Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and
software-as-a-service company today announced financial results for
its fourth quarter and fiscal year ended March 31, 2013.
Fourth Quarter Fiscal 2013
Revenue from continuing operations was $277 million for the
quarter, down 3.5 percent compared to $287 million for the
prior-year period. Income from continuing operations decreased 9
percent to $20 million in the current quarter, compared to $22
million in the prior year. Excluding unusual items, operating
income for the quarter decreased to $22 million as compared to $35
million in the prior year. Earnings per diluted share attributable
to Acxiom stockholders were $0.18 in the current quarter, compared
to diluted earnings per share in the prior-year quarter of $0.58.
Excluding unusual items for both periods, diluted earnings per
share of $0.19 decreased 14 percent as compared to $0.22.
Operating cash flow was $74 million for the quarter, compared to
$56 million for the comparable period a year ago, an increase of 31
percent. Free cash flow to equity decreased to $42 million for the
quarter, compared to $103 million for the comparable period. Free
cash flow to equity in the prior-year period included $73 million
in proceeds from the sale of the company’s background screening
business. Excluding the proceeds from the sale, free cash flow to
equity increased 44 percent compared to $29 million in the prior
period. Free cash flow available to equity is a non-GAAP financial
measure. A reconciliation to the comparable GAAP measure, operating
cash flow, is attached.
Fiscal Year 2013
Revenue from continuing operations for the fiscal year ended
March 31, 2013 decreased approximately 3 percent to $1,099 million,
compared to $1,131 million in fiscal 2012. Earnings per diluted
share attributable to Acxiom stockholders were $0.75 in fiscal
2013, compared to $0.96 in the prior year. Excluding unusual items
and discontinued operations from both periods, earnings per diluted
share attributable to Acxiom stockholders were $0.76 as compared to
$0.72 in the prior year.
Operating cash flow decreased 35 percent to $150 million during
the year, compared to $229 million in fiscal 2012. Free cash flow
available to equity was $56 million, compared to $203 million in
the prior year. The prior year result included $73 million in
proceeds from the sale of the company’s background screening
business. Both operating cash flow and free cash flow to equity
were down as a result of changes in working capital and increased
tax payments.
A schedule is attached to this release outlining the impact of
the unusual items on the current and prior-year results.
“Fiscal 2013 was a year of transition for the company”, said
Acxiom CEO Scott Howe. “This past year we re-ignited product
innovation, invested in our clients and our associates and
continued to support our shareholders through our stock repurchase
program. Looking ahead to 2014 we expect to continue to invest in
our new product suite, add new customers and anticipate product
launches in the later part of the fiscal year.”
Fourth Quarter Highlights:
- Acxiom introduced
AbiliTagTM to address data needs for publishers.
This solution is the first in a series of technologies and products
to be announced. AbiliTag enables publishers to onboard first-party
advertising data and allows for measurement and attribution across
multiple channels. This product revolutionizes how publishers can
monetize their advertising inventory. AbiliTag follows industry
guidelines and best practices to protect consumer privacy.
- Acxiom announced Audience
PropensitiesTM. Audience Propensities offers
insight into potential spending, in-market timing, brand affinity,
media consumption and shopping behaviors. This product currently
serves 13 major industries and enables marketers to more
scientifically select media and more efficiently reach their
audiences.
- The company announced the Acxiom
PrivateCloudTM. The Acxiom PrivateCloud offering
is for organizations that require security-enriched cloud
computing. PrivateCloud provides a virtual private data center
dedicated to each tenant. It incorporates managed firewall,
vulnerability scanning and enterprise anti-virus protection as
standard services.
- Acxiom announced a partnership with
Facebook. Our clients are now able to reach members of
Facebook’s very large and engaged audience with advertising
targeted with the help of Acxiom data. The partnership enables
Acxiom’s clients to reach with confidence their customers and
prospects across both mobile and desktop devices with frequency and
consistency. Our partnership with Facebook represents a big step
toward achieving our objective, to provide one-to-one marketing at
scale.
- The company signed agreements with
several new customers including: Foot Locker and Total Wine
& More. Also, we have expanded our relationship with Macy’s and
extended our relationship with two of the largest U.S. financial
institutions.
- The company repurchased
approximately 500,000 shares for $9 million during the quarter.
Since inception of the share repurchase program in August 2011, the
company has repurchased 10.4 million shares, or approximately 13
percent of the outstanding common stock, for $140 million. The
company’s total share repurchase authorization is $200
million.
Segment Results:
- Marketing and Data Services:
Revenue for the fourth quarter decreased 3 percent to $197 million,
as compared to $203 million for the same period a year ago. U.S.
revenue of $168 million was relatively flat. Income from operations
for the fourth quarter was $21 million, compared to $30 million in
the prior year. Operating margin was 11 percent, compared to 15
percent in the previous year. The decrease in margin is primarily
attributable to investments in data and our Audience Operating
System.
- IT Infrastructure Management:
Revenue for the fourth quarter decreased 4 percent to $65 million,
compared to $68 million for the same period a year ago. Income from
operations for the quarter was $2 million, compared to $6 million
in the prior year. Operating margin was approximately 4 percent,
compared to 9 percent a year ago. The decline in operating income
and margin was primarily associated with a one-time contract
adjustment for an existing customer.
- Other Services: Revenue was $14
million as compared to $16 million in the prior year. Loss from
operations was roughly $1 million in each year.
Financial Guidance
The following projections are forward looking and are subject to
certain risks and uncertainties that could cause actual results to
differ materially as detailed in the Forward-Looking Statements
section of this press release. Our guidance does not take into
account any unusual items. Acxiom’s estimates for fiscal 2014 are
as follows:
- We expect revenue for the fiscal year
to be roughly flat as compared to $1.099 billion in Fiscal 2013.
Revenue growth in Marketing and Data Services is expected to be
offset by a decline in revenue in IT Infrastructure
Management.
- Earnings per diluted share attributable
to Acxiom shareholders are also expected to be roughly flat.
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.
Web Link to Financials
You may link to http://www.acxiom.com/FY13_Q4_Financials for the
detailed financial information we typically attach to our earnings
releases.
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 as well as statements regarding future investments, new
customers and new product launches. 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 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 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, 2012, which
was filed with the Securities and Exchange Commission on May 25,
2012.
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, $ % 2013
2012 Variance Variance Revenue: Marketing and data services
197,452 203,400 (5,948 ) (2.9 %) IT Infrastructure management
services 65,202 67,590 (2,388 ) (3.5 %) Other services 14,477
16,265 (1,788 ) (11.0 %) Total revenue 277,131
287,255 (10,124 ) (3.5 %) Operating costs and expenses: Cost
of revenue 213,587 213,788 201 0.1 % Selling, general and
administrative 41,411 38,577 (2,834 ) (7.3 %) Gains, losses and
other items, net 1,944 12,600 10,656 84.6 %
Total operating costs and expenses 256,942 264,965
8,023 3.0 % Income from operations 20,189 22,290
(2,101 ) (9.4 %) %
Margin 7.3 %
7.8 % Other income (expense): Interest expense (2,959
) (3,391 ) 432 12.7 % Other, net 188 (219 ) 407 185.8 %
Total other income (expense) (2,771 ) (3,610 ) 839 23.2 %
Earnings from continuing operations before income taxes
17,418 18,680 (1,262 ) (6.8 %) Income taxes 4,319
3,838 (481 ) (12.5 %) Net earnings from continuing
operations 13,099 14,842 (1,743 ) (11.7 %) Earnings from
discontinued operations, net of tax - 31,031 (31,031
) (100.0 %) Net earnings 13,099 45,873 (32,774 ) (71.4 %)
Less: Net loss attributable to noncontrolling interest (139
) (193 ) 54 28.0 % Net earnings attributable to Acxiom
13,238 46,066 (32,828 ) (71.3 %) Basic
earnings per share: Net earnings from continuing operations 0.18
0.19 (0.01 ) (5.3 %) Earnings from discontinued operations -
0.40 (0.40 ) (100.0 %) Net earnings 0.18 0.59
(0.41 ) (69.5 %) Net earnings attributable to Acxiom
stockholders 0.18 0.59 (0.41 ) (69.5 %)
Diluted earnings per share: Net earnings from continuing operations
0.17 0.19 (0.02 ) (10.5 %) Earnings from discontinued operations -
0.39 (0.39 ) (100.0 %) Net earnings 0.17 0.58
(0.41 ) (70.7 %) Net earnings attributable to Acxiom
stockholders 0.18 0.58 (0.40 ) (69.0 %)
ACXIOM CORPORATION
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in thousands, except earnings per share) For
the Twelve Months Ended March 31, $ % 2013 2012 Variance Variance
Revenue: Marketing and data services 767,738 771,714 (3,976
) (0.5 %) IT Infrastructure management services 275,469 291,525
(16,056 ) (5.5 %) Other services 56,152 67,385
(11,233 ) (16.7 %) Total revenue 1,099,359 1,130,624 (31,265 ) (2.8
%) Operating costs and expenses: Cost of revenue 841,826
863,489 21,663 2.5 % Selling, general and administrative 152,804
151,131 (1,673 ) (1.1 %) Impairment of goodwill and other
intangibles - 17,803 17,803 100.0 % Gains, losses and other items,
net 2,010 12,638 10,628 84.1 % Total operating
costs and expenses 996,640 1,045,061 48,421 4.6 %
Income from operations 102,719 85,563 17,156
20.1 % %
Margin 9.3 % 7.6 %
Other income (expense): Interest expense (12,694 ) (17,448 ) 4,754
27.2 % Other, net 152 (1,369 ) 1,521 111.1 % Total
other income (expense) (12,542 ) (18,817 ) 6,275 33.3 %
Earnings from continuing operations before income taxes 90,177
66,746 23,431 35.1 % Income taxes 33,058 29,129
(3,929 ) (13.5 %) Net earnings from continuing
operations 57,119 37,617 19,502 51.8 % Earnings from
discontinued operations, net of tax - 33,899 (33,899
) (100.0 %) Net earnings 57,119 71,516 (14,397 ) (20.1 %)
Less: Net loss attributable to noncontrolling interest (488
) (5,747 ) 5,259 91.5 % Net earnings attributable to Acxiom
57,607 77,263 (19,656 ) (25.4 %) Basic
earnings per share: Net earnings (loss) from continuing operations
0.76 0.47 0.29 61.7 % Earnings from discontinued operations -
0.43 (0.43 ) (100.0 %) Net earnings 0.76 0.90
(0.14 ) 15.6 % Net earnings (loss) attributable to
Acxiom stockholders 0.77 0.97 (0.20 ) 20.6 %
Diluted earnings per share: Net earnings from continuing
operations 0.75 0.47 0.28 59.6 % Earnings from discontinued
operations - 0.42 (0.42 ) (100.0 %) Net earnings 0.75
0.89 (0.14 ) (15.7 %) Net earnings
attributable to Acxiom stockholders 0.75 0.96 (0.21 )
(21.9 %)
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, 2013 2012 2013 2012
Earnings from continuing operations before income taxes 17,418
18,680 90,177 66,746 Income taxes 4,319 3,838
33,058 29,129 Net earnings from continuing
operations 13,099 14,842 57,119 37,617 Earnings from
discontinued operations, net of tax - 31,031 -
33,899 Net earnings 13,099 45,873 57,119 71,516
Less: Net loss attributable to noncontrolling interest (139
) (193 ) (488 ) (5,747 ) Net earnings attributable to Acxiom
13,238 46,066 57,607 77,263
Earnings per share attributable to Acxiom stockholders:
Basic 0.18 0.59 0.77 0.97
Diluted 0.18 0.58 0.75 0.96
Unusual items: MENA disposal - - - 2,512 Disposal of
operations (878 ) - (878 ) - Impairment of goodwill and other
intangibles - - - 17,803 Adjustment of earnout liability - - -
(2,598 ) Restructuring charges and other adjustments 2,822
12,600 2,888 12,724 Total unusual
items, continuing operations 1,944 12,600 2,010
30,441
Earnings from continuing operations before
income taxes and excluding unusual items
19,362 31,280 92,187 97,187 Income taxes 5,398 14,082
34,163 40,423 Non-GAAP net earnings
13,964 17,198 58,024 56,764 Less: Net loss attributable to
noncontrolling interest (139 ) - (488 ) (1,370 )
Non-GAAP Net earnings attributable to Acxiom 14,103 17,198
58,512 58,134 Non-GAAP earnings per
share attributable to Acxiom stockholders: Basic 0.19
0.22 0.78 0.73 Diluted 0.19 0.22
0.76 0.72 Diluted weighted average
shares 75,027 78,947 76,497 80,394
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, 2013 2012 2013 2012
Income from operations 20,189 22,290 102,719 85,563
Unusual items 1,944 12,600 2,010 30,441 Income from
operations before unusual items 22,133 34,890 104,729 116,004
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, 2013 2012 Basic
earnings per share from continuing operations: Numerator - net
earnings 13,099 14,842 Denominator - weighted-average shares
outstanding 73,670 77,818 Basic earnings per share 0.18 0.19
Basic earnings per share - net earnings attributable to Acxiom
stockholders: Numerator - net earnings attributable to Acxiom
13,238 46,066 Denominator - weighted-average shares outstanding
73,670 77,818 Basic earnings per share - net earnings attributable
to Acxiom stockholders 0.18 0.59 Diluted earnings per share
from continuing operations: Numerator - net earnings 13,099 14,842
Denominator - weighted-average shares outstanding 73,670
77,818 Dilutive effect of common stock options, warrants and
restricted stock 1,357 1,129 75,027 78,947 Diluted earnings
per share from continuing operations 0.17 0.19 Diluted
earnings per share - net earnings attributable to Acxiom
stockholders: Numerator - net earnings attributable to Acxiom
13,238 46,066 Denominator - weighted-average shares
outstanding 73,670 77,818 Dilutive effect of common stock options,
warrants, and restricted stock 1,357 1,129 75,027 78,947
Diluted earnings per share - net earnings attributable to Acxiom
stockholders 0.18 0.58
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, 2013 2012 Basic earnings per share from continuing
operations: Numerator - net earnings 57,119 37,617 Denominator -
weighted-average shares outstanding 74,814 79,483 Basic earnings
per share 0.76 0.47 Basic earnings per share - net earnings
attributable to Acxiom stockholders: Numerator - net earnings
attributable to Acxiom 57,607 77,263 Denominator - weighted-average
shares outstanding 74,814 79,483 Basic earnings per share - net
earnings attributable to Acxiom stockholders 0.77 0.97
Diluted earnings per share from continuing operations: Numerator -
net earnings 57,119 37,617 Denominator - weighted-average
shares outstanding 74,814 79,483 Dilutive effect of common stock
options, warrants and restricted stock 1,683 911 76,497 80,394
Diluted earnings per share from continuing operations 0.75
0.47 Diluted earnings per share - net earnings attributable
to Acxiom stockholders: Numerator - net earnings attributable to
Acxiom 57,607 77,263 Denominator - weighted-average shares
outstanding 74,814 79,483 Dilutive effect of common stock options,
warrants, and restricted stock 1,683 911 76,497 80,394
Diluted earnings per share - net earnings attributable to Acxiom
stockholders 0.75 0.96 ACXIOM
CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited)
(Dollars in thousands) For the Three Months Ended
March 31, March 31,
Revenue: 2013 2012
Marketing and data services 197,452 203,400 IT Infrastructure
management services 65,202 67,590 Other services 14,477 16,265
Total revenue 277,131 287,255
Income from
continuing operations: Marketing and data services
21,236 30,094 IT Infrastructure management services 2,357 5,855
Other services (1,460) (1,059) Corporate (1,944) (12,600)
Total income from continuing operations 20,189 22,290
Margin: Marketing and data services 10.8% 14.8% IT
Infrastructure management services 3.6% 8.7% Other services -10.1%
-6.5% Total margin 7.3% 7.8%
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited)
(Dollars in thousands) For the Twelve Months Ended
March 31, March 31,
Revenue: 2013 2012
Marketing and data services 767,738 771,714 IT Infrastructure
management services 275,469 291,525 Other services 56,152
67,385 Total revenue 1,099,359 1,130,624
Income from continuing operations:
Marketing and data services 80,513 95,820 IT Infrastructure
management services 29,330 24,988 Other services (5,114 ) (4,804 )
Corporate (2,010 ) (30,441 ) Total income from continuing
operations 102,719 85,563
Margin:
Marketing and data services 10.5 % 12.4 % IT Infrastructure
management services 10.6 % 8.6 % Other services -9.1 % -7.1 %
Total margin 9.3 % 7.6 %
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in
thousands) March 31, March 31, $ % 2013 2012 Variance
Variance
Assets
Current assets: Cash and cash equivalents 222,974 229,648 (6,674 )
(2.9 %) Trade accounts receivable, net 159,882 169,446 (9,564 )
(5.6 %) Deferred income taxes 13,496 15,107 (1,611 ) (10.7 %)
Refundable income taxes 5,809 - 5,809 100.0 % Other current assets
58,935 57,804 1,131 2.0 % Total current assets
461,096 472,005 (10,909 ) (2.3 %) Property and
equipment 822,439 913,073 (90,634 ) (9.9 %) Less - accumulated
depreciation and amortization 591,687 659,700 (68,013
) (10.3 %) Property and equipment, net 230,752
253,373 (22,621 ) (8.9 %) Software, net of
accumulated amortization 24,471 13,211 11,260 85.2 % Goodwill
381,129 382,285 (1,156 ) (0.3 %) Purchased software licenses, net
of accumulated amortization 23,604 25,294 (1,690 ) (6.7 %) Deferred
costs, net 42,971 61,977 (19,006 ) (30.7 %) Data acquisition costs
10,631 15,009 (4,378 ) (29.2 %) Other assets, net 13,052
9,623 3,429 35.6 % 1,187,706 1,232,777
(45,071 ) (3.7 %)
Liabilities and
Stockholders' Equity
Current liabilities: Current installments of long-term debt 16,105
26,336 10,231 38.8 % Trade accounts payable 35,786 31,030 (4,756 )
(15.3 %) Accrued payroll and related expenses 62,390 54,839 (7,551
) (13.8 %) Other accrued expenses 68,270 67,847 (423 ) (0.6 %)
Deferred revenue 41,388 59,949 18,561 31.0 % Income taxes 637
16,400 15,763 96.1 % Total current liabilities
224,576 256,401 31,825 12.4 % Long-term debt
237,400 251,886 14,486 5.8 % Deferred income taxes 94,918
98,965 4,047 4.1 % Other liabilities 11,444 13,670 2,226
16.3 % Stockholders' equity: Common stock 12,134 12,003 131
1.1 % Additional paid-in capital 885,184 860,165 25,019 2.9 %
Retained earnings 593,966 536,359 57,607 10.7 % Accumulated other
comprehensive income 11,423 13,601 (2,178 ) (16.0 %) Treasury
stock, at cost (882,959 ) (810,381 ) (72,578 ) (9.0 %) Total Acxiom
stockholders' equity 619,748 611,747 8,001 1.3 % Noncontrolling
interest (380 ) 108 (488 ) (451.9 %) Total equity
619,368 611,855 7,513 1.2 % 1,187,706
1,232,777 (45,071 ) (3.7 %)
ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)
For the Three Months Ended March 31, 2013 2012
Cash flows from operating activities: Net earnings 13,099
45,873 Non-cash operating activities: Depreciation and amortization
26,614 31,422 Loss (Gain) on disposal or impairment of assets -
(48,380 ) Impairment of goodwill and other intangibles - - Deferred
income taxes 2,850 3,006 Non-cash stock compensation expense 3,096
2,060 Changes in operating assets and liabilities: Accounts
receivable 20,603 1,816 Other assets (9,941 ) (4,705 ) Deferred
costs 36 (422 ) Accounts payable and other liabilities 23,719
35,916 Deferred revenue (5,855 ) (10,143 ) Net cash provided by
operating activities 74,221 56,443 Cash flows from
investing activities: Disposal of operations - 73,468 Capitalized
software (6,689 ) (2,095 ) Capital expenditures (16,515 ) (12,444 )
Data acquisition costs (2,106 ) (3,763 ) Net cash provided (used)
by investing activities (25,310 ) 55,166 Cash flows from
financing activities: Payments of debt (7,081 ) (9,108 ) Sale of
common stock 4,094 4,887 Tax impact of stock options, warrants, and
restricted stock 357 (1,310 ) Acquisition of treasury stock (9,023
) (22,708 ) Net cash used by financing activities (11,653 ) (28,239
) Effect of exchange rate changes on cash (504 ) 415
Net change in cash and cash equivalents 36,754 83,785 Cash and cash
equivalents at beginning of period 186,220 145,863
Cash and cash equivalents at end of period 222,974 229,648
Supplemental cash flow information: Cash paid
during the period for: Interest 3,031 3,568 Income taxes 9,196
5,594 Payments on capital leases and installment payment
arrangements 3,566 4,644 Payments on software and data license
liabilities 1,432 2,300 Other debt payments, excluding line of
credit 2,083 2,164 Noncash investing and financing activities:
Acquisition of property and equipment
under capital lease and installment payment arrangements
- 2,509 ACXIOM CORPORATION AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (Dollars in thousands) For the Twelve Months
Ended March 31, 2013 2012
Cash flows from operating activities: Net earnings 57,119
71,516 Non-cash operating activities: Depreciation and amortization
116,208 134,662 Loss (gain) on disposal or impairment of assets 25
(48,197 ) Impairment of goodwill and other intangibles - 17,803
Deferred income taxes (3,578 ) 2,228 Non-cash stock compensation
expense 12,002 8,970 Changes in operating assets and liabilities:
Accounts receivable 6,678 (947 ) Other assets (9,185 ) (4,907 )
Deferred costs (1,564 ) (2,301 ) Accounts payable and other
liabilities (8,888 ) 46,624 Deferred revenue (18,685 ) 4,000
Net cash provided by operating activities 150,132 229,451
Cash flows from investing activities: Disposition of
operations - 72,425 Capitalized software (19,879 ) (5,262 ) Capital
expenditures (38,491 ) (51,591 ) Data acquisition costs (8,570 )
(12,312 ) Payments from investments - 370 Net cash paid in
acquisitions - (255 ) Net cash provided (used) by investing
activities (66,940 ) 3,375 Cash flows from financing
activities: Payments of debt (26,871 ) (154,876 ) Sale of common
stock 11,957 12,205 Tax impact of stock options, warrants, and
restricted stock 357 (1,310 ) Acquisition of treasury stock (74,378
) (65,535 ) Contingent consideration paid for prior acquisitions
(288 ) (326 ) Net cash used by financing activities (89,223 )
(209,842 ) Effect of exchange rate changes on cash (643 ) (309 )
Net change in cash and cash equivalents (6,674 ) 22,675 Cash
and cash equivalents at beginning of period 229,648 206,973
Cash and cash equivalents at end of period 222,974
229,648
Supplemental cash flow information:
Cash paid during the period for: Interest 12,709 19,059 Income
taxes 57,464 20,765 Payments on capital leases and installment
payment arrangements 16,514 18,331 Payments on software and data
license liabilities 1,769 2,916 Other debt payments, excluding line
of credit 8,588 8,629 Prepayment of debt - 125,000 Noncash
investing and financing activities:
Acquisition of property and equipment
under capital lease and installment payment arrangements
2,157 11,242
ACXIOM CORPORATION AND
SUBSIDIARIES CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY AND
RECONCILIATION TO OPERATING CASH FLOW (Unaudited) (Dollars in
thousands)
06/30/11 09/30/11 12/31/11
03/31/12 FY2012 06/30/12
09/30/12 12/31/12 03/31/13
YTD FY2013 Net cash provided (used) by operating
activities 32,754 57,714 82,540 56,443 229,451 (1,867 ) 39,235
38,543 74,221 150,132 Less: Disposition of operations -
(1,043 ) - 73,468 72,425 - - - - - Capitalized software (529 ) (991
) (1,647 ) (2,095 ) (5,262 ) (3,673 ) (4,074 ) (5,443 ) (6,689 )
(19,879 ) Capital expenditures (12,577 ) (12,134 ) (14,436 )
(12,444 ) (51,591 ) (3,538 ) (8,178 ) (10,260 ) (16,515 ) (38,491 )
Data acquisition costs (2,776 ) (1,774 ) (3,999 ) (3,763 ) (12,312
) (2,302 ) (1,396 ) (2,766 ) (2,106 ) (8,570 ) Payments on capital
leases and installment payment arrangements (4,794 ) (4,184 )
(4,709 ) (4,644 ) (18,331 ) (4,562 ) (4,384 ) (4,002 ) (3,566 )
(16,514 ) Payments on software and data license liabilities (367 )
(124 ) (125 ) (2,300 ) (2,916 ) (129 ) (130 ) (78 ) (1,432 ) (1,769
) Other required debt payments (2,151 ) (2,155 )
(2,159 ) (2,164 ) (8,629
) (2,165 ) (2,168 ) (2,172 )
(2,083 ) (8,588 ) Total 9,560
35,309 55,465
102,501 202,835 (18,236 )
18,905 13,822
41,830 56,321
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Dollars in thousands, except earnings per share)
Q4
FY13 to Q4 FY12 06/30/11 09/30/11
12/31/11 03/31/12 FY2012 06/30/12
09/30/12 12/31/12
03/31/13 YTD FY2013 % $ Revenue: Marketing and data
services 184,996 195,857 187,461 203,400 771,714 185,739 194,409
190,138 197,452 767,738 -2.9 % (5,948 ) IT Infrastructure
management services 73,050 73,712 77,173 67,590 291,525 70,290
70,061 69,916 65,202 275,469 -3.5 % (2,388 ) Other services 17,998
16,863 16,259
16,265 67,385 15,630
12,997 13,048
14,477 56,152 -11.0 %
(1,788 ) Total revenue 276,044 286,432 280,893
287,255 1,130,624 271,659 277,467 273,102 277,131 1,099,359 -3.5 %
(10,124 ) Operating costs and expenses: Cost of revenue
218,289 217,487 213,925 213,788 863,489 209,326 209,886 209,027
213,587 841,826 -0.1 % (201 ) Selling, general and administrative
36,807 39,429 36,318 38,577 151,131 36,749 37,341 37,303 41,411
152,804 7.3 % 2,834 Impairment of goodwill and other intangibles -
- 17,803 - 17,803 - - - - - - - Gains, losses and other items, net
244 2,465 (2,671 )
12,600 12,638 160
32 (126 ) 1,944
2,010 -84.6 % (10,656 )
Total operating costs and expenses 255,340 259,381 265,375 264,965
1,045,061 246,235 247,259 246,204 256,942 996,640 -3.0 % (8,023 )
Income from operations 20,704 27,051 15,518 22,290 85,563
25,424 30,208 26,898 20,189 102,719 -9.4 % (2,101 )
% Margin
7.5 % 9.4 % 5.5 %
7.8 % 7.6 % 9.4 %
10.9 % 9.8 % 7.3 %
9.3 % Other expense Interest expense (5,455 ) (4,719
) (3,883 ) (3,391 ) (17,448 ) (3,240 ) (3,317 ) (3,178 ) (2,959 )
(12,694 ) 12.7 % 432 Other, net (87 ) (965 )
(98 ) (219 ) (1,369 ) (547 )
(54 ) 565 188
152 185.8 % 407
Total other expense (5,542 ) (5,684 ) (3,981 ) (3,610 ) (18,817 )
(3,787 ) (3,371 ) (2,613 ) (2,771 ) (12,542 ) 23.2 % 839
Earnings from continuing operations before income taxes 15,162
21,367 11,537 18,680 66,746 21,637 26,837 24,285 17,418 90,177 -6.8
% (1,262 ) Income taxes 6,063 9,528
9,700 3,838
29,129 8,438 10,465
9,836 4,319 33,058
12.5 % 481 Net earnings from
continuing operations 9,099 11,839 1,837 14,842 37,617 13,199
16,372 14,449 13,099 57,119 -11.7 % (1,743 ) Earnings from
discontinued operations, net of tax 916 1,138
814 31,031
33,899 - -
- - - -100.0 %
(31,031 ) Net earnings 10,015 12,977 2,651
45,873 71,516 13,199 16,372 14,449 13,099 57,119 -71.4 % (32,774 )
Less: Net earnings (loss) attributable to
noncontrolling interest
(960 ) 685 (5,279 )
(193 ) (5,747 ) (134 ) (139 )
(76 ) (139 ) (488 )
28.0 % 54 Net earnings
attributable to Acxiom 10,975 12,292
7,930 46,066
77,263 13,333 16,511
14,525 13,238
57,607 -71.3 % (32,828 )
Diluted earnings per share - net earnings
attributable to Acxiom stockholders
0.13 0.15 0.10
0.58 0.96 0.17
0.21 0.19
0.18 0.75 -69.0 % (0.40 )
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY
SEGMENT (Unaudited) (Dollars in thousands)
Q4 FY13 to Q4 FY12 06/30/11 09/30/11
12/31/11 03/31/12 FY2012
06/30/12 09/30/12 12/31/12
03/31/13 YTD FY2013 % $
Revenue: Marketing and data services 184,996 195,857 187,461
203,400 771,714 185,739 194,409 190,138 197,452 767,738 -3 % (5,948
) IT Infrastructure management services 73,050 73,712 77,173 67,590
291,525 70,290 70,061 69,916 65,202 275,469 -4 % (2,388 ) Other
services 17,998 16,863
16,259 16,265 67,385
15,630 12,997
13,048 14,477 56,152
-11 % (1,788 ) Total revenue 276,044
286,432 280,893
287,255 1,130,624 271,659
277,467 273,102
277,131 1,099,359 -4 %
(10,124 ) Income (loss) from operations:
Marketing and data services 17,260 27,078 21,388 30,094
95,820 17,975 23,331 17,971 21,236 80,513 -29 % (8,858 ) IT
Infrastructure management services 4,247 5,091 9,795 5,855 24,988
8,831 8,520 9,622 2,357 29,330 -60 % (3,498 ) Other services (559 )
(2,653 ) (533 ) (1,059 ) (4,804 ) (1,222 ) (1,611 ) (821 ) (1,460 )
(5,114 ) -38 % (401 ) Corporate (244 ) (2,465 )
(15,132 ) (12,600 )
(30,441 ) (160 ) (32 ) 126
(1,944 ) (2,010 ) 85 %
10,656 Total income from operations 20,704
27,051 15,518
22,290 85,563 25,424
30,208 26,898
20,189 102,719 -9 %
(2,101 ) Margin: Marketing and data services
9.3 % 13.8 % 11.4 % 14.8 % 12.4 % 9.7 % 12.0 % 9.5 % 10.8 % 10.5 %
IT Infrastructure management services 5.8 % 6.9 % 12.7 % 8.7 % 8.6
% 12.6 % 12.2 % 13.8 % 3.6 % 10.6 % Other services -3.1 % -15.7 %
-3.3 % -6.5 % -7.1 % -7.8 % -12.4 % -6.3 % -10.1 % -9.1 %
Total 7.5 % 9.4 % 5.5 % 7.8 % 7.6 % 9.4 % 10.9 % 9.8 % 7.3 % 9.3 %
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