Acxiom Announces Fourth-Quarter and Fiscal Year 2008 Results
May 14 2008 - 3:57PM
Business Wire
Acxiom� Corporation (Nasdaq: ACXM) today announced financial
results for the fourth quarter and fiscal year end ended March 31,
2008. Acxiom will hold a conference call at 4:30 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. The company will host an investor day June 17 in
New York. Details will be made available on the Acxiom website.
Revenue for the fourth quarter was $349.8 million compared to
$356.4 million in the fourth quarter of fiscal 2007. Operating loss
for the quarter was $76.0 million and loss per diluted share was
$0.76. The results for the quarter include the impact of $107.2
million of restructuring and other items (of which $104.5 million
are included in the loss from operations, with the remainder
included in other expense), which contributed to the loss by the
equivalent of $0.91 per diluted share. For the 12-month period
ended March 31, 2008, revenue totaled $1.384 billion compared to
$1.391 billion in the prior year. Income from operations for the 12
month period was $40.2 million compared to $154.1 million a year
ago. Loss per diluted share was $0.10 compared to earnings per
diluted share of $0.80 in the prior year. The loss per diluted
share includes the impact of $84.2 million, or the equivalent of
$0.70 per diluted share, of expense from unusual items. A schedule
is linked to this release outlining the restructuring and other
items impacting the fourth quarter and the year end results.
According to John Meyer, Acxiom Corp. CEO and President, �During my
first 90 days I have focused on meeting our customers and our
people, rationalizing costs and gaining a deeper understanding of
our offerings and value propositions. I have also made a number of
leadership and role changes. �We are working to develop strategic
and operational plans to help overcome the current challenges we
are facing in some industry sectors and to provide a springboard
for growth in future years. The initial focus will be on our
customers and potential customers, leveraging our capabilities and
assets across all industries we serve, and creating a winning
market-facing culture. We already have a very strong foundation to
do that. I believe in this opportunity now even more than when I
was evaluating coming on board.� Restatement, Restructuring and
other items The Company is restating its financial statements for
2007, 2006, and prior years to correct its accounting related to
accrued service revenue. The impact of this restatement will be a
reduction in net income of $2.4 million in 2006 and $2.9 million in
2007. Accrued revenue, which is reflected in accounts receivable,
will be reduced by a total of $52.2 million. Fourth-quarter loss
per diluted share of $.76 includes $107.2 million or the equivalent
of $0.91 per share in unusual expenses. The major components of the
restructuring and other items are: Gains, losses and other - $74.5
million composed of: Restructuring charges - $42.9 million related
to headcount reduction, real estate closure, contract termination;
Closing operations - $13.5 million related to previously acquired
operations and the flight department; Asset disposal/impairment -
$15.0 million, primarily software; Other � $3.1 million related to
legal, international and other; IT contract restructuring - $34.0
million reflected as increase in cost of services; Loss on
investment - $2.7 million reflected in Other, net; Accrued revenue
restatement - $.4.0 million increase in revenue. Of the $107.2
million in restructuring and other items, approximately $59.2
million represents balance sheet assets written down that do not
require cash outlays. Approximately $48.0 million represents
estimated cash payments to be made on obligations primarily related
to headcount reductions, real estate and facilities lease
terminations and an aircraft lease termination. The $48 million
includes obligations of approximately $34 million to be paid in
fiscal 2009, with the remainder in future periods. Details of
Acxiom�s fourth-quarter results include: Revenue of $349.8 million
compared to $356.4 million in the fourth quarter a year ago; Loss
from operations of $76.0 million compared to income from operations
of $28.4 million in the fourth quarter last year; Loss from
operations this quarter included $107.2 million of restructuring
and other items; Loss per diluted share of $0.76 compared to
earnings per share of $0.07 in the fourth quarter of fiscal 2008;
included in the loss per share of $0.76 is the negative impact of
restructuring and other items which was the equivalent of $.91 per
diluted share; Operating cash flow of $90.5 million compared to
$76.5 million in the fourth quarter a year ago; Free cash flow
available to equity of $14.7 million compared to $15.4 million 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 press release. Details of
Acxiom�s fiscal year results include: Revenue of $1.384 billion
compared to $1.390 billion in the prior year; Income from
operations of $40.2 million in 2008 compared to $154.1 million in
fiscal 2007; Loss per diluted share of $0.10 compared to earnings
per diluted share of $0.80 in fiscal 2007; net restructuring and
other items for the year were $84.2 million, or the equivalent of
$0.70 per diluted share; In addition to the restructuring and other
items in the fourth quarter detailed above, the company had a
benefit of a net gain of $22.9 million comprised of: Gains from a
merger termination payment and sale of assets of $68.2 million;
Restructuring costs, transaction costs, retirement and loss on sale
of assets of $30.0 million; Additional contract impairment in cost
of services of $10.0 million; Reduction in revenue related to
accrued revenue restatement to previous quarters of $5.2 million;
Operating cash flow of $300.3 million compared to $260.0 million in
the prior year; Free cash flow available to equity of $77.5 million
compared to $55.2 million 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
press release. 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 $189.7 million, up 0.8
percent from the fourth quarter of the previous year. For the 12
months ended March 31, 2008, revenue was $741.3 million, up 1.8
percent from the previous year. Operating income for the quarter
was $24.1 million, down 7.7 percent from the third quarter of the
previous year. For the 12 months just ended, operating income was
$97.2 million, down 22.0 percent from the previous 12-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 $115.2 million, up 5.2 percent from the
fourth quarter of the previous year. For the 12 months ended March
31, 2008, revenue was $431.3 million, up 3.8 percent from the
previous year. Operating income for the quarter was $13.1 million,
up 45.9 percent from the fourth quarter of the previous year. For
the 12 months just ended, operating income was $23.8 million, up
25.7 percent from the previous 12-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 $108.2 million, down 8.8
percent from the fourth quarter of the previous year. For the 12
months ended March 31, 2008, revenue was $447.5 million, down 6.1
percent from the previous year. Operating income for the quarter
was $8.3 million, down 16.1 percent from the fourth quarter of the
previous year. For the 12 months just ended, operating income was
$44.3 million, down 10.3 percent from the previous 12-month period.
Investor Day As mentioned above, the company will be hosting an
investor day on June 17 and providing a forecast for fiscal 2009 at
that time. Company management will also discuss operations and
prospects at the investor day. The event will be held at the NASDAQ
facilities in New York and will be web cast. Further information
will be made available on our website at www.acxiom.com. Web Link
to Financials http://www.acxiom.com/FY08_Q4_Financials is a link to
the detailed financial information we typically attach to our
earnings releases. About Acxiom Corporation At Acxiom, we make
information intelligent for many of the world�s leading and most
dynamic companies, enabling them to acquire new customers, retain
their most valuable customers, communicate with customers in the
methods and at the times they prefer, and make profitable marketing
and business decisions. Acxiom�s unmatched customer insight is
achieved by blending the world�s largest repository of consumer
data, award-winning technology and analytics, multi-channel
expertise, privacy leadership, and superior knowledge of a wide
spectrum of industries. Founded in 1969, Acxiom (Nasdaq: ACXM) is
headquartered in Little Rock, Arkansas, with locations throughout
the United States and Europe, and in Australia and China. For more
information about Acxiom, visit www.acxiom.com. This release and
today�s conference call may contain certain forward-looking
statements that are subject to certain risks and uncertainties.
Actual results may differ materially from those expressed or
implied in the forward-looking statements and reported results
should not be considered an indication of future performance.
Important factors that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements are detailed under the section titled �Risk Factors� and
elsewhere in filings with the Securities and Exchange Commission
made from time to time by Acxiom, including, but not limited to:
its annual report on Form 10-K filed on May 30, 2007 and 10-K/A on
July 30, 2007; recent quarterly reports on Form 10-Q; and other
current reports on Form 8-K. Acxiom undertakes no obligation to
release publicly any revisions to any forward-looking statements to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events. This release and today�s
conference call contain certain forward-looking statements that are
subject to certain risks and uncertainties. Important factors that
could cause actual results to differ materially from those
expressed or implied in the forward-looking statements include, but
are not limited to, our ability to timely complete the restatement
of our historical financial results for the years ended, March 31,
2006 and March 31, 2007; the on-going review of the circumstances
surrounding such restatements and the consequences thereof; and
those additional factors detailed under the section titled �Risk
Factors� and elsewhere in filings with the Securities and Exchange
Commission made from time to time by Acxiom, including, but not
limited to: its annual report on Form 10-K filed on May 30, 2007
and 10-K/A on July 30, 2007; recent quarterly reports on Form 10-Q;
and other current reports on Form 8-K. Acxiom undertakes no
obligation to release publicly any revisions to any forward-looking
statements to reflect events or circumstances after the date hereof
or to reflect the occurrence of unanticipated events. Acxiom is a
registered trademark of Acxiom Corporation.
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