LITTLE ROCK, Ark.--(BUSINESS WIRE)--Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and software-as-a-service company, today announced financial results for its third quarter ended December 31, 2013.
Total revenue for the third quarter was $278 million, up 2 percent from $273 million for the third quarter of fiscal 2013. Income from operations for the quarter was $20 million compared to $27 million for the prior-year period. Excluding unusual items, operating income was $29 million, up 10 percent from $27 million for the same period last year. Marketing and Data Services revenue for the third quarter increased 6 percent to $207 million compared to $195 million for the third quarter of last year. IT Infrastructure Management revenue was $62 million in the recent quarter, down 11 percent as expected from $70 million in the same period last year. Earnings per diluted share attributable to Acxiom stockholders were flat at $0.19. Excluding unusual items, diluted earnings per share were $0.25, up from $0.19 a year ago. Included in the current quarter is a tax-related adjustment which positively impacted both earnings-per-share measures by roughly $0.04 per share.
Operating cash flow was up 48 percent to $195 million for the trailing twelve-month period compared to $133 million for the same period a year ago. Free cash flow to equity was up 136 percent to $103 million for the trailing twelve-month period compared to $44 million for the same prior-year period. Free cash flow to equity for the prior-year trailing twelve-month period excludes $73 million in proceeds from the sale of the company’s background screening business. Free cash flow to equity is a non-GAAP financial measure. A reconciliation to the comparable GAAP measure, operating cash flow, is attached.
A schedule outlining the impact of unusual items on the current and prior-year results is attached.
“We are thrilled with the progress made since our release of the Acxiom Audience Operating System,” said Acxiom CEO Scott Howe. “After just four months since launch, we now have more than 30 customers that are implementing or testing one or more aspects of AOS™.”
Third Quarter Highlights:
- Acxiom and Starcom MediaVest Group (SMG) are entering into a partnership by which SMG becomes the first agency to license Acxiom Audience Operating System (AOS) and bring it to market. SMG is the largest media agency in the world.
- Acxiom signed seven new AOS agreements during the quarter with customers in several key industries including: Financial Services, Insurance, Telecommunications and Retail.
- Acxiom increased its share repurchase authorization from $200 million to $250 million. The company repurchased approximately 400,000 shares for $13.8 million during the quarter. Since inception of the share repurchase program in August 2011, the company has repurchased 12.3 million shares, or approximately 15 percent of the outstanding common stock, for $193 million.
- Subsequent to quarter end, Acxiom was named “Supplier of the Year” By Media Magazine, one of the industry’s most respected publications, for its contributions to the industry with its recent launches of AOS and AboutTheData.com™.
- On November 6th, Acxiom announced its plans to reduce its annual cost base by roughly $20 to $30 million over the next 6 to 12 months. The company is well underway on this initiative, and to date has taken steps to realize approximately $15 million in annualized cost reductions.
Segment Results:
- Marketing and Data Services: Revenue for the third quarter was $207 million, up from $195 million for the same period a year ago. U.S. revenue increased 6 percent to $175 million in the current quarter compared to $165 million for the third quarter of last year. Income from operations for the third quarter was $23 million, up from $18 million for the prior-year period. Operating margin was 11 percent as compared to 9 percent for the third quarter of last year.
- IT Infrastructure Management: Revenue for the third quarter decreased as expected by 11 percent to $62 million compared to $70 million for the same period a year ago. Income from operations for the recent quarter was $6 million compared to $10 million for the prior-year period. Operating margin was approximately 10 percent, down from 14 percent in the third quarter of last year.
- Other Services: Revenue for the third quarter was $9 million, up from $8 million in the comparable prior-year period. Operating margin improved to approximately 6 percent compared to a loss in the third quarter of last year.
Financial Guidance
The following projections are forward-looking and are subject to certain risks and uncertainties that could cause actual results to differ materially as detailed in the Forward-Looking Statements section of this press release. Our guidance excludes unusual items. Acxiom’s estimates for fiscal 2014 are as follows:
- As previously disclosed, we expect revenue for the fiscal year to be down slightly compared to $1.099 billion in fiscal 2013. The small revenue decrease is primarily driven by an expected decline in IT Infrastructure Management revenues.
- We now expect earnings per diluted share attributable to Acxiom stockholders to be as much as $0.82. This is an increase from our previous guidance of roughly flat compared to the prior-year period.
Conference Call
Acxiom will hold a conference call at 4:00 p.m. CST today to further discuss this information. Interested parties are invited to listen to the call, which will be broadcast via the Internet at www.acxiom.com. A slide presentation will be referenced during the call and can be accessed here.
Web Link to Financials
You may link to http://www.acxiom.com/FY14_Q3_Financials for the detailed financial information we typically attach to our earnings releases.
About Acxiom
Acxiom is an enterprise data, analytics and software-as-a-service company that uniquely fuses trust, experience and scale to fuel data-driven results. For over 40 years, Acxiom has been an innovator in harnessing the most important sources and uses of data to strengthen connections between people, businesses and their partners. Utilizing a channel and media neutral approach, we leverage cutting-edge, data-oriented products and services to maximize customer value. Every week, Acxiom powers more than a trillion transactions that enable better living for people and better results for our 7,000+ global clients. For more information about Acxiom, visit Acxiom.com.
Forward-Looking Statements
This release and today’s conference call may contain forward-looking statements including, without limitation, statements regarding expected levels of revenue and earnings per share for fiscal 2014, statements regarding cost base reductions, and statements regarding new customers and new product launches and capabilities. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. The following are factors, among others, that could cause actual results to differ materially from these forward-looking statements: the possibility that certain contracts may not generate the anticipated revenue or profitability or may not be closed within the anticipated time frames; the possibility that significant customers may experience extreme, severe economic difficulty or otherwise reduce the amount of business they do with us; the possibility that we will not successfully complete customer contract requirements on time or meet the service levels specified in the contracts, which may result in contract penalties or lost revenue; the possibility that data suppliers might withdraw data from us, leading to our inability to provide certain products and services to our clients; the possibility that we may not be able to attract, retain or motivate qualified technical, sales and leadership associates, or that we may lose key associates; the possibility that we may not be able to adequately adapt to rapidly changing computing environments, technologies and marketing practices; the possibility that we will not be able to continue to receive credit upon satisfactory terms and conditions; the possibility that negative changes in economic conditions in general or other conditions might lead to a reduction in demand for our products and services; the possibility that there will be changes in consumer or business information industries and markets that negatively impact the company; the possibility that the historical seasonality of our business may change; the possibility that we will not be able to achieve anticipated cost reductions and avoid unanticipated costs; the possibility that the fair value of certain of our assets may not be equal to the carrying value of those assets now or in future time periods; the possibility that unusual charges may be incurred; the possibility that changes in accounting pronouncements may occur and may impact these forward-looking statements; the possibility that we may encounter difficulties when entering new markets or industries; the possibility that we could experience loss of data center capacity or interruption of telecommunication links; the possibility that new laws may be enacted which limit our ability to provide services to our clients and/or which limit the use of data; and other risks and uncertainties, including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including our current reports on Form 8-K, quarterly reports on Form 10-Q and annual reports on Form 10-K, particularly the discussion under the caption “Item 1A, RISK FACTORS” in our Annual Report on Form 10-K for the year ended March 31, 2013, which was filed with the Securities and Exchange Commission on May 29, 2013.
With respect to the provision of products or services outside our primary base of operations in the United States, all of the above factors apply, along with the difficulty of doing business in numerous sovereign jurisdictions due to differences in scale, competition, culture, laws and regulations.
We undertake no obligation to update the information contained in this press release or any other forward-looking statement.
Acxiom is a registered trademark of Acxiom Corporation.
To automatically receive Acxiom Corporation financial news by email, please visit www.acxiom.com and subscribe to email alerts.
| ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (Dollars in thousands, except earnings per share) | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| December 31, | |||||||||||||||
| $ | % | ||||||||||||||
| 2013 | 2012 | Variance | Variance | ||||||||||||
| Revenue: | |||||||||||||||
| Marketing and data services | 206,662 | 195,146 | 11,516 | 5.9 | % | ||||||||||
| IT Infrastructure management services | 62,099 | 69,916 | (7,817 | ) | (11.2 | %) | |||||||||
| Other services | 9,112 | 8,040 | 1,072 | 13.3 | % | ||||||||||
| Total revenue | 277,873 | 273,102 | 4,771 | 1.7 | % | ||||||||||
| Operating costs and expenses: | |||||||||||||||
| Cost of revenue | 210,053 | 208,848 | (1,205 | ) | (0.6 | %) | |||||||||
| Selling, general and administrative | 43,383 | 37,482 | (5,901 | ) | (15.7 | %) | |||||||||
| Gains, losses and other items, net | 4,657 | (126 | ) | 4,783 | 3796.0 | % | |||||||||
| Total operating costs and expenses | 258,093 | 246,204 | (11,889 | ) | (4.8 | %) | |||||||||
| Income from operations | 19,780 | 26,898 | (7,118 | ) | (26.5 | %) | |||||||||
| % Margin | 7.1 | % | 9.8 | % | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (3,114 | ) | (3,178 | ) | 64 | 2.0 | % | ||||||||
| Other, net | 1,484 | 565 | 919 | 162.7 | % | ||||||||||
| Total other expense | (1,630 | ) | (2,613 | ) | 983 | 37.6 | % | ||||||||
| Earnings before income taxes | 18,150 | 24,285 | (6,135 | ) | (25.3 | %) | |||||||||
| Income taxes | 3,083 | 9,836 | 6,753 | 68.7 | % | ||||||||||
| Net earnings | 15,067 | 14,449 | 618 | 4.3 | % | ||||||||||
| Less: Net loss attributable to noncontrolling interest | - | (76 | ) | 76 | 100.0 | % | |||||||||
| Net earnings attributable to Acxiom | 15,067 | 14,525 | 542 | 3.7 | % | ||||||||||
| Basic earnings per share: | |||||||||||||||
| Net earnings | 0.20 | 0.19 | 0.01 | 5.3 | % | ||||||||||
| Net earnings attributable to Acxiom stockholders | 0.20 | 0.20 | 0.00 | 0.0 | % | ||||||||||
| Diluted earnings per share: | |||||||||||||||
| Net earnings | 0.19 | 0.19 | 0.00 | 0.0 | % | ||||||||||
| Net earnings attributable to Acxiom stockholders | 0.19 | 0.19 | 0.00 | 0.0 | % | ||||||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (Dollars in thousands, except earnings per share) | |||||||||||||||
| For the Nine Months Ended | |||||||||||||||
| December 31, | |||||||||||||||
| $ | % | ||||||||||||||
| 2013 | 2012 | Variance | Variance | ||||||||||||
| Revenue: | |||||||||||||||
| Marketing and data services | 595,407 | 586,230 | 9,177 | 1.6 | % | ||||||||||
| IT Infrastructure management services | 198,309 | 210,267 | (11,958 | ) | (5.7 | %) | |||||||||
| Other services | 26,621 | 25,731 | 890 | 3.5 | % | ||||||||||
| Total revenue | 820,337 | 822,228 | (1,891 | ) | (0.2 | %) | |||||||||
| Operating costs and expenses: | |||||||||||||||
| Cost of revenue | 621,953 | 627,323 | 5,370 | 0.9 | % | ||||||||||
| Selling, general and administrative | 123,857 | 112,309 | (11,548 | ) | (10.3 | %) | |||||||||
| Gains, losses and other items, net | 11,044 | 66 | (10,978 | ) | (16633.3 | %) | |||||||||
| Total operating costs and expenses | 756,854 | 739,698 | (17,156 | ) | (2.3 | %) | |||||||||
| Income from operations | 63,483 | 82,530 | (19,047 | ) | (23.1 | %) | |||||||||
| % Margin | 7.7 | % | 10.0 | % | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (9,113 | ) | (9,735 | ) | 622 | 6.4 | % | ||||||||
| Other, net | 1,238 | (36 | ) | 1,274 | 3538.9 | % | |||||||||
| Total other expense | (7,875 | ) | (9,771 | ) | 1,896 | 19.4 | % | ||||||||
| Earnings before income taxes | 55,608 | 72,759 | (17,151 | ) | (23.6 | %) | |||||||||
| Income taxes | 17,582 | 28,739 | 11,157 | 38.8 | % | ||||||||||
| Net earnings | 38,026 | 44,020 | (5,994 | ) | (13.6 | %) | |||||||||
| Less: Net loss attributable to noncontrolling interest | (60 | ) | (349 | ) | 289 | 82.8 | % | ||||||||
| Net earnings attributable to Acxiom | 38,086 | 44,369 | (6,283 | ) | (14.2 | %) | |||||||||
| Basic earnings per share: | |||||||||||||||
| Net earnings | 0.51 | 0.59 | (0.08 | ) | (13.6 | %) | |||||||||
| Net earnings attributable to Acxiom stockholders | 0.51 | 0.59 | (0.08 | ) | (13.6 | %) | |||||||||
| Diluted earnings per share: | |||||||||||||||
| Net earnings | 0.50 | 0.57 | (0.07 | ) | (12.3 | %) | |||||||||
| Net earnings attributable to Acxiom stockholders | 0.50 | 0.58 | (0.08 | ) | (13.8 | %) | |||||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | ||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP EPS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (Dollars in thousands, except earnings per share) | ||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||
| December 31, | December 31, | |||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||
| Earnings before income taxes | 18,150 | 24,285 | 55,608 | 72,759 | ||||||||||
| Income taxes | 3,083 | 9,836 | 17,582 | 28,739 | ||||||||||
| Net earnings | 15,067 | 14,449 | 38,026 | 44,020 | ||||||||||
| Less: Net loss attributable to noncontrolling interest | - | (76 | ) | (60 | ) | (349 | ) | |||||||
| Net earnings attributable to Acxiom | 15,067 | 14,525 | 38,086 | 44,369 | ||||||||||
| Earnings per share attributable to Acxiom stockholders: | ||||||||||||||
| Basic | 0.20 | 0.20 | 0.51 | 0.59 | ||||||||||
| Diluted | 0.19 | 0.19 | 0.50 | 0.58 | ||||||||||
| Unusual items: | ||||||||||||||
| Business separation expenses | 4,897 | - | 7,083 | - | ||||||||||
| Legal settlement accruals | 1,000 | - | 4,200 | - | ||||||||||
| Restructuring charges and other adjustments | 3,657 | (126 | ) | 6,844 | 66 | |||||||||
| Gain on investment | (2,567 | ) | - | (2,567 | ) | - | ||||||||
| Total unusual items | 6,987 | (126 | ) | 15,560 | 66 | |||||||||
| Earnings before income taxes and excluding unusual items | 25,137 | 24,159 | 71,168 | 72,825 | ||||||||||
| Income taxes | 5,690 | 9,786 | 23,575 | 28,763 | ||||||||||
| Non-GAAP net earnings | 19,447 | 14,373 | 47,593 | 44,062 | ||||||||||
| Less: Net gain (loss) attributable to noncontrolling interest | - | (76 | ) | (60 | ) | (349 | ) | |||||||
| Non-GAAP net earnings attributable to Acxiom | 19,447 | 14,449 | 47,653 | 44,411 | ||||||||||
| Non-GAAP earnings per share attributable to Acxiom stockholders: | ||||||||||||||
| Basic | 0.26 | 0.19 | 0.64 | 0.59 | ||||||||||
| Diluted | 0.25 | 0.19 | 0.62 | 0.58 | ||||||||||
| Diluted weighted average shares | 77,839 | 75,878 | 76,456 | 76,987 | ||||||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (Dollars in thousands, except earnings per share) | |||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||
| Income from operations | 19,780 | 26,898 | 63,483 | 82,530 | |||||||||||||
| Unusual items | 9,554 | (126 | ) | 18,127 | 66 | ||||||||||||
| Income from operations before unusual items | 29,334 | 26,772 | 81,610 | 82,596 | |||||||||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | ||||||||
| CALCULATION OF EARNINGS PER SHARE | ||||||||
| (Unaudited) | ||||||||
| (In thousands, except earnings per share) | ||||||||
| For the Three Months Ended | ||||||||
| December 31, | December 31, | |||||||
| 2013 | 2012 | |||||||
| Basic earnings per share: | ||||||||
| Numerator - net earnings | 15,067 | 14,449 | ||||||
| Denominator - weighted-average shares outstanding | 75,009 | 74,103 | ||||||
| Basic earnings per share | 0.20 | 0.19 | ||||||
| Basic earnings per share - net earnings attributable to Acxiom stockholders: | ||||||||
| Numerator - net earnings attributable to Acxiom | 15,067 | 14,525 | ||||||
| Denominator - weighted-average shares outstanding | 75,009 | 74,103 | ||||||
| Basic earnings per share - net earnings attributable to Acxiom stockholders | 0.20 | 0.20 | ||||||
| Diluted earnings per share: | ||||||||
| Numerator - net earnings | 15,067 | 14,449 | ||||||
| Denominator - weighted-average shares outstanding | 75,009 | 74,103 | ||||||
| Dilutive effect of common stock options, warrants and restricted stock | 2,830 | 1,775 | ||||||
| 77,839 | 75,878 | |||||||
| Diluted earnings per share | 0.19 | 0.19 | ||||||
| Diluted earnings per share - net earnings attributable to Acxiom stockholders: | ||||||||
| Numerator - net earnings attributable to Acxiom | 15,067 | 14,525 | ||||||
| Denominator - weighted-average shares outstanding | 75,009 | 74,103 | ||||||
| Dilutive effect of common stock options, warrants, and restricted stock | 2,830 | 1,775 | ||||||
| 77,839 | 75,878 | |||||||
| Diluted earnings per share - net earnings attributable to Acxiom stockholders | 0.19 | 0.19 | ||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | ||||||||
| CALCULATION OF EARNINGS PER SHARE | ||||||||
| (Unaudited) | ||||||||
| (In thousands, except earnings per share) | ||||||||
| For the Nine Months Ended | ||||||||
| December 31, | December 31, | |||||||
| 2013 | 2012 | |||||||
| Basic earnings per share: | ||||||||
| Numerator - net earnings | 38,026 | 44,020 | ||||||
| Denominator - weighted-average shares outstanding | 74,155 | 75,195 | ||||||
| Basic earnings per share | 0.51 | 0.59 | ||||||
| Basic earnings per share - net earnings attributable to Acxiom stockholders: | ||||||||
| Numerator - net earnings attributable to Acxiom | 38,086 | 44,369 | ||||||
| Denominator - weighted-average shares outstanding | 74,155 | 75,195 | ||||||
| Basic earnings per share - net earnings attributable to Acxiom stockholders | 0.51 | 0.59 | ||||||
| Diluted earnings per share: | ||||||||
| Numerator - net earnings | 38,026 | 44,020 | ||||||
| Denominator - weighted-average shares outstanding | 74,155 | 75,195 | ||||||
| Dilutive effect of common stock options, warrants and restricted stock | 2,301 | 1,792 | ||||||
| 76,456 | 76,987 | |||||||
| Diluted earnings per share | 0.50 | 0.57 | ||||||
| Diluted earnings per share - net earnings attributable to Acxiom stockholders: | ||||||||
| Numerator - net earnings attributable to Acxiom | 38,086 | 44,369 | ||||||
| Denominator - weighted-average shares outstanding | 74,155 | 75,195 | ||||||
| Dilutive effect of common stock options, warrants, and restricted stock | 2,301 | 1,792 | ||||||
| 76,456 | 76,987 | |||||||
| Diluted earnings per share - net earnings attributable to Acxiom stockholders | 0.50 | 0.58 | ||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||||||
| RESULTS BY SEGMENT | |||||||||||||
| (Unaudited) | |||||||||||||
| (Dollars in thousands) | |||||||||||||
| For the Three Months Ended | |||||||||||||
| December 31, | December 31, | ||||||||||||
| Revenue: | 2013 | 2012 | |||||||||||
| Marketing and data services | 206,662 | 195,146 | |||||||||||
| IT Infrastructure management services | 62,099 | 69,916 | |||||||||||
| Other services | 9,112 | 8,040 | |||||||||||
| Total revenue | 277,873 | 273,102 | |||||||||||
| Income from operations: | |||||||||||||
| Marketing and data services | 22,518 | 18,186 | |||||||||||
| IT Infrastructure management services | 6,316 | 9,622 | |||||||||||
| Other services | 500 | (1,036 | ) | ||||||||||
| Corporate | (9,554 | ) | 126 | ||||||||||
| Total income from operations | 19,780 | 26,898 | |||||||||||
| Margin: | |||||||||||||
| Marketing and data services | 10.9 | % | 9.3 | % | |||||||||
| IT Infrastructure management services | 10.2 | % | 13.8 | % | |||||||||
| Other services | 5.5 | % | -12.9 | % | |||||||||
| Total margin | 7.1 | % | 9.8 | % | |||||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||||||
| RESULTS BY SEGMENT | |||||||||||||
| (Unaudited) | |||||||||||||
| (Dollars in thousands) | |||||||||||||
| For the Nine Months Ended | |||||||||||||
| December 31, | December 31, | ||||||||||||
| Revenue: | 2013 | 2012 | |||||||||||
| Marketing and data services | 595,407 | 586,230 | |||||||||||
| IT Infrastructure management services | 198,309 | 210,267 | |||||||||||
| Other services | 26,621 | 25,731 | |||||||||||
| Total revenue | 820,337 | 822,228 | |||||||||||
| Income from operations: | |||||||||||||
| Marketing and data services | 51,189 | 59,151 | |||||||||||
| IT Infrastructure management services | 29,044 | 26,973 | |||||||||||
| Other services | 1,377 | (3,528 | ) | ||||||||||
| Corporate | (18,127 | ) | (66 | ) | |||||||||
| Total income from operations | 63,483 | 82,530 | |||||||||||
| Margin: | |||||||||||||
| Marketing and data services | 8.6 | % | 10.1 | % | |||||||||
| IT Infrastructure management services | 14.6 | % | 12.8 | % | |||||||||
| Other services | 5.2 | % | -13.7 | % | |||||||||
| Total margin | 7.7 | % | 10.0 | % | |||||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | ||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (Dollars in thousands) | ||||||||||||||
| December 31, | March 31, | $ | % | |||||||||||
| 2013 | 2013 | Variance | Variance | |||||||||||
|
Assets |
||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | 380,908 | 222,974 | 157,934 | 70.8 | % | |||||||||
| Trade accounts receivable, net | 168,931 | 159,882 | 9,049 | 5.7 | % | |||||||||
| Deferred income taxes | 14,055 | 13,496 | 559 | 4.1 | % | |||||||||
| Refundable income taxes | - | 5,809 | (5,809 | ) | (100.0 | %) | ||||||||
| Other current assets | 53,405 | 58,935 | (5,530 | ) | (9.4 | %) | ||||||||
| Total current assets | 617,299 | 461,096 | 156,203 | 33.9 | % | |||||||||
| Property and equipment | 846,950 | 822,439 | 24,511 | 3.0 | % | |||||||||
| Less - accumulated depreciation and amortization | 632,172 | 591,687 | 40,485 | 6.8 | % | |||||||||
| Property and equipment, net | 214,778 | 230,752 | (15,974 | ) | (6.9 | %) | ||||||||
| Software, net of accumulated amortization | 37,063 | 24,471 | 12,592 | 51.5 | % | |||||||||
| Goodwill | 380,591 | 381,129 | (538 | ) | (0.1 | %) | ||||||||
| Purchased software licenses, net of accumulated amortization | 19,509 | 23,604 | (4,095 | ) | (17.3 | %) | ||||||||
| Deferred costs, net | 24,564 | 42,971 | (18,407 | ) | (42.8 | %) | ||||||||
| Data acquisition costs | 8,142 | 10,631 | (2,489 | ) | (23.4 | %) | ||||||||
| Other assets, net | 11,935 | 13,052 | (1,117 | ) | (8.6 | %) | ||||||||
| 1,313,881 | 1,187,706 | 126,175 | 10.6 | % | ||||||||||
|
Liabilities and Stockholders' Equity |
||||||||||||||
| Current liabilities: | ||||||||||||||
| Current installments of long-term debt | 25,636 | 16,105 | 9,531 | 59.2 | % | |||||||||
| Trade accounts payable | 23,562 | 35,786 | (12,224 | ) | (34.2 | %) | ||||||||
| Accrued payroll and related expenses | 51,287 | 62,390 | (11,103 | ) | (17.8 | %) | ||||||||
| Other accrued expenses | 75,394 | 68,270 | 7,124 | 10.4 | % | |||||||||
| Deferred revenue | 50,149 | 41,388 | 8,761 | 21.2 | % | |||||||||
| Income taxes | 1,719 | 637 | 1,082 | 169.9 | % | |||||||||
| Total current liabilities | 227,747 | 224,576 | 3,171 | 1.4 | % | |||||||||
| Long-term debt | 297,703 | 237,400 | 60,303 | 25.4 | % | |||||||||
| Deferred income taxes | 91,823 | 94,918 | (3,095 | ) | (3.3 | %) | ||||||||
| Other liabilities | 11,253 | 11,444 | (191 | ) | (1.7 | %) | ||||||||
| Stockholders' equity: | ||||||||||||||
| Common stock | 12,527 | 12,134 | 393 | 3.2 | % | |||||||||
| Additional paid-in capital | 964,906 | 885,184 | 79,722 | 9.0 | % | |||||||||
| Retained earnings | 632,052 | 593,966 | 38,086 | 6.4 | % | |||||||||
| Accumulated other comprehensive income | 13,197 | 11,423 | 1,774 | 15.5 | % | |||||||||
| Treasury stock, at cost | (937,327 | ) | (882,959 | ) | (54,368 | ) | (6.2 | %) | ||||||
| Total Acxiom stockholders' equity | 685,355 | 619,748 | 65,607 | 10.6 | % | |||||||||
| Noncontrolling interest | - | (380 | ) | 380 | 100.0 | % | ||||||||
| Total equity | 685,355 | 619,368 | 65,987 | 10.7 | % | |||||||||
| 1,313,881 | 1,187,706 | 126,175 | 10.6 | % | ||||||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (Unaudited) | |||||||||
| (Dollars in thousands) | |||||||||
| For the Three Months Ended | |||||||||
| December 31, | |||||||||
| 2013 | 2012 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net earnings | 15,067 | 14,449 | |||||||
| Non-cash operating activities: | |||||||||
| Depreciation and amortization | 25,608 | 29,363 | |||||||
| Gain on disposal or impairment of assets | (2,567 | ) | - | ||||||
| Loss on early extinguishment of debt | 664 | - | |||||||
| Deferred income taxes | (3,138 | ) | (2,962 | ) | |||||
| Non-cash stock compensation expense | 3,455 | 3,103 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | 7,395 | (15,867 | ) | ||||||
| Other assets | 6,646 | 5,492 | |||||||
| Deferred costs | (89 | ) | (326 | ) | |||||
| Accounts payable and other liabilities | 8,114 | 5,525 | |||||||
| Deferred revenue | 2,617 | (234 | ) | ||||||
| Net cash provided by operating activities | 63,772 | 38,543 | |||||||
| Cash flows from investing activities: | |||||||||
| Capitalized software | (5,495 | ) | (5,443 | ) | |||||
| Capital expenditures | (6,700 | ) | (10,260 | ) | |||||
| Data acquisition costs | (1,786 | ) | (2,766 | ) | |||||
| Payments from investments | 3,633 | - | |||||||
| Net cash used by investing activities | (10,348 | ) | (18,469 | ) | |||||
| Cash flows from financing activities: | |||||||||
| Proceeds from debt | 300,000 | - | |||||||
| Payments of debt | (220,934 | ) | (6,252 | ) | |||||
| Fees for debt refinancing | (4,370 | ) | - | ||||||
| Sale of common stock | 50,547 | 2,128 | |||||||
| Acquisition of treasury stock | (13,826 | ) | (18,256 | ) | |||||
| Acquisition of NCI | (600 | ) | - | ||||||
| Net cash used by financing activities | 110,817 | (22,380 | ) | ||||||
| Effect of exchange rate changes on cash | 51 | 122 | |||||||
| Net change in cash and cash equivalents | 164,292 | (2,184 | ) | ||||||
| Cash and cash equivalents at beginning of period | 216,616 | 188,404 | |||||||
| Cash and cash equivalents at end of period | 380,908 | 186,220 | |||||||
| Supplemental cash flow information: | |||||||||
| Cash paid during the period for: | |||||||||
| Interest | 3,281 | 3,178 | |||||||
| Income taxes | 4,766 | 12,104 | |||||||
| Payments on capital leases and installment payment arrangements | 1,675 | 4,002 | |||||||
| Payments on software and data license liabilities | - | 78 | |||||||
| Other debt payments, excluding line of credit | 4,259 | 2,172 | |||||||
| Prepayment of debt | 215,000 | - | |||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (Unaudited) | |||||||||
| (Dollars in thousands) | |||||||||
| For the Nine Months Ended | |||||||||
| December 31, | |||||||||
| 2013 | 2012 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net earnings | 38,026 | 44,020 | |||||||
| Non-cash operating activities: | |||||||||
| Depreciation and amortization | 76,127 | 89,594 | |||||||
| Loss (gain) on disposal or impairment of assets | (2,567 | ) | 25 | ||||||
| Loss on early extinguishment of debt | 664 | - | |||||||
| Deferred income taxes | (3,666 | ) | (6,428 | ) | |||||
| Non-cash stock compensation expense | 10,344 | 8,906 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | 1,531 | (13,925 | ) | ||||||
| Other assets | 6,791 | 756 | |||||||
| Deferred costs | (89 | ) | (1,600 | ) | |||||
| Accounts payable and other liabilities | (12,553 | ) | (32,607 | ) | |||||
| Deferred revenue | 6,534 | (12,830 | ) | ||||||
| Net cash provided by operating activities | 121,142 | 75,911 | |||||||
| Cash flows from investing activities: | |||||||||
| Capitalized software | (19,109 | ) | (13,190 | ) | |||||
| Capital expenditures | (24,889 | ) | (21,976 | ) | |||||
| Data acquisition costs | (4,660 | ) | (6,464 | ) | |||||
| Payments from investments | 3,633 | - | |||||||
| Net cash used by investing activities | (45,025 | ) | (41,630 | ) | |||||
| Cash flows from financing activities: | |||||||||
| Proceeds from debt | 300,000 | - | |||||||
| Payments of debt | (230,167 | ) | (19,790 | ) | |||||
| Fees for debt refinancing | (4,370 | ) | - | ||||||
| Sale of common stock | 69,106 | 7,863 | |||||||
| Acquisition of treasury stock | (52,663 | ) | (65,356 | ) | |||||
| Acquisition of NCI | (600 | ) | - | ||||||
| Contingent consideration paid for prior acquisitions | - | (287 | ) | ||||||
| Net cash used by financing activities | 81,306 | (77,570 | ) | ||||||
| Effect of exchange rate changes on cash | 511 | (139 | ) | ||||||
| Net change in cash and cash equivalents | 157,934 | (43,428 | ) | ||||||
| Cash and cash equivalents at beginning of period | 222,974 | 229,648 | |||||||
| Cash and cash equivalents at end of period | 380,908 | 186,220 | |||||||
| Supplemental cash flow information: | |||||||||
| Cash paid during the period for: | |||||||||
| Interest | 9,267 | 9,678 | |||||||
| Income taxes | 15,774 | 48,268 | |||||||
| Payments on capital leases and installment payment arrangements | 6,914 | 12,948 | |||||||
| Payments on software and data license liabilities | - | 337 | |||||||
| Other debt payments, excluding line of credit | 8,253 | 6,505 | |||||||
| Prepayment of debt | 215,000 | - | |||||||
| Noncash investing and financing activities: | |||||||||
|
Acquisition of property and equipment under capital lease and installment payment arrangements |
- | 2,157 | |||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
| CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY | |||||||||||||||||||||||||||||||||||||
| AND RECONCILIATION TO OPERATING CASH FLOW | |||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||
| 06/30/12 | 09/30/12 | 12/31/12 | 03/31/13 | YTD FY2013 | 06/30/13 | 09/30/13 | 12/31/13 | YTD FY2014 | TTM 12/31/12 | TTM 12/31/13 | |||||||||||||||||||||||||||
| Net cash provided (used) by operating activities | (1,867 | ) | 39,235 | 38,543 | 74,221 | 150,132 | 16,849 | 40,521 | 63,772 | 121,142 | 132,354 | 195,363 | |||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||
| Disposition of operations | - | - | - | - | - | - | - | - | - | 73,468 | - | ||||||||||||||||||||||||||
| Payments for investments | - | - | - | - | - | - | - | 3,633 | 3,633 | - | 3,633 | ||||||||||||||||||||||||||
| Capitalized software | (3,673 | ) | (4,074 | ) | (5,443 | ) | (6,689 | ) | (19,879 | ) | (5,954 | ) | (7,660 | ) | (5,495 | ) | (19,109 | ) | (15,285 | ) | (25,798 | ) | |||||||||||||||
| Capital expenditures | (3,538 | ) | (8,178 | ) | (10,260 | ) | (16,515 | ) | (38,491 | ) | (8,920 | ) | (9,269 | ) | (6,700 | ) | (24,889 | ) | (34,420 | ) | (41,404 | ) | |||||||||||||||
| Data acquisition costs | (2,302 | ) | (1,396 | ) | (2,766 | ) | (2,106 | ) | (8,570 | ) | (1,961 | ) | (913 | ) | (1,786 | ) | (4,660 | ) | (10,227 | ) | (6,766 | ) | |||||||||||||||
| Payments on capital leases and installment payment arrangements | (4,562 | ) | (4,384 | ) | (4,002 | ) | (3,566 | ) | (16,514 | ) | (2,900 | ) | (2,339 | ) | (1,675 | ) | (6,914 | ) | (17,592 | ) | (10,480 | ) | |||||||||||||||
| Other required debt payments | (2,294 | ) | (2,298 | ) | (2,250 | ) | (3,515 | ) | (10,357 | ) | (1,990 | ) | (2,004 | ) | (4,259 | ) | (8,253 | ) | (11,306 | ) | (11,768 | ) | |||||||||||||||
| Total | (18,236 | ) | 18,905 | 13,822 | 41,830 | 56,321 | (4,876 | ) | 18,336 | 47,490 | 60,950 | 116,992 | 102,780 | ||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except earnings per share) | |||||||||||||||||||||||||||||||||||||
| Q3 FY14 to Q3 FY13 | |||||||||||||||||||||||||||||||||||||
| 06/30/12 | 09/30/12 | 12/31/12 | 03/31/13 | YTD FY2013 | 06/30/13 | 09/30/13 | 12/31/13 | YTD FY2014 | % | $ | |||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||||
| Marketing and data services | 192,482 | 198,602 | 195,146 | 202,510 | 788,740 | 187,793 | 200,952 | 206,662 | 595,407 | 5.9 | % | 11,516 | |||||||||||||||||||||||||
| IT Infrastructure management services | 70,290 | 70,061 | 69,916 | 65,202 | 275,469 | 69,385 | 66,825 | 62,099 | 198,309 | -11.2 | % | (7,817 | ) | ||||||||||||||||||||||||
| Other services | 8,887 | 8,804 | 8,040 | 9,419 | 35,150 | 9,015 | 8,494 | 9,112 | 26,621 | 13.3 | % | 1,072 | |||||||||||||||||||||||||
| Total revenue | 271,659 | 277,467 | 273,102 | 277,131 | 1,099,359 | 266,193 | 276,271 | 277,873 | 820,337 | 1.7 | % | 4,771 | |||||||||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||||||||||||||||
| Cost of revenue | 209,311 | 209,164 | 208,848 | 213,317 | 840,640 | 204,506 | 207,394 | 210,053 | 621,953 | 0.6 | % | 1,205 | |||||||||||||||||||||||||
| Selling, general and administrative | 36,764 | 38,063 | 37,482 | 41,681 | 153,990 | 37,615 | 42,859 | 43,383 | 123,857 | 15.7 | % | 5,901 | |||||||||||||||||||||||||
| Gains, losses and other items, net | 160 | 32 | (126 | ) | 1,944 | 2,010 | - | 6,387 | 4,657 | 11,044 | -3796.0 | % | 4,783 | ||||||||||||||||||||||||
| Total operating costs and expenses | 246,235 | 247,259 | 246,204 | 256,942 | 996,640 | 242,121 | 256,640 | 258,093 | 756,854 | 4.8 | % | 11,889 | |||||||||||||||||||||||||
| Income from operations | 25,424 | 30,208 | 26,898 | 20,189 | 102,719 | 24,072 | 19,631 | 19,780 | 63,483 | -26.5 | % | (7,118 | ) | ||||||||||||||||||||||||
| % Margin | 9.4 | % | 10.9 | % | 9.8 | % | 7.3 | % | 9.3 | % | 9.0 | % | 7.1 | % | 7.1 | % | 7.7 | % | |||||||||||||||||||
| Other expense | |||||||||||||||||||||||||||||||||||||
| Interest expense | (3,240 | ) | (3,317 | ) | (3,178 | ) | (2,959 | ) | (12,694 | ) | (3,019 | ) | (2,980 | ) | (3,114 | ) | (9,113 | ) | -2.0 | % | 64 | ||||||||||||||||
| Other, net | (547 | ) | (54 | ) | 565 | 188 | 152 | 104 | (350 | ) | 1,484 | 1,238 | 162.7 | % | 919 | ||||||||||||||||||||||
| Total other expense | (3,787 | ) | (3,371 | ) | (2,613 | ) | (2,771 | ) | (12,542 | ) | (2,915 | ) | (3,330 | ) | (1,630 | ) | (7,875 | ) | -37.6 | % | 983 | ||||||||||||||||
| Earnings before income taxes | 21,637 | 26,837 | 24,285 | 17,418 | 90,177 | 21,157 | 16,301 | 18,150 | 55,608 | -25.3 | % | (6,135 | ) | ||||||||||||||||||||||||
| Income taxes | 8,438 | 10,465 | 9,836 | 4,319 | 33,058 | 8,062 | 6,437 | 3,083 | 17,582 | -68.7 | % | (6,753 | ) | ||||||||||||||||||||||||
| Net earnings | 13,199 | 16,372 | 14,449 | 13,099 | 57,119 | 13,095 | 9,864 | 15,067 | 38,026 | 4.3 | % | 618 | |||||||||||||||||||||||||
|
Less: Net gain (loss) attributable to noncontrolling interest |
(134 | ) | (139 | ) | (76 | ) | (139 | ) | (488 | ) | (85 | ) | 25 | - | (60 | ) | -100.0 | % | 76 | ||||||||||||||||||
| Net earnings attributable to Acxiom | 13,333 | 16,511 | 14,525 | 13,238 | 57,607 | 13,180 | 9,839 | 15,067 | 38,086 | 3.7 | % | 542 | |||||||||||||||||||||||||
|
Diluted earnings per share - net earnings attributable to Acxiom stockholders |
0.17 | 0.21 | 0.19 | 0.18 | 0.75 | 0.17 | 0.13 | 0.19 | 0.50 | 0.0 | % | 0.00 | |||||||||||||||||||||||||
| ACXIOM CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
| RESULTS BY SEGMENT | |||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||
| Q3 FY14 to Q3 FY13 | |||||||||||||||||||||||||||||||||||||
| 06/30/12 | 09/30/12 | 12/31/12 | 03/31/13 | YTD FY2013 | 06/30/13 | 09/30/13 | 12/31/13 | YTD FY2014 | % | $ | |||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||||
| Marketing and data services | 192,482 | 198,602 | 195,146 | 202,510 | 788,740 | 187,793 | 200,952 | 206,662 | 595,407 | 6 | % | 11,516 | |||||||||||||||||||||||||
| IT Infrastructure management services | 70,290 | 70,061 | 69,916 | 65,202 | 275,469 | 69,385 | 66,825 | 62,099 | 198,309 | -11 | % | (7,817 | ) | ||||||||||||||||||||||||
| Other services | 8,887 | 8,804 | 8,040 | 9,419 | 35,150 | 9,015 | 8,494 | 9,112 | 26,621 | 13 | % | 1,072 | |||||||||||||||||||||||||
| Total revenue | 271,659 | 277,467 | 273,102 | 277,131 | 1,099,359 | 266,193 | 276,271 | 277,873 | 820,337 | 2 | % | 4,771 | |||||||||||||||||||||||||
| Marketing and data services | 18,703 | 22,262 | 18,186 | 20,866 | 80,017 | 12,657 | 16,014 | 22,518 | 51,189 | 24 | % | 4,332 | |||||||||||||||||||||||||
| IT Infrastructure management services | 8,831 | 8,520 | 9,622 | 2,357 | 29,330 | 10,761 | 11,967 | 6,316 | 29,044 | -34 | % | (3,306 | ) | ||||||||||||||||||||||||
| Other services | (1,950 | ) | (542 | ) | (1,036 | ) | (1,090 | ) | (4,618 | ) | 654 | 223 | 500 | 1,377 | -148 | % | 1,536 | ||||||||||||||||||||
| Corporate | (160 | ) | (32 | ) | 126 | (1,944 | ) | (2,010 | ) | - | (8,573 | ) | (9,554 | ) | (18,127 | ) | -7683 | % | (9,680 | ) | |||||||||||||||||
| Total income from operations | 25,424 | 30,208 | 26,898 | 20,189 | 102,719 | 24,072 | 19,631 | 19,780 | 63,483 | -26 | % | (7,118 | ) | ||||||||||||||||||||||||
| Margin: | |||||||||||||||||||||||||||||||||||||
| Marketing and data services | 9.7 | % | 11.2 | % | 9.3 | % | 10.3 | % | 10.1 | % | 6.7 | % | 8.0 | % | 10.9 | % | 8.6 | % | |||||||||||||||||||
| IT Infrastructure management services | 12.6 | % | 12.2 | % | 13.8 | % | 3.6 | % | 10.6 | % | 15.5 | % | 17.9 | % | 10.2 | % | 14.6 | % | |||||||||||||||||||
| Other services | -21.9 | % | -6.2 | % | -12.9 | % | -11.6 | % | -13.1 | % | 7.3 | % | 2.6 | % | 5.5 | % | 5.2 | % | |||||||||||||||||||
| Total | 9.4 | % | 10.9 | % | 9.8 | % | 7.3 | % | 9.3 | % | 9.0 | % | 7.1 | % | 7.1 | % | 7.7 | % | |||||||||||||||||||
