Infogroup Reports Fourth Quarter and Fiscal Year 2009 Results
- Infogroup reports revenue for the fourth quarter of $125.8 million and $499.9 million for the fiscal year
- Fourth quarter revenue growth of $0.8 million from third quarter 2009, second quarter of sequential growth
- Fiscal year operating income of $20.5 million
- Cash flow from continuing operations of $41.2 million this fiscal year
- Fourth quarter 2009 loss per share from continuing operations of $0.02 compared to earnings per share of $0.02 last year
- Continued reduction of debt for fourth quarter by $5.4 million to $181.7 million
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OMAHA, Neb., Feb 08, 2010 (BUSINESS WIRE) -- Infogroup (NASDAQ:IUSA), the leading provider of data driven and interactive resources for targeted sales, marketing and research solutions today reported preliminary unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2009.
"While 2009 was a challenging year, we continue to see improvements in our core operations," said Bill Fairfield, Infogroup's Chief Executive Officer. "We had sequential quarterly revenue growth for the second quarter in a row, and we continue to generate positive cash flow."
FOURTH QUARTER RESULTS
GAAP Results
During the fourth quarter of 2009, Infogroup recorded revenue of $125.8 million, compared to $141.9 million for the same period in 2008, representing a decline of $16.1 million or 11%.
Infogroup's operating income for the fourth quarter of 2009 was $7.5 million, which included $10.3 million of restructuring, non-recurring and non-cash charges, compared to operating income of $9.9 million in the fourth quarter of 2008, which included $11.4 million of comparable charges.
Infogroup's net loss from continuing operations for the fourth quarter of 2009 was $1.4 million, or a loss per share from continuing operations of $0.02, compared to net income from continuing operations of $1.3 million, or earnings per share from continuing operations of $0.02 in 2008.
Non-GAAP Results
Infogroup's adjusted earnings per share from continuing operations for the fourth quarter of 2009, excluding the restructuring, non-recurring and non-cash charges, was $0.14, compared to $0.17 for the fourth quarter of 2008, a decrease of $0.03.
In the fourth quarter of 2009, EBITDA was $15.6 million compared to $16.6 million in 2008. Adjusted EBITDA, which excludes certain restructuring, non-recurring and non-cash charges, was $26.0 million in 2009, compared to $30.5 million in 2008.
In total, the Company recorded $10.4 million in costs during the quarter for restructuring, non-recurring and non-cash charges. This included $7.7 million for an impairment of goodwill, $0.6 million for additional impairments and write-down of assets, $0.8 million in legal and professional fees related to the SEC investigation, $0.9 million in restructuring costs for severance associated with headcount reductions and facility closures and $0.4 million in non-cash stock compensation expense. All of the charges, excluding a write-down of a non-marketable security of $0.1 million recorded in other income, were recorded in selling, general and administrative expenses within operating expenses.
FISCAL YEAR RESULTS
GAAP Results
Revenue for the fiscal year 2009 was $499.9 million, compared to $588.7 million for fiscal year 2008, representing a decline of $88.8 million or 15%. Excluding the effect of foreign exchange, the decline was $79.4 million or 13%.
Infogroup's operating income for the fiscal year 2009 was $20.5 million, which included $41.0 million of restructuring, non-recurring and non-cash charges, compared to operating income of $17.0 million for fiscal year 2008, which included $52.0 million of comparable charges.
Infogroup's net income from continuing operations for the fiscal year 2009 was $1.4 million, or earnings per share from continuing operations of $0.02, compared to a net loss from continuing operations of $1.4 million, or a loss per share from continuing operations of $0.03 in 2008.
Non-GAAP Results
Infogroup's adjusted earnings per share from continuing operations for the fiscal year 2009, excluding the restructuring, non-recurring and non-cash charges, was $0.51, compared to $0.56 for fiscal year 2008, a decrease of $0.05.
EBITDA for the fiscal year 2009 was $50.3 million compared to $51.3 million in 2008. Adjusted EBITDA, which excludes certain restructuring, non-recurring and non-cash charges, was $91.8 million in 2009, compared to $105.7 million in 2008.
The Company recorded $41.6 million during fiscal year 2009 for restructuring, non-recurring and non-cash charges compared to $54.4 million in 2008, representing a decline of $12.8 million. The 2009 charges included $8.5 million in legal and professional fees related to the SEC investigation, $14.1 million in restructuring costs for severance associated with headcount reductions and facility closures, $7.7 million for an impairment of goodwill, $9.2 million for other impairments and write-down of assets, $1.6 million in non-cash stock compensation expense and $0.4 million for litigation settlement charges. All of the charges, excluding a net write-down of marketable and non-marketable securities of $0.5 million recorded in other income, were recorded in selling, general and administrative expenses within operating expenses.
"Cost savings initiatives during 2009 had an actual impact of $26.6 million, and will have an annualized impact of approximately $38 million," said Tom Oberdorf, Infogroup's Chief Financial Officer. "Cost reductions and building efficiencies within the organization have become a way of life at Infogroup, and we expect to have additional cost savings in 2010."
Fairfield added, "With the foundation we laid in 2009, we are now beginning the next phase of our transformation in which we will continue to rationalize the business around customer segments. This will strengthen our "go to market" strategies both from a customer service and product innovation effort and help to drive organic growth." Fairfield concluded, "We are pleased with our progress that we experienced over the last several quarters and look forward to 2010."
NON-GAAP INFORMATION
In addition to presenting results determined in accordance with generally accepted accounting principles, or GAAP, this release also presents non-GAAP financial measures. Investors are referred to the tables included in this press release for a reconciliation of these non-GAAP measures to GAAP financial measures.
Management considers GAAP and non-GAAP financial measures in evaluating the operating performance of the Company. EBITDA is commonly used as an analytical indicator within Infogroup's industry. Adjusted EBITDA, adjusted earnings per share, non-GAAP selling, general and administrative expenses and non-GAAP operating income exclude items that management believes result from events that are not recurring and are not part of on-going operations. Management believes these non-GAAP financial measures also provide useful supplemental information to investors in evaluating the aggregate performance of the Company's operating businesses.
All companies do not calculate non-GAAP measures in the same manner and the non-GAAP financial measures presented in this press release may not be comparable to similar measures used by other companies. Non-GAAP measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. You should not consider non-GAAP financial measures in isolation or as a substitute for analysis of the Company's results as reported under GAAP.
CONFERENCE CALL
The Company will host its fourth quarter conference call on February 9, 2010 at 8:30 a.m. Eastern time. To access the conference call, please dial 877-719-9789 (international 719-325-4751), passcode 5496627, approximately 10 minutes prior to the start of the call. Those interested can also listen to an audio webcast of the call live on the Investor Relations section of the Company's web site at www.Infogroup.com. A replay of the call will be available after the call at the same link.
About Infogroup
Infogroup (NASDAQ:IUSA) is the leading provider of data and interactive resources that enables targeted sales, effective marketing and insightful research solutions. Our information powers innovative tools and insight for businesses to efficiently reach current and future customers through multiple channels, including the world's most dominant and powerful Internet search engines and GPS navigation systems. Infogroup's headquarters are located at 5711 South 86th Circle, Omaha, NE 68127. For more information, call (402) 593-4500 or visit www.infogroup.com.
Forward-Looking Statements
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. You can identify forward-looking statements by terminology such as "may," "will," "should," "could," "would," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continues" or the negative of these terms or other comparable terminology. The potential risks and uncertainties include, but are not limited to, recent changes in senior management, risks associated with litigation, 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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Infogroup INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) |
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THREE MONTHS ENDED December 31, |
FOR THE YEARS ENDED December 31, |
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| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| (UNAUDITED) | (UNAUDITED) | |||||||||||||||
| Net sales | $ | 125,821 | $ | 141,909 | $ | 499,913 | $ | 588,686 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of goods and services | 46,786 | 49,069 | 185,239 | 203,981 | ||||||||||||
| Selling, general and administrative | 63,448 | 74,239 | 263,622 | 333,533 | ||||||||||||
| Depreciation and amortization of operating assets | 5,768 | 5,587 | 20,180 | 21,352 | ||||||||||||
| Amortization of intangible assets | 2,315 | 3,152 | 10,373 | 12,864 | ||||||||||||
| Total operating costs and expenses | 118,317 | 132,047 | 479,414 | 571,730 | ||||||||||||
| Operating income | 7,504 | 9,862 | 20,499 | 16,956 | ||||||||||||
| Investment income (expense) | 41 | (11 | ) | 229 | 1,660 | |||||||||||
| Other income (expense) | (34 | ) | (1,958 | ) | (1,021 | ) | (1,497 | ) | ||||||||
| Interest expense | (1,936 | ) | (4,794 | ) | (9,453 | ) | (18,141 | ) | ||||||||
| Other expense, net | (1,929 | ) | (6,763 | ) | (10,245 | ) | (17,978 | ) | ||||||||
| Income (loss) before income taxes | 5,575 | 3,099 | 10,254 | (1,022 | ) | |||||||||||
| Income tax expense | 6,983 | 1,835 | 8,808 | 412 | ||||||||||||
| Net income (loss) from continuing operations | (1,408 | ) | 1,264 | 1,446 | (1,434 | ) | ||||||||||
| Income (loss) from discontinued operations, net of tax | (1,031 | ) | 1,180 | (8,219 | ) | 6,245 | ||||||||||
| Net income (loss) | $ | (2,439 | ) | $ | 2,444 | $ | (6,773 | ) | $ | 4,811 | ||||||
| BASIC EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
| Income (loss) from continuing operations | $ | (0.02 | ) | $ | 0.02 | $ | 0.02 | $ | (0.03 | ) | ||||||
| Income (loss) from discontinued operations | $ | (0.02 | ) | $ | 0.02 | $ | (0.14 | ) | $ | 0.11 | ||||||
| Net income (loss) | $ | (0.04 | ) | $ | 0.04 | $ | (0.12 | ) | $ | 0.08 | ||||||
| Basic weighted average shares outstanding | 57,550 | 56,944 | 57,359 | 56,760 | ||||||||||||
| DILUTED EARNINGS (LOSS) PER SHARE: | ||||||||||||||||
| Income (loss) from continuing operations | $ | (0.02 | ) | $ | 0.02 | $ | 0.02 | $ | (0.03 | ) | ||||||
| Income (loss) from discontinued operations | $ | (0.02 | ) | $ | 0.02 | $ | (0.14 | ) | $ | 0.11 | ||||||
| Net income (loss) | $ | (0.04 | ) | $ | 0.04 | $ | (0.12 | ) | $ | 0.08 | ||||||
| Diluted weighted average shares outstanding | 57,550 | 56,998 | 57,923 | 56,760 | ||||||||||||
The following provides a reconciliation of GAAP net income (loss) to non-GAAP EBITDA and non-GAAP adjusted EBITDA:
| (in thousands) |
THREE MONTHS ENDED December 31, |
FOR THE YEARS ENDED December 31, |
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| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| (UNAUDITED) | (UNAUDITED) | |||||||||||||||
| GAAP net income (loss) | $ | (2,439 | ) | $ | 2,444 | $ | (6,773 | ) | $ | 4,811 | ||||||
| (Income) loss from discontinued operations, net of tax | 1,031 | (1,180 | ) | 8,219 | (6,245 | ) | ||||||||||
| Interest expense | 1,936 | 4,794 | 9,453 | 18,141 | ||||||||||||
| Income tax expense | 6,983 | 1,835 | 8,808 | 412 | ||||||||||||
| Depreciation and amortization of operating assets | 5,768 | 5,587 | 20,180 | 21,352 | ||||||||||||
| Amortization of intangible assets | 2,315 | 3,152 | 10,373 | 12,864 | ||||||||||||
| Non-GAAP EBITDA | $ | 15,594 | $ | 16,632 | $ | 50,260 | $ | 51,335 | ||||||||
| Adjustments: | ||||||||||||||||
| SEC investigation / shareholder litigation expenses | $ | 759 | $ | (341 | ) | $ | 8,465 | $ | 23,595 | |||||||
| Restructuring costs | 877 | 2,985 | 14,103 | 18,485 | ||||||||||||
| Impairments and write-down of assets | 8,306 | 10,602 | 16,947 | 11,268 | ||||||||||||
| Litigation settlement charges | 28 | 498 | 416 | 561 | ||||||||||||
| Non-cash stock compensation expense | 437 | 127 | 1,634 | 500 | ||||||||||||
| Non-GAAP adjusted EBITDA | $ | 26,001 | $ | 30,503 | $ | 91,825 | $ | 105,744 | ||||||||
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The following provides a reconciliation of GAAP basic earnings (loss) per share to non-GAAP adjusted basic earnings per share: |
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| (in thousands, except per share amounts) |
THREE MONTHS ENDED December 31, |
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FOR THE YEARS ENDED December 31, |
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| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| (UNAUDITED) | (UNAUDITED) | |||||||||||||||
| GAAP basic earnings (loss) per share from continuing operations | $ | (0.02 | ) | $ | 0.02 | $ | 0.02 | $ | (0.03 | ) | ||||||
| Effect of adjustments (see below) | $ | 0.16 | $ | 0.15 | $ | 0.49 | $ | 0.59 | ||||||||
| Non-GAAP adjusted basic earnings per share from continuing operations | $ | 0.14 | $ | 0.17 | $ | 0.51 | $ | 0.56 | ||||||||
| GAAP basic earnings (loss) per share | $ | (0.04 | ) | $ | 0.04 | $ | (0.12 | ) | $ | 0.08 | ||||||
| Effect of adjustments (see below) | $ | 0.16 | $ | 0.15 | $ | 0.49 | $ | 0.59 | ||||||||
| Non-GAAP adjusted basic earnings per share | $ | 0.12 | $ | 0.19 | $ | 0.37 | $ | 0.67 | ||||||||
| Adjustments (detail in above table) | $ | 10,407 | $ | 13,871 | $ | 41,565 | $ | 54,409 | ||||||||
| Income tax effect of adjustments | 1,054 | 5,271 | 13,283 | 20,675 | ||||||||||||
| Impact of adjustments on net income | $ | 9,353 | $ | 8,600 | $ | 28,282 | $ | 33,734 | ||||||||
| Basic weighted average shares outstanding | 57,550 | 56,944 | 57,359 | 56,760 | ||||||||||||
| Effect of adjustments on basic earnings (loss) per share from continuing operations and basic earnings per share | $ | 0.16 | $ | 0.15 | $ | 0.49 | $ | 0.59 | ||||||||
The following provides a reconciliation of GAAP selling, general and administrative expenses to non-GAAP selling, general and administrative expenses, excluding restructuring, non-recurring and non-cash charges:
| (in thousands) |
THREE MONTHS ENDED December 31, |
FOR THE YEARS ENDED December 31, |
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| 2009 | 2008 | 2009 | 2008 | |||||||||
| (UNAUDITED) | (UNAUDITED) | |||||||||||
| GAAP selling, general and administrative expenses | $ | 63,448 | $ | 74,239 | $ | 263,622 | $ | 333,533 | ||||
| Less restructuring, non-recurring and non-cash charges | 10,307 | 11,428 | 41,046 | 51,966 | ||||||||
| non-GAAP selling, general and administrative expenses, excluding restructuring, non-recurring and non-cash charges | $ | 53,141 | $ | 62,811 | $ | 222,576 | $ | 281,567 | ||||
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The following provides a reconciliation of GAAP operating income to non-GAAP operating income, excluding restructuring, non-recurring and non-cash charges: |
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| (in thousands) |
THREE MONTHS ENDED December 31, |
FOR THE YEARS ENDED December 31, |
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| 2009 | 2008 | 2009 | 2008 | |||||||||
| (UNAUDITED) | (UNAUDITED) | |||||||||||
| GAAP operating income | $ | 7,504 | $ | 9,862 | $ | 20,499 | $ | 16,956 | ||||
| Plus restructuring, non-recurring and non-cash charges | 10,307 | 11,428 | 41,046 | 51,966 | ||||||||
| non-GAAP operating income, excluding restructuring, non-recurring and non-cash charges | $ | 17,811 | $ | 21,290 | $ | 61,545 | $ | 68,922 | ||||
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Infogroup INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands) |
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| December 31, | December 31, | |||||||
| 2009 | 2008 | |||||||
| (UNAUDITED) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,784 | $ | 4,691 | ||||
| Marketable securities | 1,773 | 992 | ||||||
| Trade accounts receivable | 61,947 | 56,030 | ||||||
| List brokerage trade accounts receivable | 81,033 | 86,841 | ||||||
| Unbilled services | 8,487 | 11,120 | ||||||
| Deferred income taxes | 1,184 | 6,889 | ||||||
| Income taxes receivable | - | 3,782 | ||||||
| Prepaid expenses | 8,702 | 9,382 | ||||||
| Deferred marketing costs | 742 | 1,004 | ||||||
| Assets held for sale | 1,457 | 3,960 | ||||||
| Current assets of discontinued operations | - | 36,845 | ||||||
| Total current assets | 171,109 | 221,536 | ||||||
| Property and equipment, net | 50,285 | 59,235 | ||||||
| Goodwill | 346,265 | 377,708 | ||||||
| Intangible assets, net | 61,828 | 69,950 | ||||||
| Other assets | 3,736 | 2,505 | ||||||
| Escrow, noncurrent | 10,029 | - | ||||||
| Noncurrent assets of discontinued operations | - | 84,844 | ||||||
| $ | 643,252 | $ | 815,778 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 2,692 | $ | 2,899 | ||||
| Accounts payable | 18,395 | 29,569 | ||||||
| List brokerage trade accounts payable | 65,936 | 79,827 | ||||||
| Accrued payroll expenses | 32,231 | 32,128 | ||||||
| Accrued expenses | 11,370 | 16,068 | ||||||
| Income taxes payable | 3,613 | - | ||||||
| Deferred revenue | 62,582 | 60,479 | ||||||
| Current liabilities of discontinued operations | - | 16,659 | ||||||
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Total current liabilities |
196,819 | 237,629 | ||||||
| Long-term debt, net of current portion | 179,010 | 297,745 | ||||||
| Deferred income taxes | 5,774 | 10,552 | ||||||
| Other liabilities | 11,034 | 5,417 | ||||||
| Noncurrent liabilities of discontinued operations | - | 16,406 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 144 | 142 | ||||||
| Paid-in capital | 151,529 | 147,029 | ||||||
| Retained earnings | 107,309 | 114,082 | ||||||
| Note receivable - shareholder | (6,800 | ) | (9,000 | ) | ||||
| Accumulated other comprehensive loss | (1,567 | ) | (4,224 | ) | ||||
| Total stockholders' equity | 250,615 | 248,029 | ||||||
| $ | 643,252 | $ | 815,778 | |||||
SOURCE: Infogroup
Infogroup
Lisa Olson, 402-593-4541
Senior Vice President, Corporate Relations
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or
Thomas Oberdorf, 402-593-4690
Chief Financial Officer
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