Acxiom Announces Fourth Quarter and Fiscal Year Results in Line With Expectations; Subscription Revenue Recognition Policy Adopted for AbiliTec.Business Editors LITTLE ROCK, Ark.--(BUSINESS WIRE)--May 15, 2001 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 revenue and earnings for the fourth quarter and for the full fiscal year ended March 31, 2001 that met expectations the Company established on March 30, 2001. Acxiom also reported that effective April 1, 2001, it would begin recognizing all AbiliTec(TM) revenue on a subscription basis, a change that company leaders say will yield many long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. benefits. "We have changed the contract terms of AbiliTec in a manner that we believe will better suit our customers' needs. These changes mean that we will now book all AbiliTec revenue on a monthly basis over the term of the contract. We will continue to sell AbiliTec under long-term contracts with the software license fees due up front. This will help improve cash flow and make Acxiom's business performance easier to predict and track," Company Leader Charles Morgan Charles Morgan is the name of:
adj. 1. Straightforward; frank. 2. Paid or due in advance: up-front cash. adv. revenue hits in favor of upon the side of; favorable to; for the advantage of. See also: favor measured revenue over time." As projected in the Company's March 30, 2001, press release, Acxiom met its fourth quarter revenue and earnings forecasts before the effect of the announced SAB SAB Spontaneous abortion. See Abortion. 101 restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. and the effects of certain write-offs. Revenues before restating for SAB 101 and the non-recurring items were $250 million and earnings per share were $.10 for the quarter. For the full year, revenues before restating for SAB 101 and the non-recurring items were $1.05 billion and earnings per share were $0.94. Fiscal 2001 was a true breakout year for AbiliTec, with 37 contracts signed and $110 million in AbiliTec revenue. "AbiliTec is quickly becoming established as the industry standard for Customer Data Integration," Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. said. "With our strong and growing customer base and our list of top-tier strategic alliance partners, we are confident that AbiliTec will continue to drive Acxiom's long-term success as users realize the CDI CDI compact disc interactive: a system for storing a mix of software, data, audio, and compressed video for interactive use under processor control speed and accuracy that will make their customer relationship management programs succeed." Fourth Quarter Financial Highlights: Fourth quarter revenues, after SAB 101 adjustments, were $244 million and 16% greater than Q4 revenues from last year, after adjusting the prior year for SAB 101 and for divested operations on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis. After booking the impact of SAB 101 and the non-recurring write-offs in the fourth quarter, the Company recorded a loss of $0.29 per share for the quarter. AbiliTec revenues for Q4 exceeded $35 million. During Q4 the Company's strategic alliance partners sold ten AbiliTec-related contracts, and PricewaterhouseCoopers was added as a new alliance partner. Segment revenues for the quarter grew 22% for the Services Segment, 154% for the Data and Software Products Segment and were up slightly for the I.T. Management Segment versus the prior year, adjusted for SAB 101 and divested operations. As previously announced, the Company took a $34.6 million charge in the fourth quarter related to the Montgomery Montgomery, city, United States Montgomery, city (1990 pop. 187,106), state capital and seat of Montgomery co., E central Ala., near the head of navigation on the Alabama River just below the confluence of the Coosa and Tallapoosa rivers, and in the rich Ward bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party . The future cash payments associated with this charge are expected to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3 million. Also, the Company wrote off $12.7 million in investments (principally related to Bigfoot Bigfoot or Sasquatch, large apelike creature reportedly sighted hundreds of times in the United States and Canada (most often in the Pacific Northwest) since the mid-19th cent. ) and $5.1 million in other non-recurring charges. Cash flow was strong for the quarter, with $62.4 million generated from operating cash flows Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. and $31.4 million in free cash flows. The Company reduced DSO's to 70 days at March 31 from 79 days reported for December December: see month. 31, 2000 and reduced its line of credit by $26 million from the previous quarter end. "While the quarter met our revised expectations, we are taking significant expense savings action to help ensure that we are able to achieve our future projected results in a difficult economy," said Rodger S Rodger is a surname, and may refer to:
Mandatory statutes are those that require, as opposed to permit, a particular course of action. and voluntary pay reductions, as well as reduced capital expenditures, advertising, marketing and computer related spending, and reduced travel and entertainment costs, among other items," continued Kline. "We expect to lower our previously planned spending in fiscal 2002 by over $70 million." Fiscal 2001 Financial Highlights: -- Revenue for the year surpassed $1 billion for the first time in Company history and revenue for AbiliTec surpassed $110 million. -- Revenues of $1.01 billion increased 27% compared to the prior year, as adjusted for SAB 101 and divested operations. -- Diluted earnings per share, after restating fiscal 2001 for SAB 101 and recording the other non-recurring write-offs, but prior to the cumulative effect of implementing SAB 101 on prior years' financial statements were $0.47. After the cumulative effect of SAB 101 on prior years, diluted earnings per share were $0.07. -- Segment revenues for the year grew 29% for the Services segment, 141% for the Data and Software Products segment and 21% for the I.T. Management segment compared to the prior year, adjusted for SAB 101 and divested operations. -- A number of blue-chip corporations licensed AbiliTec, including CitiGroup, GE Capital, Microsoft, Bank One, American Express, USA Networks, JP Morgan Chase, Mercedes-Benz USA, Nissan North America Inc., Meredith Corporation and BMC Software. -- Strong progress was made with business partners' adoption of AbiliTec as their Customer Data Integration standard. Channel partner agreements were completed with Oracle, Siebel, IBM, Computer Associates, Compaq, Lockheed Martin, and AZ Bertelsmann (Germany), The Polk Co., USADATA, E.piphany, and Xchange Inc. -- Internationally, GE Capital has signed on as the first AbiliTec UK customer. The Company launched AbiliTec Australia and has signed several major Australian companies to beta test the product. And in Germany the Company is continuing to work with AZ Bertelsmann to roll out AbiliTec. -- In December, Fortune magazine named Acxiom as one of the "100 Best Companies to Work for in America." This marks the third time in the last four years that Acxiom has been included on this prestigious list. Earlier in the year, Acxiom was named by Computerworld magazine as one of the "Top 100 Best Places to Work in Information Technology." -- Company Leader Charles Morgan, as the newly elected Chairman of the Direct Marketing Association (DMA), continues to lead the DMA toward endorsing more proactive consumer privacy policies that assure responsible, appropriate uses of consumer information. "We have made tremendous progress towards achieving our goal of AbiliTec becoming the de facto standard Hardware or software that is widely used, but not endorsed by a standards organization. Contrast with de jure standard. de facto standard - A widespread consensus on a particular product or protocol which has not been ratified by any official standards body, such as ISO, for Customer Data Integration," commented Morgan. "Our customers and partners are recognizing the power of AbiliTec and we have built a robust infrastructure to support this sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. opportunity. Despite the current
economic situation, we remain committed to our strategy more than ever.
And we have taken significant cost-cutting measures to better manage
expenses through these more difficult times. It is important to remember
that even in tough times, companies must still grow their revenue base,
satisfy their customers and control costs. AbiliTec is a tool that can
add tremendous value in each of these areas."
The Company will hold a conference call at 9:00 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 Wednesday Wednesday: see week. , May 16, 2001 to discuss the fourth quarter results and the outlook. We invite you 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. Looking Forward The opportunities for AbiliTec continue to grow as companies implement their customer relationship management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) strategies. These CRM efforts are putting focus on the need to aggregate customer information across an enterprise, with the ability to do so in real time. Acxiom's AbiliTec software provides the Customer Data Integration that can accurately and quickly aggregate all records about an individual or a business. Customer Data Integration is the foundational data management process for every use of CRM. The financial projections stated today are based on current expectations. It is anticipated that the current economic situation may slightly improve through the fiscal year, and our guidance is structured accordingly. 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 after March 31, 2001. Our outlook is updated as follows: So that fiscal 2002 financial performance can be properly compared to the previous year's performance, the Company has provided a supplementary schedule to this news release that reflects the fiscal 2001 income statement presented on a quarterly basis for results as adjusted for non-recurring unusual gains and losses recorded during the year, stated on a pro forma basis as if SAB 101 was adopted effective April 2000 and stated on a pro forma basis as if AbiliTec revenues were recognized on a subscription basis effective April 2000. The Company expects that revenue for fiscal 2002 will exceed $1 billion. This expectation reflects the implementation of SAB 101 and a subscription model for AbiliTec revenue recognition beginning April 1, 2001. Fiscal 2002 projected revenue represents approximately a 10% increase over the fiscal 2001 pro forma presented herein and without the benefit of subscription revenues which would have rolled into fiscal 2002 from fiscal 2001. The Company expects that fiscal 2002 earnings per share will be approximately $.60. With a subscription model we expect AbiliTec revenue to start low and grow as new contracts are added. The Company expects AbiliTec revenue for fiscal 2002 in the range of $20 million to $25 million. For the first quarter ended June June: see month. 30, 2001, the Company expects revenue in the range of $220 million to $230 million and earnings per share of $.04 to $.06. Historically, the first quarter is the lowest revenue and earnings quarter of the year. For fiscal 2003, the Company expects that revenue will grow approximately 20% above the fiscal 2002 guidance and earnings per share will grow 25% to 35%. The Company expects that the effective tax rate for fiscal 2002 and 2003 will be 38.5%. With respect to cash flow related items for fiscal 2002, the Company expects that depreciation and amortization will be approximately $120 million, capital expenditures will be $100 million to $110 million and software development will be $25 million to $30 million. The net result is expected to produce positive operating cash flow for fiscal 2002 in excess of $150 million. About Acxiom Corp. Acxiom Corporation, a global leader in Customer Data Integration (CDI) and customer recognition infrastructure, enables businesses to develop and deepen deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. deepen Verb to make or become deeper or more intense Verb 1. customer relationships by creating a single, accurate view of their customers across the enterprise. Acxiom achieves this by providing Customer Data Integration software, database management services, and premier customer data content through its AbiliTec(TM), Solvitur(R) and InfoBase A database created in Folio. See Folio. (R) products, while also offering a broad range of information technology outsourcing Information Technology Outsoucing or ITO is a company's outsourcing of computer or Internet related work, such as programming, to other companies. It is used in refence to Business Process Outsourcing or BPO, which is the outsourcing of the work that does not require so much services. Founded in 1969, Acxiom (Nasdaq:ACXM) is based 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 with operations in the United Kingdom, France, Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . For more information, please visit www.acxiom.com Acxiom, InfoBase and Solvitur are registered trademarks of Acxiom, RTC See real time clock. , Inc. AbiliTec is a trademark of Acxiom Corporation. This press release contains 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 sales of AbiliTec will continue to be strong; 2) that there will continue to be strong customer demand for AbiliTec; 3) that AbiliTec will continue to drive the long term success of the Company; 4) that the Company is quickly accomplishing its goal of AbiliTec becoming the de facto standard for Customer Data Integration; 5) that AbiliTec can provide tremendous value to companies that seek to grow revenue, satisfy customers and control costs; 6) that the adoption of subscription revenue recognition for AbiliTec revenues was the right choice for the Company and such adoption will have the expected impact and effect upon the Company, including, but not limited to, many long term benefits, a better matching of cash flow to earnings and will allow the business of Acxiom to be more predictable and transparent (1) Refers to a change in hardware or software that, after installation, causes no noticeable change in operation. Also known as "feature transparency." Contrast with "seamless integration," which means that an additional component to the system can be added without incurring any ; 7) that the range of the write-offs and charges related to Montgomery Wards and other situations will be within the indicated ranges; 8) that the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of the investments in certain business partners will be within the indicated ranges; 9) that the revenue and earnings projections will be within the indicated ranges; 10) that the adoption of SAB 101 will have the indicated impact; 11) that the Company will be able to effectively continue its expense reduction efforts, within the indicated ranges; 12) that the Company's cash flow will be within the indicated range; 13) that the indicated revenue, earnings per share, cash flow, tax rate, depreciation, amortization, capital expenditures, software development and the indicated growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. for future periods will be within the indicated amounts and ranges 14) that the economic environment and business conditions will remain difficult to predict. The following are important factors, among others, that could cause actual results to differ materially from these forward-looking statements: with regard to all statements regarding AbiliTec: the complexity and uncertainty regarding the development of new software and high technologies; the difficulties associated with developing new AbiliTec products and AbiliTec Enabled Services; the loss of market share through competition or the acceptance of these or other Company offerings on a less rapid basis than expected; changes in the length of sales cycles; the introduction of competent Possessing the necessary reasoning abilities or legal qualifications; qualified; capable; sufficient. A court is competent if it has been given jurisdiction, by statute or constitution, to hear particular types of lawsuits. , competitive products or technologies by other companies; changes in the consumer and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. 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 impact of changing legislative, accounting, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and consumer environments in the geographies in which AbiliTec will be deployed. With regard to the statements that generally relate to the business of the Company: all of the above factors; the fact that the financial numbers listed herein are estimates and ranges that are based on the Company's understanding of current facts and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or ; the possibility that certain contracts may not be closed; 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 significant customers may experience extreme, severe economic difficulty; 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; 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 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; postal Postal can refer to:
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 SOVEREIGN. A chief ruler with supreme power; one possessing sovereignty. (q.v.) It is also applied to a king or other magistrate with limited powers. 2. In the United States the sovereignty resides in the body of the people. Vide Rutherf. Inst. 282. 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 CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except earnings per share)
For the Three Months Ended
March 31,
--------------------------
2001 2000
--------------------------
Revenue 243,704 261,811
Operating costs and expenses:
Salaries and benefits 94,897 90,728
Computer, communications and
other equipment 47,909 42,672
Data costs 29,977 32,611
Other operating costs and expenses 55,206 48,434
Gains, losses and nonrecurring items 37,944 --
-------- --------
Total operating costs and expenses 265,933 214,445
-------- --------
Income from operations (22,229) 47,366
-------- --------
Other income (expense):
Interest expense (8,067) (5,555)
Other, net (12,228) 1,127
-------- --------
(20,295) (4,428)
-------- --------
Earnings before income taxes (42,524) 42,938
Income taxes (16,374) 16,102
-------- --------
Net earnings (26,150) 26,836
======== ========
Earnings per share:
Basic (0.29) 0.31
======== ========
Diluted (0.29) 0.29
======== ========
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except earnings per share)
For the Twelve Months Ended
March 31,
---------------------------
2001 2000
---------------------------
Revenue 1,009,887 964,460
Operating costs and expenses:
Salaries and benefits 363,463 361,768
Computer, communications and
other equipment 185,950 151,816
Data costs 112,019 113,083
Other operating costs and expenses 211,500 173,909
Gains, losses and nonrecurring items 35,330 --
--------- ---------
Total operating costs and expenses 908,262 800,576
--------- ---------
Income from operations 101,625 163,884
--------- ---------
Other income (expense):
Interest expense (26,513) (23,532)
Other, net (3,780) 4,225
--------- ---------
(30,293) (19,307)
--------- ---------
Earnings before income taxes and cumulative
effect of change in accounting principle 71,332 144,577
Income taxes 27,465 54,214
--------- ---------
Earnings before cumulative effect of
change in accounting principle 43,867 90,363
Cumulative effect of change in accounting
principle, net of tax benefit 37,488 --
--------- ---------
Net earnings 6,379 90,363
========= =========
Earnings per share:
Basic earnings per share:
Earnings before cumulative effect of
change in accounting principle 0.50 1.06
Cumulative effect of change in accounting
principle (0.43) --
--------- ---------
Net earnings 0.07 1.06
========= =========
Diluted earnings per share:
Earnings before cumulative effect of change
in accounting principle 0.47 1.00
Cumulative effect of change in accounting
principle (0.40) --
--------- ---------
Net earnings 0.07 1.00
========= =========
Pro forma amounts assuming the cumulative
effect of change in accounting principle is
applied retroactively:
Net earnings 60,038
=========
Basic earnings per share 0.71
=========
Diluted earnings per share 0.67
=========
ACXIOM CORPORATION AND SUBSIDIARIES
REVENUES BY SEGMENT
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
March 31,
--------------------------
2001 2000
--------------------------
Services 176,934 170,693
Data and Software Products 67,526 54,702
I. T. Management 52,565 55,791
Intercompany eliminations (53,321) (19,375)
-------- --------
Total Revenue 243,704 261,811
======== ========
For the Twelve Months Ended
March 31,
---------------------------
2001 2000
---------------------------
Services 732,620 675,094
Data and Software Products 228,738 168,504
I. T. Management 223,364 194,908
Intercompany eliminations (174,835) (74,046)
---------- ----------
Total Revenue 1,009,887 964,460
========== ==========
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
March 31, March 31,
2001 2000
-------- --------
Assets
Current assets:
Cash and cash equivalents $ 14,176 $ 23,924
Trade accounts receivable, net 196,107 198,818
Deferred income taxes 36,211 18,432
Other current assets 105,953 98,872
----------- -----------
Total current assets 352,447 340,046
----------- -----------
Property and equipment 426,847 376,459
Less - Accumulated depreciation and
amortization 181,507 126,783
----------- -----------
Property and equipment, net 245,340 249,676
----------- -----------
Software, net of accumulated amortization 63,906 58,964
Excess of cost over fair value of net assets
acquired 172,741 145,082
Purchased software licenses, net of
accumulated amortization 168,673 123,846
Notes receivable, excluding current portions 71,735 78,379
Deferred costs, net of accumulated
amortization 108,928 40,175
Other assets, net 48,955 69,128
----------- -----------
$ 1,232,725 $ 1,105,296
----------- -----------
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt 31,031 23,156
Trade accounts payable 68,882 54,016
Accrued merger and integration costs 3,215 15,106
Accrued payroll and related expenses 18,467 26,483
Other accrued expenses 49,767 31,779
Deferred revenue 31,273 19,995
Income taxes 11,685 9,473
----------- -----------
Total current liabilities 214,320 180,008
----------- -----------
Long-term debt, excluding current
installments 369,172 289,234
Deferred income taxes 32,785 48,324
Stockholders' equity:
Common stock 9,055 8,831
Additional paid-in capital 351,921 325,729
Retained earnings 263,755 257,376
Accumulated other comprehensive income
(loss) (5,996) (1,448)
Treasury stock, at cost (2,287) (2,758)
----------- -----------
Total stockholders' equity 616,448 587,730
----------- -----------
Commitments and contingencies
$ 1,232,725 $ 1,105,296
----------- -----------
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
March 31,
2001 2000
---- ----
Cash flows from operating activities:
Net earnings $(26,150) 26,836
Non-cash operating activities:
Depreciation and amortization 34,817 24,248
Loss (gain) on disposal of assets 50,249 43
Provision for returns and doubtful
accounts 1,568 874
Deferred income taxes (11,770) 21,646
Tax benefit of stock options and
warrants exercised 8,001 15,921
Changes in operating assets and
liabilities: -- --
Accounts receivable 21,698 (2,886)
Other assets (25,046) (49,034)
Accounts payable and other
liabilities 5,750 13,754
Merger and integration costs 3,329 (1,262)
-------- --------
Net cash provided by operating
activities 62,446 50,140
-------- --------
Cash flows from investing activities:
Disposition of assets 28 2,724
Proceeds from sale of marketable
securities 8,918 --
Development of software (7,864) (11,852)
Capital expenditures (31,927) (32,532)
Proceeds from sale and leaseback
transaction -- --
Investments in joint ventures (171) (1,528)
Net cash paid in acquisitions -- (63)
-------- --------
Net cash used by investing
activities (31,016) (43,251)
-------- --------
Cash flows from financing activities:
Proceeds from debt 53,956 3,775
Payments of debt (87,664) (23,565)
Payments on equity forward
contracts (1,946) --
Sale of common stock 3,286 18,942
-------- --------
Net cash provided by financing
activities (32,368) (848)
-------- --------
Effect of exchange rate changes
on cash (126) (46)
-------- --------
Net increase in cash and cash
equivalents (1,064) 5,995
Cash and cash equivalents at
beginning of period 15,240 17,929
-------- --------
Cash and cash equivalents at
end of period $ 14,176 23,924
-------- --------
Supplemental cash flow information:
Cash paid (received) during
the period for:
Interest $ 107 3,915
Income taxes 19,027 6,731
-------- --------
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Twelve Months Ended
March 31,
2001 2000
---- ----
Cash flows from operating activities:
Net earnings $ 6,379 90,363
Non-cash operating activities:
Depreciation and amortization 120,793 86,529
Loss (gain) on disposal of assets 33,437 354
Provision for returns and doubtful
accounts 3,563 2,313
Deferred income taxes (11,770) 21,646
Tax benefit of stock options and
warrant exercised 8,001 15,921
Cumulative effect of change in
accounting principle 37,488 --
Changes in operating assets and liabilities:
Accounts receivable (14,704) (25,081)
Other assets (126,745) (78,434)
Accounts payable and other
liabilities 3,080 8,742
Merger and integration costs (11,421) (17,795)
--------- ---------
Net cash provided (used) by
operating activities 48,101 104,558
--------- ---------
Cash flows from investing activities:
Disposition of assets 60,025 4,148
Proceeds from sale of marketable
securities 8,918 --
Development of software (36,558) (37,317)
Capital expenditures (111,486) (120,616)
Proceeds from sale and leaseback
transaction -- 34,763
Investments in joint ventures (20,456) (5,774)
Net cash paid in acquisitions (16,030) (32,960)
--------- ---------
Net cash used by investing
activities (115,587) (157,756)
--------- ---------
Cash flows from financing activities:
Proceeds from debt 153,359 194,657
Payments of debt (107,388) (215,012)
Payments on equity forward
contracts (6,678) --
Sale of common stock 26,145 84,970
Purchase of treasury stock (7,478) --
--------- ---------
Net cash provided by financing
activities 57,960 64,615
--------- ---------
Effect of exchange rate changes
on cash (222) (97)
--------- ---------
Net increase (decrease) in cash and
cash equivalents (9,748) 11,320
Cash and cash equivalents at beginning
of period 23,924 12,604
--------- ---------
Cash and cash equivalents at end
of period $ 14,176 23,924
--------- ---------
Supplemental cash flow information:
Cash paid (received) during the
period for:
Interest $ 25,754 25,902
Income taxes 29,025 (5,459)
--------- ---------
ACXIOM CORPORATION AND SUBSIDIARIES
PRO FORMA STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except per share amounts)
For the Fiscal Year March 31, 2001
---------------------------------------
Q1 Q2 Q3 Q4 2001
---------------------------------------
Revenue 236,948 224,922 244,416 219,738 926,024
Operating costs
and expenses:
Salaries and benefits 87,445 93,018 88,102 93,146 361,711
Computer, communications
and other 41,670 48,642 47,729 47,909 185,950
Data costs 26,080 27,917 28,045 29,977 112,019
Other operating costs
and expenses 53,252 48,505 54,537 55,206 211,500
-------------------------------------------
Total operating costs
and expenses 208,447 218,082 218,413 226,238 871,180
-------------------------------------------
Income from operations 28,501 6,840 26,003 (6,500) 54,844
Other income (expense):
Interest expense (5,467) (6,025) (6,954) (8,067) (26,513)
Other, net 2,003 (931) 1,153 500 2,725
-------------------------------------------
(3,464) (6,956) (5,801) (7,567) (23,788)
Earnings before income
taxes 25,037 (116) 20,202 (14,067) 31,056
Income taxes 9,638 (44) 7,781 (5,415) 11,960
-------------------------------------------
Net earnings 15,399 (72) 12,421 (8,652) 19,096
===========================================
Diluted EPS 0.17 0.00 0.13 (0.10) 0.21
===========================================
Net AbiliTec Investment 11,153 11,010 16,202 15,825 54,190
Diluted EPS before Net
AbiliTec Investment 0.24 0.08 0.23 0.02 0.57
===========================================
Note: This schedule presents quarterly results for the fiscal year
ended March 31, 2001 adjusted for:
1. A $9.3 million in net gains, losses and non recurring items
recorded in the first quarter reflecting a gain on the sale of
Dataquick, a loss on the sale of CIMS, a writedown of our DMI
investment and other accruals and writedowns. In addition the
pro forma excludes the $52.4 million charge recorded in the
fourth quarter reflecting the Montgomery Wards charge together
with miscellaneous writedowns.
2. The impact of SAB 101.
3. The impact of recording AbiliTec revenue an the subscription
basis beginning April 2000.
Note: The AbiliTec investment reflects the expenses associated
with AbiliTec incurred in fiscal 2001.
Note: Had Acxiom been on a subscription basis effective April
2000, the backlog generated from AbiliTec sales would have resulted in
an additional $33.6 million in revenue and $ 0.20 in EPS for fiscal
2001.
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