Strong Quarter For Acxiom Audience Operating
System®
Tightens Full Year Guidance
Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and
software-as-a-service Company, today announced financial results
for its second quarter ended September 30, 2014.
Second Quarter Financial Highlights
Total revenue was down 3 percent compared to the second
quarter of fiscal 2014 as a result of expected IT Infrastructure
Management declines.
- Marketing and Data Services revenue was
$204 million, up 2 percent compared to the second quarter of fiscal
2014.
- IT Infrastructure Management revenue
was down approximately 17 percent compared to the same period a
year ago.
- AOS® revenue, which includes LiveRamp,
was approximately $15 million in the quarter.
- Gross media spend through the Audience
Operating System was approximately $37 million, up 32 percent
compared to the first quarter of fiscal 2015.
GAAP operating income and diluted earnings per share were
down due to expenses associated with business separation and
transformation activities, non-cash compensation and acquired
intangible asset amortization, as well as declines in IT
Infrastructure Management.
- Net loss per diluted share from
continuing operations was $0.02 compared to earnings per share of
$0.12 a year ago. Unusual items, non-cash compensation and
intangible asset amortization impacted GAAP earnings per share by
$0.20 in the quarter. Unusual items included expenses associated
with the Company’s restructuring activities, separation and
transformation initiatives and LiveRamp acquisition costs.
- Operating cash flow from continuing
operations was $132 million for the trailing twelve months, down 22
percent compared to the same period a year ago. Free cash flow to
equity was $33 million for the trailing twelve-month period
compared to $69 million for the comparable period. The decline was
primarily due to cash restructuring and business transformation
expenses.
Non-GAAP operating income and diluted earnings per share were
down as a result of the declines in the IT Infrastructure
Management business.
- Non-GAAP diluted earnings per share
were $0.18 compared to $0.23 a year ago.
- Non-GAAP operating income was $25
million, down from $32 million for the same period last year.
- Non-GAAP Marketing and Data Services
operating margin improved to 10% from 9% a year ago.
Our non-GAAP results exclude unusual items, non-cash
compensation and acquired intangible asset amortization. A
reconciliation between GAAP and non-GAAP results is attached to
this release.
The Company tightens its full year revenue and earnings per
share guidance.
“While we remain hard at work rebuilding our U.S. Marketing and
Data Services pipeline, we are excited that AOS adoption continues
to accelerate,” said Acxiom CEO Scott Howe. “The second quarter was
our best quarter to date. We signed 15 new AOS agreements during
the quarter and gross media spend through the platform was up over
30 percent sequentially. With the addition of LiveRamp, our partner
network expanded substantially. Advertisers can now connect their
data to over 120 marketing applications.”
Second Quarter Business Highlights
- Acxiom signed several Marketing and
Data Services agreements during the quarter including new
database contracts with Duke Energy, Dennis Publishing and TD Bank
Group, as well as renewals with a top three credit card issuer and
a leading insurance agency.
- The Company signed 15 new AOS
agreements during the quarter with several industry-leading
companies including AT&T Inc., Toyota Motor Company, a global
retailer and two major credit card issuers.
- Acxiom inked three new agency
partnerships during the second quarter. The Company signed a
European-wide partnership with Starcom Mediavest Group, the number
one ranked global media network. Acxiom also struck partnerships
with Hakuhodo Inc., Japan’s second largest advertising agency, and
DMG Solutions, a leading multicultural marketing solutions
provider.
- The Company signed a strategic
partnership with Weibo Corporation, China’s leading social
media platform. As part of the relationship, Weibo will leverage
AOS to deliver greater digital marketing efficiency to its
advertisers in a privacy-compliant and secure fashion.
- Acxiom repurchased approximately
529,000 shares for $9.9 million during the quarter. Since
inception of the share repurchase program in August 2011, the
Company has repurchased 12.9 million shares, or approximately 16
percent of the outstanding common stock, for $202 million.
Financial Outlook
Our guidance includes the impact of the LiveRamp acquisition but
excludes the impact of unusual items, non-cash compensation and
acquired intangible asset amortization. Acxiom’s estimates for
fiscal 2015 are as follows:
- We now expect revenue from continuing
operations for the fiscal year to be down roughly four percent
compared to fiscal year 2014. The decline in revenue is primarily
due to the impact of lost IT Infrastructure Management customers
and the exit of our analog paper survey business in Europe.
- We now expect earnings per diluted
share to be in the range of $0.73 to $0.78.
Conference Call
Acxiom will hold a conference call at 3:30 p.m. CT 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.
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 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. 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 the expected
revenue from the LiveRamp transaction may not be realized within
the expected timeframe; 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 or cancel 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, 2014, which
was filed with the Securities and Exchange Commission on May 28,
2014.
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 September 30, $ % 2014 2013 Variance Variance
Revenue: Marketing and data services 204,248 200,952 3,296 1.6 % IT
Infrastructure management services 55,789 66,825
(11,036 ) (16.5 %) Total revenue 260,037 267,777 (7,740 ) (2.9 %)
Operating costs and expenses: Cost of revenue 205,318
199,107 6,211 3.1 % Selling, general and administrative 50,483
42,859 7,624 17.8 % Gains, losses and other items, net 929
6,584 (5,655 ) (85.9 %) Total operating costs and
expenses 256,730 248,550 8,180 3.3 % Income
from operations 3,307 19,227 (15,920 ) (82.8 %)
% Margin
1.3 % 7.2 % Other income (expense):
Interest expense (2,395 ) (2,980 ) 585 19.6 % Other, net (115 )
(350 ) 235 (67.1 %) Total other income (expense) (2,510 )
(3,330 ) 820 24.6 % Earnings from continuing operations
before income taxes 797 15,897 (15,100 ) (95.0 %) Income
taxes 2,293 6,459 (4,166 ) (64.5 %) Net
earnings (loss) from continuing operations (1,496 ) 9,438 (10,934 )
(115.9 %) Earnings from discontinued operations, net of tax
(48 ) 426 (474 ) (111.3 %) Net earnings (loss) (1,544
) 9,864 (11,408 ) (115.7 %) Less: Net earnings attributable
to noncontrolling interest - 25 (25 ) 100.0 %
Net earnings (loss) attributable to Acxiom (1,544 ) 9,839
(11,383 ) (115.7 %) Basic earnings (loss) per share: Net
earnings (loss) from continuing operations (0.02 ) 0.13 (0.15 )
(115.4 %) Earnings (loss) from discontinued operations -
0.01 (0.01 ) 0.0 % Net earnings (loss) (0.02 ) 0.13
(0.15 ) (115.4 %) Net earnings (loss) attributable to Acxiom
stockholders (0.02 ) 0.13 (0.15 ) (115.4 %)
Diluted earnings (loss) per share: Net earnings (loss) from
continuing operations (0.02 ) 0.12 (0.14 ) (116.7 %) Earnings
(loss) from discontinued operations - 0.01 (0.01 )
0.0 % Net earnings (loss) (0.02 ) 0.13 (0.15 ) (115.4 %)
Net earnings (loss) attributable to Acxiom stockholders
(0.02 ) 0.13 (0.15 ) (115.4 %)
ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) (Dollars in thousands, except earnings per
share) For the Six Months Ended September 30, $ %
2014 2013 Variance Variance Revenue: Marketing and data
services 390,931 388,745 2,186 0.6 % IT Infrastructure management
services 111,321 136,210 (24,889 ) (18.3 %) Total
revenue 502,252 524,955 (22,703 ) (4.3 %) Operating costs
and expenses: Cost of revenue 397,621 395,212 2,409 0.6 % Selling,
general and administrative 97,421 80,474 16,947 21.1 % Gains,
losses and other items, net 8,381 6,584 1,797 27.3 %
Total operating costs and expenses 503,423 482,270
21,153 4.4 % Income (loss) from operations (1,171 )
42,685 (43,856 ) (102.7 %) %
Margin -0.2
% 8.1 % Other income (expense): Interest
expense (4,966 ) (5,999 ) 1,033 17.2 % Other, net (528 ) (246 )
(282 ) (114.6 %) Total other income (expense) (5,494 )
(6,245 ) 751 12.0 % Earnings (loss) from continuing
operations before income taxes (6,665 ) 36,440 (43,105 ) (118.3 %)
Income taxes 903 14,499 (13,596 ) (93.8 %)
Net earnings (loss) from continuing operations (7,568 )
21,941 (29,509 ) (134.5 %) Earnings (loss) from discontinued
operations, net of tax (1,580 ) 1,018 (2,598 ) (255.2 %)
Net earnings (loss) (9,148 ) 22,959 (32,107 ) (139.8 %)
Less: Net loss attributable to noncontrolling interest -
(60 ) 60 100.0 % Net earnings (loss) attributable to
Acxiom (9,148 ) 23,019 (32,167 ) (139.7 %) Basic
earnings (loss) per share: Net earnings (loss) from continuing
operations (0.10 ) 0.30 (0.40 ) (133.3 %) Earnings (loss) from
discontinued operations (0.02 ) 0.01 (0.03 ) (300.0 %) Net
earnings (loss) (0.12 ) 0.31 (0.43 ) (138.7 %) Net
earnings (loss) attributable to Acxiom stockholders (0.12 ) 0.31
(0.43 ) (138.7 %) Diluted earnings (loss) per
share: Net earnings (loss) from continuing operations (0.10 ) 0.29
(0.39 ) (134.5 %) Earnings (loss) from discontinued operations
(0.02 ) 0.01 (0.03 ) (300.0 %) Net earnings (loss) (0.12 )
0.30 (0.42 ) (140.0 %) Net earnings (loss)
attributable to Acxiom stockholders (0.12 ) 0.30 (0.42 )
(140.0 %) 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, 2014 2013 2014 2013 Earnings (loss) from
continuing operations before income taxes 797 15,897 (6,665 )
36,440 Income taxes 2,293 6,459 903 14,499
Net earnings (loss) from continuing operations (1,496
) 9,438 (7,568 ) 21,941 Earnings (loss) from discontinued
operations, net of tax (48 ) 426 (1,580 ) 1,018 Net
earnings (loss) (1,544 ) 9,864 (9,148 ) 22,959 Less: Net
earnings (loss) attributable to noncontrolling interest - 25
- (60 ) Net earnings (loss) attributable to Acxiom
(1,544 ) 9,839 (9,148 ) 23,019 Earnings (loss) per
share attributable to Acxiom stockholders: Basic (0.02 )
0.13 (0.12 ) 0.31 Diluted (0.02 ) 0.13 (0.12 ) 0.30
Unusual items: Legal settlement accruals -
3,200 - 3,200 Purchased intangible asset amortization 3,802 96
3,884 210 Live Ramp acquisition costs 40 - 820 - Non-cash stock
compensation 7,867 3,708 11,956 6,889 Restructuring charges and
other adjustments 889 3,384 7,561 3,384 Separation and
transformation costs 9,291 2,186 21,328 2,186
Total unusual items, continuing operations 21,889
12,574 45,549 15,869
Earnings from continuing operations before
income taxes and excluding unusual items
22,686 28,471 38,884 52,309 Income taxes 8,734 11,246
14,970 20,348 Non-GAAP earnings from
continuing operations 13,952 17,225 23,914 31,961 Earnings
from discontinued operations, net of tax - - - -
Non-GAAP net earnings 13,952 17,225 23,914 31,961
Less: Net loss attributable to noncontrolling interest -
25 - 60 Non-GAAP Net earnings
attributable to Acxiom 13,952 17,200 23,914 31,901
Non-GAAP earnings per share attributable to Acxiom
stockholders: Basic 0.18 0.23 0.31 0.43
Diluted 0.18 0.23 0.31 0.42
Basic weighted average shares 77,123 73,778 76,978
73,728 Diluted weighted average shares 78,307
76,036 78,324 75,764
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, 2014
2013 2014 2013 Income (loss) from operations 3,307 19,227
(1,171 ) 42,685 Unusual items 21,889 12,574 45,549
15,869 Income (loss) from operations before unusual items
25,196 31,801 44,378 58,554 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, 2014 2013
Basic earnings (loss) per share from continuing operations:
Numerator - net earnings (loss) (1,496 ) 9,438 Denominator -
weighted-average shares outstanding 77,123 73,778 Basic
earnings (loss) per share (0.02 ) 0.13 Basic earnings (loss)
per share - net earnings (loss) attributable to Acxiom
stockholders: Numerator - net earnings (loss) attributable to
Acxiom (1,544 ) 9,839 Denominator - weighted-average shares
outstanding 77,123 73,778 Basic earnings (loss) per share -
net earnings (loss) attributable to Acxiom stockholders (0.02 )
0.13 Diluted earnings (loss) per share from continuing
operations: Numerator - net earnings (loss) (1,496 ) 9,438
Denominator - weighted-average shares outstanding 77,123 73,778
Dilutive effect of common stock options, warrants and restricted
stock - 2,258 77,123 76,036 Diluted earnings
(loss) per share from continuing operations (0.02 ) 0.12
Diluted earnings (loss) per share - net earnings (loss)
attributable to Acxiom stockholders: Numerator - net earnings
(loss) attributable to Acxiom (1,544 ) 9,839 Denominator -
weighted-average shares outstanding 77,123 73,778 Dilutive effect
of common stock options, warrants, and restricted stock -
2,258 77,123 76,036 Diluted earnings (loss) per share
- net earnings (loss) attributable to Acxiom stockholders (0.02 )
0.13 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, 2014 2013 Basic earnings (loss) per share
from continuing operations: Numerator - net earnings (loss) (7,568
) 21,941 Denominator - weighted-average shares outstanding 76,978
73,728 Basic earnings (loss) per share (0.10 ) 0.30
Basic earnings (loss) per share - net earnings (loss) attributable
to Acxiom stockholders: Numerator - net earnings (loss)
attributable to Acxiom (9,148 ) 23,019 Denominator -
weighted-average shares outstanding 76,978 73,728 Basic
earnings (loss) per share - net earnings (loss) attributable to
Acxiom stockholders (0.12 ) 0.31 Diluted earnings (loss) per
share from continuing operations: Numerator - net earnings (loss)
(7,568 ) 21,941 Denominator - weighted-average shares
outstanding 76,978 73,728 Dilutive effect of common stock options,
warrants and restricted stock - 2,036 76,978 75,764
Diluted earnings (loss) per share from continuing operations
(0.10 ) 0.29 Diluted earnings (loss) per share - net
earnings (loss) attributable to Acxiom stockholders: Numerator -
net earnings (loss) attributable to Acxiom (9,148 ) 23,019
Denominator - weighted-average shares outstanding 76,978 73,728
Dilutive effect of common stock options, warrants, and restricted
stock - 2,036 76,978 75,764 Diluted earnings
(loss) per share - net earnings (loss) attributable to Acxiom
stockholders (0.12 ) 0.30 ACXIOM CORPORATION AND
SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)
For the Three Months Ended September 30,
September 30,
Revenue:
2014 2013 Marketing and data services 204,248 200,952 IT
Infrastructure management services 55,789 66,825
Total revenue 260,037 267,777
Income from continuing
operations:
Marketing and data services 9,397 16,030 IT Infrastructure
management services 4,130 11,967 Corporate (10,220 ) (8,770 )
Total income (loss) from continuing operations 3,307
19,227
Margin:
Marketing and data services 4.6 % 8.0 % IT Infrastructure
management services 7.4 % 17.9 % Total margin 1.3 % 7.2 %
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY
SEGMENT (Unaudited) (Dollars in thousands) For the
Six Months Ended September 30, September 30,
Revenue:
2014 2013 Marketing and data services 390,931 388,745 IT
Infrastructure management services 111,321 136,210
Total revenue 502,252 524,955
Income from continuing operations: Marketing and data
services 19,669 28,727 IT Infrastructure management services 8,869
22,728 Corporate (29,709 ) (8,770 ) Total income (loss) from
continuing operations (1,171 ) 42,685
Margin:
Marketing and data services 5.0 % 7.4 % IT Infrastructure
management services 8.0 % 16.7 % Total margin -0.2 % 8.1 %
ACXIOM CORPORATION AND
SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP SEGMENT RESULTS
(Unaudited) (Dollars in thousands, except earnings per share)
For the Three Months Ended For the Six Months Ended
September 30, September 30, 2014 2013 2014
2013
Marketing and data services income from operations 9,397
16,030 19,669 28,727 Unusual items: Purchased
intangible asset amortization 3,802 96 3,884 210 Non-cash stock
compensation 7,285 2,825 10,369 5,250
Marketing and data services income from operations before
unusual items 20,484 18,951 33,922 34,187
Margin 10.0 % 9.4 % 8.7 % 8.8 % IT
infrastructure management services income from operations 4,130
11,967 8,869 22,728 Unusual items: Purchased
intangible asset amortization - - - - Non-cash stock compensation
582 883 1,587 1,639 IT
infrastructure management services income from operations before
unusual items 4,712 12,850 10,456 24,367
Margin 8.4 % 19.2 % 9.4 % 17.9 %
ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)
September 30, March 31, $ % 2014 2014 Variance Variance
Assets
Current assets: Cash and cash equivalents 109,810 418,586 (308,776
) (73.8 %) Trade accounts receivable, net 156,500 160,718 (4,218 )
(2.6 %) Deferred income taxes 18,090 12,870 5,220 40.6 % Refundable
income taxes 5,128 11,535 (6,407 ) (55.5 %) Restricted cash held in
escrow 31,000 - 31,000 100.0 % Other current assets 57,373 54,484
2,889 5.3 % Assets of discontinued operations 952 7,332
(6,380 ) (87.0 %) Total current assets 378,853
665,525 (286,672 ) (43.1 %) Property and equipment
859,574 852,236 7,338 0.9 % Less - accumulated depreciation and
amortization 637,764 635,330 2,434 0.4 %
Property and equipment, net 221,810 216,906 4,904 2.3
% Software, net of accumulated amortization 79,768 39,425
40,343 102.3 % Goodwill 573,468 358,384 215,084 60.0 % Purchased
software licenses, net of accumulated amortization 16,114 18,584
(2,470 ) (13.3 %) Other assets, net 45,215 24,477
20,738 84.7 % 1,315,228 1,323,301 (8,073 )
(0.6 %)
Liabilities and
Stockholders' Equity
Current liabilities: Current installments of long-term debt 34,118
28,567 5,551 19.4 % Trade accounts payable 50,112 36,179 13,933
38.5 % Accrued payroll and related expenses 31,956 62,182 (30,226 )
(48.6 %) Other accrued expenses 67,229 70,412 (3,183 ) (4.5 %)
Acquisition escrow payable 31,000 - 31,000 (100.0 %) Deferred
revenue 35,678 47,638 (11,960 ) (25.1 %) Income taxes - 241 (241 )
(100.0 %) Liabilities of discontinued operations 1,671 4,250
(2,579 ) (60.7 %) Total current liabilities 251,764
249,469 2,295 0.9 % Long-term debt 270,869
289,043 (18,174 ) (6.3 %) Deferred income taxes 101,424
90,226 11,198 12.4 % Other liabilities 12,689 11,706 983 8.4
% Stockholders' equity: Common stock 12,707 12,584 123 1.0 %
Additional paid-in capital 1,005,443 981,985 23,458 2.4 % Retained
earnings 593,681 602,829 (9,148 ) (1.5 %) Accumulated other
comprehensive income 11,856 13,662 (1,806 ) (13.2 %) Treasury
stock, at cost (945,205 ) (928,203 ) (17,002 ) (1.8 %) Total
stockholders' equity 678,482 682,857 (4,375 ) (0.6 %)
1,315,228 1,323,301 (8,073 ) (0.6 %)
ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)
For the Three Months Ended September 30, 2014 2013
Cash flows from operating activities: Net earnings (loss) (1,544 )
9,864 Earnings from discontinued operations, net of tax 48 (426 )
Non-cash operating activities: Depreciation and amortization 28,162
25,193 Deferred income taxes (4,179 ) 60 Non-cash stock
compensation expense 7,867 3,708 Changes in operating assets and
liabilities: Accounts receivable (3,874 ) (7,058 ) Other assets 744
(736 ) Accounts payable and other liabilities 4,480 8,952 Deferred
revenue (5,912 ) 2,698 Net cash provided by operating
activities 25,792 42,255 Cash flows from investing
activities: Capitalized software (5,608 ) (7,660 ) Capital
expenditures (19,396 ) (9,130 ) Data acquisition costs (468 ) (913
) Net cash paid in acquisitions (265,672 ) - Net cash
provided (used) by investing activities (291,144 ) (17,703 ) Cash
flows from financing activities: Payments of debt (5,356 ) (4,343 )
Sale of common stock, net of stock acquired for withholding taxes
(1,813 ) 12,804 Acquisition of treasury stock (9,868 ) (22,698 )
Net cash used by financing activities (17,037 ) (14,237 ) Cash
flows from discontinued operations: From operating activities 82
(1,734 ) From investing activities - (139 ) Net cash
provided by discontinued operations 82 (1,873 ) Effect of
exchange rate changes on cash (801 ) 544 Net change
in cash and cash equivalents (283,108 ) 8,986 Cash and cash
equivalents at beginning of period 392,918 207,630
Cash and cash equivalents at end of period 109,810 216,616
Supplemental cash flow information: Cash paid
during the period for: Interest 2,516 2,975 Income taxes 59 9,924
Payments on capital leases and installment payment arrangements
1,084 2,339 Other debt payments, excluding line of credit 4,272
2,004 ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in
thousands) For the Six Months Ended September 30, 2014
2013 Cash flows from operating activities: Net
earnings (loss) (9,148 ) 22,959 Loss (earnings) from discontinued
operations, net of tax 1,580 (1,018 ) Non-cash operating
activities: Depreciation and amortization 55,686 50,241 Deferred
income taxes (6,022 ) (528 ) Non-cash stock compensation expense
11,956 6,889 Changes in operating assets and liabilities: Accounts
receivable 8,608 (4,842 ) Other assets 3,480 7 Deferred costs
(1,383 ) - Accounts payable and other liabilities (24,542 ) (18,874
) Deferred revenue (12,556 ) 3,929 Net cash provided by
operating activities 27,659 58,763 Cash flows from
investing activities: Capitalized software (10,577 ) (13,614 )
Capital expenditures (38,397 ) (18,042 ) Data acquisition costs
(1,103 ) (2,874 ) Net cash paid in acquisitions (265,672 ) -
Net cash provided (used) by investing activities (315,749 ) (34,530
) Cash flows from financing activities: Payments of debt (10,858 )
(9,233 ) Sale of common stock, net of stock acquired for
withholding taxes (2,487 ) 18,559 Acquisition of treasury stock
(9,868 ) (38,837 ) Net cash used by financing activities (23,213 )
(29,511 ) Cash flows from discontinued operations: From operating
activities 69 (1,393 ) From investing activities 2,927 (147
) Net cash provided by discontinued operations 2,996 (1,540
) Effect of exchange rate changes on cash (469 ) 460
Net change in cash and cash equivalents (308,776 ) (6,358 ) Cash
and cash equivalents at beginning of period 418,586 430,604
Cash and cash equivalents at end of period 109,810
424,246
Supplemental cash flow
information:
Cash paid during the period for: Interest 5,391 5,986 Income taxes
356 11,008 Payments on capital leases and installment payment
arrangements 2,319 5,239 Other debt payments, excluding line of
credit 8,539 3,994
ACXIOM CORPORATION AND
SUBSIDIARIES CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY AND
RECONCILIATION TO OPERATING CASH FLOW (Unaudited) (Dollars in
thousands)
06/30/13 09/30/13 12/31/13 03/31/14
YTD FY2014 06/30/14 09/30/14 YTD FY2015 TTM
9/30/13 TTM 9/30/14 Net cash provided by operating
activities - continuing operations 16,508 42,255 63,791 40,687
163,241 1,867 25,792 27,659 168,694 132,137 Net cash provided by
operating activities - discontinued operations 341 (1,734 ) (19 )
3,147 1,735 (13 ) 82 69 1,440 3,197 Less: Payments for
investments - - 3,633 190 3,823 - - - - 3,823 Capitalized software
(5,954 ) (7,660 ) (5,495 ) (5,408 ) (24,517 ) (4,969 ) (5,608 )
(10,577 ) (25,746 ) (21,480 ) Capital expenditures (8,912 ) (9,130
) (6,681 ) (14,409 ) (39,132 ) (19,001 ) (19,396 ) (38,397 )
(44,553 ) (59,487 ) Data acquisition costs (1,961 ) (913 ) (1,786 )
(3,085 ) (7,745 ) (635 ) (468 ) (1,103 ) (7,746 ) (5,974 )
Discontinued operations investing activities (8 ) (139 ) (19 ) -
(166 ) 2,927 - 2,927 (411 ) 2,908 Payments on capital leases and
installment payment arrangements (2,900 ) (2,339 ) (1,675 ) (1,465
) (8,379 ) (1,235 ) (1,084 ) (2,319 ) (14,317 ) (5,459 ) Other
required debt payments (1,990 ) (2,004 ) (4,259 )
(4,263 ) (12,516 ) (4,267 ) (4,272 )
(8,539 ) (8,249 ) (17,061 ) Total (4,876 )
18,336 47,490 15,394
76,344 (25,326 ) (4,954 ) (30,280 ) 69,112
32,604
ACXIOM CORPORATION
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in thousands, except earnings per share)
Q2 FY15 to Q2 FY14 06/30/13
09/30/13 12/31/13 03/31/14 YTD FY2014 06/30/14
09/30/14 YTD FY2015 % $ Revenue: Marketing and
data services 187,793 200,952 206,662 209,746 805,153 186,683
204,248 390,931 1.6 % 3,296 IT Infrastructure management services
69,385 66,825 62,099
58,816 257,125 55,532 55,789
111,321 -16.5 % (11,036 ) Total revenue
257,178 267,777 268,761 268,562 1,062,278 242,215 260,037 502,252
-2.9 % (7,740 ) Operating costs and expenses: Cost of
revenue 196,105 199,107 201,430 198,920 795,562 192,303 205,318
397,621 3.1 % 6,211 Selling, general and administrative 37,615
42,859 43,383 45,519 169,376 46,938 50,483 97,421 17.8 % 7,624
Impairment of goodwill and other - - - 24,953 24,953 - - 0 0.0 % -
Gains, losses and other items, net - 6,584
4,657 10,673 21,914 7,452
929 8,381 -85.9 % (5,655
) Total operating costs and expenses 233,720 248,550 249,470
280,065 1,011,805 246,693 256,730 503,423 3.3 % 8,180 Income
(loss) from operations 23,458 19,227 19,291 (11,503 ) 50,473 (4,478
) 3,307 (1,171 ) -82.8 % (15,920 )
% Margin 9.1
% 7.2 % 7.2 % -4.3
% 4.8 % -1.8 % 1.3
% -0.2 % Other expense Interest expense (3,019
) (2,980 ) (3,114 ) (2,558 ) (11,671 ) (2,571 ) (2,395 ) (4,966 )
19.6 % 585 Other, net 104 (350 ) 1,484
579 1,817 (413 ) (115 )
(528 ) 67.1 % 235 Total other expense (2,915 ) (3,330
) (1,630 ) (1,979 ) (9,854 ) (2,984 ) (2,510 ) (5,494 ) -24.6 % 820
Earnings (loss) from continuing operations before income
taxes 20,543 15,897 17,661 (13,482 ) 40,619 (7,462 ) 797 (6,665 )
-95.0 % (15,100 ) Income taxes 8,040 6,459
3,083 12,045 29,627
(1,390
) 2,293 903 -64.5 % (4,166 )
Net earnings (loss) from continuing operations 12,503 9,438
14,578 (25,527 ) 10,992 (6,072 ) (1,496 ) (7,568 ) -115.9 % (10,934
) Earnings (loss) from discontinued operations, net of tax
592 426 489 (3,696 )
(2,189 ) (1,532 ) (48 ) (1,580 ) -111.3 %
(474 ) Net earnings (loss) 13,095 9,864 15,067
(29,223 ) 8,803 (7,604 ) (1,544 ) (9,148 ) -115.7 % (11,408 )
Less: Net gain (loss) attributable to noncontrolling
interest (85 ) 25 - -
(60 ) - - - -100.0 %
(25 ) Net earnings (loss) attributable to Acxiom
13,180 9,839 15,067
(29,223 ) 8,863 (7,604 ) (1,544 )
(9,148 ) -115.7 % (11,383 ) Diluted earnings (loss)
per share - net earnings (loss) attributable to Acxiom stockholders
0.17 0.13 0.19 (0.38 )
0.12 (0.10 ) (0.02 ) (0.12 ) -115.4 %
(0.15 ) ACXIOM CORPORATION AND SUBSIDIARIES RESULTS
BY SEGMENT (Unaudited) (Dollars in thousands)
Q2 FY15 to Q2 FY14
06/30/13 09/30/13 12/31/13 03/31/14 YTD
FY2014 06/30/14 09/30/14 YTD FY2015 % $
Revenue: Marketing and
data services 187,793 200,952 206,662 209,746 805,153 186,683
204,248 390,931 2 % 3,296 IT Infrastructure management services
69,385 66,825 62,099
58,816 257,125 55,532 55,789
111,321 -17 % (11,036 ) Total
revenue 257,178 267,777 268,761
268,562 1,062,278 242,215
260,037 502,252 -3 % (7,740 )
Income from continuing operations: Marketing and data
services 12,697 16,030 22,529 27,244 78,500 10,272 9,397 19,669 -41
% (6,633 ) IT Infrastructure management services 10,761 11,967
6,316 3,803 32,847 4,739 4,130 8,869 -65 % (7,837 ) Corporate -
(8,770 ) (9,554 ) (42,550 )
(60,874 ) (19,489 ) (10,220 ) (29,709 ) 17 %
(1,450 ) Total income (loss) from continuing operations
23,458 19,227 19,291
(11,503 ) 50,473 (4,478 ) 3,307
(1,171 ) -83 % (15,920 ) Margin: Marketing and
data services 6.8 % 8.0 % 10.9 % 13.0 % 9.7 % 5.5 % 4.6 % 5.0 % IT
Infrastructure management services 15.5 % 17.9 % 10.2 % 6.5 % 12.8
% 8.5 % 7.4 % 8.0 % Total 9.1 % 7.2 % 7.2 % -4.3 % 4.8 %
-1.8 % 1.3 % -0.2 %
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20141103005378/en/
Acxiom CorporationInvestor Relations:Lauren Dillard,
650-372-2242investor.relations@acxiom.comEACXM
Acxiom (NASDAQ:ACXM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Acxiom (NASDAQ:ACXM)
Historical Stock Chart
From Jul 2023 to Jul 2024
