Acxiom Announces First Quarter Results

LITTLE ROCK, Ark.--(BUSINESS WIRE)--

Acxiom® ACXM, an enterprise data, analytics and software-as-a-service company, today announced financial results for its first quarter ended June 30, 2015.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20150805006422/en/

Financial Highlights

• Revenue: Total revenue was $197 million, up approximately 5% compared to the first quarter of last year.
• Operating Income (Loss): GAAP operating loss from continuing operations was $3 million compared to a loss of $13 million in the prior year. Non-GAAP operating income from continuing operations improved 71% to approximately $15 million compared to $9 million a year ago.
• Earnings (Loss) per Share: GAAP loss per share from continuing operations was $0.07 compared to a net loss of $0.14 in the prior year. Non-GAAP diluted earnings per share from continuing operations were $0.09, up 80% from $0.05 a year ago.
• Operating Cash Flow: Operating cash flow from continuing operations improved to $12 million compared to negative $15 million a year ago.
• Free Cash Flow to Equity: Free cash flow to equity was negative $12 million compared to negative $43 million in the prior year.

Segment Results

During the first quarter of fiscal 2016, Acxiom realigned its organizational structure to better reflect its business strategy. The Company will report its financial performance based on the following segments: Marketing Services and Audience Solutions and Connectivity. Prior period amounts have been adjusted to conform to the way the Company internally managed and monitored segment performance during the first quarter of fiscal year 2016.

Marketing Services and Audience Solutions

• Revenue was $176 million, down 3% compared to the first quarter of last year primarily due to declines in International. US revenue of $159 million was roughly flat year-over-year.
• Non-GAAP gross margin decreased from 43% to 41%.
• Non-GAAP operating income was $40 million compared to $47 million in the prior year. The decline was primarily driven by lower revenue.

Connectivity

• Revenue was $21 million, up approximately 376% compared to the first quarter of last year, driven by the addition of LiveRamp™ and continued onboarding momentum.
• Non-GAAP gross margin improved from negative 83% to positive 60%.
• Non-GAAP operating loss improved by approximately $14 million to roughly breakeven driven by growth in subscriptions and royalties.

Non-GAAP results exclude items including non-cash compensation, purchased intangible asset amortization, and separation and transformation costs. A reconciliation between GAAP and non-GAAP results is attached to this release.

"The first quarter was a solid start to fiscal 2016," said Acxiom CEO Scott Howe. "Our results this quarter demonstrate the continued strength of Connectivity. A growing list of customers and synergies from our combination with LiveRamp contributed to dramatically expanding revenue, gross margin and bottom-line performance."

"We are also pleased to announce that the sale of our IT Infrastructure Management business was completed on July 31, 2015, leaving Acxiom with a portfolio of businesses that share a single vision and mission," continued Howe.

Business Highlights

• LiveRamp added 30 new customers during the quarter and added 10 new partner integrations. Marketers can now onboard and distribute their data to a growing network of over 200 marketing platforms and data providers.
• Acxiom relaunched its email and cross-channel marketing business, Acxiom Impact™, an advanced marketing offering specifically designed to meet the unique needs of sophisticated enterprise marketers.
• The Company appointed Jeremy Allen as President of Marketing Services. Allen's appointment completes Acxiom's new divisional structure, which includes Travis May as President of Connectivity and Rick Erwin as President of Audience Solutions. Acxiom's CFO, Warren Jenson, is heading the Company's international operations.
• Acxiom repurchased approximately 832,000 shares for $15 million during the quarter. Since inception of the share repurchase program in August 2011, the Company has repurchased 13.7 million shares for $217 million.
• On July 31, 2015, Acxiom completed the sale of its IT Infrastructure Management business to Charlesbank Capital Partners and co-investor M/C Partners.

Financial Outlook

The Company's guidance excludes the impact of unusual items, non-cash compensation and acquired intangible asset amortization. Acxiom reconfirms the following estimates for fiscal 2016:

• Revenue from continuing operations in the range of $815 million to $840 million.
• Earnings per diluted share from continuing operations in the range of $0.45 to $0.50.

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 investors.acxiom.com. A slide presentation will be referenced during the call and can be accessed here.

About Acxiom

Acxiom is an enterprise data, analytics and software-as-a-service company that uniquely fuses trust, experience and scale to fuel data-driven results. For over 40 years, Acxiom has been an innovator in harnessing the most important sources and uses of data to strengthen connections between people, businesses and their partners. Utilizing a channel and media neutral approach, we leverage cutting-edge, data-oriented products and services to maximize customer value. Every week, Acxiom powers more than a trillion transactions that enable better living for people and better results for our 7,000+ global clients. For more information about Acxiom, visit Acxiom.com.

Forward-Looking Statements

This release and today's conference call 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 divisions may not be realized within the expected timeframe; the possibility that certain contracts may not generate the anticipated revenue or profitability or may not be closed within the anticipated time frames; the possibility that significant customers may experience extreme, severe economic difficulty or otherwise reduce or cancel the amount of business they do with us; the possibility that we will not successfully complete customer contract requirements on time or meet the service levels specified in the contracts, which may result in contract penalties or lost revenue; the possibility that data suppliers might withdraw data from us, leading to our inability to provide certain products and services to our clients; the possibility that we may not be able to attract, retain or motivate qualified technical, sales and leadership associates, or that we may lose key associates; the possibility that we may not be able to adequately adapt to rapidly changing computing environments, technologies and marketing practices; the possibility that we will not be able to continue to receive credit upon satisfactory terms and conditions; the possibility that negative changes in economic conditions in general or other conditions might lead to a reduction in demand for our products and services; the possibility that there will be changes in consumer or business information industries and markets that negatively impact the company; the possibility that the historical seasonality of our business may change; the possibility that we will not be able to achieve anticipated cost reductions and avoid unanticipated costs; the possibility that the fair value of certain of our assets may not be equal to the carrying value of those assets now or in future time periods; the possibility that unusual charges may be incurred; the possibility that changes in accounting pronouncements may occur and may impact these forward-looking statements; the possibility that we may encounter difficulties when entering new markets or industries; the possibility that we could experience loss of data center capacity or interruption of telecommunication links; the possibility that new laws may be enacted which limit our ability to provide services to our clients and/or which limit the use of data; and other risks and uncertainties, including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including our current reports on Form 8-K, quarterly reports on Form 10-Q and annual reports on Form 10-K, particularly the discussion under the caption "Item 1A, RISK FACTORS" in our Annual Report on Form 10-K for the year ended March 31, 2015, which was filed with the Securities and Exchange Commission on May 27, 2015.

With respect to the provision of products or services outside our primary base of operations in the United States, all of the above factors apply, along with the difficulty of doing business in numerous sovereign jurisdictions due to differences in scale, competition, culture, laws and regulations.

We undertake no obligation to update the information contained in this press release or any other forward-looking statement.

Acxiom is a registered trademark of Acxiom Corporation.

To automatically receive Acxiom Corporation financial news by email, please visit www.acxiom.com and subscribe to email alerts.

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except loss per share)
			For the Three Months Ended
			June 30,
											$				%
			2015				2014				Variance				Variance
Revenues			196,895				186,683				10,212				5.5	%
Cost of revenue			117,709				113,090				4,619				4.1	%
Gross profit			79,186				73,593				5,593				7.6	%
% Gross margin			40.2	%			39.4	%
Operating expenses:
Research and development			20,011				16,350				3,661				22.4	%
Sales and marketing			29,494				26,500				2,994				11.3	%
General and administrative			31,743				36,701				(4,958	)			(13.5	%)
Gains, losses and other items, net			807				7,128				(6,321	)			(88.7	%)
Total operating expenses			82,055				86,679				(4,624	)			(5.3	%)
Loss from operations			(2,869	)			(13,086	)			10,217				78.1	%
% Margin			-1.5	%			-7.0	%
Other income (expense):
Interest expense			(1,885	)			(1,948	)			63				3.2	%
Other, net			304				(106	)			410				386.8	%
Total other expense			(1,581	)			(2,054	)			473				23.0	%
Loss from continuing operations before income taxes			(4,450	)			(15,140	)			10,690				70.6	%
Income taxes			732				(4,399	)			5,131				116.6	%
Net loss from continuing operations			(5,182	)			(10,741	)			5,559				51.8	%
Earnings from discontinued operations, net of tax			4,143				3,137				1,006				32.1	%
Net loss			(1,039	)			(7,604	)			6,565				86.3	%
Basic earnings (loss) per share:
Net loss from continuing operations			(0.07	)			(0.14	)			0.07				52.4	%
Net earnings from discontinued operations			0.05				0.04				0.01				30.2	%
Net loss			(0.01	)			(0.10	)			0.09				86.5	%
Diluted earnings (loss) per share:
Net loss from continuing operations			(0.07	)			(0.14	)			0.07				52.4	%
Net earnings from discontinued operations			0.05				0.04				0.01				32.8	%
Net loss			(0.01	)			(0.10	)			0.09				86.8	%

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS
(Unaudited)
(Dollars in thousands, except earnings (loss) per share)
			For the Three Months Ended
			June 30,
			2015				2014
Loss from continuing operations before income taxes			(4,450	)			(15,140	)
Income taxes			732				(4,399	)
Net loss from continuing operations			(5,182	)			(10,741	)
Earnings from discontinued operations, net of tax			4,143				3,137
Net loss			(1,039	)			(7,604	)
Loss per share:
Basic			(0.01	)			(0.10	)
Diluted			(0.01	)			(0.10	)
Excluded items:
Purchased intangible asset amortization (cost of revenue)			3,754				63
Non-cash stock compensation (cost of revenue and operating expenses)			8,123				3,925
Restructuring charges and other adjustments (gains, losses, and other)			807				7,128
Separation and transformation costs (general and administrative)			3,414				10,538
Accelerated amortization (cost of revenue)			1,442				-
Total excluded items, continuing operations			17,540				21,654
Earnings from continuing operations before income taxes and excluding items			13,090				6,514
Income taxes			5,632				2,517
Non-GAAP net earnings			7,458				3,997
Non-GAAP earnings per share:
Basic			0.10				0.05
Diluted			0.09				0.05
Basic weighted average shares			77,918				76,833
Diluted weighted average shares			79,352				78,341

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS (LOSS) PER SHARE
(Unaudited)
(In thousands, except earnings (loss) per share)
			For the Three Months Ended
			June 30,				June 30,
			2015				2014
Basic loss per share from continuing operations:
Numerator - net loss			(5,182	)			(10,741	)
Denominator - weighted-average shares outstanding			77,918				76,833
Basic loss per share			(0.07	)			(0.14	)
Diluted loss per share from continuing operations:
Numerator - net loss			(5,182	)			(10,741	)
Denominator - weighted-average shares outstanding			77,918				76,833
Diluted loss per share			(0.07	)			(0.14	)
Basic earnings per share from discontinued operations:
Numerator - net earnings			4,143				3,137
Denominator - weighted-average shares outstanding			77,918				76,833
Basic earnings per share			0.05				0.04
Diluted earnings per share from discontinued operations:
Numerator - net earnings			4,143				3,137
Denominator - weighted-average shares outstanding			77,918				76,833
Dilutive effect of common stock options, warrants and restricted stock			-				-
			77,918				76,833
Diluted earnings per share			0.05				0.04
Diluted loss per share:
Numerator - net loss			(1,039	)			(7,604	)
Denominator - weighted-average shares outstanding			77,918				76,833
Dilutive effect of common stock options, warrants, and restricted stock			-				-
			77,918				76,833
Diluted loss per share			(0.01	)			(0.10	)

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT-GAAP
(Unaudited)
(Dollars in thousands)
			For the Three Months Ended
			June 30, 2015																June 30, 2014
			Marketing Services																Marketing Services
			& Audience Solutions				Connectivity				Corporate				Total				& Audience Solutions				Connectivity				Corporate				Total
Revenues			176,276				20,619				-				196,895				182,349				4,334				-				186,683
Gross profit (loss)			72,019				8,609				(1,442	)			79,186				77,224				(3,631	)			-				73,593
% Gross margin			40.9	%			41.8	%			n/a				40.2	%			42.3	%			-83.8	%			n/a				39.4	%
Operating income (loss)			38,287				(8,025	)			(33,131	)			(2,869	)			46,221				(14,261	)			(45,046	)			(13,086	)
% margin			21.7	%			-38.9	%			n/a				-1.5	%			25.3	%			-329.0	%			n/a				-7.0	%

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT-NON-GAAP
(Unaudited)
(Dollars in thousands)
			For the Three Months Ended
			June 30, 2015																June 30, 2014
			Marketing Services																Marketing Services
			& Audience Solutions				Connectivity				Corporate				Total				& Audience Solutions				Connectivity				Corporate				Total
Revenues			176,276				20,619				-				196,895				182,349				4,334				-				186,683
Gross profit (loss)			72,473				12,338				-				84,811				77,559				(3,599	)			-				73,960
% Gross margin			41.1	%			59.8	%			n/a				43.1	%			42.5	%			-83.0	%			n/a				39.6	%
Operating income (loss)			40,253				(173	)			(25,409	)			14,671				47,270				(13,852	)			(24,850	)			8,568
% margin			22.8	%			-0.8	%			n/a				7.5	%			25.9	%			-319.6	%			n/a				4.6	%

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP SEGMENT RESULTS
(Unaudited)
(Dollars in thousands)
			For the Three Months Ended
			June 30, 2015															June 30, 2014
			Marketing Services															Marketing Services
			& Audience Solutions			Connectivity				Corporate				Total				& Audience Solutions			Connectivity				Corporate				Total
Gross profit (loss)			72,019			8,609				(1,442	)			79,186				77,224			(3,631	)			-				73,593
Purchased intangible asset amortization			25			3,729				-				3,754				31			32				-				63
Non-cash stock compensation			429			-				-				429				304			-				-				304
Accelerated amortization			-			-				1,442				1,442				-			-				-				-
Gross profit (loss) before excluded items			72,473			12,338				-				84,811				77,559			(3,599	)			-				73,960
Operating income (loss)			38,287			(8,025	)			(33,131	)			(2,869	)			46,221			(14,261	)			(45,046	)			(13,086	)
Purchased intangible asset amortization			25			3,729				-				3,754				31			32				-				63
Non-cash stock compensation			1,914			4,123				2,086				8,123				1,007			377				2,541				3,925
Restructuring charges and other adjustments			27			-				780				807				11			-				7,117				7,128
Separation and transformation costs			-			-				3,414				3,414				-			-				10,538				10,538
Accelerated amortization			-			-				1,442				1,442				-			-				-				-
Operating income (loss) before excluded items			40,253			(173	)			(25,409	)			14,671				47,270			(13,852	)			(24,850	)			8,568

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
			June 30,				March 31,				$				%
			2015				2015				Variance				Variance
Assets
Current assets:
Cash and cash equivalents			123,192				141,010				(17,818	)			(12.6	%)
Trade accounts receivable, net			135,626				126,896				8,730				6.9	%
Deferred income taxes			23,111				25,610				(2,499	)			(9.8	%)
Refundable income taxes			21				5,239				(5,218	)			(99.6	%)
Restricted cash held in escrow			31,000				31,000				0				0.0	%
Other current assets			37,187				34,975				2,212				6.3	%
Assets of discontinued operations			163,768				172,284				(8,516	)			(4.9	%)
Total current assets			513,905				537,014				(23,109	)			(4.3	%)
Property and equipment			505,736				505,721				15				0.0	%
Less - accumulated depreciation and amortization			325,995				329,467				(3,472	)			(1.1	%)
Property and equipment, net			179,741				176,254				3,487				2.0	%
Software, net of accumulated amortization			63,242				68,962				(5,720	)			(8.3	%)
Goodwill			497,456				497,362				94				0.0	%
Purchased software licenses, net of accumulated amortization			9,492				9,551				(59	)			(0.6	%)
Other assets, net			31,195				33,281				(2,086	)			(6.3	%)
			1,295,031				1,322,424				(27,393	)			(2.1	%)
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt			87,186				32,232				54,954				170.5	%
Trade accounts payable			39,606				30,094				9,512				31.6	%
Accrued payroll and related expenses			26,013				36,659				(10,646	)			(29.0	%)
Other accrued expenses			55,025				62,754				(7,729	)			(12.3	%)
Acquisition escrow payable			31,000				31,000				0				0.0	%
Deferred revenue			33,554				33,620				(66	)			(0.2	%)
Income taxes			-				-				0				-
Liabilities of discontinued operations			50,764				57,433				(6,669	)			(11.6	%)
Total current liabilities			323,148				283,792				39,356				13.9	%
Long-term debt			184,802				247,855				(63,053	)			(25.4	%)
Deferred income taxes			76,654				80,675				(4,021	)			(5.0	%)
Other liabilities			12,125				6,845				5,280				77.1	%
Stockholders' equity:
Common stock			12,847				12,794				53				0.4	%
Additional paid-in capital			1,045,897				1,034,526				11,371				1.1	%
Retained earnings			590,759				591,798				(1,039	)			(0.2	%)
Accumulated other comprehensive income			10,142				9,413				729				7.7	%
Treasury stock, at cost			(961,343	)			(945,274	)			(16,069	)			(1.7	%)
Total stockholders' equity			698,302				703,257				(4,955	)			(0.7	%)
			1,295,031				1,322,424				(27,393	)			(2.1	%)

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
			For the Three Months Ended
			June 30,
			2015				2014
Cash flows from operating activities:
Net loss			(1,039	)			(7,604	)
Earnings from discontinued operations, net of tax			(4,143	)			(3,137	)
Non-cash operating activities:
Depreciation and amortization			21,775				15,920
Loss (gain) on disposal or impairment of assets			241				(254	)
Deferred income taxes			(1,522	)			(1,843	)
Non-cash stock compensation expense			8,123				3,925
Changes in operating assets and liabilities:
Accounts receivable			(8,037	)			11,399
Other assets			809				3,590
Deferred costs			(425	)			(211	)
Accounts payable and other liabilities			(3,530	)			(29,057	)
Deferred revenue			(255	)			(8,184	)
Net cash provided by (used in) operating activities			11,997				(15,456	)
Cash flows from investing activities:
Capitalized software			(2,797	)			(4,969	)
Capital expenditures			(12,876	)			(16,778	)
Data acquisition costs			(430	)			(635	)
Net cash used in investing activities			(16,103	)			(22,382	)
Cash flows from financing activities:
Payments of debt			(8,099	)			(4,917	)
Sale of common stock, net of stock acquired for withholding taxes			2,069				(674	)
Income tax impact of stock options, warrants and restricted stock			(77	)			-
Acquisition of treasury stock			(14,951	)			-
Net cash used in financing activities			(21,058	)			(5,591	)
Cash flows from discontinued operations:
From operating activities			11,653				17,310
From investing activities			(4,484	)			704
From financing activities			(153	)			(585	)
Net cash provided by discontinued operations			7,016				17,429
Effect of exchange rate changes on cash			330				332
Net change in cash and cash equivalents			(17,818	)			(25,668	)
Cash and cash equivalents at beginning of period			141,010				418,586
Cash and cash equivalents at end of period			123,192				392,918
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest			2,185				2,875
Income taxes			(1,044	)			297
Payments on capital leases and installment payment arrangements			216				1,235
Other debt payments, excluding line of credit			8,036				4,267

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
AND RECONCILIATION TO OPERATING CASH FLOW
(Unaudited)
(Dollars in thousands)
			06/30/14				09/30/14				12/31/14				03/31/15				FY2015				06/30/15
Net cash provided by operating activities - continuing operations			(15,456	)			14,325				32,890				29,372				61,131				11,997
Less:
Payments for investments			-				-				-				-				-				-
Capitalized software			(4,969	)			(5,608	)			(4,408	)			(3,602	)			(18,587	)			(2,797	)
Capital expenditures			(16,778	)			(15,362	)			(10,212	)			(14,600	)			(56,952	)			(12,876	)
Data acquisition costs			(635	)			(468	)			(394	)			(374	)			(1,871	)			(430	)
Payments on capital leases and installment payment arrangements			(650	)			(567	)			(471	)			(315	)			(2,003	)			(63	)
Other required debt payments			(4,267	)			(4,272	)			(8,027	)			(8,032	)			(24,598	)			(8,036	)
Total			(42,755	)			(11,952	)			9,378				2,449				(42,880	)			(12,205	)

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS-GAAP
(Unaudited)
(Dollars in thousands, except earnings per share)
																															Q1 FY16 to Q1 FY15
			FY2014				06/30/14				09/30/14				12/31/14				03/31/15				FY2015				06/30/15				%				$
Revenues			805,153				186,683				204,248				208,246				205,734				804,911				196,895				5.5	%			10,212
Cost of revenue			472,492				113,090				122,088				122,567				123,055				480,800				117,709				4.1	%			4,619
Gross profit			332,661				73,593				82,160				85,679				82,679				324,111				79,186				7.6	%			5,593
% Gross margin			41.3	%			39.4	%			40.2	%			41.1	%			40.2	%			40.3	%			40.2	%
Operating expenses
Research and development			65,269				16,350				20,555				19,696				19,737				76,338				20,011				22.4	%			3,661
Sales and marketing			115,077				26,500				28,842				30,997				32,319				118,658				29,494				11.3	%			2,994
General and administrative			108,637				36,701				38,373				33,895				30,230				139,199				31,743				-13.5	%			(4,958	)
Gains, losses and other items, net			42,121				7,128				833				3,381				11,258				22,600				807				-88.7	%			(6,321	)
Total operating expenses			331,104				86,679				88,603				87,969				93,544				356,795				82,055				-5.3	%			(4,624	)
Income (loss) from operations			1,557				(13,086	)			(6,443	)			(2,290	)			(10,865	)			(32,684	)			(2,869	)			78.1	%			10,217
% Margin			0.2	%			-7.0	%			-3.2	%			-1.1	%			-5.3	%			-4.1	%			-1.5	%
Other income (expense)
Interest expense			(8,671	)			(1,948	)			(1,821	)			(2,005	)			(1,898	)			(7,672	)			(1,885	)			3.2	%			63
Other, net			1,814				(106	)			(163	)			35				(757	)			(991	)			304				386.8	%			410
Total other expense			(6,857	)			(2,054	)			(1,984	)			(1,970	)			(2,655	)			(8,663	)			(1,581	)			23.0	%			473
Loss from continuing operations before income taxes			(5,300	)			(15,140	)			(8,427	)			(4,260	)			(13,520	)			(41,347	)			(4,450	)			70.6	%			10,690
Income taxes			12,040				(4,399	)			(1,326	)			(4,597	)			(4,483	)			(14,805	)			732				116.6	%			5,131
Net earnings (loss) from continuing operations			(17,340	)			(10,741	)			(7,101	)			337				(9,037	)			(26,542	)			(5,182	)			51.8	%			5,559
Earnings from discontinued operations, net of tax			26,143				3,137				5,557				3,819				2,998				15,511				4,143				32.1	%			1,006
Net earnings (loss)			8,803				(7,604	)			(1,544	)			4,156				(6,039	)			(11,031	)			(1,039	)			86.3	%			6,565
NCI			(60	)			0				0				0				0				0				0				-				0
Net earnings (loss) attributable to Acxiom			8,863				(7,604	)			(1,544	)			4,156				(6,039	)			(11,031	)			(1,039	)			86.3	%			6,565
Diluted earnings (loss) per share			0.12				(0.10	)			(0.02	)			0.05				(0.08	)			(0.14	)			(0.01	)			86.5	%			0.09

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS-NON GAAP
(Unaudited)
(Dollars in thousands, except earnings per share)
																															Q1 FY16 to Q1 FY15
			FY2014				06/30/14				09/30/14				12/31/14				03/31/15				FY2015				06/30/15				%				$
Revenues			805,153				186,683				204,248				208,246				205,734				804,911				196,895				5.5	%			10,212
Cost of revenue			471,015				112,723				118,012				118,412				114,586				463,733				112,084				-0.6	%			(639	)
Gross profit			334,138				73,960				86,236				89,834				91,148				341,178				84,811				14.7	%			10,851
% Gross margin			41.5	%			39.6	%			42.2	%			43.1	%			44.3	%			42.4	%			43.1	%
Operating expenses
Research and development			63,701				15,911				17,286				16,283				16,613				66,093				16,384				3.0	%			473
Sales and marketing			112,080				25,854				27,040				28,941				30,150				111,985				28,170				9.0	%			2,316
General and administrative			94,807				23,627				27,702				23,869				22,656				97,854				25,586				8.3	%			1,959
Gains, losses and other items, net			-				-				-				-				-				-				-				-				-
Total operating expenses			270,588				65,392				72,028				69,093				69,419				275,932				70,140				7.3	%			4,748
Income from operations			63,550				8,568				14,208				20,741				21,729				65,246				14,671				71.2	%			6,103
% Margin			7.9	%			4.6	%			7.0	%			10.0	%			10.6	%			8.1	%			7.5	%
Other income (expense)
Interest expense			(8,671	)			(1,948	)			(1,821	)			(2,005	)			(1,898	)			(7,672	)			(1,885	)			3.2	%			63
Other, net			(758	)			(106	)			(163	)			35				(757	)			(991	)			304				386.8	%			410
Total other expense			(9,429	)			(2,054	)			(1,984	)			(1,970	)			(2,655	)			(8,663	)			(1,581	)			23.0	%			473
Earnings from continuing operations before income taxes			54,121				6,514				12,224				18,771				19,074				56,583				13,090				101.0	%			6,576
Income taxes			17,200				2,517				4,757				5,755				5,324				18,353				5,632				123.8	%			3,115
Net earnings from continuing operations			36,921				3,997				7,467				13,016				13,750				38,230				7,458				86.6	%			3,461
Earnings from discontinued operations, net of tax			-				-				-				-				-				-				-				-				-
Net earnings			36,921				3,997				7,467				13,016				13,750				38,230				7,458				86.6	%			3,461
NCI			(60	)			-				-				-				-				-				-				-				-
Net earnings attributable to Acxiom			36,981				3,997				7,467				13,016				13,750				38,230				7,458				86.6	%			3,461
Diluted earnings per share			0.48				0.05				0.10				0.17				0.17				0.49				0.09				84.2	%			0.04

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS
(Unaudited)
(Dollars in thousands, except earnings per share)
			FY2014				06/30/14				09/30/14				12/31/14				03/31/15				FY2015				06/30/15
Loss from continuing operations before income taxes			(5,300	)			(15,140	)			(8,427	)			(4,260	)			(13,520	)			(41,347	)			(4,450	)
Income taxes			12,040				(4,399	)			(1,446	)			(4,717	)			(4,603	)			(15,165	)			732
Net earnings (loss) from continuing operations			(17,340	)			(10,741	)			(6,981	)			457				(8,917	)			(26,182	)			(5,182	)
Earnings (loss) from discontinued operations, net of tax			26,143				3,137				5,557				3,819				2,998				15,511				4,143
Net earnings (loss)			8,803				(7,604	)			(1,424	)			4,276				(5,919	)			(10,671	)			(1,039	)
Earnings (loss) per share:
Basic			0.12				(0.10	)			(0.02	)			0.06				(0.08	)			(0.14	)			(0.01	)
Diluted			0.11				(0.10	)			(0.02	)			0.05				(0.08	)			(0.14	)			(0.01	)
Excluded items:
Purchased intangible asset amortization (cost of revenue)			252				63				3,802				3,783				3,781				11,429				3,754
Non-cash stock compensation (cost of revenue and operating expenses)			13,206				3,925				7,725				8,450				8,216				28,316				8,123
Restructuring charges and other adjustments (gains, losses, and other)			42,121				7,128				833				3,381				11,137				22,479				807
Separation and transformation costs (general and administrative)			6,409				10,538				8,291				7,417				5,144				31,390				3,414
Accelerated amortization (cost of revenue)			-				-				-				-				4,316				4,316				1,442
Other income			(2,567	)			-				-				-				-				-				-
Total excluded items, continuing operations			59,421				21,654				20,651				23,031				32,594				97,930				17,540
Earnings from continuing operations before income taxes and excluding items			54,121				6,514				12,224				18,771				19,074				56,583				13,090
Income taxes			17,200				2,517				4,757				5,755				5,324				18,353				5,632
Non-GAAP earnings from continuing operations			36,921				3,997				7,467				13,016				13,750				38,230				7,458
Less: noncontrolling interest			(60	)			-				-				-				-				-				-
Non-GAAP net earnings			36,981				3,997				7,467				13,016				13,750				38,230				7,458
Non-GAAP earnings per share:
Basic			0.50				0.05				0.10				0.17				0.18				0.50				0.10
Diluted			0.48				0.05				0.10				0.17				0.17				0.49				0.09
Basic weighted average shares			74,690				76,833				77,123				77,039				77,427				77,106				77,918
Diluted weighted average shares			76,954				78,341				78,307				78,302				79,027				78,494				79,352

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT-GAAP
(Unaudited)
(Dollars in thousands)
																															Q1 FY16 to Q1 FY15
			FY2014				06/30/14				09/30/14				12/31/14				03/31/15				FY2015				06/30/15				%				$
Revenues:
Marketing services and audience solutions			790,394				182,349				190,776				190,336				186,478				749,939				176,276				-3.3	%			(6,073	)
Connectivity			14,759				4,334				13,472				17,910				19,256				54,972				20,619				375.7	%			16,285
Total revenues			805,153				186,683				204,248				208,246				205,734				804,911				196,895				5.5	%			10,212
Gross profit from continuing operations:
Marketing services and audience solutions			344,034				77,224				83,409				83,715				82,594				326,942				72,019				-6.7	%			(5,205	)
Connectivity			(11,373	)			(3,631	)			(1,249	)			1,964				4,400				1,484				8,609				337.1	%			12,240
Corporate			-				-				-				-				(4,315	)			(4,315	)			(1,442	)			n/a				(1,442	)
Total gross profit from continuing operations			332,661				73,593				82,160				85,679				82,679				324,111				79,186				7.6	%			5,593
Gross margin:
Marketing services and audience solutions			43.5	%			42.3	%			43.7	%			44.0	%			44.3	%			43.6	%			40.9	%
Connectivity			-77.1	%			-83.8	%			-9.3	%			11.0	%			22.9	%			2.7	%			41.8	%
Total			41.3	%			39.4	%			40.2	%			41.1	%			40.2	%			40.3	%			40.2	%
Income (loss) from continuing operations:
Marketing services and audience solutions			208,403				46,221				52,302				51,268				48,065				197,856				38,287				-17.2	%			(7,934	)
Connectivity			(48,839	)			(14,261	)			(20,277	)			(16,876	)			(17,444	)			(68,858	)			(8,025	)			43.7	%			6,236
Corporate			(158,007	)			(45,046	)			(38,468	)			(36,682	)			(41,486	)			(161,682	)			(33,131	)			26.5	%			11,915
Total income (loss) from continuing operations			1,557				(13,086	)			(6,443	)			(2,290	)			(10,865	)			(32,684	)			(2,869	)			78.1	%			10,217
Margin:
Marketing services and audience solutions			26.4	%			25.3	%			27.4	%			26.9	%			25.8	%			26.4	%			21.7	%
Connectivity			-330.9	%			-329.0	%			-150.5	%			-94.2	%			-90.6	%			-125.3	%			-38.9	%
Total			0.2	%			-7.0	%			-3.2	%			-1.1	%			-5.3	%			-4.1	%			-1.5	%

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT - NON GAAP
(Unaudited)
(Dollars in thousands)
																															Q1 FY16 to Q1 FY15
			FY2014				06/30/14				09/30/14				12/31/14				03/31/15				FY2015				06/30/15				%				$
Revenues:
Marketing services and audience solutions			790,394				182,349				190,776				190,336				186,478				749,939				176,276				-3.3	%			(6,073	)
Connectivity			14,759				4,334				13,472				17,910				19,256				54,972				20,619				375.7	%			16,285
Total revenues			805,153				186,683				204,248				208,246				205,734				804,911				196,895				5.5	%			10,212
Gross profit from continuing operations:
Marketing services and audience solutions			345,356				77,559				85,029				82,863				83,012				328,463				72,473				-6.6	%			(5,086	)
Connectivity			(11,218	)			(3,599	)			1,207				6,971				8,136				12,715				12,338				442.8	%			15,937
Corporate			-				-				-				-				-				-				-				n/a				-
Total income from continuing operations			334,138				73,960				86,236				89,834				91,148				341,178				84,811				14.7	%			10,851
Gross margin:
Marketing services and audience solutions			43.7	%			42.5	%			44.6	%			43.5	%			44.5	%			43.8	%			41.1	%
Connectivity			-76.0	%			-83.0	%			9.0	%			38.9	%			42.3	%			23.1	%			59.8	%
Total			41.5	%			39.6	%			42.2	%			43.1	%			44.3	%			42.4	%			43.1	%
Income from continuing operations:
Marketing services and audience solutions			214,242				47,269				54,902				51,280				50,803				204,254				40,253				-14.8	%			(7,016	)
Connectivity			(47,555	)			(13,852	)			(13,053	)			(6,205	)			(5,809	)			(38,919	)			(173	)			98.8	%			13,679
Corporate			(103,137	)			(24,849	)			(27,641	)			(24,334	)			(23,265	)			(100,089	)			(25,409	)			-2.3	%			(560	)
Total income from continuing operations			63,550				8,568				14,208				20,741				21,729				65,246				14,671				71.2	%			6,103
Margin:
Marketing services and audience solutions			27.1	%			25.9	%			28.8	%			26.9	%			27.2	%			27.2	%			22.8	%
Connectivity			-322.2	%			-319.6	%			-96.9	%			-34.6	%			-30.2	%			-70.8	%			-0.8	%
Total			7.9	%			4.6	%			7.0	%			10.0	%			10.6	%			8.1	%			7.5	%

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
			March 31,				June 30,				Sept 30,				Dec 31,				March 31,				June 30,
			2014				2014				2014				2014				2015				2015
Assets
Current assets:
Cash and cash equivalents			418,586				392,918				109,810				126,891				141,010				123,192
Trade accounts receivable, net			129,216				120,186				123,055				122,320				126,896				135,626
Deferred income taxes			9,469				16,774				14,689				12,408				25,610				23,111
Refundable income taxes			11,535				11,436				5,128				11,823				5,239				21
Restricted cash held in escrow							-				31,000				31,000				31,000				31,000
Other current assets			39,245				36,904				41,428				38,443				34,975				37,187
Assets of discontinued operations			205,387				180,205				186,453				175,843				172,284				163,768
Total current assets			813,438				758,423				511,563				518,728				537,014				513,905
Property and equipment			531,298				536,315				545,455				510,943				505,721				505,736
Less - accumulated depreciation and amortization			375,047				372,457				373,341				340,530				329,467				325,995
Property and equipment, net			156,251				163,858				172,114				170,413				176,254				179,741
Software, net of accumulated amortization			39,425				40,766				79,768				77,033				68,962				63,242
Goodwill			286,876				287,163				501,960				501,081				497,362				497,456
Purchased software licenses, net of accumulated amortization			14,306				13,883				11,723				10,516				9,551				9,492
Other assets, net			13,005				13,380				38,100				36,182				33,281				31,195
			1,323,301				1,277,473				1,315,228				1,313,953				1,322,424				1,295,031
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt			26,599				29,781				32,982				32,632				32,232				87,186
Trade accounts payable			30,054				34,793				38,991				28,399				30,094				39,606
Accrued payroll and related expenses			57,917				29,306				29,553				33,524				36,659				26,013
Other accrued expenses			64,024				61,805				59,987				62,447				62,754				55,025
Acquisition escrow payable			-				-				31,000				31,000				31,000				31,000
Deferred revenue			39,611				33,914				29,702				32,882				33,620				33,554
Income taxes			241				-				-				-				-				-
Liabilities of discontinued operations			74,488				69,261				69,936				62,268				57,433				50,764
Total current liabilities			292,934				258,860				292,151				283,152				283,792				323,148
Long-term debt			280,087				271,988				263,950				255,802				247,855				184,802
Deferred income taxes			62,147				60,401				73,345				75,419				80,675				76,654
Other liabilities			5,276				6,790				7,300				9,172				6,845				12,125
Stockholders' equity:
Common stock			12,584				12,644				12,707				12,723				12,794				12,847
Additional paid-in capital			981,985				988,607				1,005,443				1,015,697				1,034,526				1,045,897
Retained earnings			602,829				595,225				593,681				597,837				591,798				590,759
Accumulated other comprehensive income			13,662				14,428				11,856				9,364				9,413				10,142
Treasury stock, at cost			(928,203	)			(931,470	)			(945,205	)			(945,213	)			(945,274	)			(961,343	)
Total stockholders' equity			682,857				679,434				678,482				690,408				703,257				698,302
			1,323,301				1,277,473				1,315,228				1,313,953				1,322,424				1,295,031

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
			FY2014				06/30/14				09/30/14				12/31/14				03/31/15				FY2015				06/30/15
Cash flows from operating activities:
Net earnings (loss)			8,803				(7,604	)			(1,544	)			4,156				(6,039	)			(11,031	)			(1,039	)
Loss (earnings) from discontinued operations, net of tax			(26,143	)			(3,137	)			(5,557	)			(3,819	)			(2,998	)			(15,511	)			(4,143	)
Non-cash operating activities:
Depreciation and amortization			56,900				15,920				18,257				20,510				25,760				80,447				21,775
Loss (gain) on disposal or impairment of assets, net			(2,591	)			(254	)			47				(68	)			1,975				1,700				241
Impairment of goodwill and other			24,953				-				-				-				-				-				-
Loss on early extinguishment of debt			664				-				-				-				-				-				-
Deferred income taxes			10,935				(1,843	)			(4,179	)			4,002				(2,945	)			(4,965	)			(1,522	)
Non-cash stock compensation expense			13,206				3,925				7,725				8,450				8,216				28,316				8,123
Changes in operating assets and liabilities:
Accounts receivable			(2,797	)			11,399				(848	)			(978	)			(5,829	)			3,744				(8,037	)
Other assets			(8,609	)			3,590				1,778				(3,959	)			11,770				13,179				809
Deferred costs			(445	)			(211	)			-				(105	)			4				(312	)			(425	)
Accounts payable and other liabilities			14,369				(29,057	)			967				1,411				(1,450	)			(28,129	)			(3,530	)
Deferred revenue			6,541				(8,184	)			(2,321	)			3,290				908				(6,307	)			(255	)
Net cash provided by operating activities			95,786				(15,456	)			14,325				32,890				29,372				61,131				11,997
Cash flows from investing activities:
Capitalized software			(24,517	)			(4,969	)			(5,608	)			(4,408	)			(3,602	)			(18,587	)			(2,797	)
Capital expenditures			(25,951	)			(16,778	)			(15,362	)			(10,212	)			(14,600	)			(56,952	)			(12,876	)
Data acquisition costs			(7,745	)			(635	)			(468	)			(394	)			(374	)			(1,871	)			(430	)
Payments from investments			3,823				-				-				-				-				-				-
Net cash paid in acquisitions			(500	)			-				(265,672	)			-				-				(265,672	)			-
Net cash used in investing activities			(54,890	)			(22,382	)			(287,110	)			(15,014	)			(18,576	)			(343,082	)			(16,103	)
Cash flows from financing activities:
Proceeds from debt			300,000				-				-				-				-				-				-
Payments of debt			(231,151	)			(4,917	)			(4,839	)			(8,498	)			(8,347	)			(26,601	)			(8,099	)
Fees for debt refinancing			(4,370	)			-				-				-				-				-				-
Sale of common stock, net of stock acquired for withholding taxes			80,490				(674	)			(1,813	)			1,680				5,846				5,039				2,069
Tax impact of stock options, warrants, and restricted stock			(52,663	)			-				(9,868	)			-				-				(9,868	)			(77	)
Acquisition of treasury stock			11,295				-				-				-				4,645				4,645				(14,951	)
Acquisition of NCI			(600	)			-				-				-				-				-				-
Net cash provided (used) by financing activities			103,001				(5,591	)			(16,520	)			(6,818	)			2,144				(26,785	)			(21,058	)
Cash flows from discontinued operations:
From operating activities			69,190				17,310				11,547				9,916				5,080				43,853				11,653
From investing activities			(13,347	)			704				(4,034	)			(2,920	)			(3,004	)			(9,254	)			(4,484	)
From financing activities			(4,744	)			(585	)			(517	)			(459	)			(259	)			(1,820	)			(153	)
Net cash provided by discontinued operations			51,099				17,429				6,996				6,537				1,817				32,779				7,016
Effect of exchange rate changes on cash			616				332				(801	)			(512	)			(638	)			(1,619	)			330
Net change in cash and cash equivalents			195,612				(25,668	)			(283,110	)			17,083				14,119				(277,576	)			(17,818	)
Cash and cash equivalents at beginning of period			222,974				418,586				392,918				109,808				126,891				418,586				141,010
Cash and cash equivalents at end of period			418,586				392,918				109,808				126,891				141,010				141,010				123,192
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest			11,762				2,875				2,516				809				2,473				8,673				2,185
Income taxes			21,702				297				59				182				(4,383	)			(3,845	)			(1,044	)
Prepayment of debt			215,000				-				-				-				-				-				-
Payments on capital leases and installment payment arrangements			8,379				1,235				1,084				930				574				3,823				216
Other debt payments, excluding line of credit			12,516				4,267				4,272				8,027				8,032				24,598				8,036

View source version on businesswire.com: http://www.businesswire.com/news/home/20150805006422/en/