ACXIOM ANNOUNCES FOURTH QUARTER AND FISCAL YEAR RESULTS
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Katharine BoyceAcxiom Investor Relations
Q4FY 2012 Financials
Q4FY 2012 Conference Slides
Q4FY 2012 Earnings Conference Call
Free cash flow and operating cash flow exceed $200 million for fiscal 2012; U.S. Marketing and Data Services Q4 revenue up 7 percent
LITTLE ROCK, Ark. – May 15, 2012 — 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, 2012.
Revenue from continuing operations of $287 million for the fourth quarter was flat year over year. Earnings per diluted share attributable to Acxiom stockholders were $0.58 in the current quarter, compared to a loss per share of $0.83 in the same period a year ago. Excluding restructuring charges, gain on the sale of discontinued operations and other unusual items from both periods, earnings per diluted share attributable to Acxiom stockholders were $0.22 for the fourth quarter, up approximately 5 percent year over year.
Operating cash flow increased 34 percent to $56 million in the fourth quarter, compared to $42 million in the same period a year ago. Free cash flow available to equity increased to $103 million in the fourth quarter including $73 million of proceeds from the sale of the company’s background screening unit. This compares to $15 million in the prior year. Free cash flow available to equity is a non-GAAP financial measure. A reconciliation to the comparable GAAP measure, operating cash flow, is attached.
“While there is still much to be done, we are pleased with our progress and enter our new fiscal year with a much stronger Acxiom,” said Acxiom CEO Scott Howe. “In the past year, we have tightened our focus, significantly strengthened our management team and begun development of our next generation of products. Looking ahead, our fiscal 2013 will be a year of continuing transition and investment. Our management team is now in place and we expect to build momentum throughout the year.”
Fiscal Year 2012:
Revenue from continuing operations in fiscal 2012 increased approximately 2 percent to $1,131 million, compared to $1,114 million in fiscal 2011. Earnings per diluted share attributable to Acxiom stockholders were $0.96 in fiscal 2012, compared to a loss per share of $0.29 in the prior year. Excluding non-cash impairment charges, restructuring charges, gain on sale of discontinued operations and other unusual items from both periods, earnings per diluted share attributable to Acxiom stockholders were $0.76, up approximately 12 percent year over year.Operating cash flow increased 38 percent to $229 million during the year compared to $166 million in fiscal 2011. Free cash flow available to equity was $203 million including proceeds from the disposition of operations, compared to $53 million in the prior year.
A schedule is attached to this release outlining the impact of the unusual items on the current and prior-year fourth quarter and full year results.
Fourth Quarter Highlights:
- Acxiom generated free cash flow to equity of $103 million and operating cash flow of $56 million. The free cash flow amount includes $73 million of proceeds from the sale of the company’s background screening unit.
- Acxiom repurchased 1.6 million shares for $23 million. In the current fiscal year, the company has repurchased 5.6 million shares for $66 million. Since the first quarter of fiscal 2012, Acxiom has repurchased approximately 7 percent of its outstanding shares.
- On February 1, 2012, Acxiom completed the sale of its background screening unit. The divestiture resulted in $73 million of proceeds and a gain on sale of $48 million. As a result of the disposal, Acxiom is reporting results from continuing operations and discontinued operations separately.
- On April 19, 2012, Acxiom announced Dr. Phil Mui as its new Chief Product and Engineering Officer. Before joining Acxiom, Mui was group product manager for Google Analytics. Mui also previously served in leadership or engineering roles at the Stanford Functional Genomics Facility, Oracle, Microsoft and Lycos.
- For the fourth year in a row, Advertising Age magazine, one of the most influential advertising and marketing publications in the U.S., named Acxiom among its highest ranking leaders. For 2011, Acxiom was named the No. 2 U.S. agency in all disciplines. Acxiom also ranked second in “Top Direct and CRM Agencies in the U.S.” and third in “World’s Top 10 CRM/Direct Marketing Agencies.”
- Marketing and Data Services: Revenue for the fourth quarter was $203 million, up 5 percent compared to $193 million for the same period a year ago. U.S. revenue of $168 million was up 7 percent, but was offset by declines in the international business. Income from operations for the fourth quarter was $30 million, compared to $29 million in the prior period. Operating margins were approximately 15 percent for both periods.
- IT Infrastructure Management: Revenue for the fourth quarter decreased 10 percent to $68 million, compared with $75 million for the same period a year ago. Income from operations for the fourth quarter was $6 million, compared to $5 million in the prior period.
- Other Services: Revenue for the fourth quarter was $17 million, down from $20 million in the fourth quarter last year. Loss from operations was approximately $1 million in both periods.
These projections are forward looking and are subject to certain risks and uncertainties that could cause actual results to differ materially as detailed in the Forward Looking Statements section of this press release. Estimates for fiscal 2013 are as follows:
- Revenue from continuing operations is expected to be flat to slightly down.
- Earnings per diluted share attributable to Acxiom shareholders are expected to be in the range of $0.55 to $0.65, given the company’s investment in new products.
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.
Web Link to Financials
You may link to http://www.acxiom.com/FY12_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, 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 expected levels of revenue from continuing operations and earnings per share for fiscal 2013 as well as statements regarding building momentum, our plans to invest in new data analytics and product capabilities, increasing the top line in Marketing and Data Services, focusing on improving the financial performance of our non-US operations and transitioning and transforming our business. 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 not be able to adequately adapt to rapidly changing computing environments, technologies and marketing practices ;the possibility that we may be unable to quickly and seamlessly integrate our new executive officers; 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.