Acxiom Announces Second-Quarter Results Significant Year-Over-Year Growth Achieved in Revenue, Earnings.LITTLE ROCK, Ark. -- 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 NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ACXM) today announced financial results for the second quarter of fiscal 2005 ended September September: see month. 30, 2004. Revenue of $299.1 million, income from operations of $34.4 million, pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta earnings of $29.8 million and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $.20 all represent significant improvements compared to the same quarter a year ago. Acxiom will hold a conference call at 4:30 p.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT today 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. "We are pleased with our second-quarter performance, which keeps us solidly on track to meet the financial goals we have communicated in our Financial Road Map," 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. "We are particularly encouraged with the growth in our U.S. operations, with revenue up 11 percent and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. up 58 percent compared to the same quarter last year." Highlights of Acxiom's second-quarter performance include: --Revenue of $299.1 million, up 24 percent from $241.1 million in the second quarter a year ago. Acquisitions contributed 12 percentage points of this 24 percentage-point growth in revenue. --Income from operations of $34.4 million, an increase of 51 percent compared to $22.7 million in the second quarter last year. --Pre-tax earnings of $29.8 million, an increase of 66 percent compared to $17.9 million in the second quarter a year ago. --Diluted earnings per share of $.20, up 54 percent from $.13 the year before. --Operating cash flow of $61.7 million and free cash flow of $41.1 million. The free cash flow of $41.1 million is a non-GAAP financial measure and a reconciliation to the comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measure, 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. , is attached to this press release. --New contracts that are expected to deliver $43 million in annual revenue and renewals that total $71 million in annual revenue. --Committed new deals in the pipeline that are expected to generate $71 million in annual revenue. Morgan noted that Acxiom recently completed contracts with Information Resources (1) The data and information assets of an organization, department or unit. See data administration. (2) Another name for the Information Systems (IS) or Information Technology (IT) department. See IT. , Inc. (IRI Iri (ē`rē`), former city, North Jeolla (Cholla) prov., SW South Korea. An agricultural center and transportation hub, it was absorbed into Iksan. ); TransUnion TransUnion (full name Trans Union LLC) is a consumer credit reporting agency, considered one of the "big three" agencies in the United States. Like its main competitors, Experian and Equifax, it now markets its credit reports directly to consumers, in addition to its core ; Accenture (Accenture, Chicago, IL, www.accenture.com) The world's largest management and technology consulting firm, which was spun off of Arthur Andersen & Co. in 1989 as a separate entity known as Andersen Consulting. ; 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. ; GE Consumer Finance; E-LOAN E-Loan, Inc. is a financial services company that offers home mortgage, home equity, and auto loans, along with online high yield savings and certificates of deposit (CDs). E-LOAN® is currently headquartered in Pleasanton, CA, and employs more than 950 people. (R); Southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: LLC - Logical Link Control ; Ziff Davis Media (Ziff Davis Media Inc., New York, www.ziffdavis.com) A leading integrated media company that serves the computer, videogame and consumer lifestyle markets. Its offerings include PC Magazine and the PCMag.com Network, which includes PCMag.com, ExtremeTech. , Inc.; CopperKey Inc.; and Wolters Kluwer Wolters Kluwer N.V. (Euronext: WKL) is a leading global information services and publishing company. The company provides products and services for professionals in the health, tax, accounting, corporate, financial services, legal and regulatory, and education sectors. Health. "We were very pleased with the new business we won in the quarter," Morgan said. "Many of these deals are significant for Acxiom and our future. The relationship with IRI takes our integrated 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. value proposition to a new level, as we'll we'll Contraction of we will. we'll we will or we shall we'll will ~shall use our Customer Information Infrastructure (CII CII Confederation of Indian Industry CII Chartered Insurance Institute (UK) CII Construction Industry Institute (University of Texas) CII Council of Institutional Investors ) grid-based solutions architecture to transform the way IRI builds and delivers its data products. And we're we're Contraction of we are. we're we are also beginning to deploy CII in a limited capacity at TransUnion, our long-time business partner with whom we have recently completed a five-year extension of our data center outsourcing agreement." Recognition Acxiom recently: --Was included in CIO CIO: see American Federation of Labor and Congress of Industrial Organizations. (Chief Information Officer) The executive officer in charge of information processing in an organization. magazine's "CIO 100," which recognizes organizations around the world that exemplify ex·em·pli·fy tr.v. ex·em·pli·fied, ex·em·pli·fy·ing, ex·em·pli·fies 1. a. To illustrate by example: exemplify an argument. b. the highest level of operational and strategic excellence in information technology. --Was named one of the "Best Places to Work in Information Technology" by Computerworld magazine. --Won the "CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. Data Quality Market Leader" award from CRM magazine. --Was named "2004 Best Practices Award" winner for "Radical Data Warehousing/Business Intelligence" by The Data Warehousing See data warehouse. data warehousing - data warehouse Institute. --Received Sonoco's "Supplier of the Year" Award. --Was honored hon·or n. 1. High respect, as that shown for special merit; esteem: the honor shown to a Nobel laureate. 2. a. Good name; reputation. b. as a member of the InformationWeek 500, which recognizes the most innovative corporate users of information technology. Organizational Changes Effective January January: see month. 1, 2005, a new "Office of the Company Leader" will be established and two new positions are being created within that office, namely, Chief Finance & Administration Leader and Chief Operations Leader. Rodger S Rodger is a surname, and may refer to:
tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. as Chief Finance & Administration Leader and will serve as the Company's principal financial and accounting officer. L. Lee Hodges Lee Hodges may refer to:
American jazz saxophonist who was a key player in the Duke Ellington Orchestra (1928-1951). . All of the Company's organizations and functions will report to Messrs. Morgan, Kline or Hodges. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. T. Womble, currently Client Services Organization Leader for 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. , government and health, will be appointed as Global Business Development Leader, a new position which will be focused on the continued expansion of the Company's global business opportunities. Jefferson Jefferson, uninc. city (1990 pop. 25,782), Fairfax co., N Va. It is a residential suburb of Washington, D.C. D. Stalnaker, currently serving as Company Financial Operations Leader, will be appointed as Client Services Organization Leader for financial services, government and health. "These changes position us to better capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our many growth opportunities," Morgan said. "Jim's experience will be very valuable as we continue to expand our business globally. Lee will help us very tightly coordinate Belonging to a system of indexing by two or more terms. For example, points on a plane, cells in a spreadsheet and bits in dynamic RAM chips are identified by a pair of coordinates. Points in space are identified by sets of three coordinates. sales, client service and delivery, ensuring we maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. effectiveness, efficiency and growth in all operational areas of our business. Jeff has done a great job as a financial leader over the past several years and will now expand his scope and responsibility. Rodger has previously served as our principal financial officer and has been in that role or one closely associated with it for more than ten years and will provide continuity in our financial operations. I am very excited about these organizational changes and the positive impact they will have on our business." Outlook For the fiscal year ended March 31, 2005 and thereafter, the Company's expectations are communicated in the attached Financial Road Map, which includes a chart summarizing the Company's one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants and long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. as well as an explanation of the assumptions and definitions that accompany To go along with; to go with or to attend as a companion or associate. A motor vehicle statute may require beginning drivers or drivers under a certain age to be accompanied by a licensed adult driver whenever operating an automobile. these goals. The financial projections stated today are based on the Company's current expectations. These projections are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , 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 and do not include the impact of the expensing of employee stock options which is currently proposed by the FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). . About Acxiom 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 CDI compact disc interactive: a system for storing a mix of software, data, audio, and compressed video for interactive use under processor control ) technology, data, database services, IT outsourcing, 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 Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , and in 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. and
Japan.This release (including references to the Financial Road Map) and the scheduled conference call include a discussion of non-GAAP financial measures. Whenever the Company reports non-GAAP financial measures, there is a reconciliation to the comparable GAAP measure attached to the press release. This release and today'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 may include but are not necessarily limited to the following: that the projected revenue, operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). and return on invested capital, operating cash flow and free cash flow, borrowings and dividends referred to in the Financial Road Map will be within the estimated ranges; that the company is on track for a successful year and is currently operating in line with the Financial Road Map; that the business pipeline and our current cost structure will allow us to continue to meet or exceed revenue, cash flow and other projections; that new contracts and contract renewals will generate the indicated amounts of revenue; that we have committed new deals in the pipeline that are expected to deliver the indicated amounts; that we are well positioned for success and improving margins going forward; that future results will be within the indicated ranges; that new products and services will produce the expected results. 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 may not be closed within the anticipated time frames; the possibility that certain contracts may not generate the anticipated revenue or profitability; the possibility that negative changes in economic or other conditions might lead to a reduction in demand for our products and services; the possibility that the recovery from the previous three years' 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 take longer than expected or that economic conditions in general will not be as expected; the possibility that significant customers may experience extreme, severe economic difficulty; the possibility that the fair value of certain of our assets may not be equal to the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of those assets now or in future time periods; 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
possibility that we may not be able to attract and retain qualified
technical and leadership associates, or that we may lose key associates
to other organizations; the possibility that we won't won't Contraction of will not. won't will not won't will be able to properly motivate our sales force or other associates; the possibility that we won't be able to achieve cost reductions and avoid unanticipated costs; the possibility that we won't be able to continue to receive credit upon satisfactory terms and conditions; the possibility that 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, technologies or services will be introduced into the marketplace by other companies; the possibility that we may be subjected to pricing pressure due to market conditions 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. competitive products and services; the possibility that there will be changes in consumer or business information industries and markets; the possibility that changes in accounting pronouncements (including the proposed accounting pronouncement changes which will require expensing of stock option grants and other equity compensation awards) may occur and may impact these projections; the possibility that we won't be able to protect proprietary information and technology or to obtain necessary licenses on commercially reasonable terms; the possibility that we may encounter difficulties when entering new markets or industries; the possibility that there will be changes in the 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 affecting our 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 our ability to collect, manage, aggregate and use data; the possibility that data suppliers might withdraw data from us, leading to our inability to provide certain products and services; the possibility that we may enter into 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 which would affect the predictability of our 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. , volume-based and project work will not be as expected; the possibility that we may experience a 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; the possibility that we may experience failures or breaches of our network and data security systems, leading to potential adverse publicity, negative customer reaction, or liability to third parties; the possibility that postal Postal can refer to:
tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. in the contracts, which may result in contract penalties or lost revenue; the possibility that we experience processing errors which result in credits to customers, re-performance of services or payment of damages to customers; the possibility that 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 may be disrupted dis·rupt tr.v. dis·rupt·ed, dis·rupt·ing, dis·rupts 1. To throw into confusion or disorder: Protesters disrupted the candidate's speech. 2. ; the possibility that the integration of our recently acquired businesses may not be as successful as planned; and the possibility that we may be affected by other competitive factors. With respect to the Financial Road Map exhibit, all of the above factors apply, along with the following which were assumptions made in creating the Financial Road Map: that the U.S. and global economies will continue to improve at a moderate pace; that global growth will continue to be strong and that globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation trends will continue to grow at an increasing pace; that Acxiom's computer and communications related expenses will continue to fall as a percentage of revenue; that the Customer Information Infrastructure (CII) grid-based environment Acxiom has begun to implement will continue to be implemented successfully over the next 3-4 years and that the new CII infrastructure will continue to provide increasing operational efficiencies; that the recent acquisitions of Claritas Europe and Consodata Europe will be successfully integrated and that significant efficiencies will be realized from this integration; relating to operating cash flow and free cash flow, that sufficient operating and capital lease arrangements will continue to be available to the Company to provide for the financing of most of its computer equipment and that software suppliers will continue to provide financing arrangements for most of the software purchases; relating to revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. line balance, that free cash flow will meet expectations and that the Company will continue to use free cash flow to pay down bank debt, buy back stock and fund dividends; relating to annual dividends, that the Board of Directors will continue to approve quarterly dividends and will vote to increase dividends over time; relating to diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares, that the Company will meet its cash flow expectations and that potential dilution potential dilution The decrease in the proportional equity position of a share of stock that will occur eventually if additional authorized shares are actually issued. created through the issuance of stock options and warrants will be mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by continued stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the Company's stock repurchase program. With respect to the provision of products or services outside our 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 apply, along with 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 our periodic reports and registration statements filed with the United States Securities and Exchange Commission. We believe that we have 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. We undertake no obligation to update the information contained in this press release, including the Financial Road Map or any other forward-looking statement. Acxiom is a registered trademark of Acxiom Corporation.
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
For the Three Months Ended
September 30,
-----------------------------
2004 2003
-----------------------------
Revenue:
Services 220,072 190,098
Data 79,037 50,998
------------ ------------
Total revenue 299,109 241,096
Operating costs and expenses:
Cost of revenue
Services 168,950 154,429
Data 49,768 36,556
------------ ------------
Total cost of revenue 218,718 190,985
Selling, general and administrative 46,020 27,395
------------ ------------
Total operating costs and
expenses 264,738 218,380
------------ ------------
Income from operations 34,371 22,716
------------ ------------
Other income (expense):
Interest expense (4,743) (4,889)
Other, net 205 121
------------ ------------
Total other income (expense) (4,538) (4,768)
------------ ------------
Earnings before income taxes 29,833 17,948
Income taxes 11,337 6,731
------------ ------------
Net earnings 18,496 11,217
============ ============
Earnings per share:
Basic 0.22 0.13
============ ============
Diluted 0.20 0.13
============ ============
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
For the Six Months Ended
September 30,
-----------------------------
2004 2003
-----------------------------
Revenue:
Services 427,919 382,612
Data 160,184 95,166
------------ ------------
Total revenue 588,103 477,778
Operating costs and expenses:
Cost of revenue
Services 332,499 313,184
Data 101,587 71,193
------------ ------------
Total cost of revenue 434,086 384,377
Selling, general and administrative 94,549 60,459
Gains, losses and nonrecurring
items, net (344) (1,008)
------------ ------------
Total operating costs and
expenses 528,291 443,828
------------ ------------
Income from operations 59,812 33,950
------------ ------------
Other income (expense):
Interest expense (9,813) (9,654)
Other, net 614 886
------------ ------------
Total other income (expense) (9,199) (8,768)
------------ ------------
Earnings before income taxes 50,613 25,182
Income taxes 19,233 2,702
------------ ------------
Net earnings 31,380 22,480
============ ============
Earnings per share:
Basic 0.36 0.26
============ ============
Diluted 0.34 0.25
============ ============
ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)
For the Three Months Ended
September 30,
-----------------------------
2004 2003
-----------------------------
Basic earnings per share:
Numerator - net earnings 18,496 11,217
Denominator - weighted-average shares
outstanding 86,010 85,236
------------ ------------
Basic earnings per share 0.22 0.13
============ ============
Diluted earnings per share:
Numerator:
Net earnings 18,496 11,217
Interest expense on convertible
bonds (net of tax benefit) 1,017 1,026
------------ ------------
19,513 12,243
------------ ------------
Denominator:
Weighted-average shares outstanding 86,010 85,236
Dilutive effect of common stock
options and warrants 3,464 1,937
Dilutive effect of convertible debt 9,589 9,589
------------ ------------
99,063 96,762
------------ ------------
Diluted earnings per share 0.20 0.13
============ ============
ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)
For the Six Months Ended
September 30,
-----------------------------
2004 2003
-----------------------------
Basic earnings per share:
Numerator - net earnings 31,380 22,480
Denominator - weighted-average shares
outstanding 86,047 85,839
------------ ------------
Basic earnings per share 0.36 0.26
============ ============
Diluted earnings per share:
Numerator:
Net earnings 31,380 22,480
Interest expense on convertible
bonds (net of tax benefit) 2,034 2,051
------------ ------------
33,414 24,531
------------ ------------
Denominator:
Weighted-average shares outstanding 86,047 85,839
Dilutive effect of common stock
options and warrants 3,709 1,770
Dilutive effect of convertible debt 9,589 9,589
------------ ------------
99,345 97,198
------------ ------------
Diluted earnings per share 0.34 0.25
============ ============
ACXIOM CORPORATION AND SUBSIDIARIES
REVENUES BY SEGMENT
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
September 30,
-----------------------------
2004 2003
-----------------------------
US Services & Data 188,105 169,031
International Services & Data 47,893 15,037
IT Management 69,325 60,967
Intercompany eliminations (6,214) (3,939)
------------ ------------
Total Revenue 299,109 241,096
============ ============
For the Six Months Ended
September 30,
-----------------------------
2004 2003
-----------------------------
US Services & Data 363,069 331,141
International Services & Data 101,335 28,620
IT Management 132,594 122,912
Intercompany eliminations (8,895) (4,895)
------------ ------------
Total Revenue 588,103 477,778
============ ============
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
September 30, March 31,
2004 2004
Assets ----------- -----------
------
Current assets:
Cash and cash equivalents $ 10,140 $ 14,355
Trade accounts receivable, net 236,862 212,387
Deferred income taxes 14,288 14,032
Refundable income taxes 915 2,280
Other current assets 48,136 43,272
----------- -----------
Total current assets 310,341 286,326
----------- -----------
Property and equipment 536,578 521,064
Less - accumulated depreciation and
amortization 243,700 253,976
----------- -----------
Property and equipment, net 292,878 267,088
----------- -----------
Software, net of accumulated
amortization 60,214 64,553
Goodwill 312,168 282,971
Purchased software licenses, net of
accumulated amortization 152,206 157,217
Unbilled and notes receivable,
excluding current portions 15,675 13,030
Deferred costs, net 84,210 88,096
Data acquisition costs 45,009 36,557
Other assets, net 13,273 19,946
----------- -----------
$ 1,285,974 $ 1,215,784
=========== ===========
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Current installments of long-term
obligations 79,585 73,245
Trade accounts payable 50,778 41,527
Accrued merger, integration and
impairment costs 190 2,881
Accrued payroll and related expenses 23,791 23,979
Other accrued expenses 70,902 63,411
Deferred revenue 86,053 91,060
----------- -----------
Total current liabilities 311,299 296,103
----------- -----------
Long-term obligations:
Long-term debt and capital leases,
net of current installments 265,830 239,327
Software and data licenses, net of
current installments 41,268 54,130
----------- -----------
Total long-term obligations 307,098 293,457
----------- -----------
Deferred income taxes 58,892 39,008
Commitments and contingencies
Stockholders' equity:
Common stock 9,352 9,226
Additional paid-in capital 384,615 361,256
Retained earnings 332,972 308,487
Accumulated other comprehensive loss 3,608 2,940
Treasury stock, at cost (121,862) (94,693)
----------- -----------
Total stockholders' equity 608,685 587,216
----------- -----------
$ 1,285,974 $ 1,215,784
=========== ===========
ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF FREE CASH FLOW TO OPERATING CASH FLOW
(Unaudited)
(Dollars in thousands)
Qtr ended Qtr ended Qtr ended Qtr ended Yr ended
6/30/2001 9/30/2001 12/31/2001 3/31/2002 3/31/2002
Net cash
provided by
operating
activities (39,280) 69,300 60,493 60,092 150,605
Proceeds
received from
disposition
of assets 127 - - 46 173
Capitalized
software (5,935) (5,464) (5,832) (6,890) (24,121)
Capital
expenditures (8,789) - (2,612) (3,474) (14,875)
Deferral of
costs (8,690) (18,012) (14,077) (7,352) (48,131)
Proceeds from
sale and
leaseback
transaction - 1,964 4,035 - 5,999
-------------------------------------------------------
Free cash flow (62,567) 47,788 42,007 42,422 69,650
=======================================================
Qtr ended Qtr ended Qtr ended Qtr ended Yr ended
6/30/2002 9/30/2002 12/31/2002 3/31/2003 3/31/2003
Net cash
provided by
operating
activities 60,243 53,446 76,992 63,112 253,793
Proceeds
received from
disposition
of assets 45 155 - 93 293
Capitalized
software (8,652) (8,958) (8,726) (8,237) (34,573)
Capital
expenditures (1,916) (3,000) (5,893) (2,403) (13,212)
Deferral of
costs (3,240) (4,108) (3,796) (3,883) (15,027)
Proceeds from
sale and
leaseback
transaction - 7,729 - - 7,729
-------------------------------------------------------
Free cash flow 46,480 45,264 58,577 48,682 199,003
=======================================================
Qtr ended Qtr ended Qtr ended Qtr ended Yr ended
6/30/2003 9/30/2003 12/31/2003 3/31/2004 3/31/2004
Net cash
provided by
operating
activities 48,125 49,909 79,282 82,567 259,883
Proceeds
received from
disposition
of assets 506 192 39 2,046 2,783
Capitalized
software (6,335) (7,296) (6,510) (7,703) (27,844)
Capital
expenditures (1,588) (3,036) (7,637) (9,917) (22,178)
Deferral of
costs (6,026) (4,006) (5,312) (9,537) (24,881)
-------------------------------------------------------
Free cash flow 34,682 35,763 59,862 57,456 187,763
=======================================================
Qtr ended Qtr ended
6/30/2004 9/30/2004
Net cash
provided by
operating
activities 34,714 61,742
Capitalized
software (4,107) (4,721)
Capital
expenditures (1,823) (4,813)
Deferral of
costs (9,610) (11,113)
---------------------
Free cash flow 19,174 41,095
=====================
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Three Months Ended
September 30,
-----------------------------
2004 2003
-----------------------------
Cash flows from operating activities:
Net earnings 18,496 11,218
Non-cash operating activities:
Depreciation and amortization 45,102 37,140
Deferred income taxes 10,699 -
Changes in operating assets and
liabilities:
Accounts receivable (7,488) (1,199)
Other assets (7,434) 6,765
Accounts payable and other
liabilities 2,548 (3,600)
Merger, integration and
impairment costs (181) (415)
------------ ------------
Net cash provided by operating
activities 61,742 49,909
------------ ------------
Cash flows from investing activities:
Proceeds received from the
disposition of assets - 192
Capitalized software (4,721) (7,296)
Capital expenditures (4,813) (3,036)
Deferral of costs (11,113) (4,006)
Payments received from investments 219 159
Net cash paid in acquisitions (11,181) -
------------ ------------
Net cash used by investing
activities (31,609) (13,987)
------------ ------------
Cash flows from financing activities:
Proceeds from debt 59,203 29,286
Payments of debt (75,049) (50,233)
Dividends paid (3,446) -
Sale of common stock 4,354 3,859
Acquisition of treasury stock (16,397) (20,032)
------------ ------------
Net cash used by financing
activities (31,335) (37,120)
------------ ------------
Effect of exchange rate changes
on cash 128 (15)
------------ ------------
Net decrease in cash and cash
equivalents (1,074) (1,213)
Cash and cash equivalents at
beginning of period 11,214 4,862
------------ ------------
Cash and cash equivalents at end of
period 10,140 3,649
------------ ------------
Supplemental cash flow information:
Cash paid (received) during the
period for:
Interest 6,554 6,794
Income taxes 8 (2,533)
Noncash investing and financing
activities:
Enterprise software licenses
acquired under long-term
obligation 3,282 991
Acquisition of property and
equipment under capital lease
and installment payment
arrangements 18,572 14,531
Construction of assets under
construction loan 6,323 2,610
------------ ------------
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Six Months Ended
September 30,
-----------------------------
2004 2003
-----------------------------
Cash flows from operating activities:
Net earnings 31,380 22,481
Non-cash operating activities:
Depreciation and amortization 89,099 71,036
Loss on disposal or impairment of
assets, net - (1,008)
Deferred income taxes 19,548 (6,742)
Changes in operating assets and
liabilities:
Accounts receivable (26,149) 4,810
Other assets (8,446) 8,826
Accounts payable and other
liabilities (6,285) (815)
Merger, integration and
impairment costs (2,691) (554)
------------ ------------
Net cash provided by operating
activities 96,456 98,034
------------ ------------
Cash flows from investing activities:
Proceeds received from the
disposition of operations - 7,684
Proceeds received from the
disposition of assets - 698
Capitalized software (8,828) (13,631)
Capital expenditures (6,636) (4,624)
Investments in joint ventures and
other companies - (5,000)
Deferral of costs (20,723) (10,032)
Payments received from investments 503 1,360
Net cash paid in acquisitions (16,741) -
------------ ------------
Net cash used by investing
activities (52,425) (23,545)
------------ ------------
Cash flows from financing activities:
Proceeds from debt 98,129 82,473
Payments of debt (135,609) (110,888)
Dividends paid (6,895) -
Sale of common stock 23,671 6,709
Acquisition of treasury stock (27,368) (54,697)
------------ ------------
Net cash used by financing
activities (48,072) (76,403)
------------ ------------
Effect of exchange rate changes
on cash (174) 72
------------ ------------
Net decrease in cash and cash
equivalents (4,215) (1,842)
Cash and cash equivalents at
beginning of period 14,355 5,491
------------ ------------
Cash and cash equivalents at end of
period 10,140 3,649
------------ ------------
Supplemental cash flow information:
Cash paid (received) during the
period for:
Interest 9,888 10,302
Income taxes 108 (1,556)
Noncash investing and financing
activities:
Acquisition of land in exchange
for debt - 2,698
Acquisition of data under long-
term obligation - 18,340
Enterprise software licenses
acquired under long-term
obligation 5,967 9,212
Acquisition of property and
equipment under capital lease
and installment payment
arrangements 39,070 31,334
Construction of assets under
construction loan 13,111 2,610
------------ ------------
ACXIOM CORPORATION
Financial Road Map(1)
-----------------------
(as of Sep 30, 2004)
Long-Term
Actual (2) Actual Actual Target Goals
Years Ending Fiscal Q2 Fiscal YTD Fiscal Fiscal Fiscal
March 31, 2004 2005 2005 2005 2008
---------- ---------- ---------- ---------- ----------
7.0% to
U.S. Revenue 7.0% to 10.0%
Growth 2.7% 11.1% 8.4% 11.0% (CAGR)
$991 to
$926 $251 $487 $1,028
U.S. Revenue million million million million -
14.0% to
International 18.0%
Revenue Growth 51.3% 218.5% 254.1% - (CAGR)
$220 to
International $85 $48 $101 $240
Revenue million million million million -
U.S. Operating 11.5% to 15.0% to
Margin 9.8% 13.9% 11.8% 12.0% 16.0%
International
Operating 8.0% to 18.0% to
Margin 3.1% -1.3% 2.2% 11.0% 20.0%
Return on 10.0% to 14.0% to
Assets 8.2% 9.7%(3) 9.7%(3) 12.0% 16.0%
Return on
Invested 12.0% to 16.0% to
Capital 9.4% 11.3%(3) 11.3%(3) 14.0% 19.0%
$220 to $220 to
Operating Cash $260 $62 $96 $260 $260
Flow million million million million million
$160 to $160 to
$188 $41 $60 $180 $180
Free Cash Flow million million million million million
Revolving Less than Less than
Credit Line $16 $22 $22 $150 $200
Balance million million million million million
Dividends Per $0.20 to
Share $0.04(4) $0.04 $0.08 $0.16 $0.24
(1) Assumptions and definitions are defined on the following schedule:
"Financial Road Map assumptions and definitions"
(2) The Fiscal 2004 results include $0.9 million expense recorded in
gains, losses and nonrecurring items, net and $2.8 million related
to a write-down of a third-party software package.
(3) ROA and ROIC for Q2 & YTD of Fiscal 2005 are calculated on a
trailing 4 quarters basis. Results for the trailing 4 quarters
ending Q2 of Fiscal 2005 include $4.5 million of restructuring
charges, $3.7 million of asset impairment charges, partially
offset by $3.9 million of recovery of previous charges on a
bankrupt customer.
(4) Acxiom declared its first quarterly dividend in the fourth quarter
of Fiscal 2004.
ACXIOM CORPORATION
Financial Road Map Assumptions and Definitions
----------------------------------------------
Assumptions
-----------
1. The effective tax rate is projected to be approximately 38% for
future years.
2. Investing activities (including capital expenditures, deferred
costs and capitalized software) will be $60 million to $80 million
for each of the years presented.
3. Interest rates will remain at approximately the current levels.
4. The Company will utilize all of its tax loss carry forwards and
begin to pay U.S. federal and state income taxes during FY06.
5. The Company will pay incentives under its bonus plan of
approximately $15 million to $25 million for each of the years
beginning in fiscal 2005.
6. The Company will maintain a relatively constant mix of business
for each of its three business segments.
7. Foreign exchange rates will remain at approximately the current
levels.
8. Stock repurchases will be in amounts that yield the highest
shareholder return considering all other uses for the available
cash.
9. Diluted outstanding shares will increase slightly to reflect the
impact of in-the-money options as the stock price increases.
10. Long-term goals are based on the Company's current assessment of
opportunities and are subject to change. There are risks
associated with obtaining these goals which are explained under
forward looking statements in the press release accompanying this
Financial Road Map. Acxiom disclaims any obligation to update the
information contained in this Financial Road Map.
Definitions
-----------
1. Revenue Growth is defined as the percentage growth compared to the
previous corresponding fiscal year or comparable period.
2. Operating Margin is defined as the income from operations as a
percentage of revenue.
3. Return on Assets (ROA) is defined as income from operations
divided by average total assets for the trailing four quarters.
4. Return on Invested Capital (ROIC) is defined as income from
operations adjusted for the implied interest expense included in
operating leases divided by the trailing four quarters' average
invested capital. The implied interest adjustment for operating
leases is calculated by multiplying the average quarterly balances
of the present value of operating leases ((beginning balance +
ending balance)/2) x an 8% implied interest rate on the leases.
Average invested capital is defined as the trailing four-quarter
average of the ending quarterly balances for total assets less
cash, less non-interest bearing liabilities, plus the present
value of operating leases.
5. Operating Cash Flow is as shown on the Company's cash flow
statement.
6. Free Cash Flow is defined as cash flow from operating activities
less cash flow from investing activities excluding net cash paid
or received for acquisitions and divestitures, joint ventures and
investments.
7. Revolving Credit Line Balance is defined as actual funds borrowed
under the Company's revolving line of credit facility at the end
of the period.
8. Dividends Per Share is defined as the sum of the dividends for
that period.
ACXIOM CORPORATION
Reconciliation of Non-GAAP
Measurements
-------------------------------------
(Dollars in thousands)
Actual Actual
Years Ending March 31, Fiscal 2004 Q2 Fiscal 2005
--------------------- ---------------------
Free Cash Flow
--------------
Net cash provided by
operating activities 259,883 61,742
Proceeds received from
disposition of assets 2,783 0
Capitalized
software (27,844) (4,721)
Capital
expenditures (22,178) (4,813)
Deferral of
costs (24,881) (11,113)
---------- ----------
Free cash
flow 187,763 41,095
========== ==========
Free cash flow as defined by the Company may not be comparable to
similarly titled measures reported by other companies. Management of
the Company has included free cash flow in this Financial Road Map
because although free cash flow does not represent the amount of money
available for the Company's discretionary spending since certain
obligations of the Company must be funded out of free cash flow,
management believes that it provides investors with a useful
alternative measure of liquidity by allowing an assessment of the
amount of cash available for general corporate and strategic purposes,
including debt payments, after funding operating activities and
capital expenditures, capitalized software expenses and deferred
costs. The above table reconciles free cash flow to cash provided by
operating activities, the nearest comparable GAAP measure.
----------------------------------------------------------------------
Return on Assets (ROA) and
Return on Invested Capital
(ROIC) ROA ROIC ROA ROIC
-------------------------- ---------- ---------- ---------- ----------
(5) (5)
Numerator:
Income from operations 93,284 93,284 119,153 119,153
Add implied interest on
operating leases (1) 13,557 12,981
---------- ---------- ---------- ----------
93,284 106,841 119,153 132,134
---------- ---------- ---------- ----------
Denominator:
Average total assets(2) 1,143,120 1,143,120 1,224,411 1,224,411
Less average cash (3) (10,129) (13,339)
Less average
non-interest bearing
current liabilities (4) (166,175) (207,093)
Plus average present
value of operating
leases (1) 171,422 170,234
---------- ---------- ---------- ----------
1,143,120 1,138,238 1,224,411 1,174,212
---------- ---------- ---------- ----------
Return on invested capital 8.2% 9.4% 9.7% 11.3%
========== ========== ========== ==========
Actual
Years Ending March 31, YTD Fiscal 2005
----------------------
Free Cash Flow
--------------
Net cash provided by
operating activities 96,456
Proceeds received from
disposition of assets 0
Capitalized software (8,828)
Capital expenditures (6,636)
Deferral of costs (20,723)
----------
Free cash flow 60,269
==========
Free cash flow as defined by the Company may not be comparable to
similarly titled measures reported by other companies. Management of
the Company has included free cash flow in this Financial Road Map
because although free cash flow does not represent the amount of money
available for the Company's discretionary spending since certain
obligations of the Company must be funded out of free cash flow,
management believes that it provides investors with a useful
alternative measure of liquidity by allowing an assessment of the
amount of cash available for general corporate and strategic purposes,
including debt payments, after funding operating activities and
capital expenditures, capitalized software expenses and deferred
costs. The above table reconciles free cash flow to cash provided by
operating activities, the nearest comparable GAAP measure.
----------------------------------------------------------------------
Return on Assets (ROA) and
Return on Invested Capital (ROIC) ROA ROIC
--------------------------------- ---------- ----------
(5) (5)
Numerator:
Income from operations 119,153 119,153
Add implied interest on operating leases (1) 12,981
---------- ----------
119,153 132,134
---------- ----------
Denominator:
Average total assets (2) 1,224,411 1,224,411
Less average cash (3) (13,339)
Less average non-interest bearing current
liabilities (4) (207,093)
Plus average present value of operating
leases (1) 170,234
---------- ----------
1,224,411 1,174,212
---------- ----------
Return on invested capital 9.7% 11.3%
========== ==========
Target
Years Ending March 31, Fiscal 2005
-----------------------------------------------
Free Cash Flow
---------------
Net cash provided by
operating activities 220,000 260,000
Proceeds received from
disposition of assets 0 0
Capitalized
software (26,000) (28,000)
Capital
expenditures (16,000) (25,000)
Deferral of
costs (18,000) (27,000)
---------- ----------
Free cash flow 160,000 to 180,000
========== ==========
Free cash flow as defined by the Company may not be comparable to
similarly titled measures reported by other companies. Management of
the Company has included free cash flow in this Financial Road Map
because although free cash flow does not represent the amount of money
available for the Company's discretionary spending since certain
obligations of the Company must be funded out of free cash flow,
management believes that it provides investors with a useful
alternative measure of liquidity by allowing an assessment of the
amount of cash available for general corporate and strategic purposes,
including debt payments, after funding operating activities and
capital expenditures, capitalized software expenses and deferred
costs. The above table reconciles free cash flow to cash provided by
operating activities, the nearest comparable GAAP measure.
----------------------------------------------------------------------
Return on Assets
(ROA) and Return
on Invested
Capital (ROIC) ROA ROIC
---------------- ---------------------- ------------------------
Numerator:
Income from
operations 131,000 155,000 131,000 155,000
Add implied
interest on
operating leases
(1) 16,000 16,000
---------- ---------- ---------- ----------
131,000 155,000 147,000 171,000
---------- ---------- ---------- ----------
Denominator:
Average total
assets (2) 1,250,000 1,300,000 1,250,000 1,300,000
Less average
cash (3) (5,000) (5,000)
Less average non-
interest bearing
current
liabilities (4) (220,000) (230,000)
Plus average
present value of
operating leases (1) 201,000 201,000
---------- ---------- ---------- ----------
1,250,000 1,300,000 1,226,000 1,266,000
---------- ---------- ---------- ----------
Return on
invested
capital 10.5% to 11.9% 12.0% to 13.5%
========== ========== ========== ==========
Long-Term Goals
Years Ending March 31, Fiscal 2008
-----------------------------------------------
Free Cash Flow
---------------
Net cash provided by
operating activities 220,000 260,000
Proceeds received from
disposition of assets 0 0
Capitalized
software (26,000) (28,000)
Capital
expenditures (16,000) (25,000)
Deferral of
costs (18,000) (27,000)
---------- ----------
Free cash flow 160,000 to 180,000
========== ==========
Free cash flow as defined by the Company may not be comparable to
similarly titled measures reported by other companies. Management of
the Company has included free cash flow in this Financial Road Map
because although free cash flow does not represent the amount of money
available for the Company's discretionary spending since certain
obligations of the Company must be funded out of free cash flow,
management believes that it provides investors with a useful
alternative measure of liquidity by allowing an assessment of the
amount of cash available for general corporate and strategic purposes,
including debt payments, after funding operating activities and
capital expenditures, capitalized software expenses and deferred
costs. The above table reconciles free cash flow to cash provided by
operating activities, the nearest comparable GAAP measure.
----------------------------------------------------------------------
Return on Assets
(ROA) and Return
on Invested
Capital (ROIC) ROA ROIC
---------------- ---------------------- ------------------------
Numerator:
Income from
operations 221,000 272,000 221,000 272,000
Add implied interest
on operating leases
(1) 21,000 21,000
---------- ---------- ---------- ----------
221,000 272,000 242,000 293,000
---------- ---------- ---------- ----------
Denominator:
Average total
assets (2) 1,600,000 1,700,000 1,600,000 1,700,000
Less average
cash (3) (100,000) (200,000)
Less average
non-interest
bearing current
liabilities (4) (240,000) (240,000)
Plus average present
value of
operating leases (1) 258,000 258,000
---------- ---------- ---------- ----------
1,600,000 1,700,000 1,518,000 1,518,000
---------- ---------- ---------- ----------
Return on
invested
capital 13.8% to 16.0% 15.9% to 19.3%
========== ========== ========== ==========
Notes
-----
(1) Average present value of operating leases is the average for the
trailing 4 quarter ends of the present value of future payments on
operating leases, discounted at 8% which is the assumed implicit
interest rate included in the leases. The implied interest added
to the numerator is the 8% assumed interest charge on the average
quarterly balance ((beginning + Ending) / 2) of the present value
of the leases.
(2) Average total assets is the average of the GAAP amount for the
trailing 4 quarter ends.
(3) Average cash is the average of the GAAP amount for the trailing 4
quarter ends.
(4) Average non-interest bearing current liabilities is the average
for the trailing 4 quarter ends of all current liabilities
excluding the current portion of long-term debt.
(5) ROA and ROIC for Q2 and YTD of Fiscal 2005 are calculated on a
trailing 4 quarters basis and are therefore the same.
Return on Invested Capital (ROIC) as defined by the Company, may
not be comparable to similarly titled measures reported by other
companies. Management of the Company has included ROIC in this
Financial Road Map because it measures the capital efficiency of our
business. ROIC does not consider whether the business is financed with
debt or equity; rather ROIC calculates a return on all capital
invested in the business. The above table reconciles ROIC to a ROA
calculation using GAAP numbers. The Company uses ROIC in a number of
ways, including pricing analysis, capital expenditure evaluation, and
merger and acquisition valuation.
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