Acxiom (NASDAQ:ACXM)
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Add after last paragraph of release: Fourth-Quarter and Fiscal Year 2008
financials.
The corrected release reads:
ACXIOM ANNOUNCES FOURTH-QUARTER AND FISCAL YEAR 2008 RESULTS
Company Hosting an Investor Day June 17
Acxiom® Corporation
(Nasdaq: ACXM) today announced financial results for the fourth quarter
and fiscal year end ended March 31, 2008. Acxiom will hold a conference
call at 4:30 p.m. CDT today to further discuss this information.
Interested parties are invited to listen to the call, which will be
broadcast via the Internet at www.acxiom.com.
The company will host an investor day June 17 in New York. Details will
be made available on the Acxiom website.
Revenue for the fourth quarter was $349.8 million compared to $356.4
million in the fourth quarter of fiscal 2007. Operating loss for the
quarter was $76.0 million and loss per diluted share was $0.76. The
results for the quarter include the impact of $107.2 million of
restructuring and other items (of which $104.5 million are included in
the loss from operations, with the remainder included in other expense),
which contributed to the loss by the equivalent of $0.91 per diluted
share.
For the 12-month period ended March 31, 2008, revenue totaled $1.384
billion compared to $1.391 billion in the prior year. Income from
operations for the 12 month period was $40.2 million compared to $154.1
million a year ago. Loss per diluted share was $0.10 compared to
earnings per diluted share of $0.80 in the prior year. The loss per
diluted share includes the impact of $84.2 million, or the equivalent of
$0.70 per diluted share, of expense from unusual items.
A schedule is linked to this release outlining the restructuring and
other items impacting the fourth quarter and the year end results.
According to John Meyer, Acxiom Corp. CEO and President, “During
my first 90 days I have focused on meeting our customers and our people,
rationalizing costs and gaining a deeper understanding of our offerings
and value propositions. I have also made a number of leadership and role
changes.
“We are working to develop strategic and
operational plans to help overcome the current challenges we are facing
in some industry sectors and to provide a springboard for growth in
future years. The initial focus will be on our customers and potential
customers, leveraging our capabilities and assets across all industries
we serve, and creating a winning market-facing culture. We already have
a very strong foundation to do that. I believe in this opportunity now
even more than when I was evaluating coming on board.”
Restatement, Restructuring and other
items
The Company is restating its financial statements for 2007, 2006, and
prior years to correct its accounting related to accrued service
revenue. The impact of this restatement will be a reduction in net
income of $2.4 million in 2006 and $2.9 million in 2007. Accrued
revenue, which is reflected in accounts receivable, will be reduced by a
total of $52.2 million.
Fourth-quarter loss per diluted share of $.76 includes $107.2 million or
the equivalent of $0.91 per share in unusual expenses. The major
components of the restructuring and other items are:
Gains, losses and other - $74.5 million composed of:
Restructuring charges - $42.9 million related to headcount
reduction, real estate closure, contract termination;
Closing operations - $13.5 million related to previously acquired
operations and the flight department;
Asset disposal/impairment - $15.0 million, primarily software;
Other – $3.1 million related to legal,
international and other;
IT contract restructuring - $34.0 million reflected as increase in
cost of services;
Loss on investment - $2.7 million reflected in Other, net;
Accrued revenue restatement - $.4.0 million increase in revenue.
Of the $107.2 million in restructuring and other items, approximately
$59.2 million represents balance sheet assets written down that do not
require cash outlays. Approximately $48.0 million represents estimated
cash payments to be made on obligations primarily related to headcount
reductions, real estate and facilities lease terminations and an
aircraft lease termination. The $48 million includes obligations of
approximately $34 million to be paid in fiscal 2009, with the remainder
in future periods.
Details of Acxiom’s fourth-quarter results
include:
Revenue of $349.8 million compared to $356.4 million in the fourth
quarter a year ago;
Loss from operations of $76.0 million compared to income from
operations of $28.4 million in the fourth quarter last year; Loss from
operations this quarter included $107.2 million of restructuring and
other items;
Loss per diluted share of $0.76 compared to earnings per share of
$0.07 in the fourth quarter of fiscal 2008; included in the loss per
share of $0.76 is the negative impact of restructuring and other items
which was the equivalent of $.91 per diluted share;
Operating cash flow of $90.5 million compared to $76.5 million in the
fourth quarter a year ago;
Free cash flow available to equity of $14.7 million compared to $15.4
million a year ago; free cash flow available to equity is a non-GAAP
financial measure; a reconciliation to the comparable GAAP measure,
operating cash flow, is attached to this press release.
Details of Acxiom’s fiscal year results
include:
Revenue of $1.384 billion compared to $1.390 billion in the prior year;
Income from operations of $40.2 million in 2008 compared to $154.1
million in fiscal 2007;
Loss per diluted share of $0.10 compared to earnings per diluted share
of $0.80 in fiscal 2007; net restructuring and other items for the
year were $84.2 million, or the equivalent of $0.70 per diluted share;
In addition to the restructuring and other items in the fourth quarter
detailed above, the company had a benefit of a net gain of $22.9
million comprised of:
Gains from a merger termination payment and sale of assets of
$68.2 million;
Restructuring costs, transaction costs, retirement and loss on
sale of assets of $30.0 million;
Additional contract impairment in cost of services of $10.0
million;
Reduction in revenue related to accrued revenue restatement to
previous quarters of $5.2 million;
Operating cash flow of $300.3 million compared to $260.0 million in
the prior year;
Free cash flow available to equity of $77.5 million compared to $55.2
million a year ago; free cash flow available to equity is a non-GAAP
financial measure; a reconciliation to the comparable GAAP measure,
operating cash flow, is attached to this press release.
Segment information:
Information Services Division: The division develops, sells and
delivers industry-tailored solutions globally through the integration
of products, services and consulting. Revenue for the quarter was
$189.7 million, up 0.8 percent from the fourth quarter of the previous
year. For the 12 months ended March 31, 2008, revenue was $741.3
million, up 1.8 percent from the previous year. Operating income for
the quarter was $24.1 million, down 7.7 percent from the third quarter
of the previous year. For the 12 months just ended, operating income
was $97.2 million, down 22.0 percent from the previous 12-month period.
Information Products Division: The division develops and sells
all global data products, including InfoBase-X®
and PersonicX®, as
well as fraud and risk mitigation products sold in the U.S., including
InsightIdentify. It focuses on product development, product lifecycle
management, data content management and innovation. Revenue for the
quarter was $115.2 million, up 5.2 percent from the fourth quarter of
the previous year. For the 12 months ended March 31, 2008, revenue was
$431.3 million, up 3.8 percent from the previous year. Operating
income for the quarter was $13.1 million, up 45.9 percent from the
fourth quarter of the previous year. For the 12 months just ended,
operating income was $23.8 million, up 25.7 percent from the previous
12-month period.
Infrastructure Management Division: The division develops and
delivers information technology products and services that improve a
company’s ability to manage its information
technology delivery platform with lower costs and higher efficiencies.
Such offerings include traditional IT outsourcing and transformational
solutions such as the Acxiom data factory. Revenue for the quarter was
$108.2 million, down 8.8 percent from the fourth quarter of the
previous year. For the 12 months ended March 31, 2008, revenue was
$447.5 million, down 6.1 percent from the previous year. Operating
income for the quarter was $8.3 million, down 16.1 percent from the
fourth quarter of the previous year. For the 12 months just ended,
operating income was $44.3 million, down 10.3 percent from the
previous 12-month period.
Investor Day
As mentioned above, the company will be hosting an investor day on June
17 and providing a forecast for fiscal 2009 at that time. Company
management will also discuss operations and prospects at the investor
day. The event will be held at the NASDAQ facilities in New York and
will be web cast. Further information will be made available on our
website at www.acxiom.com.
Web Link to Financials
http://www.acxiom.com/FY08_Q4_Financials
is a link to the detailed financial information we typically attach to
our earnings releases.
About Acxiom Corporation
At Acxiom, we make information intelligent for many of the world’s
leading and most dynamic companies, enabling them to acquire new
customers, retain their most valuable customers, communicate with
customers in the methods and at the times they prefer, and make
profitable marketing and business decisions. Acxiom’s
unmatched customer insight is achieved by blending the world’s
largest repository of consumer data, award-winning technology and
analytics, multi-channel expertise, privacy leadership, and superior
knowledge of a wide spectrum of industries. Founded in 1969, Acxiom
(Nasdaq: ACXM) is headquartered in Little Rock, Arkansas, with locations
throughout the United States and Europe, and in Australia and China. For
more information about Acxiom, visit www.acxiom.com.
This release and today’s conference call
contain certain forward-looking statements that are subject to certain
risks and uncertainties. Important factors that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements include, but are not limited to, our ability
to timely complete the restatement of our historical financial results
for the years ended, March 31, 2006 and March 31, 2007; the on-going
review of the circumstances surrounding such restatements and the
consequences thereof; and those additional factors detailed under the
section titled “Risk Factors”
and elsewhere in filings with the Securities and Exchange Commission
made from time to time by Acxiom, including, but not limited to: its
annual report on Form 10-K filed on May 30, 2007 and 10-K/A on July 30,
2007; recent quarterly reports on Form 10-Q; and other current reports
on Form 8-K. Acxiom undertakes no obligation to release publicly any
revisions to any forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Acxiom is a registered trademark of Acxiom Corporation.
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
For the Three Months Ended
March 31,
$
%
2008
2007
Variance
Variance
Revenue:
Services
259,886
266,441
(6,555
)
(2.5
%)
Data
89,911
89,957
(46
)
(0.1
%)
Total revenue
349,797
356,398
(6,601
)
(1.9
%)
Operating costs and expenses:
Cost of revenue
Services
235,742
209,830
25,912
12.3
%
Data
58,153
52,991
5,162
9.7
%
Total cost of revenue
293,895
262,821
31,074
11.8
%
Services gross margin
9.3
%
21.2
%
Data gross margin
35.3
%
41.1
%
Total gross margin
16.0
%
26.3
%
Selling, general and administrative
57,341
56,031
1,310
2.3
%
Gains, losses and other items, net
74,519
9,122
65,397
100.0
%
Total operating costs and expenses
425,755
327,974
97,781
29.8
%
Income (loss) from operations
(75,958
)
28,424
(104,382
)
(367.2
%)
Other income (expense):
Interest expense
(11,016
)
(15,002
)
3,986
(26.6
%)
Other, net
(1,685
)
1,444
(3,129
)
(216.7
%)
Total other income (expense)
(12,701
)
(13,558
)
857
(6.3
%)
Earnings (loss) before income taxes
(88,659
)
14,866
(103,525
)
(696.4
%)
Income taxes
(30,375
)
9,136
(39,511
)
(432.5
%)
Net earnings (loss)
(58,284
)
5,730
(64,014
)
(1117.2
%)
Earnings (loss) per share:
Basic
(0.76
)
0.07
(0.83
)
(1185.7
%)
Diluted
(0.76
)
0.07
(0.83
)
(1185.7
%)
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
For the Twelve Months Ended
March 31,
$
%
2008
2007
Variance
Variance
Revenue:
Services
1,049,790
1,056,478
(6,688
)
(0.6
%)
Data
334,289
334,033
256
0.1
%
Total revenue
1,384,079
1,390,511
(6,432
)
(0.5
%)
Operating costs and expenses:
Cost of revenue
Services
858,173
806,991
51,182
6.3
%
Data
229,587
206,629
22,958
11.1
%
Total cost of revenue
1,087,760
1,013,620
74,140
7.3
%
Services gross margin
18.3
%
23.6
%
Data gross margin
31.3
%
38.1
%
Total gross margin
21.4
%
27.1
%
Selling, general and administrative
219,721
213,849
5,872
2.7
%
Gains, losses and other items, net
36,352
8,897
27,455
100.0
%
Total operating costs and expenses
1,343,833
1,236,366
107,467
8.7
%
Income from operations
40,246
154,145
(113,899
)
(73.9
%)
Other income (expense):
Interest expense
(51,230
)
(46,632
)
(4,598
)
9.9
%
Other, net
1,223
5,933
(4,710
)
(79.4
%)
Total other income (expense)
(50,007
)
(40,699
)
(9,308
)
22.9
%
Earnings (loss) before income taxes
(9,761
)
113,446
(123,207
)
(108.6
%)
Income taxes
(1,981
)
45,573
(47,554
)
(104.3
%)
Net earnings (loss)
(7,780
)
67,873
(75,653
)
(111.5
%)
Earnings (loss) per share:
Basic
(0.10
)
0.82
(0.92
)
(112.2
%)
Diluted
(0.10
)
0.80
(0.90
)
(112.5
%)
ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings (loss) per share)
For the Three Months Ended
March 31,
March 31,
2008
2007
Basic earnings per share:
Numerator - net earnings (loss)
(58,284
)
5,730
Denominator - weighted-average shares outstanding
77,085
78,385
Basic earnings (loss) per share
(0.76
)
0.07
Diluted earnings per share:
Numerator - net earnings (loss)
(58,284
)
5,730
Denominator - weighted-average shares outstanding
77,085
78,385
Dilutive effect of common stock options, warrants and restricted
stock
-
1,750
77,085
80,135
Diluted earnings (loss) per share
(0.76
)
0.07
ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS (LOSS) PER SHARE
(Unaudited)
(In thousands, except earnings (loss) per share)
For the Twelve Months Ended
March 31,
March 31,
2008
2007
Basic earnings (loss) per share:
Numerator - net earnings (loss)
(7,780
)
67,873
Denominator - weighted-average shares outstanding
79,123
82,564
Basic earnings (loss) per share
(0.10
)
0.82
Diluted earnings (loss) per share:
Numerator - net earnings (loss)
(7,780
)
67,873
Denominator - weighted-average shares outstanding
79,123
82,564
Dilutive effect of common stock options, warrants and restricted
stock
-
2,115
79,123
84,679
Diluted earnings (loss) per share
(0.10
)
0.80
ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
March 31,
March 31,
Revenue:
2008
2007
Information services
189,727
188,265
Information products
115,189
109,546
Infrastructure management
108,169
118,593
Eliminations
(63,288
)
(60,006
)
Total revenue
349,797
356,398
Income from operations:
Information services
24,114
26,121
Information products
13,129
8,997
Infrastructure management
8,271
9,858
Corporate & other
(121,472
)
(16,552
)
Total income (loss) from operations
(75,958
)
28,424
Margin:
Information services
12.7
%
13.9
%
Information products
11.4
%
8.2
%
Infrastructure management
7.6
%
8.3
%
Total margin
-21.7
%
8.0
%
ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
For the Twelve Months Ended
March 31,
March 31,
Revenue:
2008
2007
Information services
741,259
728,014
Information products
431,316
415,417
Infrastructure management
447,488
476,333
Eliminations
(235,984
)
(229,253
)
Total revenue
1,384,079
1,390,511
Income from operations:
Information services
97,248
124,628
Information products
23,783
18,922
Infrastructure management
44,287
49,381
Corporate & other
(125,072
)
(38,786
)
Total income from operations
40,246
154,145
Margin:
Information services
13.1
%
17.1
%
Information products
5.5
%
4.6
%
Infrastructure management
9.9
%
10.4
%
Total margin
2.9
%
11.1
%
ACXIOM CORPORATION AND SUBSIDIARIES
DATA REVENUE AND COST OF DATA SUPPLEMENTAL SCHEDULE
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
March 31,
March 31,
$
%
2008
2007
Variance
Variance
Data
67,817
69,596
(1,779
)
(2.6
%)
Passthrough data
22,094
20,361
1,733
8.5
%
Total data revenue
89,911
89,957
(46
)
(0.1
%)
Cost of data revenue:
Data
36,059
32,630
3,429
10.5
%
Passthrough data
22,094
20,361
1,733
8.5
%
Total cost of data
58,153
52,991
5,162
9.7
%
Margin:
Data
46.8
%
53.1
%
Passthrough data
0.0
%
0.0
%
Total data
35.3
%
41.1
%
ACXIOM CORPORATION AND SUBSIDIARIES
DATA REVENUE AND COST OF DATA SUPPLEMENTAL SCHEDULE
(Unaudited)
(Dollars in thousands)
For the Twelve Months Ended
March 31,
March 31,
$
%
2008
2007
Variance
Variance
Data
252,287
255,299
(3,012
)
(1.2
%)
Passthrough data
82,002
78,734
3,268
4.2
%
Total data revenue
334,289
334,033
256
0.1
%
Cost of data revenue:
Data
147,585
127,895
19,690
15.4
%
Passthrough data
82,002
78,734
3,268
4.2
%
Total cost of data
229,587
206,629
22,958
11.1
%
Margin:
Data
41.5
%
49.9
%
Passthrough data
0.0
%
0.0
%
Total data
31.3
%
38.1
%
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
March 31,
March 31,
$
%
2008
2007
Variance
Variance
Assets
Current assets:
Cash and cash equivalents
62,661
37,776
24,885
65.9
%
Trade accounts receivable, net
216,462
234,511
(18,049
)
(7.7
%)
Refundable income taxes
16,080
7,657
8,423
110.0
%
Deferred income taxes
44,211
41,850
2,361
5.6
%
Other current assets
45,645
59,252
(13,607
)
(23.0
%)
Total current assets
385,059
381,046
4,013
1.1
%
Property and equipment
765,046
733,175
31,871
4.3
%
Less - accumulated depreciation and amortization
498,777
420,883
77,894
18.5
%
Property and equipment, net
266,269
312,292
(46,023
)
(14.7
%)
Software, net of accumulated amortization
59,263
44,289
14,974
33.8
%
Goodwill
484,796
522,046
(37,250
)
(7.1
%)
Purchased software licenses, net of accumulated amortization
111,574
151,326
(39,752
)
(26.3
%)
Deferred costs, net
90,707
137,684
(46,977
)
(34.1
%)
Data acquisition costs
51,566
35,398
16,168
45.7
%
Other assets, net
22,621
39,993
(17,372
)
(43.4
%)
1,471,855
1,624,074
(152,219
)
(9.4
%)
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt
69,259
106,921
(37,662
)
(35.2
%)
Trade accounts payable
45,749
54,808
(9,059
)
(16.5
%)
Accrued payroll and related expenses
39,061
33,663
5,398
16.0
%
Other accrued expenses
121,441
79,078
42,363
53.6
%
Deferred revenue
64,116
113,318
(49,202
)
(43.4
%)
Total current liabilities
339,626
387,788
(48,162
)
(12.4
%)
Long-term debt
575,308
648,879
(73,571
)
(11.3
%)
Deferred income taxes
51,429
97,926
(46,497
)
(47.5
%)
Other liabilities
4,980
-
4,980
100.0
%
Stockholders' equity:
Common stock
11,428
11,145
283
2.5
%
Additional paid-in capital
779,815
718,336
61,479
8.6
%
Retained earnings
413,758
431,014
(17,256
)
(4.0
%)
Accumulated other comprehensive income
33,976
17,526
16,450
93.9
%
Treasury stock, at cost
(738,465
)
(688,540
)
(49,925
)
7.3
%
Total stockholders' equity
500,512
489,481
11,031
2.3
%
1,471,855
1,624,074
(152,219
)
(9.4
%)
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
March 31,
2008
2007
Cash flows from operating activities:
Net earnings (loss)
(58,284
)
5,730
Non-cash operating activities:
Non-cash impact of restructuring
72,503
-
Depreciation and amortization
95,447
59,187
Loss (gain) on disposal or impairment of assets, net
2,708
(235
)
Deferred income taxes
(672
)
16,770
Non-cash stock compensation expense
3,254
1,124
Changes in operating assets and liabilities:
Accounts receivable
11,153
(13,499
)
Other assets
(10,510
)
(16,942
)
Accounts payable and other liabilities
(17,262
)
11,804
Deferred revenue
(7,863
)
12,595
Net cash provided by operating activities
90,474
76,534
Cash flows from investing activities:
Capitalized software
(6,571
)
(8,000
)
Capital expenditures
(6,551
)
(8,230
)
Deferral of costs
(21,482
)
(17,092
)
Payments received from investments
-
50
Net cash paid in acquisitions
(2,044
)
(18,667
)
Net cash used by investing activities
(36,648
)
(51,939
)
Cash flows from financing activities:
Payments of debt
(50,690
)
(77,928
)
Dividends paid
(4,626
)
(4,703
)
Sale of common stock
3,131
7,663
Acquisition of treasury stock
(4,986
)
-
Tax benefit of stock options exercised
(480
)
61
Net cash used by financing activities
(57,651
)
(74,907
)
Effect of exchange rate changes on cash
221
74
Net decrease in cash and cash equivalents
(3,604
)
(50,238
)
Cash and cash equivalents at beginning of period
66,265
88,014
Cash and cash equivalents at end of period
62,661
37,776
Supplemental cash flow information:
Cash paid during the period for:
Interest
11,661
15,270
Income taxes
3,025
6,569
Payments on capital leases and installment payment arrangements
15,376
18,579
Payments on software and data license liabilities
11,821
5,746
Other debt payments, excluding line of credit
13,493
3,603
Prepayment of debt
10,000
50,000
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease and
installment payment arrangements
4,117
14,474
Construction and other financing
1,679
213
Software licenses and maintenance acquired under software obligation
20
8,305
Note payable issued in acquisition
-
1,300
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Twelve Months Ended
March 31,
2008
2007
Cash flows from operating activities:
Net earnings (loss)
(7,780
)
67,873
Non-cash operating activities:
Non-cash impact of restructuring
72,503
-
Depreciation and amortization
272,792
229,566
Gain on disposal or impairment of assets, net
(9
)
(1,718
)
Deferred income taxes
(2,135
)
14,369
Non-cash stock compensation expense
8,932
3,823
Changes in operating assets and liabilities:
Accounts receivable
14,781
(25,515
)
Other assets
8,653
(19,101
)
Accounts payable and other liabilities
(17,258
)
3,960
Deferred revenue
(50,135
)
(13,305
)
Net cash provided by operating activities
300,344
259,952
Cash flows from investing activities:
Disposition of operations
14,250
-
Capitalized software
(33,345
)
(27,443
)
Capital expenditures
(21,600
)
(14,225
)
Cash collected from the sale and license of software
-
10,000
Deferral of costs
(64,701
)
(66,687
)
Payments received from investments
3,603
2,758
Net cash paid in acquisitions
(11,235
)
(33,067
)
Net cash used by investing activities
(113,028
)
(128,664
)
Cash flows from financing activities:
Proceeds from debt
2,127
649,756
Payments of debt
(158,699
)
(471,670
)
Dividends paid
(9,476
)
(18,174
)
Sale of common stock
47,943
33,464
Acquisition of treasury stock
(50,551
)
(299,301
)
Tax benefit of stock options exercised
5,513
4,142
Net cash used by financing activities
(163,143
)
(101,783
)
Effect of exchange rate changes on cash
712
566
Net increase in cash and cash equivalents
24,885
30,071
Cash and cash equivalents at beginning of period
37,776
7,705
Cash and cash equivalents at end of period
62,661
37,776
Supplemental cash flow information:
Cash paid during the period for:
Interest
51,669
46,645
Income taxes
7,979
37,596
Payments on capital leases and installment payment arrangements
69,706
76,135
Payments on software and data license liabilities
31,819
26,897
Other debt payments, excluding line of credit
25,047
10,235
Prepayment of debt
30,000
50,000
Revolving credit payments
2,127
308,403
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease and
installment payment arrangements
24,841
58,928
Disposal of asset under financing
(5,304
)
-
Construction and other financing
11,025
18,380
Software licenses and maintenance acquired under software obligation
513
23,571
Asset acquired under data obligation
15,306
-
Note payable issued in acquisition
300
1,300
Issuance of common stock for acquisition
-
3,610
ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
AND RECONCILIATION TO OPERATING CASH FLOW
(Unaudited)
(Dollars in thousands)
06/30/06
09/30/06
12/31/06
03/31/07
YTD FY2007
06/30/07
09/30/07
12/31/07
03/31/08
YTD FY2008
Net cash provided by operating activities
56,350
64,409
62,659
76,534
259,952
39,132
40,644
130,094
90,474
300,344
Plus:
Payments received from investments
783
1,925
-
50
2,758
-
1,799
1,804
-
3,603
Disposition of operations
-
-
-
-
-
-
-
14,250
-
14,250
Less:
Capitalized software
(5,719
)
(6,926
)
(6,798
)
(8,000
)
(27,443
)
(8,447
)
(9,820
)
(8,507
)
(6,571
)
(33,345
)
Capital expenditures
(217
)
(3,260
)
(2,518
)
(8,230
)
(14,225
)
(2,867
)
(5,291
)
(6,891
)
(6,551
)
(21,600
)
Deferral of costs
(16,887
)
(16,559
)
(16,149
)
(17,092
)
(66,687
)
(14,129
)
(11,630
)
(17,460
)
(21,482
)
(64,701
)
Payments on capital leases and installment payment arrangements
(18,905
)
(21,951
)
(16,700
)
(18,579
)
(76,135
)
(19,137
)
(17,651
)
(17,542
)
(15,376
)
(69,706
)
Payments on software and data license liabilities
(7,847
)
(7,304
)
(6,000
)
(5,746
)
(26,897
)
(6,493
)
(7,279
)
(6,226
)
(11,821
)
(31,819
)
Other required debt payments
(1,711
)
(1,804
)
(3,117
)
(3,603
)
(10,235
)
(3,526
)
(2,416
)
(5,612
)
(13,493
)
(25,047
)
Subtotal
5,847
8,530
11,377
15,334
41,088
(15,467
)
(11,644
)
83,910
15,180
71,979
Plus:
Tax benefit of stock options and warrants
1,079
1,765
1,237
61
4,142
5,624
344
25
(480
)
5,513
Subtotal
6,926
10,295
12,614
15,395
45,230
(9,843
)
(11,300
)
83,935
14,700
77,492
Plus:
Cash collected from sale of software
5,000
5,000
-
-
10,000
-
-
-
-
-
Total
11,926
15,295
12,614
15,395
55,230
(9,843
)
(11,300
)
83,935
14,700
77,492
ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS
(Unaudited)
(Dollars in thousands, except earnings per share)
For the Three
For the Twelve
Months ended
Months ended
March 31, 2008
March 31, 2008
Loss before income taxes
(88,659
)
(9,761
)
Unusual items
107,160
84,222
Earnings before income taxes and unusual items
18,501
74,461
Loss before income taxes
(88,659
)
(9,761
)
Income taxes
(30,375
)
(1,981
)
Net loss
(58,284
)
(7,780
)
Loss per share:
Basic
(0.76
)
(0.10
)
Diluted
(0.76
)
(0.10
)
Unusual items:
Transaction costs
-
17,689
Transaction termination payment
-
(65,000
)
Payment to retired Company Leader
-
3,000
Disposition of operation in France
(584
)
(3,157
)
Restructuring - severance and related
13,374
19,358
Restructuring - facilities and related
22,832
22,832
Restructuring - contract accruals
6,671
6,671
Restructuring - Closing of Harbinger
9,527
9,527
Restructuring - flight services closing
3,993
3,993
Restructuring - software disposals and impairment
15,018
15,018
Other restructuring and other items
3,688
6,421
Accrued revenue adjustment
(4,001
)
1,180
IT contract restructuring
33,968
44,016
Investment loss
2,674
2,674
Total unusual items
107,160
84,222
Earnings before income taxes and excluding unusual items
18,501
74,461
Income taxes
6,633
25,977
Non-GAAP net earnings
11,868
48,484
Non-GAAP earnings per share:
Basic
0.15
0.61
Diluted
0.15
0.60