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EX-99.2 - EX-99.2 - ACI WORLDWIDE, INC.d148848dex992.htm
8-K - 8-K - ACI WORLDWIDE, INC.d148848d8k.htm

Exhibit 99.1

 

LOGO       News Release

ACI Worldwide, Inc. Reports Financial Results for the

Quarter and Full Year Ended December 31, 2015

HIGHLIGHTS

 

    Organic revenue up 7% in Q4 and 3% for the year, FX adjusted

 

    Cash flow from operations grew to $183 million, up 23% from last year

 

    Total sales bookings up 14% in Q4 and 19% for the year, FX adjusted

 

    Net new sales bookings (SNET) up 10% in Q4 and 8% for the year, FX adjusted

 

    60-month backlog up $162 million in 2015 to $4.3 billion, organic and FX adjusted

 

    Providing 2016 guidance: accelerating organic growth combined with margin expansion

NAPLES, FLA — February 25, 2016 — ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time electronic payment and banking solutions, today announced financial results for the quarter and full year ended December 31, 2015.

“We delivered our strongest organic SNET growth of the year in Q4 and set a new sales bookings record. With the retailer segment showing particular interest in our omni-channel offering and with the introduction of our new Universal Payments support for our legacy BASE24 customers, we are increasingly confident our recent strategic moves position the Company well for long-term growth,” commented Phil Heasley, President and CEO, ACI Worldwide. “We look forward to capitalizing on the acceleration in broad market interest we are seeing for our payment solutions in 2016 and beyond.”

Q4 FINANCIAL SUMMARY

During the quarter new sales bookings, net of term extensions, (SNET) grew 10% after adjusting for foreign currency fluctuations. Overall bookings, including term extensions, grew 14% after adjusting for foreign currency fluctuations. This term extension growth was higher than anticipated, which resulted in higher commissions and related selling expenses, resulting in a near-term impact to profit.


GAAP revenue in Q4 was $309 million, up 6% from last year. Excluding incremental contribution from the PAY.ON acquisition and adjusting for foreign currency fluctuations, Q4 revenue increased 7% from the same quarter last year.

Q4 adjusted EBITDA of $115 million grew $8 million, or up 8%, from Q4 2014.

We ended the year with a 60-month backlog of $4.3 billion and a 12-month backlog of $918 million. Excluding incremental PAY.ON contribution and adjusting for foreign currency fluctuations, our 60-month backlog increased $110 million and our 12-month backlog grew $27 million from Q3 2015.

FULL YEAR 2015 FINANCIAL SUMMARY

Full year new sales bookings, net of term extensions (SNET) grew 8% after adjusting for foreign currency fluctuations. Overall bookings, including term extensions, grew 19% to $1.24 billion after adjusting for foreign currency fluctuations.

Full year GAAP revenue was $1.046 billion, up $55 million, or 5% over 2014, after adjusting for foreign currency fluctuations.

Adjusted EBITDA of $260 million was flat with last year. After adjusting for pass through interchange revenues of $130 million and $118 million in 2015 and 2014, respectively, net adjusted EBITDA margin represented 28.4% in 2015 versus 28.9% in 2014. Adjusted EBITDA figures exclude significant transaction-related expenses of $15 million and $23 million in 2015 and 2014, respectively.

GAAP net income for the year was $85 million, or $0.72 per diluted share, up 26% and 24%, respectively. Operating free cash flow for the year was $143 million, up 6% from $134 million in 2014. GAAP cash flow from operations was $183 million, up 23% from last year. As of December 31, 2015, we had $102 million in cash on hand, a debt balance of $939 million, and $138 million remaining under our share repurchase authorization.


2016 GUIDANCE

Excluding contribution from the CFS business, we expect to generate revenue from ongoing operations in a range of $990 million to $1.02 billion in 2016, which represents 4-7% organic growth after adjusting for the PAY.ON acquisition and foreign currency fluctuations. Adjusted EBITDA is expected to be in a range of $265 million to $275 million, which excludes any contribution from the CFS business and approximately $15 million in one-time integration related expenses for PAY.ON, the CFS divestiture, data center and facilities consolidation, and bill payment platform rationalization. We expect to generate between $205 million and $215 million of revenue in the first quarter, which excludes up to $23 million in incremental revenue from the CFS business, depending on transaction close date. We expect full year 2016 net new sales bookings to grow in the upper single digit range.

CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS AND OUTLOOK

Management will host a conference call at 8:30 am ET to discuss these results as well as 2016 guidance. Interested persons may access a real-time audio broadcast of the teleconference at http://investor.aciworldwide.com/ or use the following numbers for dial-in participation: US/Canada: (866) 914-7436, international: +1 (817) 385-9117.    Please provide your name, the conference name ACI Worldwide, Inc. and conference code 51057338. There will be a replay available for two weeks on (855) 859-2056 for US/Canada callers and +1 (404) 537- 3406 for international participants.

About ACI Worldwide

ACI Worldwide, the Universal Payments (UP) company, powers electronic payments for more than 5,000 organizations around the world. More than 1,000 of the largest financial institutions and intermediaries as well as 300 of the leading global retailers rely on ACI to execute $14 trillion each day in payments. In addition, thousands of organizations utilize our electronic bill presentment and payment services. Through our comprehensive suite of software and SaaS-based solutions, we deliver real-time, any-to-any payments capabilities and enable the industry’s most complete omni-channel payments experience. To learn more about ACI, please visit www.aciworldwide.com. You can also find us on Twitter @ACI_Worldwide.

© Copyright ACI Worldwide, Inc. 2015.

For more information contact:

John Kraft, Vice President, Investor Relations & Strategic Analysis

ACI Worldwide

239-403-4627

john.kraft@aciworldwide.com


To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries related to the acquisition of Online Resources Corporation and significant transaction-related expenses, as well as other significant non-cash expenses such as depreciation, amortization and non-cash compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include:

 

    Non-GAAP revenue: revenue plus deferred revenue that would have been recognized in the normal course of business by Online Resources if not for GAAP purchase accounting requirements. Non-GAAP revenue should be considered in addition to, rather than as a substitute for, revenue.

 

    Non-GAAP operating income: operating income plus deferred revenue that would have been recognized in the normal course of business by Online Resources if not for GAAP purchase accounting requirements and significant transaction-related expenses. Non-GAAP operating income should be considered in addition to, rather than as a substitute for, operating income.

 

    Adjusted EBITDA: net income plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization and non-cash compensation, as well as deferred revenue that would have been recognized in the normal course of business by Online Resources if not for GAAP purchase accounting requirements and significant transaction-related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, operating income.


ACI is also presenting operating free cash flow, which is defined as net cash provided by operating activities, plus payments associated with acquired opening balance sheet liabilities, net after-tax payments associated with employee-related actions and facility closures, net after-tax payments associated with significant transaction-related expenses, and less capital expenditures. Operating free cash flow is considered a non-GAAP financial measure as defined by SEC Regulation G. We utilize this non-GAAP financial measure, and believe it is useful to investors, as an indicator of cash flow available for debt repayment and other investing activities, such as capital investments and acquisitions. We utilize operating free cash flow as a further indicator of operating performance and for planning investing activities. Operating free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities. A limitation of operating free cash flow is that it does not represent the total increase or decrease in the cash balance for the period. This measure also does not exclude mandatory debt service obligations and, therefore, does not represent the residual cash flow available for discretionary expenditures. We believe that operating free cash flow is useful to investors to provide disclosures of our operating results on the same basis as that used by our management.

ACI also includes backlog estimates, which include all license, maintenance, services, and hosting specified in executed contracts, as well as revenues from assumed contract renewals to the extent that we believe recognition of the related revenue will occur within the corresponding backlog period. We have historically included assumed renewals in backlog estimates based upon automatic renewal provisions in the executed contract and our historic experience with customer renewal rates.

Backlog is considered a non-GAAP financial measure as defined by SEC Regulation G. Our 60-month backlog estimate represents expected revenues from existing customers using the following key assumptions:

 

    Maintenance fees are assumed to exist for the duration of the license term for those contracts in which the committed maintenance term is less than the committed license term.

 

    License, facilities management, and software hosting arrangements are assumed to renew at the end of their committed term at a rate consistent with our historical experiences.

 

    Non-recurring license arrangements are assumed to renew as recurring revenue streams.


    Foreign currency exchange rates are assumed to remain constant over the 60-month backlog period for those contracts stated in currencies other than the U.S. dollar.

 

    Our pricing policies and practices are assumed to remain constant over the 60-month backlog period.

Estimates of future financial results are inherently unreliable. Our backlog estimates require substantial judgment and are based on a number of assumptions as described above. These assumptions may turn out to be inaccurate or wrong, including, but not limited to, reasons outside of management’s control. For example, our customers may attempt to renegotiate or terminate their contracts for a number of reasons, including mergers, changes in their financial condition, or general changes in economic conditions in the customer’s industry or geographic location, or we may experience delays in the development or delivery of products or services specified in customer contracts which may cause the actual renewal rates and amounts to differ from historical experiences. Changes in foreign currency exchange rates may also impact the amount of revenue actually recognized in future periods. Accordingly, there can be no assurance that contracts included in backlog estimates will actually generate the specified revenues or that the actual revenues will be generated within the corresponding 60-month period.

Backlog should be considered in addition to, rather than as a substitute for, reported revenue and deferred revenue.


Forward-Looking Statements

This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements in this press release include, but are not limited to, statements regarding: (i) expectations regarding our confidence that our recent strategic moves position the Company well for long-term growth; (ii) that we look forward to capitalizing on the acceleration in broad market interest for our payment solutions; (iii) expectations regarding revenue, adjusted EBITDA, net new sales bookings in 2016; (iv) expectations regarding organic revenue growth after adjusting for CFS divestiture; (v) expectations regarding revenue for Q1 2016; and (vi) expectations regarding CFS contribution during the first quarter.

All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, the performance of our strategic product, UP BASE24-eps, demand for our products, restrictions and other financial covenants in our credit facility, consolidations and failures in the financial services industry, customer reluctance to switch to a new vendor, the accuracy of management’s backlog estimates, the maturity of certain products, our strategy to migrate customers to our next generation products, ratable or deferred recognition of certain revenue associated with customer migrations and the maturity of certain of our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, volatility and disruption of the capital and credit markets and adverse changes in the global economy, our existing levels of debt, impairment of our goodwill or intangible assets, litigation, future acquisitions, strategic partnerships and investments, risks related to the expected benefits to be achieved in the transaction with PAY.ON, the complexity of our products and services and the risk that they may contain hidden defects or be


subjected to security breaches or viruses, compliance of our products with applicable legislation, governmental regulations and industry standards, our compliance with privacy regulations, the protection of our intellectual property in intellectual property litigation, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, business interruptions or failure of our information technology and communication systems, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, exposure to unknown tax liabilities, and volatility in our stock price. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.


ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands, except share and per share amounts)

 

     December 31,
2015
    December 31,
2014
 

ASSETS

    

Current assets

    

Cash and cash equivalents

   $ 102,239      $ 77,301   

Receivables, net of allowances of $5,045 and $4,806, respectively

     219,116        227,106   

Recoverable income taxes

     12,048        4,781   

Prepaid expenses

     27,461        24,314   

Other current assets

     27,220        40,417   
  

 

 

   

 

 

 

Total current assets

     388,084        373,919   
  

 

 

   

 

 

 

Noncurrent assets

    

Property and equipment, net

     60,630        60,360   

Software, net

     237,941        209,507   

Goodwill

     913,261        781,163   

Intangible assets, net

     256,925        261,436   

Deferred income taxes, net

     90,872        94,536   

Other noncurrent assets, including $33,824 for assets at fair value at December 31, 2014

     42,499        69,779   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 1,990,212      $ 1,850,700   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities

    

Accounts payable

   $ 55,420      $ 50,351   

Employee compensation

     31,213        35,299   

Current portion of long-term debt

     95,293        87,352   

Deferred revenue

     128,559        131,808   

Income taxes payable

     4,734        6,276   

Other current liabilities

     75,225        67,505   
  

 

 

   

 

 

 

Total current liabilities

     390,444        378,591   
  

 

 

   

 

 

 

Noncurrent liabilities

    

Deferred revenue

     42,081        49,224   

Long-term debt

     843,290        804,583   

Deferred income taxes, net

     28,067        13,442   

Other noncurrent liabilities

     31,930        23,455   
  

 

 

   

 

 

 

Total liabilities

     1,335,812        1,269,295   
  

 

 

   

 

 

 

Commitments and contingencies

    

Stockholders’ equity

    

Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued at December 31, 2015 and 2014

     —          —     

Common stock; $0.005 par value; 280,000,000 shares authorized; 140,525,055 and 139,820,388 shares issued at December 31, 2015 and 2014, respectively

     702        698   

Additional paid-in capital

     561,379        551,713   

Retained earnings

     416,851        331,415   

Treasury stock, at cost, 21,491,285 and 24,182,584 shares at December 31, 2015 and 2014, respectively

     (252,956     (282,538

Accumulated other comprehensive loss

     (71,576     (19,883
  

 

 

   

 

 

 

Total stockholders’ equity

     654,400        581,405   
  

 

 

   

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 1,990,212      $ 1,850,700   
  

 

 

   

 

 

 


ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(unaudited and in thousands, except per share amounts)

 

    

FOR THE THREE MONTHS ENDED

DECEMBER 31,

    FOR THE YEARS ENDED
DECEMBER 31,
 
     2015     2014     2015     2014  

Revenues

        

License

   $ 94,230      $ 80,425      $ 251,205      $ 235,157   

Maintenance

     63,000        67,421        241,895        255,993   

Services

     34,371        29,811        106,820        105,584   

Hosting

     117,036        112,567        446,057        419,415   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     308,637        290,224        1,045,977        1,016,149   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

        

Cost of license (1)

     5,810        6,499        23,245        24,565   

Cost of maintenance, services and hosting (1)

     111,285        104,390        449,054        430,191   

Research and development

     33,285        31,554        145,924        144,207   

Selling and marketing

     40,747        29,053        129,407        112,047   

General and administrative

     20,552        19,938        87,419        95,065   

Depreciation and amortization

     22,985        19,519        82,980        71,902   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     234,664        210,953        918,029        877,977   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     73,973        79,271        127,948        138,172   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense)

        

Interest expense

     (10,198     (10,818     (41,372     (39,738

Interest income

     132        143        386        575   

Other, net

     (1,284     1,104        26,411        (240
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense)

     (11,350     (9,571     (14,575     (39,403
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     62,623        69,700        113,373        98,769   

Income tax expense

     18,856        23,334        27,937        31,209   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 43,767      $ 46,366      $ 85,436      $ 67,560   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per common share

        

Basic

   $ 0.37      $ 0.40      $ 0.73      $ 0.59   

Diluted

   $ 0.36      $ 0.40      $ 0.72      $ 0.58   

Weighted average common shares outstanding

        

Basic

     118,739        115,378        117,465        114,798   

Diluted

     120,167        117,033        118,919        116,771   

 

(1) The cost of software license fees excludes charges for depreciation but includes amortization of purchased and developed software for resale. The cost of maintenance, services and hosting fees excludes charges for depreciation.


ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

 

     FOR THE THREE MONTHS
ENDED DECEMBER 31,
    FOR THE YEARS ENDED
DECEMBER 31,
 
     2015     2014     2015     2014  

Cash flows from operating activities:

        

Net income

   $ 43,767      $ 46,366      $ 85,436      $ 67,560   

Adjustments to reconcile net income to net cash flows from operating activities:

        

Depreciation

     5,737        5,406        21,656        20,506   

Amortization

     20,846        18,003        75,775        66,177   

Amortization of deferred debt issuance costs

     1,490        1,670        6,244        5,877   

Deferred income taxes

     15,555        18,074        19,328        8,437   

Stock-based compensation expense

     8,330        (2,697     18,380        11,045   

Excess tax benefit of stock compensation

     (71     (1,391     (4,923     (11,807

Gain on available for sale securities

     —          —          (24,465     —     

Other

     258        (154     2,725        1,852   

Changes in operating assets and liabilities, net of impact of acquisitions:

        

Receivables

     (42,921     (13,633     (11,355     (30,643

Accounts payable

     13,998        3,079        8,557        (3,422

Accrued employee compensation

     (9,139     (3,678     (1,998     (6,360

Current income taxes

     (164     1,623        (8,244     10,968   

Deferred revenue

     300        (194     (4,513     15,738   

Other current and noncurrent assets and liabilities

     6,094        4,569        468        (6,902
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from operating activities

     64,080        77,043        183,071        149,026   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Purchases of property and equipment

     (7,737     (5,872     (27,283     (17,627

Purchases of software and distribution rights

     (9,605     (3,046     (21,622     (17,273

Proceeds from available-for-sale securities

     —          —          35,311        —     

Acquisition of businesses, net of cash acquired

     (179,367     —          (179,367     (204,290

Other

     —          —          (7,000     (1,500
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from investing activities

     (196,709     (8,918     (199,961     (240,690
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Proceeds from issuance of common stock

     806        738        3,104        2,780   

Proceeds from exercises of stock options

     621        5,355        12,175        16,461   

Excess tax benefit of stock compensation

     71        1,391        4,923        11,807   

Repurchases of common stock

     —          —          —          (70,000

Repurchase of restricted stock and performance shares for tax withholdings

     (96     (145     (4,649     (5,120

Proceeds from revolving credit facility

     186,000        20,000        298,000        169,500   

Proceeds from term portion of credit agreement

     —          —          —          150,000   

Repayments of revolving credit facility

     (8,000     (54,500     (164,000     (125,500

Repayment of term portion of credit agreement

     (23,822     (19,853     (87,352     (57,449

Payments on other debt and capital leases

     (853     (432     (12,638     (8,344

Payment for debt issuance costs

     —          (118     —          (4,662

Distribution to noncontrolling interest

     —          —          —          (1,391
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from financing activities

     154,727        (47,564     49,563        78,082   
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate fluctuations on cash

     (716     (3,331     (7,735     (4,176
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     21,382        17,230        24,938        (17,758

Cash and cash equivalents, beginning of period

     80,857        60,071        77,301        95,059   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 102,239      $ 77,301      $ 102,239      $ 77,301   
  

 

 

   

 

 

   

 

 

   

 

 

 


ACI Worldwide, Inc.

Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1)

(unaudited and in thousands, except per share data)

 

     FOR THE THREE MONTHS ENDED December 31,  
     2015
GAAP
     Adj     2015
Non-GAAP
     2014
GAAP
    Adj     2014
Non-GAAP
    $ Diff     % Diff  

Selected Non-GAAP Financial Data

                  

Total revenues (2)

   $ 308,637       $ 147      $ 308,784       $ 290,224      $ 324      $ 290,548      $ 18,236        6

Total expenses (3)

     234,664         (5,774     228,890         210,953        (6,319     204,634        24,256        12

Operating income

     73,973         5,921        79,894         79,271        6,643        85,914        (6,020     -7

Income before income taxes

     62,623         5,921        68,544         69,700        6,643        76,343        (7,799     -10

Income tax expense (benefit) (4)

     18,856         2,072        20,928         23,334        2,325        25,659        (4,731     -18
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 43,767       $ 3,849      $ 47,616       $ 46,366      $ 4,318      $ 50,684      $ (3,068     -6
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Depreciation

     5,737         —          5,737         5,406        —          5,406        331        6

Amortization - acquisition related intangibles

     5,891         —          5,891         6,245        —          6,245        (354     -6

Amortization - acquisition related software

     7,322         —          7,322         6,297        —          6,297        1,025        16

Amortization - other

     7,633         —          7,633         5,461        —          5,461        2,172        40

Stock-based compensation

     8,330         —          8,330         (2,698     —          (2,698     11,028        -409
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 108,886       $ 5,921      $ 114,807       $ 99,982      $ 6,643      $ 106,625      $ 8,182        8
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share information

                  

Weighted average shares outstanding

                  

Basic

     118,739         118,739        118,739         115,378        115,378        115,378       

Diluted

     120,167         120,167        120,167         117,033        117,033        117,033       

Earnings per share

                  

Basic

   $ 0.37       $ 0.03      $ 0.40       $ 0.40      $ 0.04      $ 0.44      $ (0.04     -9

Diluted

   $ 0.36       $ 0.03      $ 0.40       $ 0.40      $ 0.04      $ 0.43      $ (0.03     -7

 

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
(2) Adjustment for ORCC deferred revenue that would have been recognized in the normal course of business but w as not recognized due to GAAP purchase accounting requirements.
(3) Expense for significant transaction related transactions, including, $2.4 million for employee related actions, $1.0 million for technology projects, and $2.4 million for professional and other fees in 2015 and $3.4 million for employee related actions, $1.1 million for data center moves, and $1.8 million for professional and other fees in 2014.
(4) Adjustments tax effected at 35%.

 

     Quarter Ended
December 31,
 
Reconciliation of Operating Free Cash Flow (millions)    2015      2014  

Net cash provided by operating activities

   $ 64.1       $ 77.0   

Payments associated with acquired opening balance sheet liabilities

     —           0.2   

Net after-tax payments associated with employee-related actions (4)

     2.0         1.5   

Net after-tax payments associated with significant transaction related expenses (4)

     1.1         1.8   

Less capital expenditures

     (17.3      (8.9
  

 

 

    

 

 

 

Operating Free Cash Flow

   $ 49.9       $ 71.6   
  

 

 

    

 

 

 


ACI Worldwide, Inc.

Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1)

(unaudited and in thousands, except per share data)

 

     FOR THE TWELVE MONTHS ENDED December 31,  
     2015
GAAP
     Adj     2015
Non-GAAP
     2014
GAAP
     Adj     2014
Non-GAAP
     $ Diff     % Diff  

Selected Non-GAAP Financial Data

                    

Total revenues (2)

   $ 1,045,977       $ 743      $ 1,046,720       $ 1,016,149       $ 1,777      $ 1,017,926       $ 28,794        3

Total expenses (3)

     918,029         (15,041     902,988         877,977         (22,892     855,085         47,903        6

Operating income

     127,948         15,784        143,732         138,172         24,669        162,841         (19,109     -12

Income before income taxes

     113,373         15,784        129,157         98,769         24,669        123,438         5,719        5

Income tax expense (benefit) (4)

     27,937         5,524        33,461         31,209         8,634        39,843         (6,382     -16
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Net income

   $ 85,436       $ 10,260      $ 95,696       $ 67,560       $ 16,035      $ 83,595       $ 12,101        14
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Depreciation

     21,656         —          21,656         20,506         —          20,506         1,150        6

Amortization - acquisition related intangibles

     22,959         —          22,959         24,676         —          24,676         (1,717     -7

Amortization - acquisition related software

     25,787         —          25,787         22,285         —          22,285         3,502        16

Amortization - other

     27,029         —          27,029         19,216         —          19,216         7,813        41

Stock-based compensation

     18,380         —          18,380         11,045         —          11,045         7,335        66
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted EBITDA

   $ 243,759       $ 15,784      $ 259,543       $ 235,900       $ 24,669      $ 260,569       $ (1,026     0
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Earnings per share information

                    

Weighted average shares outstanding

                    

Basic

     117,465         117,465        117,465         114,798         114,798        114,798        

Diluted

     118,919         118,919        118,919         116,771         116,771        116,771        

Earnings per share

                    

Basic

   $ 0.73       $ 0.09      $ 0.81       $ 0.59       $ 0.14      $ 0.73       $ 0.09        12

Diluted

   $ 0.72       $ 0.09      $ 0.80       $ 0.58       $ 0.14      $ 0.72       $ 0.09        12

 

(1) This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
(2) Adjustment for ORCC and S1 deferred revenue that would have been recognized in the normal course of business but w as not recognized due to GAAP purchase accounting requirements.
(3) Expense for significant transaction related transactions, including, $6.3 million for employee related actions, $5.6 million for transition and technology costs, and $3.1 million for professional and other fees in 2015, and $10.4 million for employee related actions, $5.3 million for data center moves, and $7.2 million for professional and other fees in 2014.
(4) Adjustments tax effected at 35%.

 

     Year Ended December 31,  
Reconciliation of Operating Free Cash Flow (millions)    2015      2014  

Net cash provided (used) by operating activities

   $ 183.1       $ 149.0   

Payments associated with acquired opening balance sheet liabilities

     0.1         4.8   

Net after-tax payments associated with employee-related actions (4)

     5.0         6.3   

Net after-tax payments associated with lease terminations (4)

     0.3         1.0   

Net after-tax payments associated with significant transaction related expenses (4)

     3.3         8.1   

Less capital expenditures

     (48.9      (34.9
  

 

 

    

 

 

 

Operating Free Cash Flow

   $ 142.9       $ 134.3