infoUSA reported substantial gains in net income and EPS in 1Q02. Revenue continued to suffer from the sluggish economy. First quarter 2002 EBITDA declined from the previous quarter of 2001, as the company’s growth in revenues did not match its expense growth.
Net sales for the first quarter 2002 were $76.7 million compared to $73.9 million for the first quarter of 2001. EBITDA, as adjusted, for the first quarter was $23.6 million, or 31% of net sales, compared to $25.2 million, or 34% of net sales, for Q1 last year. Net income was $4.9 million, up 162% from $1.9 million for the first quarter of the previous year. Included in net income for the first quarter of 2002 was a non-cash extraordinary item of $1.8 million, net of tax, reflecting the write-off of deferred financing costs capitalized for the initial senior credit facility the company established in July 1999 and refinanced March 12, 2002. Additionally, the Company recorded a charge of $1.2 million for the realization of the unrealized loss on an interest rate swap due to the extinguishment of debt.
During the first quarter of 2002, infoUSA continued to acquire high quality business and residential email addresses, and now has access to 80 million addresses. The company also plans to introduce several new proprietary vertical market business database solutions, modeled from self-reported data and telephone-verified data. Initially, these solutions will be targeted at the technology and electronic markets.
Also during the first quarter, infoUSA expanded its coverage of the consumer database market, collecting over 1.2 million electronic surveys for use in its proprietary e-Shareforce suite of marketing solutions. The company also plans to speed the updating of its business and consumer data by using more advanced technology and higher quality sources of information.
The Large Customer group reported first quarter 2002 revenues of $27.4 million versus $27.3 million for the first quarter of the prior year. The Small Business Group reported revenues of $36.4 million for the first quarter of 2002, versus $30.9 million for the first quarter of 2001.
The Database License group recorded revenues during the first quarter of $10.0 million, versus $12.0 million in the first quarter of 2001.