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.infoUSA.com
Executive Office: (402) 596-8900• Fax (402) 596-8902
Internet: www.infoUSA.com
FOR IMMEDIATE RELEASE
January 31, 2008
January 31, 2008
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 FY2007 Revenue
| • | Record Revenue of $185.8 Million for Fourth Quarter and Record | |
| Revenue of $688.8 million for Fiscal Year 2007. |
(OMAHA, NE) — The following table presents the financial results and selected balance sheet items forinfoUSAÒ (Nasdaq: IUSA) for the fourth quarter and full fiscal year 2007 ending on December 31, 2007:
| (unaudited) | (unaudited) | |||||||||||||||
| 4th Quarter | 4th Quarter | Fiscal Year | Fiscal Year | |||||||||||||
| (Amounts in thousands, except per share amounts) | 2006 | 2007 | 2006 | 2007 | ||||||||||||
| Net sales | $ | 125,116 | $ | 185,844 | $ | 434,876 | $ | 688,773 | * | |||||||
| Cost of goods and services | 37,770 | 77,309 | 116,487 | 276,042 | ||||||||||||
| Selling, general and administrative | 58,429 | 72,784 | 224,879 | 285,736 | ||||||||||||
| Depreciation (1) | 3,948 | 5,770 | 14,020 | 21,383 | ||||||||||||
| Amortization of intangible assets | 3,370 | 4,004 | 14,909 | 17,358 | ||||||||||||
| Operating income | 21,599 | 25,977 | 64,581 | 88,254 | * | |||||||||||
| Other expense (2) | (3,193 | ) | (5,344 | ) | (11,342 | ) | (20,527 | ) | ||||||||
| Income before taxes | 18,406 | 20,633 | 53,239 | 67,727 | ||||||||||||
| Income taxes | 7,393 | 8,084 | 19,939 | 25,470 | ||||||||||||
| Net income | 11,013 | 12,549 | 33,300 | 42,257 | ||||||||||||
| Earnings per share | $ | 0.20 | $ | 0.22 | $ | 0.61 | $ | 0.76 | ||||||||
| Weighted average shares outstanding | 55,424 | 56,620 | 54,974 | 55,809 | ||||||||||||
| Total debt | $ | 259,890 | $ | 283,227 | $ | 259,890 | $ | 283,227 | ||||||||
| Capital expenditures | 6,067 | 3,983 | 21,054 | 21,338 | ||||||||||||
| EBITDA | 29,213 | 35,914 | 93,978 | 127,782 | ||||||||||||
| (1) | Depreciation of tangible assets and amortization of capitalized software. | |
| (2) | Investment income and interest expense. | |
| * | Includes one-time revenue of $9.9 million, and operating income of $9.2 million for lawsuit settlement. |
RESULTS OF OPERATIONS
Vin Gupta, Founder, Chairman and Chief Executive Officer ofinfoUSA, stated, “2007 was a record year forinfoUSA. We experienced growth in our core businesses, realized the impact of our successful integration of Opinion ResearchÒ, and completed several additional acquisitions in the market research industry and additional acquisitions in database marketing as well. We continue to focus on our strategy of becoming a one-stop, fully integrated provider of sales and marketing productivity tools to businesses and the public sector.”
infoUSA continued to expand the scope of its Marketing Research Group during the fourth quarter. We acquired Northwest Research Group, located in Boise, Idaho. The acquisition of Northwest Research Group providesinfoUSA with access to the market research industry in the western United States. Additionally, Northwest Research Group facilitatesinfoUSA’s entry into the transportation marketing arena and augments the Company’s existing customer satisfaction expertise by providing additional senior level support.
infoUSA also completed the acquisition of SECO Financial during the fourth quarter. SECO Financial that has joinedinfoUSA’s Data Group is a leader in financial services industry marketing. Both the SECO Financial and Northwest Research Group acquisitions were effective October 1, 2007.
FINANCIAL HIGHLIGHTS
During the fourth quarter of 2007,infoUSA delivered record revenue of $185.8 million, which includes $67.0 million for the Marketing Research Group that was established in December 2006 and has grown through acquisitions during 2007. Excluding the Marketing Research Group, the Company’s revenue was $118.8 million for the fourth quarter of 2007, compared to $110.5 million for the same period in 2006, an increase of 8%.
This strong fourth quarter helpedinfoUSA achieve record full year revenue of $688.8 million, which includes $221.5 million for the Marketing Research Group. Excluding the Marketing Research Group, the Company’s revenue was $467.3 million for fiscal year 2007, an increase of 11% over revenues of $420.2 million in fiscal year 2006.
Revenue for the full year included $9.9 million received from the final settlement of a lawsuit, which was originally commenced in December 2001, against Naviant, Inc. (now known as BERJ, LLP) in the District Court for Douglas County, Nebraska for breach of a database license agreement. On July 12, 2007, the District Court entered an Amended Order of Judgment in the Company’s favor in the amount of $9.75 million, plus interest (the “Order”). On August 10, 2007, the Company and Naviant agreed not to pursue further appeals of the Order and agreed to settle this matter for approximately $11.2 million, less attorney fees and costs. On August 16, 2007, pursuant to that agreement, the court distributed approximately $9.9 million in net proceeds to the Company.
infoUSA’s fourth quarter operating income was $26.0 million, compared to $21.6 million in the fourth quarter of 2006.
For the full year,infoUSA’s operating income increased to $88.3 million, which includes $9.2 million from the Naviant settlement, net of related expenses, from $64.6 million in 2006.
infoUSA’s earnings per share for the fourth quarter of 2007 were $0.22 versus $0.20 in the fourth quarter of 2006. EBITDA for the fourth quarter was $35.9 million versus $29.2 million in the fourth quarter of 2006.
For the full year,infoUSA’s earnings per share were $0.76 as compared to $0.61 in 2006. EBITDA for full year 2007 was $127.8 million, which includes $9.2 million from the Naviant settlement, as compared to $94.0 million in 2006.
The segment revenue for the fourth quarter and FY 2007 was as follows:
| • | Revenue for the Data Group in the fourth quarter was $81.6 million, compared to $76.7 million for the same period last year. Growth for the quarter for the Data Group was 6%. | |
| For the fiscal year 2007, revenue for the Data Group was $330.5 million, which includes $9.9 million for the Naviant settlement, as compared to $299.4 million for the same period last year. Growth for the year for the Data Group was 10%. Excluding the Naviant settlement, growth for the year for the Data Group was 7%. | ||
| • | Revenue for the Services Group in the fourth quarter was $37.2 million compared to $33.8 million for the same period last year. Growth for the quarter for the Services Group was 10%. | |
| Revenue for the Services Group for the fiscal year 2007 was $136.8 million as compared to $120.9 million for the same period last year. Growth for the year for the Services Group was 13%. | ||
| • | The Marketing Research Group is composed of Opinion Research and Macro International, acquired on December 4, 2006; Guideline acquired on August 20, 2007; NWC Research acquired on July 27, 2007; and Northwest Research Group effective October 1, 2007. Revenue for the Marketing Research Group in the fourth quarter was $67.0 million compared to $14.6 million for the same period last year, which included one month of activity for Opinion Research and Macro International. | |
| Revenue for the Marketing Research Group for the fiscal year 2007 was $221.5 million as compared to $14.6 million for the same period last year. |
The following are highlights ofinfoUSA’s accomplishments in the fourth quarter of 2007:
| • | Completed the acquisitions of Northwest Research Group and SECO Financial. | |
| • | Salesgenie.com announced the appointment of Mark Israelsen to President of Salesgenie.com, which is based in Silicon Valley (San Carlos), California. Mr. Israelsen has experience in product development, systems integration and marketing which will better position us in our efforts to take Salesgenie.com to the next level. Salesgenie.com and subscription strategy are continuing to perform well. It’s our intent to continue to invest in technology and marketing of this service. | |
| • | Announced that Salesgenie.com will air advertisements in 3 spots during the Super Bowl XLII, February 3, 2008 on the FOX network. The spots will be aired during the Super Bowl XLII’s pre-game show, first and third quarters. |
| • | Announced the opening in early January 2008 ofinfoUK.com, a new Manchester (England) based group to compile a database of all businesses in the United Kingdom. The database will be sold to small and large customers in the form of customized list products, online access, subscription services and license agreements to value added resellers. | |
| • | Continued collection of photographs of businesses in the United States and Canada. Currently we have 2.5 million photographs, and we will be adding an additional 3 million. The high quality photos have been very well received in the market and are being used by almost all of the major search engines. | |
| • | Continued to capture more information from the websites of businesses, such as description, executive names, titles and hours of operation. |
OTHER INFORMATION
Deferred Revenue related to the First Data Resources December 2005 early termination of their license agreement has been fully recognized as of December 31, 2007. Additionally, they have notified the Company that they will not be renewing their business database license agreement.
The business performed very well in the fourth Quarter of 2007 and, we believe, will continue to do so in 2008. However, due to economic uncertainties in the broader economy, combined with changes in the profitability mix of our business model due to recent acquisitions, we have decided not to provide guidance in 2008.
NON-GAAP INFORMATION
In addition to disclosing results determined in accordance with generally accepted accounting principles, or GAAP,infoUSA also discloses earnings before interest expense, income 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 the Company’s 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.
FORMATION OF SPECIAL COMMITTEE
Effective December 24, 2007, the Board of Directors ofinfoUSA formed a Special Committee for Internal Investigation and Derivative Litigation. The Special Committee has been established in response to the consolidated complaintIn re infoUSA, Inc. Shareholders Litigation, Consol. Civil Action No. 1956-CC (Del. Ch.), and in response to a previously-disclosed informal investigation into the Company by the U.S. Securities and Exchange Commission (“SEC”) and the related SEC request for the voluntary
production of documents concerning related party transactions, expense reimbursement, other corporate expenditures, and certain trading in the Company’s securities. In view of the fact that the investigation has only recently begun, the Company does not know whether, or the extent to which, the results of the investigation may impact the Company’s historical financial statements.
CONFERENCE CALL
The Company will host its fourth quarter conference call on February 1, 2008 at 4:00 pm Eastern time. To access the conference call, please dial 866-713-8566 (international 617-597-5325), passcode 58364011, approximately 10 minutes prior to the start of the call. A replay of the call will be available from 7:00 pm Eastern time, February 1, 2008 through midnight Eastern Time, February 8, 2008. The replay number is 888-286-8010 (international 617-801-6888), passcode 61686172. 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 the leading provider of business and consumer databases for sales leads & mailing lists, 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 12 proprietary databases 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, 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 72-hour 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.
(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 TWELVE | ||||||||||||||||
| FOR THE QUARTER ENDED | MONTHS ENDED | |||||||||||||||
| December | December | December | December | |||||||||||||
| 31, 2006 | 31, 2007 | 31, 2006 | 31, 2007 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net sales | $ | 125,116 | $ | 185,844 | $ | 434,876 | $ | 688,773 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of goods and services | 37,770 | 77,309 | 116,487 | 276,042 | ||||||||||||
| Selling, general and administrative | 58,429 | 72,784 | 224,879 | 285,736 | ||||||||||||
| Depreciation and amortization of operating assets | 3,948 | 5,770 | 14,020 | 21,383 | ||||||||||||
| Amortization of intangible assets | 3,370 | 4,004 | 14,909 | 17,358 | ||||||||||||
| 103,517 | 159,867 | 370,295 | 600,519 | |||||||||||||
| Operating income | 21,599 | 25,977 | 64,581 | 88,254 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Investment income | 168 | 80 | 536 | 740 | ||||||||||||
| Other charges | 128 | 83 | (68 | ) | 47 | |||||||||||
| Interest expense | (3,489 | ) | (5,507 | ) | (11,810 | ) | (21,314 | ) | ||||||||
| Income before income taxes | 18,406 | 20,633 | 53,239 | 67,727 | ||||||||||||
| Income taxes | 7,393 | 8,084 | 19,939 | 25,470 | ||||||||||||
| Net income | $ | 11,013 | $ | 12,549 | $ | 33,300 | $ | 42,257 | ||||||||
| BASIC & DILUTED EARNINGS PER SHARE: | ||||||||||||||||
| Basic earnings per share | $ | 0.20 | $ | 0.22 | $ | 0.61 | $ | 0.76 | ||||||||
| Diluted earnings per share | $ | 0.20 | $ | 0.22 | $ | 0.60 | $ | 0.75 | ||||||||
| Basic weighted average shares outstanding | 55,424 | 56,620 | 54,974 | 55,809 | ||||||||||||
| Diluted weighted average shares outstanding | 55,805 | 56,670 | 55,340 | 55,976 | ||||||||||||
The following provides a reconciliation of net income to EBITDA:
| FOR THE QUARTER | FOR THE TWELVE MONTHS | |||||||||||||||
| ENDED | ENDED | |||||||||||||||
| December | December | December | December | |||||||||||||
| 31, 2006 | 31, 2007 | 31, 2006 | 31, 2007 | |||||||||||||
| Net income | $ | 11,013 | $ | 12,549 | $ | 33,300 | $ | 42,257 | ||||||||
| Interest expense | 3,489 | 5,507 | 11,810 | 21,314 | ||||||||||||
| Income taxes | 7,393 | 8,084 | 19,939 | 25,470 | ||||||||||||
| Depreciation and amortization of operating assets | 3,948 | 5,770 | 14,020 | 21,383 | ||||||||||||
| Amortization of intangible assets | 3,370 | 4,004 | 14,909 | 17,358 | ||||||||||||
| EBITDA | $ | 29,213 | $ | 35,914 | $ | 93,978 | $ | 127,782 | ||||||||
infoUSA INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
Consolidated Balance Sheets
(In thousands)
| December 31, | December 31, | |||||||
| 2006 | 2007 | |||||||
| (unaudited) | ||||||||
Assets | ||||||||
| Cash and cash equivalents | $ | 4,433 | $ | 9,924 | ||||
| Marketable securities | 2,665 | 2,285 | ||||||
| Accounts receivable | 76,628 | 78,503 | ||||||
| Accounts receivable-list brokerage | 68,437 | 68,439 | ||||||
| Accounts receivable – unbilled services | 20,794 | 24,502 | ||||||
| Deferred income taxes | 3,522 | 4,767 | ||||||
| Prepaid expenses | 7,268 | 9,425 | ||||||
| Deferred marketing costs | 3,485 | 2,234 | ||||||
| Total current assets | 187,232 | 200,079 | ||||||
| Property and equipment, net | 61,172 | 68,069 | ||||||
| Intangible assets, net | 489,795 | 534,028 | ||||||
| Other assets | 11,376 | 12,682 | ||||||
| $ | 749,575 | $ | 814,858 | |||||
Liabilities | ||||||||
| Current portion of long-term debt | 4,627 | 4,944 | ||||||
| Accounts payable | 27,474 | 23,823 | ||||||
| Accounts payable-list brokerage | 62,028 | 63,807 | ||||||
| Accrued payroll expenses | 33,608 | 39,507 | ||||||
| Accrued expenses | 12,149 | 21,103 | ||||||
| Income taxes payable | 4,655 | 4,286 | ||||||
| Deferred revenue | 77,944 | 71,922 | ||||||
| Total current liabilities | 222,485 | 229,392 | ||||||
| Long-term debt, net of current portion | 255,263 | 278,283 | ||||||
| Deferred income taxes | 35,421 | 30,418 | ||||||
| Other liabilities | 2,248 | 6,925 | ||||||
Stockholders’ equity | ||||||||
| Common stock | 138 | 141 | ||||||
| Paid-in capital | 126,943 | 137,221 | ||||||
| Retained earnings | 108,391 | 131,226 | ||||||
| Accumulated other comprehensive income (loss) | (1,314 | ) | 1,252 | |||||
| Total stockholders’ equity | 234,158 | 269,840 | ||||||
| $ | 749,575 | $ | 814,858 | |||||