Acxiom Announces Third Quarter Fiscal Year 2011 Results
Company Reports Third Consecutive Quarter of Year-over-Year Improvement in Revenue and Operating Income
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Acxiom Investor Relations
LITTLE ROCK, Ark. – January 26, 2011 — Acxiom®
Corporation (Nasdaq: ACXM) a recognized leader in marketing services and
technology, today announced financial results for the third quarter of
fiscal year 2011 ended December 31, 2010. 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. The company will reference presentation slides that will be available on the website prior to the call.
John Meyer, Acxiom’s chief executive officer and president, said, “We
are pleased that Acxiom delivered another solid performance in the
third quarter of fiscal 2011. This represents our third consecutive
quarter of year-over-year revenue and operating income growth. This
quarter’s performance was driven by the continued execution against our
strategy and was aided by the general improvement in client spending in
our core markets.”
Third Quarter 2011 Highlights:
- Revenue increased by 5.4% in the current quarter
ended December 31, 2010 to $299.1 million, compared to $283.8 million
for the quarter ended December 31, 2009.
- Income from operations of $34.6 million in the
current-year third quarter compared to income from operations of $29.9
million in the third quarter of the prior year. Excluding the impact of
unusual items which are described below, income from operations in the
current quarter would be $30.9 million, a 3.6% increase over the
- Earnings per diluted share attributable to Acxiom
stockholders of $0.25 in the current quarter, compared to $0.18 in the
third quarter of fiscal 2010. Excluding the impact of unusual items
described below, earnings per diluted share attributable to Acxiom
stockholders would be $0.19 in the current period, a 5.6% increase over
the prior-year quarter.
The company recorded adjustments to restructuring and legal
accruals during the quarter totaling $3.6 million recorded in gains,
losses and other items, net. In addition, during the quarter, the
company reduced a reserve for unrecognized tax benefits by approximately
$3.5 million due to the expiration of the related statute of
limitations. These two items combined increased earnings per share
attributable to Acxiom shareholders by 6 cents.
- Operating cash flow of $64.2 million, compared to $74.5 million in the third quarter a year ago.
- Free cash flow available to equity of $35.1
million, compared to $49.0 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.
- Information Services: Revenue for the quarter ended
December 31, 2010 was $232.8 million, up 6.6%, compared to $218.3
million for the quarter ended December 31, 2009. Income from operations
for the current third quarter was $26.4 million, down 4.3% compared to
$27.6 million in the prior-year third quarter.
- Information Products: Revenue for the quarter
increased 1.3% to $66.3 million, compared with $65.5 million in the
third quarter a year ago. Income from operations for the quarter was
$4.5 million, compared to $2.8 million in the third quarter of the
Fiscal Year 2011 Year-To-Date Highlights:
- Revenue increased by 6.2% in the current year
nine-month period, to $861.2 million, compared to $810.9 million for the
same period last year.
- Income from operations of $84.0 million for the
first nine months of fiscal year 2011, up 32.0%, compared to income from
operations of $63.6 million in the comparable nine-month period of
fiscal 2010. Excluding the impact of unusual items described above,
income from operations in the current year would be $80.3 million, a
26.3% increase over the prior year.
- Earnings per diluted share attributable to Acxiom
stockholders of $0.54 for the current year nine-month period, compared
to $0.35 in the comparable nine-month period last year. Excluding the
impact of unusual items noted above, earnings per diluted share
attributable to Acxiom stockholders would be $0.47 for the current year
- Operating cash flow of $124.2 million in the current fiscal year nine-month period, compared to $151.4 million in the prior year nine-month period.
- Free cash flow available to equity of $38.5 million
for the nine months ended December 31, 2010, compared to $65.2 million
for the nine months ended December 31, 2009. 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
Web Link to Financials
You may link to http://www.acxiom.com/FY11_Q3_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 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 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,
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.