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): August 5, 2015
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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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P.O. Box 8190, 601 E. Third Street,
Little Rock, Arkansas
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72203-8190
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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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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 August 5, 2015
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Title:
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Chief Ethics and Legal Officer & Executive Vice President
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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 August 5, 2015
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·
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Revenue: Total revenue was $197 million, up approximately 5% compared to the first quarter of last year.
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·
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Operating Income (Loss): GAAP operating loss from continuing operations was $3 million compared to a loss of $13 million in the prior year. Non-GAAP operating income from continuing operations improved 71% to approximately $15 million compared to $9 million a year ago.
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·
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Earnings (Loss) per Share: GAAP loss per share from continuing operations was $0.07 compared to a net loss of $0.14 in the prior year. Non-GAAP diluted earnings per share from continuing operations were $0.09, up 80% from $0.05 a year ago.
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·
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Operating Cash Flow: Operating cash flow from continuing operations improved to $12 million compared to negative $15 million a year ago.
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·
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Free Cash Flow to Equity: Free cash flow to equity was negative $12 million compared to negative $43 million in the prior year.
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·
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Revenue was $176 million, down 3% compared to the first quarter of last year primarily due to declines in International. US revenue of $159 million was roughly flat year-over-year.
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·
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Non-GAAP gross margin decreased from 43% to 41%.
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·
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Non-GAAP operating income was $40 million compared to $47 million in the prior year. The decline was primarily driven by lower revenue.
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·
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Revenue was $21 million, up approximately 376% compared to the first quarter of last year, driven by the addition of LiveRamp™ and continued onboarding momentum.
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·
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Non-GAAP gross margin improved from negative 83% to positive 60%.
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·
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Non-GAAP operating loss improved by approximately $14 million to roughly breakeven driven by growth in subscriptions and royalties.
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·
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LiveRamp added 30 new customers during the quarter and added 10 new partner integrations. Marketers can now onboard and distribute their data to a growing network of over 200 marketing platforms and data providers.
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Acxiom relaunched its email and cross-channel marketing business, Acxiom Impact™, an advanced marketing offering specifically designed to meet the unique needs of sophisticated enterprise marketers.
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·
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The Company appointed Jeremy Allen as President of Marketing Services. Allen’s appointment completes Acxiom's new divisional structure, which includes Travis May as President of Connectivity and Rick Erwin as President of Audience Solutions. Acxiom's CFO, Warren Jenson, is heading the Company's international operations.
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·
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Acxiom repurchased approximately 832,000 shares for $15 million during the quarter. Since inception of the share repurchase program in August 2011, the Company has repurchased 13.7 million shares for $217 million.
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·
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On July 31, 2015, Acxiom completed the sale of its IT Infrastructure Management business to Charlesbank Capital Partners and co-investor M/C Partners.
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·
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Revenue from continuing operations in the range of $815 million to $840 million.
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·
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Earnings per diluted share from continuing operations in the range of $0.45 to $0.50.
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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 loss per share)
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||||||||||||||||
For the Three Months Ended
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||||||||||||||||
June 30,
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||||||||||||||||
$ | % | |||||||||||||||
2015
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2014
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Variance
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Variance
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|||||||||||||
Revenues
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196,895 | 186,683 | 10,212 | 5.5 | % | |||||||||||
Cost of revenue
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117,709 | 113,090 | 4,619 | 4.1 | % | |||||||||||
Gross profit
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79,186 | 73,593 | 5,593 | 7.6 | % | |||||||||||
% Gross margin
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40.2 | % | 39.4 | % | ||||||||||||
Operating expenses:
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||||||||||||||||
Research and development
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20,011 | 16,350 | 3,661 | 22.4 | % | |||||||||||
Sales and marketing
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29,494 | 26,500 | 2,994 | 11.3 | % | |||||||||||
General and administrative
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31,743 | 36,701 | (4,958 | ) | (13.5 | %) | ||||||||||
Gains, losses and other items, net
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807 | 7,128 | (6,321 | ) | (88.7 | %) | ||||||||||
Total operating expenses
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82,055 | 86,679 | (4,624 | ) | (5.3 | %) | ||||||||||
Loss from operations
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(2,869 | ) | (13,086 | ) | 10,217 | 78.1 | % | |||||||||
% Margin
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-1.5 | % | -7.0 | % | ||||||||||||
Other income (expense):
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||||||||||||||||
Interest expense
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(1,885 | ) | (1,948 | ) | 63 | 3.2 | % | |||||||||
Other, net
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304 | (106 | ) | 410 | 386.8 | % | ||||||||||
Total other expense
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(1,581 | ) | (2,054 | ) | 473 | 23.0 | % | |||||||||
Loss from continuing operations before income taxes
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(4,450 | ) | (15,140 | ) | 10,690 | 70.6 | % | |||||||||
Income taxes
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732 | (4,399 | ) | 5,131 | 116.6 | % | ||||||||||
Net loss from continuing operations
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(5,182 | ) | (10,741 | ) | 5,559 | 51.8 | % | |||||||||
Earnings from discontinued operations, net of tax
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4,143 | 3,137 | 1,006 | 32.1 | % | |||||||||||
Net loss
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(1,039 | ) | (7,604 | ) | 6,565 | 86.3 | % | |||||||||
Basic earnings (loss) per share:
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||||||||||||||||
Net loss from continuing operations
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(0.07 | ) | (0.14 | ) | 0.07 | 52.4 | % | |||||||||
Net earnings from discontinued operations
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0.05 | 0.04 | 0.01 | 30.2 | % | |||||||||||
Net loss
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(0.01 | ) | (0.10 | ) | 0.09 | 86.5 | % | |||||||||
Diluted earnings (loss) per share:
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||||||||||||||||
Net loss from continuing operations
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(0.07 | ) | (0.14 | ) | 0.07 | 52.4 | % | |||||||||
Net earnings from discontinued operations
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0.05 | 0.04 | 0.01 | 32.8 | % | |||||||||||
Net loss
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(0.01 | ) | (0.10 | ) | 0.09 | 86.8 | % | |||||||||
Basic shares
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77,918 | 76,833 | ||||||||||||||
Diluted Shares
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77,918 | 76,833 | ||||||||||||||
FDWA shares
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79,352 | 78,341 |
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 (loss) per share)
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For the Three Months Ended
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June 30,
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2015
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2014
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Loss from continuing operations before income taxes
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(4,450 | ) | (15,140 | ) | ||||||||||||
Income taxes
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732 | (4,399 | ) | |||||||||||||
Net loss from continuing operations
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(5,182 | ) | (10,741 | ) | ||||||||||||
Earnings from discontinued operations, net of tax
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4,143 | 3,137 | ||||||||||||||
Net loss
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(1,039 | ) | (7,604 | ) | ||||||||||||
Loss per share:
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||||||||||||||||
Basic
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(0.01 | ) | (0.10 | ) | ||||||||||||
Diluted
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(0.01 | ) | (0.10 | ) | ||||||||||||
Excluded items:
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Purchased intangible asset amortization (cost of revenue)
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3,754 | 63 | ||||||||||||||
Non-cash stock compensation (cost of revenue and operating expenses) |
8,123
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3,925 | ||||||||||||||
Restructuring charges and other adjustments (gains, losses, and other)
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807 | 7,128 | ||||||||||||||
Separation and transformation costs (general and administrative)
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3,414 | 10,538 | ||||||||||||||
Accelerated amortization (cost of revenue)
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1,442 | - | ||||||||||||||
Total excluded items, continuing operations
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17,540 | 21,654 | ||||||||||||||
Earnings from continuing operations before income taxes
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||||||||||||||||
and excluding items
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13,090 | 6,514 | ||||||||||||||
Income taxes
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5,632 | 2,517 | ||||||||||||||
Non-GAAP net earnings
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7,458 | 3,997 | ||||||||||||||
Non-GAAP earnings per share:
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||||||||||||||||
Basic
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0.10 | 0.05 | ||||||||||||||
Diluted
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0.09 | 0.05 | ||||||||||||||
Basic weighted average shares
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77,918 | 76,833 | ||||||||||||||
Diluted weighted average shares
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79,352 | 78,341 | ||||||||||||||
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 (loss) per share)
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For the Three Months Ended
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June 30,
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June 30,
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2015
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2014
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Basic loss per share from continuing operations:
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Numerator - net loss
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(5,182 | ) | (10,741 | ) | ||||
Denominator - weighted-average shares outstanding
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77,918 | 76,833 | ||||||
Basic loss per share
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(0.07 | ) | (0.14 | ) | ||||
Diluted loss per share from continuing operations:
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||||||||
Numerator - net loss
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(5,182 | ) | (10,741 | ) | ||||
Denominator - weighted-average shares outstanding
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77,918 | 76,833 | ||||||
Diluted loss per share
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(0.07 | ) | (0.14 | ) | ||||
Basic earnings per share from discontinued operations:
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||||||||
Numerator - net earnings
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4,143 | 3,137 | ||||||
Denominator - weighted-average shares outstanding
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77,918 | 76,833 | ||||||
Basic earnings per share
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0.05 | 0.04 | ||||||
Diluted earnings per share from discontinued operations:
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Numerator - net earnings
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4,143 | 3,137 | ||||||
Denominator - weighted-average shares outstanding
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77,918 | 76,833 | ||||||
Dilutive effect of common stock options, warrants and restricted stock
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- | - | ||||||
77,918 | 76,833 | |||||||
Diluted earnings per share
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0.05 | 0.04 | ||||||
Diluted loss per share:
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||||||||
Numerator - net loss
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(1,039 | ) | (7,604 | ) | ||||
Denominator - weighted-average shares outstanding
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77,918 | 76,833 | ||||||
Dilutive effect of common stock options, warrants, and restricted stock
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- | - | ||||||
77,918 | 76,833 | |||||||
Diluted loss per share
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(0.01 | ) | (0.10 | ) | ||||
ACXIOM CORPORATION AND SUBSIDIARIES
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RESULTS BY SEGMENT-GAAP
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(Unaudited)
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(Dollars in thousands)
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For the Three Months Ended
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June 30, 2015
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June 30, 2014
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Marketing Services
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Marketing Services
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|||||||||||||||||||||||||||||||
& Audience Solutions
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Connectivity
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Corporate
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Total
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& Audience Solutions
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Connectivity
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Corporate
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Total
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|||||||||||||||||||||||||
Revenues
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176,276 | 20,619 | - | 196,895 | 182,349 | 4,334 | - | 186,683 | ||||||||||||||||||||||||
Gross profit (loss)
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72,019 | 8,609 | (1,442 | ) | 79,186 | 77,224 | (3,631 | ) | - | 73,593 | ||||||||||||||||||||||
% Gross margin
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40.9 | % | 41.8 | % | n/a | 40.2 | % | 42.3 | % | -83.8 | % | n/a | 39.4 | % | ||||||||||||||||||
Operating income (loss)
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38,287 | (8,025 | ) | (33,131 | ) | (2,869 | ) | 46,221 | (14,261 | ) | (45,046 | ) | (13,086 | ) | ||||||||||||||||||
% margin
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21.7 | % | -38.9 | % | n/a | -1.5 | % | 25.3 | % | -329.0 | % | n/a | -7.0 | % | ||||||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
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RESULTS BY SEGMENT-NON-GAAP
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||||||||||||||||||||||||||||||||
(Unaudited)
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||||||||||||||||||||||||||||||||
(Dollars in thousands)
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||||||||||||||||||||||||||||||||
For the Three Months Ended
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||||||||||||||||||||||||||||||||
June 30, 2015
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June 30, 2014
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|||||||||||||||||||||||||||||||
Marketing Services
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Marketing Services
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|||||||||||||||||||||||||||||||
& Audience Solutions
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Connectivity
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Corporate
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Total
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& Audience Solutions
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Connectivity
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Corporate
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Total
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Revenues
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176,276 | 20,619 | - | 196,895 | 182,349 | 4,334 | - | 186,683 | ||||||||||||||||||||||||
Gross profit (loss)
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72,473 | 12,338 | - | 84,811 | 77,559 | (3,599 | ) | - | 73,960 | |||||||||||||||||||||||
% Gross margin
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41.1 | % | 59.8 | % | n/a | 43.1 | % | 42.5 | % | -83.0 | % | n/a | 39.6 | % | ||||||||||||||||||
Operating income (loss)
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40,253 | (173 | ) | (25,409 | ) | 14,671 | 47,270 | (13,852 | ) | (24,850 | ) | 8,568 | ||||||||||||||||||||
% margin
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22.8 | % | -0.8 | % | n/a | 7.5 | % | 25.9 | % | -319.6 | % | n/a | 4.6 | % | ||||||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
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RECONCILIATION OF GAAP TO NON-GAAP SEGMENT RESULTS
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||||||||||||||||||||||||||||||||
(Unaudited)
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(Dollars in thousands)
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||||||||||||||||||||||||||||||||
For the Three Months Ended
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June 30, 2015
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June 30, 2014
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|||||||||||||||||||||||||||||||
Marketing Services
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Marketing Services
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|||||||||||||||||||||||||||||||
& Audience Solutions
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Connectivity
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Corporate
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Total
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& Audience Solutions
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Connectivity
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Corporate
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Total
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|||||||||||||||||||||||||
Gross profit (loss)
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72,019 | 8,609 | (1,442 | ) | 79,186 | 77,224 | (3,631 | ) | - | 73,593 | ||||||||||||||||||||||
Purchased intangible asset amortization
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25 | 3,729 | - | 3,754 | 31 | 32 | - | 63 | ||||||||||||||||||||||||
Non-cash stock compensation
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429 | - | - | 429 | 304 | - | - | 304 | ||||||||||||||||||||||||
Accelerated amortization
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- | - | 1,442 | 1,442 | - | - | - | - | ||||||||||||||||||||||||
Gross profit (loss) before excluded items
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72,473 | 12,338 | - | 84,811 | 77,559 | (3,599 | ) | - | 73,960 | |||||||||||||||||||||||
Operating income (loss)
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38,287 | (8,025 | ) | (33,131 | ) | (2,869 | ) | 46,221 | (14,261 | ) | (45,046 | ) | (13,086 | ) | ||||||||||||||||||
Purchased intangible asset amortization
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25 | 3,729 | - | 3,754 | 31 | 32 | - | 63 | ||||||||||||||||||||||||
Non-cash stock compensation
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1,914 | 4,123 | 2,086 | 8,123 | 1,007 | 377 | 2,541 | 3,925 | ||||||||||||||||||||||||
Restructuring charges and other adjustments
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27 | - | 780 | 807 | 11 | - | 7,117 | 7,128 | ||||||||||||||||||||||||
Separation and transformation costs
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- | - | 3,414 | 3,414 | - | - | 10,538 | 10,538 | ||||||||||||||||||||||||
Accelerated amortization
|
- | - | 1,442 | 1,442 | - | - | - | - | ||||||||||||||||||||||||
Operating income (loss) before excluded items
|
40,253 | (173 | ) | (25,409 | ) | 14,671 | 47,270 | (13,852 | ) | (24,850 | ) | 8,568 | ||||||||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
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||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
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||||||||||||||||
(Unaudited)
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||||||||||||||||
(Dollars in thousands)
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||||||||||||||||
June 30,
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March 31,
|
$ | % | |||||||||||||
2015
|
2015
|
Variance
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Variance
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|||||||||||||
Assets
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||||||||||||||||
Current assets:
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||||||||||||||||
Cash and cash equivalents
|
123,192 | 141,010 | (17,818 | ) | (12.6 | %) | ||||||||||
Trade accounts receivable, net
|
135,626 | 126,896 | 8,730 | 6.9 | % | |||||||||||
Deferred income taxes
|
23,111 | 25,610 | (2,499 | ) | (9.8 | %) | ||||||||||
Refundable income taxes
|
21 | 5,239 | (5,218 | ) | (99.6 | %) | ||||||||||
Restricted cash held in escrow
|
31,000 | 31,000 | 0 | 0.0 | % | |||||||||||
Other current assets
|
37,187 | 34,975 | 2,212 | 6.3 | % | |||||||||||
Assets of discontinued operations
|
163,768 | 172,284 | (8,516 | ) | (4.9 | %) | ||||||||||
Total current assets
|
513,905 | 537,014 | (23,109 | ) | (4.3 | %) | ||||||||||
Property and equipment
|
505,736 | 505,721 | 15 | 0.0 | % | |||||||||||
Less - accumulated depreciation and amortization
|
325,995 | 329,467 | (3,472 | ) | (1.1 | %) | ||||||||||
Property and equipment, net
|
179,741 | 176,254 | 3,487 | 2.0 | % | |||||||||||
Software, net of accumulated amortization
|
63,242 | 68,962 | (5,720 | ) | (8.3 | %) | ||||||||||
Goodwill
|
497,456 | 497,362 | 94 | 0.0 | % | |||||||||||
Purchased software licenses, net of accumulated amortization
|
9,492 | 9,551 | (59 | ) | (0.6 | %) | ||||||||||
Other assets, net
|
31,195 | 33,281 | (2,086 | ) | (6.3 | %) | ||||||||||
1,295,031 | 1,322,424 | (27,393 | ) | (2.1 | %) | |||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||
Current liabilities:
|
||||||||||||||||
Current installments of long-term debt
|
87,186 | 32,232 | 54,954 | 170.5 | % | |||||||||||
Trade accounts payable
|
39,606 | 30,094 | 9,512 | 31.6 | % | |||||||||||
Accrued payroll and related expenses
|
26,013 | 36,659 | (10,646 | ) | (29.0 | %) | ||||||||||
Other accrued expenses
|
55,025 | 62,754 | (7,729 | ) | (12.3 | %) | ||||||||||
Acquisition escrow payable
|
31,000 | 31,000 | 0 | 0.0 | % | |||||||||||
Deferred revenue
|
33,554 | 33,620 | (66 | ) | (0.2 | %) | ||||||||||
Income taxes
|
- | - | 0 | - | ||||||||||||
Liabilities of discontinued operations
|
50,764 | 57,433 | (6,669 | ) | (11.6 | %) | ||||||||||
Total current liabilities
|
323,148 | 283,792 | 39,356 | 13.9 | % | |||||||||||
Long-term debt
|
184,802 | 247,855 | (63,053 | ) | (25.4 | %) | ||||||||||
Deferred income taxes
|
76,654 | 80,675 | (4,021 | ) | (5.0 | %) | ||||||||||
Other liabilities
|
12,125 | 6,845 | 5,280 | 77.1 | % | |||||||||||
Stockholders' equity:
|
||||||||||||||||
Common stock
|
12,847 | 12,794 | 53 | 0.4 | % | |||||||||||
Additional paid-in capital
|
1,045,897 | 1,034,526 | 11,371 | 1.1 | % | |||||||||||
Retained earnings
|
590,759 | 591,798 | (1,039 | ) | (0.2 | %) | ||||||||||
Accumulated other comprehensive income
|
10,142 | 9,413 | 729 | 7.7 | % | |||||||||||
Treasury stock, at cost
|
(961,343 | ) | (945,274 | ) | (16,069 | ) | (1.7 | %) | ||||||||
Total stockholders' equity
|
698,302 | 703,257 | (4,955 | ) | (0.7 | %) | ||||||||||
1,295,031 | 1,322,424 | (27,393 | ) | (2.1 | %) | |||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
(Dollars in thousands)
|
||||||||
For the Three Months Ended
|
||||||||
June 30,
|
||||||||
2015
|
2014
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
(1,039 | ) | (7,604 | ) | ||||
Earnings from discontinued operations, net of tax
|
(4,143 | ) | (3,137 | ) | ||||
Non-cash operating activities:
|
||||||||
Depreciation and amortization
|
21,775 | 15,920 | ||||||
Loss (gain) on disposal or impairment of assets
|
241 | (254 | ) | |||||
Deferred income taxes
|
(1,522 | ) | (1,843 | ) | ||||
Non-cash stock compensation expense
|
8,123 | 3,925 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(8,037 | ) | 11,399 | |||||
Other assets
|
809 | 3,590 | ||||||
Deferred costs
|
(425 | ) | (211 | ) | ||||
Accounts payable and other liabilities
|
(3,530 | ) | (29,057 | ) | ||||
Deferred revenue
|
(255 | ) | (8,184 | ) | ||||
Net cash provided by (used in) operating activities
|
11,997 | (15,456 | ) | |||||
Cash flows from investing activities:
|
||||||||
Capitalized software
|
(2,797 | ) | (4,969 | ) | ||||
Capital expenditures
|
(12,876 | ) | (16,778 | ) | ||||
Data acquisition costs
|
(430 | ) | (635 | ) | ||||
Net cash used in investing activities
|
(16,103 | ) | (22,382 | ) | ||||
Cash flows from financing activities:
|
||||||||
Payments of debt
|
(8,099 | ) | (4,917 | ) | ||||
Sale of common stock, net of stock acquired for withholding taxes
|
2,069 | (674 | ) | |||||
Income tax impact of stock options, warrants and restricted stock
|
(77 | ) | - | |||||
Acquisition of treasury stock
|
(14,951 | ) | - | |||||
Net cash used in financing activities
|
(21,058 | ) | (5,591 | ) | ||||
Cash flows from discontinued operations:
|
||||||||
From operating activities
|
11,653 | 17,310 | ||||||
From investing activities
|
(4,484 | ) | 704 | |||||
From financing activities
|
(153 | ) | (585 | ) | ||||
Net cash provided by discontinued operations
|
7,016 | 17,429 | ||||||
Effect of exchange rate changes on cash
|
330 | 332 | ||||||
Net change in cash and cash equivalents
|
(17,818 | ) | (25,668 | ) | ||||
Cash and cash equivalents at beginning of period
|
141,010 | 418,586 | ||||||
Cash and cash equivalents at end of period
|
123,192 | 392,918 | ||||||
Supplemental cash flow information:
|
||||||||
Cash paid (received) during the period for:
|
||||||||
Interest
|
2,185 | 2,875 | ||||||
Income taxes
|
(1,044 | ) | 297 | |||||
Payments on capital leases and installment payment arrangements
|
216 | 1,235 | ||||||
Other debt payments, excluding line of credit
|
8,036 | 4,267 | ||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
|
||||||||||||||||||||||||
AND RECONCILIATION TO OPERATING CASH FLOW
|
||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
06/30/14
|
09/30/14
|
12/31/14
|
03/31/15
|
FY2015
|
06/30/15
|
|||||||||||||||||||
Net cash provided by operating activities - continuing operations
|
(15,456 | ) | 14,325 | 32,890 | 29,372 | 61,131 | 11,997 | |||||||||||||||||
Less:
|
||||||||||||||||||||||||
Payments for investments
|
- | - | - | - | - | - | ||||||||||||||||||
Capitalized software
|
(4,969 | ) | (5,608 | ) | (4,408 | ) | (3,602 | ) | (18,587 | ) | (2,797 | ) | ||||||||||||
Capital expenditures
|
(16,778 | ) | (15,362 | ) | (10,212 | ) | (14,600 | ) | (56,952 | ) | (12,876 | ) | ||||||||||||
Data acquisition costs
|
(635 | ) | (468 | ) | (394 | ) | (374 | ) | (1,871 | ) | (430 | ) | ||||||||||||
Payments on capital leases and installment payment arrangements
|
(650 | ) | (567 | ) | (471 | ) | (315 | ) | (2,003 | ) | (63 | ) | ||||||||||||
Other required debt payments
|
(4,267 | ) | (4,272 | ) | (8,027 | ) | (8,032 | ) | (24,598 | ) | (8,036 | ) | ||||||||||||
Total
|
(42,755 | ) | (11,952 | ) | 9,378 | 2,449 | (42,880 | ) | (12,205 | ) | ||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS-GAAP
|
||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except earnings per share)
|
||||||||||||||||||||||||||||||||||||
Q1 FY16 to Q1 FY15
|
||||||||||||||||||||||||||||||||||||
FY2014
|
06/30/14
|
09/30/14
|
12/31/14
|
03/31/15
|
FY2015
|
06/30/15
|
%
|
$ | ||||||||||||||||||||||||||||
Revenues
|
805,153 | 186,683 | 204,248 | 208,246 | 205,734 | 804,911 | 196,895 | 5.5 | % | 10,212 | ||||||||||||||||||||||||||
Cost of revenue
|
472,492 | 113,090 | 122,088 | 122,567 | 123,055 | 480,800 | 117,709 | 4.1 | % | 4,619 | ||||||||||||||||||||||||||
Gross profit
|
332,661 | 73,593 | 82,160 | 85,679 | 82,679 | 324,111 | 79,186 | 7.6 | % | 5,593 | ||||||||||||||||||||||||||
% Gross margin
|
41.3 | % | 39.4 | % | 40.2 | % | 41.1 | % | 40.2 | % | 40.3 | % | 40.2 | % | ||||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||||||||||||||
Research and development
|
65,269 | 16,350 | 20,555 | 19,696 | 19,737 | 76,338 | 20,011 | 22.4 | % | 3,661 | ||||||||||||||||||||||||||
Sales and marketing
|
115,077 | 26,500 | 28,842 | 30,997 | 32,319 | 118,658 | 29,494 | 11.3 | % | 2,994 | ||||||||||||||||||||||||||
General and administrative
|
108,637 | 36,701 | 38,373 | 33,895 | 30,230 | 139,199 | 31,743 | -13.5 | % | (4,958 | ) | |||||||||||||||||||||||||
Gains, losses and other items, net
|
42,121 | 7,128 | 833 | 3,381 | 11,258 | 22,600 | 807 | -88.7 | % | (6,321 | ) | |||||||||||||||||||||||||
Total operating expenses
|
331,104 | 86,679 | 88,603 | 87,969 | 93,544 | 356,795 | 82,055 | -5.3 | % | (4,624 | ) | |||||||||||||||||||||||||
Income (loss) from operations
|
1,557 | (13,086 | ) | (6,443 | ) | (2,290 | ) | (10,865 | ) | (32,684 | ) | (2,869 | ) | 78.1 | % | 10,217 | ||||||||||||||||||||
% Margin
|
0.2 | % | -7.0 | % | -3.2 | % | -1.1 | % | -5.3 | % | -4.1 | % | -1.5 | % | ||||||||||||||||||||||
Other income (expense)
|
||||||||||||||||||||||||||||||||||||
Interest expense
|
(8,671 | ) | (1,948 | ) | (1,821 | ) | (2,005 | ) | (1,898 | ) | (7,672 | ) | (1,885 | ) | 3.2 | % | 63 | |||||||||||||||||||
Other, net
|
1,814 | (106 | ) | (163 | ) | 35 | (757 | ) | (991 | ) | 304 | 386.8 | % | 410 | ||||||||||||||||||||||
Total other expense
|
(6,857 | ) | (2,054 | ) | (1,984 | ) | (1,970 | ) | (2,655 | ) | (8,663 | ) | (1,581 | ) | 23.0 | % | 473 | |||||||||||||||||||
Loss from continuing operations before income taxes
|
(5,300 | ) | (15,140 | ) | (8,427 | ) | (4,260 | ) | (13,520 | ) | (41,347 | ) | (4,450 | ) | 70.6 | % | 10,690 | |||||||||||||||||||
Income taxes
|
12,040 | (4,399 | ) | (1,326 | ) | (4,597 | ) | (4,483 | ) | (14,805 | ) | 732 | 116.6 | % | 5,131 | |||||||||||||||||||||
Net earnings (loss) from continuing operations
|
(17,340 | ) | (10,741 | ) | (7,101 | ) | 337 | (9,037 | ) | (26,542 | ) | (5,182 | ) | 51.8 | % | 5,559 | ||||||||||||||||||||
Earnings from discontinued operations, net of tax
|
26,143 | 3,137 | 5,557 | 3,819 | 2,998 | 15,511 | 4,143 | 32.1 | % | 1,006 | ||||||||||||||||||||||||||
Net earnings (loss)
|
8,803 | (7,604 | ) | (1,544 | ) | 4,156 | (6,039 | ) | (11,031 | ) | (1,039 | ) | 86.3 | % | 6,565 | |||||||||||||||||||||
NCI
|
(60 | ) | 0 | 0 | 0 | 0 | 0 | 0 | - | 0 | ||||||||||||||||||||||||||
Net earnings (loss) attributable to Acxiom
|
8,863 | (7,604 | ) | (1,544 | ) | 4,156 | (6,039 | ) | (11,031 | ) | (1,039 | ) | 86.3 | % | 6,565 | |||||||||||||||||||||
Diluted earnings (loss) per share
|
0.12 | (0.10 | ) | (0.02 | ) | 0.05 | (0.08 | ) | (0.14 | ) | (0.01 | ) | 86.5 | % | 0.09 | |||||||||||||||||||||
Basic shares
|
74,690 | 76,833 | 77,123 | 77,039 | 77,427 | 77,106 | 77,918 | |||||||||||||||||||||||||||||
Diluted shares
|
76,954 | 78,341 | 78,307 | 78,302 | 79,027 | 78,494 | 79,352 | |||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS-NON GAAP
|
||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except earnings per share)
|
||||||||||||||||||||||||||||||||||||
Q1 FY16 to Q1 FY15
|
||||||||||||||||||||||||||||||||||||
FY2014
|
06/30/14
|
09/30/14
|
12/31/14
|
03/31/15
|
FY2015
|
06/30/15
|
%
|
$ | ||||||||||||||||||||||||||||
Revenues
|
805,153 | 186,683 | 204,248 | 208,246 | 205,734 | 804,911 | 196,895 | 5.5 | % | 10,212 | ||||||||||||||||||||||||||
Cost of revenue
|
471,015 | 112,723 | 118,012 | 118,412 | 114,586 | 463,733 | 112,084 | -0.6 | % | (639 | ) | |||||||||||||||||||||||||
Gross profit
|
334,138 | 73,960 | 86,236 | 89,834 | 91,148 | 341,178 | 84,811 | 14.7 | % | 10,851 | ||||||||||||||||||||||||||
% Gross margin
|
41.5 | % | 39.6 | % | 42.2 | % | 43.1 | % | 44.3 | % | 42.4 | % | 43.1 | % | ||||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||||||||||||||
Research and development
|
63,701 | 15,911 | 17,286 | 16,283 | 16,613 | 66,093 | 16,384 | 3.0 | % | 473 | ||||||||||||||||||||||||||
Sales and marketing
|
112,080 | 25,854 | 27,040 | 28,941 | 30,150 | 111,985 | 28,170 | 9.0 | % | 2,316 | ||||||||||||||||||||||||||
General and administrative
|
94,807 | 23,627 | 27,702 | 23,869 | 22,656 | 97,854 | 25,586 | 8.3 | % | 1,959 | ||||||||||||||||||||||||||
Gains, losses and other items, net
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total operating expenses
|
270,588 | 65,392 | 72,028 | 69,093 | 69,419 | 275,932 | 70,140 | 7.3 | % | 4,748 | ||||||||||||||||||||||||||
Income from operations
|
63,550 | 8,568 | 14,208 | 20,741 | 21,729 | 65,246 | 14,671 | 71.2 | % | 6,103 | ||||||||||||||||||||||||||
% Margin
|
7.9 | % | 4.6 | % | 7.0 | % | 10.0 | % | 10.6 | % | 8.1 | % | 7.5 | % | ||||||||||||||||||||||
Other income (expense)
|
||||||||||||||||||||||||||||||||||||
Interest expense
|
(8,671 | ) | (1,948 | ) | (1,821 | ) | (2,005 | ) | (1,898 | ) | (7,672 | ) | (1,885 | ) | 3.2 | % | 63 | |||||||||||||||||||
Other, net
|
(758 | ) | (106 | ) | (163 | ) | 35 | (757 | ) | (991 | ) | 304 | 386.8 | % | 410 | |||||||||||||||||||||
Total other expense
|
(9,429 | ) | (2,054 | ) | (1,984 | ) | (1,970 | ) | (2,655 | ) | (8,663 | ) | (1,581 | ) | 23.0 | % | 473 | |||||||||||||||||||
Earnings from continuing operations before income taxes
|
54,121 | 6,514 | 12,224 | 18,771 | 19,074 | 56,583 | 13,090 | 101.0 | % | 6,576 | ||||||||||||||||||||||||||
Income taxes
|
17,200 | 2,517 | 4,757 | 5,755 | 5,324 | 18,353 | 5,632 | 123.8 | % | 3,115 | ||||||||||||||||||||||||||
Net earnings from continuing operations
|
36,921 | 3,997 | 7,467 | 13,016 | 13,750 | 38,230 | 7,458 | 86.6 | % | 3,461 | ||||||||||||||||||||||||||
Earnings from discontinued operations, net of tax
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Net earnings
|
36,921 | 3,997 | 7,467 | 13,016 | 13,750 | 38,230 | 7,458 | 86.6 | % | 3,461 | ||||||||||||||||||||||||||
NCI
|
(60 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Net earnings attributable to Acxiom
|
36,981 | 3,997 | 7,467 | 13,016 | 13,750 | 38,230 | 7,458 | 86.6 | % | 3,461 | ||||||||||||||||||||||||||
Diluted earnings per share
|
0.48 | 0.05 | 0.10 | 0.17 | 0.17 | 0.49 | 0.09 | 84.2 | % | 0.04 | ||||||||||||||||||||||||||
Basic shares
|
74,690 | 76,833 | 77,123 | 77,039 | 77,427 | 77,106 | 77,918 | |||||||||||||||||||||||||||||
Diluted shares
|
76,954 | 78,341 | 78,307 | 78,302 | 79,027 | 78,494 | 79,352 | |||||||||||||||||||||||||||||
Income tax impact of interest-used same rate as prior to change
|
31.78 | % | 38.64 | % | 38.50 | % | 30.39 | % | 27.65 | % | ||||||||||||||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP EPS
|
||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||
(Dollars in thousands, except earnings per share)
|
||||||||||||||||||||||||||||
FY2014
|
06/30/14
|
09/30/14
|
12/31/14
|
03/31/15
|
FY2015
|
06/30/15
|
||||||||||||||||||||||
Loss from continuing operations before income taxes
|
(5,300 | ) | (15,140 | ) | (8,427 | ) | (4,260 | ) | (13,520 | ) | (41,347 | ) | (4,450 | ) | ||||||||||||||
Income taxes
|
12,040 | (4,399 | ) | (1,446 | ) | (4,717 | ) | (4,603 | ) | (15,165 | ) | 732 | ||||||||||||||||
Net earnings (loss) from continuing operations
|
(17,340 | ) | (10,741 | ) | (6,981 | ) | 457 | (8,917 | ) | (26,182 | ) | (5,182 | ) | |||||||||||||||
Earnings (loss) from discontinued operations, net of tax
|
26,143 | 3,137 | 5,557 | 3,819 | 2,998 | 15,511 | 4,143 | |||||||||||||||||||||
Net earnings (loss)
|
8,803 | (7,604 | ) | (1,424 | ) | 4,276 | (5,919 | ) | (10,671 | ) | (1,039 | ) | ||||||||||||||||
Earnings (loss) per share:
|
||||||||||||||||||||||||||||
Basic
|
0.12 | (0.10 | ) | (0.02 | ) | 0.06 | (0.08 | ) | (0.14 | ) | (0.01 | ) | ||||||||||||||||
Diluted
|
0.11 | (0.10 | ) | (0.02 | ) | 0.05 | (0.08 | ) | (0.14 | ) | (0.01 | ) | ||||||||||||||||
Excluded items:
|
||||||||||||||||||||||||||||
Purchased intangible asset amortization (cost of revenue)
|
252 | 63 | 3,802 | 3,783 | 3,781 | 11,429 | 3,754 | |||||||||||||||||||||
Non-cash stock compensation (cost of revenue and operating expenses)
|
13,206 | 3,925 | 7,725 | 8,450 | 8,216 | 28,316 | 8,123 | |||||||||||||||||||||
Restructuring charges and other adjustments (gains, losses, and other)
|
42,121 | 7,128 | 833 | 3,381 | 11,137 | 22,479 | 807 | |||||||||||||||||||||
Separation and transformation costs (general and administrative)
|
6,409 | 10,538 | 8,291 | 7,417 | 5,144 | 31,390 | 3,414 | |||||||||||||||||||||
Accelerated amortization (cost of revenue)
|
- | - | - | - | 4,316 | 4,316 | 1,442 | |||||||||||||||||||||
Other income
|
(2,567 | ) | - | - | - | - | - | - | ||||||||||||||||||||
Total excluded items, continuing operations
|
59,421 | 21,654 | 20,651 | 23,031 | 32,594 | 97,930 | 17,540 | |||||||||||||||||||||
Earnings from continuing operations before income taxes
|
||||||||||||||||||||||||||||
and excluding items
|
54,121 | 6,514 | 12,224 | 18,771 | 19,074 | 56,583 | 13,090 | |||||||||||||||||||||
Income taxes
|
17,200 | 2,517 | 4,757 | 5,755 | 5,324 | 18,353 | 5,632 | |||||||||||||||||||||
Non-GAAP earnings from continuing operations
|
36,921 | 3,997 | 7,467 | 13,016 | 13,750 | 38,230 | 7,458 | |||||||||||||||||||||
Less: noncontrolling interest
|
(60 | ) | - | - | - | - | - | - | ||||||||||||||||||||
Non-GAAP net earnings
|
36,981 | 3,997 | 7,467 | 13,016 | 13,750 | 38,230 | 7,458 | |||||||||||||||||||||
Non-GAAP earnings per share:
|
||||||||||||||||||||||||||||
Basic
|
0.50 | 0.05 | 0.10 | 0.17 | 0.18 | 0.50 | 0.10 | |||||||||||||||||||||
Diluted
|
0.48 | 0.05 | 0.10 | 0.17 | 0.17 | 0.49 | 0.09 | |||||||||||||||||||||
Basic weighted average shares
|
74,690 | 76,833 | 77,123 | 77,039 | 77,427 | 77,106 | 77,918 | |||||||||||||||||||||
Diluted weighted average shares
|
76,954 | 78,341 | 78,307 | 78,302 | 79,027 | 78,494 | 79,352 | |||||||||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||||
RESULTS BY SEGMENT-GAAP
|
||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Q1 FY16 to Q1 FY15
|
||||||||||||||||||||||||||||||||||||
FY2014
|
06/30/14
|
09/30/14
|
12/31/14
|
03/31/15
|
FY2015
|
06/30/15
|
%
|
$ | ||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Marketing services and audience solutions
|
790,394 | 182,349 | 190,776 | 190,336 | 186,478 | 749,939 | 176,276 | -3.3 | % | (6,073 | ) | |||||||||||||||||||||||||
Connectivity
|
14,759 | 4,334 | 13,472 | 17,910 | 19,256 | 54,972 | 20,619 | 375.7 | % | 16,285 | ||||||||||||||||||||||||||
Total revenues
|
805,153 | 186,683 | 204,248 | 208,246 | 205,734 | 804,911 | 196,895 | 5.5 | % | 10,212 | ||||||||||||||||||||||||||
Gross profit from continuing operations:
|
||||||||||||||||||||||||||||||||||||
Marketing services and audience solutions
|
344,034 | 77,224 | 83,409 | 83,715 | 82,594 | 326,942 | 72,019 | -6.7 | % | (5,205 | ) | |||||||||||||||||||||||||
Connectivity
|
(11,373 | ) | (3,631 | ) | (1,249 | ) | 1,964 | 4,400 | 1,484 | 8,609 | 337.1 | % | 12,240 | |||||||||||||||||||||||
Corporate
|
- | - | - | - | (4,315 | ) | (4,315 | ) | (1,442 | ) | n/a | (1,442 | ) | |||||||||||||||||||||||
Total gross profit from continuing operations
|
332,661 | 73,593 | 82,160 | 85,679 | 82,679 | 324,111 | 79,186 | 7.6 | % | 5,593 | ||||||||||||||||||||||||||
Gross margin:
|
||||||||||||||||||||||||||||||||||||
Marketing services and audience solutions
|
43.5 | % | 42.3 | % | 43.7 | % | 44.0 | % | 44.3 | % | 43.6 | % | 40.9 | % | ||||||||||||||||||||||
Connectivity
|
-77.1 | % | -83.8 | % | -9.3 | % | 11.0 | % | 22.9 | % | 2.7 | % | 41.8 | % | ||||||||||||||||||||||
Total
|
41.3 | % | 39.4 | % | 40.2 | % | 41.1 | % | 40.2 | % | 40.3 | % | 40.2 | % | ||||||||||||||||||||||
Income (loss) from continuing operations:
|
||||||||||||||||||||||||||||||||||||
Marketing services and audience solutions
|
208,403 | 46,221 | 52,302 | 51,268 | 48,065 | 197,856 | 38,287 | -17.2 | % | (7,934 | ) | |||||||||||||||||||||||||
Connectivity
|
(48,839 | ) | (14,261 | ) | (20,277 | ) | (16,876 | ) | (17,444 | ) | (68,858 | ) | (8,025 | ) | 43.7 | % | 6,236 | |||||||||||||||||||
Corporate
|
(158,007 | ) | (45,046 | ) | (38,468 | ) | (36,682 | ) | (41,486 | ) | (161,682 | ) | (33,131 | ) | 26.5 | % | 11,915 | |||||||||||||||||||
Total income (loss) from continuing operations
|
1,557 | (13,086 | ) | (6,443 | ) | (2,290 | ) | (10,865 | ) | (32,684 | ) | (2,869 | ) | 78.1 | % | 10,217 | ||||||||||||||||||||
Margin:
|
||||||||||||||||||||||||||||||||||||
Marketing services and audience solutions
|
26.4 | % | 25.3 | % | 27.4 | % | 26.9 | % | 25.8 | % | 26.4 | % | 21.7 | % | ||||||||||||||||||||||
Connectivity
|
-330.9 | % | -329.0 | % | -150.5 | % | -94.2 | % | -90.6 | % | -125.3 | % | -38.9 | % | ||||||||||||||||||||||
Total
|
0.2 | % | -7.0 | % | -3.2 | % | -1.1 | % | -5.3 | % | -4.1 | % | -1.5 | % | ||||||||||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||||
RESULTS BY SEGMENT - NON GAAP
|
||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
Q1 FY16 to Q1 FY15
|
||||||||||||||||||||||||||||||||||||
FY2014
|
06/30/14
|
09/30/14
|
12/31/14
|
03/31/15
|
FY2015
|
06/30/15
|
%
|
$ | ||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||
Marketing services and audience solutions
|
790,394 | 182,349 | 190,776 | 190,336 | 186,478 | 749,939 | 176,276 | -3.3 | % | (6,073 | ) | |||||||||||||||||||||||||
Connectivity
|
14,759 | 4,334 | 13,472 | 17,910 | 19,256 | 54,972 | 20,619 | 375.7 | % | 16,285 | ||||||||||||||||||||||||||
Total revenues
|
805,153 | 186,683 | 204,248 | 208,246 | 205,734 | 804,911 | 196,895 | 5.5 | % | 10,212 | ||||||||||||||||||||||||||
Gross profit from continuing operations:
|
||||||||||||||||||||||||||||||||||||
Marketing services and audience solutions
|
345,356 | 77,559 | 85,029 | 82,863 | 83,012 | 328,463 | 72,473 | -6.6 | % | (5,086 | ) | |||||||||||||||||||||||||
Connectivity
|
(11,218 | ) | (3,599 | ) | 1,207 | 6,971 | 8,136 | 12,715 | 12,338 | 442.8 | % | 15,937 | ||||||||||||||||||||||||
Corporate
|
- | - | - | - | - | - | - | n/a | - | |||||||||||||||||||||||||||
Total income from continuing operations
|
334,138 | 73,960 | 86,236 | 89,834 | 91,148 | 341,178 | 84,811 | 14.7 | % | 10,851 | ||||||||||||||||||||||||||
Gross margin:
|
||||||||||||||||||||||||||||||||||||
Marketing services and audience solutions
|
43.7 | % | 42.5 | % | 44.6 | % | 43.5 | % | 44.5 | % | 43.8 | % | 41.1 | % | ||||||||||||||||||||||
Connectivity
|
-76.0 | % | -83.0 | % | 9.0 | % | 38.9 | % | 42.3 | % | 23.1 | % | 59.8 | % | ||||||||||||||||||||||
Total
|
41.5 | % | 39.6 | % | 42.2 | % | 43.1 | % | 44.3 | % | 42.4 | % | 43.1 | % | ||||||||||||||||||||||
Income from continuing operations:
|
||||||||||||||||||||||||||||||||||||
Marketing services and audience solutions
|
214,242 | 47,269 | 54,902 | 51,280 | 50,803 | 204,254 | 40,253 | -14.8 | % | (7,016 | ) | |||||||||||||||||||||||||
Connectivity
|
(47,555 | ) | (13,852 | ) | (13,053 | ) | (6,205 | ) | (5,809 | ) | (38,919 | ) | (173 | ) | 98.8 | % | 13,679 | |||||||||||||||||||
Corporate
|
(103,137 | ) | (24,849 | ) | (27,641 | ) | (24,334 | ) | (23,265 | ) | (100,089 | ) | (25,409 | ) | -2.3 | % | (560 | ) | ||||||||||||||||||
Total income from continuing operations
|
63,550 | 8,568 | 14,208 | 20,741 | 21,729 | 65,246 | 14,671 | 71.2 | % | 6,103 | ||||||||||||||||||||||||||
Margin:
|
||||||||||||||||||||||||||||||||||||
Marketing services and audience solutions
|
27.1 | % | 25.9 | % | 28.8 | % | 26.9 | % | 27.2 | % | 27.2 | % | 22.8 | % | ||||||||||||||||||||||
Connectivity
|
-322.2 | % | -319.6 | % | -96.9 | % | -34.6 | % | -30.2 | % | -70.8 | % | -0.8 | % | ||||||||||||||||||||||
Total
|
7.9 | % | 4.6 | % | 7.0 | % | 10.0 | % | 10.6 | % | 8.1 | % | 7.5 | % | ||||||||||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
March 31,
|
June 30,
|
Sept 30,
|
Dec 31,
|
March 31,
|
June 30,
|
|||||||||||||||||||
2014
|
2014
|
2014
|
2014
|
2015
|
2015
|
|||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Current assets:
|
||||||||||||||||||||||||
Cash and cash equivalents
|
418,586 | 392,918 | 109,810 | 126,891 | 141,010 | 123,192 | ||||||||||||||||||
Trade accounts receivable, net
|
129,216 | 120,186 | 123,055 | 122,320 | 126,896 | 135,626 | ||||||||||||||||||
Deferred income taxes
|
9,469 | 16,774 | 14,689 | 12,408 | 25,610 | 23,111 | ||||||||||||||||||
Refundable income taxes
|
11,535 | 11,436 | 5,128 | 11,823 | 5,239 | 21 | ||||||||||||||||||
Restricted cash held in escrow
|
- | 31,000 | 31,000 | 31,000 | 31,000 | |||||||||||||||||||
Other current assets
|
39,245 | 36,904 | 41,428 | 38,443 | 34,975 | 37,187 | ||||||||||||||||||
Assets of discontinued operations
|
205,387 | 180,205 | 186,453 | 175,843 | 172,284 | 163,768 | ||||||||||||||||||
Total current assets
|
813,438 | 758,423 | 511,563 | 518,728 | 537,014 | 513,905 | ||||||||||||||||||
Property and equipment
|
531,298 | 536,315 | 545,455 | 510,943 | 505,721 | 505,736 | ||||||||||||||||||
Less - accumulated depreciation and amortization
|
375,047 | 372,457 | 373,341 | 340,530 | 329,467 | 325,995 | ||||||||||||||||||
Property and equipment, net
|
156,251 | 163,858 | 172,114 | 170,413 | 176,254 | 179,741 | ||||||||||||||||||
Software, net of accumulated amortization
|
39,425 | 40,766 | 79,768 | 77,033 | 68,962 | 63,242 | ||||||||||||||||||
Goodwill
|
286,876 | 287,163 | 501,960 | 501,081 | 497,362 | 497,456 | ||||||||||||||||||
Purchased software licenses, net of accumulated amortization
|
14,306 | 13,883 | 11,723 | 10,516 | 9,551 | 9,492 | ||||||||||||||||||
Other assets, net
|
13,005 | 13,380 | 38,100 | 36,182 | 33,281 | 31,195 | ||||||||||||||||||
1,323,301 | 1,277,473 | 1,315,228 | 1,313,953 | 1,322,424 | 1,295,031 | |||||||||||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||||||
Current installments of long-term debt
|
26,599 | 29,781 | 32,982 | 32,632 | 32,232 | 87,186 | ||||||||||||||||||
Trade accounts payable
|
30,054 | 34,793 | 38,991 | 28,399 | 30,094 | 39,606 | ||||||||||||||||||
Accrued payroll and related expenses
|
57,917 | 29,306 | 29,553 | 33,524 | 36,659 | 26,013 | ||||||||||||||||||
Other accrued expenses
|
64,024 | 61,805 | 59,987 | 62,447 | 62,754 | 55,025 | ||||||||||||||||||
Acquisition escrow payable
|
- | - | 31,000 | 31,000 | 31,000 | 31,000 | ||||||||||||||||||
Deferred revenue
|
39,611 | 33,914 | 29,702 | 32,882 | 33,620 | 33,554 | ||||||||||||||||||
Income taxes
|
241 | - | - | - | - | - | ||||||||||||||||||
Liabilities of discontinued operations
|
74,488 | 69,261 | 69,936 | 62,268 | 57,433 | 50,764 | ||||||||||||||||||
Total current liabilities
|
292,934 | 258,860 | 292,151 | 283,152 | 283,792 | 323,148 | ||||||||||||||||||
Long-term debt
|
280,087 | 271,988 | 263,950 | 255,802 | 247,855 | 184,802 | ||||||||||||||||||
Deferred income taxes
|
62,147 | 60,401 | 73,345 | 75,419 | 80,675 | 76,654 | ||||||||||||||||||
Other liabilities
|
5,276 | 6,790 | 7,300 | 9,172 | 6,845 | 12,125 | ||||||||||||||||||
Stockholders' equity:
|
||||||||||||||||||||||||
Common stock
|
12,584 | 12,644 | 12,707 | 12,723 | 12,794 | 12,847 | ||||||||||||||||||
Additional paid-in capital
|
981,985 | 988,607 | 1,005,443 | 1,015,697 | 1,034,526 | 1,045,897 | ||||||||||||||||||
Retained earnings
|
602,829 | 595,225 | 593,681 | 597,837 | 591,798 | 590,759 | ||||||||||||||||||
Accumulated other comprehensive income
|
13,662 | 14,428 | 11,856 | 9,364 | 9,413 | 10,142 | ||||||||||||||||||
Treasury stock, at cost
|
(928,203 | ) | (931,470 | ) | (945,205 | ) | (945,213 | ) | (945,274 | ) | (961,343 | ) | ||||||||||||
Total stockholders' equity
|
682,857 | 679,434 | 678,482 | 690,408 | 703,257 | 698,302 | ||||||||||||||||||
1,323,301 | 1,277,473 | 1,315,228 | 1,313,953 | 1,322,424 | 1,295,031 | |||||||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||
FY2014
|
06/30/14
|
09/30/14
|
12/31/14
|
03/31/15
|
FY2015
|
06/30/15
|
||||||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||||||||||
Net earnings (loss)
|
8,803 | (7,604 | ) | (1,544 | ) | 4,156 | (6,039 | ) | (11,031 | ) | (1,039 | ) | ||||||||||||||||
Loss (earnings) from discontinued operations, net of tax
|
(26,143 | ) | (3,137 | ) | (5,557 | ) | (3,819 | ) | (2,998 | ) | (15,511 | ) | (4,143 | ) | ||||||||||||||
Non-cash operating activities:
|
||||||||||||||||||||||||||||
Depreciation and amortization
|
56,900 | 15,920 | 18,257 | 20,510 | 25,760 | 80,447 | 21,775 | |||||||||||||||||||||
Loss (gain) on disposal or impairment of assets, net
|
(2,591 | ) | (254 | ) | 47 | (68 | ) | 1,975 | 1,700 | 241 | ||||||||||||||||||
Impairment of goodwill and other
|
24,953 | - | - | - | - | - | - | |||||||||||||||||||||
Loss on early extinguishment of debt
|
664 | - | - | - | - | - | - | |||||||||||||||||||||
Deferred income taxes
|
10,935 | (1,843 | ) | (4,179 | ) | 4,002 | (2,945 | ) | (4,965 | ) | (1,522 | ) | ||||||||||||||||
Non-cash stock compensation expense
|
13,206 | 3,925 | 7,725 | 8,450 | 8,216 | 28,316 | 8,123 | |||||||||||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||||||||||||||
Accounts receivable
|
(2,797 | ) | 11,399 | (848 | ) | (978 | ) | (5,829 | ) | 3,744 | (8,037 | ) | ||||||||||||||||
Other assets
|
(8,609 | ) | 3,590 | 1,778 | (3,959 | ) | 11,770 | 13,179 | 809 | |||||||||||||||||||
Deferred costs
|
(445 | ) | (211 | ) | - | (105 | ) | 4 | (312 | ) | (425 | ) | ||||||||||||||||
Accounts payable and other liabilities
|
14,369 | (29,057 | ) | 967 | 1,411 | (1,450 | ) | (28,129 | ) | (3,530 | ) | |||||||||||||||||
Deferred revenue
|
6,541 | (8,184 | ) | (2,321 | ) | 3,290 | 908 | (6,307 | ) | (255 | ) | |||||||||||||||||
Net cash provided by operating activities
|
95,786 | (15,456 | ) | 14,325 | 32,890 | 29,372 | 61,131 | 11,997 | ||||||||||||||||||||
Cash flows from investing activities:
|
||||||||||||||||||||||||||||
Capitalized software
|
(24,517 | ) | (4,969 | ) | (5,608 | ) | (4,408 | ) | (3,602 | ) | (18,587 | ) | (2,797 | ) | ||||||||||||||
Capital expenditures
|
(25,951 | ) | (16,778 | ) | (15,362 | ) | (10,212 | ) | (14,600 | ) | (56,952 | ) | (12,876 | ) | ||||||||||||||
Data acquisition costs
|
(7,745 | ) | (635 | ) | (468 | ) | (394 | ) | (374 | ) | (1,871 | ) | (430 | ) | ||||||||||||||
Payments from investments
|
3,823 | - | - | - | - | - | - | |||||||||||||||||||||
Net cash paid in acquisitions
|
(500 | ) | - | (265,672 | ) | - | - | (265,672 | ) | - | ||||||||||||||||||
Net cash used in investing activities
|
(54,890 | ) | (22,382 | ) | (287,110 | ) | (15,014 | ) | (18,576 | ) | (343,082 | ) | (16,103 | ) | ||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||||||||||||||
Proceeds from debt
|
300,000 | - | - | - | - | - | - | |||||||||||||||||||||
Payments of debt
|
(231,151 | ) | (4,917 | ) | (4,839 | ) | (8,498 | ) | (8,347 | ) | (26,601 | ) | (8,099 | ) | ||||||||||||||
Fees for debt refinancing
|
(4,370 | ) | - | - | - | - | - | - | ||||||||||||||||||||
Sale of common stock, net of stock acquired for withholding taxes
|
80,490 | (674 | ) | (1,813 | ) | 1,680 | 5,846 | 5,039 | 2,069 | |||||||||||||||||||
Tax impact of stock options, warrants, and restricted stock
|
(52,663 | ) | - | (9,868 | ) | - | - | (9,868 | ) | (77 | ) | |||||||||||||||||
Acquisition of treasury stock
|
11,295 | - | - | - | 4,645 | 4,645 | (14,951 | ) | ||||||||||||||||||||
Acquisition of NCI
|
(600 | ) | - | - | - | - | - | - | ||||||||||||||||||||
Net cash provided (used) by financing activities
|
103,001 | (5,591 | ) | (16,520 | ) | (6,818 | ) | 2,144 | (26,785 | ) | (21,058 | ) | ||||||||||||||||
Cash flows from discontinued operations:
|
||||||||||||||||||||||||||||
From operating activities
|
69,190 | 17,310 | 11,547 | 9,916 | 5,080 | 43,853 | 11,653 | |||||||||||||||||||||
From investing activities
|
(13,347 | ) | 704 | (4,034 | ) | (2,920 | ) | (3,004 | ) | (9,254 | ) | (4,484 | ) | |||||||||||||||
From financing activities
|
(4,744 | ) | (585 | ) | (517 | ) | (459 | ) | (259 | ) | (1,820 | ) | (153 | ) | ||||||||||||||
Net cash provided by discontinued operations
|
51,099 | 17,429 | 6,996 | 6,537 | 1,817 | 32,779 | 7,016 | |||||||||||||||||||||
Effect of exchange rate changes on cash
|
616 | 332 | (801 | ) | (512 | ) | (638 | ) | (1,619 | ) | 330 | |||||||||||||||||
Net change in cash and cash equivalents
|
195,612 | (25,668 | ) | (283,110 | ) | 17,083 | 14,119 | (277,576 | ) | (17,818 | ) | |||||||||||||||||
Cash and cash equivalents at beginning of period
|
222,974 | 418,586 | 392,918 | 109,808 | 126,891 | 418,586 | 141,010 | |||||||||||||||||||||
Cash and cash equivalents at end of period
|
418,586 | 392,918 | 109,808 | 126,891 | 141,010 | 141,010 | 123,192 | |||||||||||||||||||||
Supplemental cash flow information:
|
||||||||||||||||||||||||||||
Cash paid (received) during the period for:
|
||||||||||||||||||||||||||||
Interest
|
11,762 | 2,875 | 2,516 | 809 | 2,473 | 8,673 | 2,185 | |||||||||||||||||||||
Income taxes
|
21,702 | 297 | 59 | 182 | (4,383 | ) | (3,845 | ) | (1,044 | ) | ||||||||||||||||||
Prepayment of debt
|
215,000 | - | - | - | - | - | - | |||||||||||||||||||||
Payments on capital leases and installment payment arrangements
|
8,379 | 1,235 | 1,084 | 930 | 574 | 3,823 | 216 | |||||||||||||||||||||
Other debt payments, excluding line of credit
|
12,516 | 4,267 | 4,272 | 8,027 | 8,032 | 24,598 | 8,036 | |||||||||||||||||||||
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