EXHIBIT 99.1
![]() | 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 | ||
JULY 18, 2003 | ||
CONTACT: | ||
VIN GUPTA — CHAIRMAN & CHIEF EXECUTIVE OFFICER | ||
Phone: (402) 596-8900 • Fax: (402) 339-0265 | ||
E-Mail: vin.gupta@infoUSA.com | ||
STORMY DEAN — CHIEF FINANCIAL OFFICER | ||
Phone: (402) 593-4505 • Fax: (402) 339-0265 | ||
E-Mail: stormy.dean@infoUSA.com | ||
LAUREL GOTTESMAN — DIRECTOR, INVESTOR RELATIONS | ||
Phone: (402) 593-4535 • Fax: (402) 339-0265 | ||
E-Mail: laurel.gottesman@infousa.com |
infoUSA Reports 6% Revenue Growth and 21%
Operating Income Growth in Second Quarter 2003
(OMAHA, NE) —infoUSA® (Nasdaq: IUSA) The following table presents the financial results, key financial highlights of the company’s operations and selected balance sheet items for the second quarter of 2003.
(amounts in thousands, except per share amounts) | 2nd Qtr 2002 | 2nd Qtr 2003 | YTD 2002 | YTD 2003 | ||||||||||||
Net sales | 74,042 | 78,831 | 150,765 | 154,911 | ||||||||||||
EBITDA (see table on income statement) | 19,701 | 22,256 | 43,053 | 43,734 | ||||||||||||
Operating income | 12,525 | 15,154 | 28,773 | 29,457 | ||||||||||||
Depreciation and amortization of operating assets | 3,824 | 3,707 | 7,592 | 7,558 | ||||||||||||
Intangible asset amortization | 3,325 | 3,326 | 6,661 | 6,650 | ||||||||||||
Non-cash stock compensation | 27 | 69 | 27 | 69 | ||||||||||||
EBITDA (see table on income statement) | 19,701 | 22,256 | 43,053 | 43,734 | ||||||||||||
Net income | 4,226 | 4,725 | 9,092 | 11,580 | ||||||||||||
Total debt | 207,476 | 169,003 | 207,476 | 169,003 | ||||||||||||
Interest expense | 4,744 | 3,596 | 9,158 | 7,257 | ||||||||||||
Capital expenditures | 1,561 | 1,670 | 3,497 | 3,596 | ||||||||||||
Accounts receivable (DSO) — without Walter Karl (1) | 57 | 46 | 57 | 47 | ||||||||||||
(1) | Walter Karl is a list broker. Trade accounts receivable and trade accounts payable are reflected at gross on the balance sheet. |
RESULTS OF OPERATIONS
Vin Gupta, Chairman and CEO,infoUSA, said, “We are excited about the strong revenue and operating income growth we experienced during the second quarter of 2003. We attribute our revenue growth to the recovering economy and to high demand for our sales leads. We have successfully launched ourSales Genie® product, which offers customers a dedicated computer that embeds our database and sales prospecting software. The data is continuously updated and available on demand, for an affordable monthly subscription price. We have also been successful at providing our large business customers with integrated database marketing and email management solutions that take advantage of our proprietary data assets andYesmail/ClickAction®technology. ”
Gupta continued, “We are committed to growing our revenue internally. We believe that the market opportunity for our products and services exceeds $10 billion. Our entire management is focused on growing our revenue by increasing our market share.”
“In addition to growing our revenue, we continue to be committed to the goal of de-leveraging the company. Our strong operating income and cash flow enabled us to significantly reduce long-term debt to $169 million at the end of the second quarter, from $207 million the prior year. We have recently restructured our long-term credit facility and used a portion of the proceeds to purchase and redeem $31.2 million of our high yield bonds. We are also in the process of calling another $30.75 million of the bonds during this month. The bond redemption will reduce our future interest payments and provide the company with greater financial flexibility. In conclusion, we anticipate that internal revenue growth, combined with strict expense control and lower interest costs, will enable us to accelerate our future growth in earnings and in shareholder value.”
Highlights of Second Quarter:
Net Sales, Operating Income and EBITDA
Net sales for the second quarter 2003 were $78.8 million, up 6% from $74.0 million in the second quarter of 2002. Operating income grew 21%, to $15.2 million versus $12.5 million for the second quarter of the prior year. The increase in operating income resulted primarily from higher revenue from both the Large Business and Small Business divisions of the company. EBITDA for the second quarter grew to $22.3 million, or 28% of sales, from $19.7 million the prior year as a result of the growth in operating income.
Earnings per Share
Earnings per share for the second quarter of 2003 was $0.09 versus $0.08 for the comparable quarter of 2002. Special charges included in 2003 earnings per share totaled $3.8 million, and consisted of $2.3 million for the write-off of deferred financing charges for both the new long-term $145 million credit facility and for the redemption of $31.2 million of high yield bonds. The bonds were redeemed at a premium of $.0475 resulting in the remaining $1.5 million of special charges for the second quarter 2003. Excluding these special charges, which reduced earnings per share by $0.05 per share, earnings per share for the second quarter of 2003 was $0.14 per share, up 40% from $0.10 per share for the second quarter of 2002.
OPERATING HIGHLIGHTS
Large Customer Group — Donnelley Marketing, Walter Karl and Database Licenses
The Large Customer group reported second quarter 2003 revenue of $38.7 million, up 4% from $37.1 million for the comparable quarter of the prior year. The group has been able to grow its revenue by better training of its sales force in selling the company’s proprietary database products, which are of the highest quality in the industry. Based upon this superior quality, the company is able to command a higher price than its competitors.
Small Business Group
The Small Business Group reported second quarter 2003 revenue of $40.1 million, up 9% from $36.9 million the prior year. The group experienced double-digit revenue growth in its highly profitable Internet division, as well as in its other sales leads products.
As previously announced, the company has elected to provide public notice of intent by any key officers or insiders to sellinfoUSA shares. Consistent with this policy, the company reports that a few of its officers have indicated that they plan to potentially sell up to a combined total of 200,000 shares over the next 90 days in order to reduce their broker debt associated with the initial purchase of these shares. The total share amount represents a small fraction of theinfoUSA stock held by these individuals. Vin Gupta, Chairman and CEO, will not be selling any of his shares.
Conference Call
The company will host its second quarter conference call on Monday, July 21, at 2:00 PM Eastern time. To access the conference call, please dial 719/457-2666, passcode # 146057, approximately 10 minutes prior to the start of the call. A replay of the call will be available from 5:00 PM Eastern time, July 21st, through midnight Eastern Time, July 28. The replay number is 719/457-0820, passcode # 146057. A live webcast of the conference call will be available at the company’s web site, http://www.infousa.com, by clicking on the Investor Relations button on theinfoUSA Home page.
AboutinfoUSA
infoUSA (www.infoUSA.com), founded in 1972, is the 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, including Yahoo! (Nasdaq:YHOO — news) and America Online (NYSE: AOL). 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. 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 INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
FOR THE QUARTERS ENDED | FOR THE SIX MONTHS ENDED | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2002 | 2003 | 2002 | 2003 | ||||||||||||||
Net sales | 74,042 | 78,831 | 150,765 | 154,911 | |||||||||||||
Costs and expenses: | |||||||||||||||||
Database and production costs | 21,313 | 22,240 | 42,573 | 43,140 | |||||||||||||
Selling, general and administrative | 31,966 | 33,864 | 63,847 | 66,998 | |||||||||||||
Depreciation and amortization of operating assets | 3,824 | 3,707 | 7,592 | 7,558 | |||||||||||||
Amortization of intangible assets | 3,325 | 3,326 | 6,661 | 6,650 | |||||||||||||
Non-cash stock compensation | 27 | 69 | 27 | 69 | |||||||||||||
Restructuring costs | 645 | 430 | 812 | 985 | |||||||||||||
Litigation settlement charge | 307 | — | 307 | — | |||||||||||||
Acquisition costs | 110 | 41 | 173 | 54 | |||||||||||||
61,517 | 63,677 | 121,992 | 125,454 | ||||||||||||||
Operating income | 12,525 | 15,154 | 28,773 | 29,457 | |||||||||||||
Other income (expense): | |||||||||||||||||
Investment income | 28 | 146 | 98 | 828 | |||||||||||||
Other charges | (1,183 | ) | (3,810 | ) | (5,240 | ) | (4,145 | ) | |||||||||
Interest expense | (4,744 | ) | (3,596 | ) | (9,158 | ) | (7,257 | ) | |||||||||
Income before income taxes | 6,626 | 7,894 | 14,473 | 18,883 | |||||||||||||
Income taxes | 2,400 | 3,169 | 5,381 | 7,303 | |||||||||||||
Net income | 4,226 | 4,725 | 9,092 | 11,580 | |||||||||||||
BASIC & DILUTED EARNINGS PER SHARE: | |||||||||||||||||
Basic earnings per share | 0.08 | 0.09 | 0.18 | 0.23 | |||||||||||||
Diluted earnings per share | 0.08 | 0.09 | 0.18 | 0.23 | |||||||||||||
Basic weighted average shares outstanding | 50,923 | 51,221 | 50,908 | 51,183 | |||||||||||||
Diluted weighted average shares outstanding | 51,088 | 51,239 | 51,145 | 51,188 |
The following provides a reconciliation of net income to EBITDA:
FOR THE QUARTERS ENDED | FOR THE SIX MONTHS ENDED | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2002 | 2003 | 2002 | 2003 | ||||||||||||||
Net Income | 4,226 | 4,725 | 9,092 | 11,580 | |||||||||||||
Other charges | 1,183 | 3,810 | 5,240 | 4,145 | |||||||||||||
Investment income | (28 | ) | (146 | ) | (98 | ) | (828 | ) | |||||||||
Interest expense | 4,744 | 3,596 | 9,158 | 7,257 | |||||||||||||
Income taxes | 2,400 | 3,169 | 5,381 | 7,303 | |||||||||||||
Depreciation and amortization of operating assets | 3,824 | 3,707 | 7,592 | 7,558 | |||||||||||||
Amortization of intangible assets | 3,325 | 3,326 | 6,661 | 6,650 | |||||||||||||
Non-cash stock compensation | 27 | 69 | 27 | 69 | |||||||||||||
EBITDA | 19,701 | 22,256 | 43,053 | 43,734 | |||||||||||||