Connectivity Revenue Exceeds $60 Million for
the Year
Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and
software-as-a-service company, today announced financial results
for its fourth quarter and full year ended March 31, 2015.
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Fourth Quarter Financial Highlights
Total revenue was $257 million, down 4% compared to the
fourth quarter of fiscal 2014 as a result of expected IT
Infrastructure Management declines.
- Marketing and Data Services revenue was
$206 million, down 2% compared to the fourth quarter of last year.
Connectivity revenue, which is included in Marketing and Data
Services, was $22 million, up $17 million or 367% compared to the
same period a year ago.
- IT Infrastructure Management revenue
was $52 million, down approximately 12% compared to the prior year
period.
GAAP loss per share was lower as a result of unusual items
associated with European restructuring activities in the prior
year.
- Net loss per share from continuing
operations was $0.08 compared to a net loss of $0.33 a year ago.
Unusual items, non-cash compensation and intangible asset
amortization impacted GAAP earnings per share by $0.32 in the
quarter. Unusual items included expenses associated with the
Company’s restructuring activities as well as separation and
transformation initiatives.
- Operating cash flow from continuing
operations was $34 million, down 15% compared to the same period a
year ago. Free cash flow to equity was $4 million compared to $15
million for the prior year period.
Non-GAAP operating income and diluted earnings per share were
down as a result of declines in International Marketing and Data
Services.
- Non-GAAP diluted earnings per share
were $0.24 compared to $0.26 a year ago. Earnings per share in the
current period were positively impacted by a tax adjustment
resulting in a $0.04 improvement.
- Non-GAAP operating income was $31
million, down from $35 million for the same period last year.
Fiscal Year 2015 Financial Highlights
Total revenue was $1,020 million, down 4% compared to $1,062
million in fiscal 2014 as a result of expected IT Infrastructure
Management declines.
- Marketing and Data Services revenue was
$805 million, roughly flat compared to the prior year. Connectivity
revenue was $63 million, up $48 million or 326% compared to fiscal
2014.
- IT Infrastructure Management revenue
was down year-over-year approximately 16%.
GAAP loss per share was 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 share from continuing
operations was $0.12 compared to earnings per share of $0.14 a year
ago. Unusual items, non-cash compensation and intangible asset
amortization impacted GAAP earnings per share by $0.90 for the
year. Unusual items included expenses associated with the Company’s
restructuring activities as well as separation and transformation
initiatives.
- Operating cash flow from continuing
operations was $105 million, down 36% compared to the prior year.
The decline was driven by changes in working capital, and to a
lesser extent, lower earnings.
- Free cash flow to equity was negative
$10 million compared to $76 million last year. The decline was
primarily due to lower operating cash flow and higher capital
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 $0.78 compared to $0.95 in the prior year. Earnings per share
in both periods were positively impacted by a tax adjustment
resulting in a $0.04 improvement.
- Non-GAAP operating income was $105
million, down from $126 million in fiscal 2014.
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.
“Connectivity’s strong performance in the fourth quarter capped
off a year of explosive adoption and growth,” said Acxiom CEO Scott
Howe. “Our focus in fiscal 2016 is on aggressively extending our
early lead in onboarding and Connectivity, and returning our
Marketing and Data Services business to a position of growth.”
Fourth Quarter Business Highlights
- The Company added 20 new
Connectivity customers during the quarter including several
major advertisers and marketing applications. Customers can now
onboard and distribute data to a growing universe of over 140
leading publishers and marketing applications.
- Acxiom joined the newly renamed
Facebook Marketing Partners Program. As part of this program,
Acxiom’s audience data and onboarding capabilities are available to
Facebook marketers globally.
- The Company expanded its global data
partnership with Twitter during the quarter. Twitter’s behavior
targeting and partner audiences program will leverage Acxiom’s
third party data to power its advertising reach. Advertisers are
now able to select from 135 Acxiom audience categories to define or
find a group of users on Twitter.
- Acxiom appointed Rick Erwin as
President and General Manager of Audience Solutions, a newly
formed business unit comprised of the Company’s Data and Decision
Sciences assets. With over two decades of marketing services
experience, Erwin, a leading voice in the field of data-driven
marketing, will be responsible for driving the strategy, growth and
profitability of Acxiom’s industry-leading data and recognition
products and services.
- Subsequent to quarter-end, Acxiom
entered into a definitive agreement to sell its IT Infrastructure
Management business to Charlesbank Capital Partners and
co-investor M/C Partners for total cash consideration of up to $190
million. The sale will allow the Company to focus more sharply on
its Marketing and Data Services business.
Financial Outlook
The Company’s guidance excludes the IT Infrastructure Management
business as it will be reported as a discontinued operation
beginning in the first quarter of fiscal 2016. It also excludes the
impact of unusual items, non-cash compensation and acquired
intangible asset amortization. Acxiom’s estimates for fiscal 2016
are as follows:
- Revenue from continuing operations in
the range of $815 million to $840 million.
- Earnings per diluted share from
continuing operations in the range of $0.45 to $0.50.
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.
About Acxiom
Acxiom is an enterprise data, analytics and
software-as-a-service company that uniquely fuses trust, experience
and scale to fuel data-driven results. For over 40 years, Acxiom
has been an innovator in harnessing the most important sources and
uses of data to strengthen connections between people, businesses
and their partners. Utilizing a channel and media neutral approach,
we leverage cutting-edge, data-oriented products and services to
maximize customer value. Every week, Acxiom powers more than a
trillion transactions that enable better living for people and
better results for our 7,000+ global clients. For more information
about Acxiom, visit Acxiom.com.
Forward-Looking Statements
This release and today’s conference call may contain
forward-looking statements including, without limitation,
statements regarding expected levels of revenue and earnings per
share, the impact of a sale of ITO. 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 ITO
transaction might not close, or close within the anticipated time
frame, due to a failure of one or more closing conditions; the
possibility that the expected revenue from the divisions 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 March 31, $ % 2015 2014
Variance Variance Revenue: Marketing and data services
205,734 209,746 (4,012 ) (1.9 %) IT Infrastructure management
services 51,633 58,816 (7,183 ) (12.2 %) Total
revenue 257,367 268,562 (11,195 ) (4.2 %) Operating costs
and expenses: Cost of revenue 206,120 198,920 7,200 3.6 % Selling,
general and administrative 43,795 45,519 (1,724 ) (3.8 %)
Impairment of goodwill and other - 24,953 (24,953 ) (100.0 %)
Gains, losses and other items, net 12,077 10,673
1,404 13.2 % Total operating costs and expenses 261,992
280,065 (18,073 ) (6.5 %) Loss from operations
(4,625 ) (11,503 ) 6,878 59.8 % %
Margin -1.8
% -4.3 % Other income (expense): Interest
expense (2,474 ) (2,558 ) 84 3.3 % Other, net (763 ) 579
(1,342 ) (231.8 %) Total other income (expense) (3,237 )
(1,979 ) (1,258 ) (63.6 %) Loss from continuing operations
before income taxes (7,862 ) (13,482 ) 5,620 41.7 % Income
taxes (1,809 ) 12,045 (13,854 ) (115.0 %) Net loss
from continuing operations (6,053 ) (25,527 ) 19,474 76.3 %
Earnings (loss) from discontinued operations, net of tax 14
(3,696 ) 3,710 100.4 % Net loss (6,039 ) (29,223 ) 23,184
79.3 % Less: Net earnings attributable to noncontrolling
interest - - - - Net loss attributable to
Acxiom (6,039 ) (29,223 ) 23,184 79.3 % Basic loss per
share: Net loss from continuing operations (0.08 ) (0.33 ) 0.26
76.6 % Earnings (loss) from discontinued operations - (0.05
) 0.05 100.0 % Net loss (0.08 ) (0.38 ) 0.30 78.9 % Net loss
attributable to Acxiom stockholders (0.08 ) (0.38 ) 0.31 79.6 %
Diluted loss per share: Net loss from continuing
operations (0.08 ) (0.33 ) 0.26 76.6 % Earnings (loss) from
discontinued operations - (0.05 ) 0.05 100.0 % Net loss
(0.08 ) (0.38 ) 0.30 78.9 % Net loss attributable to Acxiom
stockholders (0.08 ) (0.38 ) 0.31 79.6 %
ACXIOM CORPORATION AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in thousands, except earnings per share) For
the Twelve Months Ended March 31 $ % 2015 2014 Variance Variance
Revenue: Marketing and data services 804,911 805,153 (242 )
(0.0 %) IT Infrastructure management services 215,148
257,125 (41,977 ) (16.3 %) Total revenue 1,020,059 1,062,278
(42,219 ) (4.0 %) Operating costs and expenses: Cost of
revenue 807,469 795,562 11,907 1.5 % Selling, general and
administrative 188,561 169,376 19,185 11.3 % Impairment of goodwill
and other - 24,953 Gains, losses and other items, net 24,633
21,914 2,719 12.4 % Total operating costs and
expenses 1,020,663 1,011,805 8,858 0.9 %
Income from operations (604 ) 50,473 (51,077 ) (101.2 %) %
Margin -0.1 % 4.8 % Other income
(expense): Interest expense (10,050 ) (11,671 ) 1,621 13.9 % Other,
net (1,325 ) 1,817 (3,142 ) (172.9 %) Total other
income (expense) (11,375 ) (9,854 ) (1,521 ) (15.4 %)
Earnings (loss) from continuing operations before income taxes
(11,979 ) 40,619 (52,598 ) (129.5 %) Income taxes (2,832 )
29,627 (32,459 ) (109.6 %) Net earnings (loss) from
continuing operations (9,147 ) 10,992 (20,139 ) (183.2 %)
Loss from discontinued operations, net of tax (1,884 ) (2,189 ) 305
13.9 % Net earnings (loss) (11,031 ) 8,803 (19,834 ) (225.3
%) Less: Net loss attributable to noncontrolling interest -
(60 ) 60 100.0 % Net earnings (loss) attributable to
Acxiom (11,031 ) 8,863 (19,894 ) (224.5 %) Basic
earnings (loss) per share: Net earnings (loss) from continuing
operations (0.12 ) 0.15 (0.27 ) (180.6 %) Earnings (loss) from
discontinued operations (0.02 ) (0.03 ) 0.01 33.3 % Net earnings
(loss) (0.14 ) 0.12 (0.26 ) (216.7 %) Net earnings
(loss) attributable to Acxiom stockholders (0.14 ) 0.12
(0.26 ) (220.6 %) Diluted earnings (loss) per share:
Net earnings (loss) from continuing operations (0.12 ) 0.14 (0.26 )
(183.1 %) Earnings (loss) from discontinued operations (0.02 )
(0.03 ) 0.01 33.3 % Net earnings (loss) (0.14 ) 0.11 (0.25 )
(227.3 %) Net earnings (loss) attributable to Acxiom
stockholders (0.14 ) 0.12 (0.26 ) (224.2 %)
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 Twelve Months Ended March 31, March 31,
2015 2014 2015 2014 Earnings (loss) from continuing
operations before income taxes (7,862 ) (13,482 ) (11,979 ) 40,619
Income taxes (1,809 ) 12,045 (2,832 ) 29,627
Net earnings (loss) from continuing operations (6,053 )
(25,527 ) (9,147 ) 10,992 Earnings (loss) from discontinued
operations, net of tax 14 (3,696 ) (1,884 ) (2,189 )
Net earnings (loss) (6,039 ) (29,223 ) (11,031 ) 8,803 Less:
Net earnings (loss) attributable to noncontrolling interest -
- - (60 ) Net earnings (loss)
attributable to Acxiom (6,039 ) (29,223 ) (11,031 ) 8,863
Earnings (loss) per share attributable to Acxiom
stockholders: Basic (0.08 ) (0.38 ) (0.14 ) 0.12
Diluted (0.08 ) (0.38 ) (0.14 ) 0.12 Unusual
items: Legal settlement accruals (gains, losses, and other) - - -
4,200 Purchased intangible asset amortization (cost of revenue)
3,779 68 11,446 340 Live Ramp acquisition costs (gains, losses, and
other) - - 820 - Impairment of goodwill and other assets - 24,953 -
24,953 Non-cash stock compensation (cost of revenue and SG&A)
8,348 3,581 28,886 13,925 Restructuring charges and other
adjustments (gains, losses, and other) 12,077 10,673 23,813 17,714
Separation and transformation costs (SG&A) 7,044 6,924 36,488
14,007 Accelerated amortization (cost of revenue) 4,316 - 4,316 -
Gain on investment (other income) - - - (2,567
) Total unusual items, continuing operations 35,564
46,199 105,769 72,572
Earnings from continuing operations before
income taxes and excluding unusual items
27,702 32,717 93,790 113,191 Income taxes 8,706
12,474 32,653 40,015 Non-GAAP earnings
from continuing operations 18,996 20,243 61,137 73,176
Earnings from discontinued operations, net of tax - -
- - Non-GAAP net earnings 18,996 20,243 61,137
73,176 Less: Net loss attributable to noncontrolling
interest - - - (60 ) Non-GAAP Net
earnings attributable to Acxiom 18,996 20,243 61,137
73,236 Non-GAAP earnings per share
attributable to Acxiom stockholders: Basic 0.25 0.27
0.79 0.98 Diluted 0.24 0.26
0.78 0.95 Basic weighted average shares
77,427 76,293 77,106 74,690
Diluted weighted average shares 79,027 78,450 78,495
76,954
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 Twelve Months Ended March
31, March 31, 2015 2014 2015 2014 Income from operations
(4,625 ) (11,503 ) (604 ) 50,473 Unusual items 35,564
46,199 105,769 75,139 Income from operations
before unusual items 30,939 34,696 105,165
125,612 ACXIOM
CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE
(Unaudited) (In thousands, except earnings per share)
For the Three Months Ended March 31, March 31, 2015 2014
Basic loss per share from continuing operations: Numerator -
net loss (6,053 ) (25,527 ) Denominator - weighted-average shares
outstanding 77,427 76,293 Basic loss per share (0.08
) (0.33 ) Basic loss per share - net earnings attributable
to Acxiom stockholders: Numerator - net loss attributable to Acxiom
(6,039 ) (29,223 ) Denominator - weighted-average shares
outstanding 77,427 76,293 Basic loss per share - net
loss attributable to Acxiom stockholders (0.08 ) (0.38 )
Diluted loss per share from continuing operations: Numerator - net
loss (6,053 ) (25,527 ) Denominator - weighted-average
shares outstanding 77,427 76,293 Dilutive effect of common stock
options, warrants and restricted stock - - 77,427
76,293 Diluted loss per share from continuing
operations (0.08 ) (0.33 ) Diluted loss per share - net
earnings attributable to Acxiom stockholders: Numerator - net loss
attributable to Acxiom (6,039 ) (29,223 ) Denominator -
weighted-average shares outstanding 77,427 76,293 Dilutive effect
of common stock options, warrants, and restricted stock - -
77,427 76,293 Diluted loss per share -
net loss attributable to Acxiom stockholders (0.08 ) (0.38 )
ACXIOM CORPORATION
AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE (Unaudited) (In
thousands, except earnings per share) For the Twelve
Months Ended March 31, March 31, 2015 2014 Basic
earnings (loss) per share from continuing operations: Numerator -
net earnings (loss) (9,147 ) 10,992 Denominator - weighted-average
shares outstanding 77,106 74,690 Basic earnings (loss) per
share (0.12 ) 0.15 Basic earnings (loss) per share - net
earnings (loss) attributable to Acxiom stockholders: Numerator -
net earnings (loss) attributable to Acxiom (11,031 ) 8,863
Denominator - weighted-average shares outstanding 77,106
74,690 Basic earnings (loss) per share - net earnings (loss)
attributable to Acxiom stockholders (0.14 ) 0.12 Diluted
earnings (loss) per share from continuing operations: Numerator -
net earnings (loss) (9,147 ) 10,992 Denominator -
weighted-average shares outstanding 77,106 74,690 Dilutive effect
of common stock options, warrants and restricted stock -
2,264 77,106 76,954 Diluted earnings (loss) per share
from continuing operations (0.12 ) 0.14 Diluted earnings
(loss) per share - net earnings (loss) attributable to Acxiom
stockholders: Numerator - net earnings (loss) attributable to
Acxiom (11,031 ) 8,863 Denominator - weighted-average shares
outstanding 77,106 74,690 Dilutive effect of common stock options,
warrants, and restricted stock - 2,264 77,106 76,954
Diluted earnings (loss) per share - net earnings (loss)
attributable to Acxiom stockholders (0.14 ) 0.12
ACXIOM CORPORATION AND
SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)
For the Three Months Ended March 31, March 31,
Revenue: 2015 2014 Marketing and data services
205,734 209,746 IT Infrastructure management services 51,633
58,816 Total revenue 257,367 268,562
Income from continuing operations:
Marketing and data services 13,356 27,244 IT Infrastructure
management services 5,456 3,803 Corporate (23,437 ) (42,550 )
Total loss from continuing operations (4,625 ) (11,503 )
Margin: Marketing and data services 6.5 % 13.0
% IT Infrastructure management services 10.6 % 6.5 % Total
margin -1.8 % -4.3 %
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited)
(Dollars in thousands) For the Twelve Months Ended
March 31, March 31,
Revenue: 2015 2014
Marketing and data services 804,911 805,153 IT Infrastructure
management services 215,148 257,125 Total
revenue 1,020,059 1,062,278
Income
from continuing operations: Marketing and data services
46,728 78,500 IT Infrastructure management services 18,105 32,847
Corporate (65,437 ) (60,874 ) Total income from continuing
operations (604 ) 50,473
Margin:
Marketing and data services 5.8 % 9.7 % IT Infrastructure
management services 8.4 % 12.8 % Total margin -0.1 % 4.8 %
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
Twelve Months Ended March 31, March 31, 2015 2014 2015 2014
Marketing and data services income from operations 13,356 27,244
46,728 78,500 Unusual items: Purchased intangible
asset amortization 3,779 68 11,446 340 Non-cash stock compensation
8,594 2,772 26,927 10,699
Marketing and data services income from
operations before unusual items
25,729 30,084 85,101 89,539
Margin 12.5 % 14.3 % 10.6 % 11.1 %
IT infrastructure management services
income from operations
5,456 3,803 18,105 32,847 Unusual items: Non-cash
stock compensation (246 ) 809 1,959 3,226
IT infrastructure management services
income from operations before unusual items
5,210 4,612 20,064 36,073 Margin
10.1 % 7.8 % 9.3 % 14.0 %
ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)
March 31, March 31, $ % 2015 2014 Variance
Variance
Assets
Current assets: Cash and cash equivalents 141,010 418,586 (277,576
) (66.3 %) Trade accounts receivable, net 162,639 160,718 1,921 1.2
% Deferred income taxes 28,372 12,870 15,502 120.5 % Refundable
income taxes 5,239 11,535 (6,296 ) (54.6 %) Restricted cash held in
escrow 31,000 - 31,000 100.0 % Other current assets 45,682 54,484
(8,802 ) (16.2 %) Assets of discontinued operations 112
7,332 (7,220 ) (98.5 %) Total current assets 414,054
665,525 (251,471 ) (37.8 %) Property and
equipment 723,006 852,236 (129,230 ) (15.2 %) Less - accumulated
depreciation and amortization 502,416 635,330
(132,914 ) (20.9 %) Property and equipment, net 220,590
216,906 3,684 1.7 % Software, net of
accumulated amortization 68,962 39,425 29,537 74.9 % Goodwill
568,870 358,384 210,486 58.7 % Purchased software licenses, net of
accumulated amortization 13,494 18,584 (5,090 ) (27.4 %) Other
assets, net 36,454 24,477 11,977 48.9 %
1,322,424 1,323,301 (877 ) (0.1 %)
Liabilities and
Stockholders' Equity
Current liabilities: Current installments of long-term debt 32,885
28,567 4,318 15.1 % Trade accounts payable 38,951 36,179 2,772 7.7
% Accrued payroll and related expenses 39,026 62,182 (23,156 )
(37.2 %) Other accrued expenses 67,867 70,412 (2,545 ) (3.6 %)
Acquisition escrow payable 31,000 - 31,000 100.0 % Deferred revenue
37,278 47,638 (10,360 ) (21.7 %) Income taxes - 241 (241 ) (100.0
%) Liabilities of discontinued operations 1,008 4,250
(3,242 ) (76.3 %) Total current liabilities 248,015
249,469 (1,454 ) (0.6 %) Long-term debt 254,539
289,043 (34,504 ) (11.9 %) Deferred income taxes 103,391
90,226 13,165 14.6 % Other liabilities 13,222 11,706 1,516
13.0 % Stockholders' equity: Common stock 12,794 12,584 210
1.7 % Additional paid-in capital 1,034,526 981,985 52,541 5.4 %
Retained earnings 591,798 602,829 (11,031 ) (1.8 %) Accumulated
other comprehensive income 9,413 13,662 (4,249 ) (31.1 %) Treasury
stock, at cost (945,274 ) (928,203 ) (17,071 ) (1.8 %) Total
stockholders' equity 703,257 682,857 20,400 3.0 %
1,322,424 1,323,301 (877 ) (0.1 %)
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands) For the Three Months Ended March 31,
2015 2014 Cash flows from operating activities: Net earnings
(loss) (6,039 ) (29,223 ) Loss (earnings) from discontinued
operations, net of tax (14 ) 3,696 Non-cash operating activities:
Depreciation and amortization 33,863 26,728 Disposal or impairment
of assets 1,976 (9 ) Impairment of goodwill and other - 24,953
Deferred income taxes (7,669 ) 5,763 Non-cash stock compensation
expense 8,348 3,581 Changes in operating assets and liabilities:
Accounts receivable (8,025 ) 4,308 Other assets 12,244 (8,192 )
Deferred costs 4 (417 ) Accounts payable and other liabilities 273
12,044 Deferred revenue (497 ) (2,545 ) Net cash provided by
operating activities 34,464 40,687 Cash flows from
investing activities: Capitalized software (3,602 ) (5,408 )
Capital expenditures (17,512 ) (14,409 ) Data acquisition costs
(374 ) (3,085 ) Payments from investments - 190 Net cash paid in
acquisitions - (500 ) Net cash provided (used) by investing
activities (21,488 ) (23,212 ) Cash flows from financing
activities: Payments of debt (8,606 ) (5,728 ) Sale of common
stock, net of stock acquired for withholding taxes 5,846 11,384 Tax
impact of stock options, warrants, and restricted stock 4,645
11,295 Net cash provided (used) by financing
activities 1,885 16,951 Cash flows from discontinued
operations: From operating activities (12 ) 3,147 From investing
activities (92 ) - Net cash provided by discontinued
operations (104 ) 3,147 Effect of exchange rate changes on
cash (638 ) 105 Net change in cash and cash
equivalents 14,119 37,678 Cash and cash equivalents at beginning of
period 126,891 380,908 Cash and cash equivalents at
end of period 141,010 418,586
Supplemental
cash flow information: Cash paid (received) during the period
for: Interest 2,473 2,495 Income taxes (4,383 ) 5,928 Payments on
capital leases and installment payment arrangements 574 1,465 Other
debt payments, excluding line of credit 8,032 4,263
ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in
thousands) For the Twelve Months Ended March 31 2015 2014
Cash flows from operating activities: Net earnings (loss)
(11,031 ) 8,803 Loss (earnings) from discontinued operations, net
of tax 1,884 2,189 Non-cash operating activities: Depreciation and
amortization 118,834 102,426 Disposal or impairment of assets 1,976
(2,576 ) Loss on early extinguishment of debt - 664 Impairment of
goodwill and other - 24,953 Deferred income taxes (9,689 ) 2,097
Non-cash stock compensation expense 28,886 13,925 Changes in
operating assets and liabilities: Accounts receivable (497 ) 8,272
Other assets 15,727 (1,260 ) Deferred costs (1,484 ) (506 )
Accounts payable and other liabilities (29,142 ) 288 Deferred
revenue (10,677 ) 3,966 Net cash provided by operating
activities 104,787 163,241 Cash flows from investing
activities: Capitalized software (18,587 ) (24,517 ) Capital
expenditures (69,041 ) (39,132 ) Data acquisition costs (1,871 )
(7,745 ) Payments from investments - 3,823 Net cash paid in
acquisitions (265,672 ) (500 ) Net cash provided (used) by
investing activities (355,171 ) (68,071 ) Cash flows from financing
activities: Proceeds from debt - 300,000 Payments of debt (28,421 )
(235,895 ) Fees for debt refinancing - (4,370 ) Sale of common
stock, net of stock acquired for withholding taxes 5,039 80,490 Tax
impact of stock options, warrants, and restricted stock 4,645
11,295 Acquisition of treasury stock (9,868 ) (52,663 ) Acquisition
of noncontrolling interest - (600 ) Net cash provided (used)
by financing activities (28,605 ) 98,257 Cash flows from
discontinued operations: From operating activities 197 1,735 From
investing activities 2,835 (166 ) Net cash provided (used)
by discontinued operations 3,032 1,569 Effect of
exchange rate changes on cash (1,619 ) 616 Net change
in cash and cash equivalents (277,576 ) 195,612 Cash and cash
equivalents at beginning of period 418,586 222,974
Cash and cash equivalents at end of period 141,010 418,586
Supplemental cash flow information: Cash paid
(received) during the period for: Interest 8,673 11,762 Income
taxes (3,845 ) 21,702 Payments on capital leases and installment
payment arrangements 3,823 8,379 Other debt payments, excluding
line of credit 24,598 12,516 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 03/31/15 YTD FY2015
Net cash provided by operating activities - continuing
operations 16,508 42,255 63,791 40,687 163,241 1,867 25,792 42,664
34,464 104,787 Net cash provided by operating activities -
discontinued operations 341 (1,734 ) (19 ) 3,147 1,735 (13 ) 82 140
(12 ) 197 Less: Payments for investments - - 3,633 190 3,823
- - - - Capitalized software (5,954 ) (7,660 ) (5,495 ) (5,408 )
(24,517 ) (4,969 ) (5,608 ) (4,408 ) (3,602 ) (18,587 ) Capital
expenditures (8,912 ) (9,130 ) (6,681 ) (14,409 ) (39,132 ) (19,001
) (19,396 ) (13,132 ) (17,512 ) (69,041 ) Data acquisition costs
(1,961 ) (913 ) (1,786 ) (3,085 ) (7,745 ) (635 ) (468 ) (394 )
(374 ) (1,871 ) Discontinued operations investing activities (8 )
(139 ) (19 ) - (166 ) 2,927 - - (92 ) 2,835 Payments on capital
leases and installment payment arrangements (2,900 ) (2,339 )
(1,675 ) (1,465 ) (8,379 ) (1,235 ) (1,084 ) (930 ) (574 ) (3,823 )
Other required debt payments (1,990 ) (2,004 ) (4,259
) (4,263 ) (12,516 ) (4,267 ) (4,272 )
(8,027 ) (8,032 ) (24,598 ) Total (4,876 )
18,336 47,490 15,394
76,344 (25,326 ) (4,954 ) 15,913
4,266 (10,101 )
ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings
per share)
Q4 FY15 to Q4 FY14 06/30/13 09/30/13
12/31/13 03/31/14 YTD FY2014 06/30/14 09/30/14
12/31/14 03/31/15 YTD FY2015 % $
Revenue: Marketing and data services 187,793 200,952 206,662
209,746 805,153 186,683 204,248 208,246 205,734 804,911 -1.9 %
(4,012 ) IT Infrastructure management services 69,385
66,825 62,099 58,816
257,125 55,532 55,789 52,194
51,633 215,148 -12.2 %
(7,183 ) Total revenue 257,178 267,777 268,761 268,562 1,062,278
242,215 260,037 260,440 257,367 1,020,059 -4.2 % (11,195 )
Operating costs and expenses: Cost of revenue 196,105 199,107
201,430 198,920 795,562 192,303 205,318 203,728 206,120 807,469 3.6
% 7,200 Selling, general and administrative 37,615 42,859 43,383
45,519 169,376 46,938 50,483 47,345 43,795 188,561 -3.8 % (1,724 )
Impairment of goodwill and other - - - 24,953 24,953 - - - - 0
-100.0 % (24,953 ) Gains, losses and other items, net -
6,584 4,657 10,673
21,914 7,452 929 4,175
12,077 24,633 13.2 % 1,404
Total operating costs and expenses 233,720 248,550
249,470 280,065 1,011,805 246,693 256,730 255,248 261,992 1,020,663
-6.5 % (18,073 ) Income (loss) from operations 23,458 19,227
19,291 (11,503 ) 50,473 (4,478 ) 3,307 5,192 (4,625 ) (604 ) 59.8 %
6,878
% Margin 9.1 % 7.2 %
7.2 % -4.3 % 4.8 %
-1.8 % 1.3 % 2.0 %
-1.8 % -0.1 % Other expense Interest
expense (3,019 ) (2,980 ) (3,114 ) (2,558 ) (11,671 ) (2,571 )
(2,395 ) (2,610 ) (2,474 ) (10,050 ) 3.3 % 84 Other, net 104
(350 ) 1,484 579 1,817
(413 ) (115 ) (34 ) (763 )
(1,325 ) -231.8 % (1,342 ) Total other expense (2,915 )
(3,330 ) (1,630 ) (1,979 ) (9,854 ) (2,984 ) (2,510 ) (2,644 )
(3,237 ) (11,375 ) -63.6 % (1,258 ) Earnings (loss) from
continuing operations before income taxes 20,543 15,897 17,661
(13,482 ) 40,619 (7,462 ) 797 2,548 (7,862 ) (11,979 ) 41.7 % 5,620
Income taxes 8,040 6,459 3,083
12,045 29,627 (1,390 ) 2,293
(1,926 ) (1,809 ) (2,832 ) -115.0 %
(13,854 ) Net earnings (loss) from continuing
operations 12,503 9,438 14,578 (25,527 ) 10,992 (6,072 ) (1,496 )
4,474 (6,053 ) (9,147 ) 76.3 % 19,474 Earnings (loss) from
discontinued operations, net of tax 592 426
489 (3,696 ) (2,189 ) (1,532 )
(48 ) (318 ) 14 (1,884 ) 100.4 %
3,710 Net earnings (loss) 13,095 9,864 15,067 (29,223
) 8,803 (7,604 ) (1,544 ) 4,156 (6,039 ) (11,031 ) 79.3 % 23,184
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 (6,039 ) (11,031 ) 79.3
% 23,184
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
(0.08 ) (0.14 ) 78.9 % 0.30
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY
SEGMENT (Unaudited) (Dollars in thousands)
Q4 FY15 to
Q4 FY14 06/30/13 09/30/13 12/31/13 03/31/14
YTD FY2014 06/30/14 09/30/14 12/31/14
03/31/15 YTD FY2015 % $
Revenue: Marketing and data
services 187,793 200,952 206,662 209,746 805,153 186,683 204,248
208,246 205,734 804,911 -2 % (4,012 ) IT Infrastructure management
services 69,385 66,825 62,099
58,816 257,125 55,532
55,789 52,194 51,633
215,148 -12 % (7,183 ) Total revenue 257,178
267,777 268,761 268,562
1,062,278 242,215 260,037
260,440 257,367 1,020,059
-4 % (11,195 ) Income from continuing operations:
Marketing and data services 12,697 16,030 22,529 27,244
78,500 10,272 9,397 13,703 13,356 46,728 -51 % (13,888 ) IT
Infrastructure management services 10,761 11,967 6,316 3,803 32,847
4,739 4,130 3,780 5,456 18,105 43 % 1,653 Corporate -
(8,770 ) (9,554 ) (42,550 ) (60,874 ) (19,489
) (10,220 ) (12,291 ) (23,437 ) (65,437
) 45 % 19,113 Total income (loss) from
continuing operations 23,458 19,227
19,291 (11,503 ) 50,473 (4,478 )
3,307 5,192 (4,625 ) (604 ) 60 %
6,878 Margin: Marketing and data
services 6.8 % 8.0 % 10.9 % 13.0 % 9.7 % 5.5 % 4.6 % 6.6 % 6.5 %
5.8 % IT Infrastructure management services 15.5 % 17.9 % 10.2 %
6.5 % 12.8 % 8.5 % 7.4 % 7.2 % 10.6 % 8.4 % Total 9.1 % 7.2
% 7.2 % -4.3 % 4.8 % -1.8 % 1.3 % 2.0 % -1.8 % -0.1 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150521006423/en/
Acxiom Investor RelationsLauren Dillard,
650-372-2242investor.relations@acxiom.comEACXM
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