Connectivity Revenue Increases 65%
Year-over-Year
Total US Revenue Grows 6%
Year-over-Year
Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and
software-as-a-service company, today announced financial results
for its second quarter ended September 30, 2015.
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Financial Highlights
- Revenue: Total revenue was $207
million, up approximately 2% compared to the second quarter of last
year. US revenue of $189 million was up 6% year-over-year.
- Operating Income (Loss): GAAP
operating loss from continuing operations was $2 million compared
to a loss of $6 million in the prior year. Non-GAAP operating
income from continuing operations improved 30% to approximately $18
million compared to $14 million a year ago.
- Earnings (Loss) per Share: GAAP
loss per share from continuing operations was $0.02 compared to a
net loss of $0.09 in the prior year. Non-GAAP diluted earnings per
share from continuing operations were $0.14, up 40% from $0.10 a
year ago.
- Operating Cash Flow: Operating
cash flow from continuing operations was $21 million, up from $14
million a year ago.
- Free Cash Flow to Equity: Free
cash flow to equity improved $11 million to negative $1 million.
This measure excludes cash flows related to the IT Infrastructure
Management divestiture.
Segment Results
Marketing Services and Audience Solutions
- Revenue was $185 million, down 3%
compared to the second quarter of last year. Excluding a negative
currency impact of approximately $3 million, total Marketing
Services and Audience Solutions revenue was down 2%. US revenue of
$168 million was up 2% year-over-year.
- Non-GAAP gross margin decreased from
44% to 41%.
- Non-GAAP operating income was $43
million compared to $54 million in the prior year.
- The declines were primarily driven by
International results. In addition, operating income was impacted
by continued investment in the US.
Connectivity
- Revenue was $22 million, up
approximately 65% compared to the second quarter of last year,
driven by continued onboarding momentum. Connectivity exited the
quarter with a $90 million revenue run-rate.
- Non-GAAP gross margin improved from 19%
to 62%.
- Non-GAAP operating loss improved by
approximately $11 million to a loss of roughly $1 million, driven
by growth in subscriptions and royalties.
Non-GAAP results exclude items including non-cash compensation,
purchased intangible asset amortization, and separation and
transformation costs. A reconciliation between GAAP and non-GAAP
results is attached to this release.
“Connectivity had another impressive quarter highlighted by
strong revenue growth, new customer additions and the launch of
LiveRamp Customer Link™,” said Acxiom CEO Scott Howe. “At the same
time, our Marketing Services and Audience Solutions businesses had
a number of key wins during the quarter, including several large
renewals.”
Business Highlights
- LiveRamp™ added 40 new customers
during the quarter and added over 30 new partner integrations.
Marketers can now onboard and distribute their data to a growing
network of more than 250 marketing platforms and data
providers.
- Connectivity powered $82 million of
gross media spend in the second quarter, up 122%
year-over-year. On a trailing twelve-month basis, Connectivity
powered $268 million of gross media spend, up 167% over the
comparable period.
- LiveRamp announced the launch of
Customer Link, a new software-as-a-service product that
connects campaign and sales data across channels and devices,
solving the linking challenge that prevents marketers from creating
a unified view of customer activity. Customer Link extends
LiveRamp’s suite of open connectivity services.
- Acxiom repurchased approximately
607,000 shares for $12 million during the quarter. Since
inception of the share repurchase program in August 2011, Acxiom
has repurchased 14.3 million shares for $230 million.
Financial Outlook
Acxiom’s guidance excludes the impact of unusual items, non-cash
compensation and acquired intangible asset amortization. Acxiom
reconfirms the following estimates for fiscal 2016:
- Revenue from continuing operations in
the range of $815 million to $840 million
- Non-GAAP diluted earnings per share
from continuing operations in the range of $0.45 to $0.50
Conference Call
Acxiom will hold a conference call at 4:00 p.m. CST today to
further discuss this information. Interested parties are invited to
listen to the call, which will be broadcast via the Internet at
investors.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 7,000+ global clients. For more information
about Acxiom, visit Acxiom.com.
Forward-Looking Statements
This release and today’s conference call contains
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 divisions 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 current and 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, 2015, which was filed with the Securities and Exchange
Commission on May 27, 2015.
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
(loss) per share)
For the Three Months Ended September 30, $ % 2015 2014
Variance Variance Revenues 207,345 204,248
3,097 1.5 % Cost of revenue 121,312 122,845
(1,533 ) (1.2 %) Gross profit 86,033 81,403 4,630 5.7 %
% Gross
margin 41.5 % 39.9 %
Operating expenses: Research and development 19,078 19,798 (720 )
(3.6 %) Sales and marketing 34,259 28,842 5,417 18.8 % General and
administrative 31,519 38,373 (6,854 ) (17.9 %) Gains, losses and
other items, net 3,233 833 2,400 288.1 % Total
operating expenses 88,089 87,846 243 0.3 %
Loss from operations (2,056 ) (6,443 ) 4,387 68.1 % %
Margin
-1.0 % -3.2 % Other income (expense):
Interest expense (1,956 ) (1,821 ) (135 ) (7.4 %) Other, net 59
(163 ) 222 136.2 %
Total other expense
(1,897 ) (1,984 ) 87 4.4 % Loss from continuing operations
before income taxes (3,953 ) (8,427 ) 4,474 53.1 % Income
taxes (2,608 ) (1,326 ) (1,282 ) (96.7 %) Net loss from
continuing operations (1,345 ) (7,101 ) 5,756 81.1 %
Earnings from discontinued operations, net of tax 12,068
5,557 6,511 117.2 % Net earnings (loss) 10,723
(1,544 ) 12,267 794.5 % Basic earnings (loss) per share: Net
loss from continuing operations (0.02 ) (0.09 ) 0.07 81.3 % Net
earnings from discontinued operations 0.15 0.07 0.08
114.8 % Net earnings (loss) 0.14 (0.02 ) 0.16 787.0 %
Diluted earnings (loss) per share: Net loss from continuing
operations (0.02 ) (0.09 ) 0.07 81.3 % Net earnings from
discontinued operations 0.15 0.07 0.08 114.8 % Net
earnings (loss) 0.14 (0.02 ) 0.16 787.0 % Some
earnings (loss) per share amounts may not add due to rounding
ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except
earnings (loss) per share)
For the Six Months Ended September 30, $ %
2015 2014 Variance Variance Revenues 404,240
390,931 13,309 3.4 % Cost of revenue 239,021 235,935
3,086 1.3 % Gross profit 165,219 154,996 10,223 6.6 %
%
Gross margin 40.9 % 39.6 %
Operating expenses: Research and development 39,089 36,148 2,941
8.1 % Sales and marketing 63,753 55,342 8,411 15.2 % General and
administrative 63,262 75,074 (11,812 ) (15.7 %) Gains, losses and
other items, net 4,040 7,961 (3,921 ) (49.3 %) Total
operating expenses 170,144 174,525 (4,381 ) (2.5 %)
Loss from operations (4,925 ) (19,529 ) 14,604 74.8 % %
Margin -1.2 % -5.0 % Other
income (expense): Interest expense (3,841 ) (3,769 ) (72 ) (1.9 %)
Other, net 363 (269 ) 632 234.9 % Total other expense (3,478
) (4,038 ) 560 13.9 % Loss from continuing operations before
income taxes (8,403 ) (23,567 ) 15,164 64.3 % Income taxes
(1,876 ) (5,725 ) 3,849 67.2 % Net loss from continuing
operations (6,527 ) (17,842 ) 11,315 63.4 % Earnings from
discontinued operations, net of tax 16,211 8,694
7,517 86.5 % Net earnings (loss) 9,684 (9,148 )
18,832 205.9 % Basic earnings (loss) per share: Net loss
from continuing operations (0.08 ) (0.23 ) 0.15 63.9 % Net earnings
from discontinued operations 0.21 0.11 0.10 84.2 %
Net earnings (loss) 0.12 (0.12 ) 0.24 204.6 %
Diluted earnings (loss) per share: Net loss from continuing
operations (0.08 ) (0.23 ) 0.15 63.9 % Net earnings from
discontinued operations 0.21 0.11 0.10 84.2 % Net
earnings (loss) 0.12 (0.12 ) 0.24 202.7 % Some
earnings (loss) per share amounts may not add due to rounding
ACXIOM CORPORATION AND SUBSIDIARIES RECONCILIATION OF
GAAP TO NON-GAAP EPS (Unaudited) (Dollars in thousands, except
earnings (loss) per share)
For the Three Months Ended For the Six Months
Ended September 30, September 30, 2015 2014 2015 2014
Loss from continuing operations before income taxes (3,953 ) (8,427
) (8,403 ) (23,567 ) Income taxes (2,608 ) (1,326 ) (1,876 )
(5,725 ) Net loss from continuing operations (1,345 ) (7,101
) (6,527 ) (17,842 ) Earnings from discontinued operations,
net of tax 12,068 5,557 16,211 8,694
Net earnings (loss) 10,723 (1,544 ) 9,684
(9,148 ) Earnings (loss) per share: Basic 0.14
(0.02 ) 0.12 (0.12 ) Diluted 0.14 (0.02 ) 0.12
(0.12 ) Excluded items: Purchased intangible asset
amortization (cost of revenue) 3,754 3,827 7,508 3,890 Non-cash
stock compensation (cost of revenue and operating expenses) 7,360
7,725 15,483 11,650 Restructuring charges and other adjustments
(gains, losses, and other) 3,233 833 4,040 7,961 Separation and
transformation costs (general and administrative) 6,098 8,291 9,512
18,829 Accelerated amortization (cost of revenue) 78 -
1,520 - Total excluded items,
continuing operations 20,523 20,676 38,063
42,330
Earnings from continuing operations before
income taxes and excluding items
16,570 12,249 29,660 18,763 Income taxes 5,163 4,757
10,795 7,274 Non-GAAP net earnings
11,407 7,492 18,865 11,489
Non-GAAP earnings per share: Basic 0.15 0.10
0.24 0.15 Diluted 0.14 0.10 0.24
0.15 Basic weighted average shares 77,960
77,123 77,939 76,978 Diluted
weighted average shares 79,310 78,307 79,332
78,324 ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS (LOSS) PER SHARE (Unaudited) (In thousands,
except earnings (loss) per share) For
the Three Months Ended September 30, September 30, 2015 2014
Basic loss per share from continuing operations: Numerator -
net loss (1,345 ) (7,101 ) Denominator - weighted-average
shares outstanding 77,960 77,123 Basic loss per share
(0.02 ) (0.09 ) Diluted loss per share from continuing
operations: Numerator - net loss (1,345 ) (7,101 )
Denominator - weighted-average shares outstanding 77,960
77,123 Diluted loss per share (0.02 ) (0.09 ) Basic
earnings per share from discontinued operations: Numerator - net
earnings 12,068 5,557 Denominator - weighted-average shares
outstanding 77,960 77,123 Basic earnings per share
0.15 0.07 Diluted earnings per share from
discontinued operations: Numerator - net earnings 12,068 5,557
Denominator - weighted-average shares outstanding 77,960
77,123 Dilutive effect of common stock options, warrants and
restricted stock - - 77,960 77,123
Diluted earnings per share 0.15 0.07
Diluted earnings (loss) per share: Numerator - net earnings (loss)
10,723 (1,544 ) Denominator - weighted-average shares
outstanding 77,960 77,123 Dilutive effect of common stock options,
warrants, and restricted stock - - 77,960
77,123 Diluted earnings (loss) per share 0.14
(0.02 ) ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS (LOSS) PER SHARE (Unaudited) (In thousands,
except earnings (loss) per share) For
the Six Months Ended September 30, September 30, 2015 2014
Basic loss per share from continuing operations: Numerator -
net loss (6,527 ) (17,842 ) Denominator - weighted-average
shares outstanding 77,939 76,978 Basic loss per share
(0.08 ) (0.23 ) Diluted loss per share from continuing
operations: Numerator - net loss (6,527 ) (17,842 )
Denominator - weighted-average shares outstanding 77,939
76,978 Diluted loss per share (0.08 ) (0.23 ) Basic
earnings per share from discontinued operations: Numerator - net
earnings 16,211 8,694 Denominator - weighted-average shares
outstanding 77,939 76,978 Basic earnings per share
0.21 0.11 Diluted earnings per share from
discontinued operations: Numerator - net earnings 16,211 8,694
Denominator - weighted-average shares outstanding 77,939
76,978 Dilutive effect of common stock options, warrants and
restricted stock - - 77,939 76,978
Diluted earnings per share 0.21 0.11
Diluted loss per share: Numerator - net earnings (loss) 9,684
(9,148 ) Denominator - weighted-average shares outstanding
77,939 76,978 Dilutive effect of common stock options, warrants,
and restricted stock - - 77,939 76,978
Diluted earnings (loss) per share 0.12 (0.12 )
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT-GAAP
(Unaudited) (Dollars in thousands)
For the Three Months Ended September
30, 2015 September 30, 2014 Marketing Services Marketing Services
& Audience Solutions Connectivity Corporate Total &
Audience Solutions Connectivity Corporate Total Revenues
185,101 22,244 - 207,345 190,776 13,472 - 204,248 Gross
profit (loss) 76,030 10,081 (78 ) 86,033 82,652 (1,249 ) - 81,403
% Gross margin 41.1 % 45.3 %
n/a 41.5 % 43.3 % -9.3
% n/a 39.9 % Operating income
(loss) 41,586 (10,192 ) (33,450 ) (2,056 ) 52,302 (20,277 ) (38,468
) (6,443 )
% margin 22.5 % -45.8
% n/a -1.0 % 27.4 %
-150.5 % n/a -3.2 %
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT-GAAP
(Unaudited) (Dollars in thousands)
For the Six Months Ended September 30,
2015 September 30, 2014 Marketing Services Marketing Services &
Audience Solutions Connectivity Corporate Total & Audience
Solutions Connectivity Corporate Total Revenues 361,377
42,863 - 404,240 373,125 17,806 - 390,931 Gross profit
(loss) 148,049 18,690 (1,520 ) 165,219 159,876 (4,880 ) - 154,996
% Gross margin 41.0 % 43.6 %
n/a 40.9 % 42.8 % -27.4
% n/a 39.6 % Operating income
(loss) 79,873 (18,217 ) (66,581 ) (4,925 ) 98,523 (34,538 ) (83,514
) (19,529 )
% margin 22.1 % -42.5
% n/a -1.2 % 26.4 %
-194.0 % n/a -5.0 %
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY
SEGMENT-NON-GAAP (Unaudited) (Dollars in thousands)
For the Three Months Ended
September 30, 2015 September 30, 2014 Marketing Services
Marketing Services & Audience Solutions Connectivity Corporate
Total & Audience Solutions Connectivity Corporate Total
Revenues 185,101 22,244 - 207,345 190,776 13,472 - 204,248
Gross profit 76,404 13,810 - 90,214 83,043 2,503 - 85,546
%
Gross margin 41.3 % 62.1 %
n/a 43.5 % 43.5 % 18.6
% n/a 41.9 % Operating income
(loss) 42,696 (664 ) (23,565 ) 18,467 53,556 (11,702 ) (27,621 )
14,233
% margin 23.1 % -3.0 %
n/a 8.9 % 28.1 % -86.9
% n/a 7.0 % ACXIOM
CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP
SEGMENT RESULTS (Unaudited) (Dollars in thousands)
For the Three Months Ended
September 30, 2015 September 30, 2014 Marketing Services
Marketing Services & Audience Solutions Connectivity Corporate
Total & Audience Solutions Connectivity Corporate Total
Gross profit (loss) 76,030 10,081 (78 ) 86,033 82,652 (1,249 ) -
81,403 Purchased intangible asset amortization 25 3,729 -
3,754 75 3,752 - 3,827 Non-cash stock compensation 347 - - 347 316
- - 316 Accelerated amortization - - 78 78 - - - - Restructuring
charges and other adjustments 2 -
- 2 - -
- - Gross profit
(loss) before excluded items 76,404 13,810
- 90,214 83,043
2,503 - 85,546
Operating income (loss) 41,586 (10,192 )
(33,450 ) (2,056 ) 52,302 (20,277 ) (38,468 ) (6,443 )
Purchased intangible asset amortization 25 3,729 - 3,754 75 3,752 -
3,827 Non-cash stock compensation 1,053 5,625 682 7,360 804 5,560
1,361 7,725 Restructuring charges and other adjustments 32 174
3,027 3,233 375 (737 ) 1,195 833 Separation and transformation
costs - - 6,098 6,098 - - 8,291 8,291 Accelerated amortization -
- 78 78
- - -
- Operating income (loss) before excluded
items 42,696 (664 ) (23,565 )
18,467 53,556 (11,702 )
(27,621 ) 14,233 ACXIOM
CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT-NON-GAAP
(Unaudited) (Dollars in thousands)
For the Six Months Ended September 30,
2015 September 30, 2014 Marketing Services Marketing Services &
Audience Solutions Connectivity Corporate Total & Audience
Solutions Connectivity Corporate Total Revenues 361,377
42,863 - 404,240 373,125 17,806 - 390,931 Gross profit
(loss) 148,877 26,148 - 175,025 160,602 (1,096 ) - 159,506
%
Gross margin 41.2 % 61.0 %
n/a 43.3 % 43.0 % -6.2
% n/a 40.8 % Operating income
(loss) 82,949 (837 ) (48,974 ) 33,138 100,826 (25,554 ) (52,471 )
22,801
% margin 23.0 % -2.0 %
n/a 8.2 % 27.0 % -143.5
% n/a 5.8 % ACXIOM
CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP
SEGMENT RESULTS (Unaudited) (Dollars in thousands)
For the Six Months Ended
September 30, 2015 September 30, 2014 Marketing Services Marketing
Services & Audience Solutions Connectivity Corporate Total
& Audience Solutions Connectivity Corporate Total Gross
profit (loss) 148,049 18,690 (1,520 ) 165,219 159,876 (4,880 ) -
154,996 Purchased intangible asset amortization 50 7,458 -
7,508 106 3,784 - 3,890 Non-cash stock compensation 776 - - 776 620
- - 620 Accelerated amortization - - 1,520 1,520 - - - -
Restructuring charges and other adjustments 2 -
- 2 -
- - -
Gross profit (loss) before excluded items 148,877
26,148 - 175,025
160,602 (1,096 ) -
159,506 Operating income (loss) 79,873
(18,217 ) (66,581 ) (4,925 ) 98,523 (34,538 ) (83,514 ) (19,529 )
Purchased intangible asset amortization 50 7,458 - 7,508 106
3,784 - 3,890 Non-cash stock compensation 2,967 9,748 2,768 15,483
1,811 5,937 3,902 11,650 Restructuring charges and other
adjustments 59 174 3,807 4,040 386 (737 ) 8,312 7,961 Separation
and transformation costs - - 9,512 9,512 - - 18,829 18,829
Accelerated amortization - -
1,520 1,520 - -
- - Operating
income (loss) before excluded items 82,949 (837 )
(48,974 ) 33,138 100,826
(25,554 ) (52,471 ) 22,801
ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)
September
30, March 31, $ % 2015 2015 Variance Variance
Assets
Current assets: Cash and cash equivalents 180,945 141,010 39,935
28.3 % Trade accounts receivable, net 135,894 126,896 8,998 7.1 %
Deferred income taxes 15,511 25,610 (10,099 ) (39.4 %) Refundable
income taxes 5,097 5,239 (142 ) (2.7 %) Restricted cash held in
escrow 130 31,000 (30,870 ) (99.6 %) Other current assets 37,807
34,975 2,832 8.1 % Assets of discontinued operations 2,000
172,284 (170,284 ) (98.8 %) Total current assets
377,384 537,014 (159,630 ) (29.7 %) Property
and equipment 509,573 505,721 3,852 0.8 % Less - accumulated
depreciation and amortization 333,405 329,467 3,938
1.2 % Property and equipment, net 176,168 176,254
(86 ) (0.0 %) Software, net of accumulated
amortization 59,975 68,962 (8,987 ) (13.0 %) Goodwill 495,843
497,362 (1,519 ) (0.3 %) Purchased software licenses, net of
accumulated amortization 13,037 9,551 3,486 36.5 % Other assets,
net 30,214 33,281 (3,067 ) (9.2 %) 1,152,621
1,322,424 (169,803 ) (12.8 %)
Liabilities and
Stockholders’ Equity
Current liabilities: Current installments of long-term debt 32,205
32,232 (27 ) (0.1 %) Trade accounts payable 40,798 30,094 10,704
35.6 % Accrued payroll and related expenses 32,684 36,659 (3,975 )
(10.8 %) Other accrued expenses 46,019 62,754 (16,735 ) (26.7 %)
Acquisition escrow payable 130 31,000 (30,870 ) (99.6 %) Deferred
revenue 36,051 33,620 2,431 7.2 % Liabilities of discontinued
operations 2,436 57,433 (54,997 ) (95.8 %)
Total current liabilities 190,323 283,792 (93,469 )
(32.9 %) Long-term debt 176,744 247,855 (71,111 ) (28.7 %)
Deferred income taxes 70,875 80,675 (9,800 ) (12.1 %)
Other liabilities 10,703 6,845 3,858 56.4 %
Stockholders’ equity:
Common stock 12,957 12,794 163 1.3 % Additional paid-in capital
1,059,087 1,034,526 24,561 2.4 % Retained earnings 601,482 591,798
9,684 1.6 % Accumulated other comprehensive income 7,669 9,413
(1,744 ) (18.5 %) Treasury stock, at cost (977,219 ) (945,274 )
(31,945 ) (3.4 %)
Total stockholders’ equity
703,976 703,257 719 0.1 % 1,152,621
1,322,424 (169,803 ) (12.8 %) ACXIOM
CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited) (Dollars in thousands)
For the Three Months Ended September 30, 2015
2014 Cash flows from operating activities: Net earnings
(loss) 10,723 (1,544 ) Earnings from discontinued operations, net
of tax (12,068 ) (5,557 ) Non-cash operating activities:
Depreciation and amortization 20,635 18,257 Loss (gain) on disposal
or impairment of assets (57 ) 47 Impairment of goodwill and other
706 - Deferred income taxes 1,806 (4,179 ) Non-cash stock
compensation expense 7,360 7,725 Changes in operating assets and
liabilities: Accounts receivable (1,244 ) (848 ) Other assets
(2,007 ) 1,778 Deferred costs (398 ) - Accounts payable and other
liabilities (6,806 ) 967 Deferred revenue 2,707 (2,321 ) Net
cash provided by (used in) operating activities 21,357
14,325 Cash flows from investing activities: Capitalized
software (3,936 ) (5,608 ) Capital expenditures (10,244 ) (15,362 )
Data acquisition costs (281 ) (468 ) Net cash paid in acquisitions
- (265,672 ) Net cash used in investing activities (14,461 )
(287,110 ) Cash flows from financing activities: Payments of debt
(63,039 ) (4,839 ) Sale of common stock, net of stock acquired for
withholding taxes 2,033 (1,813 ) Income tax impact of stock
options, warrants and restricted stock (475 ) - Acquisition of
treasury stock (12,310 ) (9,868 ) Net cash used in financing
activities (73,791 ) (16,520 ) Cash flows from discontinued
operations: From operating activities (1,938 ) 11,547 From
investing activities 127,315 (4,034 ) From financing activities (53
) (517 ) Net cash provided by discontinued operations 125,324
6,996 Effect of exchange rate changes on cash (676 )
(801 ) Net change in cash and cash equivalents 57,753
(283,110 ) Cash and cash equivalents at beginning of period 123,192
392,918 Cash and cash equivalents at end of period
180,945 109,808
Supplemental cash flow
information: Cash paid during the period for: Interest 2,152
2,516 Income taxes 6,310 59 Payments on capital leases and
installment payment arrangements 53 1,084 Other debt payments,
excluding line of credit 8,039 4,272 Prepayment of debt 55,000 -
ACXIOM CORPORATION AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in
thousands) For the Six Months Ended
September 30, 2015 2014 Cash flows from
operating activities: Net earnings (loss) 9,684 (9,148 ) Earnings
from discontinued operations, net of tax (16,211 ) (8,694 )
Non-cash operating activities: Depreciation and amortization 42,410
34,177 Loss (gain) on disposal or impairment of assets 184 (207 )
Impairment of goodwill and other 706 - Deferred income taxes 284
(6,022 ) Non-cash stock compensation expense 15,483 11,650 Changes
in operating assets and liabilities: Accounts receivable (9,281 )
10,551 Other assets (1,198 ) 5,368 Deferred costs (823 ) (211 )
Accounts payable and other liabilities (10,336 ) (28,090 ) Deferred
revenue 2,452 (10,505 ) Net cash provided by (used in)
operating activities 33,354 (1,131 ) Cash flows from
investing activities: Capitalized software (6,733 ) (10,577 )
Capital expenditures (23,120 ) (32,140 ) Data acquisition costs
(711 ) (1,103 ) Net cash paid in acquisitions - (265,672 )
Net cash used in investing activities (30,564 ) (309,492 ) Cash
flows from financing activities: Payments of debt (71,138 ) (9,756
) Sale of common stock, net of stock acquired for withholding taxes
4,102 (2,487 ) Income tax impact of stock options, warrants and
restricted stock (552 ) (9,868 ) Acquisition of treasury stock
(27,261 ) - Net cash used in financing activities (94,849 )
(22,111 ) Cash flows from discontinued operations: From operating
activities 9,715 28,857 From investing activities 122,831 (3,330 )
From financing activities (206 ) (1,102 ) Net cash provided by
discontinued operations 132,340 24,425 Effect of
exchange rate changes on cash (346 ) (469 ) Net change in
cash and cash equivalents 39,935 (308,778 ) Cash and cash
equivalents at beginning of period 141,010 418,586
Cash and cash equivalents at end of period 180,945 109,808
Supplemental cash flow information: Cash paid
during the period for: Interest 4,337 5,391 Income taxes 5,266 356
Payments on capital leases and installment payment arrangements 269
2,319 Other debt payments, excluding line of credit 16,075 8,539
Prepayment of debt 55,000 - ACXIOM CORPORATION AND
SUBSIDIARIES CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY AND
RECONCILIATION TO OPERATING CASH FLOW (Unaudited) (Dollars in
thousands)
06/30/14 09/30/14 12/31/14
03/31/15 YTD FY2015 06/30/15
09/30/15 YTD FY2016 Net cash provided
by operating activities - continuing operations (15,456 ) 14,325
32,890 29,372 61,131 11,997 21,357 33,354 Less: Capitalized
software (4,969 ) (5,608 ) (4,408 ) (3,602 ) (18,587 ) (2,797 )
(3,936 ) (6,733 ) Capital expenditures (16,778 ) (15,362 ) (10,212
) (14,600 ) (56,952 ) (12,876 ) (10,244 ) (23,120 ) Data
acquisition costs (635 ) (468 ) (394 ) (374 ) (1,871 ) (430 ) (281
) (711 ) Payments on capital leases and installment payment
arrangements (650 ) (567 ) (471 ) (315 ) (2,003 ) (63 ) - (63 )
Other required debt payments (4,267 ) (4,272 )
(8,027 ) (8,032 ) (24,598 )
(8,036 ) (8,039 ) (16,075 )
Total (42,755 ) (11,952 ) 9,378
2,449 (42,880 ) (12,205 )
(1,143 ) (13,348 ) ACXIOM
CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS-GAAP (Unaudited) (Dollars in thousands, except earnings
per share)
Q2 FY16 to Q2 FY15 06/30/14
09/30/14 12/31/14
03/31/15 YTD FY2015 06/30/15 09/30/15
YTD FY2016 % $ Revenues 186,683 204,248
208,246 205,734 804,911 196,895 207,345 404,240 1.5 % 3,097
Cost of revenue 113,090 122,845
123,290 123,712
482,937 117,709 121,312
239,021 -1.2 % (1,533 ) Gross profit 73,593 81,403
84,956 82,022 321,974 79,186 86,033 165,219 5.7 % 4,630
% Gross
margin 39.4 % 39.9 % 40.8
% 39.9 % 40.0 % 40.2
% 41.5 % 40.9 % Operating
expenses Research and development 16,350 19,798 18,973 19,080
74,201 20,011 19,078 39,089 -3.6 % (720 ) Sales and marketing
26,500 28,842 30,997 32,319 118,658 29,494 34,259 63,753 18.8 %
5,417 General and administrative 36,701 38,373 33,895 30,230
139,199 31,743 31,519 63,262 -17.9 % (6,854 ) Gains, losses and
other items, net 7,128 833
3,381 11,258
22,600 807 3,233
4,040 288.1 % 2,400 Total operating expenses 86,679 87,846
87,246 92,887 354,658 82,055 88,089 170,144 0.3 % 243 Loss
from operations (13,086 ) (6,443 ) (2,290 ) (10,865 ) (32,684 )
(2,869 ) (2,056 ) (4,925 ) 68.1 % 4,387
% Margin -7.0
% -3.2 % -1.1 % -5.3
% -4.1 % -1.5 % -1.0
% -1.2 % Other income (expense) Interest
expense (1,948 ) (1,821 ) (2,005 ) (1,898 ) (7,672 ) (1,885 )
(1,956 ) (3,841 ) -7.4 % (135 ) Other, net (106 )
(163 ) 35 (757 )
(991 ) 304 59 363
136.2 % 222 Total other expense (2,054 ) (1,984 ) (1,970 ) (2,655 )
(8,663 ) (1,581 ) (1,897 ) (3,478 ) 4.4 % 87 Loss from
continuing operations before income taxes (15,140 ) (8,427 ) (4,260
) (13,520 ) (41,347 ) (4,450 ) (3,953 ) (8,403 ) 53.1 % 4,474
Income taxes (4,399 ) (1,326 ) (4,597 )
(4,483 ) (14,805 ) 732
(2,608 ) (1,876 ) -96.7 % (1,282 ) Net
earnings (loss) from continuing operations (10,741 ) (7,101 ) 337
(9,037 ) (26,542 ) (5,182 ) (1,345 ) (6,527 ) 81.1 % 5,756
Earnings from discontinued operations, net of tax 3,137
5,557 3,819
2,998 15,511 4,143
12,068 16,211 117.2 % 6,511 Net
earnings (loss) (7,604 ) (1,544 ) 4,156 (6,039 ) (11,031 ) (1,039 )
10,723 9,684 794.5 % 12,267 Diluted earnings (loss) per
share (0.10 ) (0.02 ) 0.05
(0.08 ) (0.14 ) (0.01 )
0.14 0.12 775.3 % 0.16
ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS-NON GAAP (Unaudited) (Dollars in thousands, except
earnings per share)
Q2 FY16 to Q2 FY15
06/30/14 09/30/14 12/31/14
03/31/15 YTD FY2015 06/30/15
09/30/15 YTD FY2016 % $ Revenues 186,683
204,248 208,246 205,734 804,911 196,895 207,345 404,240 1.5 % 3,097
Cost of revenue 112,723 118,702
119,136 115,243
465,804 112,084 117,131
229,215 -1.3 % (1,571 ) Gross profit 73,960
85,546 89,110 90,491 339,107 84,811 90,214 175,025 5.5 % 4,668
%
Gross margin 39.6 % 41.9 %
42.8 % 44.0 % 42.1 %
43.1 % 43.5 % 43.3 %
Operating expenses Research and development 15,911 16,529
15,559 15,956 63,955 16,384 15,400 31,784 -6.8 % (1,129 ) Sales and
marketing 25,854 27,040 28,941 30,150 111,985 28,170 32,945 61,115
21.8 % 5,905 General and administrative 23,627 27,744 23,869 22,656
97,896 25,586 23,402 48,988 -15.7 % (4,342 ) Gains, losses and
other items, net - - -
- - -
- - - - Total operating
expenses 65,392 71,313 68,369 68,762 273,836 70,140 71,747 141,887
0.6 % 434 Income from operations 8,568 14,233 20,741 21,729
65,271 14,671 18,467 33,138 29.7 % 4,234
% Margin 4.6
% 7.0 % 10.0 % 10.6
% 8.1 % 7.5 % 8.9
% 8.2 % Other income (expense) Interest
expense (1,948 ) (1,821 ) (2,005 ) (1,898 ) (7,672 ) (1,885 )
(1,956 ) (3,841 ) -7.4 % (135 ) Other, net (106 )
(163 ) 35 (757 )
(991 ) 304 59 363
136.2 % 222 Total other expense (2,054 ) (1,984 ) (1,970 ) (2,655 )
(8,663 ) (1,581 ) (1,897 ) (3,478 ) 4.4 % 87 Earnings from
continuing operations before income taxes 6,514 12,249 18,771
19,074 56,608 13,090 16,570 29,660 35.3 % 4,321 Income taxes 2,517
4,757 5,755
5,324 18,353 5,632
5,163 10,795 8.5 % 406
Net earnings from continuing operations 3,997 7,492 13,016 13,750
38,255 7,458 11,407 18,865 52.3 % 3,915 Earnings from
discontinued operations, net of tax - -
- - -
- - - - -
Net earnings 3,997 7,492 13,016 13,750 38,255 7,458 11,407
18,865 52.3 % 3,915 Diluted earnings per share 0.05
0.10 0.17
0.17 0.49 0.09
0.14 0.24 50.3 % 0.05
ACXIOM CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO
NON-GAAP EPS (Unaudited) (Dollars in thousands, except earnings per
share)
06/30/14 09/30/14 12/31/14
03/31/15 FY2015 06/30/15
09/30/15 YTD FY2016 Loss from
continuing operations before income taxes (15,140 ) (8,427 ) (4,260
) (13,520 ) (41,347 ) (4,450 ) (3,953 ) (8,403 ) Income
taxes (4,399 ) (1,326 ) (4,597 )
(4,483 ) (14,805 ) 732
(2,608 ) (1,876 ) Net earnings (loss) from
continuing operations (10,741 ) (7,101 ) 337 (9,037 ) (26,542 )
(5,182 ) (1,345 ) (6,527 ) Earnings loss from discontinued
operations, net of tax 3,137 5,557
3,819 2,998
15,511 4,143 12,068
16,211 Net earnings (loss) (7,604 )
(1,544 ) 4,156 (6,039 )
(11,031 ) (1,039 ) 10,723
9,684 Earnings (loss) per share: Basic
(0.10 ) (0.02 ) 0.05
(0.08 ) (0.14 ) (0.01 ) 0.14
0.12 Diluted (0.10 )
(0.02 ) 0.05 (0.08 )
(0.14 ) (0.01 ) 0.14
0.12 Unusual items: Purchased intangible asset
amortization (cost of revenue) 63 3,827 3,783 3,781 11,454 3,754
3,754 7,508 Non-cash stock compensation (cost of revenue and
operating expenses) 3,925 7,725 8,450 8,216 28,316 8,123 7,360
15,483 Restructuring charges and other adjustments (gains, losses,
and other) 7,128 833 3,381 11,258 22,600 807 3,233 4,040 Separation
and transformation costs (general and administrative) 10,538 8,291
7,417 5,023 31,269 3,414 6,098 9,512 Accelerated amortization (cost
of revenue) - - -
4,316 4,316 1,442
78 1,520 Total
unusual items, continuing operations 21,654
20,676 23,031 32,594
97,955 17,540
20,523 38,063
Earnings from continuing operations before
income taxes and excluding unusual items
6,514 12,249 18,771 19,074 56,608 13,090 16,570 29,660
Income taxes 2,517 4,757
5,755 5,324 18,353
5,632 5,163 10,795
Non-GAAP net earnings 3,997 7,492
13,016 13,750
38,255 7,458 11,407
18,865 Non-GAAP earnings per
share: Basic 0.05 0.10
0.17 0.18 0.50
0.10 0.15 0.24
Diluted 0.05 0.10
0.17 0.17 0.49
0.09 0.14 0.24
Basic weighted average shares 76,833
77,123 77,039
77,427 77,106 77,918
77,918 77,918 Diluted
weighted average shares 78,341 78,307
78,302 79,027
78,494 79,352 79,352
79,352 ACXIOM CORPORATION AND
SUBSIDIARIES RESULTS BY SEGMENT-GAAP (Unaudited) (Dollars in
thousands)
Q2 FY16 to Q2 FY15 06/30/14 09/30/14
12/31/14 03/31/15 YTD FY2015
06/30/15 09/30/15 YTD FY2016 %
$
Revenues:
Marketing services and audience solutions 182,349 190,776 190,336
186,478 749,939 176,276 185,101 361,377 -3.0 % (5,675 )
Connectivity 4,334 13,472
17,910 19,256 54,972
20,619 22,244
42,863 65.1 % 8,772 Total revenues 186,683
204,248 208,246
205,734 804,911 196,895
207,345 404,240
1.5 % 3,097 Gross profit from continuing operations:
Marketing services and audience solutions 77,224 82,652
82,991 81,937 324,804 72,019 76,030 148,049 -8.0 % (6,622 )
Connectivity (3,631 ) (1,249 ) 1,964 4,400 1,484 8,609 10,081
18,690 907.1 % 11,330 Corporate - -
- (4,315 ) (4,315
) (1,442 ) (78 ) (1,520 ) n/a (78 )
Total gross profit from continuing operations 73,593
81,403 84,955
82,022 321,973 79,186
86,033 165,219 5.7 %
4,630 Gross margin: Marketing services and
audience solutions 42.3 % 43.3 % 43.6 % 43.9 % 43.3 % 40.9 % 41.1 %
41.0 % Connectivity -83.8 % -9.3 % 11.0 % 22.9 % 2.7 % 41.8 % 45.3
% 43.6 % Total 39.4 % 39.9 % 40.8 % 39.9 % 40.0 % 40.2 %
41.5 % 40.9 % Income (loss) from continuing operations:
Marketing services and audience solutions 46,221 52,302
51,268 48,065 197,856 38,287 41,586 79,873 -20.5 % (10,716 )
Connectivity (14,261 ) (20,277 ) (16,876 ) (17,444 ) (68,858 )
(8,025 ) (10,192 ) (18,217 ) 49.7 % 10,085 Corporate (45,046 )
(38,468 ) (36,682 )
(41,486 ) (161,682 ) (33,131 ) (33,450
) (66,581 ) 13.0 % 5,018 Total loss
from continuing operations (13,086 ) (6,443 )
(2,290 ) (10,865 ) (32,684 )
(2,869 ) (2,056 ) (4,925 ) 68.1 % 4,387
Margin: Marketing services and audience
solutions 25.3 % 27.4 % 26.9 % 25.8 % 26.4 % 21.7 % 22.5 % 22.1 %
Connectivity -329.0 % -150.5 % -94.2 % -90.6 % -125.3 % -38.9 %
-45.8 % -42.5 % Total -7.0 % -3.2 % -1.1 % -5.3 % -4.1 %
-1.5 % -1.0 % -1.2 % ACXIOM CORPORATION AND
SUBSIDIARIES RESULTS BY SEGMENT - NON GAAP (Unaudited) (Dollars in
thousands)
Q2 FY16 to Q2 FY15 06/30/14 09/30/14
12/31/14 03/31/15 YTD FY2015
06/30/15 09/30/15 YTD FY2016 %
$
Revenues: Marketing services and
audience solutions 182,349 190,776 190,336 186,478 749,939 176,276
185,101 361,377 -3.0 % (5,675 ) Connectivity 4,334
13,472 17,910
19,256 54,972 20,619
22,244 42,863 65.1 % 8,772
Total revenues 186,683 204,248
208,246 205,734
804,911 196,895 207,345
404,240 1.5 % 3,097 Gross
profit from continuing operations: Marketing services and
audience solutions 77,559 83,043 83,411 82,355 326,368 72,473
76,404 148,877 -8.0 % (6,639 ) Connectivity (3,599 ) 2,503 5,699
8,136 12,739 12,338 13,810 26,148 451.7 % 11,307 Corporate -
- - -
- - -
- n/a 0 Total income from
continuing operations 73,960 85,546
89,110 90,491
339,107 84,811 90,214
175,025 5.5 % 4,668 Gross
margin: Marketing services and audience solutions 42.5 %
43.5 % 43.8 % 44.2 % 43.5 % 41.1 % 41.3 % 41.2 % Connectivity -83.0
% 18.6 % 31.8 % 42.3 % 23.2 % 59.8 % 62.1 % 61.0 % Total
39.6 % 41.9 % 42.8 % 44.0 % 42.1 % 43.1 % 43.5 % 43.3 %
Income from continuing operations: Marketing services and
audience solutions 47,270 53,556 52,445 50,803 204,074 40,253
42,696 82,949 -20.3 % (10,860 ) Connectivity (13,852 ) (11,702 )
(7,391 ) (5,809 ) (38,754 ) (173 ) (664 ) (837 ) 94.3 % 11,038
Corporate (24,850 ) (27,621 ) (24,313 )
(23,265 ) (100,049 ) (25,409 )
(23,565 ) (48,974 ) 14.7 % 4,056
Total income from continuing operations 8,568
14,233 20,741 21,729
65,271 14,671
18,467 33,138 29.7 % 4,234
Margin: Marketing services and audience solutions
25.9 % 28.1 % 27.6 % 27.2 % 27.2 % 22.8 % 23.1 % 23.0 %
Connectivity -319.6 % -86.9 % -41.3 % -30.2 % -70.5 % -0.8 % -3.0 %
-2.0 % Total 4.6 % 7.0 % 10.0 % 10.6 % 8.1 % 7.5 % 8.9 % 8.2
%
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version on businesswire.com: http://www.businesswire.com/news/home/20151104006536/en/
Acxiom CorporationLauren Dillard, 650-372-2242Investor
Relationsinvestor.relations@acxiom.comEACXM
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