Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and
software-as-a-service company, today announced financial results
for its first quarter ended June 30, 2013.
Revenue was $266 million, down 2 percent compared to $272
million for the prior-year period. Income from operations decreased
5 percent to $24 million in the current quarter, compared to $25
million in the prior year. Marketing and Data Services revenue
decreased 2 percent to $188 million in the quarter, compared to
$192 million; IT Infrastructure Management revenue decreased 1
percent to $69 million in the current quarter compared to $70
million. Earnings per diluted share attributable to Acxiom
stockholders were flat as compared to $0.17 in the prior year.
Operating cash flow was $169 million for the trailing twelve
months, compared to $195 million for the comparable period a year
ago. Free cash flow to equity was $70 million for the trailing
twelve-month period, compared to $175 million for the comparable
period. Free cash flow to equity for the prior-year trailing
twelve-month period included $73 million in proceeds from the sale
of the company’s background screening business. Free cash flow to
equity is a non-GAAP financial measure. A reconciliation to the
comparable GAAP measure, operating cash flow, is attached.
The company intends to launch the Acxiom Audience Operating
System™ on September 24th in New York City during AdWeek. The
Acxiom Audience Operating System is an innovative new technology
that powers more effective marketing decisions through better data,
valuable insights and powerful applications.
“The Audience Operating System is set to launch at AdWeek,” said
Acxiom CEO Scott Howe. “We are pleased with our development
progress and with the support we are receiving from our customers,
prospects and agencies. We believe our technology is
ground-breaking and will redefine marketing. For the first time
marketers, agencies and publishers will have one to one marketing
capabilities at scale across all channels and devices.”
The company has recently experienced client losses in the IT
Infrastructure Management business, in addition to those previously
disclosed in its fiscal 2013 annual report. The company estimates
it will report revenue of $65 to $70 million in fiscal 2014 for all
IT Infrastructure customers who have given notice of termination.
Given the timing of these terminations, the company is not changing
its overall financial guidance for fiscal 2014. We do, however,
expect the fiscal 2015 revenue contribution from these customers to
be negligible.
First Quarter Highlights:
- The company announced the scheduled
launch of the Acxiom Audience Operating System. The company
intends to launch the Acxiom AOS at AdWeek in New York City on
September 24.
- The Company added several new
Marketing and Data Services customers during the quarter
including:
- Springleaf Financial. Springleaf
will use Acxiom’s Acquisition Database Solution, which supports
customer and prospect marketing across all customer touch points,
including mobile, email and direct mail.
- Wellmark Inc. Acxiom will assist
Wellmark in understanding and executing its consumer marketing
programs by providing data and campaign management expertise. The
company will also collaborate with Wellmark on analytics and
performance reporting.
- U.S. Cellular. Acxiom will
provide customer recognition, data enhancement and analytics
services. The company will provide customer data integration and
data support for consumer marketing across all touch points,
including mobile, email and direct mail.
- Acxiom now has partner relationships
with five of the six largest publishers in the U.S. This
extends Acxiom’s reach to approaching 100 percent of unique
visitors across the internet.
- Acxiom repurchased approximately
720,000 shares for $16.1 million during the quarter. Since
inception of the share repurchase program in August 2011, the
company has repurchased 11.1 million shares, or approximately 13.5
percent of the outstanding common stock, for $156 million. The
company’s total share repurchase authorization is $200
million.
Segment Results:
- Marketing and Data Services:
Revenue for the first quarter decreased slightly to $188 million,
as compared to $192 million for the same period a year ago. U.S.
revenue of $163 million decreased 2 percent compared to $167
million in the prior period. The quarterly results reflect the move
of the company’s email business from the Other Services segment to
the Marketing and Data Service segment. This change was made as a
result of how the company now assesses segment results. Income from
operations for the first quarter was $13 million, compared to $19
million in the prior period. Operating margin was 7 percent,
compared to 10 percent in the previous year. This decline is
primarily related to our investment spending in the Acxiom Audience
Operating System and increased selling, general and administrative
expense.
- IT Infrastructure Management:
Revenue for the first quarter decreased 1 percent to $69 million,
compared to $70 million for the same period a year ago. Income from
operations for the quarter was $11 million compared to $9 million
in the comparable period. Operating margin was approximately 16
percent, compared to 13 percent.
- Other Services: Revenue was $9
million, flat as compared to the prior-year period. Operating
income was $1 million compared to a loss of $2 million in the prior
period.
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 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/FY14_Q1_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 and capabilities. 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, 2013, which was filed with the Securities and Exchange
Commission on May 29, 2013.
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 June 30, $ % 2013 2012 Variance
Variance Revenue: Marketing and data services 187,793
192,482 (4,689 ) (2.4 %) IT Infrastructure management services
69,385 70,290 (905 ) (1.3 %) Other services 9,015 8,887
128 1.4 % Total Revenue 266,193 271,659 (5,466 ) (2.0 %)
Operating costs and expenses: Cost of revenue 202,412
209,311 (6,899 ) (3.3 %) Selling, general and administrative 39,709
36,764 2,945 8.0 % Gains, losses and other items, net - 160
(160 ) (100.0 %) Total operating costs and expenses
242,121 246,235 (4,114 ) (1.7 %) Income from
operations 24,072 25,424 (1,352 ) (5.3 %) %
Margin 9.0 % 9.4 % Other income
(expense): Interest expense (3,019 ) (3,240 ) 221 6.8 % Other, net
104 (547 ) 651 119.0 % Total other income (expense)
(2,915 ) (3,787 ) 872 23.0 % Earnings before income taxes
21,157 21,637 (480 ) (2.2 %) Income taxes 8,062 8,438
(376 ) (4.5 %) Net earnings 13,095 13,199 (104 ) (0.8
%) Less: Net loss attributable to noncontrolling interest
(85 ) (134 ) 49 36.6 % Net earnings attributable to Acxiom
13,180 13,333 (153 ) (1.1 %) Basic earnings
per share: Net earnings 0.18 0.17 0.01 5.9 % Net
earnings attributable to Acxiom stockholders 0.18 0.17
0.01 5.9 % Diluted earnings per share: Net
earnings 0.17 0.17 0.00 0.0 % Net earnings
attributable to Acxiom stockholders 0.17 0.17 0.00
0.0 % ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION
OF EARNINGS PER SHARE (Unaudited) (In thousands, except earnings
per share) For the Three Months Ended
June 30, June 30, 2013 2012 Basic earnings per share
Numerator - net earnings 13,095 13,199 Denominator -
weighted-average shares outstanding 73,679 76,473 Basic earnings
per share 0.18 0.17 Basic earnings per share - net earnings
attributable to Acxiom stockholders: Numerator - net earnings
attributable to Acxiom 13,180 13,333 Denominator - weighted-average
shares outstanding 73,679 76,473 Basic earnings per share - net
earnings attributable to Acxiom stockholders 0.18 0.17
Diluted earnings per share Numerator - net earnings 13,095 13,199
Denominator - weighted average shares outstanding 73,679
76,473 Dilutive effect of common stock options, warrants and
restricted stock 1,812 1,584 75,491 78,057 Diluted earnings
per share 0.17 0.17 Diluted earnings per share - net
earnings attributable to Acxiom stockholders: Numerator - net
earnings attributable to Acxiom 13,180 13,333 Denominator -
weighted-average shares outstanding 73,679 76,473 Dilutive effect
of common stock options, warrants, and restricted stock 1,812 1,584
75,491 78,057 Diluted earnings per share - net earnings
attributable to Acxiom stockholders 0.17 0.17 ACXIOM
CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited)
(Dollars in thousands) For the Three
Months Ended June 30, June 30,
Revenue: 2013 2012
Marketing and data services 187,793 192,482 IT
Infrastructure management services 69,385 70,290 Other services
9,015 8,887 Total Revenue 266,193
271,659
Income from operations:
Marketing and data services 12,657 18,703 IT Infrastructure
management services 10,761 8,831 Other services 654 (1,950 )
Corporate - (160 ) Total income from operations
24,072 25,424
Margin: Marketing
and data services 6.7 % 9.7 % IT Infrastructure management services
15.5 % 12.6 % Other services 7.3 % -21.9 % Total margin 9.0
% 9.4 % ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)
June 30,
March 31, $ % 2013 2013 Variance Variance
Assets
Current assets: Cash and cash equivalents 207,630 222,974 (15,344 )
(6.9 %) Trade accounts receivable, net 159,654 159,882 (228 ) (0.1
%) Deferred income taxes 13,575 13,496 79 0.6 % Refundable income
taxes - 5,809 (5,809 ) (100.0 %) Other current assets 55,955
58,935 (2,980 ) (5.1 %) Total current assets 436,814
461,096 (24,282 ) (5.3 %) Property and
equipment 830,269 822,439 7,830 1.0 % Less - accumulated
depreciation and amortization 603,662 591,687 11,975
2.0 % Property and equipment, net 226,607 230,752
(4,145 ) (1.8 %) Software, net of accumulated
amortization 28,823 24,471 4,352 17.8 % Goodwill 379,203 381,129
(1,926 ) (0.5 %) Purchased software licenses, net of accumulated
amortization 23,931 23,604 327 1.4 % Deferred costs, net 37,194
42,971 (5,777 ) (13.4 %) Data acquisition costs 9,849 10,631 (782 )
(7.4 %) Other assets, net 12,868 13,052 (184 ) (1.4
%) 1,155,289 1,187,706 (32,417 ) (2.7 %)
Liabilities and
Stockholders’ Equity
Current liabilities: Current installments of long-term debt 14,777
16,105 (1,328 ) (8.2 %) Trade accounts payable 34,556 35,786 (1,230
) (3.4 %) Accrued payroll and related expenses 30,487 62,390
(31,903 ) (51.1 %) Other accrued expenses 67,952 68,270 (318 ) (0.5
%) Deferred revenue 44,360 41,388 2,972 7.2 % Income taxes 2,396
637 1,759 276.1 % Total current liabilities
194,528 224,576 (30,048 ) (13.4 %) Long-term
debt 233,838 237,400 (3,562 ) (1.5 %) Deferred income taxes
94,260 94,918 (658 ) (0.7 %) Other liabilities 9,952 11,444
(1,492 ) (13.0 %)
Stockholders’ equity:
Common stock 12,214 12,134 80 0.7 % Additional paid-in capital
895,452 885,184 10,268 1.2 % Retained earnings 607,146 593,966
13,180 2.2 % Accumulated other comprehensive income 8,874 11,423
(2,549 ) (22.3 %) Treasury stock, at cost (900,510 ) (882,959 )
(17,551 ) (2.0 %)
Total Acxiom stockholders’ equity
623,176 619,748 3,428 0.6 % Noncontrolling interest (465 ) (380 )
(85 ) (22.4 %) Total equity 622,711 619,368
3,343 0.5 % 1,155,289 1,187,706 (32,417 ) (2.7
%) ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in
thousands) For the Three Months Ended
June 30, 2013 2012 Cash flows
from operating activities: Net earnings 13,095 13,199 Non-cash
operating activities: Depreciation and amortization 25,185 30,995
Loss on disposal or impairment of assets - 24 Deferred income taxes
(588 ) (1,403 ) Non-cash stock compensation expense 3,181 2,653
Changes in operating assets and liabilities: Accounts receivable
1,140 (4,609 ) Other assets 878 (1,397 ) Deferred costs - (647 )
Accounts payable and other liabilities (27,309 ) (33,464 ) Deferred
revenue 1,267 (7,218 ) Net cash provided (used) by operating
activities 16,849 (1,867 ) Cash flows from investing
activities: Capitalized software (5,954 ) (3,673 ) Capital
expenditures (8,920 ) (3,538 ) Data acquisition costs (1,961 )
(2,302 ) Net cash used by investing activities (16,835 ) (9,513 )
Cash flows from financing activities: Payments of debt (4,890 )
(6,856 ) Sale of common stock 5,755 1,761 Contingent consideration
paid for prior acquisitions - (287 ) Acquisition of treasury stock
(16,139 ) (33,097 ) Net cash used by financing activities (15,274 )
(38,479 ) Effect of exchange rate changes on cash (84 ) (507 )
Net change in cash and cash equivalents (15,344 ) (50,366 )
Cash and cash equivalents at beginning of period 222,974
229,648 Cash and cash equivalents at end of period 207,630
179,282 Supplemental cash flow information:
Cash paid during the period for: Interest 3,011 3,223 Income taxes
1,084 16,193 Payments on capital leases and installment payment
arrangements 4,400 4,562 Payments on software and data license
liabilities - 129 Other debt payments, excluding line of credit 490
2,165 Noncash investing and financing activities:
Acquisition of property and equipment
under capital lease and installment payment arrangements
- 2,157 ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY AND
RECONCILIATION TO OPERATING CASH FLOW (Unaudited) (Dollars in
thousands)
06/30/12 09/30/12
12/31/12 03/31/13 YTD FY2013 06/30/13
TTM 6/30/12 TTM 6/30/13 Net cash provided
(used) by operating activities (1,867 ) 39,235 38,543 74,221
150,132 16,849 194,830 168,848 Less: Disposition of
operations - - - - - - 72,425 - Capitalized software (3,673 )
(4,074 ) (5,443 ) (6,689 ) (19,879 ) (5,954 ) (8,406 ) (22,160 )
Capital expenditures (3,538 ) (8,178 ) (10,260 ) (16,515 ) (38,491
) (8,920 ) (42,552 ) (43,873 ) Data acquisition costs (2,302 )
(1,396 ) (2,766 ) (2,106 ) (8,570 ) (1,961 ) (11,838 ) (8,229 )
Payments on capital leases and installment payment arrangements
(4,562 ) (4,384 ) (4,002 ) (3,566 ) (16,514 ) (4,400 ) (18,099 )
(16,352 ) Payments on software and data license liabilities (129 )
(130 ) (78 ) (1,432 ) (1,769 ) - (2,678 ) (1,640 ) Other required
debt payments (2,165 ) (2,168 ) (2,172
) (2,083 ) (8,588 ) (490 ) (8,643 )
(6,913 ) Total (18,236 ) 18,905
13,822 41,830
56,321 (4,876 ) 175,039
69,681 CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Dollars in thousands, except earnings per share)
Q1 FY14 to Q1 FY13 06/30/12
09/30/12 12/31/12 03/31/13
YTD FY2013 06/30/13 % $ Revenue: Marketing and
data services 192,482 198,602 195,146 202,510 788,740 187,793 -2.4
% (4,689 ) IT Infrastructure management services 70,290 70,061
69,916 65,202 275,469 69,385 -1.3 % (905 ) Other services 8,887
8,804 8,040
9,419 35,150 9,015 1.4 %
128 Total revenue 271,659 277,467 273,102
277,131 1,099,359 266,193 -2.0 % (5,466 ) Operating costs
and expenses: Cost of revenue 209,311 209,164 208,848 213,317
840,640 202,412 -3.3 % (6,899 ) Selling, general and administrative
36,764 38,063 37,482 41,681 153,990 39,709 8.0 % 2,945 Gains,
losses and other items, net 160 32
(126 ) 1,944 2,010
- -100.0 % (160 ) Total
operating costs and expenses 246,235 247,259 246,204 256,942
996,640 242,121 -1.7 % (4,114 ) Income from operations
25,424 30,208 26,898 20,189 102,719 24,072 -5.3 % (1,352 )
%
Margin 9.4 % 10.9 % 9.8
% 7.3 % 9.3 % 9.0
% Other expense Interest expense (3,240 ) (3,317 ) (3,178 )
(2,959 ) (12,694 ) (3,019 ) 6.8 % 221 Other, net (547 )
(54 ) 565 188
152 104 119.0 % 651
Total other expense (3,787 ) (3,371 ) (2,613 ) (2,771 )
(12,542 ) (2,915 ) -23.0 % 872 Earnings before income taxes
21,637 26,837 24,285 17,418 90,177 21,157 -2.2 % (480 ) Income
taxes 8,438 10,465 9,836
4,319 33,058 8,062
-4.5 % (376 ) Net earnings 13,199
16,372 14,449
13,099 57,119 13,095
-0.8 % (104 )
Less: Net loss attributable to
noncontrolling interest
(134 ) (139 ) (76 ) (139
) (488 ) (85 ) 36.6 % 49
Net earnings attributable to Acxiom 13,333
16,511 14,525 13,238
57,607 13,180 -1.1 %
(153 )
Diluted earnings per share - net earnings
attributable to Acxiom stockholders
0.17 0.21 0.19
0.18 0.75 0.17 0.0
% 0.00 ACXIOM CORPORATION AND
SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)
Q1 FY14 to Q1 FY13 06/30/12
09/30/12 12/31/12 03/31/13
YTD FY2013 06/30/13 % $ Revenue:
Marketing and data services 192,482 198,602 195,146 202,510 788,740
187,793 -2 % (4,689 ) IT Infrastructure management services 70,290
70,061 69,916 65,202 275,469 69,385 -1 % (905 ) Other services
8,887 8,804 8,040
9,419 35,150 9,015
1 % 128 Total revenue 271,659
277,467 273,102
277,131 1,099,359 266,193
-2 % (5,466 ) Marketing and data
services 18,703 22,262 18,186 20,866 80,017 12,657 -32 % (6,046 )
IT Infrastructure management services 8,831 8,520 9,622 2,357
29,330 10,761 22 % 1,930 Other services (1,950 ) (542 ) (1,036 )
(1,090 ) (4,618 ) 654 134 % 2,604 Corporate (160 )
(32 ) 126 (1,944 )
(2,010 ) - 100 % 160 Total
income from operations 25,424 30,208
26,898 20,189
102,719 24,072 -5 % (1,352 )
Margin: Marketing and data services 9.7 % 11.2 % 9.3
% 10.3 % 10.1 % 6.7 % IT Infrastructure management services 12.6 %
12.2 % 13.8 % 3.6 % 10.6 % 15.5 % Other services -21.9 % -6.2 %
-12.9 % -11.6 % -13.1 % 7.3 % Total 9.4 % 10.9 % 9.8 % 7.3 %
9.3 % 9.0 %
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20130731006389/en/
Acxiom (NASDAQ:ACXM)
Historical Stock Chart
From Sep 2024 to Oct 2024
Acxiom (NASDAQ:ACXM)
Historical Stock Chart
From Oct 2023 to Oct 2024