ACXM Acxiom Holdngs (delisted)

Expects AOS and LiveRamp to Generate Approximately $60M in Revenue for FY15

Reiterates Overall Full Year Guidance

Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and software-as-a-service Company, today announced financial results for its third quarter ended December 31, 2014.

Third Quarter Financial Highlights

Total revenue was down 3% compared to the third quarter of fiscal 2014 as a result of expected IT Infrastructure Management declines.

• Marketing and Data Services revenue was $208 million, up 1% compared to the third quarter of fiscal 2014.
• Combined AOS and LiveRamp revenue was $21 million, up approximately 40% compared to the second quarter of fiscal 2015.
• Gross media spend enabled by the AOS platform was $73 million, up 265% compared to the prior year period and up 97% compared to the second quarter of fiscal 2015.
• IT Infrastructure Management revenue was down approximately 16% compared to the same period a year ago.

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 earnings per diluted share from continuing operations were $0.06 compared to earnings per share of $0.19 a year ago. Earnings per share in the prior year period were positively impacted by a tax adjustment resulting in a $0.04 improvement. Unusual items, non-cash compensation and intangible asset amortization impacted GAAP earnings per share by $0.17 in the quarter. Unusual items included expenses associated with the Company’s restructuring activities and separation and transformation initiatives.
• Operating cash flow from continuing operations was $111 million for the trailing twelve months, down 43% compared to the same period a year ago. Free cash flow to equity was $1 million for the trailing twelve-month period compared to $103 million for the comparable period. The decline was primarily due to changes in working capital, and to a lesser extent, cash restructuring and business transformation expenditures.

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 $0.23 compared to $0.27 a year ago. Earnings per share in the prior year period were positively impacted by a tax adjustment resulting in a $0.04 improvement.
• Non-GAAP operating income was $30 million, down from $32 million for the same period last year.
• Non-GAAP Marketing and Data Services operating margin was roughly 12%, flat compared to the third quarter of fiscal 2014.

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.

“While we continue to strengthen our Marketing and Data Services business, we are experiencing great momentum with AOS and LiveRamp,” said Acxiom CEO Scott Howe. “We added 25 new AOS and LiveRamp customers during the quarter, more than doubled our subscription revenue year-over-year and expect to exit FY15 with a revenue run-rate of roughly $80 million. Data-driven marketing is still in the early innings, and we are pleased to be at the forefront of powering this trend.”

Third Quarter Business Highlights

• Acxiom signed several Marketing and Data Services agreements during the quarter including new database contracts with Payless ShoeSource and Guardian Media Group, as well as renewals with a major telecommunications company and a leading insurance firm.
• The Company signed 25 new AOS and LiveRamp agreements during the quarter. The AOS and LiveRamp client roster now totals 195 and includes 22 Fortune 100 companies.
• LiveRamp expanded its strategic partnership with Datalogix, which now runs through the end of 2017. Datalogix will continue to leverage LiveRamp as an important partner for data onboarding services used to connect its syndicated and custom segments and its clients’ first-party data assets to digital media.
• Acxiom data is now being distributed to more than 20 partners, including most of the major demand side platforms and leading enterprise software companies. In the quarter, Acxiom joined the Salesforce Analytics Cloud Ecosystem to provide consumer recognition, data assets and value-added analytic insights to Salesforce users.
• Acxiom extended the duration of its existing share repurchase program for an additional year, through November 12, 2015. The Company did not repurchase any shares in the quarter. Since inception of the share repurchase program in August 2011, Acxiom has repurchased 12.9 million shares, or approximately 16% 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 continue to expect revenue from continuing operations for the fiscal year to be down roughly 4% 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 continue to 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 December 31, $ % 2014 2013 Variance   Variance   Revenue: Marketing and data services 208,246 206,662 1,584 0.8 % IT Infrastructure management services 52,194   62,099   (9,905 ) (16.0 %) Total revenue 260,440 268,761 (8,321 ) (3.1 %)   Operating costs and expenses: Cost of revenue 203,728 201,430 2,298 1.1 % Selling, general and administrative 47,345 43,383 3,962 9.1 % Gains, losses and other items, net 4,175   4,657   (482 ) (10.4 %)   Total operating costs and expenses 255,248   249,470   5,778 2.3 %   Income from operations 5,192   19,291   (14,099 ) (73.1 %) % Margin 2.0 % 7.2 % Other income (expense): Interest expense (2,610 ) (3,114 ) 504 16.2 % Other, net (34 ) 1,484   (1,518 ) (102.3 %)   Total other income (expense) (2,644 ) (1,630 ) (1,014 ) (62.2 %)   Earnings from continuing operations before income taxes 2,548 17,661 (15,113 ) (85.6 %)   Income taxes (1,926 ) 3,083   (5,009 ) (162.5 %)   Net earnings from continuing operations 4,474 14,578 (10,104 ) (69.3 %)   Earnings (loss) from discontinued operations, net of tax (318 ) 489   (807 ) (165.0 %)   Net earnings 4,156 15,067 (10,911 ) (72.4 %)   Less: Net earnings attributable to noncontrolling interest -   -   - -   Net earnings attributable to Acxiom 4,156   15,067   (10,911 ) (72.4 %)   Basic earnings per share: Net earnings from continuing operations 0.06 0.19 (0.13 ) (69.4 %) Earnings from discontinued operations -   0.01   (0.01 ) 0.0 % Net earnings 0.05   0.20   (0.15 ) (75.0 %)   Net earnings attributable to Acxiom stockholders 0.05   0.20   (0.15 ) (73.0 %)     Diluted earnings per share: Net earnings from continuing operations 0.06 0.19 (0.13 ) (69.9 %) Earnings from discontinued operations -   0.01   (0.01 ) 0.0 % Net earnings 0.05   0.19   (0.14 ) (73.7 %)   Net earnings attributable to Acxiom stockholders 0.05   0.19   (0.14 ) (72.1 %)             ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings per share)     For the Nine Months Ended December 31, $ % 2014 2013 Variance   Variance   Revenue: Marketing and data services 599,177 595,407 3,770 0.6 % IT Infrastructure management services 163,515   198,309   (34,794 ) (17.5 %) Total revenue 762,692 793,716 (31,024 ) (3.9 %)   Operating costs and expenses: Cost of revenue 601,349 596,642 4,707 0.8 % Selling, general and administrative 144,766 123,857 20,909 16.9 % Gains, losses and other items, net 12,556   11,241   1,315 11.7 %   Total operating costs and expenses 758,671   731,740   26,931 3.7 %   Income (loss) from operations 4,021   61,976   (57,955 ) (93.5 %) % Margin 0.5 % 7.8 % Other income (expense): Interest expense (7,576 ) (9,113 ) 1,537 16.9 % Other, net (562 ) 1,238   (1,800 ) (145.4 %)   Total other income (expense) (8,138 ) (7,875 ) (263 ) (3.3 %)   Earnings (loss) from continuing operations before income taxes (4,117 ) 54,101 (58,218 ) (107.6 %)   Income taxes (1,023 ) 17,582   (18,605 ) (105.8 %)   Net earnings (loss) from continuing operations (3,094 ) 36,519 (39,613 ) (108.5 %)   Earnings (loss) from discontinued operations, net of tax (1,898 ) 1,507   (3,405 ) (225.9 %)   Net earnings (loss) (4,992 ) 38,026 (43,018 ) (113.1 %)   Less: Net loss attributable to noncontrolling interest -   (60 ) 60 100.0 %   Net earnings (loss) attributable to Acxiom (4,992 ) 38,086   (43,078 ) (113.1 %)   Basic earnings (loss) per share: Net earnings (loss) from continuing operations (0.04 ) 0.49 (0.53 ) (108.2 %) Earnings (loss) from discontinued operations (0.02 ) 0.02   (0.04 ) (200.0 %) Net earnings (loss) (0.06 ) 0.51   (0.57 ) (111.8 %)   Net earnings (loss) attributable to Acxiom stockholders (0.06 ) 0.51   (0.57 ) (112.7 %)     Diluted earnings (loss) per share: Net earnings (loss) from continuing operations (0.04 ) 0.48 (0.52 ) (108.4 %) Earnings (loss) from discontinued operations (0.02 ) 0.02   (0.04 ) (200.0 %) Net earnings (loss) (0.06 ) 0.50   (0.56 ) (112.0 %)   Net earnings (loss) attributable to Acxiom stockholders (0.06 ) 0.50   (0.56 ) (113.0 %)             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 Nine Months Ended December 31, December 31, 2014 2013 2014 2013     Earnings (loss) from continuing operations before income taxes 2,548 17,661 (4,117 ) 54,101   Income taxes (1,926 ) 3,083   (1,023 ) 17,582     Net earnings (loss) from continuing operations 4,474 14,578 (3,094 ) 36,519   Earnings (loss) from discontinued operations, net of tax (318 ) 489   (1,898 ) 1,507     Net earnings (loss) 4,156 15,067 (4,992 ) 38,026   Less: Net earnings (loss) attributable to noncontrolling interest -   -   -   (60 )   Net earnings (loss) attributable to Acxiom 4,156   15,067   (4,992 ) 38,086     Earnings (loss) per share attributable to Acxiom stockholders:   Basic 0.05   0.20   (0.06 ) 0.51     Diluted 0.05   0.19   (0.06 ) 0.50     Unusual items: Legal settlement accruals - 1,000 - 4,200 Purchased intangible asset amortization 3,783 62 7,667 272 Live Ramp acquisition costs - - 820 - Non-cash stock compensation 8,582 3,455 20,538 10,344 Restructuring charges and other adjustments 4,175 3,657 11,737 7,041 Separation and transformation costs 8,116 4,897 29,444 7,083 Gain on investment (other income) -   (2,567 ) -   (2,567 )   Total unusual items, continuing operations 24,656   10,504   70,206   26,373  

 

Earnings from continuing operations before income taxes and excluding unusual items

27,204 28,165 66,089 80,474   Income taxes 8,977   6,979   23,947   27,541     Non-GAAP earnings from continuing operations 18,227 21,186 42,142 52,933   Earnings from discontinued operations, net of tax -   -   -   -     Non-GAAP net earnings 18,227 21,186 42,142 52,933   Less: Net loss attributable to noncontrolling interest -   -   -   (60 )   Non-GAAP Net earnings attributable to Acxiom 18,227   21,186   42,142   52,993     Non-GAAP earnings per share attributable to Acxiom stockholders:   Basic 0.24   0.28   0.55   0.71     Diluted 0.23   0.27   0.54   0.69     Basic weighted average shares 77,039   75,009   76,998   74,155     Diluted weighted average shares 78,302   77,839   78,316   76,456       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, 2014 2013 2014 2013   Income from operations 5,192 19,291 4,021 61,976   Unusual items 24,656 13,071 70,206 28,940   Income from operations before unusual items 29,848 32,362 74,227 90,916     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, 2014 2013   Basic earnings per share from continuing operations: Numerator - net earnings 4,474 14,578 Denominator - weighted-average shares outstanding 77,039 75,009 Basic earnings per share 0.06 0.19   Basic earnings per share - net earnings attributable to Acxiom stockholders: Numerator - net earnings attributable to Acxiom 4,156 15,067 Denominator - weighted-average shares outstanding 77,039 75,009 Basic earnings per share - net earnings attributable to Acxiom stockholders 0.05 0.20   Diluted earnings per share from continuing operations: Numerator - net earnings 4,474 14,578   Denominator - weighted-average shares outstanding 77,039 75,009 Dilutive effect of common stock options, warrants and restricted stock 1,263 2,830 78,302 77,839   Diluted earnings per share from continuing operations 0.06 0.19   Diluted earnings per share - net earnings attributable to Acxiom stockholders: Numerator - net earnings attributable to Acxiom 4,156 15,067   Denominator - weighted-average shares outstanding 77,039 75,009 Dilutive effect of common stock options, warrants, and restricted stock 1,263 2,830 78,302 77,839   Diluted earnings per share - net earnings attributable to Acxiom stockholders 0.05 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, 2014 2013   Basic earnings (loss) per share from continuing operations: Numerator - net earnings (loss) (3,094) 36,519 Denominator - weighted-average shares outstanding 76,998 74,155 Basic earnings (loss) per share (0.04) 0.49   Basic earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders: Numerator - net earnings (loss) attributable to Acxiom (4,992) 38,086 Denominator - weighted-average shares outstanding 76,998 74,155 Basic earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders (0.06) 0.51   Diluted earnings (loss) per share from continuing operations: Numerator - net earnings (loss) (3,094) 36,519   Denominator - weighted-average shares outstanding 76,998 74,155 Dilutive effect of common stock options, warrants and restricted stock - 2,301 76,998 76,456   Diluted earnings (loss) per share from continuing operations (0.04) 0.48   Diluted earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders: Numerator - net earnings (loss) attributable to Acxiom (4,992) 38,086   Denominator - weighted-average shares outstanding 76,998 74,155 Dilutive effect of common stock options, warrants, and restricted stock - 2,301 76,998 76,456   Diluted earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders (0.06) 0.50     ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)         For the Three Months Ended   December 31, December 31, Revenue: 2014 2013   Marketing and data services 208,246 206,662 IT Infrastructure management services 52,194   62,099     Total revenue 260,440   268,761       Income from continuing operations:   Marketing and data services 13,703 22,529 IT Infrastructure management services 3,780 6,316 Corporate (12,291 ) (9,554 )   Total income from continuing operations 5,192   19,291     Margin:   Marketing and data services 6.6 % 10.9 % IT Infrastructure management services 7.2 % 10.2 %   Total margin 2.0 % 7.2 %     ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)         For the Nine Months Ended   December 31, December 31, Revenue: 2014 2013   Marketing and data services 599,177 595,407 IT Infrastructure management services 163,515   198,309     Total revenue 762,692   793,716       Income from continuing operations:   Marketing and data services 33,372 51,256 IT Infrastructure management services 12,649 29,044 Corporate (42,000 ) (18,324 )   Total income from continuing operations 4,021   61,976     Margin:   Marketing and data services 5.6 % 8.6 % IT Infrastructure management services 7.7 % 14.6 %   Total margin 0.5 % 7.8 %     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 Nine Months Ended December 31, December 31, 2014 2013 2014 2013   Marketing and data services income from operations 13,703 22,529 33,372 51,256   Unusual items:   Purchased intangible asset amortization 3,783 62 7,667 272 Non-cash stock compensation 7,971   2,685   18,334   7,927    

Marketing and data services income from operations before unusual items

25,457   25,276   59,373   59,455     Margin 12.2 % 12.2 % 9.9 % 10.0 %  

IT infrastructure management services income from operations

3,780 6,316 12,649 29,044   Unusual items:   Non-cash stock compensation 611   770   2,204   2,417    

IT infrastructure management services income from operations before unusual items

4,391   7,086   14,853   31,461   Margin 8.4 % 11.4 % 9.1 % 15.9 %     ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)         December 31, March 31, $ % 2014 2014 Variance   Variance

Assets

Current assets: Cash and cash equivalents 126,891 418,586 (291,695 ) (69.7 %) Trade accounts receivable, net 155,867 160,718 (4,851 ) (3.0 %) Deferred income taxes 15,809 12,870 2,939 22.8 % Refundable income taxes 11,823 11,535 288 2.5 % Restricted cash held in escrow 31,000 - 31,000 100.0 % Other current assets 50,163 54,484 (4,321 ) (7.9 %) Assets of discontinued operations 478   7,332   (6,854 ) (93.5 %)   Total current assets 392,031   665,525   (273,494 ) (41.1 %)   Property and equipment 733,387 852,236 (118,849 ) (13.9 %) Less - accumulated depreciation and amortization 516,899   635,330   (118,431 ) (18.6 %)   Property and equipment, net 216,488   216,906   (418 ) (0.2 %)   Software, net of accumulated amortization 77,033 39,425 37,608 95.4 % Goodwill 572,589 358,384 214,205 59.8 % Purchased software licenses, net of accumulated amortization 14,555 18,584 (4,029 ) (21.7 %) Other assets, net 41,257   24,477   16,780 68.6 %   1,313,953   1,323,301   (9,348 ) (0.7 %)  

Liabilities and Stockholders' Equity

Current liabilities: Current installments of long-term debt 33,269 28,567 4,702 16.5 % Trade accounts payable 33,527 36,179 (2,652 ) (7.3 %) Accrued payroll and related expenses 35,718 62,182 (26,464 ) (42.6 %) Other accrued expenses 69,338 70,412 (1,074 ) (1.5 %) Acquisition escrow payable 31,000 - 31,000 100.0 % Deferred revenue 37,944 47,638 (9,694 ) (20.3 %) Income taxes - 241 (241 ) (100.0 %) Liabilities of discontinued operations 1,548   4,250   (2,702 ) (63.6 %)   Total current liabilities 242,344   249,469   (7,125 ) (2.9 %)   Long-term debt 262,761 289,043 (26,282 ) (9.1 %)   Deferred income taxes 103,498 90,226 13,272 14.7 %   Other liabilities 14,942 11,706 3,236 27.6 %   Stockholders' equity: Common stock 12,723 12,584 139 1.1 % Additional paid-in capital 1,015,697 981,985 33,712 3.4 % Retained earnings 597,837 602,829 (4,992 ) (0.8 %) Accumulated other comprehensive income 9,364 13,662 (4,298 ) (31.5 %) Treasury stock, at cost (945,213 ) (928,203 ) (17,010 ) (1.8 %) Total stockholders' equity 690,408   682,857   7,551 1.1 %   1,313,953   1,323,301   (9,348 ) (0.7 %)     ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)     For the Three Months Ended December 31, 2014   2013   Cash flows from operating activities: Net earnings 4,156 15,067 Loss (earnings) from discontinued operations, net of tax 318 (489 ) Non-cash operating activities: Depreciation and amortization 29,285 25,457 Gain on disposal or impairment of assets - (2,567 ) Loss on early extinguishment of debt - 664 Deferred income taxes 4,002 (3,138 ) Non-cash stock compensation expense 8,582 3,455 Changes in operating assets and liabilities: Accounts receivable (1,080 ) 8,806 Other assets 3 6,925 Deferred costs (105 ) (89 ) Accounts payable and other liabilities (4,873 ) 7,118 Deferred revenue 2,376   2,582   Net cash provided by operating activities 42,664   63,791   Cash flows from investing activities: Capitalized software (4,408 ) (5,495 ) Capital expenditures (13,132 ) (6,681 ) Data acquisition costs (394 ) (1,786 ) Payments from investments -   3,633   Net cash provided (used) by investing activities (17,934 ) (10,329 ) Cash flows from financing activities: Proceeds from debt - 300,000 Payments of debt (8,957 ) (220,934 ) Fees for debt refinancing - (4,370 ) Sale of common stock, net of stock acquired for withholding taxes 1,680 50,547 Acquisition of treasury stock - (13,826 ) Acquisition of noncontrolling interest -   (600 ) Net cash provided (used) by financing activities (7,277 ) 110,817   Cash flows from discontinued operations: From operating activities 140 (19 ) From investing activities -   (19 ) Net cash provided by discontinued operations 140   (38 ) Effect of exchange rate changes on cash (512 ) 51     Net change in cash and cash equivalents 17,081 164,292 Cash and cash equivalents at beginning of period 109,810   216,616   Cash and cash equivalents at end of period 126,891   380,908     Supplemental cash flow information: Cash paid during the period for: Interest 809 3,281 Income taxes 182 4,766 Payments on capital leases and installment payment arrangements 930 1,675 Other debt payments, excluding line of credit 8,027 4,259 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, 2014   2013   Cash flows from operating activities: Net earnings (loss) (4,992 ) 38,026 Loss (earnings) from discontinued operations, net of tax 1,898 (1,507 ) Non-cash operating activities: Depreciation and amortization 84,971 75,698 Gain on disposal or impairment of assets - (2,567 ) Loss on early extinguishment of debt - 664 Deferred income taxes (2,020 ) (3,666 ) Non-cash stock compensation expense 20,538 10,344 Changes in operating assets and liabilities: Accounts receivable 7,528 3,964 Other assets 3,483 6,932 Deferred costs (1,488 ) (89 ) Accounts payable and other liabilities (29,415 ) (11,756 ) Deferred revenue (10,180 ) 6,511   Net cash provided by operating activities 70,323   122,554   Cash flows from investing activities: Capitalized software (14,985 ) (19,109 ) Capital expenditures (51,529 ) (24,723 ) Data acquisition costs (1,497 ) (4,660 ) Payments from investments - 3,633 Net cash paid in acquisitions (265,672 ) -   Net cash provided (used) by investing activities (333,683 ) (44,859 ) Cash flows from financing activities: Proceeds from debt - 300,000 Payments of debt (19,815 ) (230,167 ) Fees for debt refinancing - (4,370 ) Sale of common stock, net of stock acquired for withholding taxes (807 ) 69,106 Acquisition of treasury stock (9,868 ) (52,663 ) Acquisition of noncontrolling interest -   (600 ) Net cash provided (used) by financing activities (30,490 ) 81,306   Cash flows from discontinued operations: From operating activities 209 (1,412 ) From investing activities 2,927   (166 ) Net cash provided (used) by discontinued operations 3,136   (1,578 ) Effect of exchange rate changes on cash (981 ) 511     Net change in cash and cash equivalents (291,695 ) 157,934 Cash and cash equivalents at beginning of period 418,586   222,974   Cash and cash equivalents at end of period 126,891   380,908    

Supplemental cash flow information:

Cash paid during the period for: Interest 6,200 9,267 Income taxes 538 15,774 Payments on capital leases and installment payment arrangements 3,249 6,914 Other debt payments, excluding line of credit 16,566 8,253 Prepayment of debt - 215,000     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   12/31/14   YTD FY2015 TTM 12/31/13   TTM 12/31/14   Net cash provided by operating activities - continuing operations 16,508 42,255 63,791 40,687 163,241 1,867 25,792 42,664 70,323 196,417 111,010 Net cash provided by operating activities - discontinued operations 341 (1,734 ) (19 ) 3,147 1,735 (13 ) 82 140 209 (1,054 ) 3,356   Less: Payments for investments - - 3,633 190 3,823 - - - - 3,633 190 Capitalized software (5,954 ) (7,660 ) (5,495 ) (5,408 ) (24,517 ) (4,969 ) (5,608 ) (4,408 ) (14,985 ) (25,798 ) (20,393 ) Capital expenditures (8,912 ) (9,130 ) (6,681 ) (14,409 ) (39,132 ) (19,001 ) (19,396 ) (13,132 ) (51,529 ) (40,986 ) (65,938 ) Data acquisition costs (1,961 ) (913 ) (1,786 ) (3,085 ) (7,745 ) (635 ) (468 ) (394 ) (1,497 ) (6,766 ) (4,582 ) Discontinued operations investing activities (8 ) (139 ) (19 ) - (166 ) 2,927 - - 2,927 (418 ) 2,927 Payments on capital leases and installment payment arrangements (2,900 ) (2,339 ) (1,675 ) (1,465 ) (8,379 ) (1,235 ) (1,084 ) (930 ) (3,249 ) (10,480 ) (4,714 ) Other required debt payments (1,990 )   (2,004 )   (4,259 )   (4,263 )   (12,516 ) (4,267 )   (4,272 )   (8,027 )   (16,566 )   (11,768 ) (20,829 )   Total (4,876 )   18,336     47,490     15,394     76,344   (25,326 )   (4,954 )   15,913     (14,367 )   102,780     1,027       ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings per share)                                                         Q3 FY15 to Q3 FY14 06/30/13   09/30/13   12/31/13   03/31/14   YTD FY2014 06/30/14   09/30/14   12/31/14   YTD FY2015 %   $ Revenue: Marketing and data services 187,793 200,952 206,662 209,746 805,153 186,683 204,248 208,246 599,177 0.8 % 1,584 IT Infrastructure management services 69,385     66,825     62,099     58,816     257,125   55,532     55,789     52,194     163,515   -16.0 %   (9,905 ) Total revenue 257,178 267,777 268,761 268,562 1,062,278 242,215 260,037 260,440 762,692 -3.1 % (8,321 )   Operating costs and expenses: Cost of revenue 196,105 199,107 201,430 198,920 795,562 192,303 205,318 203,728 601,349 1.1 % 2,298 Selling, general and administrative 37,615 42,859 43,383 45,519 169,376 46,938 50,483 47,345 144,766 9.1 % 3,962 Impairment of goodwill and other - - - 24,953 24,953 - - - 0 - - Gains, losses and other items, net -     6,584     4,657     10,673     21,914   7,452     929     4,175     12,556   -10.4 %   (482 )   Total operating costs and expenses 233,720 248,550 249,470 280,065 1,011,805 246,693 256,730 255,248 758,671 2.3 % 5,778   Income (loss) from operations 23,458 19,227 19,291 (11,503 ) 50,473 (4,478 ) 3,307 5,192 4,021 -73.1 % (14,099 ) % Margin 9.1 % 7.2 % 7.2 % -4.3 % 4.8 % -1.8 % 1.3 % 2.0 % 0.5 % Other expense Interest expense (3,019 ) (2,980 ) (3,114 ) (2,558 ) (11,671 ) (2,571 ) (2,395 ) (2,610 ) (7,576 ) 16.2 % 504 Other, net 104     (350 )   1,484     579     1,817   (413 )   (115 )   (34 )   (562 ) -102.3 %   (1,518 ) Total other expense (2,915 ) (3,330 ) (1,630 ) (1,979 ) (9,854 ) (2,984 ) (2,510 ) (2,644 ) (8,138 ) 62.2 % (1,014 )   Earnings (loss) from continuing operations before income taxes 20,543 15,897 17,661 (13,482 ) 40,619 (7,462 ) 797 2,548 (4,117 ) -85.6 % (15,113 ) Income taxes 8,040     6,459     3,083     12,045     29,627   (1,390 )   2,293     (1,926 )   (1,023 ) -162.5 %   (5,009 )   Net earnings (loss) from continuing operations 12,503 9,438 14,578 (25,527 ) 10,992 (6,072 ) (1,496 ) 4,474 (3,094 ) -69.3 % (10,104 )   Earnings (loss) from discontinued operations, net of tax 592     426     489     (3,696 )   (2,189 ) (1,532 )   (48 )   (318 )   (1,898 ) -165.0 %   (807 )   Net earnings (loss) 13,095 9,864 15,067 (29,223 ) 8,803 (7,604 ) (1,544 ) 4,156 (4,992 ) -72.4 % (10,911 )  

Less: Net gain (loss) attributable to noncontrolling interest

(85 )   25     -     -     (60 ) -     -     -     -   -     -     Net earnings (loss) attributable to Acxiom 13,180     9,839     15,067     (29,223 )   8,863   (7,604 )   (1,544 )   4,156     (4,992 ) -72.4 %   (10,911 )  

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 )   0.05     (0.06 ) -73.7 %   (0.14 )     ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)                                         Q3 FY15 to Q3 FY14 06/30/13   09/30/13   12/31/13   03/31/14   YTD FY2014 06/30/14   09/30/14   12/31/14   YTD FY2015 %   $               Revenue:   Marketing and data services 187,793 200,952 206,662 209,746 805,153 186,683 204,248 208,246 599,177 1 % 1,584 IT Infrastructure management services 69,385     66,825     62,099     58,816     257,125   55,532     55,789     52,194     163,515   -16 %   (9,905 )   Total revenue 257,178     267,777     268,761     268,562     1,062,278   242,215     260,037     260,440     762,692   -3 %   (8,321 )   Income from continuing operations:   Marketing and data services 12,697 16,030 22,529 27,244 78,500 10,272 9,397 13,703 33,372 -39 % (8,826 ) IT Infrastructure management services 10,761 11,967 6,316 3,803 32,847 4,739 4,130 3,780 12,649 -40 % (2,536 ) Corporate -     (8,770 )   (9,554 )   (42,550 )   (60,874 ) (19,489 )   (10,220 )   (12,291 )   (42,000 ) -29 %   (2,737 )   Total income (loss) from continuing operations 23,458     19,227     19,291     (11,503 )   50,473   (4,478 )   3,307     5,192     4,021   -73 %   (14,099 )   Margin:   Marketing and data services 6.8 % 8.0 % 10.9 % 13.0 % 9.7 % 5.5 % 4.6 % 6.6 % 5.6 % IT Infrastructure management services 15.5 % 17.9 % 10.2 % 6.5 % 12.8 % 8.5 % 7.4 % 7.2 % 7.7 %   Total 9.1 % 7.2 % 7.2 % -4.3 % 4.8 % -1.8 % 1.3 % 2.0 % 0.5 %  

Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20150204006141/en/

AcxiomInvestor Relations:Lauren Dillard, 650-372-2242investor.relations@acxiom.comEACXM