infoUSA Reports Outlook for Fourth Quarter 2000 and Fiscal Year 2001.Business Editors & Technology Writers 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)--Nov. 6, 2000 infoUSA The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. , (Nasdaq:IUSA IUSA Indiana University Student Association ) the leading provider of proprietary business and consumer databases and sales and marketing solutions, announced today its business outlook for the fourth quarter of 2000 and fiscal year 2001. The following tables and statements are based exclusively on current expectations and do not include the potential impact of any mergers, acquisitions or other business combinations or divestitures that may be completed after the date of this release. These statements are forward looking, and actual results may differ materially. infoUSA undertakes no obligation to update or revise any 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. , whether as a result of new information, future events or otherwise. For the remaining fourth quarter of 2000, and during fiscal year 2001, infoUSA expects to benefit from growth in revenue from its Large Business Group, Donnelley Marketing, as a result of Donnelley's recently announced reorganization into eight vertical market groups. Each of these groups will function as a separate entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. profit center, leveraging infoUSA's premier databases to develop the technology, applications and solutions that are specific to customers within each industry. Donnelley also plans to aggressively target these vertical market customers with its proprietary infoConnect software. infoConnect is a leading CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. (Customer Relationship Management) and customer integration solution that aggregates and integrates customer data and information enterprise-wide. This information is then made available online and in real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. , giving customers a full-time full-time adj. Employed for or involving a standard number of hours of working time: a full-time administrative assistant. full Internet gateway (1) See cable/DSL gateway. (2) A router or server that converts IP packets to IPX, AppleTalk or some other non-IP format and vice versa. It is used to connect non-IP networks to the Internet. for targeting and connecting with customers. As the only company in the industry with both proprietary consumer and business databases, infoUSA alone has the ability to offer this revolutionary software solution for both business and consumer data. The company expects that infoConnect will be the linchpin linch·pin or lynch·pin n. 1. A locking pin inserted in the end of a shaft, as in an axle, to prevent a wheel from slipping off. 2. in its suite of leading edge vertical market products and applications, particularly given the increasing number of companies actively seeking to adopt and implement CRM strategies.
Outlook - Fourth Quarter 2000
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BUSINESS OUTLOOK - 4q 2000
(in thousands)
infoUSA infoUSA VYP listbazaar Business Total
Core .com .com .com Credit.com InfoUSA Inc.
Business (a) (b)
------------- ---------------------------------------------------
REVENUE 72,000 7,100 70 105 335 76,000
EBITDA 19,000 (5,600) (800) (300) (600) 14,500
-- (a)Core Business includes intercompany royalty revenue from
Internet companies and excludes Internet company operating
expenses.
-- (b)Total infoUSA Inc. includes revenue and operating expenses
for Internet companies. Revenue and expense amounts for
infoUSA.com are proportional to infoUSA Inc. (Parent Company)
minority interest.
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infoUSA Inc. reported sales for the third quarter of 2000 of $75.9 million and expects corresponding revenues for the fourth quarter 2000 to be sequentially in line with this number. However, the company expects 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 for the fourth quarter to grow from $12.9 million in the third quarter to approximately $14.5 million. Anticipated core business revenues of $72 million are expected to produce approximately $19 million in EBITDA. The increases in both core and total EBITDA are a result of previously announced cost reductions in core business advertising and capital expenditures as well as lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. at Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the subsidiaries listBazaar.com, businessCreditUSA.com and VideoYellowPages.com.
Outlook - Fiscal Year 2001
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BUSINESS OUTLOOK - FY 2001
(in thousands)
infoUSA Core infoUSA Total
Business (a) .com infoUSA Inc.(b)
--------------------------------------------------------------
REVENUE 307,000 38,000 327,000
EBITDA 100,000 (10,000) 91,500
-- (a)Core Business includes royalty revenue from infoUSA.com and
excludes infoUSA.com operating expenses. Assumes other
Internet subsidiaries have been absorbed by Parent Company.
-- (b)Total infoUSA Inc. includes proportional minority interest
revenue and operating expenses for infoUSA.com. Assumes other
Internet subsidiaries have been absorbed by Parent Company.
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Fiscal year 2001 sales are expected to grow 6% over 2000 levels, to approximately $327 million. Part of this expected growth is attributable to increased revenues at Donnelley Marketing, as vertical market groups gain momentum. The company also anticipates that the Small Business Group will continue its trend of improving sales and profitability in its vertical market and mid-size company divisions. Continued revenue growth is also forecast for infoUSA's field sales offices, as the company continues to build upon its success using one-on-one one-on-one adj. 1. Consisting of or being direct communication or exchange between two people: one-on-one instruction. 2. Sports Playing directly or exclusively against a single opponent. consultative selling Consultative selling emphasizes customer needs and meeting those needs with solutions combining products and/or services. A consultative salesperson typically provides detailed instruction or advice on which solution best meets these needs. to small businesses. infoUSA also plans to grow revenues in its Consumer/Retail division, as it introduces new products and productivity software, encourages subscription sales and extends the retail selling cycle by eliminating expiration dates Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. on products. During 2001, the company also expects to benefit from strong licensing and product sales growth in its infoUSA.com subsidiary. A third quarter 2001 introduction is planned for SalesGenie(TM), infoUSA's new Internet-based one stop marketing and CRM solution for small businesses and sales professionals. Core business revenues are expected to grow to $307 million. EBITDA for 2001 is expected to improve dramatically, to approximately $91.5 million, due to the growth in revenues, as well as the full benefit from cost reductions that were first implemented in the fourth quarter of 2000. The company expects core EBITDA of $100 million, or 33% of 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 . Cost reductions that the company plans to implement during 2001 include the following -- The company expects to integrate ListBazaar.com into the Small Business Group starting January 1, 2001, where it will leverage cross-selling opportunities to a similar customer base. infoUSA plans to operate ListBazaar.com at a break-even level at the time of integration, after having invested approximately $2.6 million in start-up, technology and marketing during fiscal year 2000. -- The company plans to integrate businessCreditUSA.com into its core business operations, and expects to benefit from revenues from selling business credit reports online. Currently, visitors to the site are downloading free reports at a rate exceeding 30,000 reports a day and the company expects to convert a significant portion of these users to customers and subscribers. Starting December 1, 2000, reports will be sold online for $3 apiece. The company expects to meet expenses for businessCreditUSA.com through the sale of these reports and other proprietary products and services, creating a clear path to profitability. Investment in businessCreditUSA.com will total approximately $6.9 million for 2000. -- The company expects to limit its investment in VideoYellowPages.com to a minimum operating level, and continues to seek a strategic partner/investor for this company. Investment in VideoYellowPages.com is expected to total $4.8 million for 2000, and the company expects total investment in 2001 to be less than $1 million. -- infoUSA.com, the company's minority owned Internet subsidiary, will continue to be self-funding. In addition to the forecast for revenues and EBITDA, the company expects the following: -- Capital expenditures will be $15 million in 2001. -- Interest expense will be $6.7 million for the fourth quarter of 2000 and $26.0 million for 2001. -- Depreciation of operating assets Operating Assets Another term for working capital. will be $4.5 million for the fourth quarter of 2000 and $18 million for 2001. -- Amortization of goodwill will be $8.2 million for the fourth quarter of 2000 and $30.3 million for 2001. In connection with the recent adoption of the new SEC Full Disclosure rules, infoUSA will continue to keep its earnings release and this Outlook publicly available on the About infoUSA Inc. Press Release section of its Web site at www.infousa.com. From the twenty third day of the third month of each fiscal quarter until the day when infoUSA's next quarterly Earnings Release is published, infoUSA will have a "Quiet Period" during which company representatives will no longer make comments relating specifically to the company's financial results or expectations. During this time company representatives will continue the current practice of discussing general operational information with investors and others. About infoUSA infoUSA (www.infoUSA.com), founded in 1972, is the leading provider of business and consumer information products, database marketing services, 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 and sales and marketing solutions. Content is the essential ingredient in every marketing program, and infoUSA has the most comprehensive data in the industry, and is the only company to own a proprietary database of 250 million consumers and 13 million businesses under one roof. The infoUSA database powers the directory services of the top Internet traffic-generating sites, including Yahoo! (Nasdaq:YHOO YHOO Yahoo! Inc. (NASDAQ symbol) ), Microsoft (Nasdaq:MSFT MSFT Microsoft (stock symbol) MSFT Movimento Sociale Fiamma Tricolore (Italy) MSFT Multi-Stage Fitness Test MSFT Master of Science in Family Therapy MSFT Macalester Students for Fair Trade ), and InfoSpace (Nasdaq:INSP INSP Inspection INSP Inspector INSP Inspect INSP Inspirational Network INSP Institut des Nanosciences de Paris (French) INSP International Nuclear Safety Program INSP International Network on Strategic Philanthropy ). The company has partnership agreements with several Internet companies, including Network Solutions (a VeriSign Inc. company, Nasdaq:VRSN VRSN Verisign, Inc. (stock abbreviation, AMEX) VRSN Version Number (NEC) ) and MyWay.com (a majority owned operating company operating company A business that engages in transactions with outsiders. of CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) , Inc.). Nearly three million customers use the products and services for direct marketing, telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. , marketing planning, lead generation, sales planning, customer analysis, and credit reference. 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. |
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