Acxiom� Corporation (Nasdaq: ACXM) today announced financial
results for the third quarter of fiscal 2008 ended December 31,
2007. Acxiom will hold a conference call at 4:30 p.m. CST today to
discuss this information further. Interested parties are invited to
listen to the call, which will be broadcast via the Internet at
www.acxiom.com. Revenue for the three-month period was $350.3
million, a decrease of 0.7 percent from the third quarter of fiscal
2007. Operating income for the quarter was $96.9 million including
the unusual items detailed below. This represents an increase of 89
percent compared to the same quarter a year ago. Earnings of $.69
per diluted share include the impact of $.49 per share in unusual
benefit, net of income tax effect, in the quarter as detailed
below. For the nine-month period ended December 31, 2007, revenue
totaled $1.04 billion, up 0.2 percent from the same period in the
prior year. Income from operations for the nine months was $121.4
million compared to $129.5 million a year ago. Diluted earnings per
share were $.66 compared to $.75 in the prior year. The diluted
earnings per share include the impact of $28.1 million, or $.21 per
share, of benefit from unusual items, net of income tax effect, for
the nine-month period. Third-quarter earnings per diluted share of
$.69 include a $63.5 million, or $.49 per diluted share, net
benefit related to gains, losses and other items. The significant
components of the gains, losses and other items are: A $65 million
payment received from Silver Lake and ValueAct Capital after the
termination of the firms� agreement to acquire Acxiom A $2.6
million gain realized from the sale of the software distribution
unit of Acxiom�s operations in France A $3 million payment to
retiring company leader Charles Morgan $0.3 million in transaction
costs related to the Silver Lake/ValueAct transaction $0.8 million
for ongoing restructuring activities in Europe �Our revenue and
earnings on continuing operations continue to be impacted by the
difficulty in the financial services industry, which has resulted
in reduced spending by many of our clients,� interim company leader
Charles D. Morgan said. �With many of our largest clients affected
by the downturn, it has had a significant impact on an important
sector of our business. As we have discussed previously, due to the
decrease in revenue during the first half of our fiscal year, we
took measures to reduce expenses. Although these initiatives had a
meaningful impact on expenses this quarter, these measures did not
fully offset the reduction in revenue in the third quarter. We
expect to experience continued reduced spending from some of our
clients, especially in the financial services industry.� Details of
Acxiom�s third-quarter performance include: Revenue of $350.3
million, down 0.7 percent from $352.8 million in the third quarter
a year ago Income from operations of $96.9 million, up 88.9 percent
from $51.3 million in the third quarter last year; income from
operations included $63.5 million generated by gains, losses and
other items Diluted earnings per share of $.69 compared to $.31 in
the third quarter of fiscal 2007; included is $.49 in diluted
earnings per share that represents the net of gains, losses and
other items Operating cash flow of $130.1 million and free cash
flow available to equity of $83.9 million; free cash flow available
to equity is a non-GAAP financial measure; a reconciliation to the
comparable GAAP measure, operating cash flow, is attached to this
press release The repurchase of approximately 4.0 million shares of
Acxiom stock for $49.1 million Segment information Information
Services Division: The division develops, sells and delivers
industry-tailored solutions globally through the integration of
products, services and consulting. Revenue for the quarter was
$184.5 million, down 1.7 percent from the third quarter of the
previous year. For the nine months ended December 31, 2007, revenue
was $556.7 million, up 2.4 percent from the previous year.
Operating income for the quarter was $25.6 million, down 32.5
percent from the third quarter of the previous year. For the nine
months just ended, operating income was $78.3 million, down 23.4
percent from the previous nine-month period. Information Products
Division: The division develops and sells all global data products,
including InfoBase-X� and PersonicX�, as well as fraud and risk
mitigation products sold in the U.S., including InsightIdentify. It
focuses on product development, product lifecycle management, data
content management and innovation. Revenue for the quarter was
$111.2 million, up 4.9 percent from the third quarter of the
previous year. For the nine months ended December 31, 2007, revenue
was $316.1 million, up 3.4 percent from the previous year.
Operating income for the quarter was $8.2 million, up 20.2 percent
from the third quarter of the previous year. For the nine months
just ended, operating income was $10.7 million, up 7.3 percent from
the previous nine-month period. Infrastructure Management Division:
The division develops and delivers information technology products
and services that improve a company�s ability to manage its
information technology delivery platform with lower costs and
higher efficiencies. Such offerings include traditional IT
outsourcing and transformational solutions such as the Acxiom data
factory. Revenue for the quarter was $112.9 million, down 4.3
percent from the third quarter of the previous year. For the nine
months ended December 31, 2007, revenue was $339.3 million, down
5.1 percent from the previous year. Operating income for the
quarter was $11.1 million, down 18.5 percent from the third quarter
of the previous year. For the nine months just ended, operating
income was $36.0 million, down 8.9 percent from the previous
nine-month period. Recent developments New Chief Executive Officer
announced On January 17, 2008, Acxiom announced the naming of John
Meyer as its new CEO and President. Meyer has most recently been
president of the Global Services group of Alcatel-Lucent. Prior to
Alcatel-Lucent, Meyer served in a variety of executive capacities
with EDS. Meyer will join Acxiom on February 4, 2008, and will also
serve as a member of the board of directors. Meyer said that
�Acxiom's position as the leading provider of offline and online
marketing services is the envy of the market. Acxiom's proud
history of innovation and delivery excellence has created value for
its clients for decades. It is an honor to join the Company and do
all I can to build on its successes. I look forward to working with
our associates to create value for our clients and shareholders.�
EMC Update In December 2005, the Company and EMC entered into an
agreement whereby EMC purchased Acxiom�s existing grid operating
system for a total payment of $30 million, which the Company
previously received. As part of the agreement, EMC has the option,
in exchange for a $20 million payment by the end of January, to
acquire the Acxiom unit responsible for the further development of
the technology initially sold to EMC as well as new technology and
functionality created by the unit that could be utilized by the
Company and EMC. EMC has informed the company that it does not
intend to exercise the option, per its original terms, and the
parties are now engaged in negotiations concerning an ongoing
commercial relationship. ValueAct SmallCap Fund Upon the request of
ValueAct Capital Group and pursuant to the August 5, 2006 agreement
between the company and ValueAct Capital Group, on January 17, 2008
permission was granted to ValueAct SmallCap Master Fund, L.P. to
purchase up to $30 million of the common stock of the company in
open market or privately negotiated transactions. It is the
understanding of the company that ValueAct Capital Group is
associated with but does not control ValueAct SmallCap Master Fund,
L.P. Outlook The Company is updating its outlook for the remainder
of its 2008 fiscal year. Previous guidance is superseded by the
updated guidance and should not be relied upon. Revenue for the 12
months ending March 31, 2008 is expected to be flat to down 1
percent compared to fiscal 2007. Earnings per diluted share, before
the effect of any unusual items recorded during the fiscal year,
are expected to be in the range of $.60 to $.65. Reflecting the
$28.1 million of unusual items recorded during the first three
quarters of the fiscal year, earnings per diluted share for the
fiscal year are expected to be from $.81 to $.86. These projections
are forward looking, and actual results may differ materially.
These projections may be impacted by mergers, acquisitions,
divestitures or other business combinations that may be completed
in the future as well as the other factors set forth below. About
Acxiom Acxiom Corporation (Nasdaq: ACXM) integrates data, services
and technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world. The core components of Acxiom�s innovative
solutions are Customer Data Integration (CDI) technology, data,
database services, IT outsourcing, consulting and analytics, and
privacy leadership. Founded in 1969, Acxiom is headquartered in
Little Rock, Arkansas, with locations throughout the United States
and Europe, and in Australia, China and Canada. For more
information, visit www.acxiom.com. This release and today�s
conference call contain forward-looking statements that are subject
to certain risks and uncertainties that could cause actual results
to differ materially. Such statements may include but are not
necessarily limited to the following: that the projected revenue
and earnings per share will be within the estimated ranges. The
following are factors, among others, that could cause actual
results to differ materially from these forward-looking statements:
The possibility that certain contracts may not be closed, or may
not be closed within the anticipated time frames; the possibility
that clients may attempt to reduce the amount of business they do
with the Company; the possibility that in the event that a change
of control of the Company was sought that certain of the clients of
the Company would invoke certain provisions in their contracts
resulting in a decline in the revenue and profit of the Company;
the possibility that certain contracts may not generate the
anticipated revenue or profitability; the possibility that negative
changes in economic or other conditions might lead to a reduction
in demand for our products and services; the possibility of an
economic slowdown or that economic conditions in general will not
be as expected; the possibility that the historical seasonality of
our business may change; the possibility that significant customers
may experience extreme, severe economic difficulty; the possibility
that the integration of acquired businesses may not be as
successful as planned; 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
sales cycles may lengthen; the possibility that we may not be able
to attract and retain qualified technical and leadership
associates, or that we may lose key associates to other
organizations; the possibility that we won�t be able to properly
motivate our sales force or other associates; the possibility that
we won�t be able to achieve cost reductions and avoid unanticipated
costs; the possibility that we won�t be able to continue to receive
credit upon satisfactory terms and conditions; the possibility that
competent, competitive products, technologies or services will be
introduced into the marketplace by other companies; the possibility
that we may be subjected to pricing pressure due to market
conditions and/or competitive 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 changes in accounting pronouncements
may occur and may impact these projections; the possibility that we
won�t be able to protect proprietary information and technology or
to obtain necessary licenses on commercially reasonable terms; the
possibility that we may encounter difficulties when entering new
markets or industries; the possibility that there will be changes
in the legislative, accounting, regulatory and consumer
environments affecting our business, including but not limited to
litigation, legislation, regulations and customs relating to our
ability to collect, manage, aggregate and use data; the possibility
that data suppliers might withdraw data from us, leading to our
inability to provide certain products and services; the possibility
that we may enter into short-term contracts which would affect the
predictability of our revenues; the possibility that the amount of
ad hoc, volume-based and project work will not be as expected; the
possibility that we may experience a loss of data center capacity
or interruption of telecommunication links or power sources; the
possibility that we may experience failures or breaches of our
network and data security systems, leading to potential adverse
publicity, negative customer reaction, or liability to third
parties; the possibility that postal rates may increase, thereby
leading to reduced volumes of business; the possibility that our
clients may cancel or modify their agreements 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 we experience processing errors which
result in credits to customers, re-performance of services or
payment of damages to customers; the possibility that the services
of the United States Postal Service, their global counterparts and
other delivery systems may be disrupted; and the possibility that
we may be affected by other competitive factors. 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. Other factors are detailed from time to time
in our periodic reports and registration statements filed with the
United States Securities and Exchange Commission. We believe that
we have the product and technology offerings, facilities,
associates and competitive and financial resources for continued
business success, but future revenues, costs, margins and profits
are all influenced by a number of factors, including those
discussed above, all of which are inherently difficult to forecast.
We undertake no obligation to update the information contained in
this press release or any other forward-looking statement. Acxiom
is a registered trademark of Acxiom Corporation. � � � � ACXIOM
CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Dollars in thousands, except earnings per share) � �
For the Three Months Ended December 31, $ % 2007 2006 Variance �
Variance � Revenue: Services 262,697 265,798 (3,101 ) (1.2 %) Data
87,572 � 87,043 � 529 0.6 % Total revenue 350,269 352,841 (2,572 )
(0.7 %) � Operating costs and expenses: Cost of revenue Services
201,648 199,704 1,944 1.0 % Data 60,551 � 53,004 � 7,547 14.2 %
Total cost of revenue 262,199 252,708 9,491 3.8 % � Services gross
margin 23.2 % 24.9 % Data gross margin 30.9 % 39.1 % Total gross
margin 25.1 % 28.4 % � Selling, general and administrative 54,669
49,065 5,604 11.4 % Gains, losses and other items, net (63,489 )
(225 ) (63,264 ) 100.0 % � Total operating costs and expenses
253,379 � 301,548 � (48,169 ) (16.0 %) � Income from operations
96,890 � 51,293 � 45,597 88.9 % � Other income (expense): Interest
expense (12,797 ) (14,911 ) 2,114 (14.2 %) Other, net 1,394 � 1,157
� 237 20.5 % � Total other income (expense) (11,403 ) (13,754 )
2,351 (17.1 %) � Earnings before income taxes 85,487 37,539 47,948
127.7 % � Income taxes 30,791 � 12,594 � 18,197 144.5 % � Net
earnings 54,696 � 24,945 � 29,751 119.3 % � Earnings per share: �
Basic 0.69 � 0.32 � 0.37 115.6 % � Diluted 0.69 � 0.31 � 0.38 122.6
% � � � � ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except
earnings per share) � � For the Nine Months Ended December 31, $ %
2007 2006 Variance � Variance � Revenue: Services 795,085 793,789
1,296 0.2 % Data 244,378 � 244,076 � 302 0.1 % Total revenue
1,039,463 1,037,865 1,598 0.2 % � Operating costs and expenses:
Cost of revenue Services 622,431 597,161 25,270 4.2 % Data 171,434
� 153,638 � 17,796 11.6 % Total cost of revenue 793,865 750,799
43,066 5.7 % � Services gross margin 21.7 % 24.8 % Data gross
margin 29.8 % 37.1 % Total gross margin 23.6 % 27.7 % � Selling,
general and administrative 162,380 157,818 4,562 2.9 % Gains,
losses and other items, net (38,167 ) (225 ) (37,942 ) 100.0 % �
Total operating costs and expenses 918,078 � 908,392 � 9,686 1.1 %
� Income from operations 121,385 � 129,473 � (8,088 ) (6.2 %) �
Other income (expense): Interest expense (40,214 ) (31,630 ) (8,584
) 27.1 % Other, net 2,908 � 4,489 � (1,581 ) (35.2 %) � Total other
income (expense) (37,306 ) (27,141 ) (10,165 ) 37.5 % � Earnings
before income taxes 84,079 102,332 (18,253 ) (17.8 %) � Income
taxes 30,362 � 37,863 � (7,501 ) (19.8 %) � Net earnings 53,717 �
64,469 � (10,752 ) (16.7 %) � Earnings per share: � Basic 0.67 �
0.77 � (0.10 ) (13.0 %) � Diluted 0.66 � 0.75 � (0.09 ) (12.0 %) �
� � � ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited) (Dollars in thousands, except earnings
per share) � � For the Three Months Ended � December 31, September
30, $ % 2007 2007 Variance � Variance � Revenue: Services 262,697
267,653 (4,956 ) (1.9 %) Data 87,572 � 83,373 � 4,199 5.0 % Total
revenue 350,269 351,026 (757 ) (0.2 %) � Operating costs and
expenses: Cost of revenue Services 201,648 208,697 (7,049 ) (3.4 %)
Data 60,551 � 56,998 � 3,553 6.2 % Total cost of revenue 262,199
265,695 (3,496 ) (1.3 %) � Services gross margin 23.2 % 22.0 % Data
gross margin 30.9 % 31.6 % Total gross margin 25.1 % 24.3 % �
Selling, general and administrative 54,669 55,042 (373 ) (0.7 %)
Gains, losses and other items, net (63,489 ) 9,932 � (73,421 )
(739.2 %) � Total operating costs and expenses 253,379 � 330,669 �
(77,290 ) (23.4 %) � Income from operations 96,890 � 20,357 �
76,533 376.0 % � Other income (expense): Interest expense (12,797 )
(13,842 ) 1,045 (7.5 %) Other, net 1,394 � 1,331 � 63 4.7 % � Total
other income (expense) (11,403 ) (12,511 ) 1,108 (8.9 %) � Earnings
before income taxes 85,487 7,846 77,641 989.6 % � Income taxes
30,791 � (2,696 ) 33,487 (1242.1 %) � Net earnings 54,696 � 10,542
� 44,154 418.8 % � Earnings per share: � Basic 0.69 � 0.13 � 0.56
430.8 % � Diluted 0.69 � 0.13 � 0.56 430.8 % � � � 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, September 30, 2007
2006 2007 � Basic earnings per share: � Numerator - net earnings
54,696 24,945 10,542 � Denominator - weighted-average shares
outstanding 79,418 77,717 80,646 � Basic earnings per share 0.69
0.32 0.13 � Diluted earnings per share: � Numerator - net earnings
54,696 24,945 10,542 � Denominator - weighted-average shares
outstanding 79,418 77,717 80,646 � Dilutive effect of common stock
options, warrants and restricted stock 253 2,238 1,839 � 79,671
79,955 82,485 � Diluted earnings per share 0.69 0.31 0.13 � �
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, 2007 2006 � Basic
earnings per share: � Numerator - net earnings 53,717 64,469 �
Denominator - weighted-average shares outstanding 79,802 83,957 �
Basic earnings per share 0.67 0.77 � Diluted earnings per share: �
Numerator - net earnings 53,717 64,469 � Denominator -
weighted-average shares outstanding 79,802 83,957 � Dilutive effect
of common stock options, warrants and restricted stock 1,380 2,237
� 81,182 86,194 � Diluted earnings per share 0.66 0.75 � � ACXIOM
CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited)
(Dollars in thousands) � � For the Three Months Ended � December
31, December 31, Revenue: 2007 2006 � Information services 184,504
187,673 Information products 111,225 106,002 Infrastructure
management 112,916 117,966 Eliminations (58,376 ) (58,800 ) � Total
revenue 350,269 � 352,841 � � � Income from operations: �
Information services 25,626 37,954 Information products 8,216 6,834
Infrastructure management 11,138 13,666 Corporate & other
51,910 � (7,161 ) � Total income from operations 96,890 � 51,293 �
� Margin: � Information services 13.9 % 20.2 % Information products
7.4 % 6.4 % Infrastructure management 9.9 % 11.6 % � Total margin
27.7 % 14.5 % � � ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY
SEGMENT (Unaudited) (Dollars in thousands) � � For the Nine Months
Ended � December 31, December 31, Revenue: 2007 2006 � Information
services 556,713 543,501 Information products 316,127 305,871
Infrastructure management 339,319 357,740 Eliminations (172,696 )
(169,247 ) � Total revenue 1,039,463 � 1,037,865 � � � Income from
operations: � Information services 78,315 102,259 Information
products 10,654 9,925 Infrastructure management 36,016 39,523
Corporate & other (3,600 ) (22,234 ) � Total income from
operations 121,385 � 129,473 � � Margin: � Information services
14.1 % 18.8 % Information products 3.4 % 3.2 % Infrastructure
management 10.6 % 11.0 % � Total margin 11.7 % 12.5 % � � � � � � �
ACXIOM CORPORATION AND SUBSIDIARIES DATA REVENUE AND COST OF DATA
SUPPLEMENTAL SCHEDULE (Unaudited) (Dollars in thousands) � � For
the Three Months Ended � December 31, December 31, $ % September
30, $ % 2007 2006 Variance � Variance 2007 Variance � Variance �
Data 67,095 68,520 (1,425 ) (2.1 %) 63,534 3,561 5.6 % Passthrough
data 20,477 � 18,523 � 1,954 10.5 % 19,839 � 638 3.2 % � Total data
revenue 87,572 � 87,043 � 529 0.6 % 83,373 � 4,199 5.0 % � � Cost
of data revenue: Data 40,074 34,481 5,593 16.2 % 37,159 2,915 7.8 %
Passthrough data 20,477 � 18,523 � 1,954 10.5 % 19,839 � 638 3.2 %
� Total cost of data 60,551 � 53,004 � 7,547 14.2 % 56,998 � 3,553
6.2 % � Margin: � Data 40.3 % 49.7 % 41.5 % Passthrough data 0.0 %
0.0 % 0.0 % Total data 30.9 % 39.1 % 31.6 % � � � � ACXIOM
CORPORATION AND SUBSIDIARIES DATA REVENUE AND COST OF DATA
SUPPLEMENTAL SCHEDULE (Unaudited) (Dollars in thousands) � � For
the Nine Months Ended � December 31, December 31, $ % 2007 2006
Variance � Variance � Data 184,470 185,704 (1,234 ) (0.7 %)
Passthrough data 59,908 � 58,372 � 1,536 2.6 % � Total data revenue
244,378 � 244,076 � 302 0.1 % � � Cost of data revenue: Data
111,526 95,266 16,260 17.1 % Passthrough data 59,908 � 58,372 �
1,536 2.6 % � Total cost of data 171,434 � 153,638 � 17,796 11.6 %
� Margin: � Data 39.5 % 48.7 % Passthrough data 0.0 % 0.0 % Total
data 29.8 % 37.1 % � � � � ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in
thousands) � December 31, March 31, $ % 2007 2007 Variance �
Variance Assets Current assets: Cash and cash equivalents 66,265
37,776 28,489 75.4 % Trade accounts receivable, net 286,627 285,850
777 0.3 % Refundable income taxes - 7,657 (7,657 ) (100.0 %)
Deferred income taxes 22,211 22,341 (130 ) (0.6 %) Other current
assets 46,017 � 59,252 � (13,235 ) (22.3 %) � Total current assets
421,120 � 412,876 � 8,244 2.0 % � Property and equipment 772,176
733,175 39,001 5.3 % Less - accumulated depreciation and
amortization 493,394 � 420,883 � 72,511 17.2 % � Property and
equipment, net 278,782 � 312,292 � (33,510 ) (10.7 %) � Software,
net of accumulated amortization 60,836 44,289 16,547 37.4 %
Goodwill 518,608 522,046 (3,438 ) (0.7 %) Purchased software
licenses, net of accumulated amortization 132,344 151,326 (18,982 )
(12.5 %) Unbilled and notes receivable, excluding current portions
6,584 16,742 (10,158 ) (60.7 %) Deferred costs, net 130,958 137,684
(6,726 ) (4.9 %) Data acquisition costs 50,552 35,398 15,154 42.8 %
Other assets, net 22,555 � 23,251 � (696 ) (3.0 %) � 1,622,339 �
1,655,904 � (33,565 ) (2.0 %) � Liabilities and Stockholders'
Equity Current liabilities: Current installments of long-term
obligations 85,450 106,921 (21,471 ) (20.1 %) Trade accounts
payable 46,631 54,808 (8,177 ) (14.9 %) Accrued payroll and related
expenses 28,478 33,663 (5,185 ) (15.4 %) Other accrued expenses
92,036 79,078 12,958 16.4 % Deferred revenue 70,904 113,318 (42,414
) (37.4 %) Income taxes 7,426 � - � 7,426 100.0 % � Total current
liabilities 330,925 � 387,788 � (56,863 ) (14.7 %) � Long-term
obligations: Long-term debt and capital leases, net of current
installments 594,627 631,184 (36,557 ) (5.8 %) Software and data
licenses, net of current installments 10,631 � 17,695 � (7,064 )
(39.9 %) � Total long-term obligations 605,258 � 648,879 � (43,621
) (6.7 %) � � Deferred income taxes 98,340 97,926 414 0.4 % �
Commitments and contingencies � Stockholders' equity: Common stock
11,396 11,145 251 2.3 % Additional paid-in capital 774,527 718,336
56,191 7.8 % Retained earnings 511,711 462,844 48,867 10.6 %
Accumulated other comprehensive income 27,777 17,526 10,251 58.5 %
Treasury stock, at cost (737,595 ) (688,540 ) (49,055 ) 7.1 % �
Total stockholders' equity 587,816 � 521,311 � 66,505 12.8 % �
1,622,339 � 1,655,904 � (33,565 ) (2.0 %) � � ACXIOM CORPORATION
AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Dollars in thousands) � For the Three Months Ended
December 31, 2007 � 2006 � Cash flows from operating activities:
Net earnings 54,696 24,945 Non-cash operating activities:
Depreciation and amortization 57,424 54,396 Loss (gain) on disposal
or impairment of assets, net (2,643 ) 187 Deferred income taxes
2,091 (553 ) Non-cash stock compensation expense 2,648 1,555
Changes in operating assets and liabilities: Accounts receivable
8,564 (8,933 ) Other assets 17,777 (769 ) Accounts payable and
other liabilities 3,296 979 Deferred revenue (13,759 ) (9,148 ) Net
cash provided by operating activities 130,094 � 62,659 � Cash flows
from investing activities: Disposition of operations 14,250 -
Capitalized software (8,507 ) (6,798 ) Capital expenditures (6,891
) (2,518 ) Deferral of costs (17,460 ) (16,149 ) Payments received
from investments 1,804 - Net cash paid in acquisitions (3,720 )
(14,400 ) Net cash used by investing activities (20,524 ) (39,865 )
Cash flows from financing activities: Proceeds from debt - (513 )
Payments of debt (49,380 ) (25,817 ) Dividends paid (4,850 ) (4,663
) Sale of common stock 2,711 8,896 Acquisition of treasury stock
(45,565 ) (6,001 ) Tax benefit of stock options exercised 25 �
1,237 � Net cash used by financing activities (97,059 ) (26,861 )
Effect of exchange rate changes on cash (77 ) 249 � � Net increase
(decrease) in cash and cash equivalents 12,434 (3,818 ) Cash and
cash equivalents at beginning of period 53,831 � 91,832 � Cash and
cash equivalents at end of period 66,265 � 88,014 � � Supplemental
cash flow information: Cash paid during the period for: Interest
12,270 14,813 Income taxes 4,743 8,196 Payments on capital leases
and installment payment arrangements 17,542 16,700 Payments on
software and data license liabilities 6,226 6,000 Other debt
payments, excluding line of credit 5,612 3,117 Prepayment of debt
20,000 - Noncash investing and financing activities: Acquisition of
property and equipment under capital lease and installment payment
arrangements 5,004 10,427 Disposal of asset under financing (5,304
) - Construction and other financing 3,995 4,511 Assets acquired
under data obligation 15,306 - � � ACXIOM CORPORATION AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Dollars in thousands) � For the Nine Months Ended
December 31, 2007 � 2006 � Cash flows from operating activities:
Net earnings 53,717 64,469 Non-cash operating activities:
Depreciation and amortization 177,345 170,379 Loss (gain) on
disposal or impairment of assets, net (2,717 ) (1,483 ) Deferred
income taxes 505 (975 ) Non-cash stock compensation expense 5,678
2,699 Changes in operating assets and liabilities: Accounts
receivable (1,553 ) (15,768 ) Other assets 19,163 (2,159 ) Accounts
payable and other liabilities 4 (7,844 ) Deferred revenue (42,272 )
(25,900 ) Net cash provided by operating activities 209,870 �
183,418 � Cash flows from investing activities: Disposition of
operations 14,250 - Capitalized software (26,774 ) (19,443 )
Capital expenditures (15,049 ) (5,995 ) Cash collected from the
sale and license of software - 10,000 Deferral of costs (43,219 )
(49,595 ) Payments received from investments 3,603 2,708 Net cash
paid in acquisitions (9,191 ) (14,400 ) Net cash used by investing
activities (76,380 ) (76,725 ) Cash flows from financing
activities: Proceeds from debt 2,127 649,756 Payments of debt
(108,009 ) (393,742 ) Dividends paid (4,850 ) (13,471 ) Sale of
common stock 44,812 25,801 Acquisition of treasury stock (45,565 )
(299,301 ) Tax benefit of stock options exercised 5,993 � 4,081 �
Net cash used by financing activities (105,492 ) (26,876 ) Effect
of exchange rate changes on cash 491 � 492 � � Net increase in cash
and cash equivalents 28,489 80,309 Cash and cash equivalents at
beginning of period 37,776 � 7,705 � Cash and cash equivalents at
end of period 66,265 � 88,014 � � Supplemental cash flow
information: Cash paid during the period for: Interest 40,008
31,375 Income taxes 4,954 31,027 Payments on capital leases and
installment payment arrangements 54,330 57,556 Payments on software
and data license liabilities 19,998 21,151 Other debt payments,
excluding line of credit 11,554 6,632 Prepayment of debt 20,000 -
Revolving credit payments 2,127 308,403 Noncash investing and
financing activities: Acquisition of property and equipment under
capital lease and installment payment arrangements 20,724 44,454
Disposal of asset under financing (5,304 ) - Construction and other
financing 9,346 18,167 Software licenses and maintenance acquired
under software obligation 493 15,266 Asset acquired under data
obligation 15,306 - Note payable issued in acquisition 300 - � � �
� � � � � � ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF FREE
CASH FLOW AVAILABLE TO EQUITY AND RECONCILIATION TO OPERATING CASH
FLOW (Unaudited) (Dollars in thousands) � � � � � � � � � � � � � �
� � 06/30/06 � 09/30/06 � 12/31/06 � 03/31/07 � YTD FY2007 06/30/07
� 09/30/07 � 12/31/07 � YTD FY2008 � Net cash provided by operating
activities 56,350 64,409 62,659 76,534 259,952 39,132 40,644
130,094 209,870 � Plus: Payments received from investments 783
1,925 - 50 2,758 - 1,799 1,804 3,603 Disposition of operations - -
- - - - - 14,250 14,250 � Less: Capitalized software (5,719 )
(6,926 ) (6,798 ) (8,000 ) (27,443 ) (8,447 ) (9,820 ) (8,507 )
(26,774 ) Capital expenditures (217 ) (3,260 ) (2,518 ) (8,230 )
(14,225 ) (2,867 ) (5,291 ) (6,891 ) (15,049 ) Deferral of costs
(16,887 ) (16,559 ) (16,149 ) (17,092 ) (66,687 ) (14,129 ) (11,630
) (17,460 ) (43,219 ) Payments on capital leases and installment
payment arrangements (18,905 ) (21,951 ) (16,700 ) (18,579 )
(76,135 ) (19,137 ) (17,651 ) (17,542 ) (54,330 ) Payments on
software and data license liabilities (7,847 ) (7,304 ) (6,000 )
(5,746 ) (26,897 ) (6,493 ) (7,279 ) (6,226 ) (19,998 ) Other
required debt payments (1,711 ) � (1,804 ) � (3,117 ) � (3,603 ) �
(10,235 ) (3,526 ) � (2,416 ) � (5,612 ) � (11,554 ) � Subtotal
5,847 8,530 11,377 15,334 41,088 (15,467 ) (11,644 ) 83,910 56,799
� Plus: Tax benefit of stock options and warrants 1,079 � � 1,765 �
� 1,237 � � 61 � � 4,142 � 5,624 � � 344 � � 25 � � 5,993 � �
Subtotal 6,926 10,295 12,614 15,395 45,230 (9,843 ) (11,300 )
83,935 62,792 � Plus: Cash collected from sale of software 5,000 �
� 5,000 � � - � � - � � 10,000 � - � � - � � - � � - � � Total
11,926 � � 15,295 � � 12,614 � � 15,395 � � 55,230 � (9,843 ) �
(11,300 ) � 83,935 � � 62,792 �
Acxiom (NASDAQ:ACXM)
Historical Stock Chart
From Sep 2024 to Oct 2024
Acxiom (NASDAQ:ACXM)
Historical Stock Chart
From Oct 2023 to Oct 2024