UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
     
 
FORM 8-K
 
     
 
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
     
 
Date of report (Date of earliest event reported):  November 4, 2015
 
     
 
ACXIOM CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
 
     
 
DELAWARE
(State or Other Jurisdiction of Incorporation)
 
 
0-13163
71-0581897
(Commission File Number)
(IRS Employer Identification No.)
   
P.O. Box 8190, 601 E. Third Street,
Little Rock, Arkansas
 
72203-8190
(Address of Principal Executive Offices)
(Zip Code)
 
501-342-1000
(Registrant’s Telephone Number, Including Area Code)
 
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 
 

 

 
Item 2.02                      Results of Operations and Financial Condition.

On November 4, 2015, Acxiom Corporation (the “Company”) issued a press release announcing the results of its financial performance for the second quarter of fiscal year 2016. The Company will hold a conference call at 4:00 p.m. CT today to discuss this information further. Interested parties are invited to listen to the call, which will be broadcast via the Internet at www.acxiom.com. The press release is furnished herewith as Exhibit 99.1 and incorporated by reference herein.

The Company’s press release and other communications from time to time include certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements.

The attached press release includes non-GAAP measures of (i) income from operations, earnings per share attributable to Acxiom shareholders, and segment income from operations, all excluding unusual items and (ii) free cash flow available to equity. Operating income excluding unusual items and earnings per share attributable to Acxiom shareholders excluding unusual items represent loss from the Company’s continuing operations less expenses related to discontinued operations, gains, losses and other items, the impact of business separation and transformation expenses recorded in general and administrative expense, the impact of purchased intangible asset amortization recorded in cost of revenue and the impact of non-cash stock compensation recorded in both cost of revenue and operating expenses.  Segment income from operations excluding unusual items represents segment income from operations excluding purchased intangible asset amortization, non-cash stock compensation, and restructuring charges that were charged to the segment for GAAP purposes.  The Company’s management believes that these non-GAAP measures are meaningful since they represent the recurring income from the Company’s continuing operations before excluded items, which are not a recurring part of the Company’s ordinary course operations, and before purchased intangible asset amortization and non-cash stock compensation, which are recurring non-cash expenses.  Management also believes these measures are useful in comparison to other companies who report similar measures.  The non-GAAP measures are reconciled to the corresponding GAAP measures of income (loss) from operations, earnings per share attributable to Acxiom shareholders, and segment income (loss) from operations in schedules to the press release.

Free cash flow available to equity is defined as operating cash flow less cash used by investing activities (excluding the impact of cash paid in acquisitions), less required payments of debt, and excluding the impact of discontinued operations. The Company’s management believes that this measure of free cash flow available to equity is meaningful since it represents the amount of money available from continuing operations for the Company’s discretionary spending after funding all required obligations including scheduled debt payments, and it therefore provides a useful measure of liquidity for assessing the amount of cash available for general corporate and strategic purposes. Free cash flow available to equity is reconciled to operating cash flow, the nearest comparable GAAP measure, in a schedule to the press release.

The non-GAAP financial measures used by the Company may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as substitutes for measures of financial performance or liquidity prepared in accordance with GAAP.


 
 

 

 
Item 9.01                      Financial Statements and Exhibits
 
(d)           Exhibits

The following exhibits are furnished herewith:
 
Exhibit
Number
 
Description
 
99.1
 
 
Press Release of the Company dated November 4, 2015

 
 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated:   November 4, 2015


ACXIOM CORPORATION


By: /s/ Jerry C. Jones                                                                
Name:     Jerry C. Jones
 
Title:
Chief Ethics and Legal Officer & Executive Vice President
 
 

 

 
 

 

EXHIBIT INDEX
 
Exhibit
Number
 
Description
 
99.1
 
 
Press Release of the Company dated November 4, 2015


 
 
 


 




 


 
 

ACXIOM LOGO

For more information, contact:
Lauren Dillard
Acxiom Investor Relations
(650) 372-2242
investor.relations@acxiom.com
EACXM


ACXIOM ANNOUNCES SECOND QUARTER RESULTS

Connectivity Revenue Increases 65% Year-over-Year

Total US Revenue Grows 6% Year-over-Year


LITTLE ROCK, Ark. – November 4, 2015 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.

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.

 
1

 
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.
 

 
2

 
 
 
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 %
                                                                 
                                                                 




 
10 

 

                                                 
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 %
                                                                 


 
11 

 

                                                 
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  
                                                                 
                                                                 


 
12 

 

                                                 
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 %
                                                                 
                                                                 



 
13 

 

                                                 
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  
                                                                 
                                                                 



 
14 

 

                         
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 %)
                                 
                                 

 
15 

 

             
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       -  
                 
                 

 
16 

 

             
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       -  
                 
                 



 
17 

 

                                                 
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 )
                                                                 
                                                                 




 
18 

 

                                                             
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  
                                                                                 
 
                                                                               
 
                                                                               
                                                                                 
                                                                                 


 
19 

 

                                                             
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  
                                                                                 
 
                                                                               
 
                                                                               
                                                                                 
                                                                                 



 
20 

 

                                                 
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  
                                                                 
                                                                 
                                                                 



 
21 

 

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 %                
                                                                                 
                                                                                 

 
22 

 


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 %                
                                                                                 
                                                                                 

 
23 
 


 





Acxiom (NASDAQ:ACXM)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Acxiom Charts.
Acxiom (NASDAQ:ACXM)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Acxiom Charts.