|By Business Wire||
|May 1, 2014 06:02 AM EDT||
ACI Worldwide (NASDAQ: ACIW), a leading international provider of electronic payment and banking systems, today announced financial results for the period ended March 31, 2014. Management will host a conference call at 8:30 am ET to discuss these results as well as 2014 guidance. Interested persons may access a real-time audio broadcast of the teleconference at www.aciworldwide.com/investors or use the following numbers for dial-in participation: US/Canada: (866) 914-7436, International/Local: +1 (817) 385-9117. Please provide your name, the conference name ACI Worldwide, Inc. and conference code 25558357. There will be a replay available for two weeks on (855) 859-2056 for US/Canada Dial-In and +1 (404) 537- 3406 for International/Local Dial-In participants.
“ACI started 2014 strong with results that position us well to achieve our full year expectations,” commented Phil Heasley, President and CEO, ACI Worldwide. “Net new bookings were particularly robust as we are clearly seeing interest in our Universal Payments-enabled solutions.”
Financial Results for Q1
Revenue in Q1 was $221 million, an increase of $59 million, or 37%, above the prior year quarter. The acquisition of Official Payments and incremental revenue from Online Resources contributed $33 million and $29 million, respectively, to the increase in revenue compared to the prior year quarter.
New sales bookings, net of term extensions (SNET) increased 59% compared to the prior year quarter. Our 12-month backlog increased by $13 million from last quarter to $883 million, while our 60-month backlog increased by $49 million from last quarter to $3.91 billion.
Operating income was $0.3 million for the quarter, versus a loss of $4 million in the prior year quarter. Adjusted EBITDA of $32 million grew 46%, or $10 million above last year’s $22 million. Net EBITDA margin in Q1 2014 represented 16% versus 14% margin last year, after adjusting for $28 million and $1 million of pass through interchange in Q1 2014 and Q1 2013, respectively.
Q1 GAAP net loss was $6 million, or ($0.15) per diluted share, versus a net loss of $2 million, or ($0.05) per diluted share in Q1 2013. The variance was primarily driven by increased interest expense and foreign currency fluctuations.
We ended the first quarter with $59 million in cash on hand. Operating free cash flow (OFCF) for the quarter was $15 million, down from $34 million in Q1 of last year. The quarter ended with a debt balance of $779 million. We repurchased 1.2 million shares of our stock in the quarter for approximately $70 million and have approximately $138 million remaining on our current authorization.
We continue to expect to generate non-GAAP revenue in a range of $1.06 to $1.08 billion for the full year and now forecast non-GAAP revenue of $240 to $250 million in the second quarter. Adjusted EBITDA expectations remain in a range of $290 to $300 million. This guidance excludes $13 to $15 million of one-time integration-related expenses and includes $2 million for the deferred revenue adjustments. Lastly, our full year 2014 net new sales bookings growth is expected to be in the upper single digit range.
About ACI Worldwide
ACI Worldwide, the Universal Payments company, powers electronic payments and banking for more than 5,000 financial institutions, retailers, billers and processors around the world. ACI software processes $13 trillion in payments and securities transactions for more than 250 of the leading global retailers, and 21 of the world’s 25 largest banks. Through our comprehensive suite of software products and hosted services, we deliver a broad range of solutions for payment processing; card and merchant management; online banking; mobile, branch and voice banking; fraud detection; trade finance; and electronic bill presentment and payment. To learn more about ACI, please visit www.aciworldwide.com. You can also find us on Twitter @ACI_Worldwide.
|ACI WORLDWIDE, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(unaudited and in thousands, except share and per share amounts)|
|March 31,||December 31,|
|Cash and cash equivalents||$||58,936||$||95,059|
|Receivables, net of allowances of $4,149 and $4,459, respectively||203,600||203,575|
|Deferred income taxes, net||71,051||47,593|
|Recoverable income taxes||2,927||2,258|
|Other current assets||50,956||65,328|
Total current assets
|Property and equipment, net||55,988||57,347|
|Intangible assets, net||232,053||237,693|
|Deferred income taxes, net||39,541||48,852|
|Other noncurrent assets||41,956||40,912|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Current portion of long-term debt||53,227||47,313|
|Income taxes payable||4,121||1,192|
|Deferred income taxes, net||940||753|
|Other current liabilities||70,818||95,016|
|Total current liabilities||353,254||345,600|
|Deferred income taxes, net||10,208||11,000|
|Other noncurrent liabilities||27,396||27,831|
|Commitments and contingencies|
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued and outstanding at March 31, 2014 and December 31, 2013
Common stock; $0.005 par value; 140,000,000 shares authorized; 46,606,796 shares issued at March 31, 2014 and December 31, 2013
|Additional paid-in capital||544,720||543,163|
|Treasury stock, at cost, 8,680,947 and 7,751,807 shares at March 31, 2014 and December 31, 2013, respectively||(304,018||)||(240,241||)|
|Accumulated other comprehensive loss||(20,414||)||(23,315||)|
|Total stockholders' equity||478,600||543,694|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$||1,640,002||$||1,681,851|
|ACI WORLDWIDE, INC. AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(unaudited and in thousands, except per share amounts)|
|For the Three Months Ended|
|Cost of license (1)||5,736||5,918|
|Cost of maintenance, services and hosting (1)||107,887||61,871|
|Research and development||37,456||37,149|
|Selling and marketing||27,909||25,074|
|General and administrative||25,116||25,037|
|Depreciation and amortization||17,078||10,957|
|Total operating expenses||221,182||166,006|
|Operating income (loss)||291||(4,009||)|
|Other income (expense)|
|Total other income (expense)||(10,033||)||(601||)|
|Loss before income taxes||(9,742||)||(4,610||)|
|Income tax benefit||(3,967||)||(2,444||)|
|Loss per common share|
Weighted average common shares outstanding
(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|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS|
|(unaudited and in thousands)|
|For the Three Months Ended|
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash flows from operating activities:|
|Amortization of deferred debt issuance costs||1,348||960|
|Deferred income taxes||(11,277||)||(6,096||)|
|Stock-based compensation expense||4,772||3,950|
|Excess tax benefit of stock options exercised||(4,070||)||(1,308||)|
Changes in operating assets and liabilities, net of impact of acquisitions:
|Accrued employee compensation||(3,580||)||(12,281||)|
|Current income taxes||6,166||4,278|
|Other current and noncurrent assets and liabilities||(15,163||)||(4,549||)|
|Net cash flows from operating activities||15,257||34,927|
|Cash flows from investing activities:|
|Purchases of property and equipment||(4,228||)||(6,241||)|
|Purchases of software and distribution rights||(3,580||)||(2,764||)|
|Acquisition of businesses, net of cash acquired||-||(264,202||)|
|Net cash flows from investing activities||(7,808||)||(273,207||)|
|Cash flows from financing activities:|
|Proceeds from issuance of common stock||652||475|
|Proceeds from exercises of stock options||2,887||3,864|
|Excess tax benefit of stock options exercised||4,070||1,308|
|Repurchases of common stock||(70,000||)||-|
|Repurchase of restricted stock and performance shares for tax withholdings||(4,503||)||(5,520||)|
|Proceeds from term portion of credit agreement||-||300,000|
|Proceeds from revolving credit facility||40,000||-|
|Repayment of revolving credit facility||(8,000||)||-|
|Repayment of term portion of credit agreement||(8,871||)||(3,750||)|
|Payments on other debt and capital leases||(382||)||(8,338||)|
|Payment for debt issuance costs||(163||)||(9,272||)|
Net cash flows from financing activities
|Effect of exchange rate fluctuations on cash||738||(4,332||)|
|Net increase (decrease) in cash and cash equivalents||(36,123||)||36,155|
|Cash and cash equivalents, beginning of period||95,059||76,329|
|Cash and cash equivalents, end of period||$||58,936||$||112,484|
|ACI Worldwide, Inc.|
|Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1)|
|(unaudited and in thousands, except per share data)|
|FOR THE THREE MONTHS ENDED March 31,|
|Selected Non-GAAP Financial Data||GAAP||Adj||Non-GAAP||GAAP||Adj||Non-GAAP||$ Diff||% Diff|
|Total revenues (2)||$||221,473||$||587||$||222,060||$||161,997||$||1,134||$||163,131||$||58,929||36||%|
|Total expenses (3)||221,182||(5,739||)||215,443||166,006||(6,597||)||159,409||56,034||35||%|
|Operating income (loss)||291||6,326||6,617||(4,009||)||7,731||3,722||2,895||78||%|
|Income (Loss) before income taxes||(9,742||)||6,326||(3,416||)||(4,610||)||7,731||3,121||(6,537||)||-209||%|
|Income tax expense (benefit) (4)||(3,967||)||2,214||(1,753||)||(2,444||)||2,706||262||(2,015||)||-769||%|
|Net income (loss)||$||(5,775||)||$||4,112||$||(1,663||)||$||(2,166||)||$||5,025||$||2,859||$||(4,522||)||-158||%|
|Amortization - acquisition related intangibles||6,538||-||6,538||3,842||-||3,842||2,696||70||%|
|Amortization - acquisition related software||5,107||-||5,107||2,993||-||2,993||2,114||71||%|
|Amortization - other||3,637||-||3,637||3,587||-||3,587||50||1||%|
|Stock-based compensation (5)||4,772||-||4,772||3,950||-||3,950||822||21||%|
|Earnings per share information|
|Weighted average shares outstanding|
|Earnings per share|
(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 was not recognized due to GAAP purchase accounting requirements.
(3) Expense for significant transaction related transactions, including, $2.0 million for employee related actions, $2.0 million for data center moves and $1.7 million for professional and other fees in 2014 and $1.9 million for employee related actions, $2.5 million for ORCC acquisition fees and $2.2 million for other professional fees in 2013.
(4) Adjustments tax effected at 35%.
|Reconciliation of Operating Free Cash Flow (millions)||2014||2013|
|Net cash provided (used) by operating activities||$||15.3||$||34.9|
|Payments associated with acquired opening balance sheet liabilities||4.1||-|
|Net after-tax payments associated with employee-related actions (4)||1.2||1.5|
|Net after-tax payments associated with lease terminations (4)||0.4||0.1|
|Net after-tax payments associated with significant transaction related expenses (4)||1.8||4.9|
Net after-tax payments associated with IBM IT Outsourcing Termination (4)
|Less capital expenditures||(7.8||)||(9.0||)|
|Operating Free Cash Flow||$||15.0||$||34.3|
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
May. 6, 2016 10:30 AM EDT Reads: 1,591
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
May. 6, 2016 10:00 AM EDT Reads: 1,308
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
May. 6, 2016 10:00 AM EDT Reads: 1,504
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
May. 6, 2016 10:00 AM EDT Reads: 1,093
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
May. 6, 2016 09:15 AM EDT Reads: 1,423
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
May. 6, 2016 09:00 AM EDT Reads: 803
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
May. 6, 2016 08:45 AM EDT Reads: 666
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 6, 2016 07:00 AM EDT Reads: 1,077
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
May. 6, 2016 06:00 AM EDT Reads: 1,526
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
May. 6, 2016 04:00 AM EDT Reads: 1,347
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
May. 6, 2016 02:00 AM EDT Reads: 1,431
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
May. 6, 2016 01:45 AM EDT Reads: 1,450
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
May. 6, 2016 01:00 AM EDT Reads: 1,276
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
May. 6, 2016 12:00 AM EDT Reads: 1,496
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
May. 5, 2016 11:30 PM EDT Reads: 1,387
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
May. 5, 2016 04:00 PM EDT Reads: 808
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
May. 5, 2016 03:45 PM EDT Reads: 783
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
May. 5, 2016 12:30 PM EDT Reads: 1,353
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
May. 5, 2016 12:30 PM EDT Reads: 1,381
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
May. 3, 2016 12:15 PM EDT Reads: 1,668