ACXM Acxiom Holdngs (delisted)

Acxiom® Corporation (Nasdaq: ACXM), a recognized leader in marketing services and technology, today announced financial results for its second quarter ended September 30, 2012.

Revenue from continuing operations was $277 million, down 3 percent compared to $286 million for the second quarter last year. Income from continuing operations increased 12 percent to $30 million in the current quarter, compared to $27 million in the prior year. Marketing and data services segment revenue was roughly flat at $194 million, compared to $196 million; U.S. marketing and data services revenue was up 2 percent to $166 million, compared to $162 million. IT infrastructure management segment revenue decreased 5 percent to $70 million in the current quarter compared to $74 million. Earnings per diluted share attributable to Acxiom stockholders were up 40 percent in the current quarter to $0.21, compared to diluted earnings per share of $0.15. Diluted earnings per share increased 11 percent as compared to $0.19 in the prior year, excluding unusual items.

Operating cash flow was $176 million for the trailing twelve months, compared to $197 million for the comparable period a year ago. Free cash flow to equity increased 68 percent to $159 million for the trailing twelve months, compared to $95 million for the comparable period. Free cash flow to equity for the trailing twelve months included $73 million in proceeds from the sale of the company’s background screening business. Free cash flow available to equity is a non-GAAP financial measure. A reconciliation to the comparable GAAP measure, operating cash flow, is attached.

“We are encouraged by several aspects of our first half performance and direction,” said Acxiom CEO Scott Howe. “A leading indicator of our future success is the performance of our customers. We are pleased that two of our clients, United Airlines and Macy’s, were both recently named Marketer of the Year by the Direct Marketing Association. While we have much to do, particularly as it relates to our top-line growth, we are building success stories and are excited about what’s ahead for our company.”

Second Quarter Highlights:

• Operating margin increased approximately 1.5 percentage points to 10.9 percent, as a result of improvements in the company’s IT infrastructure management segment and international operations. Excluding unusual items operating margin improved by approximately 60 basis points.
• Acxiom repurchased 800,000 shares for $14 million during the quarter. Since August 2011, the company has repurchased 9 million shares, or approximately 11 percent of the outstanding common stock, for $115 million. The company has remaining capacity of approximately $35 million out of the total stock repurchase authorization of $150 million.
• In the quarter, Acxiom clients United Airlines and Macy’s were both named “Marketer of the Year” by the Direct Marketing Association. United also received the top “Innovation Award.” These awards were given for outstanding achievement in multichannel direct marketing and represent the DMA’s highest honors. United partnered with Acxiom for its MileagePlus program, which delivered personalized and relevant communications to its members. Acxiom worked with Macy’s to create a more complete view of each customer to enable insight-driven communications coordinated across offline and digital channels.
• Acxiom’s Board of Directors voted to expand its membership from nine to 10 directors and appointed Richard P. Fox, a business consultant and financial expert, to the board. Fox has a strong background in public company financial and accounting matters complemented by his work with digital marketing companies.
• Acxiom Chief Marketing Officer Tim Suther was selected by the ranking committee of ExecRank as a Top CMO for 2012. The rankings are the result of two years of research and feedback from evaluation committees and top CMOs. ExecRank evaluated over 15,000 CMOs this year to identify the top 500.

Segment Results:

• Marketing and Data Services: Revenue for the second quarter was $194 million, roughly flat as compared to $196 million for the same period a year ago. U.S. revenue of $166 million was up 2 percent but was offset by declines internationally. Income from operations for the second quarter was $23 million, compared to $27 million in the prior period. Operating margin was 12 percent, compared to 14 percent in the previous year.
• IT Infrastructure Management: Revenue for the second quarter decreased 5 percent to $70 million, compared to $74 million for the same period a year ago. Income from operations for the quarter was $9 million, compared to $5 million in the prior period. Operating margin was approximately 12 percent, compared to 7 percent a year ago.
• Other Services: Revenue was $13 million as compared to $17 million in the prior year. Loss from operations was approximately $2 million, compared to $3 million in the prior-year period.

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. Acxiom’s estimates for fiscal 2013 are as follows:

• We continue to expect revenue to be flat to slightly down versus the prior year.
• We now expect earnings per diluted share to be roughly $0.70 as compared to our previous guidance of $0.60 to $0.65.

Conference Call

Acxiom will hold a conference call at 4:00 p.m. CDT 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/FY13_Q2_Financials for the detailed financial information we typically attach to our earnings releases.

About Acxiom

Acxiom is a recognized leader in marketing services and technology that enable marketers to successfully manage audiences, personalize consumer experiences and create profitable customer relationships. Our superior industry-focused, consultative approach combines consumer data and analytics, databases, data integration and consulting solutions for personalized, multichannel marketing strategies. Acxiom leverages over 40 years of experience in data management to deliver high-performance, highly secure, reliable information management services. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, USA, and serves clients around the world from locations in the United States, Europe, Asia-Pacific, and South America. 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 from continuing operations and earnings per share as well as statements regarding building momentum and future opportunities for growth. 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, which could lead to decreases in our operating results; 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 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 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, 2012, which was filed with the Securities and Exchange Commission on May 25, 2012.

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.

  ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings per share)                 For the Three Months Ended September 30, $ % 2012 2011 Variance Variance   Revenue: Marketing and data services 194,409 195,857 (1,448 ) (0.7 %) IT Infrastructure management services 70,061 73,712 (3,651 ) (5.0 %) Other services 12,997   16,863   (3,866 ) (22.9 %) Total revenue 277,467 286,432 (8,965 ) (3.1 %)   Operating costs and expenses: Cost of revenue 209,886 217,487 7,601 3.5 % Selling, general and administrative 37,341 39,429 2,088 5.3 % Gains, losses and other items, net 32   2,465   2,433 98.7 %   Total operating costs and expenses 247,259   259,381   12,122 4.7 %   Income from operations 30,208   27,051   3,157 11.7 % % Margin 10.9 % 9.4 % Other expense: Interest expense (3,317 ) (4,719 ) 1,402 29.7 % Other, net (54 ) (965 ) 911 94.4 %   Total other expense (3,371 ) (5,684 ) 2,313 40.7 %   Earnings from continuing operations before income taxes 26,837 21,367 5,470 25.6 %   Income taxes 10,465   9,528   (937 ) (9.8 %)   Net earnings from continuing operations 16,372 11,839 4,533 38.3 %   Earnings from discontinued operations, net of tax -   1,138   (1,138 ) (100.0 %)   Net earnings 16,372 12,977 3,395 26.2 %   Less: Net gain (loss) attributable to noncontrolling interest (139 ) 685   (824 ) (120.3 %)   Net earnings attributable to Acxiom 16,511   12,292   4,219 34.3 %   Basic earnings per share: Net earnings from continuing operations 0.22 0.15 0.07 46.7 % Earnings from discontinued operations 0.00   0.01   (0.01 ) (100.0 %) Net earnings 0.22   0.16   0.06 37.5 %   Net earnings attributable to Acxiom stockholders 0.22   0.15   0.07 46.7 %     Diluted earnings per share: Net earnings from continuing operations 0.21 0.15 0.06 40.0 % Earnings from discontinued operations 0.00   0.01   (0.01 ) (100.0 %) Net earnings 0.21   0.16   0.05 31.3 %   Net earnings attributable to Acxiom stockholders 0.21   0.15   0.06 40.0 %     ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings per share)                 For the Six Months Ended September 30, $ % 2012 2011 Variance Variance   Revenue: Marketing and data services 380,148 380,853 (705 ) (0.2 %) IT Infrastructure management services 140,351 146,762 (6,411 ) (4.4 %) Other services 28,627   34,861   (6,234 ) (17.9 %) Total revenue 549,126 562,476 (13,350 ) (2.4 %)   Operating costs and expenses: Cost of revenue 419,212 435,776 16,564 3.8 % Selling, general and administrative 74,090 76,236 2,146 2.8 % Gains, losses and other items, net 192   2,709   2,517 92.9 %   Total operating costs and expenses 493,494   514,721   21,227 4.1 %   Income from operations 55,632   47,755   7,877 16.5 % % Margin 10.1 % 8.5 % Other expense: Interest expense (6,557 ) (10,174 ) 3,617 35.6 % Other, net (601 ) (1,052 ) 451 42.9 %   Total other expense (7,158 ) (11,226 ) 4,068 36.2 %   Earnings from continuing operations before income taxes 48,474 36,529 11,945 32.7 %   Income taxes 18,903   15,591   (3,312 ) (21.2 %)   Net earnings from continuing operations 29,571 20,938 8,633 41.2 %   Earnings from discontinued operations, net of tax -   2,054   (2,054 ) (100.0 %)   Net earnings 29,571 22,992 6,579 28.6 %   Less: Net loss attributable to noncontrolling interest (273 ) (275 ) 2 0.7 %   Net earnings attributable to Acxiom 29,844   23,267   6,577 28.3 %   Basic earnings per share: Net earnings from continuing operations 0.39 0.26 0.13 50.0 % Earnings from discontinued operations 0.00   0.03   (0.03 ) (100.0 %) Net earnings 0.39   0.28   0.11 39.3 %   Net earnings attributable to Acxiom stockholders 0.39   0.29   0.10 34.5 %     Diluted earnings per share: Net earnings from continuing operations 0.38 0.26 0.12 46.2 % Earnings from discontinued operations 0.00   0.03   (0.03 ) (100.0 %) Net earnings 0.38   0.28   0.10 35.7 %   Net earnings attributable to Acxiom stockholders 0.38   0.28   0.10 35.7 %     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 Six Months Ended September 30, September 30, 2012 2011 2012 2011     Earnings from continuing operations before income taxes 26,837 21,367 48,474 36,529   Income taxes 10,465   9,528   18,903   15,591     Net earnings from continuing operations 16,372 11,839 29,571 20,938   Earnings from discontinued operations, net of tax -   1,138   -   2,054     Net earnings 16,372 12,977 29,571 22,992   Less: Net gain (loss) attributable to noncontrolling interest (139 ) 685   (273 ) (275 )   Net earnings attributable to Acxiom 16,511   12,292   29,844   23,267     Earnings per share attributable to Acxiom stockholders:   Basic 0.22   0.15   0.39   0.29     Diluted 0.21   0.15   0.38   0.29     Unusual items:   MENA disposal - 2,512 - 2,512 Disposal of Netherlands and Portugal operations - (47 ) - (75 ) Restructuring charges and other adjustments 32   -   192   272     Total unusual items, continuing operations 32   2,465   192   2,709     Earnings from continuing operations before income taxes and excluding unusual items 26,869 23,832 48,666 39,238   Income taxes 10,477   9,531   18,978   15,692     Non-GAAP earnings from continuing operations 16,392 14,301 29,688 23,546   Earnings from discontinued operations, net of tax -   1,138   -   2,054     Non-GAAP net earnings 16,392 15,439 29,688 25,600   Less: Net loss attributable to noncontrolling interest (139 ) (179 ) (273 ) (1,139 )   Non-GAAP Net earnings attributable to Acxiom 16,531   15,618   29,961   26,739     Non-GAAP earnings per share attributable to Acxiom stockholders:   Basic 0.21   0.19   0.40   0.33     Diluted 0.21   0.19   0.39   0.33     Diluted weighted average shares 77,025   81,597   77,541   81,805       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 Six Months Ended September 30, September 30, 2012 2011 2012 2011   Income from operations 30,208 27,051 55,632 47,755   Unusual items 32 2,465 192 2,709   Income from operations before unusual items 30,240 29,516 55,824 50,464     ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE (Unaudited) (In thousands, except earnings per share)         For the Three Months Ended   September 30, September 30, 2012 2011   Basic earnings per share from continuing operations: Numerator - net earnings 16,372 11,839 Denominator - weighted-average shares outstanding 75,009 80,985 Basic earnings per share 0.22 0.15   Basic earnings per share - net earnings attributable to Acxiom stockholders: Numerator - net earnings attributable to Acxiom 16,511 12,292 Denominator - weighted-average shares outstanding 75,009 80,985 Basic earnings per share - net earnings attributable to Acxiom stockholders 0.22 0.15   Diluted earnings per share from continuing operations: Numerator - net earnings 16,372 11,839   Denominator - weighted-average shares outstanding 75,009 80,985 Dilutive effect of common stock options, warrants and restricted stock 2,016 612 77,025 81,597   Diluted earnings per share from continuing operations 0.21 0.15   Diluted earnings per share - net earnings attributable to Acxiom stockholders: Numerator - net earnings attributable to Acxiom 16,511 12,292   Denominator - weighted-average shares outstanding 75,009 80,985 Dilutive effect of common stock options, warrants, and restricted stock 2,016 612 77,025 81,597   Diluted earnings per share - net earnings attributable to Acxiom stockholders 0.21 0.15     ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE (Unaudited) (In thousands, except earnings per share)         For the Six Months Ended   September 30, September 30, 2012 2011   Basic earnings per share from continuing operations: Numerator - net earnings 29,571 20,938 Denominator - weighted-average shares outstanding 75,741 80,963 Basic earnings per share 0.39 0.26   Basic earnings per share - net earnings attributable to Acxiom stockholders: Numerator - net earnings attributable to Acxiom 29,844 23,267 Denominator - weighted-average shares outstanding 75,741 80,963 Basic earnings per share - net earnings attributable to Acxiom stockholders 0.39 0.29   Diluted earnings per share from continuing operations: Numerator - net earnings 29,571 20,938   Denominator - weighted-average shares outstanding 75,741 80,963 Dilutive effect of common stock options, warrants and restricted stock 1,800 842 77,541 81,805   Diluted earnings per share from continuing operations 0.38 0.26   Diluted earnings per share - net earnings attributable to Acxiom stockholders: Numerator - net earnings attributable to Acxiom 29,844 23,267   Denominator - weighted-average shares outstanding 75,741 80,963 Dilutive effect of common stock options, warrants, and restricted stock 1,800 842 77,541 81,805  

Diluted earnings per share - net earnings attributable to Acxiom stockholders

0.38 0.28     ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)         For the Three Months Ended   September 30, September 30, Revenue: 2012 2011   Marketing and data services 194,409 195,857 IT Infrastructure management services 70,061 73,712 Other services 12,997   16,863     Total revenue 277,467   286,432       Income from continuing operations:   Marketing and data services 23,331 27,078 IT Infrastructure management services 8,520 5,091 Other services (1,611 ) (2,653 ) Corporate (32 ) (2,465 )   Total income from continuing operations 30,208   27,051     Margin:   Marketing and data services 12.0 % 13.8 % IT Infrastructure management services 12.2 % 6.9 % Other services -12.4 % -15.7 %   Total margin 10.9 % 9.4 %     ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)         For the Six Months Ended   September 30, September 30, Revenue: 2012 2011   Marketing and data services 380,148 380,853 IT Infrastructure management services 140,351 146,762 Other services 28,627   34,861     Total revenue 549,126   562,476       Income from continuing operations:   Marketing and data services 41,306 44,338 IT Infrastructure management services 17,351 9,338 Other services (2,833 ) (3,212 ) Corporate (192 ) (2,709 )   Total income from continuing operations 55,632   47,755     Margin:   Marketing and data services 10.9 % 11.6 % IT Infrastructure management services 12.4 % 6.4 % Other services -9.9 % -9.2 %   Total margin 10.1 % 8.5 %                   ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)   September 30, March 31, $ % 2012 2012 Variance Variance

Assets

Current assets: Cash and cash equivalents 188,404 229,648 (41,244 ) (18.0 %) Trade accounts receivable, net 166,675 169,446 (2,771 ) (1.6 %) Deferred income taxes 14,837 15,107 (270 ) (1.8 %) Other current assets 58,990   57,804   1,186 2.1 %   Total current assets 428,906 472,005 (43,099 ) (9.1 %)   Property and equipment 805,620 913,073 (107,453 ) (11.8 %) Less - accumulated depreciation and amortization 569,340   659,700   (90,360 ) (13.7 %)   Property and equipment, net 236,280   253,373   (17,093 ) (6.7 %)   Software, net of accumulated amortization 16,280 13,211 3,069 23.2 % Goodwill 382,272 382,285 (13 ) (0.0 %) Purchased software licenses, net of accumulated amortization 23,791 25,294 (1,503 ) (5.9 %) Deferred costs, net 52,286 61,977 (9,691 ) (15.6 %) Data acquisition costs 11,985 15,009 (3,024 ) (20.1 %) Other assets, net 2,933   3,697   (764 ) (20.7 %)   1,154,733   1,226,851   (72,118 ) (5.9 %)  

Liabilities and Stockholders’ Equity

Current liabilities: Current installments of long-term debt 22,492 26,336 (3,844 ) (14.6 %) Trade accounts payable 17,781 31,030 (13,249 ) (42.7 %) Accrued payroll and related expenses 39,382 54,839 (15,457 ) (28.2 %) Other accrued expenses 81,073 77,062 4,011 5.2 % Deferred revenue 47,432 59,949 (12,517 ) (20.9 %) Income taxes 2,499   16,400   (13,901 ) (84.8 %)   Total current liabilities 210,659   265,616   (54,957 ) (20.7 %)   Long-term debt 244,347 251,886 (7,539 ) (3.0 %)   Deferred income taxes 89,578 93,039 (3,461 ) (3.7 %)   Other liabilities 4,354 4,455 (101 ) (2.3 %)  

Stockholders’ equity:

Common stock 12,094 12,003 91 0.8 % Additional paid-in capital 872,389 860,165 12,224 1.4 % Retained earnings 566,203 536,359 29,844 5.6 % Accumulated other comprehensive income 13,652 13,601 51 0.4 % Treasury stock, at cost (858,378 ) (810,381 ) (47,997 ) (5.9 %)

Total Acxiom stockholders’ equity

605,960 611,747 (5,787 ) (0.9 %) Noncontrolling interest (165 ) 108   (273 ) (252.8 %)   Total equity 605,795   611,855   (6,060 ) (1.0 %)   1,154,733   1,226,851   (72,118 ) (5.9 %)     ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)         For the Three Months Ended September 30,         2012     2011   Cash flows from operating activities: Net earnings 16,372 12,977 Non-cash operating activities: Depreciation and amortization 29,236 34,959 Loss on disposal or impairment of assets 1 2,888 Deferred income taxes (2,063 ) 1,098 Non-cash stock compensation expense 3,150 2,845 Changes in operating assets and liabilities: Accounts receivable 6,551 (6,054 ) Other assets (3,339 ) 3,925 Deferred costs (627 ) (445 ) Accounts payable and other liabilities (4,668 ) 9,750 Deferred revenue (5,378 ) (4,229 ) Net cash provided by operating activities 39,235   57,714   Cash flows from investing activities: Disposition of operations - (1,043 ) Capitalized software (4,074 ) (991 ) Capital expenditures (8,178 ) (12,134 ) Data acquisition costs (1,396 ) (1,774 ) Net cash used by investing activities (13,648 ) (15,942 ) Cash flows from financing activities: Payments of debt (6,682 ) (81,463 ) Sale of common stock 3,974 2,779 Acquisition of treasury stock (14,003 ) (34,100 ) Net cash used by financing activities (16,711 ) (112,784 ) Effect of exchange rate changes on cash 246   (919 )   Net change in cash and cash equivalents 9,122 (71,931 ) Cash and cash equivalents at beginning of period 179,282   191,094   Cash and cash equivalents at end of period 188,404   119,163     Supplemental cash flow information: Cash paid during the period for: Interest 3,277 5,742 Income taxes 19,971 4,289 Payments on capital leases and installment payment arrangements 4,384 4,184 Payments on software and data license liabilities 130 124 Other debt payments 2,168 2,155 Prepayment of debt - 75,000 Noncash investing and financing activities:

Acquisition of property and equipment under capital lease and installment payment arrangements

- 944     ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)         For the Six Months Ended September 30,         2012     2011   Cash flows from operating activities: Net earnings 29,571 22,992 Non-cash operating activities: Depreciation and amortization 60,231 70,254 Loss on disposal or impairment of assets 25 2,893 Deferred income taxes (3,466 ) 1,135 Non-cash stock compensation expense 5,803 5,200 Changes in operating assets and liabilities: Accounts receivable 1,942 (9,676 ) Other assets (4,736 ) (4,592 ) Deferred costs (1,274 ) (831 ) Accounts payable and other liabilities (38,132 ) 6,071 Deferred revenue (12,596 ) (2,978 ) Net cash provided by operating activities 37,368   90,468   Cash flows from investing activities: Disposition of operations (1,043 ) Capitalized software (7,747 ) (1,520 ) Capital expenditures (11,716 ) (24,711 ) Data acquisition costs (3,698 ) (4,550 ) Net cash paid in acquisitions -   (255 ) Net cash used by investing activities (23,161 ) (32,079 ) Cash flows from financing activities: Payments of debt (13,538 ) (113,775 ) Sale of common stock 5,735 2,818 Acquisition of treasury stock (47,100 ) (34,100 ) Contingent consideration paid for prior acquisitions (287 ) (326 ) Net cash used by financing activities (55,190 ) (145,383 ) Effect of exchange rate changes on cash (261 ) (866 )   Net change in cash and cash equivalents (41,244 ) (87,860 ) Cash and cash equivalents at beginning of period 229,648   207,023   Cash and cash equivalents at end of period 188,404   119,163     Supplemental cash flow information: Cash paid during the period for: Interest 6,500 11,331 Income taxes 36,134 5,387 Payments on capital leases and installment payment arrangements 8,946 8,978 Payments on software and data license liabilities 259 491 Other debt payments 4,333 4,306 Prepayment of debt - 100,000 Noncash investing and financing activities:

Acquisition of property and equipment under capital lease and installment payment arrangements

2,157 4,691     ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY AND RECONCILIATION TO OPERATING CASH FLOW (Unaudited) (Dollars in thousands)                                               06/30/11     09/30/11     12/31/11     03/31/12     FY2012 06/30/12     09/30/12     YTD FY2013 TTM 9/30/11     TTM 9/30/12  

Net cash provided (used) by operating activities

32,754 57,714 82,540 56,443 229,451 (1,867 ) 39,235 37,368 196,733 176,351   Less: Disposition of operations - (1,043 ) - 73,468 72,425 - - - (1,043 ) 73,468 Capitalized software (529 ) (991 ) (1,647 ) (2,095 ) (5,262 ) (3,673 ) (4,074 ) (7,747 ) (3,508 ) (11,489 ) Capital expenditures (12,577 ) (12,134 ) (14,436 ) (12,444 ) (51,591 ) (3,538 ) (8,178 ) (11,716 ) (53,246 ) (38,596 ) Data acquisition costs (2,776 ) (1,774 ) (3,999 ) (3,763 ) (12,312 ) (2,302 ) (1,396 ) (3,698 ) (10,965 ) (11,460 ) Payments on capital leases and installment payment arrangements (4,794 ) (4,184 ) (4,709 ) (4,644 ) (18,331 ) (4,562 ) (4,384 ) (8,946 ) (19,956 ) (18,299 ) Payments on software and data license liabilities (367 ) (124 ) (125 ) (2,300 ) (2,916 ) (129 ) (130 ) (259 ) (4,750 ) (2,684 ) Other required debt payments (2,151 )     (2,155 )     (2,159 )     (2,164 )     (8,629 ) (2,165 )     (2,168 )     (4,333 ) (8,603 )     (8,656 )   Total 9,560       35,309       55,465       102,501       202,835   (18,236 )     18,905       669   94,662       158,635       CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings per share)                                             Q2 FY13 to Q2 FY12 06/30/11     09/30/11     12/31/11     03/31/12     FY2012 06/30/12     09/30/12     YTD FY2013 %     $ Revenue: Marketing and data services 184,996 195,857 187,461 203,400 771,714 185,739 194,409 380,148 -0.7 % (1,448 ) IT Infrastructure management services 73,050 73,712 77,173 67,590 291,525 70,290 70,061 140,351 -5.0 % (3,651 ) Other services 17,998       16,863       16,259       16,265       67,385   15,630       12,997       28,627   -22.9 %     (3,866 ) Total revenue 276,044 286,432 280,893 287,255 1,130,624 271,659 277,467 549,126 -3.1 % (8,965 )   Operating costs and expenses: Cost of revenue 218,289 217,487 213,925 213,788 863,489 209,326 209,886 419,212 -3.5 % (7,601 ) Selling, general and administrative 36,807 39,429 36,318 38,577 151,131 36,749 37,341 74,090 -5.3 % (2,088 ) Impairment of goodwill and other intangibles - - 17,803 - 17,803 - - - 0 Gains, losses and other items, net 244       2,465       (2,671 )     12,600       12,638   160       32       192   -98.7 %     (2,433 )   Total operating costs and expenses 255,340 259,381 265,375 264,965 1,045,061 246,235 247,259 493,494 4.7 % 12,122   Income from operations 20,704 27,051 15,518 22,290 85,563 25,424 30,208 55,632 11.7 % 3,157 % Margin 7.5 % 9.4 % 5.5 % 7.8 % 7.6 % 9.4 % 10.9 % 10.1 % Other expense Interest expense (5,455 ) (4,719 ) (3,883 ) (3,391 ) (17,448 ) (3,240 ) (3,317 ) (6,557 ) 29.7 % 1,402 Other, net (87 )     (965 )     (98 )     (219 )     (1,369 ) (547 )     (54 )     (601 ) 94.4 %     911   Total other expense (5,542 ) (5,684 ) (3,981 ) (3,610 ) (18,817 ) (3,787 ) (3,371 ) (7,158 ) 40.7 % 2,313   Earnings from continuing operations before income taxes 15,162 21,367 11,537 18,680 66,746 21,637 26,837 48,474 25.6 % 5,470 Income taxes 6,063       9,528       9,700       3,838       29,129   8,438       10,465       18,903   -9.8 %     (937 )   Net earnings from continuing operations 9,099 11,839 1,837 14,842 37,617 13,199 16,372 29,571 38.3 % 4,533   Earnings from discontinued operations, net of tax 916       1,138       814       31,031       33,899   -       -       -   -100.0 %     (1,138 )   Net earnings 10,015 12,977 2,651 45,873 71,516 13,199 16,372 29,571 26.2 % 3,395   Less: Net earnings (loss) attributable to noncontrolling interest (960 )     685       (5,279 )     (193 )     (5,747 ) (134 )     (139 )     (273 ) -120.3 %     (824 )   Net earnings attributable to Acxiom 10,975       12,292       7,930       46,066       77,263   13,333       16,511       29,844   34.3 %     4,219    

Diluted earnings per share - net earnings attributable to Acxiom stockholders

0.13       0.15       0.10       0.58       0.96   0.17       0.21       0.38   40.0 %     0.06       ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)                                             Q2 FY13 to Q2 FY12 06/30/11     09/30/11     12/31/11     03/31/12     FY2012 06/30/12     09/30/12     YTD FY2013 %     $   Revenue:   Marketing and data services 184,996 195,857 187,461 203,400 771,714 185,739 194,409 380,148 -1 % (1,448 ) IT Infrastructure management services 73,050 73,712 77,173 67,590 291,525 70,290 70,061 140,351 -5 % (3,651 ) Other services 17,998       16,863       16,259       16,265       67,385   15,630       12,997       28,627   -23 %     (3,866 )   Total revenue 276,044       286,432       280,893       287,255       1,130,624   271,659       277,467       549,126   -3 %     (8,965 )   Income (loss) from operations:   Marketing and data services 17,260 27,078 21,388 30,094 95,820 17,975 23,331 41,306 -14 % (3,747 ) IT Infrastructure management services 4,247 5,091 9,795 5,855 24,988 8,831 8,520 17,351 67 % 3,429 Other services (559 ) (2,653 ) (533 ) (1,059 ) (4,804 ) (1,222 ) (1,611 ) (2,833 ) 39 % 1,042 Corporate (244 ) (2,465 ) (15,132 ) (12,600 ) (30,441 ) (160 ) (32 ) (192 ) 99 % 2,433     Total income from operations 20,704       27,051       15,518       22,290       85,563   25,424       30,208       55,632   12 %     3,157     Margin:   Marketing and data services 9.3 % 13.8 % 11.4 % 14.8 % 12.4 % 9.7 % 12.0 % 10.9 % IT Infrastructure management services 5.8 % 6.9 % 12.7 % 8.7 % 8.6 % 12.6 % 12.2 % 12.4 % Other services -3.1 % -15.7 % -3.3 % -6.5 % -7.1 % -7.8 % -12.4 % -9.9 %   Total 7.5 % 9.4 % 5.5 % 7.8 % 7.6 % 9.4 % 10.9 % 10.1 %  

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