Conference Call Scheduled for January 14, 2020
at 8:30 am EST
ACI Worldwide (NASDAQ: ACIW), a leading global provider of
electronic payment and banking solutions, today announced
preliminary unaudited financial results for the full year ended
December 31, 2019 and guidance for 2020.
Based on preliminary information available at this time, for the
year ended December 31, 2019, we currently expect:
- Revenue of between $1.255 billion and $1.265 billion, up over
20% over 2018, but below our prior guidance of $1.315 billion to
$1.345 billion; and
- Adjusted EBITDA of between $300 million and $310 million, up
over 20% over 2018, but below our prior guidance of $360 million to
$380 million.
“Our revenue and adjusted EBITDA were negatively impacted in
2019 primarily by a large customer expansion contract that did not
sign as expected in December,” said Craig Saks, Interim President
and CEO of ACI. “Our business continues to grow, and we believe
that we are very well positioned to take advantage of positive
trends in payments. We expect double digit revenue growth in 2020
and are reiterating our previously issued 2020 adjusted EBITDA
guidance,” Saks added.
2020 Guidance
For 2020, we expect:
- Revenue to be between $1.48 billion and $1.51 billion; and
- Adjusted EBITDA to be in the range of $425 million to $445
million.
Our 2020 guidance does not include the large customer expansion
contract we had expected to book in December.
Conference Call
ACI will host a conference call to discuss preliminary 2019
results and 2020 guidance tomorrow, January 14, 2020, at 8:30 am
EST. Interested persons may access a real-time audio broadcast of
the teleconference at http://investor.aciworldwide.com/ or use the
following numbers for dial-in participation: US/Canada: (866)
914-7436, International/Local: +1 (817) 385-9117. Please provide
your name, the conference name ACI Worldwide, Inc. and conference
ID code 8988247. There will be a replay available for two weeks on
(855) 859-2056 for US/Canada and +1 (404) 537-3406 for
International/Local dial-In participants.
Nature of Information
The 2019 amounts in this press release are preliminary unaudited
estimates based on currently available information and are subject
to change as ACI completes its year-end accounting procedures and
its audited financial statements for 2019. ACI expects to announce
its audited 2019 results in the second half of February 2020.
About ACI Worldwide
ACI Worldwide, the Universal Payments (UP) company, powers
electronic payments for more than 5,000 organizations around the
world. More than 1,000 of the largest financial institutions and
intermediaries as well as 300 of the leading global retailers rely
on ACI to execute $14 trillion each day in payments. In addition,
thousands of organizations utilize our electronic bill presentment
and payment services. Through our comprehensive suite of software
and SaaS-based solutions, we deliver real-time, any-to-any payments
capabilities and enable the industry’s most complete omni-channel
payments experience. To learn more about ACI, please visit
www.aciworldwide.com. You can also find us on Twitter
@ACI_Worldwide.
Adjusted EBITDA
To supplement our financial results presented on a GAAP basis,
we use adjusted EBITDA, which excludes significant
transaction-related expenses, as well as other significant non-cash
expenses such as depreciation, amortization and stock-based
compensation, that we believe are helpful in understanding our past
financial performance and our future results. The presentation of
adjusted EBITDA should be considered in addition to our GAAP
results and are not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with GAAP.
We believe that adjusted EBITDA reflects an additional way to
view aspects of our operations that, when viewed with our GAAP
results, provide a more complete understanding of factors and
trends affecting our business. Adjusted EBITDA is defined as net
income plus income tax expense (benefit), net interest income
(expense), net other income (expense), depreciation, amortization
and stock-based compensation, as well as significant
transaction-related expenses. Net income is the most closely
comparable GAAP measure, but we are unable to present net income at
this time without unreasonable effort or expense given that, among
other things, we are in the process of our year-end accounting
procedures.
Forward-Looking Statements
This press release contains forward-looking statements based on
current expectations that involve a number of risks and
uncertainties, including our estimates for our results of
operations for 2020, as wells as preliminary estimates for our 2019
results. Generally, forward-looking statements do not relate
strictly to historical or current facts and may include words or
phrases such as “expects” and words and phrases of similar impact.
The forward-looking statements are made pursuant to safe harbor
provisions of the Private Securities Litigation Reform Act of
1995.
Forward-looking statements in this press release include, but
are not limited to, statements regarding our (1) preliminary 2019
revenue and adjust EBITDA, (2) business continuing to grow, (3)
being well positioned to take advantage of positive trends in
payments and (4) revenue and adjusted EBITDA in 2020.
All of the foregoing forward-looking statements are expressly
qualified by the risk factors discussed in our filings with the
Securities and Exchange Commission. Such factors include, but are
not limited to, the dependence of our business on new or renewal
contracts and the inherent difficulty of predicting when new and
renewal contracts will be signed and their terms, increased
competition, the success of our Universal Payments strategy, demand
for our products, restrictions and other financial covenants in our
debt agreements, consolidations and failures in the financial
services industry, customer reluctance to switch to a new vendor,
the accuracy of management’s backlog estimates, the maturity of
certain products, failure to obtain renewals of customer contracts
or to obtain such renewals on favorable terms, delay or
cancellation of customer projects or inaccurate project completion
estimates, volatility and disruption of the capital and credit
markets and adverse changes in the global economy, our existing
levels of debt, impairment of our goodwill or intangible assets,
litigation, future acquisitions, strategic partnerships and
investments, integration of and achieving benefits from the
Speedpay acquisition, the complexity of our products and services
and the risk that they may contain hidden defects or be subjected
to security breaches or viruses, compliance of our products with
applicable legislation, governmental regulations and industry
standards, our ability to protect customer information from
security breaches or attacks, our compliance with privacy
regulations, our ability to adequately defend our intellectual
property, exposure to credit or operating risks arising from
certain payment funding methods, the cyclical nature of our revenue
and earnings and the accuracy of forecasts due to the concentration
of revenue-generating activity during the final weeks of each
quarter, business interruptions or failure of our information
technology and communication systems, our offshore software
development activities, risks from operating internationally,
including fluctuations in currency exchange rates, exposure to
unknown tax liabilities, volatility in our stock price, and
potential claims associated with our sale and transition of our CFS
assets and liabilities. For a detailed discussion of these risk
factors, parties that are relying on the forward-looking statements
should review our filings with the Securities and Exchange
Commission, including our most recently filed Annual Report on Form
10-K and our Quarterly Reports on Form 10-Q.
© Copyright ACI Worldwide, Inc. 2020
ACI, ACI Worldwide, the ACI logo, ACI Universal Payments, UP,
the UP logo and all ACI product/solution names are trademarks or
registered trademarks of ACI Worldwide, Inc., or one of its
subsidiaries, in the United States, other countries or both. Other
parties' trademarks referenced are the property of their respective
owners.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200113005911/en/
John Kraft, Vice President, Investor Relations & Strategic
Analysis ACI Worldwide 239-403-4627 john.kraft@aciworldwide.com
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