)
Effect of adjustments (see below)	$	0.04	$	0.10
Non-GAAP adjusted basic earnings (loss) per share	$	0.17	$	(0.06	)
Adjustments (detail in above table)	$	3,965	$	9,338
Income tax effect of adjustments		1,547		3,595
Impact of adjustments on net income	$	2,418	$	5,743
Basic weighted average shares outstanding		57,861		57,113
Effect of adjustments on basic earnings (loss) per share from continuing operations and basic earnings per share	$	0.04	$	0.10

	5711 South 86th Circle
	Omaha, NE 68127
	Phone 402.596.4500
	Fax 402.593.4574
	www.infogroup.com

The following provides a reconciliation of GAAP income (loss) before income taxes by segment to non-GAAP EBITDA and non-GAAP adjusted EBITDA by segment:

	For the Three Months Ended March 31, 2010
							Marketing						Condensed
				Services			Research			Corporate			Consolidated
	Data Group			Group			Group			Activities			Total
(in thousands)							(UNAUDITED)
GAAP income (loss) before income taxes	$	17,538		$	4,513		$	(39	)	$	(10,032	)	$	11,980
Interest expense		—			—			—			1,763			1,763
Depreciation and amortization of operating assets		2,676			1,244			472			492			4,884
Amortization of intangible assets		757			634			1,778			—			3,169
Non-GAAP EBITDA	$	20,971		$	6,391		$	2,211		$	(7,777	)	$	21,796
EBITDA adjustments:
SEC investigation and merger related expenses	$	—		$	—		$	—		$	2,206		$	2,206
Restructuring costs		1,803			1,038			93			83			3,017
Net impairments and write-down of assets / (gains) on sale of assets		19			—			—			(1,276	)		(1,257	)
Litigation settlement charges		—			102			—			—			102
Non-cash stock compensation expense (benefit)		16			44			18			(1,124	)		(1,046	)
Total EBITDA adjustments		1,838			1,184			111			(111	)		3,022
Non-GAAP adjusted EBITDA	$	22,809		$	7,575		$	2,322		$	(7,888	)	$	24,818
Adjusted EBITDA percentage of net sales		36	%		21	%		10	%		—			20	%

	For the Three Months Ended March 31, 2009
							Marketing						Condensed
				Services			Research			Corporate			Consolidated
	Data Group			Group			Group			Activities			Total
(in thousands)							(UNAUDITED)
GAAP income (loss) before income taxes	$	12,917		$	5,042		$	(164	)	$	(18,949	)	$	(1,154	)
Interest expense		—			—			—			3,246			3,246
Depreciation and amortization of operating assets		2,406			1,089			501			763			4,759
Amortization of intangible assets		1,243			860			831			—			2,934
Non-GAAP EBITDA	$	16,566		$	6,991		$	1,168		$	(14,940	)	$	9,785
EBITDA adjustments:
SEC investigation and merger related expenses	$	—		$	—		$	—		$	3,832		$	3,832
Restructuring costs		1,214			861			560			3			2,638
Net impairments and write-down of assets / (gains) on sale of assets		1,343			—			15			825			2,183
Litigation settlement charges		8			250			—			—			258
Non-cash stock compensation expense (benefit)		—			—			—			427			427
Total EBITDA adjustments		2,565			1,111			575			5,087			9,338
Non-GAAP adjusted EBITDA	$	19,131		$	8,102		$	1,743		$	(9,853	)	$	19,123
Adjusted EBITDA percentage of net sales		28	%		23	%		7	%		—			15	%

	5711 South 86th Circle
	Omaha, NE 68127
	Phone 402.596.4500
	Fax 402.593.4574
	www.infogroup.com

The following provides a reconciliation of GAAP selling, general and administrative expenses to non-GAAP adjusted selling, general and administrative expenses, excluding restructuring, non-recurring and non-cash charges:

	THREE MONTHS ENDED
	March 31,
	2010		2009
(in thousands)	(UNAUDITED)
GAAP selling, general and administrative expenses	$	57,433	$	70,136
Less restructuring, non-recurring and non-cash charges		4,300		8,750
Non-GAAP adjusted selling, general and administrative expenses, excluding restructuring, non-recurring and non-cash charges	$	53,133	$	61,386

The following provides a reconciliation of GAAP operating income to non-GAAP operating income, excluding restructuring, non-recurring and non-cash charges:

	THREE MONTHS ENDED
	March 31,
	2010		2009
(in thousands)	(UNAUDITED)
GAAP operating income	$	12,338	$	2,719
Plus restructuring, non-recurring and non-cash charges		4,300		8,750
Plus acceleration of tradename amortization expense		943		—
Non-GAAP operating income, excluding restructuring, non-recurring and non-cash charges	$	17,581	$	11,469

The following provides a reconciliation of GAAP debt to non-GAAP net debt:

	March 31,		December 31,
	2010		2009
(in thousands)	(UNAUDITED)
GAAP long-term debt, net of current portion	$	109,850	$	179,010
GAAP current portion of long-term debt		70,066		2,692
Total GAAP debt		179,916		181,702
Less GAAP cash and GAAP marketable securities:
GAAP cash		16,506		5,784
GAAP marketable securities		74		1,773
Total GAAP cash and marketable securities		16,580		7,557
Non-GAAP net debt	$	163,336	$	174,145