Acxiom Reports Fourth-Quarter Results Fiscal 2003 Revenue, Earnings Improved; Highlights Include Cash Flow, New Contracts.To download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. high-resolution high-res·o·lu·tion adj. 1. Relating to an image that has fine detail. 2. a. Of or relating to an output device that produces images that contain a large number of dots per unit of area and are therefore sharp and , print-ready JPEG JPEG in full Joint Photographic Experts Group Standard computer file format for storing graphic images in a compressed form for general use. JPEG images are compressed using a mathematical algorithm. images, click on the thumbnail A miniature representation of a page or image that is used to identify a file by its contents. Clicking the thumbnail opens the file. Thumbnails are an option in file managers, such as Windows Explorer, and they are found in photo editing and graphics program to quickly browse multiple image above. WARNING: these images are very large (800K+) Click here for caption Photo Editors/Business Editors NOTE TO MEDIA: Multimedia assets available Financial statements are available at URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com/cgi-bin/photo.cgi?pw.051403/bb12 LITTLE ROCK, Ark.--(BUSINESS WIRE)--May 14, 2003 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 of fiscal 2003 ended March 31, 2003, that were substantially in line with the expectations the Company announced April 8, 2003. Revenue of $239 million is slightly above the estimate of $238 million, and the loss per share of $.27 is slightly more than the loss of $.22 to $.26 the Company had projected, due to larger-than-expected non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. in the quarter. These non-cash charges totaled $43.1 million, compared to expectations of $35 million to $40 million. Fiscal 2003 revenue of $958 million and earnings per share of $.24 compare to $866 million in revenue and a loss per share of $.36 in fiscal 2002. 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. "As we discussed in April, the war in Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. and the continued sluggish economy Sluggish Economy A state in the economy in which the growth is slow, flat or declining. The term can refer to the economy as a whole or a component of the economy, such as weak housing starts. negatively impacted our data sales, project and volume-based revenue. Despite our fourth quarter performance, we made positive strides in fiscal 2003 that position Acxiom for success going forward," 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 generated record cash flow, signed many strategic new contracts and renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. large deals while growing our revenue more than 10 percent in a tough economic climate." Highlights of Acxiom's fourth quarter include: -- Revenue of $239 million, up 6 percent from $225 million in the same quarter a year ago. -- A loss per share of $.27 compared to earnings of $.15 per share in the fourth quarter last year. -- Included in the quarter's earnings are the non-cash charges of $43.1 million, which negatively impacted EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. by $.31. -- Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of $63.1 million and free cash flow of $48.7 million, which exceeded free cash flow projections A Cash Flow Projection is an attempt to forecast the cash flows that will be generated by an asset, often a company, over a specified time frame. Methodology Projections can be made with varying levels of detail, but any cash flow projection for a business entails of $25 million and is 15 percent higher than free cash flow in the fourth quarter last year. -- New contracts that will deliver $25 million in incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. annual revenue and renewals that are expected to generate $103 million in annual revenue. -- Committed new deals in the pipeline that are expected to add, when closed, $47 million in annual revenue. Highlights of Acxiom's fiscal 2003 include: -- Revenue of $958 million, up 11 percent from $866 million a year ago. -- Earnings per share (EPS) of $.24 compared to a loss per share of $.36 in fiscal 2002. -- Operating cash flow of $253.8 million, which represents a 69 percent improvement over fiscal 2002. Free cash flow of $199.0 million, almost triple the amount generated last year. Both fiscal 2003 cash flow numbers are Company records. -- New contracts that will contribute an annual value of $96 million and contract renewals that will generate $137 million in annual revenue. -- Acxiom continued to purchase company stock as part of the buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program announced November November: see month. 14, 2002. During fiscal 2003, the Company bought 1.8 million shares of common stock, and since March 31, 2003 has purchased an additional 2.2 million shares for a total of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4 million shares. In the fourth quarter, Acxiom completed new contracts with many large companies, including Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. , J.C. Penney Pen·ney , James Cash 1875-1971. American business executive who built the J.C. Penney chain and pioneered the practice of employee profit-sharing. and Federal Express. Other new business highlights in the year included new contracts with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) ; Visa USA; General Motors Corporation; Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. Corporation; Charles Schwab Charles Schwab can refer to:
U-shaped stainless steel or vitallium units with sharp points used for surgical fixation. epiphyseal staples used to staple epiphysis to metaphysis; have metal bracing at the corners. , Inc.; MasterCard MasterCard Worldwide (NYSE: MA) is a mutinational corporation based in Purchase, NY in the United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "Mastercard" branded debit- and International; Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. ; 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. ; and Jet Blue Airways airways Anatomy The 'pipes'–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways. Corp., and contract renewals with Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. Corp.; E*TRADE E*TRADE Financial Corporation (NASDAQ: ETFC) is a financial services company based in New York, NY, United States. It is a holding company, the major business of which is an online discount stock brokerage service for self-directed investors. Group; Canadian Tire Canadian Tire (TSX: CTC, CTC.A) is one of Canada's 35 largest publicly traded companies and operates an inter-related network of businesses engaged in retailing (hardgoods, apparel and petroleum) and services (financial and automotive). Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. ; the GM Card; Unilever Unilever Either of two linked companies, Unilever PLC (based in London) and Unilever NV (based in Rotterdam). They are the holding companies for more than 500 firms worldwide that manufacture and sell soaps, foods, and other products. ; Bank One, NA (Ohio); and Ameritrade, Inc. Fiscal 2003 Recognition -- Acxiom was ranked for the fifth time on Fortune magazine's list of "100 Best Companies to Work For in America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. ." -- Acxiom was named to the inaugural Fortune 40, a list of companies the magazine calls "a powerful group - one we think has a strong chance of beating the market." -- Acxiom was recognized by Intelligent Enterprise magazine editors as one of the leading "Companies to Watch" in 2003 and beyond. -- The Company received a "Best Practices in Storage Award" from Computerworld and the Storage Networking Industry Association An association of producers and consumers of storage networking products, whose goal is to further storage networking technology and applications. The Storage Networking Industry Association, or SNIA for "Innovation and Promise" in the implementation and design of a large data storage area network. -- Bank Technology News named Acxiom one of 10 tech companies "whose innovations are raising the bar in banking." -- American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. magazine named Josh JOSH Joshua JOSH Job Scheduling Hierarchically Herman Herman only goal in life becomes winning at cards. [Russ. Opera: Tchaikovsky, Queen of Spades, Westerman, 401] See : Obsessiveness , product manager for Acxiom's Personicx(R) segmentation product, among "the ones to watch" for future developments in the science of demographics. -- 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. 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 awarded technical unit leader Chris Bennett Chris Bennett may refer to:
USPS' Spring 2003 National Postal Postal can refer to:
Outlook The financial projections stated today are based on the Company's current expectations. These projections are forward looking, and actual results may differ materially. These projections do not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed in the future. This forecast is conditioned upon a modest improvement in the general economic environment during the 2004 fiscal year ending March 31, 2004, during which the Company expects to generate revenue of approximately $1.03 billion and earnings per share of approximately $.70. The Company is raising its free cash flow projection from $100 million to $125 million for the 2004 fiscal year. The Company reiterates its previous projections for the first quarter ending June June: see month. 30, 2003 of $235 million to $240 million in revenue and earnings in the range of $.05 to $.10 per share. 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 (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , consulting and analytics, and privacy leadership. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas Little Rock, Arkansas required military intervention to desegregate schools (1957–1958). [Am. Hist.: Van Doren, 556–557] See : Bigotry , with locations throughout the United States, and in the United Kingdom, France, 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 and the scheduled conference call will include certain non-GAAP financial measures. We have included reconciliations of these measures to comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures for each non-GAAP measure as attachments to this 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 include but are not necessarily limited to the following: 1) that the business pipeline and that our current cost structure will allow the Company to continue to meet or exceed revenue, earnings and free cash flow projections; 2) that new contracts and contract renewals will generate the indicated amounts of revenue; 3) that the Company has committed new deals in the pipeline that are expected to deliver the indicated amounts; 4) that Acxiom is well positioned for success going forward; 5) that the future results of the Company will be within the indicated ranges; 6) that the forecasts for the Company are conditioned upon modest improvement in the general economic environment and 7) that the Company will continue to use cash to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. stock and reduce debt. The following are important factors, among others, that could cause actual results to differ materially from these forward-looking statements: The possibility that certain contracts may not be closed or closed within the anticipated time frames; the possibility that certain contracts may not generate the anticipated revenue or profitability; 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 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. persist for an unpredictable period of time; the possibility that economic conditions will not improve as expected; the possibility that significant customers may experience extreme, severe economic difficulty; the possibility that the fair value of certain assets of the company 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 continued ability to
attract and retain qualified technical and leadership associates and the
possible loss of associates to other organizations; the ability to
properly motivate the sales force and other associates of the Company;
the ability to achieve cost reductions and avoid unanticipated costs;
the continued availability of credit upon satisfactory terms and
conditions; the introduction of competent 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 by other companies; potential pricing pressure due to market conditions and/or competitive products and services; changes in consumer or business information industries and markets; the Company's ability to protect proprietary information and technology or to obtain necessary licenses on commercially reasonable terms; the difficulties encountered when entering new markets or industries; changes in the legislative, accounting, regulatory 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 the Company's business including but not limited to litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , legislation, regulations and customs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's ability to collect, manage, aggregate and use data; data suppliers might withdraw data from the Company, leading to the Company's inability to provide certain products and services; short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. contracts affect the predictability of the Company's revenues; the possibility that the amount of ad hoc For this purpose. Meaning "to this" in Latin, it refers to dealing with special situations as they occur rather than functions that are repeated on a regular basis. See ad hoc query and ad hoc mode. , volume based and project work will not be as expected; the potential loss of data center capacity or interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. of telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. links or power sources; postal rate increases that could lead to reduced volumes of business; customers that may cancel (character) Cancel - (CAN, Control-X) ASCII character 24. or modify their agreements with the Company; the potential disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of the services of the United States Postal Service, their global counterparts and other delivery systems; the successful integration of any acquired businesses; and other competitive factors. With respect to the providing of products or services outside the Company's primary base of operations Noun 1. base of operations - installation from which a military force initiates operations; "the attack wiped out our forward bases" base air base, air station - a base for military aircraft army base - a large base of operations for an army in the U.S., all of the above factors and the difficulty of doing business in numerous sovereign 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. Personicx 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
March 31,
-----------------
2003 2002
-------- --------
Revenue 239,459 225,325
Operating costs and expenses:
Salaries and benefits 85,988 79,882
Computer, communications and
other equipment 100,686 58,174
Data costs 28,584 26,923
Other operating costs and expenses 50,124 31,698
Gains, losses and nonrecurring items, net 62 1,251
-------- --------
Total operating costs and expenses 265,444 197,928
-------- --------
Income (loss) from operations (25,985) 27,397
-------- --------
Other income (expense):
Interest expense (6,280) (6,810)
Other, net (7,830) 137
-------- --------
(14,110) (6,673)
-------- --------
Earnings (loss) before income taxes (40,095) 20,724
Income taxes (16,334) 6,085
-------- --------
Net earnings (loss) (23,761) 14,639
Extraordinary item, net of tax benefit - (1,271)
-------- --------
Net earnings (loss) (23,761) 13,368
======== ========
Basic earnings (loss) per share:
Earnings (loss) before extraordinary item (0.27) 0.17
Extraordinary item - (0.02)
-------- --------
Net earnings (loss) (0.27) 0.15
======== ========
Diluted earnings (loss) per share:
Earnings (loss) before extraordinary item (0.27) 0.16
Extraordinary item - (0.01)
-------- --------
Net earnings (loss) (0.27) 0.15
======== ========
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
For the Twelve
Months Ended
March 31,
-----------------
2003 2002
-------- --------
Revenue 958,222 866,110
Operating costs and expenses:
Salaries and benefits 316,304 325,135
Computer, communications and
other equipment 296,607 245,114
Data costs 116,063 115,426
Other operating costs and expenses 179,191 153,620
Gains, losses and nonrecurring items, net (5,018) 45,534
-------- --------
Total operating costs and expenses 903,147 884,829
-------- --------
Income (loss) from operations 55,075 (18,719)
-------- --------
Other income (expense):
Interest expense (21,763) (28,532)
Other, net (5,224) (3,275)
-------- --------
(26,987) (31,807)
-------- --------
Earnings (loss) before income taxes 28,088 (50,526)
Income taxes 6,321 (19,833)
-------- --------
Net earnings (loss) 21,767 (30,693)
Extraordinary item, net of income tax benefit - (1,271)
-------- --------
Net earnings (loss) 21,767 (31,964)
======== ========
Basic earnings (loss) per share:
Earnings (loss) before extraordinary item 0.25 (0.35)
Extraordinary item - (0.01)
-------- --------
Net earnings (loss) 0.25 (0.36)
======== ========
Diluted earnings (loss) per share:
Earnings (loss) before extraordinary item 0.24 (0.35)
Extraordinary item - (0.01)
-------- --------
Net earnings (loss) 0.24 (0.36)
======== ========
ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)
For the Three For the Twelve
Months Ended Months Ended
March 31, March 31,
----------------- ----------------
2003 2002 2003 2002
-------- -------- ------- --------
Basic earnings (loss) per share:
Numerator - net earnings (loss) (23,761) 13,368 21,767 (31,964)
Denominator - weighted-average
shares outstanding 88,258 87,175 88,429 88,478
-------- -------- ------- --------
Basic earnings (loss) per
share (0.27) 0.15 0.25 (0.36)
======== ======== ======= ========
Diluted earnings (loss) per share:
Numerator:
Net earnings (loss) (23,761) 13,368 21,767 (31,964)
Interest expense on
convertible bonds (net of
tax benefit) - 1,343 - -
-------- -------- ------- --------
(23,761) 14,711 21,767 (31,964)
-------- -------- ------- --------
Denominator:
Weighted-average shares
outstanding 88,258 87,175 88,429 88,478
Dilutive effect of common
stock options and warrants - 2,459 2,113 -
Dilutive effect of
convertible debt - 10,586 - -
-------- -------- ------- --------
88,258 100,220 90,542 88,478
-------- -------- ------- --------
Diluted earnings (loss)
per share (0.27) 0.15 0.24 (0.36)
======== ======== ======= ========
ACXIOM CORPORATION AND SUBSIDIARIES
REVENUES BY SEGMENT
(Unaudited)
(Dollars in thousands)
For the Three
Months Ended
March 31,
-------------------
2003 2002
--------- ---------
Services 178,100 168,954
Data and Software Products 43,550 45,861
I. T. Management 61,764 56,684
Intercompany eliminations (43,955) (46,174)
--------- ---------
Total Revenue 239,459 225,325
========= =========
For the Twelve
Months Ended
March 31,
-------------------
2003 2002
--------- ---------
Services 718,872 645,735
Data and Software Products 172,979 162,585
I. T. Management 241,096 220,688
Intercompany eliminations (174,725) (162,898)
--------- ---------
Total Revenue 958,222 866,110
========= =========
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
Mar 31, Mar 31,
2003 2002
------------ ------------
Assets
------
Current assets:
Cash and cash equivalents $5,491 $5,676
Trade accounts receivable, net 189,704 185,579
Deferred income taxes 46,056 48,716
Refundable income taxes 2,576 41,652
Other current assets 45,288 78,602
------------ ------------
Total current assets 289,115 360,225
------------ ------------
Property and equipment 389,168 331,177
Less - accumulated depreciation and
amortization 180,862 149,402
------------ ------------
Property and equipment, net 208,306 181,775
------------ ------------
Software, net of accumulated amortization 63,095 61,437
Goodwill 221,184 174,655
Purchased software licenses, net of
accumulated amortization 161,432 169,854
Unbilled and notes receivable, excluding
current portions 20,249 40,358
Deferred costs, net of accumulated
amortization 108,444 125,843
Other assets, net 21,421 42,687
------------ ------------
$1,093,246 $1,156,834
------------ ------------
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Current installments of long-term debt 29,491 23,274
Trade accounts payable 28,760 29,472
Accrued merger, integration and impairment
costs 584 3,022
Accrued payroll and related expenses 14,234 17,612
Other accrued expenses 38,689 43,176
Deferred revenue 59,907 61,114
------------ ------------
Total current liabilities 171,665 177,670
------------ ------------
Long-term debt, excluding current
installments 289,677 396,850
Deferred income taxes 69,348 71,383
Commitments and contingencies
Stockholders' equity:
Common stock 9,015 8,734
Additional paid-in capital 333,715 281,355
Retained earnings 253,558 231,791
Accumulated other comprehensive loss (2,911) (8,609)
Treasury stock, at cost (30,821) (2,340)
------------ ------------
Total stockholders' equity 562,556 510,931
------------ ------------
$1,093,246 $1,156,834
------------ ------------
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Three
Months Ended
March 31,
2003 2002
--------- ---------
Cash flows from operating activities:
Net earnings (23,761) 13,368
Non-cash operating activities:
Depreciation and amortization 66,548 31,403
Loss on disposal or impairment of assets, net 8,838 1,317
Deferred income taxes (16,903) 53,074
Tax benefit of stock options and interest 6,737 4,516
Changes in operating assets and liabilities:
Accounts receivable 8,040 (2,791)
Other assets 9,468 (25,753)
Accounts payable and other liabilities 4,810 (13,488)
Merger, integration and impairment costs (665) (1,554)
--------- ---------
Net cash provided by operating activities 63,112 60,092
--------- ---------
Cash flows from investing activities:
Proceeds received from the disposition of
operations 638 1,725
Proceeds received from the disposition of
assets 93 46
Capitalized software (8,237) (6,890)
Capital expenditures (2,403) (3,474)
Proceeds from sale-and-leaseback transaction - -
Investments in joint ventures and other
companies (125) (684)
Deferral of costs (3,883) (7,352)
Net cash paid in acquisitions - (5,331)
--------- ---------
Net cash used by investing activities (13,917) (21,960)
--------- ---------
Cash flows from financing activities:
Proceeds from debt 78,489 169,945
Payments of debt (168,916) (206,476)
Sale of common stock 3,708 2,810
Acquisition of treasury stock (23,335) -
Payments on equity forward contracts - -
--------- ---------
Net cash used by financing activities (110,054) (33,721)
--------- ---------
Effect of exchange rate changes on cash (52) (52)
--------- ---------
Net increase (decrease) in cash and cash
equivalents (60,911) 4,359
Cash and cash equivalents at beginning of period 66,402 1,317
--------- ---------
Cash and cash equivalents at end of period 5,491 5,676
--------- ---------
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest 8,919 5,035
Income taxes 375 (3,295)
--------- ---------
ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Twelve
Months Ended
March 31,
2003 2002
--------- ---------
Cash flows from operating activities:
Net earnings (loss) 21,767 (31,964)
Non-cash operating activities:
Depreciation and amortization 154,902 123,394
Loss on disposal or impairment of assets, net 8,799 46,934
Deferred income taxes 7,020 26,832
Tax benefit of stock options and interest 6,894 4,516
Changes in operating assets and liabilities:
Accounts receivable 3,999 9,120
Other assets 63,271 (62)
Accounts payable and other liabilities (10,422) (15,836)
Merger, integration and impairment costs (2,437) (12,329)
--------- ---------
Net cash provided by operating activities 253,793 150,605
--------- ---------
Cash flows from investing activities:
Proceeds received from the disposition of
operations 1,089 9,211
Proceeds received from the disposition of
assets 293 173
Capitalized software (34,573) (24,121)
Capital expenditures (13,212) (14,875)
Proceeds from sale-and-leaseback transaction 7,729 5,999
Investments in joint ventures and other
companies (1,177) (7,912)
Deferral of costs (15,027) (48,131)
Net cash paid in acquisitions (14,105) (5,331)
--------- ---------
Net cash used by investing activities (68,983) (84,987)
--------- ---------
Cash flows from financing activities:
Proceeds from debt 161,005 319,931
Payments of debt (337,399) (381,876)
Sale of common stock 18,061 11,441
Acquisition of treasury stock (26,734) -
Payments on equity forward contracts - (23,547)
--------- ---------
Net cash used by financing activities (185,067) (74,051)
--------- ---------
Effect of exchange rate changes on cash 72 (67)
--------- ---------
Net increase (decrease) in cash and cash
equivalents (185) (8,500)
Cash and cash equivalents at beginning of period 5,676 14,176
--------- ---------
Cash and cash equivalents at end of period 5,491 5,676
--------- ---------
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest 26,347 25,746
Income taxes (40,045) 9,364
--------- ---------
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
========== ========== =========== ========== ==========
Forecast
Yr ended
3/31/2004
Net cash
provided by
operating
activities 185,000
Proceeds
received from
disposition
of assets -
Capitalized
software (28,000)
Capital
expenditures (15,000)
Deferral of
costs (17,000)
Proceeds from
sale and
leaseback
transaction -
----------
Free cash flow 125,000
==========
ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP EARNINGS MEASUREMENTS
(Unaudited)
(Dollars in thousands, except earnings per share)
FY FY Q4 Q4
2003 2002 2003 2002
------- -------- -------- -------
Pretax income as reported 28,088 (50,526) (40,095) 20,724
Gains, losses and nonrecurring items (5,018) 45,534 62 1,251
Expenses prior to impairment charge
(1) - 18,387 - -
Accelerated depreciation,
amortization and other impairment
charges 34,248 25,846 34,248 -
Investment write-downs 8,838 1,062 8,838 -
------- -------- -------- -------
Pretax income as adjusted 66,156 40,303 3,053 21,975
======= ======== ======== =======
Net income as reported 21,767 (31,964) (23,761) 13,368
Gains, losses and nonrecurring items (3,211) 29,142 40 801
Expenses prior to impairment charge
(1) - 11,768 - -
Accelerated depreciation,
amortization and other impairment
charges 21,919 16,541 21,919 -
Investment write-downs 5,657 645 5,657 -
Extraordinary item - 1,271 - 1,271
------- -------- -------- -------
Net income as adjusted 46,132 27,403 3,855 15,440
======= ======== ======== =======
Diluted earnings per share:
As reported 0.24 (0.36) (0.27) 0.15
======= ======== ======== =======
As adjusted 0.50 0.30 0.04 0.17
======= ======== ======== =======
(1) Expenses prior to the decision to restructure operations, which
will not repeat after the restructuring.
Note: Financial statements are available at URL: http://www.businesswire.com/cgi-bin/photo.cgi?pw.051403/bb12 |
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