(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Press Release dated April 30, 2024 | |||||
Investor presentation materials dated April 30, 2024 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
ACI WORLDWIDE, INC. (Registrant) | ||||||||
Date: April 30, 2024 | By: | /s/ SCOTT W. BEHRENS | ||||||
Scott W. Behrens | ||||||||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer) |
March 31, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 183,393 | $ | 164,239 | |||||||
Receivables, net of allowances | 345,125 | 452,337 | |||||||||
Settlement assets | 700,733 | 723,039 | |||||||||
Prepaid expenses | 34,416 | 31,479 | |||||||||
Other current assets | 34,935 | 35,551 | |||||||||
Total current assets | 1,298,602 | 1,406,645 | |||||||||
Noncurrent assets | |||||||||||
Accrued receivables, net | 290,186 | 313,983 | |||||||||
Property and equipment, net | 36,924 | 37,856 | |||||||||
Operating lease right-of-use assets | 33,153 | 34,338 | |||||||||
Software, net | 112,368 | 108,418 | |||||||||
Goodwill | 1,226,026 | 1,226,026 | |||||||||
Intangible assets, net | 186,782 | 195,646 | |||||||||
Deferred income taxes, net | 56,017 | 58,499 | |||||||||
Other noncurrent assets | 60,143 | 63,328 | |||||||||
TOTAL ASSETS | $ | 3,300,201 | $ | 3,444,739 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 44,292 | $ | 45,964 | |||||||
Settlement liabilities | 699,804 | 721,164 | |||||||||
Employee compensation | 26,938 | 53,892 | |||||||||
Current portion of long-term debt | 34,875 | 74,405 | |||||||||
Deferred revenue | 77,147 | 59,580 | |||||||||
Other current liabilities | 65,764 | 82,244 | |||||||||
Total current liabilities | 948,820 | 1,037,249 | |||||||||
Noncurrent liabilities | |||||||||||
Deferred revenue | 20,117 | 24,780 | |||||||||
Long-term debt | 981,851 | 963,599 | |||||||||
Deferred income taxes, net | 39,465 | 40,735 | |||||||||
Operating lease liabilities | 27,378 | 29,074 | |||||||||
Other noncurrent liabilities | 25,517 | 25,005 | |||||||||
Total liabilities | 2,043,148 | 2,120,442 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 702 | 702 | |||||||||
Additional paid-in capital | 714,936 | 712,994 | |||||||||
Retained earnings | 1,387,216 | 1,394,967 | |||||||||
Treasury stock | (733,927) | (674,896) | |||||||||
Accumulated other comprehensive loss | (111,874) | (109,470) | |||||||||
Total stockholders’ equity | 1,257,053 | 1,324,297 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,300,201 | $ | 3,444,739 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenues | |||||||||||
Software as a service and platform as a service | $ | 215,732 | $ | 204,930 | |||||||
License | 29,973 | 18,331 | |||||||||
Maintenance | 47,754 | 50,103 | |||||||||
Services | 22,560 | 16,312 | |||||||||
Total revenues | 316,019 | 289,676 | |||||||||
Operating expenses | |||||||||||
Cost of revenue (1) | 191,107 | 178,554 | |||||||||
Research and development | 34,993 | 37,118 | |||||||||
Selling and marketing | 26,750 | 35,435 | |||||||||
General and administrative | 26,000 | 31,382 | |||||||||
Depreciation and amortization | 27,609 | 31,539 | |||||||||
Total operating expenses | 306,459 | 314,028 | |||||||||
Operating income (loss) | 9,560 | (24,352) | |||||||||
Other income (expense) | |||||||||||
Interest expense | (19,010) | (18,892) | |||||||||
Interest income | 4,009 | 3,505 | |||||||||
Other, net | (2,025) | (3,395) | |||||||||
Total other income (expense) | (17,026) | (18,782) | |||||||||
Loss before income taxes | (7,466) | (43,134) | |||||||||
Income tax expense (benefit) | 285 | (10,826) | |||||||||
Net loss | $ | (7,751) | $ | (32,308) | |||||||
Loss per common share | |||||||||||
Basic | $ | (0.07) | $ | (0.30) | |||||||
Diluted | $ | (0.07) | $ | (0.30) | |||||||
Weighted average common shares outstanding | |||||||||||
Basic | 106,799 | 108,156 | |||||||||
Diluted | 106,799 | 108,156 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (7,751) | $ | (32,308) | |||||||
Adjustments to reconcile net loss to net cash flows from operating activities: | |||||||||||
Depreciation | 3,631 | 6,131 | |||||||||
Amortization | 23,978 | 25,408 | |||||||||
Amortization of operating lease right-of-use assets | 2,568 | 2,767 | |||||||||
Amortization of deferred debt issuance costs | 936 | 1,115 | |||||||||
Deferred income taxes | 1,006 | (10,382) | |||||||||
Stock-based compensation expense | 8,099 | 5,301 | |||||||||
Other | (1,311) | (290) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 127,269 | 88,960 | |||||||||
Accounts payable | (448) | (1,308) | |||||||||
Accrued employee compensation | (26,453) | (15,593) | |||||||||
Deferred revenue | 13,907 | 10,202 | |||||||||
Other current and noncurrent assets and liabilities | (22,190) | (39,935) | |||||||||
Net cash flows from operating activities | 123,241 | 40,068 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (3,208) | (2,258) | |||||||||
Purchases of software and distribution rights | (14,582) | (6,481) | |||||||||
Net cash flows from investing activities | (17,790) | (8,739) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock | 693 | 707 | |||||||||
Proceeds from exercises of stock options | 475 | 78 | |||||||||
Repurchase of stock-based compensation awards for tax withholdings | (3,302) | (3,001) | |||||||||
Repurchases of common stock | (62,515) | — | |||||||||
Proceeds from revolving credit facility | 164,000 | 50,000 | |||||||||
Repayment of revolving credit facility | (152,000) | (45,000) | |||||||||
Proceeds from term portion of credit agreement | 500,000 | — | |||||||||
Repayment of term portion of credit agreement | (529,073) | (14,606) | |||||||||
Payments for debt issuance costs | (5,141) | — | |||||||||
Payments on or proceeds from other debt, net | (2,694) | (5,670) | |||||||||
Net decrease in settlement assets and liabilities | (18,933) | (2,834) | |||||||||
Net cash flows from financing activities | (108,490) | (20,326) | |||||||||
Effect of exchange rate fluctuations on cash | 2,314 | 2,557 | |||||||||
Net increase (decrease) in cash and cash equivalents | (725) | 13,560 | |||||||||
Cash and cash equivalents, including settlement deposits, beginning of period | 238,821 | 214,672 | |||||||||
Cash and cash equivalents, including settlement deposits, end of period | $ | 238,096 | $ | 228,232 | |||||||
Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets | |||||||||||
Cash and cash equivalents | $ | 183,393 | $ | 142,412 | |||||||
Settlement deposits | 54,703 | 85,820 | |||||||||
Total cash and cash equivalents | $ | 238,096 | $ | 228,232 |
Three Months Ended March 31, | |||||||||||
Adjusted EBITDA (millions) | 2024 | 2023 | |||||||||
Net loss | $ | (7.8) | $ | (32.3) | |||||||
Plus: | |||||||||||
Income tax expense (benefit) | 0.3 | (10.8) | |||||||||
Net interest expense | 15.0 | 15.4 | |||||||||
Net other (income) expense | 2.0 | 3.4 | |||||||||
Depreciation expense | 3.6 | 6.1 | |||||||||
Amortization expense | 24.0 | 25.4 | |||||||||
Non-cash stock-based compensation expense | 8.1 | 5.3 | |||||||||
Adjusted EBITDA before significant transaction-related expenses | $ | 45.2 | $ | 12.5 | |||||||
Significant transaction-related expenses: | |||||||||||
Cost reduction strategies | $ | 2.6 | $ | 8.3 | |||||||
European datacenter migration | — | 1.0 | |||||||||
Other | 0.3 | 3.1 | |||||||||
Adjusted EBITDA | $ | 48.1 | $ | 24.9 | |||||||
Revenue, net of interchange: | |||||||||||
Revenue | $ | 316.0 | $ | 289.7 | |||||||
Interchange | 112.4 | 106.2 | |||||||||
Revenue, net of interchange | $ | 203.6 | $ | 183.5 | |||||||
Net Adjusted EBITDA Margin | 24 | % | 14 | % |
Three Months Ended March 31, | |||||||||||
Segment Information (millions) | 2024 | 2023 | |||||||||
Revenue | |||||||||||
Banks | $ | 105.4 | $ | 88.0 | |||||||
Merchants | 35.7 | 34.8 | |||||||||
Billers | 174.9 | 166.9 | |||||||||
Total | $ | 316.0 | $ | 289.7 | |||||||
Recurring Revenue | |||||||||||
Banks | $ | 54.8 | $ | 55.6 | |||||||
Merchants | 33.8 | 32.5 | |||||||||
Billers | 174.9 | 166.9 | |||||||||
Total | $ | 263.5 | $ | 255.0 | |||||||
Segment Adjusted EBITDA | |||||||||||
Banks | $ | 41.6 | $ | 24.7 | |||||||
Merchants | 10.7 | 6.5 | |||||||||
Billers | 30.7 | 29.6 | |||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
EPS Impact of Non-cash and Significant Transaction-related Items (millions) | EPS Impact | $ in Millions (Net of Tax) | EPS Impact | $ in Millions (Net of Tax) | |||||||||||||||||||
GAAP net loss | $ | (0.07) | $ | (7.8) | $ | (0.30) | $ | (32.3) | |||||||||||||||
Adjusted for: | |||||||||||||||||||||||
Significant transaction-related expenses | 0.02 | 2.2 | 0.09 | 9.5 | |||||||||||||||||||
Amortization of acquisition-related intangibles | 0.06 | 6.4 | 0.06 | 6.4 | |||||||||||||||||||
Amortization of acquisition-related software | 0.03 | 3.4 | 0.04 | 4.4 | |||||||||||||||||||
Non-cash stock-based compensation | 0.06 | 6.2 | 0.04 | 4.0 | |||||||||||||||||||
Total adjustments | $ | 0.17 | $ | 18.2 | $ | 0.23 | $ | 24.3 | |||||||||||||||
Diluted EPS adjusted for non-cash and significant transaction-related items | $ | 0.10 | $ | 10.4 | $ | (0.07) | $ | (8.0) | |||||||||||||||
Three Months Ended March 31, | |||||||||||
Recurring Revenue (millions) | 2024 | 2023 | |||||||||
SaaS and PaaS fees | $ | 215.7 | $ | 204.9 | |||||||
Maintenance fees | 47.8 | 50.1 | |||||||||
Recurring Revenue | $ | 263.5 | $ | 255.0 |
New Bookings (millions)1 | Three Months Ended March 31, | TTM Ended March 31, | |||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Annual recurring revenue (ARR) bookings | $ | 6.4 | $ | 11.4 | $ | 68.4 | $ | 94.9 | |||||||||||||||
License and services bookings | 27.2 | 23.0 | 243.4 | 186.1 |
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