Acxiom Announces Fourth Quarter and Fiscal Year 2011 Results
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Acxiom Investor Relations
LITTLE ROCK, Ark. – May 11, 2011 — Acxiom® Corporation (Nasdaq:
ACXM), a recognized leader in marketing services and technology, today
announced financial results for the fourth quarter and fiscal year ended
March 31, 2011. Acxiom will hold a conference call at 10:00 a.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 reference presentation slides that will be available on the website prior to the call.
Jerry Gramaglia, Acxiom’s interim chief executive officer, said, “Our
results for the fourth quarter and for the entire fiscal 2011 year were
in line with our expectations expressed in our March 30th
announcement. In the fourth quarter and continuing into fiscal year
2012, Acxiom’s focus is on delivering exceptional value to the world’s
top marketers. In turn, we continue to be rewarded with long term
renewals and significantly expanded business relationships.”
Fourth Quarter 2011 Highlights:
- Revenue increased by 3.6% in the current quarter
ended March 31, 2011 to $298.8 million, compared to $288.3 million for
the quarter ended March 31, 2010.
- Loss from operations of $53.0 million in the
current-year fourth quarter compared to income from operations of $35.2
million in the fourth quarter of the prior year. Excluding the impact of
unusual items, income from operations in the current quarter would be
$34.9 million, a 4.3% increase over the prior-year quarter.
- Loss per diluted share attributable to Acxiom
stockholders of $0.83 in the current quarter, compared to earnings per
share of $0.21 in the fourth quarter of fiscal 2010. Excluding the
impact of unusual items in both periods, earnings per diluted share
attributable to Acxiom stockholders would be $0.21 in the current
period, a 10.5% increase over $0.19 the prior-year quarter.
- Operating cash flow of $42.0 million, compared to $87.9 million in the fourth quarter a year ago.
- Free cash flow available to equity of $14.7
million, compared to $43.1 million in the fourth 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.
A schedule is attached to this release outlining the impact of the
unusual items on the current and prior-year fourth quarter and current
and prior-year full year results.
Goodwill/Asset Impairment and Other Charges
Fourth-quarter loss per diluted share attributable to Acxiom
stockholders of $0.83 includes $89.4 million or the equivalent of $1.04
per share in unusual expenses. The major components of the unusual
- Goodwill/Asset Impairment of $79.7 million. $15.4 million related to
European Services, $57.1 million related to European Products and $7.2
million related to Middle East, North Africa;
- Disposal of operations of $3.3 million related to the disposal of
the Netherlands and Portugal operations, of which $1.1 million
represents cash payments to be made in future periods; and
- Other charges of $6.5 million including $5.5 million to be paid in future periods.
- Information Services: Revenue for the quarter ended
March 31, 2011 was $224.6 million, up 1.4%, compared to $221.6 million
for the quarter ended March 31, 2010. Income from operations for the
current fourth quarter was $21.2 million, down 23.4% compared to $27.6
million in the prior-year fourth quarter.
- Information Products: Revenue for the quarter
increased 11.2% to $74.2 million, compared with $66.8 million in the
fourth quarter a year ago. Income from operations for the quarter was
$13.7 million, compared to $5.8 million in the fourth quarter of the
Fiscal Year 2011 Highlights:
- Revenue increased by 5.5% in fiscal 2011 to $1.160 billion, compared to $1.099 billion in fiscal 2010.
- Income from operations of $30.9 million in the
current year compared to income from operations of $98.8 million in the
prior year. Excluding the impact of unusual items, income from
operations in the current year would be $115.2 million compared to
income from operations of $97.9 million in the prior year, an increase
- Loss per diluted share attributable to Acxiom
stockholders of $0.29 in the current year, compared to income per share
of $0.56 in fiscal 2010. Excluding the impact of unusual items in both
years, earnings per diluted share attributable to Acxiom stockholders
would be $0.68 in the current year, compared to $0.55 in the prior year,
an increase of 23.6%.
- Operating cash flow of $166.2 million, compared to $239.3 million in the prior year.
- Free cash flow available to equity of $53.2
million, compared to $108.3 million in fiscal 2010. 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
Web Link to Financials
You may link to http://www.acxiom.com/FY11_Q4_Financials for the detailed financial information we typically attach to our earnings releases.
Acxiom is a recognized leader in marketing services and technology
that enable marketers to successfully manage audiences, personalize
consumer experiences and create profitable customer relationships. Our
superior industry-focused, consultative approach combines consumer data
and analytics, databases, data integration and consulting solutions for
personalized, multichannel marketing strategies. Acxiom leverages over
40 years of experience in data management to deliver high-performance,
highly secure, reliable information management services. Founded in
1969, Acxiom is headquartered in Little Rock, Arkansas, USA, and serves
clients around the world from locations in the United States, Europe,
Asia-Pacific, the Middle East and South America. For more information
about Acxiom, visit Acxiom.com.
Forward Looking Statements
This release and today’s conference call may contain forward-looking
statements including, without limitation, statements regarding future
cash outlays included in unusual expenses recorded in the fourth quarter
of fiscal 2011, an improvement in the economic outlook, and the
possibility of continued future growth. 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 data suppliers might withdraw data from us, leading to
our inability to provide certain products and services to our clients,
which could lead to decreases in our operating results; 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; the possibility that we may be unable to quickly and
seamlessly integrate a new chief executive officer and chief financial
officer; 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; the possibility
that we could experience loss of data center capacity or interruption of
telecommunication links; 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 reports on Form
10-K, particularly the discussion under the caption “Item 1A, RISK
FACTORS” in our Annual Reports on Form 10-K for the year ended March 31,
2010, which was filed with the Securities and Exchange Commission on
May 26, 2010.
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.