Acxiom's First Quarter Revenue Up Ten Percent; Earnings Meet Expectations.Business Editors & Technology Writers LITTLE ROCK, Ark.--(BUSINESS WIRE)--July 23, 2002 Acxiom Acxiom is a customer and data information management company, offering a range of products and services including information technology outsourcing. It has been described as "one of the biggest companies you've never heard of. (R) Corporation (Nasdaq:ACXM) today reported results for its first fiscal quarter ended June June: see month. 30, 2002. Revenue and earnings per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) met earlier guidance and EPS met consensus analysts' estimates. Acxiom will hold a conference call at 8:00 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT on July July: see month. 24, 2002 to discuss this information further. Interested parties are invited to listen to the call, which will be broadcast via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.acxiom.com. "In this continued tough economic climate we were pleased to achieve the revenue and earnings targets we had established for the first quarter," Company Leader Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by D. Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. said. "This is particularly gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. since this is seasonally our weakest quarter." Morgan also noted that "AbiliTec(TM) continues to deliver great value for our clients, who more and more are looking to Acxiom to serve as their enterprise-wide data management partner. AbiliTec's unparalleled Customer Data Integration (CDI CDI compact disc interactive: a system for storing a mix of software, data, audio, and compressed video for interactive use under processor control ) capabilities are at the heart of the customer management solutions we create and deliver, and it has driven much greater efficiency inside Acxiom as well, allowing us to generate $20 million more in revenue in the first quarter this year than last year with significantly fewer associates." Highlights of Acxiom's first quarter performance include: -- A value screen for stocks selling below "fair market value" -- A p/e multiple screen eliminating stocks with p/e multiples above the S&P 500 -- A screen to select stocks with strong earnings growth and momentum -- The editors' own due diligence "gut check" -- Companies with low debt-to-capital ratios -- A screen to eliminate serial acquirers Over the last four quarters, the Company has generated operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of $250 million and free cash flow, excluding investments in joint ventures and acquisitions, of $188 million. Free cash flow was $177 million including those investments. "Our emphasis on cash flow has generated very positive results over the last four quarters, and it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have an emphasis we'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall continue at every level of our business," said Rodger S Rodger is a surname, and may refer to:
A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. from a high of $241 million during June 2001 to $2 million as of yesterday." Morgan added, "We think it is particularly notable in this economic climate that we won new business from industry-leading companies such as Charles Schwab Charles Schwab can refer to:
U-shaped stainless steel or vitallium units with sharp points used for surgical fixation. epiphyseal staples used to staple epiphysis to metaphysis; have metal bracing at the corners. , Inc.; Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. ; Gateway, Inc.; Reiman Publications; Primedia Primedia Inc., NYSE: PRM, formerly known as K-III Communications, is a New York City-based mass media corporation. It is publicly owned, trading on the New York Stock Exchange, but private equity giant KKR holds a controlling stake in the company. Inc.; and Groupe Danone Groupe Danone (Euronext: BN, NYSE: DA) (known as Dannon in the United States) is a food-product company with its central headquarters in Paris, France. It claims world leadership in dairy products,[1] - the French company most Americans know as the brand Dannon. "And Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. Corp., E*TRADE E*TRADE Financial Corporation (NASDAQ: ETFC) is a financial services company based in New York, NY, United States. It is a holding company, the major business of which is an online discount stock brokerage service for self-directed investors. Group and Canadian Tire Canadian Tire (TSX: CTC, CTC.A) is one of Canada's 35 largest publicly traded companies and operates an inter-related network of businesses engaged in retailing (hardgoods, apparel and petroleum) and services (financial and automotive). Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. were among the clients that signed contract renewals; in fact, as is usually the case, we renewed or upgraded all contracts that came due during the quarter. We also announced significant new business with several leading companies in the travel and entertainment industry, including MGM Mirage MGM Mirage (NYSE: MGM) is a Las Vegas, Nevada-based business engaged in the development, ownership and operation of hotels and casinos throughout the world. The company began operations on May 31, 2000 after the completion of a merger of MGM Grand Inc. and Mirage Resorts, Inc. , Jet Blue Airways airways Anatomy The 'pipes'–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways. Corp., Travelocity.com and The Broadmoor." Recognition Fortune magazine today announced that Acxiom was selected as a member of its new Fortune 40, its editors' selections of "the 40 stocks that can beat this market." The magazine said it screened 4,000 stocks through a comprehensive methodology that resulted in identifying "inexpensive stocks with momentum." Fortune said the stocks were selected after passing several evaluations or "screens" including: -- A value screen for stocks selling below "fair market value" -- A p/e multiple screen eliminating stocks with p/e multiples above the S&P 500 -- A screen to select stocks with strong earnings growth and momentum -- The editors' own due diligence "gut check" -- Companies with low debt-to-capital ratios -- A screen to eliminate serial acquirers Fortune stated that the Fortune 40 is "...our best-ideas list for the year ahead. ... It's a powerful group - one we think has a strong chance of beating the market over the next 12 months. ... Given our well-constructed methodology, we believe that goal is within reach." Acxiom was also cited for its potential role in homeland defense initiatives with the federal government. Outlook The financial projections stated today are based on the Company's current expectations. These projections are forward looking, and actual results may differ materially. These projections do not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed in the future. Our current assumption concerning general economic activity is that we expect some improvement during this fiscal year and our guidance is structured accordingly. For the second quarter ending September 30, 2002, the Company expects revenue of $234 million to $237 million and earnings per share of $.14 to $.16. In the first quarter, the Company began phasing in salary reinstatements. During the first quarter, these reinstatements amounted to approximately $2.5 million and are expected to amount to approximately $3.5 million in the second quarter. For the fiscal year ending March 31, 2003, the Company reconfirms that it expects revenue of approximately $970 million. This represents a revenue growth rate of 15% over fiscal 2002, adjusting for previously announced divestitures. Earnings per share are expected to be $.70, which takes into account approximately $16 million in phased reinstatement Reinstatement The restoration of an insurance policy after it has lapsed for nonpayment of premiums. of salary reductions made in the 2002 fiscal year. The Company projects free cash flow of approximately $150 million for fiscal 2003. The free cash flow contained in this release refers to free cash flow excluding the impact of investments in joint ventures or other business alliances and cash paid and/or received in divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). activities. The Company has no way to forecast possible acquisitions, joint ventures and business alliances that are not currently contemplated, but which may subsequently present opportunities to advance the business. About Acxiom Corporation Acxiom Corporation (Nasdaq: ACXM) integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration (CDI) technology, data content, database services, IT outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , consulting and analytics, and privacy leadership. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas Little Rock, Arkansas required military intervention to desegregate schools (1957–1958). [Am. Hist.: Van Doren, 556–557] See : Bigotry , with locations throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and in the United Kingdom, France and Australia. This release and tomorrow's conference call contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to certain risks and uncertainties that could cause actual results to differ materially; such statements include but are not necessarily limited to the following: 1) that the business pipeline and that our current cost structure will allow the Company to continue to meet or exceed expectations; 2) that the revenue, earnings, cash flow, depreciation, amortization, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , capital expenditures, deferrals, capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of deferred expenses and software development costs, growth projections and phased reinstatement of salary reductions for future time periods will be within the indicated ranges; 3) that the Company will be able to continue to focus on all areas of cash flow including receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed collections, expense management and a rigorous capital expenditure process; 4) that the Company expects to generate positive free cash flow of approximately $150 million for fiscal year 2003; 5) that the Company expects to see continued improvement in revenues and earnings for fiscal 2003; 6) that AbiliTec(R) will continue to be a key differentiator of Acxiom solutions; 7) that the Company remains confident and optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about future performance; 8) that the Company has significant future opportunities related to providing data and data integration services to the public sector; 9) that the Company has significant future opportunities in security, fraud detection, risk management and privacy arenas; 10) that the company will be able to use certain tax loss carryforwards tax loss carryforward See carryforward. ; 11) that a financial news publication has predicted that Acxiom is one of the companies that they expect to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the stock market over the next twelve months. The following are important factors, among others, that could cause actual results to differ materially from these forward-looking statements: The possibility that certain contracts may not be closed or closed within the anticipated time frames; the possibility that economic or other conditions might lead to a reduction in demand for the Company's products and services; the possibility that the current economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. may worsen wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. worsen Verb to make or become worse worsening adjn and/or persist for an unpredictable period of time; the possibility that economic conditions will not improve as rapidly as expected; the possibility that significant customers may experience extreme, severe economic difficulty; the possibility that sales cycles may lengthen length·en tr. & intr.v. length·ened, length·en·ing, length·ens To make or become longer. length  en·er n. ; the
continued ability to attract and retain qualified technical and
leadership associates and the possible loss of associates to other
organizations; the ability to properly motivate the sales force and
other associates of the Company; the ability to achieve cost reductions
and avoid unanticipated costs; the continued availability of credit upon
satisfactory terms and conditions; the introduction of competent,
competitive products, technologies or services by other companies;
changes in consumer or business information industries and markets; the
Company's ability to protect proprietary information and technology
or to obtain necessary licenses on commercially reasonable terms; the
difficulties encountered when entering new markets or industries;
changes in the legislative, accounting, regulatory and consumer
environments affecting the Company's business including but not
limited to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.When a person begins a civil lawsuit, the person enters into a process called litigation. , legislation, regulations and customs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's ability to collect, manage, aggregate and use data; data suppliers might withdraw data from the Company, leading to the Company's inability to provide certain products and services; short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. contracts affect the predictability of the Company's revenues; the possibility that the amount of ad hoc For this purpose. Meaning "to this" in Latin, it refers to dealing with special situations as they occur rather than functions that are repeated on a regular basis. See ad hoc query and ad hoc mode. project work will not be as expected; the potential loss of data center capacity or interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. of telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. links or power sources; postal rate increases that could lead to reduced volumes of business; customers that may cancel or modify their agreements with the Company; the potential disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of the services of the United States Postal Service postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval , their global counterparts and other delivery systems; the successful integration of any acquired businesses; and other competitive factors. With respect to the providing of products or services outside the Company's primary base of operations Noun 1. base of operations - installation from which a military force initiates operations; "the attack wiped out our forward bases" base air base, air station - a base for military aircraft army base - a large base of operations for an army in the U.S., all of the above factors and the difficulty of doing business in numerous sovereign jurisdictions due to differences in culture, laws and regulations. Other factors are detailed from time to time in the Company's periodic reports and registration statements filed with the United States Securities and Exchange Commission. Acxiom believes that it has the product and technology offerings, facilities, associates and competitive and financial resources for continued business success, but future revenues, costs, margins and profits are all influenced by a number of factors, including those discussed above, all of which are inherently difficult to forecast. Acxiom undertakes no obligation to update the information contained in this press release or any other forward-looking statement. Acxiom and AbiliTec are registered trademarks of Acxiom Corporation.
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
For the Three Months Ended
June 30,
-----------------------------
2002 2001
-----------------------------
Revenue 225,406 205,038
Operating costs and expenses:
Salaries and benefits 74,792 93,548
Computer, communications and
other equipment 63,026 81,727
Data costs 28,944 30,789
Other operating costs and expenses 37,413 46,408
Gains, losses and nonrecurring
items, net (457) 45,342
----------- -----------
Total operating costs
and expenses 203,718 297,814
----------- -----------
Income (loss) from operations 21,688 (92,776)
----------- -----------
Other income (expense):
Interest expense (5,327) (6,742)
Other, net (9) (791)
----------- -----------
(5,336) (7,533)
----------- -----------
Earnings (loss) before income taxes 16,352 (100,309)
Income taxes 5,887 (36,670)
----------- -----------
Net earnings (loss) 10,465 (63,639)
=========== ===========
Earnings (loss) per share:
Basic 0.12 (0.71)
=========== ===========
Diluted 0.12 (0.71)
=========== ===========
ACXIOM CORPORATION AND SUBSIDIARIES
REVENUES BY SEGMENT
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
June 30,
--------------------------------
2002 2001
--------------------------------
Services 169,369 149,427
Data and Software Products 38,372 32,850
I. T. Management 56,461 52,966
Intercompany eliminations (38,796) (30,205)
------------- --------------
Total Revenue 225,406 205,038
============= ==============
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
June 30, March 31,
2002 2002
----------- -----------
Assets
------
Current assets:
Cash and cash equivalents $ 2,279 $ 5,676
Trade accounts receivable, net 185,883 185,579
Deferred income taxes 48,716 48,716
Refundable income taxes 3,406 41,652
Other current assets 85,780 78,602
----------- -----------
Total current assets 326,064 360,225
----------- -----------
Property and equipment 338,781 331,177
Less - accumulated depreciation
and amortization 159,024 149,402
----------- -----------
Property and equipment, net 179,757 181,775
----------- -----------
Software, net of accumulated
amortization 66,525 61,437
Excess of cost over fair value
of net assets acquired 181,941 174,655
Purchased software licenses,
net of accumulated amortization 170,219 169,854
Unbilled and notes receivable,
excluding current portions 34,547 40,358
Deferred costs, net of
accumulated amortization 119,961 125,843
Other assets, net 38,078 42,687
----------- -----------
$ 1,117,092 $ 1,156,834
----------- -----------
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Current installments of
long-term debt 29,398 23,274
Trade accounts payable 26,946 29,472
Accrued merger, integration
and impairment costs 2,456 3,022
Accrued payroll and
related expenses 12,258 17,612
Other accrued expenses 33,377 43,176
Deferred revenue 60,358 61,114
----------- -----------
Total current liabilities 164,793 177,670
----------- -----------
Long-term debt, excluding
current installments 343,327 396,850
Deferred income taxes 78,828 71,383
Commitments and contingencies
Stockholders' equity:
Common stock 8,794 8,734
Additional paid-in capital 287,876 281,355
Retained earnings 242,256 231,791
Accumulated other
comprehensive loss (6,029) (8,609)
Treasury stock, at cost (2,753) (2,340)
----------- -----------
Total stockholders' equity 530,144 510,931
----------- -----------
$ 1,117,092 $ 1,156,834
----------- -----------
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
June 30,
2002 2001
---------- ----------
Cash flows from operating activities:
Net earnings (loss) 10,465 (63,639)
Non-cash operating activities:
Depreciation and amortization 28,174 42,446
Loss on disposal or impairment
of assets, net - 45,354
Deferred income taxes 7,552 (34,742)
Changes in operating assets
and liabilities:
Accounts receivable 85 15,654
Other assets 34,079 (5,194)
Accounts payable and
other liabilities (19,546) (37,024)
Merger, integration and
impairment costs (566) (2,135)
----------- ------------
Net cash provided by operating
activities 60,243 (39,280)
----------- ------------
Cash flows from investing activities:
Proceeds received from the
disposition of assets 45 127
Capitalized software (8,652) (5,935)
Capital expenditures (1,916) (8,867)
Investments in joint ventures
and other companies (1,052) (3,689)
Deferral of costs (3,240) (8,612)
Net cash paid in acquisitions (772) -
----------- -----------
Net cash used by
investing activities (15,587) (26,976)
----------- -----------
Cash flows from financing activities:
Proceeds from debt 73,707 102,113
Payments of debt (127,972) (20,861)
Sale of common stock 6,168 3,210
Payments on equity
forward contracts - (22,544)
----------- ------------
Net cash used by
financing activities (48,097) 61,918
----------- ------------
Effect of exchange rate
changes on cash 44 (9)
----------- ------------
Net increase (decrease) in
cash and cash equivalents (3,397) (4,347)
Cash and cash equivalents at
beginning of period 5,676 14,176
----------- ------------
Cash and cash equivalents
at end of period 2,279 9,829
----------- ------------
Supplemental cash flow information:
Cash paid (received) during the
period for:
Interest 6,702 6,714
Income taxes (39,906) 12,192
----------- ------------
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion