Acxiom Announces Second Quarter Fiscal Year 2012 Results
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Acxiom Investor Relations
Q2FY 2012 Financials
Q2FY 2012 Earnings Conference Call
LITTLE ROCK, Ark. – October 26, 2011 — Acxiom® Corporation (Nasdaq: ACXM), a recognized leader in marketing services and technology, today announced financial results for the second quarter of fiscal year 2012 ended September 30, 2011. Acxiom will hold a conference call at 9:00 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 second quarter was in line with expectations and demonstrates Acxiom’s continuing role as a strong technology and strategic partner for our clients,” said Scott Howe, Acxiom CEO and president. “It also indicates we’re practicing good financial stewardship, which helps fuel our continuing innovation. Accelerating top-line growth and margins must be a focus of our future efforts.”
Second Quarter 2012 Highlights:
- Revenue increased by 2.9% in the current quarter ended September 30, 2011 to $300.0 million, compared to $291.7 million for the quarter ended September 30, 2010.
- Income from operations of $28.9 million in the current-year second quarter, compared to income from operations of $27.3 million in the second quarter of the prior year. Excluding the impact of unusual items, primarily the loss on disposal of the MENA operations, income from operations would have been $31.4 million.
- Earnings per diluted share attributable to Acxiom stockholders of $0.15 in the current quarter, compared to earnings per share of $0.16 in the second quarter of fiscal 2011. Excluding the unusual items, earnings per diluted share attributable to Acxiom stockholders would have been $0.19.
- Operating cash flow of $57.7 million, compared to $43.0 million in the second quarter a year ago.
- Free cash flow available to equity of $36.4 million, compared to $9.7 million in the second 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.
Fiscal Year 2012 Year-To-Date Highlights:
- Information Services: Revenue for the quarter ended September 30, 2011 was $230.7 million, up 2.2% compared to $225.6 million for the quarter ended September 30, 2010. Income from operations for the current second quarter was $23.2 million, up 1.1% compared to $23.0 million in the prior-year second quarter.
- Information Products: Revenue for the quarter increased 5.0% to $69.4 million, compared with $66.1 million in the second quarter a year ago. Income from operations for the quarter was $8.2 million, compared to $4.4 million in the second quarter of the previous year.
- Debt prepayment: The company prepaid $75 million of its term loan due March 15, 2015 in the current quarter.
- Share repurchase: The company instituted a share repurchase program during the quarter and has repurchased 3.7 million shares for $39.1 million, of which $5.0 million was accrued as of September 30, 2011 and paid in October.
- Revenue increased by 4.8% in the current-year six-month period, to $589.0 million, compared to $562.1 million for the six months ended September 30, 2010.
- Income from operations of $51.2 million for the first six months of fiscal year 2012, compared to income from operations of $49.4 million in the comparable six-month period of fiscal 2011. Excluding the impact of unusual items, primarily the loss on disposal of the MENA operations, income from operations would have been $53.9 million.
- Earnings per diluted share attributable to Acxiom stockholders of $0.28 in the current-year six-month period, compared to earnings per share of $0.28 in the comparable six-month period last year. Excluding the unusual items, earnings per diluted share attributable to Acxiom stockholders would have been $0.33.
- Operating cash flow of $90.5 million in the current fiscal year six-month period, compared to $60.0 million in the prior year six-month period.
- Free cash flow available to equity of $45.9 million for the six months ended September 30, 2011, compared to $3.4 million for the six months ended September 30, 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 news release.
Web Link to Financials
You may link to http://www.acxiom.com/FY12_Q2_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, 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 the timing and process for strategy development and adoption and our expectations for performance for the balance of the 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 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 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 Report on Form 10-K for the year ended March 31, 2011, which was filed with the Securities and Exchange Commission on May 27, 2011.
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.