Expects AOS and LiveRamp to Generate
Approximately $60M in Revenue for FY15
Reiterates Overall Full Year Guidance
Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and
software-as-a-service Company, today announced financial results
for its third quarter ended December 31, 2014.
Third Quarter Financial Highlights
Total revenue was down 3% compared to the third quarter of
fiscal 2014 as a result of expected IT Infrastructure Management
declines.
- Marketing and Data Services revenue was
$208 million, up 1% compared to the third quarter of fiscal
2014.
- Combined AOS and LiveRamp revenue was
$21 million, up approximately 40% compared to the second quarter of
fiscal 2015.
- Gross media spend enabled by the AOS
platform was $73 million, up 265% compared to the prior year period
and up 97% compared to the second quarter of fiscal 2015.
- IT Infrastructure Management revenue
was down approximately 16% compared to the same period a year
ago.
GAAP operating income and diluted earnings per share were
down due to expenses associated with business separation and
transformation activities, non-cash compensation and acquired
intangible asset amortization, as well as declines in IT
Infrastructure Management.
- Net earnings per diluted share from
continuing operations were $0.06 compared to earnings per share of
$0.19 a year ago. Earnings per share in the prior year period were
positively impacted by a tax adjustment resulting in a $0.04
improvement. Unusual items, non-cash compensation and intangible
asset amortization impacted GAAP earnings per share by $0.17 in the
quarter. Unusual items included expenses associated with the
Company’s restructuring activities and separation and
transformation initiatives.
- Operating cash flow from continuing
operations was $111 million for the trailing twelve months, down
43% compared to the same period a year ago. Free cash flow to
equity was $1 million for the trailing twelve-month period compared
to $103 million for the comparable period. The decline was
primarily due to changes in working capital, and to a lesser
extent, cash restructuring and business transformation
expenditures.
Non-GAAP operating income and diluted earnings per share were
down as a result of the declines in the IT Infrastructure
Management business.
- Non-GAAP diluted earnings per share
were $0.23 compared to $0.27 a year ago. Earnings per share in the
prior year period were positively impacted by a tax adjustment
resulting in a $0.04 improvement.
- Non-GAAP operating income was $30
million, down from $32 million for the same period last year.
- Non-GAAP Marketing and Data Services
operating margin was roughly 12%, flat compared to the third
quarter of fiscal 2014.
Our non-GAAP results exclude unusual items, non-cash
compensation and acquired intangible asset amortization. A
reconciliation between GAAP and non-GAAP results is attached to
this release.
“While we continue to strengthen our Marketing and Data Services
business, we are experiencing great momentum with AOS and
LiveRamp,” said Acxiom CEO Scott Howe. “We added 25 new AOS and
LiveRamp customers during the quarter, more than doubled our
subscription revenue year-over-year and expect to exit FY15 with a
revenue run-rate of roughly $80 million. Data-driven marketing is
still in the early innings, and we are pleased to be at the
forefront of powering this trend.”
Third Quarter Business Highlights
- Acxiom signed several Marketing and
Data Services agreements during the quarter including new
database contracts with Payless ShoeSource and Guardian Media
Group, as well as renewals with a major telecommunications company
and a leading insurance firm.
- The Company signed 25 new AOS and
LiveRamp agreements during the quarter. The AOS and LiveRamp
client roster now totals 195 and includes 22 Fortune 100
companies.
- LiveRamp expanded its strategic
partnership with Datalogix, which now runs through the end of
2017. Datalogix will continue to leverage LiveRamp as an important
partner for data onboarding services used to connect its syndicated
and custom segments and its clients’ first-party data assets to
digital media.
- Acxiom data is now being distributed
to more than 20 partners, including most of the major demand
side platforms and leading enterprise software companies. In the
quarter, Acxiom joined the Salesforce Analytics Cloud Ecosystem to
provide consumer recognition, data assets and value-added analytic
insights to Salesforce users.
- Acxiom extended the duration of its
existing share repurchase program for an additional year, through
November 12, 2015. The Company did not repurchase any shares in
the quarter. Since inception of the share repurchase program in
August 2011, Acxiom has repurchased 12.9 million shares, or
approximately 16% of the outstanding common stock, for $202
million.
Financial Outlook
Our guidance includes the impact of the LiveRamp acquisition but
excludes the impact of unusual items, non-cash compensation and
acquired intangible asset amortization. Acxiom’s estimates for
fiscal 2015 are as follows:
- We continue to expect revenue from
continuing operations for the fiscal year to be down roughly 4%
compared to fiscal year 2014. The decline in revenue is primarily
due to the impact of lost IT Infrastructure Management customers
and the exit of our analog paper survey business in Europe.
- We continue to expect earnings per
diluted share to be in the range of $0.73 to $0.78.
Conference Call
Acxiom will hold a conference call at 3:30 p.m. CT 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.
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 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. 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 the expected
revenue from the LiveRamp transaction may not be realized within
the expected timeframe; 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 or cancel 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; 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 anticipated 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, 2014, which
was filed with the Securities and Exchange Commission on May 28,
2014.
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 December 31, $ % 2014 2013 Variance Variance
Revenue: Marketing and data services 208,246 206,662 1,584
0.8 % IT Infrastructure management services 52,194 62,099
(9,905 ) (16.0 %) Total revenue 260,440 268,761 (8,321 )
(3.1 %) Operating costs and expenses: Cost of revenue
203,728 201,430 2,298 1.1 % Selling, general and administrative
47,345 43,383 3,962 9.1 % Gains, losses and other items, net 4,175
4,657 (482 ) (10.4 %) Total operating costs
and expenses 255,248 249,470 5,778 2.3 %
Income from operations 5,192 19,291 (14,099 ) (73.1
%) %
Margin 2.0 % 7.2 % Other
income (expense): Interest expense (2,610 ) (3,114 ) 504 16.2 %
Other, net (34 ) 1,484 (1,518 ) (102.3 %) Total other
income (expense) (2,644 ) (1,630 ) (1,014 ) (62.2 %)
Earnings from continuing operations before income taxes 2,548
17,661 (15,113 ) (85.6 %) Income taxes (1,926 ) 3,083
(5,009 ) (162.5 %) Net earnings from continuing operations
4,474 14,578 (10,104 ) (69.3 %) Earnings (loss) from
discontinued operations, net of tax (318 ) 489 (807 ) (165.0
%) Net earnings 4,156 15,067 (10,911 ) (72.4 %) Less:
Net earnings attributable to noncontrolling interest - -
- - Net earnings attributable to Acxiom 4,156
15,067 (10,911 ) (72.4 %) Basic earnings per share:
Net earnings from continuing operations 0.06 0.19 (0.13 ) (69.4 %)
Earnings from discontinued operations - 0.01 (0.01 )
0.0 % Net earnings 0.05 0.20 (0.15 ) (75.0 %)
Net earnings attributable to Acxiom stockholders 0.05 0.20
(0.15 ) (73.0 %) Diluted earnings per share:
Net earnings from continuing operations 0.06 0.19 (0.13 ) (69.9 %)
Earnings from discontinued operations - 0.01 (0.01 )
0.0 % Net earnings 0.05 0.19 (0.14 ) (73.7 %)
Net earnings attributable to Acxiom stockholders 0.05 0.19
(0.14 ) (72.1 %)
ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) (Dollars in thousands, except earnings per
share) For the Nine Months Ended December 31, $ %
2014 2013 Variance Variance Revenue: Marketing and
data services 599,177 595,407 3,770 0.6 % IT Infrastructure
management services 163,515 198,309 (34,794 ) (17.5
%) Total revenue 762,692 793,716 (31,024 ) (3.9 %) Operating
costs and expenses: Cost of revenue 601,349 596,642 4,707 0.8 %
Selling, general and administrative 144,766 123,857 20,909 16.9 %
Gains, losses and other items, net 12,556 11,241
1,315 11.7 % Total operating costs and expenses 758,671
731,740 26,931 3.7 % Income (loss) from
operations 4,021 61,976 (57,955 ) (93.5 %) %
Margin 0.5 % 7.8 % Other income
(expense): Interest expense (7,576 ) (9,113 ) 1,537 16.9 % Other,
net (562 ) 1,238 (1,800 ) (145.4 %) Total other
income (expense) (8,138 ) (7,875 ) (263 ) (3.3 %) Earnings
(loss) from continuing operations before income taxes (4,117 )
54,101 (58,218 ) (107.6 %) Income taxes (1,023 ) 17,582
(18,605 ) (105.8 %) Net earnings (loss) from
continuing operations (3,094 ) 36,519 (39,613 ) (108.5 %)
Earnings (loss) from discontinued operations, net of tax (1,898 )
1,507 (3,405 ) (225.9 %) Net earnings (loss) (4,992 )
38,026 (43,018 ) (113.1 %) Less: Net loss attributable to
noncontrolling interest - (60 ) 60 100.0 % Net
earnings (loss) attributable to Acxiom (4,992 ) 38,086
(43,078 ) (113.1 %) Basic earnings (loss) per share: Net
earnings (loss) from continuing operations (0.04 ) 0.49 (0.53 )
(108.2 %) Earnings (loss) from discontinued operations (0.02 ) 0.02
(0.04 ) (200.0 %) Net earnings (loss) (0.06 ) 0.51
(0.57 ) (111.8 %) Net earnings (loss) attributable to Acxiom
stockholders (0.06 ) 0.51 (0.57 ) (112.7 %)
Diluted earnings (loss) per share: Net earnings (loss) from
continuing operations (0.04 ) 0.48 (0.52 ) (108.4 %) Earnings
(loss) from discontinued operations (0.02 ) 0.02 (0.04 )
(200.0 %) Net earnings (loss) (0.06 ) 0.50 (0.56 ) (112.0 %)
Net earnings (loss) attributable to Acxiom stockholders
(0.06 ) 0.50 (0.56 ) (113.0 %)
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 Nine
Months Ended December 31, December 31, 2014 2013 2014 2013
Earnings (loss) from continuing operations before income
taxes 2,548 17,661 (4,117 ) 54,101 Income taxes (1,926 )
3,083 (1,023 ) 17,582 Net earnings (loss) from
continuing operations 4,474 14,578 (3,094 ) 36,519 Earnings
(loss) from discontinued operations, net of tax (318 ) 489
(1,898 ) 1,507 Net earnings (loss) 4,156 15,067
(4,992 ) 38,026 Less: Net earnings (loss) attributable to
noncontrolling interest - - - (60 ) Net
earnings (loss) attributable to Acxiom 4,156 15,067
(4,992 ) 38,086 Earnings (loss) per share
attributable to Acxiom stockholders: Basic 0.05 0.20
(0.06 ) 0.51 Diluted 0.05 0.19
(0.06 ) 0.50 Unusual items: Legal settlement accruals
- 1,000 - 4,200 Purchased intangible asset amortization 3,783 62
7,667 272 Live Ramp acquisition costs - - 820 - Non-cash stock
compensation 8,582 3,455 20,538 10,344 Restructuring charges and
other adjustments 4,175 3,657 11,737 7,041 Separation and
transformation costs 8,116 4,897 29,444 7,083 Gain on investment
(other income) - (2,567 ) - (2,567 ) Total
unusual items, continuing operations 24,656 10,504
70,206 26,373
Earnings from continuing operations before
income taxes and excluding unusual items
27,204 28,165 66,089 80,474 Income taxes 8,977 6,979
23,947 27,541 Non-GAAP earnings from
continuing operations 18,227 21,186 42,142 52,933 Earnings
from discontinued operations, net of tax - - -
- Non-GAAP net earnings 18,227 21,186 42,142 52,933
Less: Net loss attributable to noncontrolling interest -
- - (60 ) Non-GAAP Net earnings
attributable to Acxiom 18,227 21,186 42,142
52,993 Non-GAAP earnings per share attributable to
Acxiom stockholders: Basic 0.24 0.28 0.55
0.71 Diluted 0.23 0.27 0.54
0.69 Basic weighted average shares 77,039
75,009 76,998 74,155 Diluted
weighted average shares 78,302 77,839 78,316
76,456 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 Nine Months Ended December 31, December 31, 2014 2013 2014 2013
Income from operations 5,192 19,291 4,021 61,976
Unusual items 24,656 13,071 70,206 28,940 Income from
operations before unusual items 29,848 32,362 74,227 90,916
ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS
PER SHARE (Unaudited) (In thousands, except earnings per share)
For the Three Months Ended
December 31, December 31, 2014 2013 Basic earnings per share
from continuing operations: Numerator - net earnings 4,474 14,578
Denominator - weighted-average shares outstanding 77,039 75,009
Basic earnings per share 0.06 0.19 Basic earnings per share
- net earnings attributable to Acxiom stockholders: Numerator - net
earnings attributable to Acxiom 4,156 15,067 Denominator -
weighted-average shares outstanding 77,039 75,009 Basic earnings
per share - net earnings attributable to Acxiom stockholders 0.05
0.20 Diluted earnings per share from continuing operations:
Numerator - net earnings 4,474 14,578 Denominator -
weighted-average shares outstanding 77,039 75,009 Dilutive effect
of common stock options, warrants and restricted stock 1,263 2,830
78,302 77,839 Diluted earnings per share from continuing
operations 0.06 0.19 Diluted earnings per share - net
earnings attributable to Acxiom stockholders: Numerator - net
earnings attributable to Acxiom 4,156 15,067 Denominator -
weighted-average shares outstanding 77,039 75,009 Dilutive effect
of common stock options, warrants, and restricted stock 1,263 2,830
78,302 77,839 Diluted earnings per share - net earnings
attributable to Acxiom stockholders 0.05 0.19 ACXIOM
CORPORATION AND SUBSIDIARIES CALCULATION OF EARNINGS PER SHARE
(Unaudited) (In thousands, except earnings per share)
For the Nine Months Ended December 31,
December 31, 2014 2013 Basic earnings (loss) per share from
continuing operations: Numerator - net earnings (loss) (3,094)
36,519 Denominator - weighted-average shares outstanding 76,998
74,155 Basic earnings (loss) per share (0.04) 0.49 Basic
earnings (loss) per share - net earnings (loss) attributable to
Acxiom stockholders: Numerator - net earnings (loss) attributable
to Acxiom (4,992) 38,086 Denominator - weighted-average shares
outstanding 76,998 74,155 Basic earnings (loss) per share - net
earnings (loss) attributable to Acxiom stockholders (0.06) 0.51
Diluted earnings (loss) per share from continuing
operations: Numerator - net earnings (loss) (3,094) 36,519
Denominator - weighted-average shares outstanding 76,998 74,155
Dilutive effect of common stock options, warrants and restricted
stock - 2,301 76,998 76,456 Diluted earnings (loss) per
share from continuing operations (0.04) 0.48 Diluted
earnings (loss) per share - net earnings (loss) attributable to
Acxiom stockholders: Numerator - net earnings (loss) attributable
to Acxiom (4,992) 38,086 Denominator - weighted-average
shares outstanding 76,998 74,155 Dilutive effect of common stock
options, warrants, and restricted stock - 2,301 76,998 76,456
Diluted earnings (loss) per share - net earnings (loss)
attributable to Acxiom stockholders (0.06) 0.50
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited)
(Dollars in thousands) For the Three
Months Ended December 31, December 31,
Revenue: 2014
2013 Marketing and data services 208,246 206,662 IT
Infrastructure management services 52,194 62,099
Total revenue 260,440 268,761
Income from continuing operations: Marketing and data
services 13,703 22,529 IT Infrastructure management services 3,780
6,316 Corporate (12,291 ) (9,554 ) Total income from
continuing operations 5,192 19,291
Margin: Marketing and data services 6.6 % 10.9 % IT
Infrastructure management services 7.2 % 10.2 % Total margin
2.0 % 7.2 % ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)
For the Nine Months Ended December 31,
December 31,
Revenue: 2014 2013 Marketing and data
services 599,177 595,407 IT Infrastructure management services
163,515 198,309 Total revenue 762,692
793,716
Income from continuing
operations: Marketing and data services 33,372 51,256 IT
Infrastructure management services 12,649 29,044 Corporate (42,000
) (18,324 ) Total income from continuing operations 4,021
61,976
Margin: Marketing and
data services 5.6 % 8.6 % IT Infrastructure management services 7.7
% 14.6 % Total margin 0.5 % 7.8 % ACXIOM
CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP
SEGMENT RESULTS (Unaudited) (Dollars in thousands, except earnings
per share) For the Three Months
Ended For the Nine Months Ended December 31, December 31, 2014 2013
2014 2013 Marketing and data services income from operations
13,703 22,529 33,372 51,256 Unusual items: Purchased
intangible asset amortization 3,783 62 7,667 272 Non-cash stock
compensation 7,971 2,685 18,334 7,927
Marketing and data services income from
operations before unusual items
25,457 25,276 59,373 59,455
Margin 12.2 % 12.2 % 9.9 % 10.0 %
IT infrastructure management services
income from operations
3,780 6,316 12,649 29,044 Unusual items: Non-cash
stock compensation 611 770 2,204 2,417
IT infrastructure management services
income from operations before unusual items
4,391 7,086 14,853 31,461 Margin 8.4 %
11.4 % 9.1 % 15.9 % ACXIOM CORPORATION AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands) December 31,
March 31, $ % 2014 2014 Variance Variance
Assets
Current assets: Cash and cash equivalents 126,891 418,586 (291,695
) (69.7 %) Trade accounts receivable, net 155,867 160,718 (4,851 )
(3.0 %) Deferred income taxes 15,809 12,870 2,939 22.8 % Refundable
income taxes 11,823 11,535 288 2.5 % Restricted cash held in escrow
31,000 - 31,000 100.0 % Other current assets 50,163 54,484 (4,321 )
(7.9 %) Assets of discontinued operations 478 7,332
(6,854 ) (93.5 %) Total current assets 392,031
665,525 (273,494 ) (41.1 %) Property and equipment
733,387 852,236 (118,849 ) (13.9 %) Less - accumulated depreciation
and amortization 516,899 635,330 (118,431 ) (18.6 %)
Property and equipment, net 216,488 216,906
(418 ) (0.2 %) Software, net of accumulated amortization
77,033 39,425 37,608 95.4 % Goodwill 572,589 358,384 214,205 59.8 %
Purchased software licenses, net of accumulated amortization 14,555
18,584 (4,029 ) (21.7 %) Other assets, net 41,257 24,477
16,780 68.6 % 1,313,953 1,323,301
(9,348 ) (0.7 %)
Liabilities and
Stockholders' Equity
Current liabilities: Current installments of long-term debt 33,269
28,567 4,702 16.5 % Trade accounts payable 33,527 36,179 (2,652 )
(7.3 %) Accrued payroll and related expenses 35,718 62,182 (26,464
) (42.6 %) Other accrued expenses 69,338 70,412 (1,074 ) (1.5 %)
Acquisition escrow payable 31,000 - 31,000 100.0 % Deferred revenue
37,944 47,638 (9,694 ) (20.3 %) Income taxes - 241 (241 ) (100.0 %)
Liabilities of discontinued operations 1,548 4,250
(2,702 ) (63.6 %) Total current liabilities 242,344
249,469 (7,125 ) (2.9 %) Long-term debt 262,761
289,043 (26,282 ) (9.1 %) Deferred income taxes 103,498
90,226 13,272 14.7 % Other liabilities 14,942 11,706 3,236
27.6 % Stockholders' equity: Common stock 12,723 12,584 139
1.1 % Additional paid-in capital 1,015,697 981,985 33,712 3.4 %
Retained earnings 597,837 602,829 (4,992 ) (0.8 %) Accumulated
other comprehensive income 9,364 13,662 (4,298 ) (31.5 %) Treasury
stock, at cost (945,213 ) (928,203 ) (17,010 ) (1.8 %) Total
stockholders' equity 690,408 682,857 7,551 1.1 %
1,313,953 1,323,301 (9,348 ) (0.7 %)
ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)
For the Three Months Ended December 31, 2014 2013
Cash flows from operating activities: Net earnings 4,156
15,067 Loss (earnings) from discontinued operations, net of tax 318
(489 ) Non-cash operating activities: Depreciation and amortization
29,285 25,457 Gain on disposal or impairment of assets - (2,567 )
Loss on early extinguishment of debt - 664 Deferred income taxes
4,002 (3,138 ) Non-cash stock compensation expense 8,582 3,455
Changes in operating assets and liabilities: Accounts receivable
(1,080 ) 8,806 Other assets 3 6,925 Deferred costs (105 ) (89 )
Accounts payable and other liabilities (4,873 ) 7,118 Deferred
revenue 2,376 2,582 Net cash provided by operating
activities 42,664 63,791 Cash flows from investing
activities: Capitalized software (4,408 ) (5,495 ) Capital
expenditures (13,132 ) (6,681 ) Data acquisition costs (394 )
(1,786 ) Payments from investments - 3,633 Net cash
provided (used) by investing activities (17,934 ) (10,329 ) Cash
flows from financing activities: Proceeds from debt - 300,000
Payments of debt (8,957 ) (220,934 ) Fees for debt refinancing -
(4,370 ) Sale of common stock, net of stock acquired for
withholding taxes 1,680 50,547 Acquisition of treasury stock -
(13,826 ) Acquisition of noncontrolling interest - (600 )
Net cash provided (used) by financing activities (7,277 ) 110,817
Cash flows from discontinued operations: From operating
activities 140 (19 ) From investing activities - (19 ) Net
cash provided by discontinued operations 140 (38 ) Effect of
exchange rate changes on cash (512 ) 51 Net change in
cash and cash equivalents 17,081 164,292 Cash and cash equivalents
at beginning of period 109,810 216,616 Cash and cash
equivalents at end of period 126,891 380,908
Supplemental cash flow information: Cash paid during the
period for: Interest 809 3,281 Income taxes 182 4,766 Payments on
capital leases and installment payment arrangements 930 1,675 Other
debt payments, excluding line of credit 8,027 4,259 Prepayment of
debt - 215,000 ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands) For the Nine Months Ended
December 31, 2014 2013 Cash flows from operating
activities: Net earnings (loss) (4,992 ) 38,026 Loss (earnings)
from discontinued operations, net of tax 1,898 (1,507 ) Non-cash
operating activities: Depreciation and amortization 84,971 75,698
Gain on disposal or impairment of assets - (2,567 ) Loss on early
extinguishment of debt - 664 Deferred income taxes (2,020 ) (3,666
) Non-cash stock compensation expense 20,538 10,344 Changes in
operating assets and liabilities: Accounts receivable 7,528 3,964
Other assets 3,483 6,932 Deferred costs (1,488 ) (89 ) Accounts
payable and other liabilities (29,415 ) (11,756 ) Deferred revenue
(10,180 ) 6,511 Net cash provided by operating activities
70,323 122,554 Cash flows from investing activities:
Capitalized software (14,985 ) (19,109 ) Capital expenditures
(51,529 ) (24,723 ) Data acquisition costs (1,497 ) (4,660 )
Payments from investments - 3,633 Net cash paid in acquisitions
(265,672 ) - Net cash provided (used) by investing
activities (333,683 ) (44,859 ) Cash flows from financing
activities: Proceeds from debt - 300,000 Payments of debt (19,815 )
(230,167 ) Fees for debt refinancing - (4,370 ) Sale of common
stock, net of stock acquired for withholding taxes (807 ) 69,106
Acquisition of treasury stock (9,868 ) (52,663 ) Acquisition of
noncontrolling interest - (600 ) Net cash provided (used) by
financing activities (30,490 ) 81,306 Cash flows from
discontinued operations: From operating activities 209 (1,412 )
From investing activities 2,927 (166 ) Net cash provided
(used) by discontinued operations 3,136 (1,578 ) Effect of
exchange rate changes on cash (981 ) 511 Net change
in cash and cash equivalents (291,695 ) 157,934 Cash and cash
equivalents at beginning of period 418,586 222,974
Cash and cash equivalents at end of period 126,891 380,908
Supplemental cash flow
information:
Cash paid during the period for: Interest 6,200 9,267 Income taxes
538 15,774 Payments on capital leases and installment payment
arrangements 3,249 6,914 Other debt payments, excluding line of
credit 16,566 8,253 Prepayment of debt - 215,000
ACXIOM CORPORATION AND SUBSIDIARIES CALCULATION OF FREE CASH FLOW
AVAILABLE TO EQUITY AND RECONCILIATION TO OPERATING CASH FLOW
(Unaudited) (Dollars in thousands)
06/30/13 09/30/13 12/31/13 03/31/14 YTD
FY2014 06/30/14 09/30/14 12/31/14 YTD FY2015
TTM 12/31/13 TTM 12/31/14 Net cash provided by
operating activities - continuing operations 16,508 42,255 63,791
40,687 163,241 1,867 25,792 42,664 70,323 196,417 111,010 Net cash
provided by operating activities - discontinued operations 341
(1,734 ) (19 ) 3,147 1,735 (13 ) 82 140 209 (1,054 ) 3,356
Less: Payments for investments - - 3,633 190 3,823 - - - - 3,633
190 Capitalized software (5,954 ) (7,660 ) (5,495 ) (5,408 )
(24,517 ) (4,969 ) (5,608 ) (4,408 ) (14,985 ) (25,798 ) (20,393 )
Capital expenditures (8,912 ) (9,130 ) (6,681 ) (14,409 ) (39,132 )
(19,001 ) (19,396 ) (13,132 ) (51,529 ) (40,986 ) (65,938 ) Data
acquisition costs (1,961 ) (913 ) (1,786 ) (3,085 ) (7,745 ) (635 )
(468 ) (394 ) (1,497 ) (6,766 ) (4,582 ) Discontinued operations
investing activities (8 ) (139 ) (19 ) - (166 ) 2,927 - - 2,927
(418 ) 2,927 Payments on capital leases and installment payment
arrangements (2,900 ) (2,339 ) (1,675 ) (1,465 ) (8,379 ) (1,235 )
(1,084 ) (930 ) (3,249 ) (10,480 ) (4,714 ) Other required debt
payments (1,990 ) (2,004 ) (4,259 ) (4,263 )
(12,516 ) (4,267 ) (4,272 ) (8,027 )
(16,566 ) (11,768 ) (20,829 ) Total (4,876 )
18,336 47,490 15,394
76,344 (25,326 ) (4,954 ) 15,913
(14,367 ) 102,780 1,027
ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) (Dollars in thousands, except earnings per
share)
Q3 FY15 to Q3 FY14 06/30/13 09/30/13
12/31/13 03/31/14 YTD FY2014 06/30/14 09/30/14
12/31/14 YTD FY2015 % $ Revenue: Marketing and
data services 187,793 200,952 206,662 209,746 805,153 186,683
204,248 208,246 599,177 0.8 % 1,584 IT Infrastructure management
services 69,385 66,825 62,099
58,816 257,125 55,532
55,789 52,194 163,515 -16.0 %
(9,905 ) Total revenue 257,178 267,777 268,761 268,562
1,062,278 242,215 260,037 260,440 762,692 -3.1 % (8,321 )
Operating costs and expenses: Cost of revenue 196,105 199,107
201,430 198,920 795,562 192,303 205,318 203,728 601,349 1.1 % 2,298
Selling, general and administrative 37,615 42,859 43,383 45,519
169,376 46,938 50,483 47,345 144,766 9.1 % 3,962 Impairment of
goodwill and other - - - 24,953 24,953 - - - 0 - - Gains, losses
and other items, net - 6,584 4,657
10,673 21,914 7,452
929 4,175 12,556 -10.4 %
(482 ) Total operating costs and expenses 233,720
248,550 249,470 280,065 1,011,805 246,693 256,730 255,248 758,671
2.3 % 5,778 Income (loss) from operations 23,458 19,227
19,291 (11,503 ) 50,473 (4,478 ) 3,307 5,192 4,021 -73.1 % (14,099
)
% Margin 9.1 % 7.2 %
7.2 % -4.3 % 4.8 %
-1.8 % 1.3 % 2.0 %
0.5 % Other expense Interest expense (3,019 ) (2,980
) (3,114 ) (2,558 ) (11,671 ) (2,571 ) (2,395 ) (2,610 ) (7,576 )
16.2 % 504 Other, net 104 (350 ) 1,484
579 1,817 (413 ) (115 )
(34 ) (562 ) -102.3 % (1,518 ) Total other expense
(2,915 ) (3,330 ) (1,630 ) (1,979 ) (9,854 ) (2,984 ) (2,510 )
(2,644 ) (8,138 ) 62.2 % (1,014 ) Earnings (loss) from
continuing operations before income taxes 20,543 15,897 17,661
(13,482 ) 40,619 (7,462 ) 797 2,548 (4,117 ) -85.6 % (15,113 )
Income taxes 8,040 6,459 3,083
12,045 29,627 (1,390 ) 2,293
(1,926 ) (1,023 ) -162.5 % (5,009 )
Net earnings (loss) from continuing operations 12,503 9,438
14,578 (25,527 ) 10,992 (6,072 ) (1,496 ) 4,474 (3,094 ) -69.3 %
(10,104 ) Earnings (loss) from discontinued operations, net
of tax 592 426 489 (3,696
) (2,189 ) (1,532 ) (48 ) (318 ) (1,898
) -165.0 % (807 ) Net earnings (loss) 13,095 9,864
15,067 (29,223 ) 8,803 (7,604 ) (1,544 ) 4,156 (4,992 ) -72.4 %
(10,911 )
Less: Net gain (loss) attributable to
noncontrolling interest
(85 ) 25 - - (60 )
- - - - -
- Net earnings (loss) attributable to Acxiom
13,180 9,839 15,067
(29,223 ) 8,863 (7,604 ) (1,544 ) 4,156
(4,992 ) -72.4 % (10,911 )
Diluted earnings (loss) per share - net
earnings (loss) attributable to Acxiom stockholders
0.17 0.13 0.19 (0.38 )
0.12 (0.10 ) (0.02 ) 0.05
(0.06 ) -73.7 % (0.14 ) ACXIOM CORPORATION AND
SUBSIDIARIES RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)
Q3 FY15 to Q3 FY14 06/30/13 09/30/13
12/31/13 03/31/14 YTD FY2014 06/30/14 09/30/14
12/31/14 YTD FY2015 % $
Revenue: Marketing and data
services 187,793 200,952 206,662 209,746 805,153 186,683 204,248
208,246 599,177 1 % 1,584 IT Infrastructure management services
69,385 66,825 62,099
58,816 257,125 55,532 55,789
52,194 163,515 -16 %
(9,905 ) Total revenue 257,178 267,777
268,761 268,562 1,062,278
242,215 260,037 260,440
762,692 -3 % (8,321 ) Income from continuing
operations: Marketing and data services 12,697 16,030 22,529
27,244 78,500 10,272 9,397 13,703 33,372 -39 % (8,826 ) IT
Infrastructure management services 10,761 11,967 6,316 3,803 32,847
4,739 4,130 3,780 12,649 -40 % (2,536 ) Corporate -
(8,770 ) (9,554 ) (42,550 ) (60,874 ) (19,489
) (10,220 ) (12,291 ) (42,000 ) -29 %
(2,737 ) Total income (loss) from continuing operations
23,458 19,227 19,291
(11,503 ) 50,473 (4,478 ) 3,307
5,192 4,021 -73 % (14,099 )
Margin: Marketing and data services 6.8 % 8.0 % 10.9 % 13.0
% 9.7 % 5.5 % 4.6 % 6.6 % 5.6 % IT Infrastructure management
services 15.5 % 17.9 % 10.2 % 6.5 % 12.8 % 8.5 % 7.4 % 7.2 % 7.7 %
Total 9.1 % 7.2 % 7.2 % -4.3 % 4.8 % -1.8 % 1.3 % 2.0 % 0.5
%
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20150204006141/en/
AcxiomInvestor Relations:Lauren Dillard,
650-372-2242investor.relations@acxiom.comEACXM
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