EX-99.1 2 ex99.htm EARNINGS RELEASE ex99.htm
EXHIBIT 99.1

For more information, contact:

Katharine Boyce
Investor Relations Coordinator
Acxiom Corporation
(501) 342-1321
Investor.relations@acxiom.com
EACXM


Acxiom Announces Fourth Quarter and Fiscal Year 2010 Results
Third Consecutive Sequential Improvement in Revenue, Operating Income and Operating Cash Flow

LITTLE ROCK, Ark. — May 13, 2010 — Acxiom® Corporation (Nasdaq: ACXM), a global leader in interactive marketing, today announced financial results for the fourth quarter and fiscal year ended March 31, 2010. Acxiom will hold a conference call at 10:00 a.m. CDT today to further discuss this information. Interested parties are invited to listen to the call, which will be broadcast via the Internet at www.acxiom.com.

John Meyer, Acxiom’s chief executive officer and president, said, “Our performance in the fourth quarter demonstrates that we continue to manage the business effectively in this economic environment. We experienced our third consecutive quarterly increase in revenue, operating income and operating cash flow. These results stem from the superb job Acxiom professionals do serving our clients and bringing value, while remaining focused on efficiency in our execution.”

Meyer continued, “We had a strong finish to our fiscal 2010. Our operating income in the second half of the fiscal year was a significant improvement over the first half and better reflected our traditional seasonal pattern. While we anticipate improvement in the economic outlook, we also expect a continued return to our seasonal revenue and operating income patterns, where the first quarter is less than the fourth quarter.”

Fourth Quarter 2010 Highlights:

·  
Revenue of $288.3 million in the current quarter, compared to $288.1 million, excluding an Information Products pass-through contract (approximately $7.4 million), in the fourth quarter a year ago. GAAP revenue, including the pass-through revenue in the prior-year quarter, was $295.5 million. This contract was modified in the fourth quarter of fiscal 2009, and the company no longer recognizes pass-through revenue from this contract.

·  
Income from operations of $35.2 million in the current-year fourth quarter, compared to income from operations of $41.6 million in the fourth quarter last year. Income from operations included unusual gain items of $1.8 million in the current year and $1.7 million in the prior year.

·  
Earnings per diluted share of $0.21 in the fourth quarter of fiscal 2010, compared to earnings per diluted share of $0.29 in the fourth quarter of fiscal 2009. The results included $0.02 and $0.04 in unusual items in the current and prior periods, respectively. Excluding the effect of the unusual items, diluted earnings per share would have been $0.19 in the current year and $0.25 in the prior-year period.

·  
Operating cash flow of $87.9 million compared to $74.7 million in the fourth quarter a year ago.

·  
Free cash flow available to equity of $43.1 million, compared to $38.4 million in the fourth quarter a year ago. Free cash flow available to equity is a non-GAAP financial measure; a reconciliation to the comparable GAAP measure, operating cash flow, is attached to this news release.

Fiscal Year 2010 Highlights:

·  
Revenue of $1.099 billion in fiscal 2010, compared to $1.205 billion, excluding an Information Products pass-through contract (approximately $71.3 million), in the prior year. GAAP revenue, including the pass-through revenue, in the prior year was $1.277 billion. This contract was modified in the fourth quarter of fiscal 2009, and the company no longer recognizes pass-through revenue from this contract.

·  
Income from operations of $98.8 million in fiscal year 2010, compared to income from operations of $92.9 million last year. The prior-year income from operations included $38.6 million in unusual loss items. Before the effect of the unusual loss items, income from operations for the prior year would have been $131.4 million.

·  
Earnings per diluted share of $0.56 for the current year compared to earnings per diluted share of $0.48 in fiscal 2009. The prior-year results included $0.28 in unusual loss items. Excluding the effect of the unusual items, diluted earnings per share in the prior year were $0.76.

·  
Operating cash flow of $239.3 million for the fiscal year, compared to $268.8 million a year ago.

·  
Free cash flow available to equity of $108.3 million for the fiscal year, compared to $147.1 million a year ago. Free cash flow available to equity is a non-GAAP financial measure; a reconciliation to the comparable GAAP measure, operating cash flow, is attached to this news release.

Operational Highlights:

·  
Information Services: Revenue for the quarter was $221.6 million, compared to $218.9 million in the fourth quarter of the previous year. For the 12 months ended March 31, 2010, revenue was $849.4 million, compared to $920.3 million in the previous year.  Income from operations for the quarter was $27.6 million, compared to $32.9 million in the fourth quarter of fiscal 2009. For the 12 months just ended, income from operations was $91.0 million, compared to $117.4 million in the previous 12-month period.

·  
Information Products: Revenue for the quarter was $66.8 million, compared with $69.2 million, excluding the pass-through revenue of approximately $7.4 million from the Information Products contract referenced above, in the fourth quarter a year ago. GAAP revenue, including the pass-through revenue, in the prior quarter was $76.6 million. For the 12 months ended March 31, 2010, revenue was $249.8, compared to $285.0 million, excluding the pass-through revenue of approximately $71.3 million from the Information Products contract referenced above. GAAP revenue, including the pass-through revenue, in the prior year was $356.3 million. Income from operations for the quarter was $5.8 million, compared to income from operations of $7.0 million in the fourth quarter of the previous year. For the 12 months just ended, income from operations was $6.9 million, compared to $14.0 million in the previous 12-month period.

Income from operations includes expenses that had previously been included in corporate and other expenses. The company now allocates selling, general and administrative expenses previously included in corporate and other expenses to the two operating segments, Information Services and Information Products. Prior-year results have been reclassified to reflect the change.


Investor Day

Acxiom will host an investor day on June 2 where company management will discuss operations and prospects. The event will be held at the Hyatt Regency Boston and will be web cast. Further information will be made available on our website at www.acxiom.com.

Web Link to Financials

You may link to http://www.acxiom.com/FY10_Q4_Financials for the detailed financial information we typically attach to our earnings releases.

About Acxiom

Acxiom is a recognized leader in marketing technology and services that enable marketers to successfully manage audiences, personalize consumer experiences and create profitable customer relationships. Our superior industry-focused, consultative approach combines consumer data and analytics, databases, data integration and consulting solutions for personalized, multichannel marketing strategies. Acxiom leverages over 40 years of experience of data management to deliver high-performance, highly secure, reliable information management services. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, USA, and serves clients around the world from locations in the United States, Europe, Asia-Pacific and the Middle East. For more information about Acxiom, visit Acxiom.com.

Forward Looking Statements

This release and today’s conference call may contain forward-looking statements including, without limitation, statements regarding an improvement in the economic outlook, and a continued return to our historical seasonal revenue and operating income patterns. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. The following are factors, among others, that could cause actual results to differ materially from these forward-looking statements: the possibility that certain contracts may not generate the anticipated revenue or profitability or may not be closed within the anticipated time frames; the possibility that significant customers may experience extreme, severe economic difficulty or otherwise reduce the amount of business they do with us; the possibility that we will not successfully complete customer contract requirements on time or meet the service levels specified in the contracts, which may result in contract penalties or lost revenue; the possibility that we may not be able to attract, retain or motivate qualified technical, sales and leadership associates, or that we may lose key associates to other organizations; the possibility that we will not be able to continue to receive credit upon satisfactory terms and conditions; the possibility that negative changes in economic conditions in general or other conditions might lead to a reduction in demand for our products and services; the possibility that there will be changes in consumer or business information industries and markets that negatively impact the company; the possibility that the historical seasonality of our business may change; the possibility that we will not be able to achieve cost reductions and avoid unanticipated costs; the possibility that the fair value of certain of our assets may not be equal to the carrying value of those assets now or in future time periods; the possibility that 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; and other risks and uncertainties, including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including our current reports on Form 8-K, quarterly reports on Form 10-Q and annual report 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, 2009, which was filed with the Securities and Exchange Commission on May 29, 2009.

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.






 
 
 
 
 
 

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
                     
         
  For the Three Months Ended
         
March 31,
                 
$
%
         
2010
  
2009
  
Variance
Variance
                     
Revenue:
                    
    Services
        
221,553
  
218,885
  
2,668
1.2%
    Products
      
66,789
  
76,624
  
(9,835)
(12.8%)
     Total revenue
      
288,342
  
295,509
  
(7,167)
(2.4%)
                     
Operating costs and expenses:
                
    Cost of revenue
                  
     Services
      
166,085
  
161,060
  
(5,025)
(3.1%)
     Products
      
45,835
  
55,604
  
9,769
17.6%
     Total cost of revenue
    
211,920
  
216,664
  
4,744
2.2%
                     
    Services gross margin
    
25.0%
  
26.4%
      
    Products gross margin
    
31.4%
  
27.4%
      
    Total gross margin
      
26.5%
  
26.7%
      
                     
    Selling, general and administrative
  
43,013
  
38,930
  
(4,083)
(10.5%)
    Gains, losses and other items, net
  
              (1,802)
  
(1,694)
  
108
6.4%
                     
        Total operating costs and expenses
  
253,131
  
253,900
  
769
0.3%
                     
    Income from operations
    
35,211
  
41,609
  
(6,398)
(15.4%)
                     
   Other income (expense):
                
     Interest expense
      
(5,865)
  
(6,441)
  
576
8.9%
     Other, net
      
122
  
163
  
(41)
(25.2%)
                     
   Total other income (expense)
    
              (5,743)
  
               (6,278)
  
535
8.5%
                     
   Earnings (loss) before income taxes
  
29,468
  
35,331
  
(5,863)
(16.6%)
                     
   Income taxes
      
13,106
  
               12,881
  
(225)
(1.7%)
                     
   Net earnings (loss)
      
16,362
  
22,450
  
(6,088)
(27.1%)
                     
  Less: Net earnings (loss) attributable to
        noncontrolling interest
(286)
  
                         -
  
(286)
                    -
                     
  Net earnings (loss) attributable to Acxiom
  
16,648
  
22,450
  
(5,802)
(25.8%)
                     
Earnings (loss) per share:
                
                     
    Basic
        
0.21
  
0.29
  
(0.08)
(27.6%)
                     
    Diluted
        
0.20
  
0.29
  
(0.09)
(31.0%)
                     
Earnings (loss) per share attributable to Acxiom stockholders:
            
                     
    Basic
        
0.21
  
0.29
  
(0.08)
(27.6%)
                     
 Diluted
        
0.21
  
0.29
  
(0.08)
(27.6%)


 
 
 


ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
                     
         
  For the Twelve Months Ended
         
March 31,
                 
$
%
         
2010
  
2009
  
Variance
Variance
                     
Revenue:
                    
    Services
        
849,432
  
920,262
  
(70,830)
(7.7%)
    Products
      
249,803
  
356,311
  
(106,508)
(29.9%)
     Total revenue
      
1,099,235
  
1,276,573
  
(177,338)
(13.9%)
                     
Operating costs and expenses:
                
    Cost of revenue
                  
     Services
      
654,659
  
694,340
  
39,681
5.7%
     Products
      
184,610
  
280,846
  
96,236
34.3%
     Total cost of revenue
    
839,269
  
975,186
  
135,917
13.9%
                     
    Services gross margin
    
22.9%
  
24.5%
      
    Products gross margin
    
26.1%
  
21.2%
      
    Total gross margin
      
23.6%
  
23.6%
      
                     
    Selling, general and administrative
  
162,097
  
169,960
  
7,863
4.6%
    Gains, losses and other items, net
  
                 (944)
  
38,566
  
39,510
102.4%
                     
        Total operating costs and expenses
  
1,000,422
  
1,183,712
  
183,290
15.5%
                     
    Income from operations
    
98,813
  
92,861
  
5,952
6.4%
                     
   Other income (expense):
                
     Interest expense
      
(22,480)
  
(32,596)
  
10,116
31.0%
     Other, net
      
425
  
1,949
  
(1,524)
(78.2%)
                     
   Total other income (expense)
    
            (22,055)
  
             (30,647)
  
8,592
28.0%
                     
   Earnings before income taxes
    
76,758
  
62,214
  
14,544
23.4%
                     
   Income taxes
      
32,599
  
               24,710
  
(7,889)
(31.9%)
                     
   Net earnings
      
44,159
  
37,504
  
6,655
17.7%
                     
  Less: Net earnings attributable to noncontrolling interest
(390)
  
                         -
  
(390)
                    -
                     
  Net earnings attributable to Acxiom
  
44,549
  
37,504
  
7,045
18.8%
                     
Earnings per share:
                  
                     
    Basic
        
0.56
  
0.48
  
0.08
16.7%
                     
    Diluted
        
0.55
  
0.48
  
0.07
14.6%
                     
Earnings per share attributable to Acxiom stockholders:
            
                     
    Basic
        
0.56
  
0.48
  
0.08
16.7%
                     
    Diluted
        
0.56
  
0.48
  
0.08
16.7%
                     



 
 
 


ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)
               
               
         
  For the Three Months Ended
               
         
March 31,
  
March 31,
         
2010
  
2009
               
Basic earnings per share:
          
               
    Numerator - net earnings (loss)
    
16,362
  
22,450
               
    Denominator - weighted-average shares outstanding
79,245
  
78,362
               
        Basic earnings (loss) per share
    
0.21
  
0.29
               
Diluted earnings per share:
          
               
    Numerator - net earnings (loss)
    
16,362
  
22,450
               
    Denominator - weighted-average shares outstanding
79,245
  
78,362
               
    Dilutive effect of common stock options, warrants and restricted stock
                     1,395
  
                        297
               
         
80,640
  
78,659
               
        Diluted earnings (loss) per share
  
0.20
  
0.29
               
               
               
               
               
Basic earnings per share attributable to Acxiom stockholders:
      
               
    Numerator - net earnings (loss) attributable to Acxiom
16,648
  
22,450
               
    Denominator - weighted-average shares outstanding
79,245
  
78,362
               
        Basic earnings (loss) per share attributable to Acxiom stockholders
0.21
  
0.29
               
Diluted earnings per share attributable to Acxiom stockholders:
      
               
    Numerator - net earnings (loss) attributable to Acxiom
16,648
  
22,450
               
    Denominator - weighted-average shares outstanding
79,245
  
78,362
               
    Dilutive effect of common stock options, warrants and restricted stock
                     1,395
  
                        297
               
         
80,640
  
78,659
               
        Diluted earnings (loss) per share attributable to Acxiom stockholders
0.21
  
0.29
               


 
 
 


ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)
               
               
         
  For the Twelve Months Ended
               
         
March 31,
  
March 31,
         
2010
  
2009
               
Basic earnings per share:
          
               
    Numerator - net earnings
    
44,159
  
37,504
               
    Denominator - weighted-average shares outstanding
78,974
  
77,892
               
        Basic earnings per share
    
0.56
  
0.48
               
Diluted earnings per share:
          
               
    Numerator - net earnings
    
44,159
  
37,504
               
    Denominator - weighted-average shares outstanding
78,974
  
77,892
               
    Dilutive effect of common stock options, warrants and restricted stock
                        751
  
                        333
               
         
79,725
  
78,225
               
        Diluted earnings per share
    
0.55
  
0.48
               
               
               
               
               
Basic earnings per share attributable to Acxiom stockholders:
      
               
    Numerator - net earnings attributable to Acxiom
44,549
  
37,504
               
    Denominator - weighted-average shares outstanding
78,974
  
77,892
               
        Basic earnings per share attributable to Acxiom stockholders
0.56
  
0.48
               
Diluted earnings per share attributable to Acxiom stockholders:
      
               
    Numerator - net earnings attributable to Acxiom
44,549
  
37,504
               
    Denominator - weighted-average shares outstanding
78,974
  
77,892
               
    Dilutive effect of common stock options, warrants and restricted stock
                        751
  
                        333
               
         
79,725
  
78,225
               
        Diluted earnings per share attributable to Acxiom stockholders
0.56
  
0.48
               


 
 
 


ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
               
               
         
  For the Three Months Ended
               
         
March 31,
  
March 31,
Revenue:
        
2010
  
2009
               
Information services
      
221,553
  
218,885
Information products
      
66,789
  
76,624
               
Total revenue
      
288,342
  
295,509
               
               
Income from operations:
          
               
Information services
      
27,639
  
32,873
Information products
      
5,770
  
7,042
Other
        
1,802
  
1,694
               
Total income from operations
    
35,211
  
41,609
               
Margin:
              
               
Information services
      
12.5%
  
15.0%
Information products
      
8.6%
  
9.2%
               
Total margin
      
12.2%
  
14.1%


 
 
 


ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
               
               
         
  For the Twelve Months Ended
               
         
March 31,
  
March 31,
Revenue:
        
2010
  
2009
               
Information services
      
849,432
  
920,262
Information products
      
249,803
  
356,311
               
Total revenue
      
1,099,235
  
1,276,573
               
               
Income from operations:
          
               
Information services
      
91,013
  
117,397
Information products
      
6,856
  
14,030
Other
        
944
  
(38,566)
               
Total income from operations
    
98,813
  
92,861
               
Margin:
              
               
Information services
      
10.7%
  
12.8%
Information products
      
2.7%
  
3.9%
               
Total margin
      
9.0%
  
7.3%


 
 
 


ACXIOM CORPORATION AND SUBSIDIARIES
PRODUCTS REVENUE AND COST OF PRODUCTS SUPPLEMENTAL SCHEDULE
(Unaudited)
(Dollars in thousands)
                 
                 
     
  For the Three Months Ended
                 
     
March 31,
  
March 31,
  
$
%
     
2010
  
2009
  
Variance
Variance
                 
Products
    
66,789
  
69,167
  
(2,378)
(3.4%)
Passthrough data
  
                         -
  
7,457
  
(7,457)
(100.0%)
                 
Total products revenue
66,789
  
76,624
  
(9,835)
(12.8%)
                 
                 
Cost of products revenue:
            
     Products
  
45,835
  
48,147
  
2,312
4.8%
     Passthrough data
  
                         -
  
7,457
  
7,457
100.0%
                 
Total cost of products
  
45,835
  
55,604
  
9,769
17.6%
                 
Margin:
                
                 
Products
    
31.4%
  
30.4%
      
Passthrough data
  
                        -
  
0.0%
      
Total products
  
31.4%
  
27.4%
      


 
 
 


ACXIOM CORPORATION AND SUBSIDIARIES
PRODUCTS REVENUE AND COST OF PRODUCTS SUPPLEMENTAL SCHEDULE
(Unaudited)
(Dollars in thousands)
                 
                 
     
  For the Twelve Months Ended
                 
     
March 31,
  
March 31,
  
$
%
     
2010
  
2009
  
Variance
Variance
                 
Products
    
249,803
  
285,005
  
(35,202)
(12.4%)
Passthrough data
  
                         -
  
71,306
  
(71,306)
(100.0%)
                 
Total products revenue
249,803
  
356,311
  
(106,508)
(29.9%)
                 
                 
Cost of products revenue:
            
     Products
  
184,610
  
209,540
  
24,930
11.9%
     Passthrough data
  
                         -
  
71,306
  
71,306
100.0%
                 
Total cost of products
  
184,610
  
280,846
  
96,236
34.3%
                 
Margin:
                
                 
Products
    
26.1%
  
26.5%
      
Passthrough data
  
                        -
  
0.0%
      
Total products
  
26.1%
  
21.2%
      


 
 
 


ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
             
 
March 31,
  
March 31,
  
$
%
 
2010
  
2009
  
Variance
Variance
Assets
            
Current assets:
            
  Cash and cash equivalents
224,104
  
177,166
  
46,938
26.5%
  Trade accounts receivable, net
            168,522
  
            184,814
  
(16,292)
(8.8%)
  Refundable income taxes
                      -
  
               4,028
  
(4,028)
(100.0%)
  Deferred income taxes
              11,874
  
              45,641
  
(33,767)
(74.0%)
  Other current assets
              54,205
  
              46,873
  
7,332
15.6%
             
     Total current assets
            458,705
  
            458,522
  
183
0.0%
             
Property and equipment
            824,084
  
            745,999
  
78,085
10.5%
  Less - accumulated depreciation and amortization
            587,245
  
            531,410
  
55,835
10.5%
             
Property and equipment, net
            236,839
  
           214,589
  
22,250
10.4%
             
Software, net of accumulated amortization
              38,845
  
             52,798
  
(13,953)
(26.4%)
Goodwill
            470,261
  
            454,944
  
15,317
3.4%
Purchased software licenses, net of accumulated amortization
              51,356
  
              65,341
  
(13,985)
(21.4%)
Deferred costs, net
              68,914
  
             70,343
  
(1,429)
(2.0%)
Data acquisition costs
              21,931
  
              31,317
  
(9,386)
(30.0%)
Other assets, net
             16,569
  
              18,938
  
(2,369)
(12.5%)
             
 
1,363,420
  
1,366,792
  
(3,372)
(0.2%)
             
Liabilities and Stockholders' Equity
            
Current liabilities:
            
  Current installments of long-term debt
              42,106
  
             40,967
  
1,139
2.8%
  Trade accounts payable
              42,774
  
              27,701
  
15,073
54.4%
  Accrued payroll and related expenses
              36,517
  
              44,823
  
(8,306)
(18.5%)
  Other accrued expenses
              75,632
  
              86,072
  
(10,440)
(12.1%)
  Deferred revenue
          55,567
  
             54,991
  
576
1.0%
  Income taxes
                2,460
  
                       -
  
2,460
              -
             
    Total current liabilities
            255,056
  
            254,554
  
502
0.2%
             
Long-term debt
            458,629
  
            537,272
  
(78,643)
(14.6%)
             
Deferred income taxes
             61,284
  
              62,231
  
(947)
(1.5%)
             
Other liabilities
                9,954
  
                9,321
  
633
6.8%
             
Stockholders' equity:
            
  Common stock
              11,662
  
             11,576
  
86
0.7%
  Additional paid-in capital
                  814,929
  
                  800,094
  
14,835
1.9%
  Retained earnings
                  482,243
  
                  437,694
  
44,549
10.2%
  Accumulated other comprehensive income
4,167
  
(6,238)
  
10,405
(166.8%)
  Treasury stock, at cost
(738,601)
  
(739,712)
  
1,111
(0.2%)
Total Acxiom stockholders' equity
574,400
  
503,414
  
70,986
(2)
  Noncontrolling interest
4,097
  
                       -
  
4,097
              -
             
  Total equity
           578,497
  
            503,414
  
75,083
14.9%
             
 
1,363,420
  
1,366,792
  
(3,372)
(0.2%)


 
 
 


ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
       
 
    For the Three Months Ended
       
 
March 31,
       
 
2010
  
2009
       
Cash flows from operating activities:
      
  Net earnings
                16,362
  
                22,450
  Non-cash operating activities:
      
    Depreciation and amortization
                42,652
  
                44,387
    Loss on disposal or impairment of assets, net
                         7
  
                         4
    Deferred income taxes
                  9,710
  
                11,354
    Non-cash stock compensation expense
                  2,502
  
                  2,302
    Changes in operating assets and liabilities:
      
      Accounts receivable
                10,290
  
25,477
      Other assets
                (9,742)
  
(1,528)
      Deferred costs
                (4,908)
  
(1,757)
      Accounts payable and other liabilities
                22,999
  
              (25,784)
      Deferred revenue
                (1,968)
  
                (2,253)
      Net cash provided by operating activities
                87,904
  
                74,652
Cash flows from investing activities:
      
    Sale of assets
                         -
  
                         -
    Capitalized software
(1,596)
  
(3,238)
    Capital expenditures
              (26,536)
  
              (12,266)
    Data acquisition costs
                (4,577)
  
                (7,607)
    Payment for investments
                (1,000)
  
                         3
    Net cash paid in acquisitions
                         -
  
                   (500)
      Net cash used by investing activities
(33,709)
  
(23,608)
Cash flows from financing activities:
      
    Payments of debt
(32,079)
  
(13,076)
    Fees for debt refinancing
                         -
  
                         -
    Sale of common stock
                  2,911
  
                  2,502
    Tax impact of stock options exercised
                   (683)
  
                     (81)
    Acquisition of treasury stock
                         -
  
                (1,101)
    Noncontrolling interests equity contributions
                         -
  
                         -
      Net cash used by financing activities
              (29,851)
  
              (11,756)
      Effect of exchange rate changes on cash
                   (822)
  
                   (197)
       
      Net increase in cash and cash equivalents
23,522
  
39,091
  Cash and cash equivalents at beginning of period
              200,582
  
              138,075
  Cash and cash equivalents at end of period
              224,104
  
              177,166
       
  Supplemental cash flow information:
      
    Cash paid (received) during the period for:
      
      Interest
                  4,530
  
                  8,670
      Income taxes
                     901
  
                   (160)
      Payments on capital leases and installment payment arrangements
                  7,090
  
                  7,673
      Payments on software and data license liabilities
                  1,392
  
                  3,330
      Other debt payments, excluding line of credit
                  3,597
  
                  2,073
      Prepayment of debt
                20,000
  
                         -
    Noncash investing and financing activities:
      
      Acquisition of property and equipment under capital lease
      
           and installment payment arrangements
5,946
  
                  3,148
      Software licenses and maintenance acquired under software obligation
                  1,560
  
                  8,409


 
 
 


ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
       
 
    For the Twelve Months Ended
       
 
March 31,
       
 
2010
  
2009
       
Cash flows from operating activities:
      
  Net earnings
                44,159
  
                37,504
  Non-cash operating activities:
      
    Depreciation and amortization
              167,564
  
              198,684
    Loss on disposal or impairment of assets, net
                     417
  
                22,658
    Deferred income taxes
                32,810
  
                16,423
    Non-cash stock compensation expense
                10,790
  
                10,342
    Changes in operating assets and liabilities:
      
      Accounts receivable
                10,295
  
16,100
      Other assets
                  2,171
  
12,347
      Deferred costs
              (20,289)
  
(4,743)
      Accounts payable and other liabilities
                (8,215)
  
              (32,006)
      Deferred revenue
                   (420)
  
                (8,468)
      Net cash provided by operating activities
              239,282
  
              268,841
Cash flows from investing activities:
      
    Sale of assets
                  1,058
  
                24,174
    Capitalized software
(8,257)
  
(16,239)
    Capital expenditures
              (57,908)
  
              (31,449)
    Cash collected from sale and license of software
                         -
  
                  2,000
    Data acquisition costs
(18,808)
  
              (30,561)
    Payment from (for) investments
                (2,000)
  
                  2,599
    Net cash paid in acquisitions
                (3,428)
  
              (15,903)
      Net cash used by investing activities
(89,343)
  
(65,379)
Cash flows from financing activities:
      
    Payments of debt
(104,521)
  
(86,772)
    Fees for debt refinancing
(4,564)
  
                         -
    Dividends paid
                         -
  
                (9,312)
    Sale of common stock
                  5,926
  
                10,866
    Tax impact of stock options exercised
                   (683)
  
                       34
    Acquisition of treasury stock
                   (307)
  
                (1,756)
    Noncontrolling interests equity contributions
                     457
  
                         -
      Net cash used by financing activities
            (103,692)
  
              (86,940)
      Effect of exchange rate changes on cash
                     691
  
                (2,017)
       
      Net increase in cash and cash equivalents
46,938
  
114,505
  Cash and cash equivalents at beginning of period
              177,166
  
                62,661
  Cash and cash equivalents at end of period
              224,104
  
              177,166
       
  Supplemental cash flow information:
      
    Cash paid (received) during the period for:
      
      Interest
                21,337
  
                33,138
      Income taxes
                (7,549)
  
                (3,189)
      Payments on capital leases and installment payment arrangements
                29,697
  
                40,789
      Payments on software and data license liabilities
                  7,526
  
                23,217
      Other debt payments, excluding line of credit
                  9,798
  
                  8,266
      Prepayment of debt
                57,500
  
                14,500
    Noncash investing and financing activities:
      
      Acquisition of property and equipment under capital lease
      
           and installment payment arrangements
24,193
  
                11,040
      Software licenses and maintenance acquired under software obligation
                  2,171
  
                  9,955
       


 




 
 
 
 
 

 
ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
AND RECONCILIATION TO OPERATING CASH FLOW
(Unaudited)
(Dollars in thousands)
                         
                         
   
06/30/08
09/30/08
12/31/08
03/31/09
FY2009
  
06/30/09
09/30/09
12/31/09
03/31/10
FY2010
                         
Net cash provided by operating activities
         28,473
          86,803
          78,913
          74,652
         268,841
  
          16,166
          60,703
          74,509
          87,904
        239,282
                         
Plus:
                      
 
    Sale of assets
                  -
          24,174
                    -
                    -
           24,174
  
                    -
                    -
            1,058
                    -
            1,058
 
    Payments received from investments
           2,494
               102
                    -
                   3
             2,599
  
                    -
                    -
                    -
                    -
                    -
                         
Less:
                      
 
    Capitalized software
(5,011)
(4,118)
(3,872)
(3,238)
         (16,239)
  
(2,384)
(2,431)
(1,846)
(1,596)
          (8,257)
 
    Capital expenditures
(5,706)
(7,245)
(6,232)
(12,266)
         (31,449)
  
(7,431)
(14,462)
(9,479)
(26,536)
        (57,908)
 
    Data acquisition costs
         (8,622)
          (6,507)
          (7,825)
          (7,607)
         (30,561)
  
          (5,777)
          (3,004)
          (5,450)
          (4,577)
        (18,808)
 
    Payments on capital leases and installment payment arrangements
       (12,879)
        (11,204)
          (9,033)
          (7,673)
         (40,789)
  
          (7,794)
          (7,504)
          (7,309)
          (7,090)
        (29,697)
 
    Payments on software and data license liabilities
         (8,368)
          (8,420)
          (3,099)
          (3,330)
         (23,217)
  
          (3,878)
          (1,840)
             (416)
          (1,392)
          (7,526)
 
    Other required debt payments
         (2,057)
          (2,073)
          (2,061)
          (2,073)
           (8,264)
  
          (2,052)
          (2,058)
          (2,091)
          (3,597)
          (9,798)
                         
Subtotal
       (11,676)
          71,512
          46,791
          38,468
         145,095
  
        (13,150)
          29,404
          48,976
          43,116
        108,346
                         
Plus:
                      
 
    Tax benefit of stock options and warrants
                60
                 55
                    -
               (81)
                  34
  
                    -
                    -
                    -
  
                    -
                         
Subtotal
       (11,616)
          71,567
          46,791
          38,387
         145,129
  
        (13,150)
          29,404
          48,976
          43,116
        108,346
                         
Plus:
                      
 
    Cash collected from sale of software
           2,000
                    -
                    -
                    -
             2,000
  
                    -
                    -
                    -
  
                    -
                         
Total
         (9,616)
          71,567
          46,791
          38,387
         147,129
  
        (13,150)
          29,404
          48,976
          43,116
        108,346


 
 
 


 
ACXIOM CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
 
(Unaudited)
 
(Dollars in thousands, except earnings per share)
                           
Q4 FY09 to Q4 FY10
   
06/30/08
09/30/08
12/31/08
03/31/09
FY2009
  
06/30/09
09/30/09
12/31/09
03/31/10
FY2010
  
%
$
Revenue:
                            
 
Services
236,695
233,605
231,077
218,885
920,262
  
199,326
210,213
218,340
221,553
849,432
  
1.2%
2,668
 
Products
94,378
95,330
89,979
76,624
356,311
  
56,655
60,892
65,467
66,789
249,803
  
-12.8%
(9,835)
 
  Total revenue
331,073
328,935
321,056
295,509
1,276,573
  
255,981
271,105
283,807
288,342
1,099,235
  
-2.4%
(7,167)
                               
Operating costs and expenses:
                            
 
Cost of revenue
                            
 
  Services
178,861
180,986
173,433
161,060
694,340
  
159,576
165,792
163,206
166,085
654,659
  
-3.1%
(5,025)
 
  Products
77,717
77,038
70,487
55,604
280,846
  
45,919
46,129
46,727
45,835
184,610
  
17.6%
9,769
 
  Total cost of revenue
256,578
258,024
243,920
216,664
975,186
  
205,495
211,921
209,933
211,920
839,269
  
2.2%
4,744
                               
 
Selling, general and administrative
49,482
38,988
42,560
38,930
169,960
  
37,643
37,964
43,477
43,013
162,097
  
-10.5%
(4,083)
 
Gains, losses and other items, net
(545)
         (2,370)
         43,175
         (1,694)
38,566
  
347
              (27)
              538
         (1,802)
(944)
  
6.4%
(108)
                               
 
     Total operating costs and expenses
305,515
294,642
329,655
253,900
1,183,712
  
243,485
249,858
253,948
253,131
1,000,422
  
0.3%
769
                               
 
Income (loss) from operations
25,558
34,293
(8,599)
41,609
92,861
  
12,496
21,247
29,859
35,211
98,813
  
-15.4%
(6,398)
 
  % Margin
7.7%
10.4%
-2.7%
14.1%
7.3%
  
4.9%
7.8%
10.5%
12.2%
9.0%
      
 
Other income (expense)
                            
 
  Interest expense
(9,459)
(8,591)
(8,105)
(6,441)
(32,596)
  
(5,505)
(5,423)
(5,687)
(5,865)
(22,480)
  
8.9%
576
 
  Other, net
1,359
287
140
163
1,949
  
(118)
223
198
122
425
  
-25.2%
(41)
 
Total other income (expense)
(8,100)
(8,304)
(7,965)
(6,278)
(30,647)
  
(5,623)
(5,200)
(5,489)
(5,743)
(22,055)
  
8.5%
(535)
                               
 
Earnings (loss) before income taxes
17,458
25,989
(16,564)
35,331
62,214
  
6,873
16,047
24,370
29,468
76,758
  
-16.6%
(5,863)
 
Income taxes
6,808
10,136
(5,115)
12,881
24,710
  
2,679
6,602
10,212
13,106
32,599
  
-1.7%
(225)
                               
 
Net earnings (loss)
10,650
15,853
(11,449)
22,450
37,504
  
4,194
9,445
14,158
16,362
44,159
  
-27.1%
(6,088)
                               
 
Less: Net earnings (loss) attributable
                            
 
         to noncontrolling interest
                  -
                  -
                  -
                  -
                  -
  
                  -
                  -
(104)
(286)
(390)
  
0.0%
(286)
                               
 
Net earnings (loss) attributable to Acxiom
10,650
15,853
(11,449)
22,450
37,504
  
4,194
9,445
14,262
16,648
44,549
  
-25.8%
(5,802)
                               
 
            Diluted earnings (loss) per share
                            
 
             attributable to Acxiom shareholders
0.14
0.20
(0.15)
0.29
0.48
  
0.05
0.12
0.18
0.21
0.56
  
-27.6%
(0.08)
 
 
 
 
 
 
 
 
ACXIOM CORPORATION AND SUBSIDIARIES
 
RESULTS BY SEGMENT
 
(Unaudited)
 
(Dollars in thousands)
                               
                           
Q4 FY09 to Q4 FY10
   
06/30/08
09/30/08
12/31/08
03/31/09
FY2009
  
06/30/09
09/30/09
12/31/09
03/31/10
FY2010
  
%
$
Revenue:
                            
                               
 
Services
236,695
233,605
231,077
218,885
920,262
  
199,326
210,213
218,340
221,553
849,432
  
1.2%
2,668
 
Products
94,378
95,330
89,979
76,624
356,311
  
56,655
60,892
65,467
66,789
249,803
  
-12.8%
(9,835)
                               
 
  Total revenue
331,073
328,935
321,056
295,509
1,276,573
  
255,981
271,105
283,807
288,342
1,099,235
  
-2.4%
(7,167)
                               
Income from operations:
                            
                               
 
Services
25,639
28,527
30,358
32,873
117,397
  
15,838
19,971
27,565
27,639
91,013
  
-15.9%
(5,234)
 
Products
(626)
3,396
4,218
7,042
14,030
  
(2,995)
1,249
2,832
5,770
6,856
  
-18.1%
(1,272)
 
Other
545
2,370
(43,175)
1,694
(38,566)
  
(347)
27
(538)
1,802
944
  
6.4%
108
                               
 
Total income (loss) from operations
25,558
34,293
(8,599)
41,609
92,861
  
12,496
21,247
29,859
35,211
98,813
  
-15.4%
(6,398)
                               
Margin:
                            
                               
 
Services
10.8%
12.2%
13.1%
15.0%
12.8%
  
7.9%
9.5%
12.6%
12.5%
10.7%
      
 
Products
-0.7%
3.6%
4.7%
9.2%
3.9%
  
-5.3%
2.1%
4.3%
8.6%
2.7%
      
                               
 
  Total
7.7%
10.4%
-2.7%
14.1%
7.3%
  
4.9%
7.8%
10.5%
12.2%
9.0%