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): February 4, 2016
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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 February 4, 2016
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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 February 4, 2016
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·
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Revenue: Total revenue was $221 million, up approximately 6% compared to the third quarter of last year. Excluding an unfavorable currency impact of approximately $2 million, revenue was up 7%. US revenue of $199 million was up 8% year-over-year.
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·
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Operating Income (Loss): GAAP operating loss from continuing operations improved to nearly break-even compared to a loss of $2 million in the prior year. Non-GAAP operating income from continuing operations improved 7% to approximately $22 million.
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·
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Earnings (Loss) per Share: GAAP loss per share from continuing operations was $0.01 compared to earnings per share of $0.00 in the prior year. Non-GAAP diluted earnings per share from continuing operations were $0.18, up from $0.17 a year ago.
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·
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Operating Cash Flow: Operating cash flow from continuing operations was $37 million, up 13% from $33 million last year.
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·
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Free Cash Flow to Equity: Free cash flow to equity was $14 million, up 52% from $9 million in the prior year. This measure excludes cash flows related to the IT Infrastructure Management divestiture.
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·
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Revenue was $116 million, up 1% compared to the third quarter of last year. US revenue of $106 million was up 3% year-over-year.
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·
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Gross margin decreased from 36% to 33%.
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·
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Operating income was $20 million, down 7% compared to the prior year.
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·
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The declines in gross margin and operating income were driven by infrastructure investments in the US.
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·
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Revenue was $77 million, up 1% compared to the prior year period. US revenue of $66 million was up 3% year-over-year.
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·
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Gross margin improved from 52% to 59%.
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·
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Operating income was $31 million, up 6% compared to the prior year.
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·
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The improvements in gross margin and operating income were driven by revenue growth and operational cost efficiencies, partially offset by investments in R&D and sales and marketing.
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·
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Revenue was $28 million, up approximately 59% compared to the third quarter of last year, driven by continued onboarding momentum. Connectivity exited the quarter with a $100 million annualized revenue run-rate.
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·
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Gross margin improved from 33% to 57%.
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·
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Operating loss improved by $7 million to a slight loss of roughly $1 million.
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·
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The improvements in gross margin and operating results were driven by growth in subscriptions and royalties, partially offset by on-going investments to support growth.
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·
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Connectivity added over 20 new customers during the quarter and added 25 new partner integrations. Marketers can now onboard and distribute their data to a growing network of more than 275 marketing platforms and data providers.
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·
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Acxiom powered $122 million of gross media spend in the third quarter, up 66% year-over-year. On a trailing twelve-month basis, Acxiom powered $317 million of gross media spend, up 107% over the comparable period.
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·
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Acxiom expanded its addressable TV offering with the acquisition of the Audience Interconnect data platform from Allant Group. This capacity provides partners with the leading ability to reach targeted US households via data-driven ad campaigns. Ad sellers, agencies and brands can activate data across an expanded ecosystem that includes TV partners representing nearly 50 million addressable homes and over 100 million individuals.
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·
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Dennis Self was appointed President and General Manager of Marketing Services. Self has held several mission critical roles within Acxiom, including senior vice president of delivery for Marketing Services, where he led the transformation and modernization of the company’s client delivery function. Prior to that, he served as the company’s chief information officer and senior vice president of technical operations.
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·
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Acxiom repurchased 463,000 shares for approximately $10 million during the quarter. Since inception of the share repurchase program in August 2011, Acxiom has repurchased 14.8 million shares for $240 million.
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·
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Revenue from continuing operations in the range of $835 million to $840 million as compared to Acxiom’s previous estimate of $815 million to $840 million
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·
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Non-GAAP diluted earnings per share from continuing operations to be as much as $0.54 as compared to the company’s previous estimate of between $0.45 and $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 earnings (loss) per share)
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For the Three Months Ended
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December 31,
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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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221,193 | 208,246 | 12,947 | 6.2 | % | |||||||||||
Cost of revenue
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125,735 | 125,807 | (72 | ) | (0.1 | %) | ||||||||||
Gross profit
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95,458 | 82,439 | 13,019 | 15.8 | % | |||||||||||
% Gross margin
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43.2 | % | 39.6 | % | ||||||||||||
Operating expenses:
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||||||||||||||||
Research and development
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18,400 | 18,973 | (573 | ) | (3.0 | %) | ||||||||||
Sales and marketing
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36,581 | 30,554 | 6,027 | 19.7 | % | |||||||||||
General and administrative
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36,793 | 31,821 | 4,972 | 15.6 | % | |||||||||||
Gains, losses and other items, net
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4,058 | 3,381 | 677 | 20.0 | % | |||||||||||
Total operating expenses
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95,832 | 84,729 | 11,103 | 13.1 | % | |||||||||||
Loss from operations
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(374 | ) | (2,290 | ) | 1,916 | 83.7 | % | |||||||||
% Margin
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-0.2 | % | -1.1 | % | ||||||||||||
Other income (expense):
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||||||||||||||||
Interest expense
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(1,948 | ) | (2,005 | ) | 57 | 2.8 | % | |||||||||
Other, net
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303 | 35 | 268 | 765.7 | % | |||||||||||
Total other expense
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(1,645 | ) | (1,970 | ) | 325 | 16.5 | % | |||||||||
Loss from continuing operations before income taxes
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(2,019 | ) | (4,260 | ) | 2,241 | 52.6 | % | |||||||||
Income taxes
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(1,580 | ) | (4,597 | ) | 3,017 | 65.6 | % | |||||||||
Net earnings (loss) from continuing operations
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(439 | ) | 337 | (776 | ) | (230.3 | %) | |||||||||
Earnings (loss) from discontinued operations, net of tax
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(971 | ) | 3,819 | (4,790 | ) | (125.4 | %) | |||||||||
Net earnings (loss)
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(1,410 | ) | 4,156 | (5,566 | ) | (133.9 | %) | |||||||||
Basic earnings (loss) per share:
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||||||||||||||||
Net earnings (loss) from continuing operations
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(0.01 | ) | 0.00 | (0.01 | ) | (228.9 | %) | |||||||||
Net earnings (loss) from discontinued operations
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(0.01 | ) | 0.05 | (0.06 | ) | (125.2 | %) | |||||||||
Net earnings (loss)
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(0.02 | ) | 0.05 | (0.07 | ) | (133.6 | %) | |||||||||
Diluted earnings (loss) per share:
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Net earnings (loss) from continuing operations
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(0.01 | ) | 0.00 | (0.01 | ) | (231.1 | %) | |||||||||
Net earnings (loss) from discontinued operations
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(0.01 | ) | 0.05 | (0.06 | ) | (125.6 | %) | |||||||||
Net earnings (loss)
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(0.02 | ) | 0.05 | (0.07 | ) | (134.1 | %) | |||||||||
Some earnings (loss) per share amounts may not add due to rounding
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Basic shares
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77,831 | 77,039 | ||||||||||||||
FDWA shares
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79,346 | 78,302 | ||||||||||||||
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 (loss) per share)
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For the Nine Months Ended
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December 31,
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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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625,433 | 599,177 | 26,256 | 4.4 | % | |||||||||||
Cost of revenue
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364,756 | 366,329 | (1,573 | ) | (0.4 | %) | ||||||||||
Gross profit
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260,677 | 232,848 | 27,829 | 12.0 | % | |||||||||||
% Gross margin
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41.7 | % | 38.9 | % | ||||||||||||
Operating expenses:
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||||||||||||||||
Research and development
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57,489 | 55,121 | 2,368 | 4.3 | % | |||||||||||
Sales and marketing
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100,334 | 85,410 | 14,924 | 17.5 | % | |||||||||||
General and administrative
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100,055 | 102,794 | (2,739 | ) | (2.7 | %) | ||||||||||
Gains, losses and other items, net
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8,098 | 11,342 | (3,244 | ) | (28.6 | %) | ||||||||||
Total operating expenses
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265,976 | 254,667 | 11,309 | 4.4 | % | |||||||||||
Loss from operations
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(5,299 | ) | (21,819 | ) | 16,520 | 75.7 | % | |||||||||
% Margin
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-0.8 | % | -3.6 | % | ||||||||||||
Other income (expense):
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||||||||||||||||
Interest expense
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(5,789 | ) | (5,774 | ) | (15 | ) | (0.3 | %) | ||||||||
Other, net
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666 | (234 | ) | 900 | 384.6 | % | ||||||||||
Total other expense
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(5,123 | ) | (6,008 | ) | 885 | 14.7 | % | |||||||||
Loss from continuing operations before income taxes
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(10,422 | ) | (27,827 | ) | 17,405 | 62.5 | % | |||||||||
Income taxes
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(3,456 | ) | (10,322 | ) | 6,866 | 66.5 | % | |||||||||
Net loss from continuing operations
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(6,966 | ) | (17,505 | ) | 10,539 | 60.2 | % | |||||||||
Earnings from discontinued operations, net of tax
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15,240 | 12,513 | 2,727 | 21.8 | % | |||||||||||
Net earnings (loss)
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8,274 | (4,992 | ) | 13,266 | 265.7 | % | ||||||||||
Basic earnings (loss) per share:
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||||||||||||||||
Net loss from continuing operations
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(0.09 | ) | (0.23 | ) | 0.14 | 60.7 | % | |||||||||
Net earnings from discontinued operations
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0.20 | 0.16 | 0.03 | 20.4 | % | |||||||||||
Net earnings (loss)
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0.11 | (0.06 | ) | 0.17 | 263.8 | % | ||||||||||
Diluted earnings (loss) per share:
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||||||||||||||||
Net loss from continuing operations
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(0.09 | ) | (0.23 | ) | 0.14 | 60.7 | % | |||||||||
Net earnings from discontinued operations
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0.20 | 0.16 | 0.03 | 20.4 | % | |||||||||||
Net earnings (loss)
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0.11 | (0.06 | ) | 0.17 | 263.8 | % | ||||||||||
Some earnings (loss) per share amounts may not add due to rounding
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||||||||||||||||
Basic shares
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77,903 | 76,998 | ||||||||||||||
FDWA shares
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79,336 | 78,317 | ||||||||||||||
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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For the Nine Months Ended
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December 31,
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December 31,
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|||||||||||||||
2015
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2014
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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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(2,019 | ) | (4,260 | ) | (10,422 | ) | (27,827 | ) | ||||||||
Income taxes
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(1,580 | ) | (4,597 | ) | (3,456 | ) | (10,322 | ) | ||||||||
Net loss from continuing operations
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(439 | ) | 337 | (6,966 | ) | (17,505 | ) | |||||||||
Earnings from discontinued operations, net of tax
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(971 | ) | 3,819 | 15,240 | 12,513 | |||||||||||
Net earnings (loss)
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(1,410 | ) | 4,156 | 8,274 | (4,992 | ) | ||||||||||
Earnings (loss) per share:
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||||||||||||||||
Basic
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(0.02 | ) | 0.05 | 0.11 | (0.06 | ) | ||||||||||
Diluted
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(0.02 | ) | 0.05 | 0.11 | (0.06 | ) | ||||||||||
Excluded items:
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Purchased intangible asset amortization (cost of revenue)
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3,754 | 3,783 | 11,262 | 7,673 | ||||||||||||
Non-cash stock compensation (cost of revenue and operating expenses)
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8,046 | 8,450 | 23,529 | 20,100 | ||||||||||||
Restructuring charges and other adjustments (gains, losses, and other)
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4,058 | 3,381 | 8,098 | 11,342 | ||||||||||||
Separation and transformation costs (general and administrative)
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6,628 | 7,417 | 16,140 | 26,246 | ||||||||||||
Accelerated amortization (cost of revenue)
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78 | - | 1,598 | - | ||||||||||||
Total excluded items, continuing operations
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22,564 | 23,031 | 60,627 | 65,361 | ||||||||||||
Earnings from continuing operations before income taxes
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||||||||||||||||
and excluding items
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20,545 | 18,771 | 50,205 | 37,534 | ||||||||||||
Income taxes
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6,399 | 5,755 | 17,194 | 13,029 | ||||||||||||
Non-GAAP net earnings
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14,146 | 13,016 | 33,011 | 24,505 | ||||||||||||
Non-GAAP earnings per share:
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Basic
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0.18 | 0.17 | 0.42 | 0.32 | ||||||||||||
Diluted
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0.18 | 0.17 | 0.42 | 0.31 | ||||||||||||
Basic weighted average shares
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77,831 | 77,039 | 77,903 | 76,998 | ||||||||||||
Diluted weighted average shares
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79,346 | 78,302 | 79,336 | 78,317 | ||||||||||||
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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December 31,
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December 31,
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2015
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2014
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Basic earnings per share from continuing operations:
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Numerator - net earnings (loss)
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(439 | ) | 337 | |||||
Denominator - weighted-average shares outstanding
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77,831 | 77,039 | ||||||
Basic earnings (loss) per share
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(0.01 | ) | 0.00 | |||||
Diluted earnings per share from continuing operations:
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||||||||
Numerator - net earnings (loss)
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(439 | ) | 337 | |||||
Denominator - weighted-average shares outstanding
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77,831 | 77,039 | ||||||
Dilutive effect of common stock options, warrants and restricted stock
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- | 1,263 | ||||||
77,831 | 78,302 | |||||||
Diluted earnings (loss) per share
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(0.01 | ) | 0.00 | |||||
Basic earnings (loss) per share from discontinued operations:
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||||||||
Numerator - net earnings (loss)
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(971 | ) | 3,819 | |||||
Denominator - weighted-average shares outstanding
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77,831 | 77,039 | ||||||
Basic earnings (loss) per share
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(0.01 | ) | 0.05 | |||||
Diluted earnings (loss) per share from discontinued operations:
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||||||||
Numerator - net earnings (loss)
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(971 | ) | 3,819 | |||||
Denominator - weighted-average shares outstanding
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77,831 | 77,039 | ||||||
Dilutive effect of common stock options, warrants and restricted stock
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- | 1,263 | ||||||
77,831 | 78,302 | |||||||
Diluted earnings (loss) per share
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(0.01 | ) | 0.05 | |||||
Basic earnings (loss) per share:
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||||||||
Numerator - net earnings (loss)
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(1,410 | ) | 4,156 | |||||
Denominator - weighted-average shares outstanding
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77,831 | 77,039 | ||||||
Basic earnings (loss) per share
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(0.02 | ) | 0.05 | |||||
Diluted earnings (loss) per share:
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||||||||
Numerator - net earnings (loss)
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(1,410 | ) | 4,156 | |||||
Denominator - weighted-average shares outstanding
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77,831 | 77,039 | ||||||
Dilutive effect of common stock options, warrants, and restricted stock
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- | 1,263 | ||||||
77,831 | 78,302 | |||||||
Diluted earnings (loss) per share
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(0.02 | ) | 0.05 | |||||
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 Nine Months Ended
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December 31,
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December 31,
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|||||||
2015
|
2014
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|||||||
Basic loss per share from continuing operations:
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||||||||
Numerator - net loss
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(6,966 | ) | (17,505 | ) | ||||
Denominator - weighted-average shares outstanding
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77,903 | 76,998 | ||||||
Basic loss per share
|
(0.09 | ) | (0.23 | ) | ||||
Diluted loss per share from continuing operations:
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||||||||
Numerator - net loss
|
(6,966 | ) | (17,505 | ) | ||||
Denominator - weighted-average shares outstanding
|
77,903 | 76,998 | ||||||
Diluted loss per share
|
(0.09 | ) | (0.23 | ) | ||||
Basic earnings per share from discontinued operations:
|
||||||||
Numerator - net earnings
|
15,240 | 12,513 | ||||||
Denominator - weighted-average shares outstanding
|
77,903 | 76,998 | ||||||
Basic earnings per share
|
0.20 | 0.16 | ||||||
Diluted earnings per share from discontinued operations:
|
||||||||
Numerator - net earnings
|
15,240 | 12,513 | ||||||
Denominator - weighted-average shares outstanding
|
77,903 | 76,998 | ||||||
Diluted earnings per share
|
0.20 | 0.16 | ||||||
Diluted loss per share:
|
||||||||
Numerator - net earnings (loss)
|
8,274 | (4,992 | ) | |||||
Denominator - weighted-average shares outstanding
|
77,903 | 76,998 | ||||||
Diluted earnings (loss) per share
|
0.11 | (0.06 | ) | |||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||
RESULTS BY SEGMENT
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||||||||||||||||
(Unaudited)
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||||||||||||||||
(Dollars in thousands)
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||||||||||||||||
For the Three Months Ended
|
||||||||||||||||
December 31,
|
||||||||||||||||
$ | % | |||||||||||||||
2015
|
2014
|
Variance
|
Variance
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|||||||||||||
Revenues
|
||||||||||||||||
Marketing Services
|
115,725 | 114,403 | 1,322 | 1.2 | % | |||||||||||
Audience Solutions
|
77,046 | 75,933 | 1,113 | 1.5 | % | |||||||||||
Connectivity
|
28,422 | 17,910 | 10,512 | 58.7 | % | |||||||||||
Total operating segment revenues
|
221,193 | 208,246 | 12,947 | 6.2 | % | |||||||||||
Gross profit
|
||||||||||||||||
Marketing Services
|
38,561 | 41,572 | (3,011 | ) | (7.2 | %) | ||||||||||
Audience Solutions
|
45,265 | 39,215 | 6,050 | 15.4 | % | |||||||||||
Connectivity
|
16,130 | 5,858 | 10,272 | 175.3 | % | |||||||||||
Total operating segment gross profit
|
99,956 | 86,645 | 13,311 | 15.4 | % | |||||||||||
Gross profit margin %
|
||||||||||||||||
Marketing Services
|
33.3 | % | 36.3 | % | ||||||||||||
Audience Solutions
|
58.8 | % | 51.6 | % | ||||||||||||
Connectivity
|
56.8 | % | 32.7 | % | ||||||||||||
Total operating segment gross margin
|
45.2 | % | 41.6 | % | ||||||||||||
Income (loss) from operations
|
||||||||||||||||
Marketing Services
|
20,309 | 21,859 | (1,550 | ) | (7.1 | %) | ||||||||||
Audience Solutions
|
30,723 | 28,919 | 1,804 | 6.2 | % | |||||||||||
Connectivity
|
(1,015 | ) | (7,802 | ) | 6,787 | 87.0 | % | |||||||||
Total operating segment income from operations
|
50,017 | 42,976 | 7,041 | 16.4 | % | |||||||||||
Operating income (loss) margin %
|
||||||||||||||||
Marketing Services
|
17.5 | % | 19.1 | % | ||||||||||||
Audience Solutions
|
39.9 | % | 38.1 | % | ||||||||||||
Connectivity
|
-3.6 | % | -43.6 | % | ||||||||||||
Total operating segment operating margin
|
22.6 | % | 20.6 | % | ||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||
RESULTS BY SEGMENT
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
For the Nine Months Ended
|
||||||||||||||||
December 31,
|
||||||||||||||||
$ | % | |||||||||||||||
2015
|
2014
|
Variance
|
Variance
|
|||||||||||||
Revenues
|
||||||||||||||||
Marketing Services
|
336,430 | 336,441 | (11 | ) | (0.0 | %) | ||||||||||
Audience Solutions
|
217,718 | 227,020 | (9,302 | ) | (4.1 | %) | ||||||||||
Connectivity
|
71,285 | 35,716 | 35,569 | 99.6 | % | |||||||||||
Total operating segment revenues
|
625,433 | 599,177 | 26,256 | 4.4 | % | |||||||||||
Gross profit
|
||||||||||||||||
Marketing Services
|
112,139 | 120,275 | (8,136 | ) | (6.8 | %) | ||||||||||
Audience Solutions
|
121,258 | 116,245 | 5,013 | 4.3 | % | |||||||||||
Connectivity
|
41,582 | 5,088 | 36,494 | 717.3 | % | |||||||||||
Total operating segment gross profit
|
274,979 | 241,608 | 33,371 | 13.8 | % | |||||||||||
Gross profit margin %
|
||||||||||||||||
Marketing Services
|
33.3 | % | 35.7 | % | ||||||||||||
Audience Solutions
|
55.7 | % | 51.2 | % | ||||||||||||
Connectivity
|
58.3 | % | 14.2 | % | ||||||||||||
Total operating segment gross margin
|
44.0 | % | 40.3 | % | ||||||||||||
Income (loss) from operations
|
||||||||||||||||
Marketing Services
|
55,070 | 63,263 | (8,193 | ) | (13.0 | %) | ||||||||||
Audience Solutions
|
80,000 | 84,484 | (4,484 | ) | (5.3 | %) | ||||||||||
Connectivity
|
(2,874 | ) | (34,043 | ) | 31,169 | 91.6 | % | |||||||||
Total operating segment income from operations
|
132,196 | 113,704 | 18,492 | 16.3 | % | |||||||||||
Operating income (loss) margin %
|
||||||||||||||||
Marketing Services
|
16.4 | % | 18.8 | % | ||||||||||||
Audience Solutions
|
36.7 | % | 37.2 | % | ||||||||||||
Connectivity
|
-4.0 | % | -95.3 | % | ||||||||||||
Total operating segment operating margin
|
21.1 | % | 19.0 | % | ||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||
RECONCILIATION OF SEGMENT RESULTS
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Total operating segment gross profit
|
99,956 | 86,645 | 274,979 | 241,608 | ||||||||||||
Less:
|
||||||||||||||||
Purchased intangible asset amortization
|
3,754 | 3,783 | 11,262 | 7,673 | ||||||||||||
Non-cash stock compensation
|
666 | 423 | 1,442 | 1,087 | ||||||||||||
Accelerated amortization
|
78 | - | 1,598 | - | ||||||||||||
Gross profit
|
95,458 | 82,439 | 260,677 | 232,848 | ||||||||||||
Total operating segment income from operations
|
50,017 | 42,976 | 132,196 | 113,704 | ||||||||||||
Less:
|
||||||||||||||||
Corporate expenses
|
27,827 | 22,235 | 76,868 | 70,162 | ||||||||||||
Purchased intangible asset amortization
|
3,754 | 3,783 | 11,262 | 7,673 | ||||||||||||
Non-cash stock compensation
|
8,046 | 8,450 | 23,529 | 20,100 | ||||||||||||
Gains, losses and other items, net
|
4,058 | 3,381 | 8,098 | 11,342 | ||||||||||||
Separation and transformation costs
|
6,628 | 7,417 | 16,140 | 26,246 | ||||||||||||
Accelerated amortization
|
78 | - | 1,598 | - | ||||||||||||
Loss from operations
|
(374 | ) | (2,290 | ) | (5,299 | ) | (21,819 | ) | ||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
December 31,
|
March 31,
|
$ | % | |||||||||||||
2015
|
2015
|
Variance
|
Variance
|
|||||||||||||
Assets
|
||||||||||||||||
Current assets:
|
||||||||||||||||
Cash and cash equivalents
|
186,390 | 141,010 | 45,380 | 32.2 | % | |||||||||||
Trade accounts receivable, net
|
140,821 | 126,896 | 13,925 | 11.0 | % | |||||||||||
Deferred income taxes
|
16,475 | 25,610 | (9,135 | ) | (35.7 | %) | ||||||||||
Refundable income taxes
|
6,899 | 5,239 | 1,660 | 31.7 | % | |||||||||||
Restricted cash held in escrow
|
- | 31,000 | (31,000 | ) | (100.0 | %) | ||||||||||
Other current assets
|
35,918 | 34,975 | 943 | 2.7 | % | |||||||||||
Assets of discontinued operations
|
- | 172,284 | (172,284 | ) | (100.0 | %) | ||||||||||
Total current assets
|
386,503 | 537,014 | (150,511 | ) | (28.0 | %) | ||||||||||
Property and equipment
|
520,262 | 505,721 | 14,541 | 2.9 | % | |||||||||||
Less - accumulated depreciation and amortization
|
341,868 | 329,467 | 12,401 | 3.8 | % | |||||||||||
Property and equipment, net
|
178,394 | 176,254 | 2,140 | 1.2 | % | |||||||||||
Software, net of accumulated amortization
|
58,947 | 68,962 | (10,015 | ) | (14.5 | %) | ||||||||||
Goodwill
|
497,628 | 497,362 | 266 | 0.1 | % | |||||||||||
Purchased software licenses, net of accumulated amortization
|
10,043 | 9,551 | 492 | 5.2 | % | |||||||||||
Other assets, net
|
30,049 | 33,281 | (3,232 | ) | (9.7 | %) | ||||||||||
1,161,564 | 1,322,424 | (160,860 | ) | (12.2 | %) | |||||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||
Current liabilities:
|
||||||||||||||||
Current installments of long-term debt
|
32,223 | 32,232 | (9 | ) | (0.0 | %) | ||||||||||
Trade accounts payable
|
30,690 | 30,094 | 596 | 2.0 | % | |||||||||||
Accrued payroll and related expenses
|
46,662 | 36,659 | 10,003 | 27.3 | % | |||||||||||
Other accrued expenses
|
49,705 | 62,754 | (13,049 | ) | (20.8 | %) | ||||||||||
Acquisition escrow payable
|
- | 31,000 | (31,000 | ) | (100.0 | %) | ||||||||||
Deferred revenue
|
42,681 | 33,620 | 9,061 | 27.0 | % | |||||||||||
Liabilities of discontinued operations
|
4,065 | 57,433 | (53,368 | ) | (92.9 | %) | ||||||||||
Total current liabilities
|
206,026 | 283,792 | (77,766 | ) | (27.4 | %) | ||||||||||
Long-term debt
|
168,681 | 247,855 | (79,174 | ) | (31.9 | %) | ||||||||||
Deferred income taxes
|
66,709 | 80,675 | (13,966 | ) | (17.3 | %) | ||||||||||
Other liabilities
|
15,705 | 6,845 | 8,860 | 129.4 | % | |||||||||||
Stockholders' equity:
|
||||||||||||||||
Common stock
|
12,988 | 12,794 | 194 | 1.5 | % | |||||||||||
Additional paid-in capital
|
1,071,145 | 1,034,526 | 36,619 | 3.5 | % | |||||||||||
Retained earnings
|
600,072 | 591,798 | 8,274 | 1.4 | % | |||||||||||
Accumulated other comprehensive income
|
8,141 | 9,413 | (1,272 | ) | (13.5 | %) | ||||||||||
Treasury stock, at cost
|
(987,903 | ) | (945,274 | ) | (42,629 | ) | (4.5 | %) | ||||||||
Total stockholders' equity
|
704,443 | 703,257 | 1,186 | 0.2 | % | |||||||||||
1,161,564 | 1,322,424 | (160,860 | ) | (12.2 | %) | |||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
(Dollars in thousands)
|
||||||||
For the Three Months Ended
|
||||||||
December 31,
|
||||||||
2015
|
2014
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings (loss)
|
(1,410 | ) | 4,156 | |||||
Loss (earnings) from discontinued operations, net of tax
|
971 | (3,819 | ) | |||||
Non-cash operating activities:
|
||||||||
Depreciation and amortization
|
20,811 | 20,510 | ||||||
Loss (gain) on disposal or impairment of assets
|
48 | (68 | ) | |||||
Deferred income taxes
|
(5,140 | ) | 4,002 | |||||
Non-cash stock compensation expense
|
8,046 | 8,450 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(5,957 | ) | (978 | ) | ||||
Other assets
|
(622 | ) | (4,064 | ) | ||||
Accounts payable and other liabilities
|
13,518 | 1,411 | ||||||
Deferred revenue
|
6,753 | 3,290 | ||||||
Net cash provided by operating activities
|
37,018 | 32,890 | ||||||
Cash flows from investing activities:
|
||||||||
Capitalized software
|
(3,627 | ) | (4,408 | ) | ||||
Capital expenditures
|
(10,702 | ) | (10,212 | ) | ||||
Data acquisition costs
|
(424 | ) | (394 | ) | ||||
Net cash paid in acquisitions
|
(5,386 | ) | - | |||||
Net cash used in investing activities
|
(20,139 | ) | (15,014 | ) | ||||
Cash flows from financing activities:
|
||||||||
Payments of debt
|
(8,045 | ) | (8,498 | ) | ||||
Sale of common stock, net of stock acquired for withholding taxes
|
2,241 | 1,680 | ||||||
Excess tax benefits from stock-based compensation
|
2,574 | - | ||||||
Acquisition of treasury stock
|
(10,274 | ) | - | |||||
Net cash used in financing activities
|
(13,504 | ) | (6,818 | ) | ||||
Cash flows from discontinued operations:
|
||||||||
From operating activities
|
562 | 9,916 | ||||||
From investing activities
|
1,675 | (2,920 | ) | |||||
From financing activities
|
- | (459 | ) | |||||
Net cash provided by discontinued operations
|
2,237 | 6,537 | ||||||
Effect of exchange rate changes on cash
|
(167 | ) | (512 | ) | ||||
Net change in cash and cash equivalents
|
5,445 | 17,083 | ||||||
Cash and cash equivalents at beginning of period
|
180,945 | 109,808 | ||||||
Cash and cash equivalents at end of period
|
186,390 | 126,891 | ||||||
Supplemental cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
1,883 | 809 | ||||||
Income taxes
|
738 | 182 | ||||||
Payments on capital leases and installment payment arrangements
|
- | 930 | ||||||
Other debt payments, excluding line of credit
|
8,045 | 8,027 | ||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
(Dollars in thousands)
|
||||||||
For the Nine Months Ended
|
||||||||
December 31,
|
||||||||
2015
|
2014
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings (loss)
|
8,274 | (4,992 | ) | |||||
Earnings from discontinued operations, net of tax
|
(15,240 | ) | (12,513 | ) | ||||
Non-cash operating activities:
|
||||||||
Depreciation and amortization
|
63,221 | 54,687 | ||||||
Loss (gain) on disposal and impairment of goodwill and other assets
|
938 | (275 | ) | |||||
Deferred income taxes
|
(4,856 | ) | (2,020 | ) | ||||
Non-cash stock compensation expense
|
23,529 | 20,100 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(15,238 | ) | 9,573 | |||||
Other assets
|
(1,820 | ) | 1,409 | |||||
Deferred costs
|
(823 | ) | (316 | ) | ||||
Accounts payable and other liabilities
|
3,182 | (26,679 | ) | |||||
Deferred revenue
|
9,205 | (7,215 | ) | |||||
Net cash provided by operating activities
|
70,372 | 31,759 | ||||||
Cash flows from investing activities:
|
||||||||
Capitalized software
|
(10,360 | ) | (14,985 | ) | ||||
Capital expenditures
|
(33,822 | ) | (42,352 | ) | ||||
Data acquisition costs
|
(1,135 | ) | (1,497 | ) | ||||
Net cash paid in acquisitions
|
(5,386 | ) | (265,672 | ) | ||||
Net cash used in investing activities
|
(50,703 | ) | (324,506 | ) | ||||
Cash flows from financing activities:
|
||||||||
Payments of debt
|
(79,183 | ) | (18,254 | ) | ||||
Sale of common stock, net of stock acquired for withholding taxes
|
6,343 | (807 | ) | |||||
Excess tax benefits from stock-based compensation
|
2,022 | - | ||||||
Acquisition of treasury stock
|
(37,535 | ) | (9,868 | ) | ||||
Net cash used in financing activities
|
(108,353 | ) | (28,929 | ) | ||||
Cash flows from discontinued operations:
|
||||||||
From operating activities
|
10,277 | 38,773 | ||||||
From investing activities
|
124,506 | (6,250 | ) | |||||
From financing activities
|
(206 | ) | (1,561 | ) | ||||
Net cash provided by discontinued operations
|
134,577 | 30,962 | ||||||
Effect of exchange rate changes on cash
|
(513 | ) | (981 | ) | ||||
Net change in cash and cash equivalents
|
45,380 | (291,695 | ) | |||||
Cash and cash equivalents at beginning of period
|
141,010 | 418,586 | ||||||
Cash and cash equivalents at end of period
|
186,390 | 126,891 | ||||||
Supplemental cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
6,220 | 6,200 | ||||||
Income taxes
|
6,004 | 538 | ||||||
Payments on capital leases and installment payment arrangements
|
269 | 3,249 | ||||||
Other debt payments, excluding line of credit
|
24,120 | 16,566 | ||||||
Prepayment of debt
|
55,000 | - | ||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||||
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
|
||||||||||||||||||||||||||||||||||||
AND RECONCILIATION TO OPERATING CASH FLOW
|
||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
06/30/14
|
09/30/14
|
12/31/14
|
03/31/15
|
YTD FY2015
|
06/30/15
|
09/30/15
|
12/31/15
|
YTD FY2016
|
||||||||||||||||||||||||||||
Net cash provided by operating activities - continuing operations
|
(15,456 | ) | 14,325 | 32,890 | 29,372 | 61,131 | 11,997 | 21,357 | 37,018 | 70,372 | ||||||||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||
Capitalized software
|
(4,969 | ) | (5,608 | ) | (4,408 | ) | (3,602 | ) | (18,587 | ) | (2,797 | ) | (3,936 | ) | (3,627 | ) | (10,360 | ) | ||||||||||||||||||
Capital expenditures
|
(16,778 | ) | (15,362 | ) | (10,212 | ) | (14,600 | ) | (56,952 | ) | (12,876 | ) | (10,244 | ) | (10,702 | ) | (33,822 | ) | ||||||||||||||||||
Data acquisition costs
|
(635 | ) | (468 | ) | (394 | ) | (374 | ) | (1,871 | ) | (430 | ) | (281 | ) | (424 | ) | (1,135 | ) | ||||||||||||||||||
Payments on capital leases and installment payment arrangements
|
(650 | ) | (567 | ) | (471 | ) | (315 | ) | (2,003 | ) | (63 | ) | - | - | (63 | ) | ||||||||||||||||||||
Other required debt payments
|
(4,267 | ) | (4,272 | ) | (8,027 | ) | (8,032 | ) | (24,598 | ) | (8,036 | ) | (8,039 | ) | (8,045 | ) | (24,120 | ) | ||||||||||||||||||
Total
|
(42,755 | ) | (11,952 | ) | 9,378 | 2,449 | (42,880 | ) | (12,205 | ) | (1,143 | ) | 14,220 | 872 | ||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS-GAAP
|
||||||||||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except earnings per share)
|
||||||||||||||||||||||||||||||||||||||||||||
Q3 FY16 to Q3 FY15
|
||||||||||||||||||||||||||||||||||||||||||||
06/30/14
|
09/30/14
|
12/31/14
|
03/31/15
|
YTD FY2015
|
06/30/15
|
09/30/15
|
12/31/15
|
YTD FY2016
|
%
|
$ | ||||||||||||||||||||||||||||||||||
Revenues
|
186,683 | 204,248 | 208,246 | 205,734 | 804,911 | 196,895 | 207,345 | 221,193 | 625,433 | 6.2 | % | 12,947 | ||||||||||||||||||||||||||||||||
Cost of revenue
|
115,564 | 124,958 | 125,807 | 127,708 | 494,037 | 117,709 | 121,312 | 125,735 | 364,756 | -0.1 | % | (72 | ) | |||||||||||||||||||||||||||||||
Gross profit
|
71,119 | 79,290 | 82,439 | 78,026 | 310,874 | 79,186 | 86,033 | 95,458 | 260,677 | 15.8 | % | 13,019 | ||||||||||||||||||||||||||||||||
% Gross margin
|
38.1 | % | 38.8 | % | 39.6 | % | 37.9 | % | 38.6 | % | 40.2 | % | 41.5 | % | 43.2 | % | 41.7 | % | ||||||||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||||||||||||||||||||||
Research and development
|
16,350 | 19,798 | 18,973 | 19,080 | 74,201 | 20,011 | 19,078 | 18,400 | 57,489 | -3.0 | % | (573 | ) | |||||||||||||||||||||||||||||||
Sales and marketing
|
26,265 | 28,591 | 30,554 | 31,084 | 116,494 | 29,494 | 34,259 | 36,581 | 100,334 | 19.7 | % | 6,027 | ||||||||||||||||||||||||||||||||
General and administrative
|
34,462 | 36,511 | 31,821 | 27,469 | 130,263 | 31,743 | 31,519 | 36,793 | 100,055 | 15.6 | % | 4,972 | ||||||||||||||||||||||||||||||||
Gains, losses and other items, net
|
7,128 | 833 | 3,381 | 11,258 | 22,600 | 807 | 3,233 | 4,058 | 8,098 | 20.0 | % | 677 | ||||||||||||||||||||||||||||||||
Total operating expenses
|
84,205 | 85,733 | 84,729 | 88,891 | 343,558 | 82,055 | 88,089 | 95,832 | 265,976 | 13.1 | % | 11,103 | ||||||||||||||||||||||||||||||||
Loss from operations
|
(13,086 | ) | (6,443 | ) | (2,290 | ) | (10,865 | ) | (32,684 | ) | (2,869 | ) | (2,056 | ) | (374 | ) | (5,299 | ) | 83.7 | % | 1,916 | |||||||||||||||||||||||
% Margin
|
-7.0 | % | -3.2 | % | -1.1 | % | -5.3 | % | -4.1 | % | -1.5 | % | -1.0 | % | -0.2 | % | -0.8 | % | ||||||||||||||||||||||||||
Other income (expense)
|
||||||||||||||||||||||||||||||||||||||||||||
Interest expense
|
(1,948 | ) | (1,821 | ) | (2,005 | ) | (1,898 | ) | (7,672 | ) | (1,885 | ) | (1,956 | ) | (1,948 | ) | (5,789 | ) | 2.8 | % | 57 | |||||||||||||||||||||||
Other, net
|
(106 | ) | (163 | ) | 35 | (757 | ) | (991 | ) | 304 | 59 | 303 | 666 | 765.7 | % | 268 | ||||||||||||||||||||||||||||
Total other expense
|
(2,054 | ) | (1,984 | ) | (1,970 | ) | (2,655 | ) | (8,663 | ) | (1,581 | ) | (1,897 | ) | (1,645 | ) | (5,123 | ) | 16.5 | % | 325 | |||||||||||||||||||||||
Loss from continuing operations before income taxes
|
(15,140 | ) | (8,427 | ) | (4,260 | ) | (13,520 | ) | (41,347 | ) | (4,450 | ) | (3,953 | ) | (2,019 | ) | (10,422 | ) | 52.6 | % | 2,241 | |||||||||||||||||||||||
Income taxes
|
(4,399 | ) | (1,326 | ) | (4,597 | ) | (4,483 | ) | (14,805 | ) | 732 | (2,608 | ) | (1,580 | ) | (3,456 | ) | 65.6 | % | 3,017 | ||||||||||||||||||||||||
Net earnings (loss) from continuing operations
|
(10,741 | ) | (7,101 | ) | 337 | (9,037 | ) | (26,542 | ) | (5,182 | ) | (1,345 | ) | (439 | ) | (6,966 | ) | -230.3 | % | (776 | ) | |||||||||||||||||||||||
Earnings from discontinued operations, net of tax
|
3,137 | 5,557 | 3,819 | 2,998 | 15,511 | 4,143 | 12,068 | (971 | ) | 15,240 | -125.4 | % | (4,790 | ) | ||||||||||||||||||||||||||||||
Net earnings (loss)
|
(7,604 | ) | (1,544 | ) | 4,156 | (6,039 | ) | (11,031 | ) | (1,039 | ) | 10,723 | (1,410 | ) | 8,274 | -133.9 | % | (5,566 | ) | |||||||||||||||||||||||||
Diluted earnings (loss) per share
|
(0.10 | ) | (0.02 | ) | 0.05 | (0.08 | ) | (0.14 | ) | (0.01 | ) | 0.14 | (0.02 | ) | 0.11 | -134.1 | % | (0.07 | ) | |||||||||||||||||||||||||
Diluted earnings (loss) per share continuing operations
|
(0.14 | ) | (0.09 | ) | 0.00 | (0.12 | ) | (0.34 | ) | (0.07 | ) | (0.02 | ) | (0.01 | ) | (0.09 | ) | -231.1 | % | (0.01 | ) | |||||||||||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
|
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CONSOLIDATED STATEMENTS OF OPERATIONS-NON GAAP
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(Unaudited)
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(Dollars in thousands, except earnings per share)
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Q3 FY16 to Q3 FY15
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06/30/14
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09/30/14
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12/31/14
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03/31/15
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YTD FY2015
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06/30/15
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09/30/15
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12/31/15
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YTD FY2016
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%
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$ | ||||||||||||||||||||||||||||||||||
Revenues
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186,683 | 204,248 | 208,246 | 205,734 | 804,911 | 196,895 | 207,345 | 221,193 | 625,433 | 6.2 | % | 12,947 | ||||||||||||||||||||||||||||||||
Cost of revenue
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115,197 | 120,771 | 121,601 | 119,239 | 476,808 | 112,084 | 117,131 | 121,237 | 350,452 | -0.3 | % | (364 | ) | |||||||||||||||||||||||||||||||
Gross profit
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71,486 | 83,477 | 86,645 | 86,495 | 328,103 | 84,811 | 90,214 | 99,956 | 274,981 | 15.4 | % | 13,311 | ||||||||||||||||||||||||||||||||
% Gross margin
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38.3 | % | 40.9 | % | 41.6 | % | 42.0 | % | 40.8 | % | 43.1 | % | 43.5 | % | 45.2 | % | 44.0 | % | ||||||||||||||||||||||||||
Operating expenses
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Research and development
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15,911 | 16,529 | 15,559 | 15,956 | 63,955 | 16,384 | 15,400 | 15,647 | 47,431 | 0.6 | % | 88 | ||||||||||||||||||||||||||||||||
Sales and marketing
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25,619 | 26,789 | 28,498 | 28,915 | 109,821 | 28,170 | 32,945 | 34,664 | 95,779 | 21.6 | % | 6,166 | ||||||||||||||||||||||||||||||||
General and administrative
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21,388 | 25,926 | 21,847 | 19,895 | 89,056 | 25,586 | 23,402 | 27,455 | 76,443 | 25.7 | % | 5,608 | ||||||||||||||||||||||||||||||||
Gains, losses and other items, net
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- | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Total operating expenses
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62,918 | 69,244 | 65,904 | 64,766 | 262,832 | 70,140 | 71,747 | 77,766 | 219,653 | 18.0 | % | 11,862 | ||||||||||||||||||||||||||||||||
Income from operations
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8,568 | 14,233 | 20,741 | 21,729 | 65,271 | 14,671 | 18,467 | 22,190 | 55,328 | 7.0 | % | 1,449 | ||||||||||||||||||||||||||||||||
% Margin
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4.6 | % | 7.0 | % | 10.0 | % | 10.6 | % | 8.1 | % | 7.5 | % | 8.9 | % | 10.0 | % | 8.8 | % | ||||||||||||||||||||||||||
Other income (expense)
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Interest expense
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(1,948 | ) | (1,821 | ) | (2,005 | ) | (1,898 | ) | (7,672 | ) | (1,885 | ) | (1,956 | ) | (1,948 | ) | (5,789 | ) | 2.8 | % | 57 | |||||||||||||||||||||||
Other, net
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(106 | ) | (163 | ) | 35 | (757 | ) | (991 | ) | 304 | 59 | 303 | 666 | 765.7 | % | 268 | ||||||||||||||||||||||||||||
Total other expense
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(2,054 | ) | (1,984 | ) | (1,970 | ) | (2,655 | ) | (8,663 | ) | (1,581 | ) | (1,897 | ) | (1,645 | ) | (5,123 | ) | 16.5 | % | 325 | |||||||||||||||||||||||
Earnings from continuing operations before income taxes
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6,514 | 12,249 | 18,771 | 19,074 | 56,608 | 13,090 | 16,570 | 20,545 | 50,205 | 9.5 | % | 1,774 | ||||||||||||||||||||||||||||||||
Income taxes
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2,517 | 4,757 | 5,755 | 5,324 | 18,353 | 5,632 | 5,163 | 6,399 | 17,194 | 11.2 | % | 644 | ||||||||||||||||||||||||||||||||
Net earnings from continuing operations
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3,997 | 7,492 | 13,016 | 13,750 | 38,255 | 7,458 | 11,407 | 14,146 | 33,011 | 8.7 | % | 1,130 | ||||||||||||||||||||||||||||||||
Earnings from discontinued operations, net of tax
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- | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Net earnings
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3,997 | 7,492 | 13,016 | 13,750 | 38,255 | 7,458 | 11,407 | 14,146 | 33,011 | 8.7 | % | 1,130 | ||||||||||||||||||||||||||||||||
Diluted earnings per share
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0.05 | 0.10 | 0.17 | 0.17 | 0.49 | 0.09 | 0.14 | 0.18 | 0.42 | 7.3 | % | 0.01 | ||||||||||||||||||||||||||||||||
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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06/30/14
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09/30/14
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12/31/14
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03/31/15
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FY2015
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06/30/15
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09/30/15
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12/31/15
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YTD FY2016
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Loss from continuing operations before income taxes
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(15,140 | ) | (8,427 | ) | (4,260 | ) | (13,520 | ) | (41,347 | ) | (4,450 | ) | (3,953 | ) | (2,019 | ) | (10,422 | ) | ||||||||||||||||||
Income taxes
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(4,399 | ) | (1,326 | ) | (4,597 | ) | (4,483 | ) | (14,805 | ) | 732 | (2,608 | ) | (1,580 | ) | (3,456 | ) | |||||||||||||||||||
Net earnings (loss) from continuing operations
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(10,741 | ) | (7,101 | ) | 337 | (9,037 | ) | (26,542 | ) | (5,182 | ) | (1,345 | ) | (439 | ) | (6,966 | ) | |||||||||||||||||||
Earnings loss from discontinued operations, net of tax
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3,137 | 5,557 | 3,819 | 2,998 | 15,511 | 4,143 | 12,068 | (971 | ) | 15,240 | ||||||||||||||||||||||||||
Net earnings (loss)
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(7,604 | ) | (1,544 | ) | 4,156 | (6,039 | ) | (11,031 | ) | (1,039 | ) | 10,723 | (1,410 | ) | 8,274 | |||||||||||||||||||||
Earnings (loss) per share:
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Basic
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(0.10 | ) | (0.02 | ) | 0.05 | (0.08 | ) | (0.14 | ) | (0.01 | ) | 0.14 | (0.02 | ) | 0.11 | |||||||||||||||||||||
Diluted
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(0.10 | ) | (0.02 | ) | 0.05 | (0.08 | ) | (0.14 | ) | (0.01 | ) | 0.14 | (0.02 | ) | 0.11 | |||||||||||||||||||||
Unusual items:
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Purchased intangible asset amortization (cost of revenue)
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63 | 3,827 | 3,783 | 3,781 | 11,454 | 3,754 | 3,754 | 3,754 | 11,262 | |||||||||||||||||||||||||||
Non-cash stock compensation (cost of revenue and operating expenses)
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3,925 | 7,725 | 8,450 | 8,216 | 28,316 | 8,123 | 7,360 | 8,046 | 23,529 | |||||||||||||||||||||||||||
Restructuring charges and other adjustments (gains, losses, and other)
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7,128 | 833 | 3,381 | 11,258 | 22,600 | 807 | 3,233 | 4,058 | 8,098 | |||||||||||||||||||||||||||
Separation and transformation costs (general and administrative)
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10,538 | 8,291 | 7,417 | 5,023 | 31,269 | 3,414 | 6,098 | 6,628 | 16,140 | |||||||||||||||||||||||||||
Accelerated amortization (cost of revenue)
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- | - | - | 4,316 | 4,316 | 1,442 | 78 | 78 | 1,598 | |||||||||||||||||||||||||||
Total unusual items, continuing operations
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21,654 | 20,676 | 23,031 | 32,594 | 97,955 | 17,540 | 20,523 | 22,564 | 60,627 | |||||||||||||||||||||||||||
Earnings from continuing operations before income taxes
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and excluding unusual items
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6,514 | 12,249 | 18,771 | 19,074 | 56,608 | 13,090 | 16,570 | 20,545 | 50,205 | |||||||||||||||||||||||||||
Income taxes
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2,517 | 4,757 | 5,755 | 5,324 | 18,353 | 5,632 | 5,163 | 6,399 | 17,194 | |||||||||||||||||||||||||||
Non-GAAP net earnings
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3,997 | 7,492 | 13,016 | 13,750 | 38,255 | 7,458 | 11,407 | 14,146 | 33,011 | |||||||||||||||||||||||||||
Non-GAAP earnings per share:
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Basic
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0.05 | 0.10 | 0.17 | 0.18 | 0.50 | 0.10 | 0.15 | 0.18 | 0.42 | |||||||||||||||||||||||||||
Diluted
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0.05 | 0.10 | 0.17 | 0.17 | 0.49 | 0.09 | 0.14 | 0.18 | 0.42 | |||||||||||||||||||||||||||
Basic weighted average shares
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76,833 | 77,123 | 77,039 | 77,427 | 77,106 | 77,918 | 77,960 | 77,831 | 77,903 | |||||||||||||||||||||||||||
Diluted weighted average shares
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78,341 | 78,307 | 78,302 | 79,027 | 78,494 | 79,352 | 79,310 | 79,346 | 79,336 | |||||||||||||||||||||||||||
ACXIOM CORPORATION AND SUBSIDIARIES
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RESULTS BY SEGMENT
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(Unaudited)
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(Dollars in thousands)
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Q3 FY16 to Q3 FY15
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06/30/14
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09/30/14
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12/31/14
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03/31/15
|
YTD FY2015
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06/30/15
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09/30/15
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12/31/15
|
YTD FY2016
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%
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$ | ||||||||||||||||||||||||||||||||||
Revenues:
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Marketing services
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109,288 | 112,750 | 114,403 | 109,662 | 446,103 | 107,726 | 112,979 | 115,725 | 336,430 | 1.2 | % | 1,322 | ||||||||||||||||||||||||||||||||
Audience Solutions
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73,061 | 78,026 | 75,933 | 76,816 | 303,837 | 68,550 | 72,122 | 77,046 | 217,718 | 1.5 | % | 1,113 | ||||||||||||||||||||||||||||||||
Connectivity
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4,334 | 13,472 | 17,910 | 19,256 | 54,972 | 20,619 | 22,244 | 28,422 | 71,285 | 58.7 | % | 10,512 | ||||||||||||||||||||||||||||||||
Total operating segment revenues
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186,683 | 204,248 | 208,246 | 205,735 | 804,911 | 196,895 | 207,345 | 221,193 | 625,433 | 6.2 | % | 12,947 | ||||||||||||||||||||||||||||||||
Gross profit:
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Marketing services
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39,452 | 39,251 | 41,572 | 36,169 | 156,444 | 36,033 | 37,545 | 38,561 | 112,139 | -7.2 | % | (3,011 | ) | |||||||||||||||||||||||||||||||
Audience Solutions
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35,605 | 41,425 | 39,215 | 42,141 | 158,386 | 36,823 | 39,170 | 45,265 | 121,258 | 15.4 | % | 6,050 | ||||||||||||||||||||||||||||||||
Connectivity
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(3,527 | ) | 2,757 | 5,858 | 8,234 | 13,322 | 11,953 | 13,499 | 16,130 | 41,582 | 175.3 | % | 10,272 | |||||||||||||||||||||||||||||||
Total operating segment gross profit
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71,530 | 83,433 | 86,645 | 86,544 | 328,152 | 84,809 | 90,214 | 99,956 | 274,979 | 15.4 | % | 13,311 | ||||||||||||||||||||||||||||||||
Gross margin:
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Marketing services
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36.1 | % | 34.8 | % | 36.3 | % | 33.0 | % | 35.1 | % | 33.4 | % | 33.2 | % | 33.3 | % | 33.3 | % | ||||||||||||||||||||||||||
Audience Solutions
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48.7 | % | 53.1 | % | 51.6 | % | 54.9 | % | 52.1 | % | 53.7 | % | 54.3 | % | 58.8 | % | 55.7 | % | ||||||||||||||||||||||||||
Connectivity
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-81.4 | % | 20.5 | % | 32.7 | % | 42.8 | % | 24.2 | % | 58.0 | % | 60.7 | % | 56.8 | % | 58.3 | % | ||||||||||||||||||||||||||
Total operating segment gross margin
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38.3 | % | 40.8 | % | 41.6 | % | 42.1 | % | 40.8 | % | 43.1 | % | 43.5 | % | 45.2 | % | 44.0 | % | ||||||||||||||||||||||||||
Income from continuing operations:
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Marketing services
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20,828 | 20,576 | 21,859 | 17,984 | 81,247 | 16,853 | 17,908 | 20,309 | 55,070 | -7.1 | % | (1,550 | ) | |||||||||||||||||||||||||||||||
Audience Solutions
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24,190 | 31,375 | 28,919 | 30,594 | 115,078 | 24,087 | 25,190 | 30,723 | 80,000 | 6.2 | % | 1,804 | ||||||||||||||||||||||||||||||||
Connectivity
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(14,089 | ) | (12,152 | ) | (7,802 | ) | (6,026 | ) | (40,069 | ) | (791 | ) | (1,068 | ) | (1,015 | ) | (2,874 | ) | 87.0 | % | 6,787 | |||||||||||||||||||||||
Total operating segment income from operations
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30,929 | 39,799 | 42,976 | 42,552 | 156,256 | 40,149 | 42,030 | 50,017 | 132,196 | 16.4 | % | 7,041 | ||||||||||||||||||||||||||||||||
Margin:
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Marketing services
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19.1 | % | 18.2 | % | 19.1 | % | 16.4 | % | 18.2 | % | 15.6 | % | 15.9 | % | 17.5 | % | 16.4 | % | ||||||||||||||||||||||||||
Audience Solutions
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33.1 | % | 40.2 | % | 38.1 | % | 39.8 | % | 37.9 | % | 35.1 | % | 34.9 | % | 39.9 | % | 36.7 | % | ||||||||||||||||||||||||||
Connectivity
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-325.1 | % | -90.2 | % | -43.6 | % | -31.3 | % | -72.9 | % | -3.8 | % | -4.8 | % | -3.6 | % | -4.0 | % | ||||||||||||||||||||||||||
Total operating segment operating margin
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16.6 | % | 19.5 | % | 20.6 | % | 20.7 | % | 19.4 | % | 20.4 | % | 20.3 | % | 22.6 | % | 21.1 | % | ||||||||||||||||||||||||||
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