Acxiom® Corporation (Nasdaq: ACXM), a recognized leader in
marketing services and technology, today announced financial
results for the fourth quarter and fiscal year ended March 31,
2011. Acxiom will hold a conference call at 10:00 a.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. The company will reference presentation slides that
will be available on the website prior to the call.
Jerry Gramaglia, Acxiom’s interim chief executive officer, said,
“Our results for the fourth quarter and for the entire fiscal 2011
year were in line with our expectations expressed in our March 30th
announcement. In the fourth quarter and continuing into fiscal year
2012, Acxiom’s focus is on delivering exceptional value to the
world’s top marketers. In turn, we continue to be rewarded with
long term renewals and significantly expanded business
relationships.”
Fourth Quarter 2011 Highlights:
- Revenue increased by 3.6% in the
current quarter ended March 31, 2011 to $298.8 million, compared to
$288.3 million for the quarter ended March 31, 2010.
- Loss from operations of $53.0
million in the current-year fourth quarter compared to income from
operations of $35.2 million in the fourth quarter of the prior
year. Excluding the impact of unusual items, income from operations
in the current quarter would be $34.9 million, a 4.3% increase over
the prior-year quarter.
- Loss per diluted share
attributable to Acxiom stockholders of $0.83 in the current
quarter, compared to earnings per share of $0.21 in the fourth
quarter of fiscal 2010. Excluding the impact of unusual items in
both periods, earnings per diluted share attributable to Acxiom
stockholders would be $0.21 in the current period, a 10.5% increase
over $0.19 the prior-year quarter.
- Operating cash flow of $42.0
million, compared to $87.9 million in the fourth quarter a year
ago.
- Free cash flow available to
equity of $14.7 million, compared to $43.1 million in the
fourth quarter a year ago. 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 news
release.
A schedule is attached to this release outlining the impact of
the unusual items on the current and prior-year fourth quarter and
current and prior-year full year results.
Goodwill/Asset Impairment and Other Charges
Fourth-quarter loss per diluted share attributable to Acxiom
stockholders of $0.83 includes $89.4 million or the equivalent of
$1.04 per share in unusual expenses. The major components of the
unusual expenses are:
- Goodwill/Asset Impairment of $79.7
million. $15.4 million related to European Services, $57.1 million
related to European Products and $7.2 million related to Middle
East, North Africa;
- Disposal of operations of $3.3 million
related to the disposal of the Netherlands and Portugal operations,
of which $1.1 million represents cash payments to be made in future
periods; and
- Other charges of $6.5 million including
$5.5 million to be paid in future periods.
Operational Highlights:
- Information Services: Revenue
for the quarter ended March 31, 2011 was $224.6 million, up 1.4%,
compared to $221.6 million for the quarter ended March 31, 2010.
Income from operations for the current fourth quarter was $21.2
million, down 23.4% compared to $27.6 million in the prior-year
fourth quarter.
- Information Products: Revenue
for the quarter increased 11.2% to $74.2 million, compared with
$66.8 million in the fourth quarter a year ago. Income from
operations for the quarter was $13.7 million, compared to $5.8
million in the fourth quarter of the previous year.
Fiscal Year 2011 Highlights:
- Revenue increased by 5.5% in
fiscal 2011 to $1.160 billion, compared to $1.099 billion in fiscal
2010.
- Income from operations of $30.9
million in the current year compared to income from operations of
$98.8 million in the prior year. Excluding the impact of unusual
items, income from operations in the current year would be $115.2
million compared to income from operations of $97.9 million in the
prior year, an increase of 17.7%.
- Loss per diluted share
attributable to Acxiom stockholders of $0.29 in the current year,
compared to income per share of $0.56 in fiscal 2010. Excluding the
impact of unusual items in both years, earnings per diluted share
attributable to Acxiom stockholders would be $0.68 in the current
year, compared to $0.55 in the prior year, an increase of
23.6%.
- Operating cash flow of $166.2
million, compared to $239.3 million in the prior year.
- Free cash flow available to
equity of $53.2 million, compared to $108.3 million in fiscal
2010. 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 news release.
Web Link to Financials
You may link to http://www.acxiom.com/FY11_Q4_Financials for the
detailed financial information we typically attach to our earnings
releases.
About Acxiom
Acxiom is a recognized leader in marketing services and
technology that enable marketers to successfully manage audiences,
personalize consumer experiences and create profitable customer
relationships. Our superior industry-focused, consultative approach
combines consumer data and analytics, databases, data integration
and consulting solutions for personalized, multichannel marketing
strategies. Acxiom leverages over 40 years of experience in data
management to deliver high-performance, highly secure, reliable
information management services. Founded in 1969, Acxiom is
headquartered in Little Rock, Arkansas, USA, and serves clients
around the world from locations in the United States, Europe,
Asia-Pacific, the Middle East and South America. For more
information about Acxiom, visit Acxiom.com.
Forward Looking Statements
This release and today’s conference call may contain
forward-looking statements including, without limitation,
statements regarding future cash outlays included in unusual
expenses recorded in the fourth quarter of fiscal 2011, an
improvement in the economic outlook, and the possibility of
continued future growth. Such forward-looking statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially. The following are factors, among
others, that could cause actual results to differ materially from
these forward-looking statements: the possibility that certain
contracts may not generate the anticipated revenue or profitability
or may not be closed within the anticipated time frames; the
possibility that significant customers may experience extreme,
severe economic difficulty or otherwise reduce the amount of
business they do with us; the possibility that we will not
successfully complete customer contract requirements on time or
meet the service levels specified in the contracts, which may
result in contract penalties or lost revenue; the possibility that
data suppliers might withdraw data from us, leading to our
inability to provide certain products and services to our clients,
which could lead to decreases in our operating results; the
possibility that we may not be able to attract, retain or motivate
qualified technical, sales and leadership associates, or that we
may lose key associates; the possibility that we may be unable to
quickly and seamlessly integrate a new chief executive officer and
chief financial officer; the possibility that we will not be able
to continue to receive credit upon satisfactory terms and
conditions; the possibility that negative changes in economic
conditions in general or other conditions might lead to a reduction
in demand for our products and services; the possibility that there
will be changes in consumer or business information industries and
markets that negatively impact the company; the possibility that
the historical seasonality of our business may change; the
possibility that we will not be able to achieve cost reductions and
avoid unanticipated costs; the possibility that the fair value of
certain of our assets may not be equal to the carrying value of
those assets now or in future time periods; the possibility that
changes in accounting pronouncements may occur and may impact these
forward-looking statements; the possibility that we may encounter
difficulties when entering new markets or industries; the
possibility that we could experience loss of data center capacity
or interruption of telecommunication links; 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
Reports on Form 10-K for the year ended March 31, 2010, which was
filed with the Securities and Exchange Commission on May 26,
2010.
With respect to the provision of products or services outside
our primary base of operations in the United States, all of the
above factors apply, along with the difficulty of doing business in
numerous sovereign jurisdictions due to differences in scale,
competition, culture, laws and regulations.
We undertake no obligation to update the information contained
in this press release or any other forward-looking statement.
Acxiom is a registered trademark of Acxiom Corporation.
ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) (Dollars in thousands, except earnings per
share) For the Three Months
Ended March 31, $ % 2011 2010 Variance Variance
Revenue: Services 224,556 221,553 3,003 1.4 % Products 74,240
66,789 7,451 11.2 % Total revenue 298,796 288,342
10,454 3.6 % Operating costs and expenses: Cost of revenue
Services 176,065 166,085 (9,980 ) (6.0 %) Products 47,551
45,835 (1,716 ) (3.7 %) Total cost of revenue 223,616
211,920 (11,696 ) (5.5 %) Services gross margin 21.6 % 25.0
% Products gross margin 35.9 % 31.4 % Total gross margin 25.2 %
26.5 % Selling, general and administrative 40,324 43,013
2,689 6.3 % Impairment of goodwill and other intangibles 79,674 -
Gains, losses and other items, net 8,219 (1,802 ) (10,021 )
(556.1 %) Total operating costs and expenses 351,833
253,131 (98,702 ) (39.0 %) Income (loss) from
operations (53,037 ) 35,211 (88,248 ) (250.6 %) Other
income (expense): Interest expense (5,659 ) (5,865 ) 206 3.5 %
Other, net (827 ) 122 (949 ) (777.9 %) Total other
income (expense) (6,486 ) (5,743 ) (743 ) (12.9 %) Earnings
(loss) before income taxes (59,523 ) 29,468 (88,991 ) (302.0 %)
Income taxes 11,466 13,106 1,640 12.5 %
Net earnings (loss) (70,989 ) 16,362 (87,351 ) (533.9 %)
Less: Net loss attributable to noncontrolling interest (3,933 )
(286 ) (3,647 ) - Net earnings (loss) attributable to Acxiom
(67,056 ) 16,648 (83,704 ) (502.8 %) Earnings (loss)
per share: Basic (0.88 ) 0.21 (1.09 ) (519.0 %)
Diluted (0.88 ) 0.20 (1.08 ) (540.0 %)
Earnings (loss) per share attributable to Acxiom stockholders:
Basic (0.83 ) 0.21 (1.04 ) (495.2 %) Diluted
(0.83 ) 0.21 (1.04 ) (495.2 %) ACXIOM
CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Dollars in thousands, except earnings per share)
For the Twelve Months Ended
March 31, $ % 2011 2010 Variance Variance Revenue:
Services 893,594 849,432 44,162 5.2 % Products 266,376
249,803 16,573 6.6 % Total revenue 1,159,970 1,099,235
60,735 5.5 % Operating costs and expenses: Cost of revenue
Services 694,988 654,659 (40,329 ) (6.2 %) Products 189,900
184,610 (5,290 ) (2.9 %) Total cost of revenue 884,888
839,269 (45,619 ) (5.4 %) Services gross margin 22.2 % 22.9
% Products gross margin 28.7 % 26.1 % Total gross margin 23.7 %
23.6 % Selling, general and administrative 159,884 162,097
2,213 1.4 % Impairment of goodwill and other intangibles 79,674 -
Gains, losses and other items, net 4,600 (944 ) (5,544 )
(587.3 %) Total operating costs and expenses 1,129,046
1,000,422 (128,624 ) (12.9 %) Income from
operations 30,924 98,813 (67,889 ) (68.7 %)
Other income (expense): Interest expense (23,823 ) (22,480 ) (1,343
) (6.0 %) Other, net (1,466 ) 425 (1,891 ) (444.9 %)
Total other income (expense) (25,289 ) (22,055 ) (3,234 ) (14.7 %)
Earnings before income taxes 5,635 76,758 (71,123 ) (92.7 %)
Income taxes 34,077 32,599 (1,478 ) (4.5 %)
Net earnings (loss) (28,442 ) 44,159 (72,601 ) (164.4 %)
Less: Net loss attributable to noncontrolling interest
(5,295 ) (390 ) (4,905 ) - Net earnings (loss) attributable
to Acxiom (23,147 ) 44,549 (67,696 ) (152.0 %)
Earnings (loss) per share: Basic (0.36 ) 0.56 (0.92 )
(164.3 %) Diluted (0.36 ) 0.55 (0.91 ) (165.5 %)
Earnings (loss) per share attributable to Acxiom
stockholders: Basic (0.29 ) 0.56 (0.85 ) (151.8 %)
Diluted (0.29 ) 0.56 (0.85 ) (151.8 %)
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, 2011
2010 2011 2010 Earnings (loss) before income taxes (59,523 )
29,468 5,635 76,758 Unusual items 89,449 (1,802 )
85,830 (944 ) Earnings before income taxes and
unusual items 29,926 27,666 91,465 75,814
Earnings (loss) before income taxes (59,523 )
29,468 5,635 76,758 Income taxes 11,466 13,106
34,077 32,599 Net earnings (loss) (70,989 )
16,362 (28,442 ) 44,159 Less: Net earnings
attributable to noncontrolling interest (3,933 ) (286 ) (5,295 )
(390 ) Net earnings (loss) attributable to Acxiom (67,056 )
16,648 (23,147 ) 44,549 Earnings (loss) per
share attributable to Acxiom stockholders: Basic (0.83 )
0.21 (0.29 ) 0.56 Diluted (0.83 ) 0.21
(0.29 ) 0.56 Unusual items: Disposal of
Netherlands and Portugal operations 3,340 - 3,340 - Restructuring
costs 5,503 - 5,503 - Goodwill and other intangibles impairment
79,674 - 79,674 - Earnout adjustments (624 ) - (1,058 ) -
Investment impairment 1,556 - 1,556 - Adjustments to previous
reserves - (1,802 ) (3,185 ) (944 ) Total unusual
items 89,449 (1,802 ) 85,830 (944 )
Earnings before income taxes and excluding
unusual items
29,926 27,666 91,465 75,814 Income taxes 13,260
12,314 37,848 32,141 Non-GAAP net
earnings 16,666 15,352 53,617 43,673
Less: Net earnings attributable to noncontrolling interest
(827 ) (286 ) (2,189 ) (390 ) Non-GAAP Net earnings
attributable to Acxiom 17,493 15,638 55,806
44,063 Non-GAAP earnings per share attributable to
Acxiom stockholders: Basic 0.22 0.20 0.70
0.56 Diluted 0.21 0.19 0.68
0.55 Diluted weighted average shares 82,224
81,765 ACXIOM CORPORATION AND
SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM
OPERATIONS (Unaudited) (Dollars in thousands, except earnings per
share) For the
Three Months Ended For the Twelve Months Ended March 31, March 31,
2011 2010 2011 2010 Income (loss) from operations (53,037 )
35,211 30,924 98,813 Unusual items 87,893 (1,802 )
84,274 (944 ) Income from operations before unusual
items 34,856 33,409 115,198 97,869
Unusual items: Disposal of Netherlands
and Portugal operations 3,340 - 3,340 - Restructuring costs 5,503 -
5,503 - Goodwill and other intangibles impairment 79,674 - 79,674 -
Earnout adjustments (624 ) - (1,058 ) - Adjustments to previous
reserves - (1,802 ) (3,185 ) (944 ) Total unusual
items 87,893 (1,802 ) 84,274 (944 )
ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS (LOSS)
PER SHARE (Unaudited) (In thousands, except earnings per share)
For the Three Months Ended
March 31, March 31, 2011 2010 Basic earnings (loss)
per share: Numerator - net earnings (loss) (70,989 ) 16,362
Denominator - weighted-average shares outstanding 80,423
79,245 Basic earnings (loss) per share (0.88 ) 0.21
Diluted earnings (loss) per share: Numerator - net
earnings (loss) (70,989 ) 16,362 Denominator -
weighted-average shares outstanding 80,423 79,245 Dilutive
effect of common stock options, warrants and restricted stock -
1,395 80,423 80,640 Diluted earnings
(loss) per share (0.88 ) 0.20
Basic earnings (loss) per share attributable to Acxiom
stockholders: Numerator - net earnings (loss) attributable
to Acxiom (67,056 ) 16,648 Denominator - weighted-average
shares outstanding 80,423 79,245 Basic earnings
(loss) per share attributable to Acxiom stockholders (0.83 ) 0.21
Diluted earnings (loss) per share attributable to Acxiom
stockholders: Numerator - net earnings (loss) attributable
to Acxiom (67,056 ) 16,648 Denominator - weighted-average
shares outstanding 80,423 79,245 Dilutive effect of common
stock options, warrants, and restricted stock - 1,395
80,423 80,640 Diluted earnings (loss) per share
attributable to Acxiom stockholders (0.83 ) 0.21
ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS (LOSS)
PER SHARE (Unaudited) (In thousands, except earnings per share)
For the Twelve Months Ended
March 31, March 31, 2011 2010 Basic earnings (loss)
per share: Numerator - net earnings (loss) (28,442 ) 44,159
Denominator - weighted-average shares outstanding 80,111
78,974 Basic earnings (loss) per share (0.36 ) 0.56
Diluted earnings (loss) per share: Numerator - net
earnings (loss) (28,442 ) 44,159 Denominator -
weighted-average shares outstanding 80,111 78,974 Dilutive
effect of common stock options, warrants and restricted stock -
751 80,111 79,725 Diluted earnings
(loss) per share (0.36 ) 0.55
Basic earnings (loss) per share attributable to Acxiom
stockholders: Numerator - net earnings (loss) attributable
to Acxiom (23,147 ) 44,549 Denominator - weighted-average
shares outstanding 80,111 78,974 Basic earnings
(loss) per share attributable to Acxiom stockholders (0.29 ) 0.56
Diluted earnings (loss) per share attributable to Acxiom
stockholders: Numerator - net earnings (loss) attributable
to Acxiom (23,147 ) 44,549 Denominator - weighted-average
shares outstanding 80,111 78,974 Dilutive effect of common
stock options, warrants, and restricted stock - 751
80,111 79,725 Diluted earnings (loss) per share
attributable to Acxiom stockholders (0.29 ) 0.56
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited)
(Dollars in thousands) For the Three Months
Ended March 31, March 31,
Revenue: 2011 2010
Information services 224,556 221,553 Information products 74,240
66,789 Total revenue 298,796 288,342
Income from operations:
Information services 21,181 27,639 Information products 13,675
5,770 Other (87,893 ) 1,802 Total income (loss) from
operations (53,037 ) 35,211
Margin:
Information services 9.4 % 12.5 % Information products 18.4 % 8.6 %
Total margin -17.8 % 12.2 % ACXIOM CORPORATION
AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in
thousands) For the Twelve Months Ended
March 31, March 31,
Revenue: 2011 2010
Information services 893,594 849,432 Information products 266,376
249,803 Total revenue 1,159,970
1,099,235
Income from operations:
Information services 91,402 91,013 Information products
23,796 6,856 Other (84,274 ) 944 Total income from
operations 30,924 98,813
Margin:
Information services 10.2 % 10.7 % Information products 8.9 % 2.7 %
Total margin 2.7 % 9.0 % ACXIOM CORPORATION
AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands) March 31, March
31, $ % 2011 2010 Variance Variance
Assets
Current assets: Cash and cash equivalents 207,023 224,104 (17,081 )
(7.6 %) Trade accounts receivable, net 176,654 168,522 8,132 4.8 %
Deferred income taxes 12,480 11,874 606 5.1 % Refundable income
taxes 7,402 - 7,402 100.0 % Other current assets 55,691
54,205 1,486 2.7 % Total current assets 459,250
458,705 545 0.1 % Property and equipment
888,717 824,084 64,633 7.8 % Less - accumulated depreciation and
amortization 633,410 587,245 46,165 7.9 %
Property and equipment, net 255,307 236,839 18,468
7.8 % Software, net of accumulated amortization 26,412
38,845 (12,433 ) (32.0 %) Goodwill 417,654 470,261 (52,607 ) (11.2
%) Purchased software licenses, net of accumulated amortization
38,583 51,356 (12,773 ) (24.9 %) Deferred costs, net 81,837 68,914
12,923 18.8 % Data acquisition costs 17,627 21,931 (4,304 ) (19.6
%) Other assets, net 9,955 16,569 (6,614 ) (39.9 %)
1,306,625 1,363,420 (56,795 ) (4.2 %)
Liabilities and
Stockholders' Equity
Current liabilities: Current installments of long-term debt 27,978
42,106 14,128 33.6 % Trade accounts payable 27,506 42,774 15,268
35.7 % Accrued payroll and related expenses 42,236 36,517 (5,719 )
(15.7 %) Other accrued expenses 75,852 75,631 (221 ) (0.3 %)
Deferred revenue 55,921 55,567 (354 ) (0.6 %) Income taxes -
2,460 2,460 100.0 % Total current liabilities 229,493
255,055 25,562 10.0 % Long-term debt 394,260
458,629 64,369 14.0 % Deferred income taxes 84,360 61,284
(23,076 ) (37.7 %) Other liabilities 7,478 9,954 2,476 24.9
% Stockholders' equity: Common stock 11,777 11,662 115 1.0 %
Additional paid-in capital 837,439 814,929 22,510 2.8 % Retained
earnings 459,096 482,243 (23,147 ) (4.8 %) Accumulated other
comprehensive income 15,991 4,167 11,824 283.8 % Treasury stock, at
cost (739,125 ) (738,601 ) (524 ) 0.1 % Total Acxiom stockholders'
equity 585,178 574,400 10,778 1.9 % Noncontrolling interest 5,856
4,097 1,759 42.9 % Total equity 591,034
578,497 12,537 2.2 % 1,306,625 1,363,419
(56,794 ) (4.2 %) ACXIOM CORPORATION AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Dollars in thousands) For the Three
Months Ended March 31, 2011 2010 Cash flows from
operating activities: Net earnings (loss) (70,989 ) 16,362 Non-cash
operating activities: Impairment of goodwill and other intangibles
79,674 - Depreciation and amortization 37,769 42,652 Loss (Gain) on
disposal or impairment of assets 4,155 7 Deferred income taxes
15,102 9,710 Non-cash stock compensation expense 3,200 2,502
Changes in operating assets and liabilities: Accounts receivable
(5,111 ) 10,290 Other assets 2,197 (9,742 ) Deferred costs (978 )
(4,908 ) Accounts payable and other liabilities (12,015 ) 22,999
Deferred revenue (10,969 ) (1,968 ) Net cash provided by operating
activities 42,035 87,904 Cash flows from investing
activities: Disposal of operations (1,079 ) - Capitalized software
(963 ) (1,596 ) Capital expenditures (12,213 ) (26,536 ) Data
acquisition costs (2,650 ) (4,577 ) Payments for investments -
(1,000 ) Net cash used by investing activities (16,905 )
(33,709 ) Cash flows from financing activities: Payments of debt
(24,012 ) (32,079 ) Sale of common stock 1,997 2,911 Tax impact of
stock options exercised (316 ) (683 ) Net cash used by financing
activities (22,331 ) (29,851 ) Effect of exchange rate changes on
cash 288 (822 ) Net change in cash and cash
equivalents 3,087 23,522 Cash and cash equivalents at beginning of
period 203,936 200,582 Cash and cash equivalents at
end of period 207,023 224,104
Supplemental
cash flow information: Cash paid (received) during the period
for: Interest 6,158 4,530 Income taxes 2,345 901 Payments on
capital leases and installment payment arrangements 5,252 7,090
Payments on software and data license liabilities 4,139 1,392 Other
debt payments, excluding line of credit 2,154 3,597 Prepayment of
debt 12,467 20,000 Noncash investing and financing activities:
Acquisition of property and equipment
under capital lease and installment payment arrangements
1,324 5,946 Software licenses and maintenance acquired under
software obligation - 1,560 ACXIOM CORPORATION AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Dollars in thousands) For the Twelve
Months Ended March 31, 2011 2010 Cash flows from
operating activities: Net earnings (28,442 ) 44,159 Non-cash
operating activities: Impairment of goodwill and other intangibles
79,674 - Depreciation and amortization 146,355 167,564 Loss (gain)
on disposal or impairment of assets 3,883 417 Deferred income taxes
19,347 32,810 Non-cash stock compensation expense 13,097 10,790
Changes in operating assets and liabilities: Accounts receivable
(13,024 ) 10,295 Other assets (2,394 ) 2,171 Deferred costs (29,385
) (20,289 ) Accounts payable and other liabilities (23,667 ) (8,215
) Deferred revenue 775 (420 ) Net cash provided by operating
activities 166,219 239,282 Cash flows from investing
activities: Disposal of operations (1,079 ) - Sale of assets -
1,058 Capitalized software (4,555 ) (8,257 ) Capital expenditures
(59,021 ) (57,908 ) Data acquisition costs (13,366 ) (18,808 )
Payments from (for) investments 175 (2,000 ) Net cash paid in
acquisitions (12,927 ) (3,428 ) Net cash used by investing
activities (90,773 ) (89,343 ) Cash flows from financing
activities: Payments of debt (102,101 ) (104,521 ) Fees for debt
refinancing - (4,564 ) Sale of common stock 9,320 5,926 Tax impact
of stock options exercised (316 ) (683 ) Acquisition of treasury
stock - (307 ) Noncontrolling interests equity contributions 480
457 Net cash used by financing activities (92,617 )
(103,692 ) Effect of exchange rate changes on cash 90 691
Net change in cash and cash equivalents (17,081 )
46,938 Cash and cash equivalents at beginning of period 224,104
177,166 Cash and cash equivalents at end of period
207,023 224,104
Supplemental cash flow
information: Cash paid (received) during the period for:
Interest 23,886 21,337 Income taxes 25,339 (7,549 ) Payments on
capital leases and installment payment arrangements 22,357 29,697
Payments on software and data license liabilities 5,316 7,526 Other
debt payments, excluding line of credit 8,428 9,798 Prepayment of
debt 66,000 57,500 Noncash investing and financing activities:
Acquisition of property and equipment
under capital lease and installment payment arrangements
23,753 24,193 Software licenses and maintenance acquired under
software obligation - 2,171 ACXIOM CORPORATION AND
SUBSIDIARIES CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY AND
RECONCILIATION TO OPERATING CASH FLOW (Unaudited) (Dollars in
thousands)
06/30/09 09/30/09
12/31/09 03/31/10 FY2010 06/30/10 09/30/10
12/31/10 03/31/11 FY2011 Net cash
provided by operating activities 16,166 60,703 74,509 87,904
239,282 16,988 42,966 64,230 42,035 166,219 Plus: Sale of
assets - - 1,058 - 1,058 - - - - - Less: Capitalized
software (2,384 ) (2,431 ) (1,846 ) (1,596 ) (8,257 ) (1,226 )
(1,341 ) (1,025 ) (963 ) (4,555 ) Capital expenditures (7,431 )
(14,462 ) (9,479 ) (26,536 ) (57,908 ) (8,752 ) (21,734 ) (16,322 )
(12,213 ) (59,021 ) Data acquisition costs (5,777 ) (3,004 ) (5,450
) (4,577 ) (18,808 ) (4,326 ) (2,625 ) (3,765 ) (2,650 ) (13,366 )
Payments on capital leases and installment payment arrangements
(7,794 ) (7,504 ) (7,309 ) (7,090 ) (29,697 ) (5,968 ) (5,411 )
(5,726 ) (5,252 ) (22,357 ) Payments on software and data license
liabilities (3,878 ) (1,840 ) (416 ) (1,392 ) (7,526 ) (893 ) (164
) (120 ) (4,139 ) (5,316 ) Other required debt payments (2,052 )
(2,058 ) (2,091 ) (3,597 ) (9,798 )
(2,103 ) (2,028 ) (2,143 ) (2,154 )
(8,428 ) Total (13,150 ) 29,404 48,976
43,116 108,346 (6,280 )
9,663 35,129 14,664
53,176 CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) (Dollars in thousands, except earnings per
share)
Q4 FY10 to Q4 FY11
06/30/09 09/30/09 12/31/09 03/31/10
FY2010 06/30/10 09/30/10 12/31/10 03/31/11
FY2011 % $ Revenue: Services 199,326 210,213 218,340
221,553 849,432 210,656 225,584 232,798 224,556 893,594 1.4 % 3,003
Products 56,655 60,892 65,467
66,789 249,803 59,739
66,085 66,312 74,240
266,376 11.2 % 7,451 Total revenue 255,981
271,105 283,807 288,342 1,099,235 270,395 291,669 299,110 298,796
1,159,970 3.6 % 10,454 Operating costs and expenses: Cost of
revenue Services 159,576 165,792 163,206 166,085 654,659 164,650
175,687 178,586 176,065 694,988 6.0 % 9,980 Products 45,919
46,129 46,727 45,835
184,610 45,771 48,320
48,258 47,551 189,900 3.7 %
1,716 Total cost of revenue 205,495 211,921 209,933
211,920 839,269 210,421 224,007 226,844 223,616 884,888 5.5 %
11,696 Selling, general and administrative 37,643
37,964 43,477 43,013 162,097 37,955 40,274 41,331 40,324 159,884
-6.3 % (2,689 ) Impairment of goodwill and other intangibles 79,674
79,674 79,674 Gains, losses and other items, net 347
(27 ) 538 (1,802 ) (944 ) (57 )
78 (3,640 ) 8,219 4,600
-556.1 % 10,021 Total operating costs and
expenses 243,485 249,858 253,948 253,131 1,000,422 248,319 264,359
264,535 351,833 1,129,046 -39.0 % (98,702 ) Income from
operations 12,496 21,247 29,859 35,211 98,813 22,076 27,310 34,575
(53,037 ) 30,924 -250.6 % (88,248 )
% Margin 4.9
% 7.8 % 10.5 % 12.2
% 9.0 % 8.2 % 9.4
% 11.6 % -17.8 % 2.7
% Other income (expense) Interest expense (5,505 ) (5,423 )
(5,687 ) (5,865 ) (22,480 ) (5,898 ) (6,260 ) (6,006 ) (5,659 )
(23,823 ) -3.5 % 206 Other, net (118 ) 223 198
122 425 (451 ) 111
(299 ) (827 ) (1,466 ) -777.9 % (949 )
Total other income (expense) (5,623 ) (5,200 ) (5,489 ) (5,743 )
(22,055 ) (6,349 ) (6,149 ) (6,305 ) (6,486 ) (25,289 ) 12.9 % (743
) Earnings before income taxes 6,873 16,047 24,370 29,468
76,758 15,727 21,161 28,270 (59,523 ) 5,635 -302.0 % (88,991 )
Income taxes 2,679 6,602 10,212
13,106 32,599 6,291 8,464
7,856 11,466 34,077
12.5 % 1,640 Net earnings (loss) 4,194
9,445 14,158 16,362 44,159 9,436 12,697 20,414 (70,989 ) (28,442 )
-533.9 % (87,351 )
Less: Net loss attributable to
noncontrolling interest
- - (104 ) (286 ) (390 )
(369 ) (584 ) (409 ) (3,933 )
(5,295 ) 1275.2 % (3,647 ) Net
earnings (loss) attributable to Acxiom 4,194 9,445
14,262 16,648 44,549
9,805 13,281 20,823
(67,056 ) (23,147 ) -502.8 % (83,704 )
Diluted earnings (loss) per share
attributable to Acxiom shareholders
0.05 0.12 0.18 0.21
0.56 0.12 0.16
0.25 (0.83 ) (0.29 ) -495.2 % (1.04 )
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY
SEGMENT (Unaudited) (Dollars in thousands)
Q4 FY10 to Q4 FY11 06/30/09 09/30/09
12/31/09 03/31/10 FY2010 06/30/10 09/30/10
12/31/10 03/31/11 FY2011 % $ Revenue:
Services 199,326 210,213 218,340 221,553 849,432 210,656
225,584 232,798 224,556 893,594 1.4 % 3,003 Products 56,655
60,892 65,467 66,789
249,803 59,739 66,085
66,312 74,240 266,376 11.2 %
7,451 Total revenue 255,981
271,105 283,807 288,342
1,099,235 270,395 291,669
299,110 298,796 1,159,970 3.6 %
10,454 Income from operations: Services
15,838 19,971 27,565 27,639 91,013 20,879 22,952 26,390 21,181
91,402 -23.4 % (6,458 ) Products (2,995 ) 1,249 2,832 5,770 6,856
1,140 4,436 4,545 13,675 23,796 137.0 % 7,905 Other (347 )
27 (538 ) 1,802 944 57
(78 ) 3,640 (87,893 )
(84,274 ) -4977.5 % (89,695 ) Total income (loss)
from operations 12,496 21,247 29,859
35,211 98,813 22,076
27,310 34,575 (53,037 )
30,924 -250.6 % (88,248 ) Margin:
Services 7.9 % 9.5 % 12.6 % 12.5 % 10.7 % 9.9 % 10.2 % 11.3 % 9.4 %
10.2 % Products -5.3 % 2.1 % 4.3 % 8.6 % 2.7 % 1.9 % 6.7 % 6.9 %
18.4 % 8.9 % Total 4.9 % 7.8 % 10.5 % 12.2 % 9.0 % 8.2 % 9.4
% 11.6 % -17.8 % 2.7 %
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