UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
Amendment No. 1
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 1, 2014
|
Commission file number 0-13163
|
|
Acxiom Corporation
(Exact Name of Registrant as Specified in Its Charter)
|
|
DELAWARE
(State or Other Jurisdiction of
Incorporation or Organization)
|
71-0581897
(I.R.S. Employer
Identification No.)
|
P.O. Box 8190, 601 E. Third Street,
Little Rock, Arkansas
(Address of Principal Executive Offices)
|
72203-8190
(Zip Code)
|
(501) 342-1000
(Registrant's Telephone Number, Including Area Code)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
(a)(1) Financial Statements of Businesses Acquired
|
|
(b)(1) Pro Forma Financial Information
|
Exhibit No.
|
Description
|
23.1
|
Consent of Independent Certified Public Accountant
|
99.1
|
LiveRamp Audited Financial Statements as of and for the year ended December 31, 2013 and accompanying notes thereto together with the Report of Independent Auditor’s, and LiveRamp
Unaudited Financial Statements as of March 31, 2014 and for the three months ended March 31, 2014 and 2013, and accompanying notes thereto
|
99.2
|
Unaudited Pro Forma Condensed Combined Financial Information
|
|
Title:
|
Chief Ethics and Legal Officer & Executive
|
Exhibit Number
|
Description
|
23.1
|
Consent of Independent Certified Public Accountant
|
99.1
|
LiveRamp Audited Financial Statements as of and for the year ended December 31, 2013 and accompanying notes thereto together with the Report of Independent Auditor’s, and LiveRamp Unaudited
Financial Statements as of March 31, 2014 and for the three months ended March 31, 2014 and 2013, and accompanying notes thereto
|
99.2
|
Unaudited Pro Forma Condensed Combined Financial Information
|
Independent Auditor’s Report for the Year Ended December 31, 2013
|
3
|
Financial Statements
|
|
Balance Sheets as of December 31, 2013 and March 31, 2014 (unaudited)
|
5
|
Statements of Operations for the Year Ended December 31, 2013 and the Three Months Ended March 31, 2013 (unaudited) and March 31, 2014 (unaudited)
|
6
|
Statements of Stockholders’ Equity for the Year Ended December 31, 2013 and the Three Months Ended March 31, 2014 (unaudited)
|
7
|
Statements of Cash Flows for the Year Ended December 31, 2013 and the Three Months Ended March 31, 2013 (unaudited) and March 31, 2014 (unaudited)
|
8
|
Notes to Financial Statements
|
9 – 20
|
|
|
|
![]() |
Tel: 415-397-7900
Fax: 415-397-2161
www.bdo.com
|
One Bush Street
Suite 1800
San Francisco, CA 94104
|
|
Independent Auditor’s Report
|
BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.
BDO is the brand name for the BDO network and for each of the BDO Member Firms.
|
|
|
|||||||||
Balance Sheets
|
|||||||||
(In Thousands)
|
|||||||||
December 31,
|
March 31,
|
||||||||
2013
|
2014
|
||||||||
(Unaudited)
|
|||||||||
Assets
|
|||||||||
Current Assets
|
|||||||||
Cash and cash equivalents
|
$ | 9,828 | $ | 10,586 | |||||
Accounts receivable, net
|
5,929 | 5,106 | |||||||
Prepaid expenses and other current assets
|
225 | 514 | |||||||
Total current assets
|
15,982 | 16,206 | |||||||
Property and Equipment, Net
|
473 | 1,004 | |||||||
Other Assets
|
79 | 77 | |||||||
Total Assets
|
$ | 16,534 | $ | 17,287 | |||||
Liabilities and Stockholders’ Equity
|
|||||||||
Current Liabilities
|
|||||||||
Accounts payable
|
$ | 2,092 | $ | 2,069 | |||||
Accrued expenses and other current liabilities
|
1,449 | 1,049 | |||||||
Total current liabilities
|
3,541 | 3,118 | |||||||
Commitments and Contingencies (Note 9)
|
|||||||||
Stockholders' Equity
|
|||||||||
Series A convertible preferred stock - $0.0001 par value;
|
|||||||||
1,258,345 shares authorized; 1,195,741 shares issued and outstanding at
|
|||||||||
December 31, 2013 and March 31, 2014 (unaudited)
|
|||||||||
(liquidation preference of $955,040 at December 31, 2013 and March 31, 2014 (unaudited))
|
942 | 942 | |||||||
Series B convertible preferred stock, $0.0001 par value
|
|||||||||
2,648,189 shares authorized; 2,648,189 shares issued and outstanding at
|
|||||||||
December 31, 2013 and March 31, 2014 (unaudited)
|
|||||||||
(liquidation preference of $4,722,037 at December 31, 2013 and March 31, 2014 (unaudited))
|
4,724 | 4,724 | |||||||
Series B-1 convertible preferred stock, $0.0001 par value
|
|||||||||
1,500,000 shares authorized; 1,493,811 shares issued and outstanding at
|
|||||||||
December 31, 2013 and March 31, 2014 (unaudited)
|
|||||||||
(liquidation preference of $3,499,999 at December 31, 2013 and March 31, 2014 (unaudited))
|
3,474 | 3,474 | |||||||
Series B-2 convertible preferred stock, $0.0001 par value
|
|||||||||
4,592,805 shares authorized; 4,592,805 shares issued and outstanding at
|
|||||||||
December 31, 2013 and March 31, 2014 (unaudited)
|
|||||||||
(liquidation preference of $15,238,468 at December 31, 2013 and March 31, 2014 (unaudited))
|
15,186 | 15,186 | |||||||
Series C convertible preferred stock, $0.0001 par value
|
|||||||||
2,327,987 shares authorized; 2,209,390 shares issued and outstanding at
|
|||||||||
December 31, 2013 and March 31, 2014 (unaudited)
|
|||||||||
(liquidation preference of $8,541,502 at December 31, 2013 and March 31, 2014 (unaudited))
|
8,464 | 8,464 | |||||||
Common stock, $0.0001 par value; 21,100,000 shares authorized;
|
|||||||||
6,129,600 and 6,196,800 shares issued and outstanding at December 31, 2013
|
1 | 1 | |||||||
and March 31, 2014 (unaudited)
|
|||||||||
Additional paid-in capital
|
1,260 | 1,389 | |||||||
Accumulated deficit
|
(21,058 | ) | (20,011 | ) | |||||
Total Stockholders' Equity
|
12,993 | 14,169 | |||||||
Total Liabilities and Stockholders' Equity
|
$ | 16,534 | $ | 17,287 | |||||
See accompanying independent auditor's report and notes to financial statements.
|
|||||||||
|
|||||||||
LiveRamp, Inc.
|
||||||||||||
Statements of Operations
|
||||||||||||
(In Thousands)
|
||||||||||||
Year Ended
December 31,
|
Three Months
Ended March 31,
|
|||||||||||
2013
|
2013
|
2014
|
||||||||||
(Unaudited)
|
||||||||||||
Revenues
|
$ | 22,418 | $ | 3,972 | $ | 7,289 | ||||||
Operating Expenses
|
||||||||||||
Cost of revenues
|
11,861 | 2,437 | 3,483 | |||||||||
Other operating expenses
|
10,961 | 2,472 | 2,906 | |||||||||
Gain on sale of assets
|
(234 | ) | - | (147 | ) | |||||||
Total Operating Expenses
|
22,588 | 4,909 | 6,242 | |||||||||
Income (Loss) from Operations
|
(170 | ) | (937 | ) | 1,047 | |||||||
Interest Expense
|
(556 | ) | - | - | ||||||||
Net Income (Loss)
|
$ | (726 | ) | $ | (937 | ) | $ | 1,047 | ||||
See accompanying independent auditor's report and notes to financial statements.
|
|
LiveRamp, Inc.
Statements of Stockholders' Equity
(In Thousands)
|
||||||||||||||||||||||||||||
Convertible Preferred Stock
|
|
|
|
||||||||||||||||||||||||||
Series A
|
Series B
|
Series B-1
|
Series B-2
|
Series C
|
Common Stock
|
Additional
Paid-in
Capital
|
Accumulated Deficit
|
Total
Stockholders'
Equity
|
|||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||
Balances, December 31, 2012
|
1,196
|
$
|
942
|
2,648
|
$
|
4,724
|
1,494
|
$
|
3,474
|
4,593
|
$
|
15,186
|
-
|
$
|
-
|
5,135
|
$
|
1
|
$
|
532
|
$
|
(20,332)
|
$
|
4,527
|
|||||
Issuance of common stock upon exercise
|
|||||||||||||||||||||||||||||
of stock options
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
935
|
-
|
283
|
-
|
283
|
||||||||||||||
Issuance of common stock upon exercise
|
|||||||||||||||||||||||||||||
of warrants
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
60
|
-
|
-
|
-
|
-
|
||||||||||||||
Stock-based compensation
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
445
|
-
|
445
|
||||||||||||||
Issuance of preferred stock, net of
|
|||||||||||||||||||||||||||||
issuance costs of $85
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,209
|
8,464
|
-
|
-
|
-
|
-
|
8,464
|
||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(726)
|
(726)
|
||||||||||||||
Balances, December 31, 2013
|
1,196
|
942
|
2,648
|
4,724
|
1,494
|
3,474
|
4,593
|
15,186
|
2,209
|
8,464
|
6,130
|
1
|
1,260
|
(21,058)
|
12,993
|
||||||||||||||
Issuance of common stock upon exercise
|
|||||||||||||||||||||||||||||
of stock options (unaudited)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
67
|
-
|
42
|
-
|
42
|
||||||||||||||
Stock-based compensation (unaudited)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
87
|
-
|
87
|
||||||||||||||
Net income (unaudited)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,047
|
1,047
|
||||||||||||||
Balances, March 31, 2014 (unaudited)
|
1,196
|
$
|
942
|
2,648
|
$
|
4,724
|
1,494
|
$
|
3,474
|
4,593
|
$
|
15,186
|
2,209
|
$
|
8,464
|
6,197
|
$
|
1
|
$
|
1,389
|
$
|
(20,011)
|
$
|
14,169
|
|||||
See accompanying independent auditor's report and notes to financial statements.
|
|
||||||||||||
Statements of Cash Flows
|
||||||||||||
(In Thousands)
|
||||||||||||
Year Ended
December 31,
|
Three Months
Ended March 31,
|
|||||||||||
2013
|
2013
|
2014
|
||||||||||
(Unaudited)
|
||||||||||||
Cash Flows from Operating Activities:
|
||||||||||||
Net income (loss)
|
$ | (726 | ) | $ | (937 | ) | $ | 1,047 | ||||
Adjustments to reconcile net income (loss) to net cash used in
|
||||||||||||
(provided by) operating activities:
|
||||||||||||
Depreciation and amortization
|
329 | 92 | 105 | |||||||||
Stock-based compensation
|
445 | 48 | 87 | |||||||||
Non-cash interest expense
|
549 | - | - | |||||||||
Changes in assets and liabilities:
|
||||||||||||
Accounts receivable, net
|
(3,027 | ) | (1,044 | ) | 823 | |||||||
Prepaid expenses and other current assets
|
(109 | ) | (309 | ) | (287 | ) | ||||||
Accounts payable
|
669 | 127 | (24 | ) | ||||||||
Accrued expenses and other current liabilities
|
964 | 145 | (399 | ) | ||||||||
Net Cash Provided by (Used in) Operating Activities
|
(906 | ) | (1,878 | ) | 1,352 | |||||||
Cash Flows from Investing Activities:
|
||||||||||||
Purchase of property and equipment
|
(378 | ) | (32 | ) | (636 | ) | ||||||
Net Cash Used in Investing Activities
|
(378 | ) | (32 | ) | (636 | ) | ||||||
Cash Flows from Financing Activities:
|
||||||||||||
Proceeds from issuance of convertible notes
|
2,125 | - | - | |||||||||
Proceeds from issuance of Series C convertible preferred stock, net
|
||||||||||||
of issuance costs of $85
|
5,790 | - | - | |||||||||
Proceeds from line of credit
|
3,000 | - | - | |||||||||
Repayment on line of credit
|
(3,000 | ) | - | - | ||||||||
Proceeds from issuance of common stock
|
283 | 74 | 42 | |||||||||
Net Cash Provided by Financing Activities
|
8,198 | 74 | 42 | |||||||||
Net Increase (Decrease) in Cash and Cash Equivalents
|
6,914 | (1,836 | ) | 758 | ||||||||
Cash and Cash Equivalents, Beginning of Period
|
2,914 | 2,914 | 9,828 | |||||||||
Cash and Cash Equivalents, End of Period
|
$ | 9,828 | $ | 1,078 | $ | 10,586 | ||||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||||||
Cash paid for taxes
|
$ | 2 | $ | 2 | $ | 1 | ||||||
Cash paid for interest
|
$ | 8 | $ | - | $ | - | ||||||
Conversion of convertible notes and accrued interest to Series C
|
||||||||||||
preferred stock
|
$ | 2,133 | $ | - | $ | - | ||||||
See accompanying independent auditor's report and notes to financial statements.
|
2.
|
Summary of Significant Accounting Policies and Basis of Presentation
|
3.
|
Property and Equipment, Net
|
(in thousands)
|
December 31,
2013
|
March 31,
2014
|
||||||
(Unaudited) | ||||||||
Computers and equipment
|
$ | 2,004 | $ | 2,641 | ||||
Computer software
|
88 | 88 | ||||||
Leasehold improvements
|
18 | 18 | ||||||
Office equipment
|
138 | 138 | ||||||
Total property and equipment
|
2,248 | 2,885 | ||||||
Less: Accumulated depreciation and amortization
|
(1,775 | ) | (1,881 | ) | ||||
Property and equipment, net
|
$ | 473 | $ | 1,004 |
4.
|
Accrued Expenses and Other Current Liabilities
|
(in thousands)
|
December 31,
2013
|
March 31,
2014
|
||||||
(Unaudited)
|
||||||||
Employee-related liabilities
|
$ | 924 | $ | 327 | ||||
Deferred revenue
|
434 | 615 | ||||||
Other accrued liabilities
|
91 | 107 | ||||||
Total liabilities
|
$ | 1,449 | $ | 1,049 |
5.
|
Convertible Preferred Stock
|
(in thousands)
|
Shares
Authorized
|
Shares Issued
and Outstanding
|
Liquidation
Preference
|
Gross
Proceeds
|
||||||||||||
Series A convertible preferred stock
|
1,258 | 1,196 | $ | 955 | $ | 955 | ||||||||||
Series B convertible preferred stock
|
2,648 | 2,648 | 4,772 | 4,772 | ||||||||||||
Series B-1 convertible preferred stock
|
1,500 | 1,494 | 3,500 | 3,500 | ||||||||||||
Series B-2 convertible preferred stock
|
4,593 | 4,593 | 15,238 | 15,238 | ||||||||||||
Series C convertible preferred stock
|
2,328 | 2,209 | 8,542 | 8,000 | ||||||||||||
Total
|
12,327 | 12,140 | $ | 33,007 | $ | 32,465 |
6.
|
Common Stock and Warrants
|
7.
|
Stock-Based Compensation
|
Shares
Underlying
Options
(000’s)
|
Weighted-
Average
Exercise Price
per Share
|
Weighted
Average
Remaining
Contractual Life
(in Years)
|
||||||||||
Outstanding - December 31, 2012
|
3,625 | $ | 0.54 | 7.25 | ||||||||
Options granted
|
1,823 | 0.56 | ||||||||||
Options exercised
|
(935 | ) | 0.30 | |||||||||
Options cancelled/forfeited/expired
|
(457 | ) | 0.64 | |||||||||
Outstanding - December 31, 2013
|
4,056 | 0.62 | 7.42 | |||||||||
Options granted (unaudited)
|
555 | 1.64 | ||||||||||
Options exercised (unaudited)
|
(67 | ) | 0.65 | |||||||||
Options cancelled/forfeited/expired (unaudited)
|
(299 | ) | 0.67 | |||||||||
Outstanding – March 31, 2014 (unaudited)
|
4,245 | 0.75 | 7.50 | |||||||||
Vested and expected to vest at
December 31, 2013
|
1,345 | 0.62 | 7.29 | |||||||||
Exercisable - December 31, 2013
|
1,345 | $ | 0.55 | 5.87 | ||||||||
Vested and expected to vest at
March 31, 2014 (unaudited)
|
1,485 | $ | 0.75 | 7.42 | ||||||||
Exercisable - March 31, 2014 (unaudited)
|
1,485 | $ | 0.56 | 6.20 |
Year Ended
December 31,
|
Three Months Ended
March 31,
|
|||||||||||
2013
|
2013
|
2014
|
||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||
Expected dividend yield (1)
|
0 | % | 0 | % | 0 | % | ||||||
Risk-free interest rates (2)
|
2.10 | % | 1.01 | % | 2.02 | % | ||||||
Expected volatility (3)
|
69 | % | 69 | % | 69 | % | ||||||
Expected life (in years) (4)
|
6.10 | 6.10 | 6.10 |
(1)
|
The Company has no history or expectation of paying cash dividends on its common stock.
|
(2)
|
The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the awards in effect at the time of grant.
|
(3)
|
The Company estimates the volatility of its common stock based on the share price volatility of similar publicity traded entities.
|
(4)
|
The expected life represents the period of time that options granted are expected to be outstanding and was estimated using the simplified method, which essentially equates to the weighted average of the vesting term and contractual life of the options.
|
8.
|
Income Taxes
|
(in thousands)
|
December 31,
2013
|
|||
Net operating loss (NOL) carryforwards
|
$ | 7,629 | ||
Accruals and reserves
|
49 | |||
Stock-based compensation
|
70 | |||
Property and equipment
|
(14 | ) | ||
Research and development tax credits
|
1,011 | |||
Total deferred taxes
|
8,745 | |||
Less valuation allowance
|
(8,745 | ) | ||
Net deferred tax assets
|
$ | - |
9.
|
Commitments and Contingencies
|
Year Ending December 31,
(in thousands)
|
Amount
|
|||
2014
|
$ | 268 | ||
2015
|
192 | |||
Total
|
$ | 460 |
10.
|
Gain on Sale of Assets
|
11.
|
Subsequent Events
|
Historical
|
|||||||||||||||||
Acxiom
|
LiveRamp
|
Pro Forma Adjustments
|
Combined
Pro Forma
|
||||||||||||||
ASSETS
|
|||||||||||||||||
Current assets:
|
|||||||||||||||||
Cash and cash equivalents
|
$ | 392,918 | $ | 10,586 | $ | (277,688 | ) |
(a)
|
$ | 125,816 | |||||||
Restricted cash
|
- | - | 31,000 |
(a)
|
31,000 | ||||||||||||
Trade accounts receivable, net
|
150,605 | 5,106 | - | 155,711 | |||||||||||||
Deferred income taxes
|
12,285 | - | 44 |
(c)
|
12,329 | ||||||||||||
Refundable income taxes
|
11,436 | - | - | 11,436 | |||||||||||||
Other current assets
|
51,644 | 514 | - | 52,158 | |||||||||||||
Assets from discontinued operations
|
1,140 | - | - | 1,140 | |||||||||||||
Total current assets
|
620,028 | 16,206 | (246,644 | ) | 389,590 | ||||||||||||
Property and equipment, net of accumulated depreciation and amortization
|
216,322 | 1,004 | - | 217,326 | |||||||||||||
Software, net of accumulated amortization
|
40,766 | - | - | 40,766 | |||||||||||||
Goodwill
|
358,671 | - | 222,857 |
(d)
|
581,528 | ||||||||||||
Purchased software licenses, net of accumulated amortization
|
19,079 | - | - | 19,079 | |||||||||||||
Other assets, net
|
22,607 | 77 | 54,300 |
(d)
|
76,984 | ||||||||||||
$ | 1,277,473 | $ | 17,287 | $ | 30,513 | $ | 1,325,273 | ||||||||||
LIABILITIES AND EQUITY
|
|||||||||||||||||
Current liabilities:
|
|||||||||||||||||
Current installments of long-term debt
|
$ | 31,368 | $ | - | $ | - | $ | 31,368 | |||||||||
Trade accounts payable
|
42,803 | 2,069 | - | 44,872 | |||||||||||||
Accrued expenses and other current liabilities
|
142,268 | 1,049 | 31,000 |
(a)
|
174,754 | ||||||||||||
437 |
(a)
|
||||||||||||||||
Liabilities from discontinued operations
|
1,681 | - | - | 1,681 | |||||||||||||
Total current liabilities
|
218,120 | 3,118 | 31,437 | 252,675 | |||||||||||||
Long-term debt
|
278,975 | - | - | 278,975 | |||||||||||||
Deferred income taxes
|
88,480 | - | 6,465 |
(c)
|
94,945 | ||||||||||||
Other liabilities
|
12,464 | - | - | 12,464 | |||||||||||||
Commitments and contingencies
|
|||||||||||||||||
Equity:
|
|||||||||||||||||
Common stock
|
12,644 | 1 | (1 | ) |
(b)
|
12,644 | |||||||||||
Preferred stock
|
- | 32,790 | (32,790 | ) |
(b)
|
- | |||||||||||
Additional paid-in capital
|
988,167 | 1,389 | 5,391 |
(a)(b)
|
994,947 | ||||||||||||
Retained earnings
|
596,592 | (20,011 | ) | 20,011 |
(b)
|
596,592 | |||||||||||
Accumulated other comprehensive income
|
13,501 | - | - | 13,501 | |||||||||||||
Treasury stock, at cost
|
(931,470 | ) | - | - | (931,470 | ) | |||||||||||
Total equity
|
679,434 | 14,169 | (7,389 | ) | 686,214 | ||||||||||||
$ | 1,277,473 | $ | 17,287 | $ | 30,513 | $ | 1,325,273 | ||||||||||
See accompanying notes to pro forma condensed combined financial information.
|
Historical
|
|||||||||||||||||
Acxiom
|
LiveRamp
|
Pro Forma Adjustments
|
Combined
Pro Forma
|
||||||||||||||
Revenues
|
$ | 242,215 | $ | 7,289 | $ | (1,564 | ) |
(e)
|
$ | 247,940 | |||||||
Operating costs and expenses:
|
|||||||||||||||||
Cost of revenue
|
192,303 | 3,483 | (1,564 | ) |
(e)
|
194,222 | |||||||||||
Selling, general and administrative
|
46,938 | 2,906 | 4,927 |
(f)
|
54,771 | ||||||||||||
Purchased intangibles amortization
|
- | - | 2,629 |
(d)
|
2,629 | ||||||||||||
Gains, losses and other items, net
|
7,452 | (147 | ) | - | 7,305 | ||||||||||||
Total operating costs and expenses
|
246,693 | 6,242 | 5,992 | 258,927 | |||||||||||||
Income (loss) from operations
|
(4,478 | ) | 1,047 | (7,556 | ) | (10,987 | ) | ||||||||||
Other expense:
|
|||||||||||||||||
Interest expense
|
(2,571 | ) | - | - | (2,571 | ) | |||||||||||
Other, net
|
(413 | ) | - | - | (413 | ) | |||||||||||
Total other expense
|
(2,984 | ) | - | - | (2,984 | ) | |||||||||||
Earnings (loss) from continuing operations before income taxes
|
(7,462 | ) | 1,047 | (7,556 | ) | (13,971 | ) | ||||||||||
Income taxes
|
(1,390 | ) | - | (2,324 | ) |
(g)
|
(3,714 | ) | |||||||||
Net earnings (loss) from continuing operations
|
$ | (6,072 | ) | $ | 1,047 | $ | (5,232 | ) | $ | (10,257 | ) | ||||||
Loss from continuing operations per share:
|
|||||||||||||||||
Basic loss from continuing operations per share
|
$ | (0.08 | ) | $ | (0.13 | ) | |||||||||||
Diluted loss per continuing operations per share
|
$ | (0.08 | ) | $ | (0.13 | ) | |||||||||||
Weighted average shares outstanding:
|
|||||||||||||||||
Basic
|
76,833 | 76,833 | |||||||||||||||
Diluted
|
76,833 | 76,833 | |||||||||||||||
See accompanying notes to pro forma condensed combined financial information.
|
Historical
|
|||||||||||||||||
Acxiom
|
LiveRamp
|
Pro Forma Adjustments
|
Combined
Pro Forma
|
||||||||||||||
Revenues
|
$ | 1,062,278 | $ | 22,418 | $ | (4,780 | ) |
(e)
|
$ | 1,079,916 | |||||||
Operating costs and expenses:
|
|||||||||||||||||
Cost of revenue
|
795,562 | 11,861 | (4,780 | ) |
(e)
|
802,643 | |||||||||||
Selling, general and administrative
|
169,376 | 10,961 | 20,186 |
(f)
|
200,523 | ||||||||||||
Purchased intangibles amortization
|
- | - | 10,517 |
(d)
|
10,517 | ||||||||||||
Impairment of goodwill and other assets
|
24,953 | - | - | 24,953 | |||||||||||||
Gains, losses and other items, net
|
21,914 | (234 | ) | - | 21,680 | ||||||||||||
Total operating costs and expenses
|
1,011,805 | 22,588 | 25,923 | 1,060,316 | |||||||||||||
Income (loss) from operations
|
50,473 | (170 | ) | (30,703 | ) | 19,600 | |||||||||||
Other expense:
|
|||||||||||||||||
Interest expense
|
(11,671 | ) | (541 | ) | - | (12,212 | ) | ||||||||||
Other, net
|
1,817 | (15 | ) | - | 1,802 | ||||||||||||
Total other expense
|
(9,854 | ) | (556 | ) | - | (10,410 | ) | ||||||||||
Earnings (loss) from continuing operations before income taxes
|
40,619 | (726 | ) | (30,703 | ) | 9,190 | |||||||||||
Income taxes
|
29,627 | - | (9,179 | ) |
(g)
|
20,448 | |||||||||||
Net earnings (loss) from continuing operations
|
10,992 | (726 | ) | (21,524 | ) | (11,258 | ) | ||||||||||
Less: Net loss attributable to noncontrolling interest
|
(60 | ) | - | - | (60 | ) | |||||||||||
Net earnings (loss) from continuing operations attributable to Acxiom
|
$ | 11,052 | $ | (726 | ) | $ | (21,524 | ) | $ | (11,198 | ) | ||||||
Earnings (loss) from continuing operations per share:
|
|||||||||||||||||
Basic earnings (loss) from continuing operations per share
|
$ | 0.15 | $ | (0.15 | ) | ||||||||||||
Diluted earnings (loss) from continuing operations per share
|
$ | 0.14 | $ | (0.15 | ) | ||||||||||||
Weighted average shares outstanding
|
|||||||||||||||||
Basic
|
74,690 | 74,690 | |||||||||||||||
Diluted
|
76,954 | 74,690 | |||||||||||||||
See accompanying notes to pro forma condensed combined financial information.
|
Purchase Price Allocation
|
||||
Cash
|
$ | 12,016 | ||
Restricted cash
|
31,000 | |||
Accounts receivable, net
|
4,977 | |||
Other current assets
|
582 | |||
Deferred income tax asset
|
44 | |||
Property, plant and equipment, net
|
937 | |||
Goodwill
|
222,857 | |||
Intangible assets
|
54,300 | |||
Other noncurrent assets
|
16 | |||
Accounts payable
|
(2,354 | ) | ||
Escrow payable
|
(31,000 | ) | ||
Current liabilities
|
(2,244 | ) | ||
Deferred income tax liability
|
(6,465 | ) | ||
Total estimated purchase price
|
$ | 284,666 |
(a)
|
A $277.7 million adjustment to reflect cash paid on the date of acquisition, and a $7.0 million adjustment to reflect the fair value of assumed unvested stock options included in the purchase price. An adjustment of $31.0 million to reflect a cash component of the purchase price held in escrow by Acxiom. A $0.4 million adjustment to accrued expenses to reflect an estimate of sales tax liability.
|
(b)
|
The elimination of all of LiveRamp’s equity.
|
(c)
|
Adjustments of $6.4 million, net, to principally reflect deferred tax assets related to LiveRamp’s net operating loss carry forwards and deductible stock-based compensation of $12.6 million and deferred tax liabilities related to amortizable intangible assets recorded as part of purchase accounting of $19.0 million.
|
(d)
|
A $54.3 million adjustment to reflect identifiable intangible assets associated with adjustments to the fair value of LiveRamp’s intangible assets and a $222.9 million adjustment to reflect the excess of acquisition cost over the estimated fair value of tangible and intangible net assets acquired as part of purchase accounting. Identifiable intangible assets include developed technology, customer relationship, and trade name. Intangible asset amortization will be amortized on a straight-line basis over the estimated useful lives of 2 to 6 years. As a result of this adjustment, the unaudited pro forma condensed combined statements of operations reflect an increase in amortization expense of $2.6 million for the three months ended June 30, 2014 and $10.5 million for the year ended March 31, 2014, respectively.
|
(e)
|
Adjustments of $1.6 million for the three months ended June 30, 2014 and $4.8 million for the year ended March 31, 2014 to eliminate revenue from sales of LiveRamp products to Acxiom.
|
(f)
|
Adjustments of $4.9 million for the three months ended June 30, 2014 and $20.2 million for the year ended March 31, 2014 to record compensation expense related to converted stock options and restricted stock units granted to employees of LiveRamp. These adjustments are shown as if the acquisition had occurred at the beginning of the periods presented.
|
(g)
|
Adjustments of $2.3 million for the three months ended June 30, 2014 and $9.2 million for the year ended March 31, 2014 to record an income tax benefit associated with the pro forma adjustments. This adjustment is based on Acxiom’s statutory rates in effect for the periods presented.
|