LiveRamp Holdings, Inc. - FORM 8-K - EX-99.1 - Q2 FY15 EARNINGS PRESS RELEASE & FINANCIALS

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8-K - FORM 8-K Q2 FY15 - LiveRamp Holdings, Inc.	f8k.htm

For more information, contact:

Lauren Dillard

Acxiom Investor Relations

(650) 372-2242

investor.relations@acxiom.com

EACXM

ACXIOM ANNOUNCES SECOND QUARTER RESULTS

Strong Quarter For Acxiom Audience Operating System®

Tightens Full Year Guidance

LITTLE ROCK, Ark. – November 3, 2014 Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and software-as-a-service Company, today announced financial results for its second quarter ended September 30, 2014.

Second Quarter Financial Highlights

Total revenue was down 3 percent compared to the second quarter of fiscal 2014 as a result of expected IT Infrastructure Management declines.

·	Marketing and Data Services revenue was $204 million, up 2 percent compared to the second quarter of fiscal 2014.

·	IT Infrastructure Management revenue was down approximately 17 percent compared to the same period a year ago.

·	AOS® revenue, which includes LiveRamp, was approximately $15 million in the quarter.

·	Gross media spend through the Audience Operating System was approximately $37 million, up 32 percent compared to the first quarter of fiscal 2015.

GAAP operating income and diluted earnings per share were down due to expenses associated with business separation and transformation activities, non-cash compensation and acquired intangible asset amortization, as well as declines in IT Infrastructure Management.

Net loss per diluted share from continuing operations was $0.02 compared to earnings per share of $0.12 a year ago. Unusual items, non-cash compensation and intangible asset amortization impacted GAAP earnings per share by $0.20 in the quarter. Unusual items included expenses associated with the Company’s restructuring activities, separation and transformation initiatives and LiveRamp acquisition costs.

Operating cash flow from continuing operations was $132 million for the trailing twelve months, down 22 percent compared to the same period a year ago. Free cash flow to equity was $33 million for the trailing twelve-month period compared to $69 million for the comparable period. The decline was primarily due to cash restructuring and business transformation expenses.

Non-GAAP operating income and diluted earnings per share were down as a result of the declines in the IT Infrastructure Management business.

·	Non-GAAP diluted earnings per share were $0.18 compared to $0.23 a year ago.

·	Non-GAAP operating income was $25 million, down from $32 million for the same period last year.

·	Non-GAAP Marketing and Data Services operating margin improved to 10% from 9% a year ago.

Our non-GAAP results exclude unusual items, non-cash compensation and acquired intangible asset amortization. A reconciliation between GAAP and non-GAAP results is attached to this release.

The Company tightens its full year revenue and earnings per share guidance.

“While we remain hard at work rebuilding our U.S. Marketing and Data Services pipeline, we are excited that AOS adoption continues to accelerate,” said Acxiom CEO Scott Howe. “The second quarter was our best quarter to date. We signed 15 new AOS agreements during the quarter and gross media spend through the platform was up over 30 percent sequentially. With the addition of LiveRamp, our partner network expanded substantially. Advertisers can now connect their data to over 120 marketing applications.”

Second Quarter Business Highlights

·	Acxiom signed several Marketing and Data Services agreements during the quarter including new database contracts with Duke Energy, Dennis Publishing and TD Bank Group, as well as renewals with a top three credit card issuer and a leading insurance agency.

·	The Company signed 15 new AOS agreements during the quarter with several industry-leading companies including AT&T Inc., Toyota Motor Company, a global retailer and two major credit card issuers.

Acxiom inked three new agency partnerships during the second quarter. The Company signed a European-wide partnership with Starcom Mediavest Group, the number one ranked global media network. Acxiom also struck partnerships with Hakuhodo Inc., Japan’s second largest advertising agency, and DMG Solutions, a leading multicultural marketing solutions provider.

·	The Company signed a strategic partnership with Weibo Corporation, China’s leading social media platform. As part of the relationship, Weibo will leverage AOS to deliver greater digital marketing efficiency to its advertisers in a privacy-compliant and secure fashion.

·	Acxiom repurchased approximately 529,000 shares for $9.9 million during the quarter. Since inception of the share repurchase program in August 2011, the Company has repurchased 12.9 million shares, or approximately 16 percent of the outstanding common stock, for $202 million.

Financial Outlook

Our guidance includes the impact of the LiveRamp acquisition but excludes the impact of unusual items, non-cash compensation and acquired intangible asset amortization. Acxiom’s estimates for fiscal 2015 are as follows:

·	We now expect revenue from continuing operations for the fiscal year to be down roughly four percent compared to fiscal year 2014. The decline in revenue is primarily due to the impact of lost IT Infrastructure Management customers and the exit of our analog paper survey business in Europe.

·	We now expect earnings per diluted share to be in the range of $0.73 to $0.78.

Conference Call

Acxiom will hold a conference call at 3:30 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 www.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 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. 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 LiveRamp transaction 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 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, 2014, which was filed with the Securities and Exchange Commission on May 28, 2014.

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
	September 30,
							$				%
	2014			2013			Variance			Variance

Revenue:
Marketing and data services		204,248			200,952			3,296			1.6	%
IT Infrastructure management services		55,789			66,825			(11,036	)		(16.5	%)
Total revenue		260,037			267,777			(7,740	)		(2.9	%)

Operating costs and expenses:
Cost of revenue		205,318			199,107			6,211			3.1	%
Selling, general and administrative		50,483			42,859			7,624			17.8	%
Gains, losses and other items, net		929			6,584			(5,655	)		(85.9	%)

Total operating costs and expenses		256,730			248,550			8,180			3.3	%

Income from operations		3,307			19,227			(15,920	)		(82.8	%)
% Margin		1.3	%		7.2	%
Other income (expense):
Interest expense		(2,395	)		(2,980	)		585			19.6	%
Other, net		(115	)		(350	)		235			(67.1	%)

Total other income (expense)		(2,510	)		(3,330	)		820			24.6	%

Earnings from continuing operations before income taxes		797			15,897			(15,100	)		(95.0	%)

Income taxes		2,293			6,459			(4,166	)		(64.5	%)

Net earnings (loss) from continuing operations		(1,496	)		9,438			(10,934	)		(115.9	%)

Earnings from discontinued operations, net of tax		(48	)		426			(474	)		(111.3	%)

Net earnings (loss)		(1,544	)		9,864			(11,408	)		(115.7	%)

Less: Net earnings attributable to noncontrolling interest		-			25			(25	)		100.0	%

Net earnings (loss) attributable to Acxiom		(1,544	)		9,839			(11,383	)		(115.7	%)

Basic earnings (loss) per share:
Net earnings (loss) from continuing operations		(0.02	)		0.13			(0.15	)		(115.4	%)
Earnings (loss) from discontinued operations		-			0.01			(0.01	)		0.0	%
Net earnings (loss)		(0.02	)		0.13			(0.15	)		(115.4	%)

Net earnings (loss) attributable to Acxiom stockholders		(0.02	)		0.13			(0.15	)		(115.4	%)


Diluted earnings (loss) per share:
Net earnings (loss) from continuing operations		(0.02	)		0.12			(0.14	)		(116.7	%)
Earnings (loss) from discontinued operations		-			0.01			(0.01	)		0.0	%
Net earnings (loss)		(0.02	)		0.13			(0.15	)		(115.4	%)

Net earnings (loss) attributable to Acxiom stockholders		(0.02	)		0.13			(0.15	)		(115.4	%)


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


	For the Six Months Ended
	September 30,
							$				%
	2014			2013			Variance			Variance

Revenue:
Marketing and data services		390,931			388,745			2,186			0.6	%
IT Infrastructure management services		111,321			136,210			(24,889	)		(18.3	%)
Total revenue		502,252			524,955			(22,703	)		(4.3	%)

Operating costs and expenses:
Cost of revenue		397,621			395,212			2,409			0.6	%
Selling, general and administrative		97,421			80,474			16,947			21.1	%
Gains, losses and other items, net		8,381			6,584			1,797			27.3	%

Total operating costs and expenses		503,423			482,270			21,153			4.4	%

Income (loss) from operations		(1,171	)		42,685			(43,856	)		(102.7	%)
% Margin		-0.2	%		8.1	%
Other income (expense):
Interest expense		(4,966	)		(5,999	)		1,033			17.2	%
Other, net		(528	)		(246	)		(282	)		(114.6	%)

Total other income (expense)		(5,494	)		(6,245	)		751			12.0	%

Earnings (loss) from continuing operations before income taxes		(6,665	)		36,440			(43,105	)		(118.3	%)

Income taxes		903			14,499			(13,596	)		(93.8	%)

Net earnings (loss) from continuing operations		(7,568	)		21,941			(29,509	)		(134.5	%)

Earnings (loss) from discontinued operations, net of tax		(1,580	)		1,018			(2,598	)		(255.2	%)

Net earnings (loss)		(9,148	)		22,959			(32,107	)		(139.8	%)

Less: Net loss attributable to noncontrolling interest		-			(60	)		60			100.0	%

Net earnings (loss) attributable to Acxiom		(9,148	)		23,019			(32,167	)		(139.7	%)

Basic earnings (loss) per share:
Net earnings (loss) from continuing operations		(0.10	)		0.30			(0.40	)		(133.3	%)
Earnings (loss) from discontinued operations		(0.02	)		0.01			(0.03	)		(300.0	%)
Net earnings (loss)		(0.12	)		0.31			(0.43	)		(138.7	%)

Net earnings (loss) attributable to Acxiom stockholders		(0.12	)		0.31			(0.43	)		(138.7	%)


Diluted earnings (loss) per share:
Net earnings (loss) from continuing operations		(0.10	)		0.29			(0.39	)		(134.5	%)
Earnings (loss) from discontinued operations		(0.02	)		0.01			(0.03	)		(300.0	%)
Net earnings (loss)		(0.12	)		0.30			(0.42	)		(140.0	%)

Net earnings (loss) attributable to Acxiom stockholders		(0.12	)		0.30			(0.42	)		(140.0	%)


ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS
(Unaudited)
(Dollars in thousands, except earnings per share)

	For the Three Months Ended					For the Six Months Ended
	September 30,					September 30,
	2014			2013		2014			2013


Earnings (loss) from continuing operations before income taxes		797			15,897		(6,665	)		36,440

Income taxes		2,293			6,459		903			14,499

Net earnings (loss) from continuing operations		(1,496	)		9,438		(7,568	)		21,941

Earnings (loss) from discontinued operations, net of tax		(48	)		426		(1,580	)		1,018

Net earnings (loss)		(1,544	)		9,864		(9,148	)		22,959

Less: Net earnings (loss) attributable to noncontrolling interest		-			25		-			(60	)

Net earnings (loss) attributable to Acxiom		(1,544	)		9,839		(9,148	)		23,019

Earnings (loss) per share attributable to Acxiom stockholders:

Basic		(0.02	)		0.13		(0.12	)		0.31

Diluted		(0.02	)		0.13		(0.12	)		0.30

Unusual items:

Legal settlement accruals		-			3,200		-			3,200
Purchased intangible asset amortization		3,802			96		3,884			210
Live Ramp acquisition costs		40			-		820			-
Non-cash stock compensation		7,867			3,708		11,956			6,889
Restructuring charges and other adjustments		889			3,384		7,561			3,384
Separation and transformation costs		9,291			2,186		21,328			2,186

Total unusual items, continuing operations		21,889			12,574		45,549			15,869

Earnings from continuing operations before income taxes
and excluding unusual items		22,686			28,471		38,884			52,309

Income taxes		8,734			11,246		14,970			20,348

Non-GAAP earnings from continuing operations		13,952			17,225		23,914			31,961

Earnings from discontinued operations, net of tax		-			-		-			-

Non-GAAP net earnings		13,952			17,225		23,914			31,961

Less: Net loss attributable to noncontrolling interest		-			25		-			60

Non-GAAP Net earnings attributable to Acxiom		13,952			17,200		23,914			31,901

Non-GAAP earnings per share attributable to Acxiom stockholders:

Basic		0.18			0.23		0.31			0.43

Diluted		0.18			0.23		0.31			0.42

Basic weighted average shares		77,123			73,778		76,978			73,728

Diluted weighted average shares		78,307			76,036		78,324			75,764


ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)

	For the Three Months Ended				For the Six Months Ended
	September 30,				September 30,
	2014		2013		2014			2013

Income (loss) from operations		3,307		19,227		(1,171	)		42,685

Unusual items		21,889		12,574		45,549			15,869

Income (loss) from operations before unusual items		25,196		31,801		44,378			58,554


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


	For the Three Months Ended

	September 30,			September 30,
	2014			2013

Basic earnings (loss) per share from continuing operations:
Numerator - net earnings (loss)		(1,496	)		9,438
Denominator - weighted-average shares outstanding		77,123			73,778
Basic earnings (loss) per share		(0.02	)		0.13

Basic earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders:
Numerator - net earnings (loss) attributable to Acxiom		(1,544	)		9,839
Denominator - weighted-average shares outstanding		77,123			73,778
Basic earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders		(0.02	)		0.13

Diluted earnings (loss) per share from continuing operations:
Numerator - net earnings (loss)		(1,496	)		9,438

Denominator - weighted-average shares outstanding		77,123			73,778
Dilutive effect of common stock options, warrants and restricted stock		-			2,258
		77,123			76,036

Diluted earnings (loss) per share from continuing operations		(0.02	)		0.12

Diluted earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders:
Numerator - net earnings (loss) attributable to Acxiom		(1,544	)		9,839

Denominator - weighted-average shares outstanding		77,123			73,778
Dilutive effect of common stock options, warrants, and restricted stock		-			2,258
		77,123			76,036

Diluted earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders		(0.02	)		0.13


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


	For the Six Months Ended

	September 30,			September 30,
	2014			2013

Basic earnings (loss) per share from continuing operations:
Numerator - net earnings (loss)		(7,568	)		21,941
Denominator - weighted-average shares outstanding		76,978			73,728
Basic earnings (loss) per share		(0.10	)		0.30

Basic earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders:
Numerator - net earnings (loss) attributable to Acxiom		(9,148	)		23,019
Denominator - weighted-average shares outstanding		76,978			73,728
Basic earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders		(0.12	)		0.31

Diluted earnings (loss) per share from continuing operations:
Numerator - net earnings (loss)		(7,568	)		21,941

Denominator - weighted-average shares outstanding		76,978			73,728
Dilutive effect of common stock options, warrants and restricted stock		-			2,036
		76,978			75,764

Diluted earnings (loss) per share from continuing operations		(0.10	)		0.29

Diluted earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders:
Numerator - net earnings (loss) attributable to Acxiom		(9,148	)		23,019

Denominator - weighted-average shares outstanding		76,978			73,728
Dilutive effect of common stock options, warrants, and restricted stock		-			2,036
		76,978			75,764

Diluted earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders		(0.12	)		0.30


ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT

(Unaudited)
(Dollars in thousands)


	For the Three Months Ended

	September 30,			September 30,
Revenue:	2014			2013

Marketing and data services		204,248			200,952
IT Infrastructure management services		55,789			66,825

Total revenue		260,037			267,777


Income from continuing operations:

Marketing and data services		9,397			16,030
IT Infrastructure management services		4,130			11,967
Corporate		(10,220	)		(8,770	)

Total income (loss) from continuing operations		3,307			19,227

Margin:

Marketing and data services		4.6	%		8.0	%
IT Infrastructure management services		7.4	%		17.9	%

Total margin		1.3	%		7.2	%


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


	For the Six Months Ended

	September 30,			September 30,
Revenue:	2014			2013

Marketing and data services		390,931			388,745
IT Infrastructure management services		111,321			136,210

Total revenue		502,252			524,955


Income from continuing operations:

Marketing and data services		19,669			28,727
IT Infrastructure management services		8,869			22,728
Corporate		(29,709	)		(8,770	)

Total income (loss) from continuing operations		(1,171	)		42,685

Margin:

Marketing and data services		5.0	%		7.4	%
IT Infrastructure management services		8.0	%		16.7	%

Total margin		-0.2	%		8.1	%


ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP SEGMENT RESULTS
(Unaudited)
(Dollars in thousands, except earnings per share)

	For the Three Months Ended						For the Six Months Ended
	September 30,						September 30,
	2014			2013			2014			2013

Marketing and data services income from operations		9,397			16,030			19,669			28,727

Unusual items:

Purchased intangible asset amortization		3,802			96			3,884			210
Non-cash stock compensation		7,285			2,825			10,369			5,250

Marketing and data services income
from operations before unusual items		20,484			18,951			33,922			34,187

Margin		10.0	%		9.4	%		8.7	%		8.8	%

IT infrastructure management services income
from operations		4,130			11,967			8,869			22,728

Unusual items:

Purchased intangible asset amortization		-			-			-			-
Non-cash stock compensation		582			883			1,587			1,639

IT infrastructure management services income
from operations before unusual items		4,712			12,850			10,456			24,367

Margin		8.4	%		19.2	%		9.4	%		17.9	%


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

	September 30,			March 31,			$				%
	2014			2014			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		109,810			418,586			(308,776	)		(73.8	%)
Trade accounts receivable, net		156,500			160,718			(4,218	)		(2.6	%)
Deferred income taxes		18,090			12,870			5,220			40.6	%
Refundable income taxes		5,128			11,535			(6,407	)		(55.5	%)
Restricted cash held in escrow		31,000			-			31,000			100.0	%
Other current assets		57,373			54,484			2,889			5.3	%
Assets of discontinued operations		952			7,332			(6,380	)		(87.0	%)

Total current assets		378,853			665,525			(286,672	)		(43.1	%)

Property and equipment		859,574			852,236			7,338			0.9	%
Less - accumulated depreciation and amortization		637,764			635,330			2,434			0.4	%

Property and equipment, net		221,810			216,906			4,904			2.3	%

Software, net of accumulated amortization		79,768			39,425			40,343			102.3	%
Goodwill		573,468			358,384			215,084			60.0	%
Purchased software licenses, net of accumulated amortization		16,114			18,584			(2,470	)		(13.3	%)
Other assets, net		45,215			24,477			20,738			84.7	%

		1,315,228			1,323,301			(8,073	)		(0.6	%)

Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		34,118			28,567			5,551			19.4	%
Trade accounts payable		50,112			36,179			13,933			38.5	%
Accrued payroll and related expenses		31,956			62,182			(30,226	)		(48.6	%)
Other accrued expenses		67,229			70,412			(3,183	)		(4.5	%)
Acquisition escrow payable		31,000			-			31,000			(100.0	%)
Deferred revenue		35,678			47,638			(11,960	)		(25.1	%)
Income taxes		-			241			(241	)		(100.0	%)
Liabilities of discontinued operations		1,671			4,250			(2,579	)		(60.7	%)

Total current liabilities		251,764			249,469			2,295			0.9	%

Long-term debt		270,869			289,043			(18,174	)		(6.3	%)

Deferred income taxes		101,424			90,226			11,198			12.4	%

Other liabilities		12,689			11,706			983			8.4	%

Stockholders' equity:
Common stock		12,707			12,584			123			1.0	%
Additional paid-in capital		1,005,443			981,985			23,458			2.4	%
Retained earnings		593,681			602,829			(9,148	)		(1.5	%)
Accumulated other comprehensive income		11,856			13,662			(1,806	)		(13.2	%)
Treasury stock, at cost		(945,205	)		(928,203	)		(17,002	)		(1.8	%)
Total stockholders' equity		678,482			682,857			(4,375	)		(0.6	%)

		1,315,228			1,323,301			(8,073	)		(0.6	%)


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

	For the Three Months Ended

	September 30,

	2014			2013

Cash flows from operating activities:
Net earnings (loss)		(1,544	)		9,864
Earnings from discontinued operations, net of tax		48			(426	)
Non-cash operating activities:
Depreciation and amortization		28,162			25,193
Deferred income taxes		(4,179	)		60
Non-cash stock compensation expense		7,867			3,708
Changes in operating assets and liabilities:
Accounts receivable		(3,874	)		(7,058	)
Other assets		744			(736	)
Accounts payable and other liabilities		4,480			8,952
Deferred revenue		(5,912	)		2,698
Net cash provided by operating activities		25,792			42,255
Cash flows from investing activities:
Capitalized software		(5,608	)		(7,660	)
Capital expenditures		(19,396	)		(9,130	)
Data acquisition costs		(468	)		(913	)
Net cash paid in acquisitions		(265,672	)		-
Net cash provided (used) by investing activities		(291,144	)		(17,703	)
Cash flows from financing activities:
Payments of debt		(5,356	)		(4,343	)
Sale of common stock, net of stock acquired for withholding taxes		(1,813	)		12,804
Acquisition of treasury stock		(9,868	)		(22,698	)
Net cash used by financing activities		(17,037	)		(14,237	)
Cash flows from discontinued operations:
From operating activities		82			(1,734	)
From investing activities		-			(139	)
Net cash provided by discontinued operations		82			(1,873	)
Effect of exchange rate changes on cash		(801	)		544

Net change in cash and cash equivalents		(283,108	)		8,986
Cash and cash equivalents at beginning of period		392,918			207,630
Cash and cash equivalents at end of period		109,810			216,616

Supplemental cash flow information:
Cash paid during the period for:
Interest		2,516			2,975
Income taxes		59			9,924
Payments on capital leases and installment payment arrangements		1,084			2,339
Other debt payments, excluding line of credit		4,272			2,004


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

	For the Six Months Ended

	September 30,

	2014			2013

Cash flows from operating activities:
Net earnings (loss)		(9,148	)		22,959
Loss (earnings) from discontinued operations, net of tax		1,580			(1,018	)
Non-cash operating activities:
Depreciation and amortization		55,686			50,241
Deferred income taxes		(6,022	)		(528	)
Non-cash stock compensation expense		11,956			6,889
Changes in operating assets and liabilities:
Accounts receivable		8,608			(4,842	)
Other assets		3,480			7
Deferred costs		(1,383	)		-
Accounts payable and other liabilities		(24,542	)		(18,874	)
Deferred revenue		(12,556	)		3,929
Net cash provided by operating activities		27,659			58,763
Cash flows from investing activities:
Capitalized software		(10,577	)		(13,614	)
Capital expenditures		(38,397	)		(18,042	)
Data acquisition costs		(1,103	)		(2,874	)
Net cash paid in acquisitions		(265,672	)		-
Net cash provided (used) by investing activities		(315,749	)		(34,530	)
Cash flows from financing activities:
Payments of debt		(10,858	)		(9,233	)
Sale of common stock, net of stock acquired for withholding taxes		(2,487	)		18,559
Acquisition of treasury stock		(9,868	)		(38,837	)
Net cash used by financing activities		(23,213	)		(29,511	)
Cash flows from discontinued operations:
From operating activities		69			(1,393	)
From investing activities		2,927			(147	)
Net cash provided by discontinued operations		2,996			(1,540	)
Effect of exchange rate changes on cash		(469	)		460

Net change in cash and cash equivalents		(308,776	)		(6,358	)
Cash and cash equivalents at beginning of period		418,586			430,604
Cash and cash equivalents at end of period		109,810			424,246

Supplemental cash flow information:
Cash paid during the period for:
Interest		5,391			5,986
Income taxes		356			11,008
Payments on capital leases and installment payment arrangements		2,319			5,239
Other debt payments, excluding line of credit		8,539			3,994


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


		06/30/13	09/30/13	12/31/13	03/31/14	YTD FY2014	06/30/14	09/30/14	YTD FY2015	TTM 9/30/13	TTM 9/30/14

Net cash provided by operating activities - continuing operations		16,508	42,255	63,791	40,687	163,241	1,867	25,792	27,659	168,694	132,137
Net cash provided by operating activities - discontinued operations		341	(1,734)	(19)	3,147	1,735	(13)	82	69	1,440	3,197

Less:
	Payments for investments	-	-	3,633	190	3,823	-	-	-	-	3,823
	Capitalized software	(5,954)	(7,660)	(5,495)	(5,408)	(24,517)	(4,969)	(5,608)	(10,577)	(25,746)	(21,480)
	Capital expenditures	(8,912)	(9,130)	(6,681)	(14,409)	(39,132)	(19,001)	(19,396)	(38,397)	(44,553)	(59,487)
	Data acquisition costs	(1,961)	(913)	(1,786)	(3,085)	(7,745)	(635)	(468)	(1,103)	(7,746)	(5,974)
	Discontinued operations investing activities	(8)	(139)	(19)	-	(166)	2,927	-	2,927	(411)	2,908
	Payments on capital leases and installment payment arrangements	(2,900)	(2,339)	(1,675)	(1,465)	(8,379)	(1,235)	(1,084)	(2,319)	(14,317)	(5,459)
	Other required debt payments	(1,990)	(2,004)	(4,259)	(4,263)	(12,516)	(4,267)	(4,272)	(8,539)	(8,249)	(17,061)

Total		(4,876)	18,336	47,490	15,394	76,344	(25,326)	(4,954)	(30,280)	69,112	32,604


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

																									Q2 FY15 to Q2 FY14
	06/30/13			09/30/13			12/31/13			03/31/14			YTD FY2014			06/30/14			09/30/14			YTD FY2015			%			$
Revenue:
Marketing and data services		187,793			200,952			206,662			209,746			805,153			186,683			204,248			390,931			1.6	%	3,296
IT Infrastructure management services		69,385			66,825			62,099			58,816			257,125			55,532			55,789			111,321			-16.5	%	(11,036	)
Total revenue		257,178			267,777			268,761			268,562			1,062,278			242,215			260,037			502,252			-2.9	%	(7,740	)

Operating costs and expenses:
Cost of revenue		196,105			199,107			201,430			198,920			795,562			192,303			205,318			397,621			3.1	%	6,211
Selling, general and administrative		37,615			42,859			43,383			45,519			169,376			46,938			50,483			97,421			17.8	%	7,624
Impairment of goodwill and other		-			-			-			24,953			24,953			-			-			0			0.0	%	-
Gains, losses and other items, net		-			6,584			4,657			10,673			21,914			7,452			929			8,381			-85.9	%	(5,655	)

Total operating costs and expenses		233,720			248,550			249,470			280,065			1,011,805			246,693			256,730			503,423			3.3	%	8,180

Income (loss) from operations		23,458			19,227			19,291			(11,503	)		50,473			(4,478	)		3,307			(1,171	)		-82.8	%	(15,920	)
% Margin		9.1	%		7.2	%		7.2	%		-4.3	%		4.8	%		-1.8	%		1.3	%		-0.2	%
Other expense
Interest expense		(3,019	)		(2,980	)		(3,114	)		(2,558	)		(11,671	)		(2,571	)		(2,395	)		(4,966	)		19.6	%	585
Other, net		104			(350	)		1,484			579			1,817			(413	)		(115	)		(528	)		67.1	%	235
Total other expense		(2,915	)		(3,330	)		(1,630	)		(1,979	)		(9,854	)		(2,984	)		(2,510	)		(5,494	)		-24.6	%	820

Earnings (loss) from continuing operations before income taxes		20,543			15,897			17,661			(13,482	)		40,619			(7,462	)		797			(6,665	)		-95.0	%	(15,100	)
Income taxes		8,040			6,459			3,083			12,045			29,627			(1,390	)		2,293			903			-64.5	%	(4,166	)

Net earnings (loss) from continuing operations		12,503			9,438			14,578			(25,527	)		10,992			(6,072	)		(1,496	)		(7,568	)		-115.9	%	(10,934	)

Earnings (loss) from discontinued operations, net of tax		592			426			489			(3,696	)		(2,189	)		(1,532	)		(48	)		(1,580	)		-111.3	%	(474	)

Net earnings (loss)		13,095			9,864			15,067			(29,223	)		8,803			(7,604	)		(1,544	)		(9,148	)		-115.7	%	(11,408	)

Less: Net gain (loss) attributable
to noncontrolling interest		(85	)		25			-			-			(60	)		-			-			-			-100.0	%	(25	)

Net earnings (loss) attributable to Acxiom		13,180			9,839			15,067			(29,223	)		8,863			(7,604	)		(1,544	)		(9,148	)		-115.7	%	(11,383	)

Diluted earnings (loss) per share - net earnings (loss) attributable
to Acxiom stockholders		0.17			0.13			0.19			(0.38	)		0.12			(0.10	)		(0.02	)		(0.12	)		-115.4	%	(0.15	)

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
																									Q2 FY15 to Q2 FY14
	06/30/13			09/30/13			12/31/13			03/31/14			YTD FY2014			06/30/14			09/30/14			YTD FY2015			%			$

Revenue:

Marketing and data services		187,793			200,952			206,662			209,746			805,153			186,683			204,248			390,931			2	%		3,296
IT Infrastructure management services		69,385			66,825			62,099			58,816			257,125			55,532			55,789			111,321			-17	%		(11,036	)

Total revenue		257,178			267,777			268,761			268,562			1,062,278			242,215			260,037			502,252			-3	%		(7,740	)

Income from continuing operations:

Marketing and data services		12,697			16,030			22,529			27,244			78,500			10,272			9,397			19,669			-41	%		(6,633	)
IT Infrastructure management services		10,761			11,967			6,316			3,803			32,847			4,739			4,130			8,869			-65	%		(7,837	)
Corporate		-			(8,770	)		(9,554	)		(42,550	)		(60,874	)		(19,489	)		(10,220	)		(29,709	)		17	%		(1,450	)

Total income (loss) from continuing operations		23,458			19,227			19,291			(11,503	)		50,473			(4,478	)		3,307			(1,171	)		-83	%		(15,920	)

Margin:

Marketing and data services		6.8	%		8.0	%		10.9	%		13.0	%		9.7	%		5.5	%		4.6	%		5.0	%
IT Infrastructure management services		15.5	%		17.9	%		10.2	%		6.5	%		12.8	%		8.5	%		7.4	%		8.0	%

Total		9.1	%		7.2	%		7.2	%		-4.3	%		4.8	%		-1.8	%		1.3	%		-0.2	%

LiveRamp Holdings, Inc. - FORM 8-K - EX-99.1 - Q2 FY15 EARNINGS PRESS RELEASE & FINANCIALS - November 3, 2014

Attached files

LiveRamp Holdings, Inc. Reports