| [February 04, 2016] |
 |
Acxiom Announces Third Quarter Results
Acxiom®
(Nasdaq: ACXM), an enterprise data, analytics and software-as-a-service
company, today announced financial results for its third quarter ended
December 31, 2015.
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20160204006464/en/
Financial Highlights
-
Revenue: Total revenue was $221 million, up approximately 6%
compared to the third quarter of last year. Excluding an unfavorable
currency impact of approximately $2 million, revenue was up 7%. US
revenue of $199 million was up 8% year-over-year.
-
Operating Income (Loss): GAAP operating loss from continuing
operations improved to nearly break-even compared to a loss of $2
million in the prior year. Non-GAAP operating income from continuing
operations improved 7% to approximately $22 million.
-
Earnings (Loss) per Share: GAAP loss per share from continuing
operations was $0.01 compared to earnings per share of $0.00 in the
prior year. Non-GAAP diluted earnings per share from continuing
operations were $0.18, up from $0.17 a year ago.
-
Operating Cash Flow: Operating cash flow from continuing
operations was $37 million, up 13% from $33 million last year.
-
Free Cash Flow to Equity: Free cash flow to equity was $14
million, up 52% from $9 million in the prior year. This measure
excludes cash flows related to the IT Infrastructure Management
divestiture.
Segment Results
Marketing Services
-
Revenue was $116 million, up 1% compared to the third quarter of last
year. US revenue of $106 million was up 3% year-over-year.
-
Gross margin decreased from 36% to 33%.
-
Operating income was $20 million, down 7% compared to the prior year.
-
The declines in gross margin and operating income were driven by
infrastructure investments in the US.
Audience Solutions
-
Revenue was $77 million, up 1% compared to the prior year period. US
revenue of $66 million was up 3% year-over-year.
-
Gross margin improved from 52% to 59%.
-
Operating income was $31 million, up 6% compared to the prior year.
-
The improvements in gross margin and operating income were driven by
revenue growth and operational cost efficiencies, partially offset by
investments in R&D and sales and marketing.
Connectivity
-
Revenue was $28 million, up approximately 59% compared to the third
quarter of last year, driven by continued onboarding momentum.
Connectivity exited the quarter with a $100 million annualized revenue
run-rate.
-
Gross margin improved from 33% to 57%.
-
Operating loss improved by $7 million to a slight loss of roughly $1
million.
-
The improvements in gross margin and operating results were driven by
growth in subscriptions and royalties, partially offset by on-going
investments to support growth.
Non-GAAP results exclude items including non-cash compensation,
purchased intangible asset amortization, restructuring charges and
separation and transformation costs. A reconciliation between GAAP and
non-GAAP results is attached to this release.
"We are pleased to report a solid quarter highlighted by new customer
additions and revenue growth across all of our divisions," said Acxiom
CEO Scott Howe. "Our divisional structure is beginning to pay dividends,
and the investments we are making against our long-term strategy
continue to build the foundation for sustainable future growth."
Business Highlights
-
Connectivity added over 20 new customers during the quarter and
added 25 new partner integrations. Marketers can now onboard and
distribute their data to a growing network of more than 275 marketing
platforms and data providers.
-
Acxiom powered $122 million of gross media spend in the third
quarter, up 66% year-over-year. On a trailing twelve-month basis,
Acxiom powered $317 million of gross media spend, up 107% over the
comparable period.
-
Acxiom expanded its addressable TV offering with the acquisition of
the Audience Interconnect data platform from Allant Group. This
capacity provides partners with the leading ability to reach targeted
US households via data-driven ad campaigns. Ad sellers, agencies and
brands can activate data across an expanded ecosystem that includes TV
partners representing nearly 50 million addressable homes and over 100
million individuals.
-
Dennis Self was appointed President and General Manager of
Marketing Services. Self has held several mission critical roles
within Acxiom, including senior vice president of delivery for
Marketing Services, where he led the transformation and modernization
of the company's client delivery function. Prior to that, he served as
the company's chief information officer and senior vice president of
technical operations.
-
Acxiom repurchased 463,000 shares for approximately $10 million
during the quarter. Since inception of the share repurchase
program in August 2011, Acxiom has repurchased 14.8 million shares for
$240 million.
Financial Outlook
Acxiom's guidance excludes the impact of non-cash compensation,
purchased intangible asset amortization, restructuring charges and
separation and transformation costs. Estimates for fiscal 2016 have been
raised as follows:
-
Revenue from continuing operations in the range of $835 million to
$840 million as compared to Acxiom's previous estimate of $815
million to $840 million
-
Non-GAAP diluted earnings per share from continuing operations to
be as much as $0.54 as compared to the company's previous estimate
of between $0.45 and $0.50
Conference Call
Acxiom will hold a conference call at 4:00 p.m. CT today to further
discuss this information. Interested parties are invited to listen to
the call, which will be broadcast via the Internet at investors.acxiom.com.
A slide presentation will be referenced during the call and can be
accessed here.
About Acxiom
Acxiom is an enterprise data, analytics and software-as-a-service
company that uniquely fuses trust, experience and scale to fuel
data-driven results. For over 40 years, Acxiom has been an innovator in
harnessing the most important sources and uses of data to strengthen
connections between people, businesses and their partners. Utilizing a
channel and media neutral approach, we leverage cutting-edge,
data-oriented products and services to maximize customer value. Every
week, Acxiom powers more than a trillion transactions that enable better
living for people and better results for our 7,000+ global clients. For
more information about Acxiom, visit Acxiom.com.
Forward-Looking Statements
This release and today's conference call contains forward-looking
statements including, without limitation, statements regarding expected
levels of revenue and earnings per share. Such forward-looking
statements are subject to certain risks and uncertainties that could
cause actual results to differ materially. The following are factors,
among others, that could cause actual results to differ materially from
these forward-looking statements: the possibility that the expected
revenue from the divisions may not be realized within the expected
timeframe; the possibility that certain contracts may not generate the
anticipated revenue or profitability or may not be closed within the
anticipated time frames; the possibility that significant customers may
experience extreme, severe economic difficulty or otherwise reduce or
cancel the amount of business they do with us; the possibility that we
will not successfully complete customer contract requirements on time or
meet the service levels specified in the contracts, which may result in
contract penalties or lost revenue; the possibility that data suppliers
might withdraw data from us, leading to our inability to provide certain
products and services to our clients; the possibility that we may not be
able to attract, retain or motivate qualified technical, sales and
leadership associates, or that we may lose key associates; the
possibility that we may not be able to adequately adapt to rapidly
changing computing environments, technologies and marketing practices;
the possibility that we will not be able to continue to receive credit
upon satisfactory terms and conditions; the possibility that negative
changes in economic conditions in general or other conditions might lead
to a reduction in demand for our products and services; the possibility
that there will be changes in consumer or business information
industries and markets that negatively impact the company; the
possibility that the historical seasonality of our business may change;
the possibility that we will not be able to achieve anticipated cost
reductions and avoid unanticipated costs; the possibility that the fair
value of certain of our assets may not be equal to the carrying value of
those assets now or in future time periods; the possibility that unusual
charges may be incurred; the possibility that changes in accounting
pronouncements may occur and may impact these forward-looking
statements; the possibility that we may encounter difficulties when
entering new markets or industries; the possibility that we could
experience loss of data center capacity or interruption of
telecommunication links; the possibility that new laws may be enacted
which limit our ability to provide services to our clients and/or which
limit the use of data; and other risks and uncertainties, including
those detailed from time to time in our current and periodic reports
filed with the Securities and Exchange Commission, including our current
reports on Form 8-K, quarterly reports on Form 10-Q and annual reports
on Form 10-K, particularly the discussion under the caption "Item 1A,
RISK FACTORS" in our Annual Report on Form 10-K for the year ended March
31, 2015, which was filed with the Securities and Exchange Commission on
May 27, 2015.
With respect to the provision of products or services outside our
primary base of operations in the United States, all of the above
factors apply, along with the difficulty of doing business in numerous
sovereign jurisdictions due to differences in scale, competition,
culture, laws and regulations.
We undertake no obligation to update the information contained in this
press release or any other forward-looking statement.
Acxiom is a registered trademark of Acxiom Corporation.
To automatically receive Acxiom Corporation financial news by email,
please visit www.acxiom.com
and subscribe to email alerts.
|
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|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
(Dollars in thousands, except earnings (loss) per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
$
|
|
%
|
|
|
|
2015
|
|
2014
|
|
Variance
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
221,193
|
|
|
208,246
|
|
|
12,947
|
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
125,735
|
|
|
125,807
|
|
|
(72
|
)
|
|
(0.1
|
%)
|
|
Gross profit
|
|
95,458
|
|
|
82,439
|
|
|
13,019
|
|
|
15.8
|
%
|
|
% Gross margin
|
|
43.2
|
%
|
|
39.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
18,400
|
|
|
18,973
|
|
|
(573
|
)
|
|
(3.0
|
%)
|
|
Sales and marketing
|
|
36,581
|
|
|
30,554
|
|
|
6,027
|
|
|
19.7
|
%
|
|
General and administrative
|
|
36,793
|
|
|
31,821
|
|
|
4,972
|
|
|
15.6
|
%
|
|
Gains, losses and other items, net
|
|
4,058
|
|
|
3,381
|
|
|
677
|
|
|
20.0
|
%
|
|
Total operating expenses
|
|
95,832
|
|
|
84,729
|
|
|
11,103
|
|
|
13.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
(374
|
)
|
|
(2,290
|
)
|
|
1,916
|
|
|
83.7
|
%
|
|
% Margin
|
|
-0.2
|
%
|
|
-1.1
|
%
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,948
|
)
|
|
(2,005
|
)
|
|
57
|
|
|
2.8
|
%
|
|
Other, net
|
|
303
|
|
|
35
|
|
|
268
|
|
|
765.7
|
%
|
|
Total other expense
|
|
(1,645
|
)
|
|
(1,970
|
)
|
|
325
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income taxes
|
|
(2,019
|
)
|
|
(4,260
|
)
|
|
2,241
|
|
|
52.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
(1,580
|
)
|
|
(4,597
|
)
|
|
3,017
|
|
|
65.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) from continuing operations
|
|
(439
|
)
|
|
337
|
|
|
(776
|
)
|
|
(230.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from discontinued operations, net of tax
|
|
(971
|
)
|
|
3,819
|
|
|
(4,790
|
)
|
|
(125.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
(1,410
|
)
|
|
4,156
|
|
|
(5,566
|
)
|
|
(133.9
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) from continuing operations
|
|
(0.01
|
)
|
|
0.00
|
|
|
(0.01
|
)
|
|
(228.9
|
%)
|
|
Net earnings (loss) from discontinued operations
|
|
(0.01
|
)
|
|
0.05
|
|
|
(0.06
|
)
|
|
(125.2
|
%)
|
|
Net earnings (loss)
|
|
(0.02
|
)
|
|
0.05
|
|
|
(0.07
|
)
|
|
(133.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) from continuing operations
|
|
(0.01
|
)
|
|
0.00
|
|
|
(0.01
|
)
|
|
(231.1
|
%)
|
|
Net earnings (loss) from discontinued operations
|
|
(0.01
|
)
|
|
0.05
|
|
|
(0.06
|
)
|
|
(125.6
|
%)
|
|
Net earnings (loss)
|
|
(0.02
|
)
|
|
0.05
|
|
|
(0.07
|
)
|
|
(134.1
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Some earnings (loss) per share amounts may not add due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
(Dollars in thousands, except earnings (loss) per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
$
|
|
%
|
|
|
|
2015
|
|
2014
|
|
Variance
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
625,433
|
|
|
599,177
|
|
|
26,256
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
364,756
|
|
|
366,329
|
|
|
(1,573
|
)
|
|
(0.4
|
%)
|
|
Gross profit
|
|
260,677
|
|
|
232,848
|
|
|
27,829
|
|
|
12.0
|
%
|
|
% Gross margin
|
|
41.7
|
%
|
|
38.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
57,489
|
|
|
55,121
|
|
|
2,368
|
|
|
4.3
|
%
|
|
Sales and marketing
|
|
100,334
|
|
|
85,410
|
|
|
14,924
|
|
|
17.5
|
%
|
|
General and administrative
|
|
100,055
|
|
|
102,794
|
|
|
(2,739
|
)
|
|
(2.7
|
%)
|
|
Gains, losses and other items, net
|
|
8,098
|
|
|
11,342
|
|
|
(3,244
|
)
|
|
(28.6
|
%)
|
|
Total operating expenses
|
|
265,976
|
|
|
254,667
|
|
|
11,309
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
(5,299
|
)
|
|
(21,819
|
)
|
|
16,520
|
|
|
75.7
|
%
|
|
% Margin
|
|
-0.8
|
%
|
|
-3.6
|
%
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(5,789
|
)
|
|
(5,774
|
)
|
|
(15
|
)
|
|
(0.3
|
%)
|
|
Other, net
|
|
666
|
|
|
(234
|
)
|
|
900
|
|
|
384.6
|
%
|
|
Total other expense
|
|
(5,123
|
)
|
|
(6,008
|
)
|
|
885
|
|
|
14.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income taxes
|
|
(10,422
|
)
|
|
(27,827
|
)
|
|
17,405
|
|
|
62.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
(3,456
|
)
|
|
(10,322
|
)
|
|
6,866
|
|
|
66.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations
|
|
(6,966
|
)
|
|
(17,505
|
)
|
|
10,539
|
|
|
60.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from discontinued operations, net of tax
|
|
15,240
|
|
|
12,513
|
|
|
2,727
|
|
|
21.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
8,274
|
|
|
(4,992
|
)
|
|
13,266
|
|
|
265.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations
|
|
(0.09
|
)
|
|
(0.23
|
)
|
|
0.14
|
|
|
60.7
|
%
|
|
Net earnings from discontinued operations
|
|
0.20
|
|
|
0.16
|
|
|
0.03
|
|
|
20.4
|
%
|
|
Net earnings (loss)
|
|
0.11
|
|
|
(0.06
|
)
|
|
0.17
|
|
|
263.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations
|
|
(0.09
|
)
|
|
(0.23
|
)
|
|
0.14
|
|
|
60.7
|
%
|
|
Net earnings from discontinued operations
|
|
0.20
|
|
|
0.16
|
|
|
0.03
|
|
|
20.4
|
%
|
|
Net earnings (loss)
|
|
0.11
|
|
|
(0.06
|
)
|
|
0.17
|
|
|
263.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Some earnings (loss) per share amounts may not add due to rounding
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
RECONCILIATION OF GAAP TO NON-GAAP EPS
|
|
(Unaudited)
|
|
(Dollars in thousands, except earnings (loss) per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income taxes
|
|
(2,019
|
)
|
|
(4,260
|
)
|
|
(10,422
|
)
|
|
(27,827
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
(1,580
|
)
|
|
(4,597
|
)
|
|
(3,456
|
)
|
|
(10,322
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from continuing operations
|
|
(439
|
)
|
|
337
|
|
|
(6,966
|
)
|
|
(17,505
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from discontinued operations, net of tax
|
|
(971
|
)
|
|
3,819
|
|
|
15,240
|
|
|
12,513
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
(1,410
|
)
|
|
4,156
|
|
|
8,274
|
|
|
(4,992
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
(0.02
|
)
|
|
0.05
|
|
|
0.11
|
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
(0.02
|
)
|
|
0.05
|
|
|
0.11
|
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Excluded items:
|
|
|
|
|
|
|
|
|
|
Purchased intangible asset amortization (cost of revenue)
|
|
3,754
|
|
|
3,783
|
|
|
11,262
|
|
|
7,673
|
|
|
Non-cash stock compensation (cost of revenue and operating expenses)
|
|
8,046
|
|
|
8,450
|
|
|
23,529
|
|
|
20,100
|
|
|
Restructuring charges and other adjustments (gains, losses, and
other)
|
|
4,058
|
|
|
3,381
|
|
|
8,098
|
|
|
11,342
|
|
|
Separation and transformation costs (general and administrative)
|
|
6,628
|
|
|
7,417
|
|
|
16,140
|
|
|
26,246
|
|
|
Accelerated amortization (cost of revenue)
|
|
78
|
|
|
-
|
|
|
1,598
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total excluded items, continuing operations
|
|
22,564
|
|
|
23,031
|
|
|
60,627
|
|
|
65,361
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
|
|
|
|
|
|
and excluding items
|
|
20,545
|
|
|
18,771
|
|
|
50,205
|
|
|
37,534
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
6,399
|
|
|
5,755
|
|
|
17,194
|
|
|
13,029
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net earnings
|
|
14,146
|
|
|
13,016
|
|
|
33,011
|
|
|
24,505
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.18
|
|
|
0.17
|
|
|
0.42
|
|
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
0.18
|
|
|
0.17
|
|
|
0.42
|
|
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares
|
|
77,831
|
|
|
77,039
|
|
|
77,903
|
|
|
76,998
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares
|
|
79,346
|
|
|
78,302
|
|
|
79,336
|
|
|
78,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
CALCULATION OF EARNINGS (LOSS) PER SHARE
|
|
(Unaudited)
|
|
(In thousands, except earnings (loss) per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Basic earnings per share from continuing operations:
|
|
|
|
|
|
Numerator - net earnings (loss)
|
|
(439
|
)
|
|
337
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding
|
|
77,831
|
|
|
77,039
|
|
Basic earnings (loss) per share
|
|
(0.01
|
)
|
|
0.00
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations:
|
|
|
|
|
|
Numerator - net earnings (loss)
|
|
(439
|
)
|
|
337
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding
|
|
77,831
|
|
|
77,039
|
|
Dilutive effect of common stock options, warrants and restricted
stock
|
|
-
|
|
|
1,263
|
|
|
|
77,831
|
|
|
78,302
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
(0.01
|
)
|
|
0.00
|
|
|
|
|
|
|
|
Basic earnings (loss) per share from discontinued operations:
|
|
|
|
|
|
Numerator - net earnings (loss)
|
|
(971
|
)
|
|
3,819
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding
|
|
77,831
|
|
|
77,039
|
|
Basic earnings (loss) per share
|
|
(0.01
|
)
|
|
0.05
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share from discontinued operations:
|
|
|
|
|
|
Numerator - net earnings (loss)
|
|
(971
|
)
|
|
3,819
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding
|
|
77,831
|
|
|
77,039
|
|
Dilutive effect of common stock options, warrants and restricted
stock
|
|
-
|
|
|
1,263
|
|
|
|
77,831
|
|
|
78,302
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
(0.01
|
)
|
|
0.05
|
|
|
|
|
|
|
|
Basic earnings (loss) per share:
|
|
|
|
|
|
Numerator - net earnings (loss)
|
|
(1,410
|
)
|
|
4,156
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding
|
|
77,831
|
|
|
77,039
|
|
Basic earnings (loss) per share
|
|
(0.02
|
)
|
|
0.05
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
Numerator - net earnings (loss)
|
|
(1,410
|
)
|
|
4,156
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding
|
|
77,831
|
|
|
77,039
|
|
Dilutive effect of common stock options, warrants, and restricted
stock
|
|
-
|
|
|
1,263
|
|
|
|
77,831
|
|
|
78,302
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
(0.02
|
)
|
|
0.05
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
CALCULATION OF EARNINGS (LOSS) PER SHARE
|
|
(Unaudited)
|
|
(In thousands, except earnings (loss) per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Basic loss per share from continuing operations:
|
|
|
|
|
|
Numerator - net loss
|
|
(6,966
|
)
|
|
(17,505
|
)
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding
|
|
77,903
|
|
|
76,998
|
|
|
Basic loss per share
|
|
(0.09
|
)
|
|
(0.23
|
)
|
|
|
|
|
|
|
|
Diluted loss per share from continuing operations:
|
|
|
|
|
|
Numerator - net loss
|
|
(6,966
|
)
|
|
(17,505
|
)
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding
|
|
77,903
|
|
|
76,998
|
|
|
Diluted loss per share
|
|
(0.09
|
)
|
|
(0.23
|
)
|
|
|
|
|
|
|
|
Basic earnings per share from discontinued operations:
|
|
|
|
|
|
Numerator - net earnings
|
|
15,240
|
|
|
12,513
|
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding
|
|
77,903
|
|
|
76,998
|
|
|
Basic earnings per share
|
|
0.20
|
|
|
0.16
|
|
|
|
|
|
|
|
|
Diluted earnings per share from discontinued operations:
|
|
|
|
|
|
Numerator - net earnings
|
|
15,240
|
|
|
12,513
|
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding
|
|
77,903
|
|
|
76,998
|
|
|
Diluted earnings per share
|
|
0.20
|
|
|
0.16
|
|
|
|
|
|
|
|
|
Diluted loss per share:
|
|
|
|
|
|
Numerator - net earnings (loss)
|
|
8,274
|
|
|
(4,992
|
)
|
|
|
|
|
|
|
|
Denominator - weighted-average shares outstanding
|
|
77,903
|
|
|
76,998
|
|
|
Diluted earnings (loss) per share
|
|
0.11
|
|
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
RESULTS BY SEGMENT
|
|
(Unaudited)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
$
|
|
%
|
|
|
|
2015
|
|
2014
|
|
Variance
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Marketing Services
|
|
115,725
|
|
|
114,403
|
|
|
1,322
|
|
|
1.2
|
%
|
|
Audience Solutions
|
|
77,046
|
|
|
75,933
|
|
|
1,113
|
|
|
1.5
|
%
|
|
Connectivity
|
|
28,422
|
|
|
17,910
|
|
|
10,512
|
|
|
58.7
|
%
|
|
Total operating segment revenues
|
|
221,193
|
|
|
208,246
|
|
|
12,947
|
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
Marketing Services
|
|
38,561
|
|
|
41,572
|
|
|
(3,011
|
)
|
|
(7.2
|
%)
|
|
Audience Solutions
|
|
45,265
|
|
|
39,215
|
|
|
6,050
|
|
|
15.4
|
%
|
|
Connectivity
|
|
16,130
|
|
|
5,858
|
|
|
10,272
|
|
|
175.3
|
%
|
|
Total operating segment gross profit
|
|
99,956
|
|
|
86,645
|
|
|
13,311
|
|
|
15.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin %
|
|
|
|
|
|
|
|
|
|
Marketing Services
|
|
33.3
|
%
|
|
36.3
|
%
|
|
|
|
|
|
Audience Solutions
|
|
58.8
|
%
|
|
51.6
|
%
|
|
|
|
|
|
Connectivity
|
|
56.8
|
%
|
|
32.7
|
%
|
|
|
|
|
|
Total operating segment gross margin
|
|
45.2
|
%
|
|
41.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
|
|
|
|
|
|
|
Marketing Services
|
|
20,309
|
|
|
21,859
|
|
|
(1,550
|
)
|
|
(7.1
|
%)
|
|
Audience Solutions
|
|
30,723
|
|
|
28,919
|
|
|
1,804
|
|
|
6.2
|
%
|
|
Connectivity
|
|
(1,015
|
)
|
|
(7,802
|
)
|
|
6,787
|
|
|
87.0
|
%
|
|
Total operating segment income from operations
|
|
50,017
|
|
|
42,976
|
|
|
7,041
|
|
|
16.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) margin %
|
|
|
|
|
|
|
|
|
|
Marketing Services
|
|
17.5
|
%
|
|
19.1
|
%
|
|
|
|
|
|
Audience Solutions
|
|
39.9
|
%
|
|
38.1
|
%
|
|
|
|
|
|
Connectivity
|
|
-3.6
|
%
|
|
-43.6
|
%
|
|
|
|
|
|
Total operating segment operating margin
|
|
22.6
|
%
|
|
20.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
RESULTS BY SEGMENT
|
|
(Unaudited)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
$
|
|
%
|
|
|
|
2015
|
|
2014
|
|
Variance
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Marketing Services
|
|
336,430
|
|
|
336,441
|
|
|
(11
|
)
|
|
(0.0
|
%)
|
|
Audience Solutions
|
|
217,718
|
|
|
227,020
|
|
|
(9,302
|
)
|
|
(4.1
|
%)
|
|
Connectivity
|
|
71,285
|
|
|
35,716
|
|
|
35,569
|
|
|
99.6
|
%
|
|
Total operating segment revenues
|
|
625,433
|
|
|
599,177
|
|
|
26,256
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
Marketing Services
|
|
112,139
|
|
|
120,275
|
|
|
(8,136
|
)
|
|
(6.8
|
%)
|
|
Audience Solutions
|
|
121,258
|
|
|
116,245
|
|
|
5,013
|
|
|
4.3
|
%
|
|
Connectivity
|
|
41,582
|
|
|
5,088
|
|
|
36,494
|
|
|
717.3
|
%
|
|
Total operating segment gross profit
|
|
274,979
|
|
|
241,608
|
|
|
33,371
|
|
|
13.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin %
|
|
|
|
|
|
|
|
|
|
Marketing Services
|
|
33.3
|
%
|
|
35.7
|
%
|
|
|
|
|
|
Audience Solutions
|
|
55.7
|
%
|
|
51.2
|
%
|
|
|
|
|
|
Connectivity
|
|
58.3
|
%
|
|
14.2
|
%
|
|
|
|
|
|
Total operating segment gross margin
|
|
44.0
|
%
|
|
40.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
|
|
|
|
|
|
|
Marketing Services
|
|
55,070
|
|
|
63,263
|
|
|
(8,193
|
)
|
|
(13.0
|
%)
|
|
Audience Solutions
|
|
80,000
|
|
|
84,484
|
|
|
(4,484
|
)
|
|
(5.3
|
%)
|
|
Connectivity
|
|
(2,874
|
)
|
|
(34,043
|
)
|
|
31,169
|
|
|
91.6
|
%
|
|
Total operating segment income from operations
|
|
132,196
|
|
|
113,704
|
|
|
18,492
|
|
|
16.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) margin %
|
|
|
|
|
|
|
|
|
|
Marketing Services
|
|
16.4
|
%
|
|
18.8
|
%
|
|
|
|
|
|
Audience Solutions
|
|
36.7
|
%
|
|
37.2
|
%
|
|
|
|
|
|
Connectivity
|
|
-4.0
|
%
|
|
-95.3
|
%
|
|
|
|
|
|
Total operating segment operating margin
|
|
21.1
|
%
|
|
19.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
RECONCILIATION OF SEGMENT RESULTS
|
|
(Unaudited)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Total operating segment gross profit
|
|
99,956
|
|
|
86,645
|
|
|
274,979
|
|
|
241,608
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Purchased intangible asset amortization
|
|
3,754
|
|
|
3,783
|
|
|
11,262
|
|
|
7,673
|
|
|
Non-cash stock compensation
|
|
666
|
|
|
423
|
|
|
1,442
|
|
|
1,087
|
|
|
Accelerated amortization
|
|
78
|
|
|
-
|
|
|
1,598
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
95,458
|
|
|
82,439
|
|
|
260,677
|
|
|
232,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating segment income from operations
|
|
50,017
|
|
|
42,976
|
|
|
132,196
|
|
|
113,704
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Corporate expenses
|
|
27,827
|
|
|
22,235
|
|
|
76,868
|
|
|
70,162
|
|
|
Purchased intangible asset amortization
|
|
3,754
|
|
|
3,783
|
|
|
11,262
|
|
|
7,673
|
|
|
Non-cash stock compensation
|
|
8,046
|
|
|
8,450
|
|
|
23,529
|
|
|
20,100
|
|
|
Gains, losses and other items, net
|
|
4,058
|
|
|
3,381
|
|
|
8,098
|
|
|
11,342
|
|
|
Separation and transformation costs
|
|
6,628
|
|
|
7,417
|
|
|
16,140
|
|
|
26,246
|
|
|
Accelerated amortization
|
|
78
|
|
|
-
|
|
|
1,598
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
(374
|
)
|
|
(2,290
|
)
|
|
(5,299
|
)
|
|
(21,819
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
March 31,
|
|
$
|
|
%
|
|
|
|
2015
|
|
2015
|
|
Variance
|
|
Variance
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
186,390
|
|
|
141,010
|
|
|
45,380
|
|
|
32.2
|
%
|
|
Trade accounts receivable, net
|
|
140,821
|
|
|
126,896
|
|
|
13,925
|
|
|
11.0
|
%
|
|
Deferred income taxes
|
|
16,475
|
|
|
25,610
|
|
|
(9,135
|
)
|
|
(35.7
|
%)
|
|
Refundable income taxes
|
|
6,899
|
|
|
5,239
|
|
|
1,660
|
|
|
31.7
|
%
|
|
Restricted cash held in escrow
|
|
-
|
|
|
31,000
|
|
|
(31,000
|
)
|
|
(100.0
|
%)
|
|
Other current assets
|
|
35,918
|
|
|
34,975
|
|
|
943
|
|
|
2.7
|
%
|
|
Assets of discontinued operations
|
|
-
|
|
|
172,284
|
|
|
(172,284
|
)
|
|
(100.0
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
386,503
|
|
|
537,014
|
|
|
(150,511
|
)
|
|
(28.0
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment
|
|
520,262
|
|
|
505,721
|
|
|
14,541
|
|
|
2.9
|
%
|
|
Less - accumulated depreciation and amortization
|
|
341,868
|
|
|
329,467
|
|
|
12,401
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
178,394
|
|
|
176,254
|
|
|
2,140
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Software, net of accumulated amortization
|
|
58,947
|
|
|
68,962
|
|
|
(10,015
|
)
|
|
(14.5
|
%)
|
|
Goodwill
|
|
497,628
|
|
|
497,362
|
|
|
266
|
|
|
0.1
|
%
|
|
Purchased software licenses, net of accumulated amortization
|
|
10,043
|
|
|
9,551
|
|
|
492
|
|
|
5.2
|
%
|
|
Other assets, net
|
|
30,049
|
|
|
33,281
|
|
|
(3,232
|
)
|
|
(9.7
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,161,564
|
|
|
1,322,424
|
|
|
(160,860
|
)
|
|
(12.2
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Current installments of long-term debt
|
|
32,223
|
|
|
32,232
|
|
|
(9
|
)
|
|
(0.0
|
%)
|
|
Trade accounts payable
|
|
30,690
|
|
|
30,094
|
|
|
596
|
|
|
2.0
|
%
|
|
Accrued payroll and related expenses
|
|
46,662
|
|
|
36,659
|
|
|
10,003
|
|
|
27.3
|
%
|
|
Other accrued expenses
|
|
49,705
|
|
|
62,754
|
|
|
(13,049
|
)
|
|
(20.8
|
%)
|
|
Acquisition escrow payable
|
|
-
|
|
|
31,000
|
|
|
(31,000
|
)
|
|
(100.0
|
%)
|
|
Deferred revenue
|
|
42,681
|
|
|
33,620
|
|
|
9,061
|
|
|
27.0
|
%
|
|
Liabilities of discontinued operations
|
|
4,065
|
|
|
57,433
|
|
|
(53,368
|
)
|
|
(92.9
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
206,026
|
|
|
283,792
|
|
|
(77,766
|
)
|
|
(27.4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
168,681
|
|
|
247,855
|
|
|
(79,174
|
)
|
|
(31.9
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
66,709
|
|
|
80,675
|
|
|
(13,966
|
)
|
|
(17.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
15,705
|
|
|
6,845
|
|
|
8,860
|
|
|
129.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
12,988
|
|
|
12,794
|
|
|
194
|
|
|
1.5
|
%
|
|
Additional paid-in capital
|
|
1,071,145
|
|
|
1,034,526
|
|
|
36,619
|
|
|
3.5
|
%
|
|
Retained earnings
|
|
600,072
|
|
|
591,798
|
|
|
8,274
|
|
|
1.4
|
%
|
|
Accumulated other comprehensive income
|
|
8,141
|
|
|
9,413
|
|
|
(1,272
|
)
|
|
(13.5
|
%)
|
|
Treasury stock, at cost
|
|
(987,903
|
)
|
|
(945,274
|
)
|
|
(42,629
|
)
|
|
(4.5
|
%)
|
|
Total stockholders' equity
|
|
704,443
|
|
|
703,257
|
|
|
1,186
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,161,564
|
|
|
1,322,424
|
|
|
(160,860
|
)
|
|
(12.2
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net earnings (loss)
|
|
(1,410
|
)
|
|
4,156
|
|
|
Loss (earnings) from discontinued operations, net of tax
|
|
971
|
|
|
(3,819
|
)
|
|
Non-cash operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
20,811
|
|
|
20,510
|
|
|
Loss (gain) on disposal or impairment of assets
|
|
48
|
|
|
(68
|
)
|
|
Deferred income taxes
|
|
(5,140
|
)
|
|
4,002
|
|
|
Non-cash stock compensation expense
|
|
8,046
|
|
|
8,450
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(5,957
|
)
|
|
(978
|
)
|
|
Other assets
|
|
(622
|
)
|
|
(4,064
|
)
|
|
Accounts payable and other liabilities
|
|
13,518
|
|
|
1,411
|
|
|
Deferred revenue
|
|
6,753
|
|
|
3,290
|
|
|
Net cash provided by operating activities
|
|
37,018
|
|
|
32,890
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capitalized software
|
|
(3,627
|
)
|
|
(4,408
|
)
|
|
Capital expenditures
|
|
(10,702
|
)
|
|
(10,212
|
)
|
|
Data acquisition costs
|
|
(424
|
)
|
|
(394
|
)
|
|
Net cash paid in acquisitions
|
|
(5,386
|
)
|
|
-
|
|
|
Net cash used in investing activities
|
|
(20,139
|
)
|
|
(15,014
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Payments of debt
|
|
(8,045
|
)
|
|
(8,498
|
)
|
|
Sale of common stock, net of stock acquired for withholding taxes
|
|
2,241
|
|
|
1,680
|
|
|
Excess tax benefits from stock-based compensation
|
|
2,574
|
|
|
-
|
|
|
Acquisition of treasury stock
|
|
(10,274
|
)
|
|
-
|
|
|
Net cash used in financing activities
|
|
(13,504
|
)
|
|
(6,818
|
)
|
|
Cash flows from discontinued operations:
|
|
|
|
|
|
From operating activities
|
|
562
|
|
|
9,916
|
|
|
From investing activities
|
|
1,675
|
|
|
(2,920
|
)
|
|
From financing activities
|
|
-
|
|
|
(459
|
)
|
|
Net cash provided by discontinued operations
|
|
2,237
|
|
|
6,537
|
|
|
Effect of exchange rate changes on cash
|
|
(167
|
)
|
|
(512
|
)
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
5,445
|
|
|
17,083
|
|
|
Cash and cash equivalents at beginning of period
|
|
180,945
|
|
|
109,808
|
|
|
Cash and cash equivalents at end of period
|
|
186,390
|
|
|
126,891
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
|
Interest
|
|
1,883
|
|
|
809
|
|
|
Income taxes
|
|
738
|
|
|
182
|
|
|
Payments on capital leases and installment payment arrangements
|
|
-
|
|
|
930
|
|
|
Other debt payments, excluding line of credit
|
|
8,045
|
|
|
8,027
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net earnings (loss)
|
|
8,274
|
|
|
(4,992
|
)
|
|
Earnings from discontinued operations, net of tax
|
|
(15,240
|
)
|
|
(12,513
|
)
|
|
Non-cash operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
63,221
|
|
|
54,687
|
|
|
Loss (gain) on disposal and impairment of goodwill and other assets
|
|
938
|
|
|
(275
|
)
|
|
Deferred income taxes
|
|
(4,856
|
)
|
|
(2,020
|
)
|
|
Non-cash stock compensation expense
|
|
23,529
|
|
|
20,100
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(15,238
|
)
|
|
9,573
|
|
|
Other assets
|
|
(1,820
|
)
|
|
1,409
|
|
|
Deferred costs
|
|
(823
|
)
|
|
(316
|
)
|
|
Accounts payable and other liabilities
|
|
3,182
|
|
|
(26,679
|
)
|
|
Deferred revenue
|
|
9,205
|
|
|
(7,215
|
)
|
|
Net cash provided by operating activities
|
|
70,372
|
|
|
31,759
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capitalized software
|
|
(10,360
|
)
|
|
(14,985
|
)
|
|
Capital expenditures
|
|
(33,822
|
)
|
|
(42,352
|
)
|
|
Data acquisition costs
|
|
(1,135
|
)
|
|
(1,497
|
)
|
|
Net cash paid in acquisitions
|
|
(5,386
|
)
|
|
(265,672
|
)
|
|
Net cash used in investing activities
|
|
(50,703
|
)
|
|
(324,506
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Payments of debt
|
|
(79,183
|
)
|
|
(18,254
|
)
|
|
Sale of common stock, net of stock acquired for withholding taxes
|
|
6,343
|
|
|
(807
|
)
|
|
Excess tax benefits from stock-based compensation
|
|
2,022
|
|
|
-
|
|
|
Acquisition of treasury stock
|
|
(37,535
|
)
|
|
(9,868
|
)
|
|
Net cash used in financing activities
|
|
(108,353
|
)
|
|
(28,929
|
)
|
|
Cash flows from discontinued operations:
|
|
|
|
|
|
From operating activities
|
|
10,277
|
|
|
38,773
|
|
|
From investing activities
|
|
124,506
|
|
|
(6,250
|
)
|
|
From financing activities
|
|
(206
|
)
|
|
(1,561
|
)
|
|
Net cash provided by discontinued operations
|
|
134,577
|
|
|
30,962
|
|
|
Effect of exchange rate changes on cash
|
|
(513
|
)
|
|
(981
|
)
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
45,380
|
|
|
(291,695
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
141,010
|
|
|
418,586
|
|
|
Cash and cash equivalents at end of period
|
|
186,390
|
|
|
126,891
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
|
Interest
|
|
6,220
|
|
|
6,200
|
|
|
Income taxes
|
|
6,004
|
|
|
538
|
|
|
Payments on capital leases and installment payment arrangements
|
|
269
|
|
|
3,249
|
|
|
Other debt payments, excluding line of credit
|
|
24,120
|
|
|
16,566
|
|
|
Prepayment of debt
|
|
55,000
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
|
|
AND RECONCILIATION TO OPERATING CASH FLOW
|
|
(Unaudited)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/14
|
|
09/30/14
|
|
12/31/14
|
|
03/31/15
|
|
YTD FY2015
|
|
|
06/30/15
|
|
09/30/15
|
|
12/31/15
|
|
YTD FY2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities - continuing operations
|
|
(15,456
|
)
|
|
14,325
|
|
|
32,890
|
|
|
29,372
|
|
|
61,131
|
|
|
|
11,997
|
|
|
21,357
|
|
|
37,018
|
|
|
70,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized software
|
|
(4,969
|
)
|
|
(5,608
|
)
|
|
(4,408
|
)
|
|
(3,602
|
)
|
|
(18,587
|
)
|
|
|
(2,797
|
)
|
|
(3,936
|
)
|
|
(3,627
|
)
|
|
(10,360
|
)
|
|
|
Capital expenditures
|
|
(16,778
|
)
|
|
(15,362
|
)
|
|
(10,212
|
)
|
|
(14,600
|
)
|
|
(56,952
|
)
|
|
|
(12,876
|
)
|
|
(10,244
|
)
|
|
(10,702
|
)
|
|
(33,822
|
)
|
|
|
Data acquisition costs
|
|
(635
|
)
|
|
(468
|
)
|
|
(394
|
)
|
|
(374
|
)
|
|
(1,871
|
)
|
|
|
(430
|
)
|
|
(281
|
)
|
|
(424
|
)
|
|
(1,135
|
)
|
|
|
Payments on capital leases and installment payment arrangements
|
|
(650
|
)
|
|
(567
|
)
|
|
(471
|
)
|
|
(315
|
)
|
|
(2,003
|
)
|
|
|
(63
|
)
|
|
-
|
|
|
-
|
|
|
(63
|
)
|
|
|
Other required debt payments
|
|
(4,267
|
)
|
|
(4,272
|
)
|
|
(8,027
|
)
|
|
(8,032
|
)
|
|
(24,598
|
)
|
|
|
(8,036
|
)
|
|
(8,039
|
)
|
|
(8,045
|
)
|
|
(24,120
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
(42,755
|
)
|
|
(11,952
|
)
|
|
9,378
|
|
|
2,449
|
|
|
(42,880
|
)
|
|
|
(12,205
|
)
|
|
(1,143
|
)
|
|
14,220
|
|
|
872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS-GAAP
|
|
(Unaudited)
|
|
(Dollars in thousands, except earnings per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY16 to Q3 FY15
|
|
|
|
06/30/14
|
|
09/30/14
|
|
12/31/14
|
|
03/31/15
|
|
YTD FY2015
|
|
|
06/30/15
|
|
09/30/15
|
|
12/31/15
|
|
YTD FY2016
|
|
|
%
|
|
$
|
|
Revenues
|
|
186,683
|
|
|
204,248
|
|
|
208,246
|
|
|
205,734
|
|
|
804,911
|
|
|
|
196,895
|
|
|
207,345
|
|
|
221,193
|
|
|
625,433
|
|
|
|
6.2
|
%
|
|
12,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
115,564
|
|
|
124,958
|
|
|
125,807
|
|
|
127,708
|
|
|
494,037
|
|
|
|
117,709
|
|
|
121,312
|
|
|
125,735
|
|
|
364,756
|
|
|
|
-0.1
|
%
|
|
(72
|
)
|
|
Gross profit
|
|
71,119
|
|
|
79,290
|
|
|
82,439
|
|
|
78,026
|
|
|
310,874
|
|
|
|
79,186
|
|
|
86,033
|
|
|
95,458
|
|
|
260,677
|
|
|
|
15.8
|
%
|
|
13,019
|
|
|
% Gross margin
|
|
38.1
|
%
|
|
38.8
|
%
|
|
39.6
|
%
|
|
37.9
|
%
|
|
38.6
|
%
|
|
|
40.2
|
%
|
|
41.5
|
%
|
|
43.2
|
%
|
|
41.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
16,350
|
|
|
19,798
|
|
|
18,973
|
|
|
19,080
|
|
|
74,201
|
|
|
|
20,011
|
|
|
19,078
|
|
|
18,400
|
|
|
57,489
|
|
|
|
-3.0
|
%
|
|
(573
|
)
|
|
Sales and marketing
|
|
26,265
|
|
|
28,591
|
|
|
30,554
|
|
|
31,084
|
|
|
116,494
|
|
|
|
29,494
|
|
|
34,259
|
|
|
36,581
|
|
|
100,334
|
|
|
|
19.7
|
%
|
|
6,027
|
|
|
General and administrative
|
|
34,462
|
|
|
36,511
|
|
|
31,821
|
|
|
27,469
|
|
|
130,263
|
|
|
|
31,743
|
|
|
31,519
|
|
|
36,793
|
|
|
100,055
|
|
|
|
15.6
|
%
|
|
4,972
|
|
|
Gains, losses and other items, net
|
|
7,128
|
|
|
833
|
|
|
3,381
|
|
|
11,258
|
|
|
22,600
|
|
|
|
807
|
|
|
3,233
|
|
|
4,058
|
|
|
8,098
|
|
|
|
20.0
|
%
|
|
677
|
|
|
Total operating expenses
|
|
84,205
|
|
|
85,733
|
|
|
84,729
|
|
|
88,891
|
|
|
343,558
|
|
|
|
82,055
|
|
|
88,089
|
|
|
95,832
|
|
|
265,976
|
|
|
|
13.1
|
%
|
|
11,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
(13,086
|
)
|
|
(6,443
|
)
|
|
(2,290
|
)
|
|
(10,865
|
)
|
|
(32,684
|
)
|
|
|
(2,869
|
)
|
|
(2,056
|
)
|
|
(374
|
)
|
|
(5,299
|
)
|
|
|
83.7
|
%
|
|
1,916
|
|
|
% Margin
|
|
-7.0
|
%
|
|
-3.2
|
%
|
|
-1.1
|
%
|
|
-5.3
|
%
|
|
-4.1
|
%
|
|
|
-1.5
|
%
|
|
-1.0
|
%
|
|
-0.2
|
%
|
|
-0.8
|
%
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,948
|
)
|
|
(1,821
|
)
|
|
(2,005
|
)
|
|
(1,898
|
)
|
|
(7,672
|
)
|
|
|
(1,885
|
)
|
|
(1,956
|
)
|
|
(1,948
|
)
|
|
(5,789
|
)
|
|
|
2.8
|
%
|
|
57
|
|
|
Other, net
|
|
(106
|
)
|
|
(163
|
)
|
|
35
|
|
|
(757
|
)
|
|
(991
|
)
|
|
|
304
|
|
|
59
|
|
|
303
|
|
|
666
|
|
|
|
765.7
|
%
|
|
268
|
|
|
Total other expense
|
|
(2,054
|
)
|
|
(1,984
|
)
|
|
(1,970
|
)
|
|
(2,655
|
)
|
|
(8,663
|
)
|
|
|
(1,581
|
)
|
|
(1,897
|
)
|
|
(1,645
|
)
|
|
(5,123
|
)
|
|
|
16.5
|
%
|
|
325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income taxes
|
|
(15,140
|
)
|
|
(8,427
|
)
|
|
(4,260
|
)
|
|
(13,520
|
)
|
|
(41,347
|
)
|
|
|
(4,450
|
)
|
|
(3,953
|
)
|
|
(2,019
|
)
|
|
(10,422
|
)
|
|
|
52.6
|
%
|
|
2,241
|
|
|
Income taxes
|
|
(4,399
|
)
|
|
(1,326
|
)
|
|
(4,597
|
)
|
|
(4,483
|
)
|
|
(14,805
|
)
|
|
|
732
|
|
|
(2,608
|
)
|
|
(1,580
|
)
|
|
(3,456
|
)
|
|
|
65.6
|
%
|
|
3,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) from continuing operations
|
|
(10,741
|
)
|
|
(7,101
|
)
|
|
337
|
|
|
(9,037
|
)
|
|
(26,542
|
)
|
|
|
(5,182
|
)
|
|
(1,345
|
)
|
|
(439
|
)
|
|
(6,966
|
)
|
|
|
-230.3
|
%
|
|
(776
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from discontinued operations, net of tax
|
|
3,137
|
|
|
5,557
|
|
|
3,819
|
|
|
2,998
|
|
|
15,511
|
|
|
|
4,143
|
|
|
12,068
|
|
|
(971
|
)
|
|
15,240
|
|
|
|
-125.4
|
%
|
|
(4,790
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
(7,604
|
)
|
|
(1,544
|
)
|
|
4,156
|
|
|
(6,039
|
)
|
|
(11,031
|
)
|
|
|
(1,039
|
)
|
|
10,723
|
|
|
(1,410
|
)
|
|
8,274
|
|
|
|
-133.9
|
%
|
|
(5,566
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
(0.10
|
)
|
|
(0.02
|
)
|
|
0.05
|
|
|
(0.08
|
)
|
|
(0.14
|
)
|
|
|
(0.01
|
)
|
|
0.14
|
|
|
(0.02
|
)
|
|
0.11
|
|
|
|
-134.1
|
%
|
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share continuing operations
|
|
(0.14
|
)
|
|
(0.09
|
)
|
|
0.00
|
|
|
(0.12
|
)
|
|
(0.34
|
)
|
|
|
(0.07
|
)
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
(0.09
|
)
|
|
|
-231.1
|
%
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS-NON GAAP
|
|
(Unaudited)
|
|
(Dollars in thousands, except earnings per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY16 to Q3 FY15
|
|
|
|
06/30/14
|
|
09/30/14
|
|
12/31/14
|
|
03/31/15
|
|
YTD FY2015
|
|
|
06/30/15
|
|
09/30/15
|
|
12/31/15
|
|
YTD FY2016
|
|
|
%
|
|
$
|
|
Revenues
|
|
186,683
|
|
|
204,248
|
|
|
208,246
|
|
|
205,734
|
|
|
804,911
|
|
|
|
196,895
|
|
|
207,345
|
|
|
221,193
|
|
|
625,433
|
|
|
|
6.2
|
%
|
|
12,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
115,197
|
|
|
120,771
|
|
|
121,601
|
|
|
119,239
|
|
|
476,808
|
|
|
|
112,084
|
|
|
117,131
|
|
|
121,237
|
|
|
350,452
|
|
|
|
-0.3
|
%
|
|
(364
|
)
|
|
Gross profit
|
|
71,486
|
|
|
83,477
|
|
|
86,645
|
|
|
86,495
|
|
|
328,103
|
|
|
|
84,811
|
|
|
90,214
|
|
|
99,956
|
|
|
274,981
|
|
|
|
15.4
|
%
|
|
13,311
|
|
|
% Gross margin
|
|
38.3
|
%
|
|
40.9
|
%
|
|
41.6
|
%
|
|
42.0
|
%
|
|
40.8
|
%
|
|
|
43.1
|
%
|
|
43.5
|
%
|
|
45.2
|
%
|
|
44.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
15,911
|
|
|
16,529
|
|
|
15,559
|
|
|
15,956
|
|
|
63,955
|
|
|
|
16,384
|
|
|
15,400
|
|
|
15,647
|
|
|
47,431
|
|
|
|
0.6
|
%
|
|
88
|
|
|
Sales and marketing
|
|
25,619
|
|
|
26,789
|
|
|
28,498
|
|
|
28,915
|
|
|
109,821
|
|
|
|
28,170
|
|
|
32,945
|
|
|
34,664
|
|
|
95,779
|
|
|
|
21.6
|
%
|
|
6,166
|
|
|
General and administrative
|
|
21,388
|
|
|
25,926
|
|
|
21,847
|
|
|
19,895
|
|
|
89,056
|
|
|
|
25,586
|
|
|
23,402
|
|
|
27,455
|
|
|
76,443
|
|
|
|
25.7
|
%
|
|
5,608
|
|
|
Gains, losses and other items, net
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
Total operating expenses
|
|
62,918
|
|
|
69,244
|
|
|
65,904
|
|
|
64,766
|
|
|
262,832
|
|
|
|
70,140
|
|
|
71,747
|
|
|
77,766
|
|
|
219,653
|
|
|
|
18.0
|
%
|
|
11,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
8,568
|
|
|
14,233
|
|
|
20,741
|
|
|
21,729
|
|
|
65,271
|
|
|
|
14,671
|
|
|
18,467
|
|
|
22,190
|
|
|
55,328
|
|
|
|
7.0
|
%
|
|
1,449
|
|
|
% Margin
|
|
4.6
|
%
|
|
7.0
|
%
|
|
10.0
|
%
|
|
10.6
|
%
|
|
8.1
|
%
|
|
|
7.5
|
%
|
|
8.9
|
%
|
|
10.0
|
%
|
|
8.8
|
%
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(1,948
|
)
|
|
(1,821
|
)
|
|
(2,005
|
)
|
|
(1,898
|
)
|
|
(7,672
|
)
|
|
|
(1,885
|
)
|
|
(1,956
|
)
|
|
(1,948
|
)
|
|
(5,789
|
)
|
|
|
2.8
|
%
|
|
57
|
|
|
Other, net
|
|
(106
|
)
|
|
(163
|
)
|
|
35
|
|
|
(757
|
)
|
|
(991
|
)
|
|
|
304
|
|
|
59
|
|
|
303
|
|
|
666
|
|
|
|
765.7
|
%
|
|
268
|
|
|
Total other expense
|
|
(2,054
|
)
|
|
(1,984
|
)
|
|
(1,970
|
)
|
|
(2,655
|
)
|
|
(8,663
|
)
|
|
|
(1,581
|
)
|
|
(1,897
|
)
|
|
(1,645
|
)
|
|
(5,123
|
)
|
|
|
16.5
|
%
|
|
325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
6,514
|
|
|
12,249
|
|
|
18,771
|
|
|
19,074
|
|
|
56,608
|
|
|
|
13,090
|
|
|
16,570
|
|
|
20,545
|
|
|
50,205
|
|
|
|
9.5
|
%
|
|
1,774
|
|
|
Income taxes
|
|
2,517
|
|
|
4,757
|
|
|
5,755
|
|
|
5,324
|
|
|
18,353
|
|
|
|
5,632
|
|
|
5,163
|
|
|
6,399
|
|
|
17,194
|
|
|
|
11.2
|
%
|
|
644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing operations
|
|
3,997
|
|
|
7,492
|
|
|
13,016
|
|
|
13,750
|
|
|
38,255
|
|
|
|
7,458
|
|
|
11,407
|
|
|
14,146
|
|
|
33,011
|
|
|
|
8.7
|
%
|
|
1,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from discontinued operations, net of tax
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
3,997
|
|
|
7,492
|
|
|
13,016
|
|
|
13,750
|
|
|
38,255
|
|
|
|
7,458
|
|
|
11,407
|
|
|
14,146
|
|
|
33,011
|
|
|
|
8.7
|
%
|
|
1,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
0.05
|
|
|
0.10
|
|
|
0.17
|
|
|
0.17
|
|
|
0.49
|
|
|
|
0.09
|
|
|
0.14
|
|
|
0.18
|
|
|
0.42
|
|
|
|
7.3
|
%
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
RECONCILIATION OF GAAP TO NON-GAAP EPS
|
|
(Unaudited)
|
|
(Dollars in thousands, except earnings per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/14
|
|
09/30/14
|
|
12/31/14
|
|
03/31/15
|
|
FY2015
|
|
|
06/30/15
|
|
09/30/15
|
|
12/31/15
|
|
YTD FY2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income taxes
|
|
(15,140
|
)
|
|
(8,427
|
)
|
|
(4,260
|
)
|
|
(13,520
|
)
|
|
(41,347
|
)
|
|
|
(4,450
|
)
|
|
(3,953
|
)
|
|
(2,019
|
)
|
|
(10,422
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
(4,399
|
)
|
|
(1,326
|
)
|
|
(4,597
|
)
|
|
(4,483
|
)
|
|
(14,805
|
)
|
|
|
732
|
|
|
(2,608
|
)
|
|
(1,580
|
)
|
|
(3,456
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) from continuing operations
|
|
(10,741
|
)
|
|
(7,101
|
)
|
|
337
|
|
|
(9,037
|
)
|
|
(26,542
|
)
|
|
|
(5,182
|
)
|
|
(1,345
|
)
|
|
(439
|
)
|
|
(6,966
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings loss from discontinued operations, net of tax
|
|
3,137
|
|
|
5,557
|
|
|
3,819
|
|
|
2,998
|
|
|
15,511
|
|
|
|
4,143
|
|
|
12,068
|
|
|
(971
|
)
|
|
15,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
(7,604
|
)
|
|
(1,544
|
)
|
|
4,156
|
|
|
(6,039
|
)
|
|
(11,031
|
)
|
|
|
(1,039
|
)
|
|
10,723
|
|
|
(1,410
|
)
|
|
8,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
(0.10
|
)
|
|
(0.02
|
)
|
|
0.05
|
|
|
(0.08
|
)
|
|
(0.14
|
)
|
|
|
(0.01
|
)
|
|
0.14
|
|
|
(0.02
|
)
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
(0.10
|
)
|
|
(0.02
|
)
|
|
0.05
|
|
|
(0.08
|
)
|
|
(0.14
|
)
|
|
|
(0.01
|
)
|
|
0.14
|
|
|
(0.02
|
)
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unusual items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased intangible asset amortization (cost of revenue)
|
|
63
|
|
|
3,827
|
|
|
3,783
|
|
|
3,781
|
|
|
11,454
|
|
|
|
3,754
|
|
|
3,754
|
|
|
3,754
|
|
|
11,262
|
|
|
Non-cash stock compensation (cost of revenue and operating expenses)
|
|
3,925
|
|
|
7,725
|
|
|
8,450
|
|
|
8,216
|
|
|
28,316
|
|
|
|
8,123
|
|
|
7,360
|
|
|
8,046
|
|
|
23,529
|
|
|
Restructuring charges and other adjustments (gains, losses, and
other)
|
|
7,128
|
|
|
833
|
|
|
3,381
|
|
|
11,258
|
|
|
22,600
|
|
|
|
807
|
|
|
3,233
|
|
|
4,058
|
|
|
8,098
|
|
|
Separation and transformation costs (general and administrative)
|
|
10,538
|
|
|
8,291
|
|
|
7,417
|
|
|
5,023
|
|
|
31,269
|
|
|
|
3,414
|
|
|
6,098
|
|
|
6,628
|
|
|
16,140
|
|
|
Accelerated amortization (cost of revenue)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4,316
|
|
|
4,316
|
|
|
|
1,442
|
|
|
78
|
|
|
78
|
|
|
1,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total unusual items, continuing operations
|
|
21,654
|
|
|
20,676
|
|
|
23,031
|
|
|
32,594
|
|
|
97,955
|
|
|
|
17,540
|
|
|
20,523
|
|
|
22,564
|
|
|
60,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and excluding unusual items
|
|
6,514
|
|
|
12,249
|
|
|
18,771
|
|
|
19,074
|
|
|
56,608
|
|
|
|
13,090
|
|
|
16,570
|
|
|
20,545
|
|
|
50,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
2,517
|
|
|
4,757
|
|
|
5,755
|
|
|
5,324
|
|
|
18,353
|
|
|
|
5,632
|
|
|
5,163
|
|
|
6,399
|
|
|
17,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net earnings
|
|
3,997
|
|
|
7,492
|
|
|
13,016
|
|
|
13,750
|
|
|
38,255
|
|
|
|
7,458
|
|
|
11,407
|
|
|
14,146
|
|
|
33,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.05
|
|
|
0.10
|
|
|
0.17
|
|
|
0.18
|
|
|
0.50
|
|
|
|
0.10
|
|
|
0.15
|
|
|
0.18
|
|
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
0.05
|
|
|
0.10
|
|
|
0.17
|
|
|
0.17
|
|
|
0.49
|
|
|
|
0.09
|
|
|
0.14
|
|
|
0.18
|
|
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares
|
|
76,833
|
|
|
77,123
|
|
|
77,039
|
|
|
77,427
|
|
|
77,106
|
|
|
|
77,918
|
|
|
77,960
|
|
|
77,831
|
|
|
77,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares
|
|
78,341
|
|
|
78,307
|
|
|
78,302
|
|
|
79,027
|
|
|
78,494
|
|
|
|
79,352
|
|
|
79,310
|
|
|
79,346
|
|
|
79,336
|
|
|
|
|
ACXIOM CORPORATION AND SUBSIDIARIES
|
|
RESULTS BY SEGMENT
|
|
(Unaudited)
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY16 to Q3 FY15
|
|
|
|
|
|
06/30/14
|
|
09/30/14
|
|
12/31/14
|
|
03/31/15
|
|
YTD FY2015
|
|
|
06/30/15
|
|
09/30/15
|
|
12/31/15
|
|
YTD FY2016
|
|
|
%
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing services
|
|
109,288
|
|
|
112,750
|
|
|
114,403
|
|
|
109,662
|
|
|
446,103
|
|
|
|
107,726
|
|
|
112,979
|
|
|
115,725
|
|
|
336,430
|
|
|
|
1.2
|
%
|
|
1,322
|
|
|
|
|
Audience Solutions
|
|
73,061
|
|
|
78,026
|
|
|
75,933
|
|
|
76,816
|
|
|
303,837
|
|
|
|
68,550
|
|
|
72,122
|
|
|
77,046
|
|
|
217,718
|
|
|
|
1.5
|
%
|
|
1,113
|
|
|
|
|
Connectivity
|
|
4,334
|
|
|
13,472
|
|
|
17,910
|
|
|
19,256
|
|
|
54,972
|
|
|
|
20,619
|
|
|
22,244
|
|
|
28,422
|
|
|
71,285
|
|
|
|
58.7
|
%
|
|
10,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating segment revenues
|
|
186,683
|
|
|
204,248
|
|
|
208,246
|
|
|
205,735
|
|
|
804,911
|
|
|
|
196,895
|
|
|
207,345
|
|
|
221,193
|
|
|
625,433
|
|
|
|
6.2
|
%
|
|
12,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing services
|
|
39,452
|
|
|
39,251
|
|
|
41,572
|
|
|
36,169
|
|
|
156,444
|
|
|
|
36,033
|
|
|
37,545
|
|
|
38,561
|
|
|
112,139
|
|
|
|
-7.2
|
%
|
|
(3,011
|
)
|
|
|
|
Audience Solutions
|
|
35,605
|
|
|
41,425
|
|
|
39,215
|
|
|
42,141
|
|
|
158,386
|
|
|
|
36,823
|
|
|
39,170
|
|
|
45,265
|
|
|
121,258
|
|
|
|
15.4
|
%
|
|
6,050
|
|
|
|
|
Connectivity
|
|
(3,527
|
)
|
|
2,757
|
|
|
5,858
|
|
|
8,234
|
|
|
13,322
|
|
|
|
11,953
|
|
|
13,499
|
|
|
16,130
|
|
|
41,582
|
|
|
|
175.3
|
%
|
|
10,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating segment gross profit
|
|
71,530
|
|
|
83,433
|
|
|
86,645
|
|
|
86,544
|
|
|
328,152
|
|
|
|
84,809
|
|
|
90,214
|
|
|
99,956
|
|
|
274,979
|
|
|
|
15.4
|
%
|
|
13,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing services
|
|
36.1
|
%
|
|
34.8
|
%
|
|
36.3
|
%
|
|
33.0
|
%
|
|
35.1
|
%
|
|
|
33.4
|
%
|
|
33.2
|
%
|
|
33.3
|
%
|
|
33.3
|
%
|
|
|
|
|
|
|
|
|
Audience Solutions
|
|
48.7
|
%
|
|
53.1
|
%
|
|
51.6
|
%
|
|
54.9
|
%
|
|
52.1
|
%
|
|
|
53.7
|
%
|
|
54.3
|
%
|
|
58.8
|
%
|
|
55.7
|
%
|
|
|
|
|
|
|
|
|
Connectivity
|
|
-81.4
|
%
|
|
20.5
|
%
|
|
32.7
|
%
|
|
42.8
|
%
|
|
24.2
|
%
|
|
|
58.0
|
%
|
|
60.7
|
%
|
|
56.8
|
%
|
|
58.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating segment gross margin
|
|
38.3
|
%
|
|
40.8
|
%
|
|
41.6
|
%
|
|
42.1
|
%
|
|
40.8
|
%
|
|
|
43.1
|
%
|
|
43.5
|
%
|
|
45.2
|
%
|
|
44.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing services
|
|
20,828
|
|
|
20,576
|
|
|
21,859
|
|
|
17,984
|
|
|
81,247
|
|
|
|
16,853
|
|
|
17,908
|
|
|
20,309
|
|
|
55,070
|
|
|
|
-7.1
|
%
|
|
(1,550
|
)
|
|
|
|
Audience Solutions
|
|
24,190
|
|
|
31,375
|
|
|
28,919
|
|
|
30,594
|
|
|
115,078
|
|
|
|
24,087
|
|
|
25,190
|
|
|
30,723
|
|
|
80,000
|
|
|
|
6.2
|
%
|
|
1,804
|
|
|
|
|
Connectivity
|
|
(14,089
|
)
|
|
(12,152
|
)
|
|
(7,802
|
)
|
|
(6,026
|
)
|
|
(40,069
|
)
|
|
|
(791
|
)
|
|
(1,068
|
)
|
|
(1,015
|
)
|
|
(2,874
|
)
|
|
|
87.0
|
%
|
|
6,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating segment income from operations
|
|
30,929
|
|
|
39,799
|
|
|
42,976
|
|
|
42,552
|
|
|
156,256
|
|
|
|
40,149
|
|
|
42,030
|
|
|
50,017
|
|
|
132,196
|
|
|
|
16.4
|
%
|
|
7,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing services
|
|
19.1
|
%
|
|
18.2
|
%
|
|
19.1
|
%
|
|
16.4
|
%
|
|
18.2
|
%
|
|
|
15.6
|
%
|
|
15.9
|
%
|
|
17.5
|
%
|
|
16.4
|
%
|
|
|
|
|
|
|
|
|
Audience Solutions
|
|
33.1
|
%
|
|
40.2
|
%
|
|
38.1
|
%
|
|
39.8
|
%
|
|
37.9
|
%
|
|
|
35.1
|
%
|
|
34.9
|
%
|
|
39.9
|
%
|
|
36.7
|
%
|
|
|
|
|
|
|
|
|
Connectivity
|
|
-325.1
|
%
|
|
-90.2
|
%
|
|
-43.6
|
%
|
|
-31.3
|
%
|
|
-72.9
|
%
|
|
|
-3.8
|
%
|
|
-4.8
|
%
|
|
-3.6
|
%
|
|
-4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating segment operating margin
|
|
16.6
|
%
|
|
19.5
|
%
|
|
20.6
|
%
|
|
20.7
|
%
|
|
19.4
|
%
|
|
|
20.4
|
%
|
|
20.3
|
%
|
|
22.6
|
%
|
|
21.1
|
%
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160204006464/en/
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