UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
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CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of report (Date of earliest event reported): May 11, 2011
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ACXIOM CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
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DELAWARE
(State or Other Jurisdiction of Incorporation)
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0-13163
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71-0581897
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(Commission File Number)
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(IRS Employer Identification No.)
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601 E. Third St., Little Rock, Arkansas
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72201
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(Address of Principal Executive Offices)
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(Zip Code)
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501-342-1000
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(Registrant’s Telephone Number, Including Area Code)
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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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):
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit
Number
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Description
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99.1
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Press Release of the Company dated May 11, 2011 announcing earnings for the fourth quarter and fiscal year ended March 31, 2011.
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Exhibit
Number
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Description
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99.1
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Press Release of the Company dated May 11, 2011 announcing earnings for the fourth quarter and fiscal year ended March 31, 2011.
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·
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Revenue increased by 3.6% in the current quarter ended March 31, 2011 to $298.8 million, compared to $288.3 million for the quarter ended March 31, 2010.
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·
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Loss from operations of $53.0 million in the current-year fourth quarter compared to income from operations of $35.2 million in the fourth quarter of the prior year. Excluding the impact of unusual items, income from operations in the current quarter would be $34.9 million, a 4.3% increase over the prior-year quarter.
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·
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Loss per diluted share attributable to Acxiom stockholders of $0.83 in the current quarter, compared to earnings per share of $0.21 in the fourth quarter of fiscal 2010. Excluding the impact of unusual items in both periods, earnings per diluted share attributable to Acxiom stockholders would be $0.21 in the current period, a 10.5% increase over $0.19 the prior-year quarter.
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·
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Operating cash flow of $42.0 million, compared to $87.9 million in the fourth quarter a year ago.
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·
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Free cash flow available to equity of $14.7 million, compared to $43.1 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.
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·
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Goodwill/Asset Impairment of $79.7 million. $15.4 million related to European Services, $57.1 million related to European Products and $7.2 million related to Middle East, North Africa;
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·
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Disposal of operations of $3.3 million related to the disposal of the Netherlands and Portugal operations, of which $1.1 million represents cash payments to be made in future periods; and
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·
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Other charges of $6.5 million including $5.5 million to be paid in future periods.
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·
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Information Services: Revenue for the quarter ended March 31, 2011 was $224.6 million, up 1.4%, compared to $221.6 million for the quarter ended March 31, 2010. Income from operations for the current fourth quarter was $21.2 million, down 23.4% compared to $27.6 million in the prior-year fourth quarter.
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·
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Information Products: Revenue for the quarter increased 11.2% to $74.2 million, compared with $66.8 million in the fourth quarter a year ago. Income from operations for the quarter was $13.7 million, compared to $5.8 million in the fourth quarter of the previous year.
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·
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Revenue increased by 5.5% in fiscal 2011 to $1.160 billion, compared to $1.099 billion in fiscal 2010.
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·
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Income from operations of $30.9 million in the current year compared to income from operations of $98.8 million in the prior year. Excluding the impact of unusual items, income from operations in the current year would be $115.2 million compared to income from operations of $97.9 million in the prior year, an increase of 17.7%.
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·
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Loss per diluted share attributable to Acxiom stockholders of $0.29 in the current year, compared to income per share of $0.56 in fiscal 2010. Excluding the impact of unusual items in both years, earnings per diluted share attributable to Acxiom stockholders would be $0.68 in the current year, compared to $0.55 in the prior year, an increase of 23.6%.
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·
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Operating cash flow of $166.2 million, compared to $239.3 million in the prior year.
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·
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Free cash flow available to equity of $53.2 million, compared to $108.3 million in fiscal 2010. Free cash flow available to equity is a non-GAAP financial measure; a reconciliation to the comparable GAAP measure, operating cash flow, is attached to this news release.
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ACXIOM CORPORATION AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited)
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(Dollars in thousands, except earnings per share)
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||||||||||||||||
For the Three Months Ended
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March 31,
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$ | % | |||||||||||||||
2011
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2010
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Variance
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Variance
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Revenue:
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||||||||||||||||
Services
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224,556 | 221,553 | 3,003 | 1.4 | % | |||||||||||
Products
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74,240 | 66,789 | 7,451 | 11.2 | % | |||||||||||
Total revenue
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298,796 | 288,342 | 10,454 | 3.6 | % | |||||||||||
Operating costs and expenses:
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Cost of revenue
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Services
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176,065 | 166,085 | (9,980 | ) | (6.0 | %) | ||||||||||
Products
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47,551 | 45,835 | (1,716 | ) | (3.7 | %) | ||||||||||
Total cost of revenue
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223,616 | 211,920 | (11,696 | ) | (5.5 | %) | ||||||||||
Services gross margin
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21.6 | % | 25.0 | % | ||||||||||||
Products gross margin
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35.9 | % | 31.4 | % | ||||||||||||
Total gross margin
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25.2 | % | 26.5 | % | ||||||||||||
Selling, general and administrative
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40,324 | 43,013 | 2,689 | 6.3 | % | |||||||||||
Impairment of goodwill and other intangibles
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79,674 | - | ||||||||||||||
Gains, losses and other items, net
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8,219 | (1,802 | ) | (10,021 | ) | (556.1 | %) | |||||||||
Total operating costs and expenses
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351,833 | 253,131 | (98,702 | ) | (39.0 | %) | ||||||||||
Income (loss) from operations
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(53,037 | ) | 35,211 | (88,248 | ) | (250.6 | %) | |||||||||
Other income (expense):
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Interest expense
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(5,659 | ) | (5,865 | ) | 206 | 3.5 | % | |||||||||
Other, net
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(827 | ) | 122 | (949 | ) | (777.9 | %) | |||||||||
Total other income (expense)
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(6,486 | ) | (5,743 | ) | (743 | ) | (12.9 | %) | ||||||||
Earnings (loss) before income taxes
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(59,523 | ) | 29,468 | (88,991 | ) | (302.0 | %) | |||||||||
Income taxes
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11,466 | 13,106 | 1,640 | 12.5 | % | |||||||||||
Net earnings (loss)
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(70,989 | ) | 16,362 | (87,351 | ) | (533.9 | %) | |||||||||
Less: Net loss attributable to noncontrolling interest
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(3,933 | ) | (286 | ) | (3,647 | ) | - | |||||||||
Net earnings (loss) attributable to Acxiom
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(67,056 | ) | 16,648 | (83,704 | ) | (502.8 | %) | |||||||||
Earnings (loss) per share:
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Basic
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(0.88 | ) | 0.21 | (1.09 | ) | (519.0 | %) | |||||||||
Diluted
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(0.88 | ) | 0.20 | (1.08 | ) | (540.0 | %) | |||||||||
Earnings (loss) per share attributable to Acxiom stockholders:
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Basic
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(0.83 | ) | 0.21 | (1.04 | ) | (495.2 | %) | |||||||||
Diluted
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(0.83 | ) | 0.21 | (1.04 | ) | (495.2 | %) | |||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited)
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(Dollars in thousands, except earnings per share)
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For the Twelve Months Ended
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March 31,
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$ | % | |||||||||||||||
2011
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2010
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Variance
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Variance
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Revenue:
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Services
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893,594 | 849,432 | 44,162 | 5.2 | % | |||||||||||
Products
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266,376 | 249,803 | 16,573 | 6.6 | % | |||||||||||
Total revenue
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1,159,970 | 1,099,235 | 60,735 | 5.5 | % | |||||||||||
Operating costs and expenses:
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Cost of revenue
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Services
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694,988 | 654,659 | (40,329 | ) | (6.2 | %) | ||||||||||
Products
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189,900 | 184,610 | (5,290 | ) | (2.9 | %) | ||||||||||
Total cost of revenue
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884,888 | 839,269 | (45,619 | ) | (5.4 | %) | ||||||||||
Services gross margin
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22.2 | % | 22.9 | % | ||||||||||||
Products gross margin
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28.7 | % | 26.1 | % | ||||||||||||
Total gross margin
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23.7 | % | 23.6 | % | ||||||||||||
Selling, general and administrative
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159,884 | 162,097 | 2,213 | 1.4 | % | |||||||||||
Impairment of goodwill and other intangibles
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79,674 | - | ||||||||||||||
Gains, losses and other items, net
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4,600 | (944 | ) | (5,544 | ) | (587.3 | %) | |||||||||
Total operating costs and expenses
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1,129,046 | 1,000,422 | (128,624 | ) | (12.9 | %) | ||||||||||
Income from operations
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30,924 | 98,813 | (67,889 | ) | (68.7 | %) | ||||||||||
Other income (expense):
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Interest expense
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(23,823 | ) | (22,480 | ) | (1,343 | ) | (6.0 | %) | ||||||||
Other, net
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(1,466 | ) | 425 | (1,891 | ) | (444.9 | %) | |||||||||
Total other income (expense)
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(25,289 | ) | (22,055 | ) | (3,234 | ) | (14.7 | %) | ||||||||
Earnings before income taxes
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5,635 | 76,758 | (71,123 | ) | (92.7 | %) | ||||||||||
Income taxes
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34,077 | 32,599 | (1,478 | ) | (4.5 | %) | ||||||||||
Net earnings (loss)
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(28,442 | ) | 44,159 | (72,601 | ) | (164.4 | %) | |||||||||
Less: Net loss attributable to noncontrolling interest
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(5,295 | ) | (390 | ) | (4,905 | ) | - | |||||||||
Net earnings (loss) attributable to Acxiom
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(23,147 | ) | 44,549 | (67,696 | ) | (152.0 | %) | |||||||||
Earnings (loss) per share:
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Basic
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(0.36 | ) | 0.56 | (0.92 | ) | (164.3 | %) | |||||||||
Diluted
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(0.36 | ) | 0.55 | (0.91 | ) | (165.5 | %) | |||||||||
Earnings (loss) per share attributable to Acxiom stockholders:
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Basic
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(0.29 | ) | 0.56 | (0.85 | ) | (151.8 | %) | |||||||||
Diluted
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(0.29 | ) | 0.56 | (0.85 | ) | (151.8 | %) | |||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
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RECONCILIATION OF GAAP TO NON-GAAP EPS
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(Unaudited)
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||||||||||||||||
(Dollars in thousands, except earnings per share)
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||||||||||||||||
For the Three Months Ended
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For the Twelve Months Ended
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March 31,
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March 31,
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|||||||||||||||
2011
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2010
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2011
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2010
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Earnings (loss) before income taxes
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(59,523 | ) | 29,468 | 5,635 | 76,758 | |||||||||||
Unusual items
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89,449 | (1,802 | ) | 85,830 | (944 | ) | ||||||||||
Earnings before income taxes and unusual items
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29,926 | 27,666 | 91,465 | 75,814 | ||||||||||||
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Earnings (loss) before income taxes
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(59,523 | ) | 29,468 | 5,635 | 76,758 | |||||||||||
Income taxes
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11,466 | 13,106 | 34,077 | 32,599 | ||||||||||||
Net earnings (loss)
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(70,989 | ) | 16,362 | (28,442 | ) | 44,159 | ||||||||||
Less: Net earnings attributable to noncontrolling interest
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(3,933 | ) | (286 | ) | (5,295 | ) | (390 | ) | ||||||||
Net earnings (loss) attributable to Acxiom
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(67,056 | ) | 16,648 | (23,147 | ) | 44,549 | ||||||||||
Earnings (loss) per share attributable to Acxiom stockholders:
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Basic
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(0.83 | ) | 0.21 | (0.29 | ) | 0.56 | ||||||||||
Diluted
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(0.83 | ) | 0.21 | (0.29 | ) | 0.56 | ||||||||||
Unusual items:
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||||||||||||||||
Disposal of Netherlands and Portugal operations
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3,340 | - | 3,340 | - | ||||||||||||
Restructuring costs
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5,503 | - | 5,503 | - | ||||||||||||
Goodwill and other intangibles impairment
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79,674 | - | 79,674 | - | ||||||||||||
Earnout adjustments
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(624 | ) | - | (1,058 | ) | - | ||||||||||
Investment impairment
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1,556 | - | 1,556 | - | ||||||||||||
Adjustments to previous reserves
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- | (1,802 | ) | (3,185 | ) | (944 | ) | |||||||||
Total unusual items
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89,449 | (1,802 | ) | 85,830 | (944 | ) | ||||||||||
Earnings before income taxes
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||||||||||||||||
and excluding unusual items
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29,926 | 27,666 | 91,465 | 75,814 | ||||||||||||
Income taxes
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13,260 | 12,314 | 37,848 | 32,141 | ||||||||||||
Non-GAAP net earnings
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16,666 | 15,352 | 53,617 | 43,673 | ||||||||||||
Less: Net earnings attributable to noncontrolling interest
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(827 | ) | (286 | ) | (2,189 | ) | (390 | ) | ||||||||
Non-GAAP Net earnings attributable to Acxiom
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17,493 | 15,638 | 55,806 | 44,063 | ||||||||||||
Non-GAAP earnings per share attributable to Acxiom stockholders:
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Basic
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0.22 | 0.20 | 0.70 | 0.56 | ||||||||||||
Diluted
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0.21 | 0.19 | 0.68 | 0.55 | ||||||||||||
Diluted weighted average shares
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82,224 | 81,765 | ||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
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RECONCILIATION OF GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS
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(Unaudited)
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(Dollars in thousands, except earnings per share)
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||||||||||||||||
For the Three Months Ended
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For the Twelve Months Ended
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March 31,
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March 31,
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|||||||||||||||
2011
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2010
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2011
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2010
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Income (loss) from operations
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(53,037 | ) | 35,211 | 30,924 | 98,813 | |||||||||||
Unusual items
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87,893 | (1,802 | ) | 84,274 | (944 | ) | ||||||||||
Income from operations before unusual items
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34,856 | 33,409 | 115,198 | 97,869 | ||||||||||||
Unusual items:
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Disposal of Netherlands and Portugal operations
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3,340 | - | 3,340 | - | ||||||||||||
Restructuring costs
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5,503 | - | 5,503 | - | ||||||||||||
Goodwill and other intangibles impairment
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79,674 | - | 79,674 | - | ||||||||||||
Earnout adjustments
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(624 | ) | - | (1,058 | ) | - | ||||||||||
Adjustments to previous reserves
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- | (1,802 | ) | (3,185 | ) | (944 | ) | |||||||||
Total unusual items
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87,893 | (1,802 | ) | 84,274 | (944 | ) | ||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
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CALCULATION OF EARNINGS (LOSS) PER SHARE
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(Unaudited)
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(In thousands, except earnings per share)
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For the Three Months Ended
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March 31,
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March 31,
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|||||||
2011
|
2010
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Basic earnings (loss) per share:
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||||||||
Numerator - net earnings (loss)
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(70,989 | ) | 16,362 | |||||
Denominator - weighted-average shares outstanding
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80,423 | 79,245 | ||||||
Basic earnings (loss) per share
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(0.88 | ) | 0.21 | |||||
Diluted earnings (loss) per share:
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||||||||
Numerator - net earnings (loss)
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(70,989 | ) | 16,362 | |||||
Denominator - weighted-average shares outstanding
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80,423 | 79,245 | ||||||
Dilutive effect of common stock options, warrants and restricted stock
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- | 1,395 | ||||||
80,423 | 80,640 | |||||||
Diluted earnings (loss) per share
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(0.88 | ) | 0.20 | |||||
Basic earnings (loss) per share attributable to Acxiom stockholders:
|
||||||||
Numerator - net earnings (loss) attributable to Acxiom
|
(67,056 | ) | 16,648 | |||||
Denominator - weighted-average shares outstanding
|
80,423 | 79,245 | ||||||
Basic earnings (loss) per share attributable to Acxiom stockholders
|
(0.83 | ) | 0.21 | |||||
Diluted earnings (loss) per share attributable to Acxiom stockholders:
|
||||||||
Numerator - net earnings (loss) attributable to Acxiom
|
(67,056 | ) | 16,648 | |||||
Denominator - weighted-average shares outstanding
|
80,423 | 79,245 | ||||||
Dilutive effect of common stock options, warrants, and restricted stock
|
- | 1,395 | ||||||
80,423 | 80,640 | |||||||
Diluted earnings (loss) per share attributable to Acxiom stockholders
|
(0.83 | ) | 0.21 | |||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||
CALCULATION OF EARNINGS (LOSS) PER SHARE
|
||||||||
(Unaudited)
|
||||||||
(In thousands, except earnings per share)
|
||||||||
For the Twelve Months Ended
|
||||||||
March 31,
|
March 31,
|
|||||||
2011
|
2010
|
|||||||
Basic earnings (loss) per share:
|
||||||||
Numerator - net earnings (loss)
|
(28,442 | ) | 44,159 | |||||
Denominator - weighted-average shares outstanding
|
80,111 | 78,974 | ||||||
Basic earnings (loss) per share
|
(0.36 | ) | 0.56 | |||||
Diluted earnings (loss) per share:
|
||||||||
Numerator - net earnings (loss)
|
(28,442 | ) | 44,159 | |||||
Denominator - weighted-average shares outstanding
|
80,111 | 78,974 | ||||||
Dilutive effect of common stock options, warrants and restricted stock
|
- | 751 | ||||||
80,111 | 79,725 | |||||||
Diluted earnings (loss) per share
|
(0.36 | ) | 0.55 | |||||
Basic earnings (loss) per share attributable to Acxiom stockholders:
|
||||||||
Numerator - net earnings (loss) attributable to Acxiom
|
(23,147 | ) | 44,549 | |||||
Denominator - weighted-average shares outstanding
|
80,111 | 78,974 | ||||||
Basic earnings (loss) per share attributable to Acxiom stockholders
|
(0.29 | ) | 0.56 | |||||
Diluted earnings (loss) per share attributable to Acxiom stockholders:
|
||||||||
Numerator - net earnings (loss) attributable to Acxiom
|
(23,147 | ) | 44,549 | |||||
Denominator - weighted-average shares outstanding
|
80,111 | 78,974 | ||||||
Dilutive effect of common stock options, warrants, and restricted stock
|
- | 751 | ||||||
80,111 | 79,725 | |||||||
Diluted earnings (loss) per share attributable to Acxiom stockholders
|
(0.29 | ) | 0.56 | |||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||
RESULTS BY SEGMENT
|
||||||||
(Unaudited)
|
||||||||
(Dollars in thousands)
|
||||||||
For the Three Months Ended
|
||||||||
March 31,
|
March 31,
|
|||||||
Revenue:
|
2011
|
2010
|
||||||
Information services
|
224,556 | 221,553 | ||||||
Information products
|
74,240 | 66,789 | ||||||
Total revenue
|
298,796 | 288,342 | ||||||
Income from operations:
|
||||||||
Information services
|
21,181 | 27,639 | ||||||
Information products
|
13,675 | 5,770 | ||||||
Other
|
(87,893 | ) | 1,802 | |||||
Total income (loss) from operations
|
(53,037 | ) | 35,211 | |||||
Margin:
|
||||||||
Information services
|
9.4 | % | 12.5 | % | ||||
Information products
|
18.4 | % | 8.6 | % | ||||
Total margin
|
-17.8 | % | 12.2 | % |
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||
RESULTS BY SEGMENT
|
||||||||
(Unaudited)
|
||||||||
(Dollars in thousands)
|
||||||||
For the Twelve Months Ended
|
||||||||
March 31,
|
March 31,
|
|||||||
Revenue:
|
2011
|
2010
|
||||||
Information services
|
893,594 | 849,432 | ||||||
Information products
|
266,376 | 249,803 | ||||||
Total revenue
|
1,159,970 | 1,099,235 | ||||||
Income from operations:
|
||||||||
Information services
|
91,402 | 91,013 | ||||||
Information products
|
23,796 | 6,856 | ||||||
Other
|
(84,274 | ) | 944 | |||||
Total income from operations
|
30,924 | 98,813 | ||||||
Margin:
|
||||||||
Information services
|
10.2 | % | 10.7 | % | ||||
Information products
|
8.9 | % | 2.7 | % | ||||
Total margin
|
2.7 | % | 9.0 | % | ||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
March 31,
|
March 31,
|
$ | % | |||||||||||||
2011
|
2010
|
Variance
|
Variance
|
|||||||||||||
Assets
|
||||||||||||||||
Current assets:
|
||||||||||||||||
Cash and cash equivalents
|
207,023 | 224,104 | (17,081 | ) | (7.6 | %) | ||||||||||
Trade accounts receivable, net
|
176,654 | 168,522 | 8,132 | 4.8 | % | |||||||||||
Deferred income taxes
|
12,480 | 11,874 | 606 | 5.1 | % | |||||||||||
Refundable income taxes
|
7,402 | - | 7,402 | 100.0 | % | |||||||||||
Other current assets
|
55,691 | 54,205 | 1,486 | 2.7 | % | |||||||||||
Total current assets
|
459,250 | 458,705 | 545 | 0.1 | % | |||||||||||
Property and equipment
|
888,717 | 824,084 | 64,633 | 7.8 | % | |||||||||||
Less - accumulated depreciation and amortization
|
633,410 | 587,245 | 46,165 | 7.9 | % | |||||||||||
Property and equipment, net
|
255,307 | 236,839 | 18,468 | 7.8 | % | |||||||||||
Software, net of accumulated amortization
|
26,412 | 38,845 | (12,433 | ) | (32.0 | %) | ||||||||||
Goodwill
|
417,654 | 470,261 | (52,607 | ) | (11.2 | %) | ||||||||||
Purchased software licenses, net of accumulated amortization
|
38,583 | 51,356 | (12,773 | ) | (24.9 | %) | ||||||||||
Deferred costs, net
|
81,837 | 68,914 | 12,923 | 18.8 | % | |||||||||||
Data acquisition costs
|
17,627 | 21,931 | (4,304 | ) | (19.6 | %) | ||||||||||
Other assets, net
|
9,955 | 16,569 | (6,614 | ) | (39.9 | %) | ||||||||||
1,306,625 | 1,363,420 | (56,795 | ) | (4.2 | %) | |||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||
Current liabilities:
|
||||||||||||||||
Current installments of long-term debt
|
27,978 | 42,106 | 14,128 | 33.6 | % | |||||||||||
Trade accounts payable
|
27,506 | 42,774 | 15,268 | 35.7 | % | |||||||||||
Accrued payroll and related expenses
|
42,236 | 36,517 | (5,719 | ) | (15.7 | %) | ||||||||||
Other accrued expenses
|
75,852 | 75,631 | (221 | ) | (0.3 | %) | ||||||||||
Deferred revenue
|
55,921 | 55,567 | (354 | ) | (0.6 | %) | ||||||||||
Income taxes
|
- | 2,460 | 2,460 | 100.0 | % | |||||||||||
Total current liabilities
|
229,493 | 255,055 | 25,562 | 10.0 | % | |||||||||||
Long-term debt
|
394,260 | 458,629 | 64,369 | 14.0 | % | |||||||||||
Deferred income taxes
|
84,360 | 61,284 | (23,076 | ) | (37.7 | %) | ||||||||||
Other liabilities
|
7,478 | 9,954 | 2,476 | 24.9 | % | |||||||||||
Stockholders' equity:
|
||||||||||||||||
Common stock
|
11,777 | 11,662 | 115 | 1.0 | % | |||||||||||
Additional paid-in capital
|
837,439 | 814,929 | 22,510 | 2.8 | % | |||||||||||
Retained earnings
|
459,096 | 482,243 | (23,147 | ) | (4.8 | %) | ||||||||||
Accumulated other comprehensive income
|
15,991 | 4,167 | 11,824 | 283.8 | % | |||||||||||
Treasury stock, at cost
|
(739,125 | ) | (738,601 | ) | (524 | ) | 0.1 | % | ||||||||
Total Acxiom stockholders' equity
|
585,178 | 574,400 | 10,778 | 1.9 | % | |||||||||||
Noncontrolling interest
|
5,856 | 4,097 | 1,759 | 42.9 | % | |||||||||||
Total equity
|
591,034 | 578,497 | 12,537 | 2.2 | % | |||||||||||
1,306,625 | 1,363,419 | (56,794 | ) | (4.2 | %) | |||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
(Dollars in thousands)
|
||||||||
For the Three Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings (loss)
|
(70,989 | ) | 16,362 | |||||
Non-cash operating activities:
|
||||||||
Impairment of goodwill and other intangibles
|
79,674 | - | ||||||
Depreciation and amortization
|
37,769 | 42,652 | ||||||
Loss (Gain) on disposal or impairment of assets
|
4,155 | 7 | ||||||
Deferred income taxes
|
15,102 | 9,710 | ||||||
Non-cash stock compensation expense
|
3,200 | 2,502 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(5,111 | ) | 10,290 | |||||
Other assets
|
2,197 | (9,742 | ) | |||||
Deferred costs
|
(978 | ) | (4,908 | ) | ||||
Accounts payable and other liabilities
|
(12,015 | ) | 22,999 | |||||
Deferred revenue
|
(10,969 | ) | (1,968 | ) | ||||
Net cash provided by operating activities
|
42,035 | 87,904 | ||||||
Cash flows from investing activities:
|
||||||||
Disposal of operations
|
(1,079 | ) | - | |||||
Capitalized software
|
(963 | ) | (1,596 | ) | ||||
Capital expenditures
|
(12,213 | ) | (26,536 | ) | ||||
Data acquisition costs
|
(2,650 | ) | (4,577 | ) | ||||
Payments for investments
|
- | (1,000 | ) | |||||
Net cash used by investing activities
|
(16,905 | ) | (33,709 | ) | ||||
Cash flows from financing activities:
|
||||||||
Payments of debt
|
(24,012 | ) | (32,079 | ) | ||||
Sale of common stock
|
1,997 | 2,911 | ||||||
Tax impact of stock options exercised
|
(316 | ) | (683 | ) | ||||
Net cash used by financing activities
|
(22,331 | ) | (29,851 | ) | ||||
Effect of exchange rate changes on cash
|
288 | (822 | ) | |||||
Net change in cash and cash equivalents
|
3,087 | 23,522 | ||||||
Cash and cash equivalents at beginning of period
|
203,936 | 200,582 | ||||||
Cash and cash equivalents at end of period
|
207,023 | 224,104 | ||||||
Supplemental cash flow information:
|
||||||||
Cash paid (received) during the period for:
|
||||||||
Interest
|
6,158 | 4,530 | ||||||
Income taxes
|
2,345 | 901 | ||||||
Payments on capital leases and installment payment arrangements
|
5,252 | 7,090 | ||||||
Payments on software and data license liabilities
|
4,139 | 1,392 | ||||||
Other debt payments, excluding line of credit
|
2,154 | 3,597 | ||||||
Prepayment of debt
|
12,467 | 20,000 | ||||||
Noncash investing and financing activities:
|
||||||||
Acquisition of property and equipment under capital lease
|
||||||||
and installment payment arrangements
|
1,324 | 5,946 | ||||||
Software licenses and maintenance acquired under software obligation
|
- | 1,560 |
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
(Dollars in thousands)
|
||||||||
For the Twelve Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
(28,442 | ) | 44,159 | |||||
Non-cash operating activities:
|
||||||||
Impairment of goodwill and other intangibles
|
79,674 | - | ||||||
Depreciation and amortization
|
146,355 | 167,564 | ||||||
Loss (gain) on disposal or impairment of assets
|
3,883 | 417 | ||||||
Deferred income taxes
|
19,347 | 32,810 | ||||||
Non-cash stock compensation expense
|
13,097 | 10,790 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(13,024 | ) | 10,295 | |||||
Other assets
|
(2,394 | ) | 2,171 | |||||
Deferred costs
|
(29,385 | ) | (20,289 | ) | ||||
Accounts payable and other liabilities
|
(23,667 | ) | (8,215 | ) | ||||
Deferred revenue
|
775 | (420 | ) | |||||
Net cash provided by operating activities
|
166,219 | 239,282 | ||||||
Cash flows from investing activities:
|
||||||||
Disposal of operations
|
(1,079 | ) | - | |||||
Sale of assets
|
- | 1,058 | ||||||
Capitalized software
|
(4,555 | ) | (8,257 | ) | ||||
Capital expenditures
|
(59,021 | ) | (57,908 | ) | ||||
Data acquisition costs
|
(13,366 | ) | (18,808 | ) | ||||
Payments from (for) investments
|
175 | (2,000 | ) | |||||
Net cash paid in acquisitions
|
(12,927 | ) | (3,428 | ) | ||||
Net cash used by investing activities
|
(90,773 | ) | (89,343 | ) | ||||
Cash flows from financing activities:
|
||||||||
Payments of debt
|
(102,101 | ) | (104,521 | ) | ||||
Fees for debt refinancing
|
- | (4,564 | ) | |||||
Sale of common stock
|
9,320 | 5,926 | ||||||
Tax impact of stock options exercised
|
(316 | ) | (683 | ) | ||||
Acquisition of treasury stock
|
- | (307 | ) | |||||
Noncontrolling interests equity contributions
|
480 | 457 | ||||||
Net cash used by financing activities
|
(92,617 | ) | (103,692 | ) | ||||
Effect of exchange rate changes on cash
|
90 | 691 | ||||||
Net change in cash and cash equivalents
|
(17,081 | ) | 46,938 | |||||
Cash and cash equivalents at beginning of period
|
224,104 | 177,166 | ||||||
Cash and cash equivalents at end of period
|
207,023 | 224,104 | ||||||
Supplemental cash flow information:
|
||||||||
Cash paid (received) during the period for:
|
||||||||
Interest
|
23,886 | 21,337 | ||||||
Income taxes
|
25,339 | (7,549 | ) | |||||
Payments on capital leases and installment payment arrangements
|
22,357 | 29,697 | ||||||
Payments on software and data license liabilities
|
5,316 | 7,526 | ||||||
Other debt payments, excluding line of credit
|
8,428 | 9,798 | ||||||
Prepayment of debt
|
66,000 | 57,500 | ||||||
Noncash investing and financing activities:
|
||||||||
Acquisition of property and equipment under capital lease
|
||||||||
and installment payment arrangements
|
23,753 | 24,193 | ||||||
Software licenses and maintenance acquired under software obligation
|
- | 2,171 |
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||||||||
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
|
||||||||||||||||||||||||||||||||||||||||
AND RECONCILIATION TO OPERATING CASH FLOW
|
||||||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
06/30/09
|
09/30/09
|
12/31/09
|
03/31/10
|
FY2010
|
06/30/10
|
09/30/10
|
12/31/10
|
03/31/11
|
FY2011
|
|||||||||||||||||||||||||||||||
Net cash provided by operating activities
|
16,166 | 60,703 | 74,509 | 87,904 | 239,282 | 16,988 | 42,966 | 64,230 | 42,035 | 166,219 | ||||||||||||||||||||||||||||||
Plus:
|
||||||||||||||||||||||||||||||||||||||||
Sale of assets
|
- | - | 1,058 | - | 1,058 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||||||
Capitalized software
|
(2,384 | ) | (2,431 | ) | (1,846 | ) | (1,596 | ) | (8,257 | ) | (1,226 | ) | (1,341 | ) | (1,025 | ) | (963 | ) | (4,555 | ) | ||||||||||||||||||||
Capital expenditures
|
(7,431 | ) | (14,462 | ) | (9,479 | ) | (26,536 | ) | (57,908 | ) | (8,752 | ) | (21,734 | ) | (16,322 | ) | (12,213 | ) | (59,021 | ) | ||||||||||||||||||||
Data acquisition costs
|
(5,777 | ) | (3,004 | ) | (5,450 | ) | (4,577 | ) | (18,808 | ) | (4,326 | ) | (2,625 | ) | (3,765 | ) | (2,650 | ) | (13,366 | ) | ||||||||||||||||||||
Payments on capital leases and installment payment arrangements
|
(7,794 | ) | (7,504 | ) | (7,309 | ) | (7,090 | ) | (29,697 | ) | (5,968 | ) | (5,411 | ) | (5,726 | ) | (5,252 | ) | (22,357 | ) | ||||||||||||||||||||
Payments on software and data license liabilities
|
(3,878 | ) | (1,840 | ) | (416 | ) | (1,392 | ) | (7,526 | ) | (893 | ) | (164 | ) | (120 | ) | (4,139 | ) | (5,316 | ) | ||||||||||||||||||||
Other required debt payments
|
(2,052 | ) | (2,058 | ) | (2,091 | ) | (3,597 | ) | (9,798 | ) | (2,103 | ) | (2,028 | ) | (2,143 | ) | (2,154 | ) | (8,428 | ) | ||||||||||||||||||||
Total
|
(13,150 | ) | 29,404 | 48,976 | 43,116 | 108,346 | (6,280 | ) | 9,663 | 35,129 | 14,664 | 53,176 | ||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except earnings per share)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Q4 FY10 to Q4 FY11
|
||||||||||||||||||||||||||||||||||||||||||||||||
06/30/09
|
09/30/09
|
12/31/09
|
03/31/10
|
FY2010
|
06/30/10
|
09/30/10
|
12/31/10
|
03/31/11
|
FY2011
|
%
|
$ | |||||||||||||||||||||||||||||||||||||
Revenue:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Services
|
199,326 | 210,213 | 218,340 | 221,553 | 849,432 | 210,656 | 225,584 | 232,798 | 224,556 | 893,594 | 1.4 | % | 3,003 | |||||||||||||||||||||||||||||||||||
Products
|
56,655 | 60,892 | 65,467 | 66,789 | 249,803 | 59,739 | 66,085 | 66,312 | 74,240 | 266,376 | 11.2 | % | 7,451 | |||||||||||||||||||||||||||||||||||
Total revenue
|
255,981 | 271,105 | 283,807 | 288,342 | 1,099,235 | 270,395 | 291,669 | 299,110 | 298,796 | 1,159,970 | 3.6 | % | 10,454 | |||||||||||||||||||||||||||||||||||
Operating costs and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue
|
||||||||||||||||||||||||||||||||||||||||||||||||
Services
|
159,576 | 165,792 | 163,206 | 166,085 | 654,659 | 164,650 | 175,687 | 178,586 | 176,065 | 694,988 | 6.0 | % | 9,980 | |||||||||||||||||||||||||||||||||||
Products
|
45,919 | 46,129 | 46,727 | 45,835 | 184,610 | 45,771 | 48,320 | 48,258 | 47,551 | 189,900 | 3.7 | % | 1,716 | |||||||||||||||||||||||||||||||||||
Total cost of revenue
|
205,495 | 211,921 | 209,933 | 211,920 | 839,269 | 210,421 | 224,007 | 226,844 | 223,616 | 884,888 | 5.5 | % | 11,696 | |||||||||||||||||||||||||||||||||||
Selling, general and administrative
|
37,643 | 37,964 | 43,477 | 43,013 | 162,097 | 37,955 | 40,274 | 41,331 | 40,324 | 159,884 | -6.3 | % | (2,689 | ) | ||||||||||||||||||||||||||||||||||
Impairment of goodwill and other intangibles
|
79,674 | 79,674 | 79,674 | |||||||||||||||||||||||||||||||||||||||||||||
Gains, losses and other items, net
|
347 | (27 | ) | 538 | (1,802 | ) | (944 | ) | (57 | ) | 78 | (3,640 | ) | 8,219 | 4,600 | -556.1 | % | 10,021 | ||||||||||||||||||||||||||||||
Total operating costs and expenses
|
243,485 | 249,858 | 253,948 | 253,131 | 1,000,422 | 248,319 | 264,359 | 264,535 | 351,833 | 1,129,046 | -39.0 | % | (98,702 | ) | ||||||||||||||||||||||||||||||||||
Income from operations
|
12,496 | 21,247 | 29,859 | 35,211 | 98,813 | 22,076 | 27,310 | 34,575 | (53,037 | ) | 30,924 | -250.6 | % | (88,248 | ) | |||||||||||||||||||||||||||||||||
% Margin
|
4.9 | % | 7.8 | % | 10.5 | % | 12.2 | % | 9.0 | % | 8.2 | % | 9.4 | % | 11.6 | % | -17.8 | % | 2.7 | % | ||||||||||||||||||||||||||||
Other income (expense)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense
|
(5,505 | ) | (5,423 | ) | (5,687 | ) | (5,865 | ) | (22,480 | ) | (5,898 | ) | (6,260 | ) | (6,006 | ) | (5,659 | ) | (23,823 | ) | -3.5 | % | 206 | |||||||||||||||||||||||||
Other, net
|
(118 | ) | 223 | 198 | 122 | 425 | (451 | ) | 111 | (299 | ) | (827 | ) | (1,466 | ) | -777.9 | % | (949 | ) | |||||||||||||||||||||||||||||
Total other income (expense)
|
(5,623 | ) | (5,200 | ) | (5,489 | ) | (5,743 | ) | (22,055 | ) | (6,349 | ) | (6,149 | ) | (6,305 | ) | (6,486 | ) | (25,289 | ) | 12.9 | % | (743 | ) | ||||||||||||||||||||||||
Earnings before income taxes
|
6,873 | 16,047 | 24,370 | 29,468 | 76,758 | 15,727 | 21,161 | 28,270 | (59,523 | ) | 5,635 | -302.0 | % | (88,991 | ) | |||||||||||||||||||||||||||||||||
Income taxes
|
2,679 | 6,602 | 10,212 | 13,106 | 32,599 | 6,291 | 8,464 | 7,856 | 11,466 | 34,077 | 12.5 | % | 1,640 | |||||||||||||||||||||||||||||||||||
Net earnings (loss)
|
4,194 | 9,445 | 14,158 | 16,362 | 44,159 | 9,436 | 12,697 | 20,414 | (70,989 | ) | (28,442 | ) | -533.9 | % | (87,351 | ) | ||||||||||||||||||||||||||||||||
Less: Net loss attributable
|
||||||||||||||||||||||||||||||||||||||||||||||||
to noncontrolling interest
|
- | - | (104 | ) | (286 | ) | (390 | ) | (369 | ) | (584 | ) | (409 | ) | (3,933 | ) | (5,295 | ) | 1275.2 | % | (3,647 | ) | ||||||||||||||||||||||||||
Net earnings (loss) attributable to Acxiom
|
4,194 | 9,445 | 14,262 | 16,648 | 44,549 | 9,805 | 13,281 | 20,823 | (67,056 | ) | (23,147 | ) | -502.8 | % | (83,704 | ) | ||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share
|
||||||||||||||||||||||||||||||||||||||||||||||||
attributable to Acxiom shareholders
|
0.05 | 0.12 | 0.18 | 0.21 | 0.56 | 0.12 | 0.16 | 0.25 | (0.83 | ) | (0.29 | ) | -495.2 | % | (1.04 | ) | ||||||||||||||||||||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||||||||||||||||
RESULTS BY SEGMENT
|
||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Q4 FY10 to Q4 FY11
|
||||||||||||||||||||||||||||||||||||||||||||||||
06/30/09
|
09/30/09
|
12/31/09
|
03/31/10
|
FY2010
|
06/30/10
|
09/30/10
|
12/31/10
|
03/31/11
|
FY2011
|
%
|
$ | |||||||||||||||||||||||||||||||||||||
Revenue:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Services
|
199,326 | 210,213 | 218,340 | 221,553 | 849,432 | 210,656 | 225,584 | 232,798 | 224,556 | 893,594 | 1.4 | % | 3,003 | |||||||||||||||||||||||||||||||||||
Products
|
56,655 | 60,892 | 65,467 | 66,789 | 249,803 | 59,739 | 66,085 | 66,312 | 74,240 | 266,376 | 11.2 | % | 7,451 | |||||||||||||||||||||||||||||||||||
Total revenue
|
255,981 | 271,105 | 283,807 | 288,342 | 1,099,235 | 270,395 | 291,669 | 299,110 | 298,796 | 1,159,970 | 3.6 | % | 10,454 | |||||||||||||||||||||||||||||||||||
Income from operations:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Services
|
15,838 | 19,971 | 27,565 | 27,639 | 91,013 | 20,879 | 22,952 | 26,390 | 21,181 | 91,402 | -23.4 | % | (6,458 | ) | ||||||||||||||||||||||||||||||||||
Products
|
(2,995 | ) | 1,249 | 2,832 | 5,770 | 6,856 | 1,140 | 4,436 | 4,545 | 13,675 | 23,796 | 137.0 | % | 7,905 | ||||||||||||||||||||||||||||||||||
Other
|
(347 | ) | 27 | (538 | ) | 1,802 | 944 | 57 | (78 | ) | 3,640 | (87,893 | ) | (84,274 | ) | -4977.5 | % | (89,695 | ) | |||||||||||||||||||||||||||||
Total income (loss) from operations
|
12,496 | 21,247 | 29,859 | 35,211 | 98,813 | 22,076 | 27,310 | 34,575 | (53,037 | ) | 30,924 | -250.6 | % | (88,248 | ) | |||||||||||||||||||||||||||||||||
Margin:
|
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Services
|
7.9 | % | 9.5 | % | 12.6 | % | 12.5 | % | 10.7 | % | 9.9 | % | 10.2 | % | 11.3 | % | 9.4 | % | 10.2 | % | ||||||||||||||||||||||||||||
Products
|
-5.3 | % | 2.1 | % | 4.3 | % | 8.6 | % | 2.7 | % | 1.9 | % | 6.7 | % | 6.9 | % | 18.4 | % | 8.9 | % | ||||||||||||||||||||||||||||
Total
|
4.9 | % | 7.8 | % | 10.5 | % | 12.2 | % | 9.0 | % | 8.2 | % | 9.4 | % | 11.6 | % | -17.8 | % | 2.7 | % | ||||||||||||||||||||||||||||