32% growth in 2nd qtr sales Reported By American Business Information Inc.OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb.--(BUSINESS WIRE)--July 28, 1998--American Business Information Inc. (Nasdaq: ABIIA/ABIIB) today announced record results for the second quarter. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $62.1 million for the second quarter 1998, up 32 percent over $47.0 million for the same period last year. Net income for the second quarter was $15.5 million or $0.31 per share, as compared to $2.9 million or $0.06 per share in the second quarter of 1997. Chairman and chief executive officer, Vinod Gupta commented, "Sales for the second quarter were very strong at $62.1 million, representing 32 percent growth over last year's second quarter. Perhaps what's more impressive is the fact that we exceeded our internal growth projections. I'm happy to report that internal growth came in at 22 percent, which was ahead of our 20 percent target. We also experienced an improvement in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become which increased from 29 percent to 30 percent." Gupta further stated, "There is substantial unmet demand for our database, and we are demonstrating the ability to meet that demand through our multiple distribution channels, especially the Internet, and our extensive product offerings." -0-
SELECTED FINANCIAL HIGHLIGHTS (In thousands, except per share amounts)
Three Months Ended June 30,
1998 1997 %Change
Net Sales $62,076 $47,008 32%
Operating Cash Flow (EBITDA) 18,887 13,818 37%
Operating Income 12,229 4,762 157%
Net Income 15,498 2,910 433%
Per Share Data
Cash Flow per Share(A) $0.44 $0.25 76%
EPS - Actual(Basic) 0.31 0.06 417%
(A) Net income plus depreciation and amortization per share.
-0- Earnings Before Interest, Taxes, Depreciation and Amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Net income for second quarter 1998 included a one-time net gain of $14.4 million for certain investment transactions and $1.2 million in charges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the acquisition of Database America. Similarly, second quarter 1997 included charges of $5.9 million relating to the acquisition of Database America. Excluding the above-mentioned charges and gains, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income for second quarter 1998 would have been $7.7 million, up from pro forma net income of $6.7 million in second quarter 1997. Earnings per share for second quarter 1998 would have been $0.16 per share, up from $0.14 per share during the same period in 1997. The acquisition of Walter Karl, which was slightly dilutive, and an increase in the effective tax rate from 38 percent to 40 percent had a negative impact on the quarter of $0.01 per share. Net sales for the first six months of 1998 were $117.5 million, an increase of 32 percent over $89.0 million for the first six months of 1997. EBITDA for the first half of 1998 increased 34 percent to $35.5 million, up from $26.4 million for the same period last year. Net income for the first six months of 1998 was $9.1 million or $0.18 per share, as compared to a loss of $44.3 million or $0.93 per share in the first half of 1997. The first half of 1998 included a one-time net gain of $14.4 million for certain investment transactions, charges of $3.9 million relating to the acquisition of Database America and acquisition-related and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $14.3 million. Similarly, results for the first six months of 1997 included charges of $9.8 million relating to the acquisition of Database America and $51.8 million for the write-offs in connection with the acquisition of Database America and other related integration and organizational restructuring costs. Excluding these charges, net income for the first half of 1998 would have been $15.0 million or $0.31 per share, compared to $12.9 million or $0.27 per share for the first half of 1997. Gupta went on to say, "During the quarter we continued our aggressive acquisition program having acquired JAMI Marketing Services in May and, more recently, a small Canadian company, Contacts Target Marketing. The acquisition of Walter Karl, which was completed at the end of the first quarter, has now been well integrated and the cost synergies Cost Synergy In the context of mergers, cost synergy is the savings in operating costs expected after two companies, who compliment each other's strengths, join. Notes: The savings in operating costs usually come in the form of laying off employees. captured. In fact, by June the Walter Karl operation had become accretive and should remain accretive." "Our Internet revenue growth over last year was outstanding, increasing over 100 percent. Thanks to recent agreements with major Internet players such as Yahoo!, America Online See AOL. and GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) Superpages, users can now find our quality data and value-added pay services on thousands of Internet sites. We are revolutionizing the way people find information. The explosive growth of the Internet clearly demonstrates that we have the best database in the industry," stated Gupta. The information in this press release concerning the company's growth initiatives, acquisition of JAMI Marketing Services and Contacts Target Marketing and other potential acquisitions contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the md Section 27A of the Securities Act of 1933, which are subject to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " created by those sectioesults may differ materially due to risks and unoduct returns, changes in technology, continuerate name to infoUSA Inc. and begin trading on the Nasdaq National Market under the new symbols "IUSAA" anucts and data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a services in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada. Nearly two million customers use the c72, the Company is headquartered at 5711 SouthERICAN BUSINESS INFORMATION, INC. r-to-Date Year-to-Date OSTS OSTS On-Site Sewage Treatment Systems OSTS Oil Shale and Tar Sands OSTS Old School Texas Surfing (Counter-Strike clan) OSTS Ofice of Storage and Transporation Systems AND EXPENSES Database and production cos7 42,246 109,326 129,801 OPERATING INCOME Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (LOSS) 12,229 4,762 8,130 (40,845) Investment income and 13,233 41 12,950 83 other, net 25,462 4,803 21,080 (40,762) Income taxes 9,964 1,893 12,022 3,524 NET INCOME (LOSS) $15,498 $ 2,910 $ 9,058 ($44,286) EARNINGS PER SHARE DATA (Basic) Net income (loss) $ 0.31 $ 0.06 $ 0.18 $ (0.93) Average shares 49,327 48,678 49,018 47,552 outstanding EARNINGS PER SHARE DATA (Diluted) Net income (loss) $ 0.30 $ 0.06 $ 0.18 $ (0.93) Average shares 50,946 49,461 50,474 48,430 outstanding PRO FORMA RESULTS: Pro forma, excluding acquisition-related charges, amortization of acquired database costs and purchased data processing software, the realized gain Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. on the sale of Metromail common stock, certain interest expense and investment losses Operating Income 13,805 10,687 26,317 20,782 Net Income 7,703 6,651 15,053 12,936 Earnings Per Share (Basic) $ 0.16 $ 0.14 $ 0.31 $ 0.27 Earnings Per Share (Diluted) $ 0.15 $ 0.13 $ 0.30 $ 0.27 -0- AMERICAN BUSINESS INFORMATION, INC. SELECTED CONDENSED con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. CONSOLIDATED FINANCIAL INFORMATION (In thousands, except per share amounts) Year-to-Date Year-to-Date June 30, June 30, 1998 1997 Income Statement Information: Total Net Sales $ 117,456 $ 88,956 Database & Production Costs 31,491 24,526 Selling, General & 50,497 38,065 Administrative Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") 35,468 26,365 Depreciation 2,343 1,845 Amortization of 6,808 3,738 Intangible Assets Amortization of 3,935 9,829 Acquired Databases Acquisition-related Charges 14,252 51,798 Operating Income (Loss) $ 8,130 $(40,845) Pro Forma Information: EBITDA $ 35,468 $ 26,365 Depreciation 2,343 1,845 Amortization of 6,808 3,738 Intangible Assets Pro Forma Operating Income 26,317 20,782 Other Income (Expense), net (1,202) 83 Pro Forma Taxes 10,062 7,929 Pro Forma Net Income $ 15,053 $ 12,936 Pro Forma EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. (Basic) $ 0.31 $ 0.27 Pro Forma EPS (Diluted) $ 0.30 $ 0.27 Average Shares 49,018 47,552 Outstanding - Basic Average Share June 30, June 3osts 16,086 13,111 Selling, General & 27,103 20,079 Administrative Earnings Before Interest, Taxes,Depreciation and Amortization ("EBITDA") 18,887 tabases Acquisition-related Charges reciation 1,225net (919) 41 Pro Forma Taxes 5,183 4,077 .14 Pro Forma EPS (Diluted) nding - Diluted EBITDA as a % of Net Sales Fax: (402) 537-6197 E-Mail: cfo@abii.com KEYWORD: NEBRASKA INDUSTRY KEYWORD: COMED with Hyperlinks to your home page. URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com |
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