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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM 11-K
     
þ   Annual Report pursuant to Section 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended December 31, 2005 or
     
o   Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934
For the transition period from                      to                     .
Commission File Number 0-19598
infoUSA Inc. 401(K) Plan
5711 South 86th Circle, Omaha, Nebraska 68127
(Full title and address of the plan)
infoUSA Inc.
5711 South 86th Circle, Omaha, Nebraska 68127
Registrant’s telephone number, including area code (402) 593-4500
Notices and communications from the Securities and Exchange
Commission relative to this report should be forwarded to:
Stormy L. Dean
Chief Financial Officer
infoUSA Inc.
5711 South 86th Circle, Omaha, Nebraska 68127
 
 

 

 

infoUSA INC. 401(k) PLAN
Financial Statements and Supplemental Schedule
December 31, 2005 and 2004
(With Report of Independent Registered Public Accounting Firm Thereon)
infoUSA INC. 401(k) PLAN
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 Consent of Independent Registered Public Accounting Firm

 

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Report of Independent Registered Public Accounting Firm
The Plan Trustees
infoUSA Inc. 401(k) Plan:
We have audited the financial statements of the infoUSA Inc. 401(k) Plan (the Plan) as of December 31, 2005 and 2004 and for the year ended December 31, 2005, as listed in the accompanying table of contents. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2005 and 2004, and the changes in net assets available for benefits for the year ended December 31, 2005, in conformity with U.S. generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
         
     
  /s/ KPMG LLP    
  KPMG LLP   
     
 
Omaha, Nebraska
June 29, 2006

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infoUSA INC. 401(k) PLAN
Statements of Net Assets Available for Benefits
December 31, 2005 and 2004
                 
    2005     2004  
Assets:
                
Noninterest-bearing cash
   $ 530       6,123  
Investments at fair value:
                
Money market fund
     148,593       37,266  
Mutual funds
     58,632,842       44,784,807  
infoUSA Inc. common stock
     7,447,658       7,348,775  
Common stock
     20,606       —  
Participant loans
     1,138,298       1,087,360  
 
            
Total investments
     67,387,997       53,258,208  
 
            
Receivables:
                
Employer contributions
     66,668       —  
Employee contributions
     190,865       —  
 
            
Total receivables
     257,533       —  
 
            
Total assets
     67,645,530       53,264,331  
Liabilities:
                
Accrued administrative expenses
     35,435       40,806  
 
            
Net assets available for benefits
   $ 67,610,095       53,223,525  
 
            
See accompanying notes to financial statements.

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infoUSA INC. 401(k) PLAN
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 2005
         
Additions to net assets attributed to:
        
Investment income:
        
Interest and dividend income
   $ 1,061,910  
Net appreciation in fair value of investments
     2,904,053  
 
      
Total investment income
     3,965,963  
 
      
 
        
Contributions:
        
Participants
     5,429,323  
Employer stock contribution
     1,915,799  
Participant rollovers
     392,997  
 
      
Total contributions
     7,738,119  
 
      
Plan merger
     8,534,675  
 
      
Total additions
     20,238,757  
 
      
 
        
Deductions from net assets attributed to:
        
Benefits paid to participants
     5,591,220  
Administrative fees
     260,967  
 
      
Total deductions
     5,852,187  
 
      
Net increase
     14,386,570  
 
        
Net assets available for benefits:
        
Beginning of year
     53,223,525  
 
      
End of year
   $ 67,610,095  
 
      
See accompanying notes to financial statements.

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Notes to Financial Statements - December 31, 2005 and 2004
(1)   Description of Plan
 
    The following description of the infoUSA Inc. 401(k) Plan (the Plan) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions.
  (a)   General
 
      The Plan is a defined contribution plan covering employees of infoUSA Inc. (the Company) who have been employed by the Company for any consecutive six-month period and have attained age 21. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
 
  (b)   Contributions
 
      Each year, participants may contribute up to 100% of their pretax annual compensation, as defined by the Plan, not to exceed limits set by the secretary of the treasury. Participants who have attained age 50 before the end of the plan year are eligible to make catch-up contributions. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans. Participants direct the investment of their contributions into various investment options offered by the Plan. The Company makes matching contributions of 50% of the first 6% of participant contributions, which may be in the form of Company common stock or cash.
 
  (c)   Participant Accounts
 
      Each participant’s account is credited with the participant’s contribution, the Company’s matching contribution, and an allocation of plan earnings based on balances in their account. All contributions, except Company matching contributions made in Company common stock, are directed by the participants into the various investment options offered. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account. For Company matching contributions made in Company common stock, participants may elect to transfer the value of the common stock to other investment options at any time.
 
  (d)   Vesting
 
      Participants are immediately vested in their voluntary contributions plus actual earnings thereon. Vesting in the Company’s contribution portion of their accounts is based on years of continuous service. A participant is 100% vested after five years of credited service.
 
  (e)   Participant Loans
 
      Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their account balance. These loans are secured by the balance in the participant’s account and bear interest at rates that range from 5.0% to 10.5% at December 31, 2005. Principal and interest is paid ratably through payroll deductions. Loans are considered in default 90 days following the last payment for the loan. At the time of default, they are considered a distribution of the Plan.
 
  (f)   Payment of Benefits
 
      Upon termination of service, a participant will receive a lump-sum amount equal to the vested balance of his or her account, subject to mandatory federal income tax withholding, unless the participant rolls over the distribution into another qualified plan.

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(g)   Forfeitures
 
    Nonvested portions of terminated participants’ accounts are forfeited. At December 31, 2005 and 2004, forfeited nonvested accounts totaled $262,396 and $314,327, respectively. Forfeitures are applied against future Company contributions, including payment of administrative expenses. During 2005, administrative expenses of $247,606 were paid from forfeited nonvested accounts.
(2)   Summary of Significant Accounting Policies
 
    The following is a summary of significant accounting policies followed in the preparation of these financial statements.
  (a)   Basis of Presentation
 
      The accompanying financial statements have been prepared on an accrual basis and present the net assets available for benefits and changes in those net assets.
 
  (b)   Investment Valuation and Income Recognition
 
      The Plan’s investments are stated at fair value. Purchases and sales of securities are recorded on a trade-date basis. Quoted market prices are used to determine fair value of investments. Shares of mutual funds are valued at the net asset value of shares held by the Plan at year-end. Participants’ loans are valued at their outstanding balances, which approximate fair value. Interest income is recorded as earned on an accrual basis and dividend income is recorded on the ex-dividend date.
 
      Purchases and sales of securities are recorded on a trade-date basis. Dividends are recorded on the ex-dividend date.
 
  (c)   Payment of Benefits
 
      Benefits are recorded when paid.
 
  (d)   Administrative Expenses
 
      The Plan is responsible for all administrative expenses; however, the Company may elect to pay administrative expenses directly or through forfeited nonvested accounts.
 
  (e)   Use of Estimates
 
      The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities, and changes therein, and disclosures of contingent assets and liabilities. Actual results could differ from those estimates.

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(3)   Investments
 
    The following table represents the fair value of individual investments that exceed 5% of the Plan’s net assets at December 31, 2005 and 2004:
                 
    2005     2004  
infoUSA Inc. common stock
   $ 7,447,658       7,348,775  
Alliance Bernstein Growth and Income Fund
     10,171,388       8,773,477  
Gabelli Growth Fund
     12,207,849       8,864,327  
PIMCO Total Return Fund
     5,095,225       4,232,079  
RS Smaller Co. Growth Fund
     5,409,469       4,237,264  
William Blair International Growth Fund
     4,537,756       *  
ABN AMRO Income Plus Fund
     3,597,532       3,296,799  
Vanguard 500 Index Fund
     9,143,908       7,102,468  
Royce Total Return Fund
     *       2,401,592  
 
*   Fair value of the investment did not exceed 5% of the Plan’s net assets at December 31st of the applicable year.
During 2005, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value by $2,904,053 as follows:
         
Mutual funds
   $ 3,080,191  
infoUSA Inc. common stock
     (175,288 )
Common Stock
     (850 )
 
      
 
   $ 2,904,053  
 
      
(4)   Plan Termination
 
    Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of plan termination, participants would become 100% vested in their accounts.
 
(5)   Tax Status
 
    The Internal Revenue Service has determined and informed the Company by a letter dated June 27, 2003 that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). Although the Plan has been amended since receiving the determination letter, the plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC.
 
(6)   Risks and Uncertainties
 
    The Plan invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for plan benefits.

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(7)   Plan Merger
 
    Effective January 1, 2005, the Company merged the net assets of the OneSource Retirement Savings Plan of $8,534,675 into the Plan.
 
(8)   Subsequent Events
 
    Effective January 2, 2006, the Company merged the net assets of Millard Group Retirement Savings Plan of $5,951,707 into the Plan.

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Schedule
infoUSA INC. 401(k) PLAN

Schedule H, line 4i—Schedule of Assets (Held at End of Year)

December 31, 2005
                             
        (c)                  
        Description of investment,                  
    (b)   including maturity date, number       (e)          
    Identity of issue, borrower,   of shares or units, rate of interest,   (d)   Current        
(a)   lessor, or similar party   collateral, and par or maturity value   Cost   value          
 
   William Blair International Growth Fund   Mutual fund $ **     4,537,756       7 %
 
   Alliance Bernstein Growth & Income Fund   Mutual fund   **     10,171,388       15 %
 
   Cohen & Steers Realty Shares Fund   Mutual fund   **     11,559       0 %
 
   Franklin Utilities Fund   Mutual fund   **     9,986       0 %
 
   Dreyfus Emerging Markets Fund   Mutual fund   **     2,348,216       3 %
 
   Gabelli Growth Fund   Mutual fund   **     12,207,849       18 %
 
   ING GNMA Income Fund   Mutual fund   **     120,779       0 %
 
   Loomis Sayles Bond Fund   Mutual fund   **     1,598,330       2 %
 
   T. Rowe Price Funds High Yield Fund   Mutual fund   **     1,221,272       2 %
 
   PIMCO Total Return Fund   Mutual fund   **     5,095,225       8 %
 
   RS Smaller Co Growth Fund   Mutual fund   **     5,409,469       8 %
 
   Royce Total Return Fund   Mutual fund   **     2,667,048       4 %
 
   ABN AMRO Income Plus Fund   Mutual fund   **     3,597,532       5 %
 
   Vanguard 500 Index Fund   Mutual fund   **     9,143,908       14 %
 
   Fidelity Real Estate Investment Fund   Mutual fund   **     18,987       0 %
 
   T. Rowe Price New Era Fund   Mutual fund   **     11,740       0 %
 
   Janus Growth & Income Fund   Mutual fund   **     12,196       0 %
 
   American Century International Bond Fund   Mutual fund   **     414,992       1 %
 
   Stratton Monthly Dividend REIT   Mutual fund   **     19,177       0 %
 
   Vanguard Energy Fund   Mutual fund   **     15,433       0 %
 
   Goldman Sachs   Money market fund   **     148,593       0 %
 
   Allete Inc.   Common stock, 250 shares   **     11,000       0 %
 
   Protein Design Labs Inc.   Common stock, 338 shares   **     9,606       0 %
*
   infoUSA Inc.   Common stock, 681,396 shares   **     7,447,658       11 %
*
   Participant loans   Maturity dates ranging from 2006 to 2014 with rates from 5.0% to 10.5%   **     1,138,298       2 %
 
                          
 
               $ 67,387,997          
 
                          
     
*
  Represents party-in-interest.
**
  Historical cost information is omitted as it is no longer required for participant-directed accounts.
See accompanying report of independent registered public accounting firm.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
     
 
  infoUSA INC.
 
    
 
    
Date: June 29, 2006
  /s/ Stormy L. Dean
 
   
 
    
 
  Stormy L. Dean, Chief Financial Officer

 

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INDEX TO EXHIBITS
     
EXHIBIT    
NUMBER   DESCRIPTION
23.1
  Consent of Independent Registered Public Accounting Firm filed herewith.