Full Year Connectivity Revenue Increases 44%
Year-Over-Year
Company Expects Strong Revenue Growth in
FY18
Acxiom® (Nasdaq: ACXM), the data foundation for the world's
best marketers, today announced financial results for its fourth
quarter and fiscal year ended March 31, 2017.
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Fourth Quarter Financial Highlights
- Revenue: Total revenue was $225
million or flat compared to the fourth quarter of last year. Strong
growth in Connectivity and Audience Solutions was offset by revenue
declines associated with the second quarter divestiture of Acxiom
Impact.
- Operating Income (Loss): GAAP
operating loss from continuing operations was $9 million compared
to a loss of $8 million in the prior year. Non-GAAP operating
income from continuing operations improved 5% to approximately $21
million.
- Earnings (Loss) per Share: GAAP
diluted loss per share from continuing operations was $0.10
compared to a loss per share of $0.02 in the prior year. Non-GAAP
diluted earnings per share from continuing operations were $0.15
compared to $0.18 a year ago.
- Operating Cash Flow: Operating
cash flow from continuing operations was $31 million, down from $43
million in the prior year.
- Free Cash Flow to Equity: Free
cash flow to equity improved to $26 million, up from $17 million in
the prior year driven by proceeds from the sale of real estate
assets.
Fiscal Year Financial Highlights
- Revenue: Total revenue was $880
million, up 4% compared to fiscal 2016 driven by growth in
Connectivity and Audience Solutions, partially offset by the
divestiture of Acxiom Impact.
- Operating Income (Loss): GAAP
operating income from continuing operations was $16 million
compared to a loss of $13 million in the prior year. Non-GAAP
operating income from continuing operations improved 33% to
approximately $100 million.
- Earnings (Loss) per Share: GAAP
diluted earnings per share from continuing operations were $0.05
compared to a loss per share of $0.11 in the prior year. Non-GAAP
diluted earnings per share from continuing operations were $0.71
compared to $0.59 a year ago.
- Operating Cash Flow: Operating
cash flow from continuing operations improved to $116 million, up
from $114 million in the prior year.
- Free Cash Flow to Equity: Free
cash flow to equity improved to $63 million, up from $18 million in
the prior year driven by proceeds from the sale of Acxiom Impact
and the fourth quarter sale of real estate assets.
Segment Results
$M
Connectivity
Q417
Q416
Y/Y Δ
FY17
FY16
Y/Y Δ
Revenue
$ 44 $ 31 42% $ 147 $ 102 44%
Gross Profit
$ 28 $ 20 41% $ 88 $ 61 44%
Gross Margin
63% 63%
(10 bps)
60% 60% 20 bps
Segment Operating Income
$ 2 $ (0) 454% $ 5 $ (3) 262% Segment Margin 3% (1%) 480 bps 4%
(3%) 680 bps
Audience Solutions
Q417
Q416
Y/Y Δ
FY17 FY16 Y/Y Δ
Revenue
$ 86 $ 80 8% $ 322 $ 298 8%
Gross Profit
$ 55 $ 46 19% $ 198 $ 168 18% Gross Margin 64% 58% 580 bps 62% 56%
520 bps
Segment Operating Income
$ 34 $ 30 14% $ 123 $ 110 12% Segment Margin 39% 37% 200 bps 38%
37% 150 bps
Marketing Services
Q417
Q416 Y/Y Δ
FY17
FY16 Y/Y Δ
Revenue
$ 94 $ 113 (17%) $ 411 $ 450 (9%)
Gross Profit
$ 31 $ 40 (22%) $ 141 $ 152 (8%) Gross Margin 33% 35% (230 bps) 34%
34% 30 bps
Segment Operating Income
$ 20 $ 19 1% $ 81 $ 74 8% Segment Margin 21% 17% 370 bps 20% 17%
310 bps
A detailed discussion of our non-GAAP financial measures and a
reconciliation between GAAP and non-GAAP results is provided in the
schedules to this press release.
“Fiscal 2017 was a milestone year for Acxiom,” said Acxiom CEO
Scott Howe. “Each of our businesses delivered revenue growth and
margin improvement, and we made a number of strategic moves to
accelerate our vision of powering a world where all marketing is
relevant. We enter fiscal 2018 from a position of strength and
industry leadership and remain committed
to delivering even more value to our clients and
shareholders.”
Recent Business Highlights
- LiveRamp® product revenue was up 59%
compared to the fourth quarter of last year. LiveRamp added
approximately 25 new direct clients during the quarter and added
over 50 new partner integrations. Marketers can now onboard and
activate their data across a growing network of more than 500
publishers and marketing technology providers.
- LiveRamp launched IdentityLink™ for
data owners allowing data providers to better monetize their
assets. Data can be distributed directly to clients or made
available through IdentityLink’s Data Store feature.
- LiveRamp and AppNexus launched an
open industry consortium to make people-based marketing widely
available in programmatic channels. In forming the consortium,
LiveRamp and leading supply side platform AppNexus have agreed to
create a standard identity framework that enables buyers and
sellers of programmatic digital advertising to create more relevant
campaigns and improve the consumer experience.
- Audience Solutions announced several
new and expanded partnerships, including a new DaaS partnership
with ShareThis and a deeper integration with the Viant Advertising
Cloud platform.
- Acxiom was named to the 2017 Bay
Area Best Places to Work list, ranking among the top large
companies. The awards program, presented by the San Francisco
Business Times and the Silicon Valley Business Journal, annually
recognizes Bay Area companies that rise to the top in terms of
having a happy and engaged workforce.
Financial Outlook
Acxiom’s non-GAAP guidance excludes the impact of non-cash
compensation, purchased intangible asset amortization,
restructuring charges and separation costs.
For fiscal 2018, Acxiom expects to report:
- Revenue of approximately $945
million, an increase of 7% year-over-year. This represents an
increase of 10% year-over-year after adjusting for the Acxiom
Impact divestiture.
- GAAP diluted loss per share of
approximately $0.09
- Non-GAAP diluted earnings per share
of approximately $0.80, an increase of 13% year-over-year
Conference Call
Acxiom will hold a conference call at 4:00 p.m. CT today to
further discuss this information. Interested parties are invited to
listen to the call which will be broadcast via the Internet and can
be found on our investor site. A slide presentation will be
referenced during the call and can be accessed here.
About Acxiom
Acxiom provides the data foundation for the world’s best
marketers. We enable people-based marketing everywhere through a
simple, open approach to connecting systems and data that drives
seamless customer experiences and higher ROI. A leader in identity
and ethical data use for more than 45 years, Acxiom helps thousands
of clients and partners around the globe work together to create a
world where all marketing is relevant. Acxiom is a registered
trademark of Acxiom Corporation. For more information, visit
Acxiom.com.
Forward-Looking Statements
This release and today’s conference call contain forward-looking
statements including, without limitation, statements regarding
expected levels of revenue and earnings per share. 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 the expected revenue from the divisions may
not be realized within the expected timeframe; the possibility that
the integration of acquired businesses may not be successful as
planned; 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 or cancel 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 purchasers
will reduce their reliance on us by developing and using their own,
or alternative, sources of data generally or with respect to
certain data elements or categories; the possibility that data
suppliers might withdraw data from us, leading to our inability to
provide certain products and services to our clients; 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 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 anticipated 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 unusual charges may be incurred; 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; the possibility that
new laws may be enacted which limit our ability to provide services
to our clients and/or which limit the use of data; and the
possibility that other risks and uncertainties may emerge,
including those detailed from time to time in our current and
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, 2016, which was
filed with the Securities and Exchange Commission on May 27,
2016.
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.
To automatically receive Acxiom Corporation financial news by
email, please visit www.acxiom.com and subscribe to email
alerts.
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in
thousands, except per share amounts) For the Three
Months Ended March 31, $ % 2017 2016 Variance Variance
Revenues 224,867 224,655 212 0.1 % Cost of revenue
118,294 123,626 (5,332 ) (4.3 %) Gross profit 106,573
101,029 5,544 5.5 %
% Gross margin 47.4 %
45.0 % Operating expenses: Research and
development 23,478 16,758 6,720 40.1 % Sales and marketing 48,433
45,842 2,591 5.7 % General and administrative 37,721 35,330 2,391
6.8 % Impairment of goodwill and other 1,315 6,100 (4,785 ) (78.4
%) Gains, losses and other items, net 4,335 4,763
(428 ) (9.0 %) Total operating expenses 115,282 108,793
6,489 6.0 % Loss from operations (8,709 ) (7,764 )
(945 ) (12.2 %) %
Margin -3.9 % -3.5
% Other income (expense): Interest expense (2,137 ) (1,880 )
(257 ) (13.6 %) Other, net 199 (214 ) 413 193.0 % Total
other expense (1,937 ) (2,094 ) 157 7.5 % Loss from
continuing operations before income taxes (10,646 ) (9,858 ) (788 )
(8.0 %) Income taxes (2,565 ) (8,176 ) 5,611 68.6 %
Net loss from continuing operations (8,081 ) (1,682 ) (6,399 )
(380.5 %) Earnings from discontinued operations, net of tax
- 111 (111 ) (100.0 %) Net loss (8,081 )
(1,571 ) (6,510 ) (414.4 %) Basic loss per share: Net loss
from continuing operations (0.10 ) (0.02 ) (0.08 ) (372.7 %) Net
earnings from discontinued operations - 0.00 (0.00 )
(100.0 %) Net loss (0.10 ) (0.02 ) (0.08 ) (406.1 %) Diluted
loss per share: Net loss from continuing operations (0.10 ) (0.02 )
(0.08 ) (372.7 %) Net earnings from discontinued operations -
0.00 (0.00 ) (100.0 %) Net loss (0.10 ) (0.02 ) (0.08
) (406.1 %) Basic weighted average shares 78,012 76,753
Diluted weighted average shares 78,012 76,753
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in
thousands, except per share amounts) For the Twelve
Months Ended March 31, $ % 2017 2016 Variance Variance
Revenues 880,247 850,088 30,159 3.5 % Cost of revenue
477,686 488,382 (10,696 ) (2.2 %) Gross profit
402,561 361,706 40,855 11.3 %
% Gross margin 45.7
% 42.5 % Operating expenses: Research
and development 82,109 74,247 7,862 10.6 % Sales and marketing
166,676 146,176 20,500 14.0 % General and administrative 129,714
135,385 (5,671 ) (4.2 %) Impairment of goodwill and other 1,315
6,829 (5,514 ) (80.7 %) Gains, losses and other items, net 7,058
12,132 (5,074 ) (41.8 %) Total operating expenses
386,872 374,769 12,103 3.2 % Income (loss)
from operations 15,689 (13,063 ) 28,752 220.1 % %
Margin
1.8 % -1.5 % Other income (expense):
Interest expense (7,381 ) (7,669 ) 288 3.8 % Other, net 334
452 (118 ) (26.1 %) Total other expense (7,047 ) (7,217 )
170 2.4 % Income (loss) from continuing operations before
income taxes 8,642 (20,280 ) 28,922 142.6 % Income taxes
(benefit) 4,534 (11,632 ) 16,166 139.0 % Net earnings
(loss) from continuing operations 4,108 (8,648 ) 12,756 147.5 %
Earnings from discontinued operations, net of tax -
15,351 (15,351 ) (100.0 %) Net earnings 4,108
6,703 (2,595 ) (38.7 %) Basic earnings per share: Net
earnings (loss) from continuing operations 0.05 (0.11 ) 0.16 147.5
% Net earnings from discontinued operations - 0.20
(0.20 ) (100.0 %) Net earnings 0.05 0.09 (0.03 )
(38.7 %) Diluted earnings per share: Net earnings (loss)
from continuing operations 0.05 (0.11 ) 0.16 146.2 % Net earnings
from discontinued operations - 0.20 (0.20 ) (100.0 %)
Net earnings 0.05 0.09 (0.03 ) (40.4 %) Basic
weighted average shares 77,609 77,616 Diluted weighted
average shares 79,848 77,616
ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP EPS (1)
(Unaudited) (Dollars in thousands, except per share amounts)
For the Three Months Ended For the Twelve Months Ended March 31,
March 31, 2017 2016 2017 2016 Earnings (loss) from
continuing operations before income taxes (10,646 ) (9,858 ) 8,642
(20,280 ) Income taxes (2,565 ) (8,176 ) 4,534
(11,632 ) Net earnings (loss) from continuing operations
(8,081 ) (1,682 ) 4,108 (8,648 ) Earnings from discontinued
operations, net of tax - 111 - 15,351
Net earnings (loss) (8,081 ) (1,571 ) 4,108 6,703
Earnings (loss) per share: Basic (0.10 ) (0.02
) 0.05 0.09 Diluted (0.10 ) (0.02 ) 0.05
0.09 Excluded items: Purchased intangible
asset amortization (cost of revenue) 6,056 4,204 18,644 15,466
Non-cash stock compensation (cost of revenue and operating
expenses) 15,190 7,934 49,145 31,463 Impairment of goodwill and
other 1,315 6,100 1,315 6,829 Restructuring and merger charges
(gains, losses, and other) 7,321 4,763 10,045 12,132 Gain on sales
of assets (gains, losses, and other) (2,986 ) - (2,986 ) -
Separation and transformation costs (general and administrative)
3,066 4,686 8,639 20,826 Accelerated amortization (cost of revenue)
- 252 - 1,850 Total excluded
items, continuing operations 29,962 27,939 84,802
88,566
Earnings from continuing operations before
income taxes and excluding items
19,316 18,081 93,444 68,286 Income taxes (2) 7,139
4,262 36,652 21,456 Non-GAAP net
earnings 12,177 13,819 56,792 46,830
Non-GAAP earnings per share: Basic 0.16 0.18
0.73 0.60 Diluted 0.15 0.18
0.71 0.59 Basic weighted average shares
78,012 76,753 77,609 77,616
Diluted weighted average shares 80,912 78,386 79,848
79,099 (1) This presentation includes non-GAAP
measures. Our non-GAAP measures are not meant to be considered in
isolation or as a substitute for comparable GAAP measures, and
should be read only in conjunction with our condensed consolidated
financial statements prepared in accordance with GAAP. For a
detailed explanation of the adjustments made to comparable GAAP
measures, the reasons why management uses these measures and the
material limitations on the usefulness of these measures, please
see Appendix A. (2) Income taxes were calculated using an
effective non-GAAP tax rate of 37.0% and 23.6% in the fourth
quarter of fiscal 2017 and 2016, respectively, and 39.2% and 31.4%
for the twelve months ended March 31, 2017 and 2016, respectively.
The differences between our GAAP and non-GAAP tax rates were
primarily due to the net tax effects of the excluded items,
including the federal and state income tax benefit related to the
sale of Impact. ACXIOM
CORPORATION AND SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP INCOME (LOSS) FROM OPERATIONS (1)
(Unaudited) (Dollars in thousands) For the Three Months
Ended For the Twelve Months Ended March 31, March 31, 2017 2016
2017 2016 Income (loss) from operations (8,709 )
(7,764 ) 15,689 (13,063 ) Excluded items: Purchased
intangible asset amortization (cost of revenue) 6,056 4,204 18,644
15,466 Non-cash stock compensation (cost of revenue and operating
expenses) 15,190 7,934 49,145 31,463 Impairment of goodwill and
other 1,315 6,100 1,315 6,829 Restructuring and merger charges
(gains, losses, and other) 7,321 4,763 10,045 12,132 Gain on sales
of assets (gains, losses and other) (2,986 ) - (2,986 ) -
Separation and transformation costs (general and administrative)
3,066 4,686 8,639 20,826 Accelerated amortization (cost of revenue)
- 252 - 1,850 Total excluded
items, continuing operations 29,962 27,939 84,802
88,566 Income from operations before excluded
items 21,253 20,175 100,491 75,503 (1)
This presentation includes non-GAAP measures. Our non-GAAP measures
are not meant to be considered in isolation or as a substitute for
comparable GAAP measures, and should be read only in conjunction
with our condensed consolidated financial statements prepared in
accordance with GAAP. For a detailed explanation of the adjustments
made to comparable GAAP measures, the reasons why management uses
these measures and the material limitations on the usefulness of
these measures, please see Appendix A.
ACXIOM CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT
(Unaudited) (Dollars in thousands) For the Three
Months Ended March 31, $ % 2017 2016 Variance Variance
Revenues Marketing Services 94,269 113,342 (19,073 ) (16.8
%) Audience Solutions 86,396 80,128 6,268 7.8 % Connectivity 44,203
31,185 13,018 41.7 % Total operating segment revenues
224,867 224,655 212 0.1 % Gross profit Marketing Services
31,207 40,117 (8,910 ) (22.2 %) Audience Solutions 55,154 46,457
8,697 18.7 % Connectivity 27,742 19,617 8,125 41.4 %
Total operating segment gross profit 114,104 106,191 7,913 7.5 %
Gross margin % Marketing Services 33.1 % 35.4 % Audience
Solutions 63.8 % 58.0 % Connectivity 62.8 % 62.9 % Total operating
segment gross margin 50.7 % 47.3 % Income (loss) from
operations Marketing Services 19,513 19,301 212 1.1 % Audience
Solutions 33,598 29,598 4,000 13.5 % Connectivity 1,502 (424
) 1,926 454.3 % Total operating segment income from operations
54,613 48,475 6,138 12.7 % Operating income (loss) margin %
Marketing Services 20.7 % 17.0 % Audience Solutions 38.9 % 36.9 %
Connectivity 3.4 % -1.4 % Total operating segment operating margin
24.3 % 21.6 % Some totals may not add due to rounding
ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT (Unaudited) (Dollars in thousands)
For the Twelve Months Ended March 31, $ % 2017 2016 Variance
Variance Revenues Marketing Services 410,840 449,772 (38,932
) (8.7 %) Audience Solutions 322,065 297,846 24,219 8.1 %
Connectivity 147,342 102,470 44,872 43.8 % Total
operating segment revenues 880,247 850,088 30,159 3.5 %
Gross profit Marketing Services 140,647 152,258 (11,611 ) (7.6 %)
Audience Solutions 198,185 167,715 30,470 18.2 % Connectivity
88,251 61,199 27,052 44.2 % Total operating segment
gross profit 427,084 381,172 45,912 12.0 % Gross margin %
Marketing Services 34.2 % 33.9 % Audience Solutions 61.5 % 56.3 %
Connectivity 59.9 % 59.7 % Total operating segment gross margin
48.5 % 44.8 % Income (loss) from operations Marketing
Services 80,622 74,371 6,251 8.4 % Audience Solutions 123,238
109,598 13,640 12.4 % Connectivity 5,333 (3,298 ) 8,631
261.7 % Total operating segment income from operations 209,193
180,671 28,522 15.8 % Operating income (loss) margin %
Marketing Services 19.6 % 16.5 % Audience Solutions 38.3 % 36.8 %
Connectivity 3.6 % -3.2 % Total operating segment operating margin
23.8 % 21.3 % Some totals may not add due to rounding
ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF SEGMENT RESULTS (Unaudited) (Dollars in
thousands) For the Three Months Ended For the Twelve Months
Ended March 31, March 31, 2017 2016 2017 2016 Total
operating segment gross profit 114,104 106,191 427,084 381,172
Less: Purchased intangible asset amortization 6,056 4,204
18,644 15,466 Non-cash stock compensation 1,475 707 5,879 2,150
Accelerated amortization - 252 - 1,850
Gross profit 106,573 101,029 402,561
361,706 Total operating segment income from
operations 54,613 48,475 209,193 180,671 Less: Corporate
expenses 33,360 28,300 108,702 105,168 Purchased intangible asset
amortization 6,056 4,204 18,644 15,466 Non-cash stock compensation
15,190 7,934 49,145 31,463 Impairment of goodwill and other 1,315
6,100 1,315 6,829 Restructuring and merger charges 7,321 4,763
10,045 12,132 Gain on sales of assets (2,986 ) - (2,986 ) -
Separation and transformation costs 3,066 4,686 8,639 20,826
Accelerated amortization - 252 - 1,850
Income (loss) from operations (8,709 ) (7,764 ) 15,689
(13,063 ) Some totals may not add due to rounding
ACXIOM CORPORATION AND
SUBSIDIARIES RECONCILIATION OF ADJUSTED EBITDA (1) (Unaudited)
(Dollars in thousands) For the Three Months Ended For the
Twelve Months Ended March 31, March 31, 2017 2016 2017 2016
Net earnings (loss) from continuing operations (8,081 )
(1,682 ) 4,108 (8,648 ) Income taxes (2,565 ) (8,176 ) 4,534
(11,632 ) Other expense (1,937 ) (2,094 ) (7,047 ) (7,217 )
Income (loss) from operations (8,709 ) (7,764 ) 15,689
(13,063 ) Depreciation and amortization 21,593 22,242 82,690
85,463 Less: Deferred interest amortization - 306 -
1,206 Adjusted depreciation and amortization 21,593
21,936 82,690 84,257 EBITDA
12,884 14,172 98,379 71,194
Other adjustments: Non-cash stock compensation (cost of
revenue and operating expenses) 15,190 7,934 49,145 31,463
Impairment of goodwill and other 1,315 6,100 1,315 6,829 Gains,
losses, and other items, net 4,335 4,763 7,059 12,132 Separation
and transformation costs (general and administrative) 3,066
4,686 8,639 20,826 Other adjustments
23,906 23,483 66,158 71,250
Adjusted EBITDA 36,790 37,655 164,537 142,444
(1) This presentation includes non-GAAP measures. Our
non-GAAP measures are not meant to be considered in isolation or as
a substitute for comparable GAAP measures, and should be read only
in conjunction with our condensed consolidated financial statements
prepared in accordance with GAAP. For a detailed explanation of the
adjustments made to comparable GAAP measures, the reasons why
management uses these measures, the usefulness of these measures
and the material limitations on the usefulness of these measures,
please see Appendix A. ACXIOM
CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited) (Dollars in thousands) March 31, March 31, $ %
2017 2016 Variance Variance
Assets
Current assets: Cash and cash equivalents 170,343 189,629 (19,286 )
(10.2 %) Trade accounts receivable, net 142,768 138,650 4,118 3.0 %
Refundable income taxes 7,098 9,834 (2,736 ) (27.8 %) Other current
assets 48,310 37,897 10,413 27.5 % Total
current assets 368,519 376,010 (7,491 ) (2.0 %)
Property and equipment 476,281 528,675 (52,394 ) (9.9 %)
Less - accumulated depreciation and amortization 320,307
345,632 (25,325 ) (7.3 %) Property and equipment, net
155,974 183,043 (27,069 ) (14.8 %) Software,
net of accumulated amortization 47,638 55,735 (8,097 ) (14.5 %)
Goodwill 592,731 492,745 99,986 20.3 % Purchased software licenses,
net of accumulated amortization 7,972 10,116 (2,144 ) (21.2 %)
Deferred income taxes 10,261 6,885 3,376 49.0 % Other assets, net
51,443 25,315 26,128 103.2 % 1,234,538
1,149,849 84,689 7.4 %
Liabilities and
Stockholders' Equity
Current liabilities: Current installments of long-term debt 39,819
32,243 7,576 23.5 % Trade accounts payable 40,208 37,717 2,491 6.6
% Accrued payroll and related expenses 53,238 61,309 (8,071 ) (13.2
%) Other accrued expenses 59,861 48,254 11,607 24.1 % Deferred
revenue 37,087 44,477 (7,390 ) (16.6 %) Total
current liabilities 230,213 224,000 6,213 2.8 %
Long-term debt 189,241 157,897 31,344 19.9 % Deferred
income taxes 58,374 53,964 4,410 8.2 % Other liabilities
17,730 15,020 2,710 18.0 % Stockholders' equity: Common
stock 13,288 13,039 249 1.9 % Additional paid-in capital 1,154,429
1,082,220 72,209 6.7 % Retained earnings 602,609 598,501 4,108 0.7
% Accumulated other comprehensive income 7,999 8,590 (591 ) (6.9 %)
Treasury stock, at cost (1,039,345 ) (1,003,382 ) (35,963 ) (3.6 %)
Total stockholders' equity 738,980 698,968 40,012 5.7
% 1,234,538 1,149,849 84,689 7.4 %
ACXIOM CORPORATION AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)
For the Three Months Ended March 31, 2017
2016 Cash flows from operating activities: Net loss
(8,081 ) (1,571 ) Earnings from discontinued operations, net of tax
- (111 ) Non-cash operating activities: Depreciation and
amortization 21,593 22,242 Loss on disposal of assets 2,245 -
Impairment of goodwill and other assets 1,315 6,100 Deferred income
taxes (6,836 ) (4,266 ) Non-cash stock compensation expense 15,201
7,934 Changes in operating assets and liabilities: Accounts
receivable (5,000 ) 2,224 Other assets (8,825 ) (13,531 ) Accounts
payable and other liabilities 16,110 22,370 Deferred revenue 2,943
1,879 Net cash provided by operating activities
30,665 43,270 Cash flows from investing activities:
Capitalized software (3,306 ) (4,520 ) Capital expenditures (17,897
) (13,601 ) Data acquisition costs (418 ) (418 ) Proceeds from
sales of assets 25,494 - Equity investments (1,000 ) - Net
cash provided by (used in) investing activities 2,873
(18,539 ) Cash flows from financing activities: Payments of debt
(8,070 ) (8,048 ) Sale of common stock, net of stock acquired for
withholding taxes 6,039 4,074 Excess tax benefits from share-based
compensation 1,067 1,529 Acquisition of treasury stock -
(15,229 ) Net cash used in financing activities (964 ) (17,674 )
Cash flows from discontinued operations: From operating activities
- (3,954 ) Net cash provided by discontinued operations -
(3,954 ) Effect of exchange rate changes on cash (81 ) 136
Net change in cash and cash equivalents 32,493 3,239
Cash and cash equivalents at beginning of period 137,850
186,390 Cash and cash equivalents at end of period 170,343
189,629
Supplemental cash flow
information: Cash paid during the period for: Interest 2,478
1,925 Income taxes 2,070 96 ACXIOM CORPORATION
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands) For the Twelve Months Ended March 31,
2017 2016 Cash flows from
operating activities: Net earnings 4,108 6,703 Earnings from
discontinued operations, net of tax - (15,351 ) Non-cash operating
activities: Depreciation and amortization 82,690 85,463 Loss on
disposal of assets 1,725 232 Impairment of goodwill and other
assets 1,315 6,829 Deferred income taxes (8,818 ) (11,664 )
Non-cash stock compensation expense 49,145 31,463 Changes in
operating assets and liabilities: Accounts receivable (11,161 )
(13,014 ) Other assets (172 ) (13,632 ) Accounts payable and other
liabilities 4,302 25,529 Deferred revenue (7,304 ) 11,084
Net cash provided by operating activities 115,830 113,642
Cash flows from investing activities: Capitalized software
(14,477 ) (14,880 ) Capital expenditures (47,993 ) (47,423 ) Data
acquisition costs (881 ) (1,553 ) Proceeds from sales of assets
25,494 - Equity investments (1,000 ) - Cash paid in acquisitions,
net of cash acquired (137,383 ) (5,386 ) Net cash received in
disposition 16,988 - Net cash used in investing
activities (159,252 ) (69,242 ) Cash flows from financing
activities: Proceeds from debt 70,000 - Payments of debt (32,243 )
(87,231 ) Sale of common stock, net of stock acquired for
withholding taxes 15,709 10,417 Excess tax benefits from
share-based compensation 2,852 3,551 Acquisition of treasury stock
(30,542 ) (52,764 ) Net cash provided by (used in) financing
activities 25,776 (126,027 ) Cash flows from discontinued
operations: From operating activities - 6,323 From investing
activities - 124,506 From financing activities - (206 ) Net
cash provided by discontinued operations - 130,623
Effect of exchange rate changes on cash (1,640 ) (377 ) Net
change in cash and cash equivalents (19,286 ) 48,619 Cash and cash
equivalents at beginning of period 189,629 141,010
Cash and cash equivalents at end of period 170,343 189,629
Supplemental cash flow information: Cash paid
during the period for: Interest 7,779 8,145 Income taxes 6,866
6,100 Prepayment of debt - 55,000 Other debt payments 32,243 32,231
ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW TO EQUITY (1) (Unaudited) (Dollars in
thousands)
06/30/15 09/30/15 12/31/15
03/31/16 FY2016 06/30/16 09/30/16 12/31/16
03/31/17 FY2017 Net Cash Provided by Operating
Activities 11,997 21,357 37,018 43,270 113,642 750 35,482 48,933
30,665 115,830 Less (plus):
Capitalized software (2,797 ) (3,936 ) (3,627 ) (4,520 ) (14,880 )
(3,982 ) (3,893 ) (3,296 ) (3,306 ) (14,477 ) Capital expenditures
(12,876 ) (10,244 ) (10,702 ) (13,601 ) (47,423 ) (10,694 ) (9,845
) (9,557 ) (17,897 ) (47,993 ) Data acquisition costs (430 ) (281 )
(424 ) (418 ) (1,553 ) (20 ) (247 ) (196 ) (418 ) (881 ) Required
debt payments (8,099 ) (8,039 ) (8,045 ) (8,048 ) (32,231 ) (8,053
) (8,058 ) (8,062 ) (8,070 ) (32,243 ) Net cash received in
disposition - - - - - - 16,988 - - 16,988 Proceeds from sales of
assets - - - -
- - - -
25,494 25,494 Free Cash Flow to Equity
(12,205 ) (1,143 ) 14,220 16,683
17,555 (21,999 ) 30,427 27,822
26,468 62,718 (1) This
presentation includes non-GAAP measures. Our non-GAAP measures are
not meant to be considered in isolation or as a substitute for
comparable GAAP measures, and should be read only in conjunction
with our condensed consolidated financial statements prepared in
accordance with GAAP. For a detailed explanation of the adjustments
made to comparable GAAP measures, the reasons why management uses
these measures, the usefulness of these measures and the material
limitations on the usefulness of these measures, please see
Appendix A.
ACXIOM CORPORATION
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in thousands, except per share amounts)
Q4 FY17 to
Q4 FY16 06/30/15 09/30/15 12/31/15 03/31/16
FY2016 06/30/16 09/30/16 12/31/16
03/31/17 FY2017 % $ Revenues 196,895 207,345 221,193
224,655 850,088 214,801 217,267 223,312 224,867 880,247 0.1 % 212
Cost of revenue 117,709 121,312
125,735 123,626 488,382 122,819
120,105 116,468 118,294
477,686 -4.3 % (5,332 ) Gross profit 79,186
86,033 95,458 101,029 361,706 91,982 97,162 106,844 106,573 402,561
5.5 % 5,544
% Gross margin 40.2 % 41.5
% 43.2 % 45.0 % 42.5
% 42.8 % 44.7 % 47.8
% 47.4 % 45.7 % Operating
expenses Research and development 20,011 19,078 18,400 16,758
74,247 18,652 19,029 20,950 23,478 82,109 40.1 % 6,720 Sales and
marketing 29,494 34,259 36,581 45,842 146,176 37,348 37,847 43,048
48,433 166,676 5.7 % 2,591 General and administrative 31,743 31,519
36,793 35,330 135,385 27,506 32,866 31,620 37,721 129,714 6.8 %
2,391 Impairment of goodwill and other - 729 - 6,100 6,829 - - -
1,315 1,315 -78.4 % (4,785 ) Gains, losses and other items, net 807
2,504 4,058 4,763
12,132 314 300 2,111
4,335 7,058 -9.0 % (428 ) Total
operating expenses 82,055 88,089 95,832 108,793 374,769 83,820
90,042 97,729 115,282 386,872 6.0 % 6,489 Income (loss) from
operations (2,869 ) (2,056 ) (374 ) (7,764 ) (13,063 ) 8,162 7,120
9,115 (8,709 ) 15,689 -12.2 % (945 )
% Margin -1.5
% -1.0 % -0.2 % -3.5
% -1.5 % 3.8 % 3.3
% 4.1 % -3.9 % 1.8
% Other income (expense) Interest expense (1,885 ) (1,956 )
(1,948 ) (1,880 ) (7,669 ) (1,812 ) (1,689 ) (1,743 ) (2,137 )
(7,381 ) -13.6 % (257 ) Other, net 304 59
303 (214 ) 452 307
(207 ) 35 199 334 193.0 %
413 Total other expense (1,581 ) (1,897 ) (1,645 ) (2,094 ) (7,217
) (1,505 ) (1,896 ) (1,708 ) (1,937 ) (7,047 ) 7.5 % 157
Earnings (loss) from continuing operations before income taxes
(4,450 ) (3,953 ) (2,019 ) (9,858 ) (20,280 ) 6,657 5,224 7,407
(10,646 ) 8,642 -8.0 % (788 ) Income taxes 732 (2,608
) (1,580 ) (8,176 ) (11,632 ) 2,681
(1,916 ) 6,334 (2,565 ) 4,534
68.6 % 5,611 Net earnings (loss) from continuing
operations (5,182 ) (1,345 ) (439 ) (1,682 ) (8,648 ) 3,976 7,140
1,073 (8,081 ) 4,108 -380.4 % (6,399 ) Earnings (loss) from
discontinued operations, net of tax 4,143 12,068
(971 ) 111 15,351 -
- - - -
-100.0 % (111 ) Net earnings (loss) (1,039 ) 10,723
(1,410 ) (1,571 ) 6,703 3,976 7,140 1,073 (8,081 ) 4,108 -414.4 %
(6,510 ) Diluted earnings (loss) per share (0.01 )
0.14 (0.02 ) (0.02 ) 0.09 0.05
0.09 0.01 (0.10 )
0.05 -406.1 % (0.08 ) Diluted earnings (loss) per
share continuing operations (0.07 ) (0.02 ) (0.01 )
(0.02 ) (0.11 ) 0.05 0.09
0.01 (0.10 ) 0.05 -372.7 % (0.08 )
Some earnings (loss) per share amounts may not add due to
rounding
ACXIOM CORPORATION AND
SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP EPS (1) (Unaudited)
(Dollars in thousands, except per share amounts)
06/30/15
09/30/15 12/31/15 03/31/16 FY2016
06/30/16 09/30/16 12/31/16 03/31/17
FY2017 Earnings (loss) from continuing operations
before income taxes (4,450 ) (3,953 ) (2,019 ) (9,858 ) (20,280 )
6,657 5,224 7,407 (10,646 ) 8,642 Income taxes 732
(2,608 ) (1,580 ) (8,176 ) (11,632 )
2,681 (1,916 ) 6,334 (2,565 ) 4,534
Net earnings (loss) from continuing operations (5,182
) (1,345 ) (439 ) (1,682 ) (8,648 ) 3,976 7,140 1,073 (8,081 )
4,108 Earnings (loss) from discontinued operations, net of
tax 4,143 12,068 (971 ) 111
15,351 - - - -
- Net earnings (loss) (1,039 )
10,723 (1,410 ) (1,571 ) 6,703
3,976 7,140 1,073 (8,081 ) 4,108
Earnings (loss) per share: Basic (0.01 )
0.14 (0.02 ) (0.02 ) 0.09
0.05 0.09 0.01 (0.10 ) 0.05
Diluted (0.01 ) 0.14 (0.02 )
(0.02 ) 0.09 0.05 0.09
0.01 (0.10 ) 0.05 Excluded items:
Purchased intangible asset amortization (cost of revenue) 3,754
3,754 3,754 4,204 15,466 4,077 3,890 4,621 6,056 18,644 Non-cash
stock compensation (cost of revenue and operating expenses) 8,123
7,360 8,046 7,934 31,463 8,590 11,938 13,427 15,190 49,145
Impairment of goodwill and other - 729 - 6,100 6,829 - - - 1,315
1,315 Restructuring and merger charges (gains, losses, and other)
807 2,504 4,058 4,763 12,132 314 300 2,111 7,321 10,045 Gain on
sales of assets (gains, losses and other) - - - - - - - - (2,986 )
(2,986 ) Separation and transformation costs (general and
administrative) 3,414 6,098 6,628 4,686 20,826 - 1,455 4,118 3,066
8,639 Accelerated amortization (cost of revenue) 1,442
78 78 252 1,850
- - - - -
Total excluded items, continuing operations 17,540
20,523 22,564 27,939
88,566 12,981 17,583 24,277
29,962 84,803
Earnings from continuing operations before
income taxes and excluding items
13,090 16,570 20,545 18,081 68,286 19,638 22,807 31,684 19,315
93,444 Income taxes 5,632 5,163
6,399 4,262 21,456 7,852
8,910 12,751 7,139 36,652
Non-GAAP net earnings 7,458 11,407
14,146 13,819 46,830
11,786 13,897 18,933 12,177
56,792 Non-GAAP earnings per share:
Basic 0.10 0.15 0.18 0.18
0.60 0.15 0.18 0.24
0.16 0.73 Diluted 0.09
0.14 0.18 0.18
0.59 0.15 0.18 0.24 0.15
0.71 Basic weighted average shares 77,918
77,960 77,831 76,753
77,616 77,471 77,446
77,507 78,012 77,609 Diluted
weighted average shares 79,352 79,310
79,346 78,386 79,099 79,353
79,277 79,851 80,912
79,848 Some totals may not add due to rounding
(1) This presentation includes non-GAAP measures. Our non-GAAP
measures are not meant to be considered in isolation or as a
substitute for comparable GAAP measures, and should be read only in
conjunction with our condensed consolidated financial statements
prepared in accordance with GAAP. For a detailed explanation of the
adjustments made to comparable GAAP measures, the reasons why
management uses these measures and the material limitations on the
usefulness of these measures, please see Appendix A. ACXIOM
CORPORATION AND SUBSIDIARIES RESULTS BY SEGMENT (Unaudited)
(Dollars in thousands)
Q4 FY17 to Q4 FY16 06/30/15 09/30/15 12/31/15
03/31/16 FY2016 06/30/16 09/30/16
12/31/16 03/31/17 FY2017 % $
Revenues:
Marketing Services 107,726 112,979 115,725 113,342 449,772 109,715
105,679 101,177 94,269 410,840 -16.8 % (19,073 ) Audience Solutions
68,550 72,122 77,046 80,128 297,846 73,744 78,526 83,399 86,396
322,065 7.8 % 6,268 Connectivity 20,619 22,244
28,422 31,185 102,470
31,342 33,062 38,736
44,203 147,342 41.7 % 13,017 Total
operating segment revenues 196,895 207,345
221,193 224,655 850,088
214,801 217,267 223,312
224,867 880,247 0.1 % 212 Gross profit:
Marketing Services 36,034 37,545 38,561 40,117 152,258
37,466 34,480 37,494 31,207 140,647 -22.2 % (8,910 ) Audience
Solutions 36,824 39,170 45,265 46,457 167,715 41,912 47,998 53,120
55,154 198,185 18.7 % 8,698 Connectivity 11,953
13,499 16,130 19,617
61,199 17,575 19,843 23,091
27,742 88,251 41.4 % 8,125
Total operating segment gross profit 84,811
90,214 99,956 106,191
381,172 96,953 102,321 113,705
114,104 427,084 7.5 % 7,913
Gross margin: Marketing Services 33.4 % 33.2 % 33.3 %
35.4 % 33.9 % 34.1 % 32.6 % 37.1 % 33.1 % 34.2 % Audience Solutions
53.7 % 54.3 % 58.8 % 58.0 % 56.3 % 56.8 % 61.1 % 63.7 % 63.8 % 61.5
% Connectivity 58.0 % 60.7 % 56.8 % 62.9 % 59.7 % 56.1 % 60.0 %
59.6 % 62.8 % 59.9 % Total operating segment gross margin
43.1 % 43.5 % 45.2 % 47.3 % 44.8 % 45.1 % 47.1 % 50.9 % 50.7 % 48.5
% Income (loss) from operations: Marketing Services
16,853 17,908 20,309 19,301 74,371 20,145 19,837 21,127 19,513
80,622 1.1 % 212 Audience Solutions 24,087 25,190 30,723 29,598
109,598 25,096 29,972 34,572 33,598 123,238 13.5 % 4,000
Connectivity (791 ) (1,068 ) (1,015 ) (424 )
(3,298 ) 291 1,663 1,877
1,502 5,333 454.3 % 1,926 Total
operating segment income from operations 40,149
42,030 50,017 48,475
180,671 45,532 51,472 57,576
54,613 209,193 12.7 % 6,138
Operating income (loss) margin: Marketing Services
15.6 % 15.9 % 17.5 % 17.0 % 16.5 % 18.4 % 18.8 % 20.9 % 20.7 % 19.6
% Audience Solutions 35.1 % 34.9 % 39.9 % 36.9 % 36.8 % 34.0 % 38.2
% 41.5 % 38.9 % 38.3 % Connectivity -3.8 % -4.8 % -3.6 % -1.4 %
-3.2 % 0.9 % 5.0 % 4.8 % 3.4 % 3.6 % Total operating segment
operating margin 20.4 % 20.3 % 22.6 % 21.6 % 21.3 % 21.2 % 23.7 %
25.8 % 24.3 % 23.8 % Some totals may not add due to
rounding. ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP EPS GUIDANCE (1)
(Unaudited) (Dollars in thousands, except per share amounts)
For the year ending March 31, 2018 Earnings before
income taxes 500 Income taxes 7,500 Net
loss (7,000 ) Diluted loss per share $ (0.09 )
Excluded items: Purchased intangible asset amortization 24,000
Non-cash stock compensation 66,000 Gains, losses and other items,
net 5,000 Separation and transformation costs 15,000
Total excluded items 110,000 Earnings
before income taxes and excluding items 110,500 Income taxes
(2) 44,200 Non-GAAP net earnings 66,300
Non-GAAP diluted earnings per share $ 0.80
Basic weighted average shares 80,000 Diluted weighted
average shares 83,000 (1) This presentation includes non-GAAP
measures. Our non-GAAP measures are not meant to be considered in
isolation or as a substitute for comparable GAAP measures, and
should be read only in conjunction with our condensed consolidated
financial statements prepared in accordance with GAAP. For a
detailed explanation of the adjustments made to comparable GAAP
measures, the reasons why management uses these measures, the
usefulness of these measures and the material limitations on the
usefulness of these measures, please see Appendix A. (2)
Income taxes were calculated using an effective non-GAAP tax rate
of 40.0%. The difference between our GAAP and Non-GAAP tax rates
was due to the effect of excluded items.
ACXIOM CORPORATION
APPENDIX A
Q4 FISCAL 2017 FINANCIAL RESULTS EXPLANATION OF NON-GAAP MEASURES
To supplement our financial results, we use non-GAAP
measures which exclude certain acquisition related expenses,
non-cash stock compensation and restructuring charges. We believe
these measures are helpful in understanding our past performance
and our future results. Our non-GAAP financial measures and
schedules are not meant to be considered in isolation or as a
substitute for comparable GAAP measures and should be read only in
conjunction with our consolidated GAAP financial statements. Our
management regularly uses these non-GAAP financial measures
internally to understand, manage and evaluate our business and to
make operating decisions. These measures are among the primary
factors management uses in planning for and forecasting future
periods. Compensation of our executives is also based in part on
the performance of our business based on these non-GAAP measures.
Our non-GAAP financial measures, including non-GAAP earnings
per share and adjusted EBITDA, reflect adjustments based on the
following items, as well as the related income tax effects when
applicable:
Purchased intangible
asset amortization: We incur amortization of purchased
intangibles in connection with our acquisitions. Purchased
intangibles include (i) developed technology, (ii) customer
relationships, and (iii) trade names. We expect to amortize for
accounting purposes the fair value of the purchased intangibles
based on the pattern in which the economic benefits of the
intangible assets will be consumed as revenue is generated.
Although the intangible assets generate revenue for us, we exclude
this item because this expense is non-cash in nature and because we
believe the non-GAAP financial measures excluding this item provide
meaningful supplemental information regarding our operational
performance.
Non-cash stock
compensation: Non-cash stock compensation consists of
charges for associate restricted stock units, performance shares
and stock options in accordance with current GAAP related to
stock-based compensation including expense associated with
stock-based compensation related to unvested options assumed in
connection with our acquisitions. As we apply stock-based
compensation standards, we believe that it is useful to investors
to understand the impact of the application of these standards to
our operational performance. Although stock-based compensation
expense is calculated in accordance with current GAAP and
constitutes an ongoing and recurring expense, such expense is
excluded from non-GAAP results because it is not an expense that
typically requires or will require cash settlement by us and
because such expense is not used by us to assess the core
profitability of our business operations.
Restructuring
charges: During the past several years, we have initiated
certain restructuring activities in order to align our costs in
connection with both our operating plans and our business
strategies based on then-current economic conditions. As a result,
we recognized costs related to termination benefits for associates
whose positions were eliminated, lease termination charges, and
leasehold improvement write offs. During the current year, we also
recognized gains on the sale of the Acxiom Impact business and
certain real estate. These items, reported as gains, losses, and
other items, net, are excluded from non-GAAP results because such
amounts are not used by us to assess the core profitability of our
business operations.
Merger
expenses: During the current year we have incurred certain
third party expenses associated with the acquisitions of Arbor and
Circulate. These items, reported as gains, losses and other items,
net, are excluded from non-GAAP results because such amounts are
used by us to assess the core profitability of our business
operations.
Separation and
transformation costs: In prior years, we incurred
significant expenses in connection with the separation of our IT
Infrastructure Management ("ITO") and the subsequent transformation
of our remaining operating segments. This work enabled us to
transform our external reporting and provide investors with
enhanced transparency and more granular segment-level disclosures
in addition to facilitating the ITO disposition. In the current
year, we are incurring expenses to further separate the financial
statements of our three operating segments, with particular focus
on segment-level balance sheets, and to evaluate portfolio
priorities. Our criteria for excluding separation and
transformation expenses from our non-GAAP measures is as follows:
1) projects are discrete in nature; 2) excluded expenses consist
only of third-party consulting fees that we would not incur
otherwise; and 3) we do not exclude employee related expenses or
other costs associated with the ongoing operations of our business.
We expect to complete these current projects in the next fiscal
year. We believe excluding these items from our non-GAAP financials
measures is useful for investors and provides meaningful
supplemental information.
Our non-GAAP financial schedules are:
Non-GAAP EPS and
Non-GAAP Income (loss) from Operations: Our non-GAAP
earnings per share and Non- GAAP income (loss) from operations
reflect adjustments as described above, as well as the related tax
effects where applicable.
Adjusted
EBITDA: Adjusted EBITDA is defined as net income (loss) from
continuing operations before income taxes, other expenses,
depreciation and amortization, and including adjustments as
described above. We use Adjusted EBITDA to measure our performance
from period to period both at the consolidated level as well as
within our operating segments and to compare our results to those
of our competitors. We believe that the inclusion of Adjusted
EBITDA provides useful supplementary information to and facilitates
analysis by investors in evaluating the Company's performance and
trends. The presentation of Adjusted EBITDA is not meant to be
considered in isolation or as an alternative to net earnings as an
indicator of our performance.
Free Cash Flow to
Equity: To supplement our statement of cash flows, we use a
non-GAAP measure of cash flow to analyze cash flows generated from
operations. Free cash flow to equity is defined as operating cash
flow less cash used by investing activities (excluding the impact
of cash paid in acquisitions), less required payments of debt, and
excluding the impact of discontinued operations. Management
believes that this measure of cash flow is meaningful since it
represents the amount of money available from continuing operations
for the Company's discretionary spending after funding all required
obligations including scheduled debt payments. The presentation of
non-GAAP free cash flow to equity is not meant to be considered in
isolation or as an alternative to cash flows from operating
activities as a measure of liquidity.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170516006685/en/
Acxiom Investor RelationsLauren Dillard,
650-372-2242investor.relations@acxiom.comEACXM
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