Sequential Improvement in Revenue, Earnings and Operating Cash Flow
For more information, contact:
Katharine Boyce
Investor Relations Coordinator
Acxiom Corporation
(501) 342-1321
Investor.relations@acxiom.com
EACXM
LITTLE ROCK, Ark. — January 28, 2010 — Acxiom®
Corporation (Nasdaq: ACXM), a global leader in interactive marketing,
today announced financial results for the third quarter of fiscal year
2010 ended December 31, 2009. Acxiom will hold a conference call at
10:00 a.m. CST 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.
John Meyer, Acxiom’s chief executive officer and president, said, “We
stated last quarter that we expected operating income performance in
the second half of the year to improve over the first half. Based on our
third quarter performance and historical seasonality patterns for
fourth-quarter performance, we still expect to see significant
improvement in operating income in the second half of the fiscal year.”
Meyer continued, “Despite another challenging period for us versus
the prior-year quarter, we have seen a stabilization in client spending
which, combined with aggressive sales initiatives, has led to increased
sequential revenue for the second consecutive quarter. Our continued
focus on cost management positively impacted both our operating income
and operating margins. These initiatives, aided by management of our
working capital, contributed to another strong quarter of operating cash
flow.”
Third Quarter 2010 Highlights:
- Earnings per diluted share of $0.18 in the third
quarter of fiscal 2010, compared to loss per diluted share of $0.15 in
the third quarter of fiscal 2009. The prior year results included $0.36
in unusual items. Excluding the effect of the unusual items, diluted
earnings per share in the prior-year period were $0.21.
- Income from operations of $29.9 million in the
current-year third quarter, compared to loss from operations of $8.6
million in the third quarter last year. The prior-year loss from
operations included $43.2 million in unusual loss items. Before the
effect of the unusual loss items income from operations for the
prior-year third quarter would have been $34.6 million.
- Revenue of $283.8 million in the current quarter,
compared to $301.0 million, excluding an Information Products
pass-through contract (approximately $20.1 million), in the third
quarter a year ago. GAAP revenue, including the pass-through revenue in
the prior quarter, was $321.1 million. This contract was modified in the
fourth quarter of fiscal 2009, and the company no longer recognizes
pass-through revenue from this contract.
- Operating cash flow of $74.5 million compared to $78.9 million in the third quarter a year ago.
- Free cash flow available to equity of $49.0
million, compared to $46.8 million in the third quarter 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 news release.
Operational Highlights:
- Information Services: Revenue for the quarter was
$218.3 million, compared to $231.1 million in the third quarter of the
previous year. Income from operations for the quarter was $27.6 million,
compared to $30.4 million in the third quarter of fiscal 2009.
- Information Products: Revenue for the quarter was
$65.5 million, compared with $69.9 million, excluding the pass-through
revenue of approximately $20.1 million from the Information Products
contract referenced above, in the third quarter a year ago. GAAP
revenue, including the pass-through revenue in the prior quarter, was
$90.0 million. This contract was modified in the fourth quarter of
fiscal 2009, and the company no longer recognizes pass-through revenue
from this contract. Income from operations for the quarter was $2.8
million, compared to income from operations of $4.2 million in the third
quarter of the previous year.
Income from operations includes expenses that had previously been
included in corporate and other expenses. The Company now allocates
selling, general and administrative expenses previously included in
corporate and other expenses to the two operating segments, Information
Services and Information Products. Prior-year results have been
reclassified to reflect the change.
Fiscal Year 2010 Year-To-Date Highlights:
- Earnings per diluted share of $0.35 for the current
year nine-month period compared to earnings per diluted share of $0.19
in the comparable nine-month period last year. Excluding unusual loss
items of $0.33, diluted earnings per share for the nine-month period of
fiscal 2009 were $0.52.
- Income from operations of $63.6 million for the
first nine months of fiscal year 2010, compared to $51.3 million in the
comparable nine-month period of fiscal 2009. Income from operations for
the prior year, excluding unusual loss items of $40.3 million, was $91.5
million.
- Revenue of $810.9 million in the current nine-month
period, compared to $917.2 million, excluding revenue from an
Information Products pass-through contract of approximately $63.8
million in the prior year. GAAP revenue, including the pass-through
revenues in the prior year, was $981.1 million. This contract was
modified in the fourth quarter of fiscal 2009, and the company no longer
recognizes pass-through revenue from this contract.
- Operating cash flow of $151.4 million in the current fiscal year nine-month period compared to $194.2 million in the prior year nine-month period.
- Free cash flow available to equity of $65.2 million
for the nine months ended December 31, 2009. For the nine-month period
ended December 31, 2008 free cash flow available to equity was $108.7
million, including unusual and one-time items of $26.8 million,
including $24.2 million in proceeds received from the sale of
company-owned real estate. Free cash flow available to equity is a
non-GAAP financial measure; reconciliation to the comparable GAAP
measure, operating cash flow, is attached to this news release.
Web Link to Financials
You may link to http://www.acxiom.com/FY10_Q3_Financials for the detailed financial information we typically attach to our earnings releases.
About Acxiom
A global leader in interactive marketing services and infrastructure
management, Acxiom connects clients with their customers through deep
customer insight, powering effective and profitable marketing
initiatives and business decisions. Our consultative approach spans
multiple industries and incorporates decades of experience in consumer
data and analytics, information technology, data integration and
consulting solutions for effective marketing across digital, Internet,
email, mobile and direct mail channels. Our secure, high-performance
technology services deliver consistent value and reliability. Founded in
1969, Acxiom is headquartered in Little Rock, Ark., and serves clients
around the world from locations in the United States, Europe, Middle
East and Asia-Pacific. For more information about Acxiom, visit www.acxiom.com.
Forward Looking Statements
This release and today’s conference call may contain forward-looking
statements including, without limitation, statements regarding the
anticipated improvements in operating income in the second half of our
fiscal year. Such forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially. The following are factors, among others, that could cause
actual results to differ materially from these forward-looking
statements: the possibility that certain contracts may not generate the
anticipated revenue or profitability or may not be closed within the
anticipated time frames; the possibility that significant customers may
experience extreme, severe economic difficulty or otherwise reduce the
amount of business they do with us; the possibility that we will not
successfully complete customer contract requirements on time or meet the
service levels specified in the contracts, which may result in contract
penalties or lost revenue; the possibility that we may not be able to
attract, retain or motivate qualified technical, sales and leadership
associates, or that we may lose key associates to other organizations;
the possibility that we will not be able to continue to receive credit
upon satisfactory terms and conditions; the possibility that negative
changes in economic conditions in general or other conditions might lead
to a reduction in demand for our products and services; the possibility
that there will be changes in consumer or business information
industries and markets that negatively impact the company; the
possibility that the historical seasonality of our business may change;
the possibility that we will not be able to achieve cost reductions and
avoid unanticipated costs; the possibility that the fair value of
certain of our assets may not be equal to the carrying value of those
assets now or in future time periods; the possibility that changes in
accounting pronouncements may occur and may impact these forward-looking
statements; the possibility that we may encounter difficulties when
entering new markets or industries; and other risks and uncertainties,
including those detailed from time to time in our periodic reports filed
with the Securities and Exchange Commission, including our current
reports on Form 8-K, quarterly reports on Form 10-Q and annual report on
Form 10-K, particularly the discussion under the caption “Item 1A, RISK
FACTORS” in our Annual Report on Form 10-K for the year ended March 31,
2009, which was filed with the Securities and Exchange Commission on
May 29, 2009.
With respect to the provision of products or services outside our
primary base of operations in the United States, all of the above
factors apply, along with the difficulty of doing business in numerous
sovereign jurisdictions due to differences in scale, competition,
culture, laws and regulations.
We undertake no obligation to update the information contained in this press release or any other forward-looking statement.
Acxiom is a registered trademark of Acxiom Corporation.