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) —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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AboutinfoUSA
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. TheinfoUSA database powers the directory services of the top Internet traffic-generating sites. Nearly 4 million customers useinfoUSA’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)
(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)
(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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