Acxiom (NASDAQ:ACXM)
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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 may
contain certain forward-looking statements that are subject to certain
risks and uncertainties. Actual results may differ materially from those
expressed or implied in the forward-looking statements and reported
results should not be considered an indication of future performance.
Important factors that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements are
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.
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.