LiveRamp Holdings, Inc. - FORM 8-K - EX-99.1 - 1ST QTR FY14 EARNINGS RELEASE & FINANCIALS

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8-K - FORM 8-K (1ST QUARTER FY14 EARNINGS) - LiveRamp Holdings, Inc.	f8k.htm

For more information, contact:

Katharine Boyce

Acxiom Investor Relations

501-342-1321

investor.relations@acxiom.com

EACXM

ACXIOM ANNOUNCES FIRST QUARTER RESULTS

Audience Operating System to Launch September 24 at AdWeek

LITTLE ROCK, Ark. – July 31, 2013 Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and software-as-a-service company, today announced financial results for its first quarter ended June 30, 2013.

Revenue was $266 million, down 2 percent compared to $272 million for the prior-year period. Income from operations decreased 5 percent to $24 million in the current quarter, compared to $25 million in the prior year. Marketing and Data Services revenue decreased 2 percent to $188 million in the quarter, compared to $192 million; IT Infrastructure Management revenue decreased 1 percent to $69 million in the current quarter compared to $70 million. Earnings per diluted share attributable to Acxiom stockholders were flat as compared to $0.17 in the prior year.

Operating cash flow was $169 million for the trailing twelve months, compared to $195 million for the comparable period a year ago. Free cash flow to equity was $70 million for the trailing twelve-month period, compared to $175 million for the comparable period. Free cash flow to equity for the prior-year trailing twelve-month period included $73 million in proceeds from the sale of the company’s background screening business. Free cash flow to equity is a non-GAAP financial measure. A reconciliation to the comparable GAAP measure, operating cash flow, is attached.

The company intends to launch the Acxiom Audience Operating System™ on September 24th in New York City during AdWeek. The Acxiom Audience Operating System is an innovative new technology that powers more effective marketing decisions through better data, valuable insights and powerful applications.

“The Audience Operating System is set to launch at AdWeek,” said Acxiom CEO Scott Howe. “We are pleased with our development progress and with the support we are receiving from our customers, prospects and agencies. We believe our technology is ground-breaking and will redefine marketing. For the first time marketers, agencies and publishers will have one to one marketing capabilities at scale across all channels and devices.”

The company has recently experienced client losses in the IT Infrastructure Management business, in addition to those previously disclosed in its fiscal 2013 annual report. The company estimates it will report revenue of $65 to $70 million in fiscal 2014 for all IT Infrastructure customers who have given notice of termination. Given the timing of these terminations, the company is not changing its overall financial guidance for fiscal 2014. We do, however, expect the fiscal 2015 revenue contribution from these customers to be negligible.

First Quarter Highlights:

·	The company announced the scheduled launch of the Acxiom Audience Operating System. The company intends to launch the Acxiom AOS at AdWeek in New York City on September 24.

·	The Company added several new Marketing and Data Services customers during the quarter including:

ü	Springleaf Financial. Springleaf will use Acxiom's Acquisition Database Solution, which supports customer and prospect marketing across all customer touch points, including mobile, email and direct mail.

ü	Wellmark Inc. Acxiom will assist Wellmark in understanding and executing its consumer marketing programs by providing data and campaign management expertise. The company will also collaborate with Wellmark on analytics and performance reporting.

ü	U.S. Cellular. Acxiom will provide customer recognition, data enhancement and analytics services. The company will provide customer data integration and data support for consumer marketing across all touch points, including mobile, email and direct mail.

·	Acxiom now has partner relationships with five of the six largest publishers in the U.S. This extends Acxiom’s reach to approaching 100 percent of unique visitors across the internet.

Acxiom repurchased approximately 720,000 shares for $16.1 million during the quarter. Since inception of the share repurchase program in August 2011, the company has repurchased 11.1 million shares, or approximately 13.5 percent of the outstanding common stock, for $156 million. The company’s total share repurchase authorization is $200 million.

Segment Results:

Marketing and Data Services: Revenue for the first quarter decreased slightly to $188 million, as compared to $192 million for the same period a year ago. U.S. revenue of $163 million decreased 2 percent compared to $167 million in the prior period. The quarterly results reflect the move of the company’s email business from the Other Services segment to the Marketing and Data Service segment. This change was made as a result of how the company now assesses segment results. Income from operations for the first quarter was $13 million, compared to $19 million in the prior period. Operating margin was 7 percent, compared to 10 percent in the previous year. This decline is primarily related to our investment spending in the Acxiom Audience Operating System and increased selling, general and administrative expense.

IT Infrastructure Management: Revenue for the first quarter decreased 1 percent to $69 million, compared to $70 million for the same period a year ago. Income from operations for the quarter was $11 million compared to $9 million in the comparable period. Operating margin was approximately 16 percent, compared to 13 percent.

·	Other Services: Revenue was $9 million, flat as compared to the prior-year period. Operating income was $1 million compared to a loss of $2 million in the prior period.

Financial Guidance

The following projections are forward looking and are subject to certain risks and uncertainties that could cause actual results to differ materially as detailed in the Forward-Looking Statements section of this press release. Our guidance does not take into account any unusual items. Acxiom’s estimates for fiscal 2014 are as follows:

·	We expect revenue for the fiscal year to be roughly flat as compared to $1.099 billion in fiscal 2013. Revenue growth in Marketing and Data Services is expected to be offset by a decline in IT Infrastructure Management.

·	Earnings per diluted share attributable to Acxiom shareholders are also expected to be roughly flat.

Conference Call

Acxiom will hold a conference call at 4:00 p.m. CDT today to further discuss this information. Interested parties are invited to listen to the call, which will be broadcast via the Internet at www.acxiom.com. A slide presentation will be referenced during the call and can be accessed here.

Web Link to Financials

You may link to http://www.acxiom.com/FY14_Q1_Financials for the detailed financial information we typically attach to our earnings releases.

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 may contain forward-looking statements including, without limitation, statements regarding expected levels of revenue and earnings per share as well as statements regarding future investments, new customers and new product launches and capabilities. 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 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 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, which could lead to decreases in our operating results; 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 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 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, 2013, which was filed with the Securities and Exchange Commission on May 29, 2013.

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.


ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)


	For the Three Months Ended
	June 30,
							$				%
	2013			2012			Variance			Variance

Revenue:
Marketing and data services		187,793			192,482			(4,689	)		(2.4	%)
IT Infrastructure management services		69,385			70,290			(905	)		(1.3	%)
Other services		9,015			8,887			128			1.4	%
Total Revenue		266,193			271,659			(5,466	)		(2.0	%)

Operating costs and expenses:
Cost of revenue		202,412			209,311			(6,899	)		(3.3	%)
Selling, general and administrative		39,709			36,764			2,945			8.0	%
Gains, losses and other items, net		-			160			(160	)		(100.0	%)

Total operating costs and expenses		242,121			246,235			(4,114	)		(1.7	%)

Income from operations		24,072			25,424			(1,352	)		(5.3	%)
% Margin		9.0	%		9.4	%
Other income (expense):
Interest expense		(3,019	)		(3,240	)		221			6.8	%
Other, net		104			(547	)		651			119.0	%

Total other income (expense)		(2,915	)		(3,787	)		872			23.0	%

Earnings before income taxes		21,157			21,637			(480	)		(2.2	%)

Income taxes		8,062			8,438			(376	)		(4.5	%)

Net earnings		13,095			13,199			(104	)		(0.8	%)

Less: Net loss attributable to noncontrolling interest		(85	)		(134	)		49			36.6	%

Net earnings attributable to Acxiom		13,180			13,333			(153	)		(1.1	%)

Basic earnings per share:
Net earnings		0.18			0.17			0.01			5.9	%
Net earnings attributable to Acxiom stockholders		0.18			0.17			0.01			5.9	%


Diluted earnings per share:
Net earnings		0.17			0.17			0.00			0.0	%
Net earnings attributable to Acxiom stockholders		0.17			0.17			0.00			0.0	%


ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)


	For the Three Months Ended

	June 30,		June 30,
	2013		2012

Basic earnings per share
Numerator - net earnings		13,095		13,199
Denominator - weighted-average shares outstanding		73,679		76,473
Basic earnings per share		0.18		0.17

Basic earnings per share - net earnings attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		13,180		13,333
Denominator - weighted-average shares outstanding		73,679		76,473
Basic earnings per share - net earnings attributable to Acxiom stockholders		0.18		0.17

Diluted earnings per share
Numerator - net earnings		13,095		13,199

Denominator - weighted average shares outstanding		73,679		76,473
Dilutive effect of common stock options, warrants and restricted stock		1,812		1,584
		75,491		78,057

Diluted earnings per share		0.17		0.17

Diluted earnings per share - net earnings attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		13,180		13,333

Denominator - weighted-average shares outstanding		73,679		76,473
Dilutive effect of common stock options, warrants, and restricted stock		1,812		1,584
		75,491		78,057

Diluted earnings per share - net earnings attributable to Acxiom stockholders		0.17		0.17


ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)


	For the Three Months Ended

	June 30,			June 30,
Revenue:	2013			2012

Marketing and data services		187,793			192,482
IT Infrastructure management services		69,385			70,290
Other services		9,015			8,887

Total Revenue		266,193			271,659


Income from operations:

Marketing and data services		12,657			18,703
IT Infrastructure management services		10,761			8,831
Other services		654			(1,950	)
Corporate		-			(160	)

Total income from operations		24,072			25,424

Margin:

Marketing and data services		6.7	%		9.7	%
IT Infrastructure management services		15.5	%		12.6	%
Other services		7.3	%		-21.9	%

Total margin		9.0	%		9.4	%


ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)

	June 30,			March 31,			$				%
	2013			2013			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		207,630			222,974			(15,344	)		(6.9	%)
Trade accounts receivable, net		159,654			159,882			(228	)		(0.1	%)
Deferred income taxes		13,575			13,496			79			0.6	%
Refundable income taxes		-			5,809			(5,809	)		(100.0	%)
Other current assets		55,955			58,935			(2,980	)		(5.1	%)

Total current assets		436,814			461,096			(24,282	)		(5.3	%)

Property and equipment		830,269			822,439			7,830			1.0	%
Less - accumulated depreciation and amortization		603,662			591,687			11,975			2.0	%

Property and equipment, net		226,607			230,752			(4,145	)		(1.8	%)

Software, net of accumulated amortization		28,823			24,471			4,352			17.8	%
Goodwill		379,203			381,129			(1,926	)		(0.5	%)
Purchased software licenses, net of accumulated amortization		23,931			23,604			327			1.4	%
Deferred costs, net		37,194			42,971			(5,777	)		(13.4	%)
Data acquisition costs		9,849			10,631			(782	)		(7.4	%)
Other assets, net		12,868			13,052			(184	)		(1.4	%)

		1,155,289			1,187,706			(32,417	)		(2.7	%)

Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		14,777			16,105			(1,328	)		(8.2	%)
Trade accounts payable		34,556			35,786			(1,230	)		(3.4	%)
Accrued payroll and related expenses		30,487			62,390			(31,903	)		(51.1	%)
Other accrued expenses		67,952			68,270			(318	)		(0.5	%)
Deferred revenue		44,360			41,388			2,972			7.2	%
Income taxes		2,396			637			1,759			276.1	%

Total current liabilities		194,528			224,576			(30,048	)		(13.4	%)

Long-term debt		233,838			237,400			(3,562	)		(1.5	%)

Deferred income taxes		94,260			94,918			(658	)		(0.7	%)

Other liabilities		9,952			11,444			(1,492	)		(13.0	%)

Stockholders' equity:
Common stock		12,214			12,134			80			0.7	%
Additional paid-in capital		895,452			885,184			10,268			1.2	%
Retained earnings		607,146			593,966			13,180			2.2	%
Accumulated other comprehensive income		8,874			11,423			(2,549	)		(22.3	%)
Treasury stock, at cost		(900,510	)		(882,959	)		(17,551	)		(2.0	%)
Total Acxiom stockholders' equity		623,176			619,748			3,428			0.6	%
Noncontrolling interest		(465	)		(380	)		(85	)		(22.4	%)

Total equity		622,711			619,368			3,343			0.5	%

		1,155,289			1,187,706			(32,417	)		(2.7	%)


ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)

	For the Three Months Ended

	June 30,

	2013			2012

Cash flows from operating activities:
Net earnings		13,095			13,199
Non-cash operating activities:
Depreciation and amortization		25,185			30,995
Loss on disposal or impairment of assets		-			24
Deferred income taxes		(588	)		(1,403	)
Non-cash stock compensation expense		3,181			2,653
Changes in operating assets and liabilities:
Accounts receivable		1,140			(4,609	)
Other assets		878			(1,397	)
Deferred costs		-			(647	)
Accounts payable and other liabilities		(27,309	)		(33,464	)
Deferred revenue		1,267			(7,218	)
Net cash provided (used) by operating activities		16,849			(1,867	)
Cash flows from investing activities:
Capitalized software		(5,954	)		(3,673	)
Capital expenditures		(8,920	)		(3,538	)
Data acquisition costs		(1,961	)		(2,302	)
Net cash used by investing activities		(16,835	)		(9,513	)
Cash flows from financing activities:
Payments of debt		(4,890	)		(6,856	)
Sale of common stock		5,755			1,761
Contingent consideration paid for prior acquisitions		-			(287	)
Acquisition of treasury stock		(16,139	)		(33,097	)
Net cash used by financing activities		(15,274	)		(38,479	)
Effect of exchange rate changes on cash		(84	)		(507	)

Net change in cash and cash equivalents		(15,344	)		(50,366	)
Cash and cash equivalents at beginning of period		222,974			229,648
Cash and cash equivalents at end of period		207,630			179,282

Supplemental cash flow information:
Cash paid during the period for:
Interest		3,011			3,223
Income taxes		1,084			16,193
Payments on capital leases and installment payment arrangements		4,400			4,562
Payments on software and data license liabilities		-			129
Other debt payments, excluding line of credit		490			2,165
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease
and installment payment arrangements		-			2,157


ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
AND RECONCILIATION TO OPERATING CASH FLOW
(Unaudited)
(Dollars in thousands)


	06/30/12			09/30/12			12/31/12			03/31/13			YTD FY2013			06/30/13			TTM 6/30/12			TTM 6/30/13

Net cash provided (used) by operating activities		(1,867	)		39,235			38,543			74,221			150,132			16,849			194,830			168,848

Less:
Disposition of operations		-			-			-			-			-			-			72,425			-
Capitalized software		(3,673	)		(4,074	)		(5,443	)		(6,689	)		(19,879	)		(5,954	)		(8,406	)		(22,160	)
Capital expenditures		(3,538	)		(8,178	)		(10,260	)		(16,515	)		(38,491	)		(8,920	)		(42,552	)		(43,873	)
Data acquisition costs		(2,302	)		(1,396	)		(2,766	)		(2,106	)		(8,570	)		(1,961	)		(11,838	)		(8,229	)
Payments on capital leases and installment payment arrangements		(4,562	)		(4,384	)		(4,002	)		(3,566	)		(16,514	)		(4,400	)		(18,099	)		(16,352	)
Payments on software and data license liabilities		(129	)		(130	)		(78	)		(1,432	)		(1,769	)		-			(2,678	)		(1,640	)
Other required debt payments		(2,165	)		(2,168	)		(2,172	)		(2,083	)		(8,588	)		(490	)		(8,643	)		(6,913	)

Total		(18,236	)		18,905			13,822			41,830			56,321			(4,876	)		175,039			69,681


CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)

																			Q1 FY14 to Q1 FY13
	06/30/12			09/30/12			12/31/12			03/31/13			YTD FY2013			06/30/13			%			$
Revenue:
Marketing and data services		192,482			198,602			195,146			202,510			788,740			187,793			-2.4	%	(4,689	)
IT Infrastructure management services		70,290			70,061			69,916			65,202			275,469			69,385			-1.3	%	(905	)
Other services		8,887			8,804			8,040			9,419			35,150			9,015			1.4	%	128
Total revenue		271,659			277,467			273,102			277,131			1,099,359			266,193			-2.0	%	(5,466	)

Operating costs and expenses:
Cost of revenue		209,311			209,164			208,848			213,317			840,640			202,412			-3.3	%	(6,899	)
Selling, general and administrative		36,764			38,063			37,482			41,681			153,990			39,709			8.0	%	2,945
Gains, losses and other items, net		160			32			(126	)		1,944			2,010			-			-100.0	%	(160	)

Total operating costs and expenses		246,235			247,259			246,204			256,942			996,640			242,121			-1.7	%	(4,114	)

Income from operations		25,424			30,208			26,898			20,189			102,719			24,072			-5.3	%	(1,352	)
% Margin		9.4	%		10.9	%		9.8	%		7.3	%		9.3	%		9.0	%
Other expense
Interest expense		(3,240	)		(3,317	)		(3,178	)		(2,959	)		(12,694	)		(3,019	)		6.8	%	221
Other, net		(547	)		(54	)		565			188			152			104			119.0	%	651
Total other expense		(3,787	)		(3,371	)		(2,613	)		(2,771	)		(12,542	)		(2,915	)		-23.0	%	872

Earnings before income taxes		21,637			26,837			24,285			17,418			90,177			21,157			-2.2	%	(480	)
Income taxes		8,438			10,465			9,836			4,319			33,058			8,062			-4.5	%	(376	)

Net earnings		13,199			16,372			14,449			13,099			57,119			13,095			-0.8	%	(104	)

Less: Net loss attributable
to noncontrolling interest		(134	)		(139	)		(76	)		(139	)		(488	)		(85	)		36.6	%	49

Net earnings attributable to Acxiom		13,333			16,511			14,525			13,238			57,607			13,180			-1.1	%	(153	)

Diluted earnings per share - net earnings attributable
to Acxiom stockholders		0.17			0.21			0.19			0.18			0.75			0.17			0.0	%	0.00

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)

																			Q1 FY14 to Q1 FY13
	06/30/12			09/30/12			12/31/12			03/31/13			YTD FY2013			06/30/13			%			$

Revenue:

Marketing and data services		192,482			198,602			195,146			202,510			788,740			187,793			-2	%	(4,689	)
IT Infrastructure management services		70,290			70,061			69,916			65,202			275,469			69,385			-1	%	(905	)
Other services		8,887			8,804			8,040			9,419			35,150			9,015			1	%	128

Total revenue		271,659			277,467			273,102			277,131			1,099,359			266,193			-2	%	(5,466	)


Marketing and data services		18,703			22,262			18,186			20,866			80,017			12,657			-32	%	(6,046	)
IT Infrastructure management services		8,831			8,520			9,622			2,357			29,330			10,761			22	%	1,930
Other services		(1,950	)		(542	)		(1,036	)		(1,090	)		(4,618	)		654			134	%	2,604
Corporate		(160	)		(32	)		126			(1,944	)		(2,010	)		-			100	%	160

Total income from operations		25,424			30,208			26,898			20,189			102,719			24,072			-5	%	(1,352	)

Margin:

Marketing and data services		9.7	%		11.2	%		9.3	%		10.3	%		10.1	%		6.7	%
IT Infrastructure management services		12.6	%		12.2	%		13.8	%		3.6	%		10.6	%		15.5	%
Other services		-21.9	%		-6.2	%		-12.9	%		-11.6	%		-13.1	%		7.3	%

Total		9.4	%		10.9	%		9.8	%		7.3	%		9.3	%		9.0	%

LiveRamp Holdings, Inc. - FORM 8-K - EX-99.1 - 1ST QTR FY14 EARNINGS RELEASE & FINANCIALS - July 31, 2013

Attached files

LiveRamp Holdings, Inc. Reports