Exhibit 99.1
![(infoUSA LOGO)](https://capedge.com/proxy/8-K/0000950134-07-009878/d46105d4610501.gif)
5711 S 86TH CIRCLE• PO BOX 27347• Omaha NE 68127-0347
Executive Office: (402) 596-8900• Fax (402) 596-8902
Internet:www.infoUSA.com
Executive Office: (402) 596-8900• Fax (402) 596-8902
Internet:www.infoUSA.com
FOR IMMEDIATE RELEASE
April 19, 2007
April 19, 2007
CONTACT:
VIN GUPTA — CHAIRMAN & CHIEF EXECUTIVE OFFICER
Phone: (402) 596-8900
VIN GUPTA — CHAIRMAN & CHIEF EXECUTIVE OFFICER
Phone: (402) 596-8900
STORMY DEAN — CHIEF FINANCIAL OFFICER
Phone: (402) 593-4500
Phone: (402) 593-4500
infoUSA Reports Record First Quarter Results
• | Record revenue of $157.9 million for First Quarter |
(OMAHA, NE) —infoUSAÒ (Nasdaq: IUSA). The following table presents the financial results and selected balance sheet items for the first quarter of 2007 ending on March 31, 2007.
(Amounts in thousands, except per share | 1st Quarter | 1st Quarter | ||||||||||
amounts) | 2006 | 2007 | ||||||||||
Net sales | $ | 103,070 | $ | 157,882 | ||||||||
Cost of goods and services | 25,725 | 62,328 | ||||||||||
Selling, general and administrative | 54,079 | 71,583 | ||||||||||
Depreciation (1) | 3,140 | 4,803 | ||||||||||
Amortization of intangible assets | 4,637 | 4,323 | ||||||||||
Operating income | 15,489 | 14,845 | ||||||||||
Other expense (2) | (3,048 | ) | (4,814 | ) | ||||||||
Income before taxes | 12,441 | 10,031 | ||||||||||
Income taxes | 4,494 | 3,701 | ||||||||||
Net income | 7,947 | 6,330 | ||||||||||
Earnings per share | $ | 0.15 | $ | 0.11 | ||||||||
Weighted average shares outstanding | 53,866 | 55,521 | ||||||||||
Total debt | 143,404 | 272,039 | ||||||||||
Capital expenditures | 4,112 | 6,411 | ||||||||||
EBITDA | 23,023 | 23,969 | ||||||||||
(1) | Depreciation of tangible assets and amortization of capitalized software. | |
(2) | Investment income and interest expense. |
RESULTS OF OPERATIONS
Vin Gupta, Founder, Chairman and Chief Executive Officer ofinfoUSA, stated, “The First Quarter of 2007 was a record quarter forinfoUSA. We experienced dramatic revenue growth due to the acquisition of Opinion ResearchÒ, and reported growth in our core business.
Today,infoUSA is a full service provider to the sales and marketing departments of corporations and small businesses and provider of database and research services to the non-profit, political and public sectors. We offer 12 proprietary databases and provide services so our customers can find new prospects and increase sales; for example, sales leads, mailing lists, database marketing, direct marketing, e-mail marketing, customer surveys and unlimited access on-line. We offer direct marketing services, database marketing services and e-mail marketing services all under one roof. With the acquisition of Opinion Research, we are also able to offer marketing research services that include customer surveys, product surveys, and employee surveys to the corporate and public sector.
FINANCIAL HIGHLIGHTS
During the first quarter of 2007,infoUSA delivered record revenues of $157.9 million, which includes $48.1 million for Opinion Research. Excluding Opinion Research our revenue was $109.8 million for the first quarter of 2007, compared to $103.1 million for the same period in 2006, an increase of 6%.
infoUSA’s first quarter operating income was $14.8 million, which includes $1.6 million for Opinion Research. Excluding Opinion Research our operating income was $13.2 million, compared to $15.5 million in the first quarter of 2006. During the first quarter of 2007 the Company spent $4.6 million for advertisements for the Super Bowl and the NCAA Final Four Basketball Tournament. The Company also recorded expenses of $2.1 million related to the transition ofinfoUSA National Accounts to Omaha.
infoUSA’s earnings per share for the first quarter of 2007 were $0.11 versus $0.15 in the first quarter of 2006. EBITDA for the first quarter was $24.0 million, which includes $3.2 million for Opinion Research. Excluding Opinion Research our EBITDA was $20.8 million, compared to $23.0 million in the first quarter of 2006.
The segment revenue for the first quarter was as follows:
• | Revenue for the Data Group in the first quarter was $78.4 million compared to $76.5 million for the same period last year. Growth for the quarter for the Data Group was 2%. | |
• | Revenue for the Services Group in the first quarter was $31.4 million compared to $26.6 million for the same period last year. Growth for the quarter for the Services Group was 18%. | |
• | Revenue for the Marketing Research Group in the first quarter was $48.1 million. The Marketing Research Group is composed of Opinion Research and Macro International, acquired December 4, 2006. |
The following are highlights ofinfoUSA’s accomplishments in the first quarter of 2007:
• | infoUSA continued to build on its successful subscription model, generating a sustainable and predictable revenue stream. The Company added 10,879 subscribers to Salesgenie.comÒ, Credit.netÒ, SalesLeadsUSA.info, andinfoUSA’s other subscription products during the quarter. The increase of the new subscribers compared to the new subscribers added in previous quarters is a direct result of the Super Bowl ads and the marketing campaigns that surrounded the ads. The ads generated approximately 50,000 new registrants, and over 2,500 new subscriptions.infoUSA now has approximately 65,000 total subscribers with an annualized revenue value of over $115 million. The cancellation rates on subscription products remain level at approximately 19%. | |
• | infoUSA recorded a full quarter of results for Opinion Research Corporation, acquired December 4, 2006. This transaction is a continuation ofinfoUSA’s strategic plan to leverage its capabilities and be a full service provider to the sales and marketing departments of corporations worldwide. | |
• | On March 5, 2007, we paid a cash dividend of $0.25 per common share and a special dividend of $0.10 per common share to stockholders of record on February 16, 2007. |
NEW REPORTING SEGMENTS
Beginning in fiscal 2007, the Company is reporting results in three segments: the Data Group, the Services Group, and the Marketing Research Group.
The Donnelley Group has been reorganized and is named “Services Group”. This group is lead by Ed Mallin and consists of Yesmail, Catalog Vision, and the List Brokerage and List Management divisions.
The “Data Group” is composed of Donnelley Marketing, which is now known asinfoUSA National Accounts, along with OneSource, Database License, and the formerinfoUSA Group (Small Business Group). The Data Group is lead by Monica Messer.
infoUSA believes that by organizing all of the Company’s businesses that sell proprietary content into a single segment, it can more effectively deploy its sales and marketing resources. The reorganization is also expected to create better opportunities for cross selling proprietary databases under one brand name.
The Marketing Research Group is composed of the recently acquired operations of Opinion Research Corporation, whose operations are divided into the Corporate Market Research division known as Opinion Research and the Government Research division known as Macro International. Gerard Miodus leads the Corporate Market Research division worldwide, and Greg Mahnke leads the Government Research division called Macro International.
OPERATING HIGHLIGHTS
Services Group
List Brokerage and List Management
This division operates under the Walter Karl®, Edith Roman®, Millard Group®, Mokrynskidirect,and Walter KarlMidwest (formerly Rubin Response) brands. While the traditional direct mail business is stabilizing due to online advertising and e-mail marketing, the List Brokerage and List Management Group is creating value by offering its existing customers and prospectsinfoUSA’s e-mail marketing expertise, proprietary data, analytics and data processing services.
Catalog Vision® and Triplex®
Catalog Vision is the Company’s Data Processing and Direct Marketing division dedicated to Direct Mail Catalog Retailers and non-profit and charitable organizations. Triplex specializes in providing data processing services to the non-profit section. Catalog Vision and Triplex are both expanding their groups in order to meet the growing demands of their client base. In addition, Triplex introduced new technology in the first quarter to meet some of the specific, real time needs of the non-profit marketplace.
Yesmail® — E-mail Technology Company
Yesmail is an industry leader in e-mail technology. Yesmail continues to have great success both domestically and abroad and anticipates a strong year with the introduction of key new products and product enhancements, including Yesmail Express and Yesmail Enterprise 6.0 released in March 2007. In addition, Yesmail has expanded into the UK market by opening a sales office in London and has plans for future international expansion in Europe and the Far East.
Data Group
The Data Group is composed ofinfoUSA National Accounts, OneSource, Database License Group, and the Small and Medium Sized Business Group. The Data Group is continuing to experience growth in its subscription products. The Company attributes this growth to its highly accurate database, delivery technology, and successful advertising campaigns.
Proprietary Database — Strength of infoUSA
We believe we have been recognized in the industry as having the most comprehensive and up-to-date databases of businesses and consumers in the industry.infoUSA has 12 databases that we believe are widely regarded as unparalleled in breadth and depth of content. Our effort to add more content and improve the quality is an ongoing process.
Marketing Research Group
The Opinion Research operations are included in our Marketing Research Group and are divided into the Worldwide Corporate Market Research division known as Opinion Research and the Government Research division known as Macro International.
The services provided and clients served by Opinion Research Corporation are highly complementary toinfoUSA’s services. We plan to capitalize on the compelling cross-selling opportunities created by the combination. For the first quarter of 2007 the acquisition of Opinion Research Corporation was accretive to its earnings, and the Company expects this to continue for fiscal 2007.
The Corporate Market Research division will continue to expand its overseas operations in Europe and Asia. We plan to take advantage of cross-selling opportunities with otherinfoUSA companies by selling database marketing services to market research customers and by selling market research to companies engaged in database marketing.
The Government Research division, known as Macro International, is based in the Washington, DC area. We believe they are the leading provider of research to the various departments of the government such as Health and Education Service, Centers for Disease Control, USAID, and other departments.
NON-GAAP INFORMATION
In addition to disclosing results determined in accordance with generally accepted accounting principles, or GAAP,infoUSA also discloses earnings before interest, taxes and depreciation and amortization, or EBITDA, which is a non-GAAP measure. Management believes EBITDA provides useful supplemental information to management and investors because management uses this information internally for evaluating the aggregate performance of our operating businesses. In addition, EBITDA is commonly used as an analytical indicator withininfoUSA’s industry and is a component of the Company’s financial covenant calculations under its credit facilities, subject to certain adjustments. All companies do not calculate EBITDA in the same manner andinfoUSA’s presentation may not be comparable to those presented by other companies.
EBITDA should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as measures ofinfoUSA’s profitability or liquidity. See the tables in this press release for a reconciliation of EBITDA to net income.
CONFERENCE CALL
The Company will host its first quarter conference call on April 20, 2007 at 4:00 pm Eastern time. To access the conference call, please dial 800-901-5226 (international 617-786-4513), passcode 91828526, approximately 10 minutes prior to the start of the call. A replay of the call will be available from 7:00 pm Eastern time, April 20, 2007 through midnight Eastern Time, April 27, 2007. The replay number is 888-286-8010 (international 617-801-6888), passcode 51535026. A live webcast of the conference call will be available at the Company’s Investor Relations web site,http://ir.infousa.com.
AboutinfoUSA
infoUSA (www.infoUSA.com), founded in 1972, is a leading provider of business and consumer information products, database marketing services, data processing services and sales and marketing solutions. Content is the essential ingredient in every marketing program, andinfoUSA has the most comprehensive data in the industry, and is the only company to own a proprietary database of 250 million consumers and 14 million businesses under one roof. TheinfoUSA database powers the directory services of the top Internet traffic-generating sites. Nearly 3 million customers useinfoUSA’s products and services to find new customers, grow their sales, and for other direct marketing, telemarketing, customer analysis and credit reference purposes.infoUSA headquarters are located at 5711 S. 86th Circle, Omaha, NE 68127 and can be contacted at (402) 593-4500. To know more about Sales Leads, clickwww.infousa.com. To get a 7-day free trial and 100 free sales leads, clickwww.salesgenie.com.
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.infoUSA cautions readers not to place undue reliance on any such forward looking statements, which speak only as of the date they were made.infoUSA disclaims any obligation to publicly update or revise any such statements to reflect any change in its expectations or events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward looking statements.
(INCOME STATEMENT FOLLOWS)
infoUSA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
FOR THE QUARTER ENDED | ||||||||
March 31, | March 31, | |||||||
2006 | 2007 | |||||||
Net sales | $ | 103,070 | $ | 157,882 | ||||
Costs and expenses: | ||||||||
Cost of goods and services | 25,725 | 62,328 | ||||||
Selling, general and administrative | 54,079 | 71,583 | ||||||
Depreciation and amortization of operating assets | 3,140 | 4,803 | ||||||
Amortization of intangible assets | 4,637 | 4,323 | ||||||
87,581 | 143,037 | |||||||
Operating income | 15,489 | 14,845 | ||||||
Other income (expense): | ||||||||
Investment income | 72 | 22 | ||||||
Other income (charges) | (315 | ) | (24 | ) | ||||
Interest expense | (2,805 | ) | (4,812 | ) | ||||
Income before income taxes | 12,441 | 10,031 | ||||||
Income taxes | 4,494 | 3,701 | ||||||
Net income | $ | 7,947 | $ | 6,330 | ||||
BASIC & DILUTED EARNINGS PER SHARE: | ||||||||
Basic earnings per share | $ | 0.15 | $ | 0.11 | ||||
Diluted earnings per share | $ | 0.15 | $ | 0.11 | ||||
Basic weighted average shares outstanding | 53,866 | 55,521 | ||||||
Diluted weighted average shares outstanding | 54,652 | 55,819 | ||||||
The following provides a reconciliation of net income to EBITDA:
FOR THE QUARTER | ||||||||
ENDED | ||||||||
March 31, | March 31, | |||||||
2006 | 2007 | |||||||
Net income | $ | 7,947 | $ | 6,330 | ||||
Interest expense | 2,805 | 4,812 | ||||||
Income taxes | 4,494 | 3,701 | ||||||
Depreciation and amortization of operating assets | 3,140 | 4,803 | ||||||
Amortization of intangible assets | 4,637 | 4,323 | ||||||
EBITDA | $ | 23,023 | $ | 23,969 | ||||
infoUSA INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
Consolidated Balance Sheets
(In thousands)
December 31, | March 31, | |||||||||||
2006 | 2007 | |||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 4,433 | $ | 4,090 | ||||||||
Marketable securities | 2,665 | 1,954 | ||||||||||
Accounts receivable | 77,095 | 60,620 | ||||||||||
Accounts receivable-list brokerage | 68,274 | 57,577 | ||||||||||
Accounts receivable — unbilled services | 20,794 | 23,261 | ||||||||||
Deferred income taxes | 3,522 | 3,529 | ||||||||||
Prepaid expenses | 7,268 | 8,071 | ||||||||||
Deferred marketing costs | 3,485 | 4,307 | ||||||||||
Total current assets | 187,536 | 163,409 | ||||||||||
Property and equipment, net | 61,172 | 62,553 | ||||||||||
Intangible assets, net | 489,795 | 487,028 | ||||||||||
Other assets | 11,072 | 11,406 | ||||||||||
$ | 749,575 | $ | 724,396 | |||||||||
Liabilities | ||||||||||||
Current portion of long-term debt | 4,627 | 5,379 | ||||||||||
Accounts payable | 27,492 | 21,741 | ||||||||||
Accounts payable-list brokerage | 62,010 | 52,859 | ||||||||||
Accrued payroll expenses | 33,608 | 29,574 | ||||||||||
Accrued expenses | 12,149 | 15,091 | ||||||||||
Income taxes payable | 4,655 | 2,203 | ||||||||||
Deferred revenue | 77,944 | 71,331 | ||||||||||
Total current liabilities | 222,485 | 198,178 | ||||||||||
Long-term debt, net of current portion | 255,263 | 266,660 | ||||||||||
Deferred income taxes | 35,421 | 35,417 | ||||||||||
Other liabilities | 2,248 | 2,208 | ||||||||||
Stockholders’ equity | ||||||||||||
Common stock | 138 | 138 | ||||||||||
Paid-in capital | 126,943 | 128,010 | ||||||||||
Retained earnings | 108,391 | 95,299 | ||||||||||
Accumulated other comprehensive loss | (1,314 | ) | (1,514 | ) | ||||||||
Total stockholders’ equity | 234,158 | 221,933 | ||||||||||
$ | 749,575 | $ | 724,396 | |||||||||