LiveRamp Holdings, Inc. - FORM 8-K - EX-99.1 - 1ST QUARTER FY13 PRESS RELEASE & FINANCIALS

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8-K - FORM 8-K (1ST QTR EARNINGS FY13) - LiveRamp Holdings, Inc.	f8k.htm

For more information, contact:

Katharine Boyce

Acxiom Investor Relations

501-342-1321

investor.relations@acxiom.com

EACXM

ACXIOM ANNOUNCES FIRST QUARTER RESULTS

Diluted earnings per share up 31 percent;

Income from operations up 23 percent

LITTLE ROCK, Ark. – July 30, 2012 — Acxiom® Corporation (Nasdaq: ACXM), a recognized leader in marketing services and technology, today announced financial results for the first quarter of fiscal year 2013 ended June 30, 2012.

Revenue from continuing operations was $272 million, down 2 percent compared to $276 million for the first quarter last year. Income from continuing operations increased 23 percent to $25 million in the current quarter, compared to $21 million in the prior year. Earnings per diluted share attributable to Acxiom stockholders were up approximately 31 percent in the current quarter to $0.17, compared to diluted earnings per share of $0.13 in the same period.

Operating cash flow increased 7 percent to $195 million for the trailing twelve months, compared with $182 million for the trailing twelve months ended June 30, 2011. Free cash flow to equity increased 154 percent to $175 million for the trailing twelve months, compared with $69 million for the trailing twelve months ended June 30, 2011. Free cash flow to equity for the trailing twelve months includes $73 million in proceeds from the sale of the Company’s background screening business. Free cash flow available to equity is a non-GAAP financial measure. A reconciliation to the comparable GAAP measure, operating cash flow, is attached.

“We are making progress – but we still have much to do,” said Acxiom CEO Scott Howe. “While our margins have improved and we’ve strengthened our managerial capability and focus, this year will continue to be a period of investment and transition. Our objective is straightforward – get better every day we come to work.”

First Quarter Highlights:

·	0perating margin increased to 9.4 percent, up approximately 2 percentage points year over year.

·	Acxiom repurchased 2.4 million shares for $33 million during the quarter. Since August 2011, the company has repurchased 8.1 million shares, or approximately 10 percent of the outstanding common stock, for $100 million.

In the quarter, Acxiom expanded its global partner program. The company was selected by Mindshare, a leading global media network, as the consumer insights provider for CORE, Mindshare’s new data-driven marketing intelligence platform. Through CORE, Acxiom delivers its unique breadth and accuracy of consumer insights to data-driven marketers. In Australia, the company and Yahoo!7 announced a new partnership to leverage Acxiom’s extensive offline data to deliver more highly effective online advertising.

·	Tim Cadogan, CEO of OpenX Technologies and former SVP of Global Advertising Marketplaces for Yahoo!, has been named to the Acxiom Board of Directors.

·	John Battelle, founder and executive chairman of Federated Media Publishing, has been nominated as a candidate for election to the Board at the company’s August 16, 2012, annual stockholders meeting.

Segment Results:

Marketing and Data Services: Revenue for the first quarter was $186 million, roughly flat compared to $185 million for the same period a year ago. U.S. revenue of $160 million was up 2 percent, but was offset by declines internationally. Income from operations for the first quarter was $18 million, compared to $17 million in the prior period. Operating margin was 10 percent, compared to 9 percent in the previous year.

IT Infrastructure Management: Revenue for the first quarter decreased 4 percent to $70 million, compared with $73 million for the same period a year ago. Income from operations for the quarter was $9 million, compared to $4 million in the prior period. Operating margin was approximately 13 percent compared to 6 percent a year ago.

·	Other Services: Revenue for the first quarter was $16 million, down from $18 million in the prior year. Losses from operations were approximately $2 million, compared to $1 million in the prior period.

Financial Guidance

The following projections are forward looking and are subject to certain risks and uncertainties that could cause actual results to differ materially as detailed in the Forward Looking Statements section of this press release. Acxiom’s estimates for fiscal 2013 are as follows:

·	Revenue from continuing operations is expected to be flat to slightly down.

·	Earnings per diluted share attributable to Acxiom shareholders are expected to be in the range of $0.60 to $0.65.

For the second quarter of fiscal 2013, revenue from continuing operations is expected to be down roughly 5 percent principally as a result of expected declines in the Company’s IT Infrastructure Management and Other Services segments.

Conference Call

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

Web Link to Financials

You may link to http://www.acxiom.com/FY13_Q1_Financials for the detailed financial information we typically attach to our earnings releases.

About Acxiom

Acxiom is a recognized leader in marketing services and technology that enable marketers to successfully manage audiences, personalize consumer experiences and create profitable customer relationships. Our superior industry-focused, consultative approach combines consumer data and analytics, databases, data integration and consulting solutions for personalized, multichannel marketing strategies. Acxiom leverages over 40 years of experience in data management to deliver high-performance, highly secure, reliable information management services. Founded in 1969, Acxiom is headquartered in Little Rock, Arkansas, USA, and serves clients around the world from locations in the United States, Europe, Asia-Pacific, and South America. 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 from continuing operations and earnings per share as well as statements regarding building momentum and our plans to invest in and transition our business. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. The following are factors, among others, that could cause actual results to differ materially from these forward-looking statements: the possibility that certain contracts may not generate the anticipated revenue or profitability or may not be closed within the anticipated time frames; the possibility that significant customers may experience extreme, severe economic difficulty or otherwise reduce the amount of business they do with us; the possibility that we will not successfully complete customer contract requirements on time or meet the service levels specified in the contracts, which may result in contract penalties or lost revenue; the possibility that data suppliers might withdraw data from us, leading to our inability to provide certain products and services to our clients, which could lead to decreases in our operating results; the possibility that we may not be able to attract, retain or motivate qualified technical, sales and leadership associates, or that we may lose key associates; the possibility that we may not be able to adequately adapt to rapidly changing computing environments, technologies and marketing practices; the possibility that we may be unable to quickly and seamlessly integrate our new executive officers; the possibility that we will not be able to continue to receive credit upon satisfactory terms and conditions; the possibility that negative changes in economic conditions in general or other conditions might lead to a reduction in demand for our products and services; the possibility that there will be changes in consumer or business information industries and markets that negatively impact the company; the possibility that the historical seasonality of our business may

change; the possibility that we will not be able to achieve cost reductions and avoid unanticipated costs; the possibility that the fair value of certain of our assets may not be equal to the carrying value of those assets now or in future time periods; the possibility that 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; 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, 2012, which was filed with the Securities and Exchange Commission on May 25, 2012.

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.


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


	For the Three Months Ended
	June 30,
							$				%
	2012			2011			Variance			Variance

Revenue:
Marketing and data services		185,676			184,996			680			0.4	%
IT Infrastructure management services		70,290			73,050			(2,760	)		(3.8	%)
Other services		15,693			17,998			(2,305	)		(12.8	%)
Total revenue		271,659			276,044			(4,385	)		(1.6	%)

Operating costs and expenses:
Cost of revenue		209,326			218,289			8,963			4.1	%
Selling, general and administrative		36,749			36,807			58			0.2	%
Gains, losses and other items, net		160			244			84			34.4	%

Total operating costs and expenses		246,235			255,340			9,105			3.6	%

Income from operations		25,424			20,704			4,720			22.8	%
% Margin		9.4	%		7.5	%
Other income (expense):
Interest expense		(3,240	)		(5,455	)		2,215			40.6	%
Other, net		(547	)		(87	)		(460	)		(528.7	%)

Total other income (expense)		(3,787	)		(5,542	)		1,755			31.7	%

Earnings from continuing operations before income taxes		21,637			15,162			6,475			42.7	%

Income taxes		8,438			6,063			(2,375	)		(39.2	%)

Net earnings from continuing operations		13,199			9,099			4,100			45.1	%

Earnings from discontinued operations, net of tax		-			916			(916	)		(100.0	%)

Net earnings		13,199			10,015			3,184			31.8	%

Less: Net loss attributable to noncontrolling interest		(134	)		(960	)		826			86.0	%

Net earnings attributable to Acxiom		13,333			10,975			2,358			21.5	%

Basic earnings per share:
Net earnings from continuing operations		0.17			0.11			0.06			54.5	%
Earnings from discontinued operations		0.00			0.01			(0.01	)		(100.0	%)
Net earnings		0.17			0.12			0.05			41.7	%

Net earnings attributable to Acxiom stockholders		0.17			0.14			0.03			21.4	%


Diluted earnings per share:
Net earnings from continuing operations		0.17			0.11			0.06			54.5	%
Earnings from discontinued operations		0.00			0.01			(0.01	)		(100.0	%)
Net earnings		0.17			0.12			0.05			41.7	%

Net earnings attributable to Acxiom stockholders		0.17			0.13			0.04			30.8	%


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


	For the Three Months Ended

	June 30,		June 30,
	2012		2011

Basic earnings per share from continuing operations:
Numerator - net earnings		13,199		9,099
Denominator - weighted-average shares outstanding		76,473		80,942
Basic earnings per share		0.17		0.11

Basic earnings per share - net earnings attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		13,333		10,975
Denominator - weighted-average shares outstanding		76,473		80,942
Basic earnings per share - net earnings attributable to Acxiom stockholders		0.17		0.14

Diluted earnings per share from continuing operations:
Numerator - net earnings		13,199		9,099

Denominator - weighted-average shares outstanding		76,473		80,942
Dilutive effect of common stock options, warrants and restricted stock		1,584		1,072
		78,057		82,014

Diluted earnings per share from continuing operations		0.17		0.11

Diluted earnings per share - net earnings attributable to Acxiom stockholders:
Numerator - net earnings attributable to Acxiom		13,333		10,975

Denominator - weighted-average shares outstanding		76,473		80,942
Dilutive effect of common stock options, warrants, and restricted stock		1,584		1,072
		78,057		82,014

Diluted earnings per share - net earnings attributable to Acxiom stockholders		0.17		0.13


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


	For the Three Months Ended

	June 30,			June 30,
Revenue:	2012			2011

Marketing and data services		185,676			184,996
IT Infrastructure management services		70,290			73,050
Other services		15,693			17,998

Total revenue		271,659			276,044


Income from continuing operations:

Marketing and data services		18,366			17,260
IT Infrastructure management services		8,831			4,247
Other services		(1,613	)		(559	)
Corporate		(160	)		(244	)

Total income from continuing operations		25,424			20,704

Margin:

Marketing and data services		9.9	%		9.3	%
IT Infrastructure management services		12.6	%		5.8	%
Other services		-10.3	%		-3.1	%

Total margin		9.4	%		7.5	%


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

	June 30,			March 31,			$				%
	2012			2012			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		179,282			229,648			(50,366	)		(21.9	%)
Trade accounts receivable, net		172,549			169,446			3,103			1.8	%
Deferred income taxes		14,688			15,107			(419	)		(2.8	%)
Other current assets		58,064			57,804			260			100.0	%

Total current assets		424,583			472,005			(47,422	)		(10.0	%)

Property and equipment		798,908			913,073			(114,165	)		(12.5	%)
Less - accumulated depreciation and amortization		555,973			659,700			(103,727	)		(15.7	%)

Property and equipment, net		242,935			253,373			(10,438	)		(4.1	%)

Software, net of accumulated amortization		14,501			13,211			1,290			9.8	%
Goodwill		381,439			382,285			(846	)		(0.2	%)
Purchased software licenses, net of accumulated amortization		24,548			25,294			(746	)		(2.9	%)
Deferred costs, net		56,600			61,977			(5,377	)		(8.7	%)
Data acquisition costs		13,785			15,009			(1,224	)		(8.2	%)
Other assets, net		3,163			3,697			(534	)		(14.4	%)

		1,161,554			1,226,851			(65,297	)		(5.3	%)

Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		24,905			26,336			(1,431	)		(5.4	%)
Trade accounts payable		23,442			31,030			(7,588	)		(24.5	%)
Accrued payroll and related expenses		31,585			54,839			(23,254	)		(42.4	%)
Other accrued expenses		78,535			77,062			1,473			1.9	%
Deferred revenue		52,588			59,949			(7,361	)		(12.3	%)
Income taxes		9,966			16,400			(6,434	)		(39.2	%)

Total current liabilities		221,021			265,616			(44,595	)		(16.8	%)

Long-term debt		248,613			251,886			(3,273	)		(1.3	%)

Deferred income taxes		91,643			93,039			(1,396	)		(1.5	%)

Other liabilities		4,134			4,455			(321	)		(7.2	%)

Stockholders' equity:
Common stock		12,055			12,003			52			0.4	%
Additional paid-in capital		865,229			860,165			5,064			0.6	%
Retained earnings		549,692			536,359			13,333			2.5	%
Accumulated other comprehensive income		11,929			13,601			(1,672	)		(12.3	%)
Treasury stock, at cost		(842,736	)		(810,381	)		(32,355	)		(4.0	%)
Total Acxiom stockholders' equity		596,169			611,747			(15,578	)		(2.5	%)
Noncontrolling interest		(26	)		108			(134	)		(124.1	%)

Total equity		596,143			611,855			(15,712	)		(2.6	%)

		1,161,554			1,226,851			(65,297	)		(5.3	%)


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

	For the Three Months Ended

	June 30,

	2012			2011

Cash flows from operating activities:
Net earnings		13,199			10,015
Non-cash operating activities:
Depreciation and amortization		30,995			35,295
Loss on disposal or impairment of assets		24			-
Deferred income taxes		(1,403	)		37
Non-cash stock compensation expense		2,653			2,355
Changes in operating assets and liabilities:
Accounts receivable		(4,609	)		(3,622	)
Other assets		(1,397	)		(8,517	)
Deferred costs		(647	)		(386	)
Accounts payable and other liabilities		(33,464	)		(3,674	)
Deferred revenue		(7,218	)		1,251
Net cash provided (used) by operating activities		(1,867	)		32,754
Cash flows from investing activities:
Capitalized software		(3,673	)		(529	)
Capital expenditures		(3,538	)		(12,577	)
Data acquisition costs		(2,302	)		(2,776	)
Net cash paid in acquisitions		-			(255	)
Net cash used by investing activities		(9,513	)		(16,137	)
Cash flows from financing activities:
Payments of debt		(6,856	)		(32,312	)
Sale of common stock		1,761			39
Contingent consideration paid for prior acquisitions		(287	)		(326	)
Acquisition of treasury stock		(33,097	)		-
Net cash used by financing activities		(38,479	)		(32,599	)
Effect of exchange rate changes on cash		(507	)		53

Net change in cash and cash equivalents		(50,366	)		(15,929	)
Cash and cash equivalents at beginning of period		229,648			206,973
Cash and cash equivalents at end of period		179,282			191,044

Supplemental cash flow information:
Cash paid during the period for:
Interest		3,223			5,589
Income taxes		16,193			1,098
Payments on capital leases and installment payment arrangements		4,562			4,794
Payments on software and data license liabilities		129			367
Other debt payments, excluding line of credit		2,165			2,151
Prepayment of debt		-			25,000
Noncash investing and financing activities:
Acquisition of property and equipment under capital lease
and installment payment arrangements		2,157			3,747


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


	06/30/11			09/30/11			12/31/11			03/31/12			FY2012			06/30/12			TTM 6/30/11			TTM 6/30/12

Net cash provided (used) by operating activities		32,754			57,714			82,540			56,443			229,451			(1,867	)		181,985			194,830

Less:
Disposition of operations		-			(1,043	)		-			73,468			72,425			-			-			72,425
Capitalized software		(529	)		(991	)		(1,647	)		(2,095	)		(5,262	)		(3,673	)		(3,858	)		(8,406	)
Capital expenditures		(12,577	)		(12,134	)		(14,436	)		(12,444	)		(51,591	)		(3,538	)		(62,846	)		(42,552	)
Data acquisition costs		(2,776	)		(1,774	)		(3,999	)		(3,763	)		(12,312	)		(2,302	)		(11,816	)		(11,838	)
Payments on capital leases and installment payment arrangements		(4,794	)		(4,184	)		(4,709	)		(4,644	)		(18,331	)		(4,562	)		(21,183	)		(18,099	)
Payments on software and data license liabilities		(367	)		(124	)		(125	)		(2,300	)		(2,916	)		(129	)		(4,790	)		(2,678	)
Other required debt payments		(2,151	)		(2,155	)		(2,159	)		(2,164	)		(8,629	)		(2,165	)		(8,476	)		(8,643	)

Total		9,560			35,309			55,465			102,501			202,835			(18,236	)		69,016			175,039


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

																			Q1 FY13 to Q1 FY12
	06/30/11			09/30/11			12/31/11			03/31/12			FY2012			06/30/12			%			$
Revenue:
Marketing and data services		184,996			195,857			187,461			203,400			771,714			185,676			0.4	%		680
IT Infrastructure management services		73,050			73,712			77,173			67,590			291,525			70,290			-3.8	%		(2,760	)
Other services		17,998			16,863			16,259			16,265			67,385			15,693			-12.8	%		(2,305	)
Total revenue		276,044			286,432			280,893			287,255			1,130,624			271,659			-1.6	%		(4,385	)

Operating costs and expenses:
Cost of revenue		218,289			217,487			213,925			213,788			863,489			209,326			4.1	%		8,963
Selling, general and administrative		36,807			39,429			36,318			38,577			151,131			36,749			0.2	%		58
Impairment of goodwill and other intangibles		-			-			17,803			-			17,803			-						0
Gains, losses and other items, net		244			2,465			(2,671	)		12,600			12,638			160			34.4	%		84

Total operating costs and expenses		255,340			259,381			265,375			264,965			1,045,061			246,235			3.6	%		9,105

Income from operations		20,704			27,051			15,518			22,290			85,563			25,424			22.8	%		4,720
% Margin		7.5	%		9.4	%		5.5	%		7.8	%		7.6	%		9.4	%
Other income (expense)
Interest expense		(5,455	)		(4,719	)		(3,883	)		(3,391	)		(17,448	)		(3,240	)		-40.6	%		2,215
Other, net		(87	)		(965	)		(98	)		(219	)		(1,369	)		(547	)		-528.7	%		(460	)
Total other income (expense)		(5,542	)		(5,684	)		(3,981	)		(3,610	)		(18,817	)		(3,787	)		31.7	%		1,755

Earnings from continuing operations before income taxes		15,162			21,367			11,537			18,680			66,746			21,637			42.7	%		6,475
Income taxes		6,063			9,528			9,700			3,838			29,129			8,438			-39.2	%		(2,375	)

Net earnings from continuing operations		9,099			11,839			1,837			14,842			37,617			13,199			45.1	%		4,100

Earnings from discontinued operations, net of tax		916			1,138			814			31,031			33,899			-			-100.0	%		(916	)

Net earnings		10,015			12,977			2,651			45,873			71,516			13,199			31.8	%		3,184

Less: Net earnings (loss) attributable
to noncontrolling interest		(960	)		685			(5,279	)		(193	)		(5,747	)		(134	)		86.0	%		826

Net earnings attributable to Acxiom		10,975			12,292			7,930			46,066			77,263			13,333			21.5	%		2,358

Diluted earnings per share - net earnings attributable
to Acxiom stockholders		0.13			0.15			0.10			0.58			0.96			0.17			30.8	%		0.04

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

																			Q1 FY13 to Q1 FY12
	06/30/11			09/30/11			12/31/11			03/31/12			FY2012			06/30/12			%			$

Revenue:

Marketing and data services		184,996			195,857			187,461			203,400			771,714			185,676			0	%		680
IT Infrastructure management services		73,050			73,712			77,173			67,590			291,525			70,290			-4	%		(2,760	)
Other services		17,998			16,863			16,259			16,265			67,385			15,693			-13	%		(2,305	)

Total revenue		276,044			286,432			280,893			287,255			1,130,624			271,659			-2	%		(4,385	)

Income from operations:

Marketing and data services		17,260			27,078			21,388			30,094			95,820			18,366			6	%		1,106
IT Infrastructure management services		4,247			5,091			9,795			5,855			24,988			8,831			108	%		4,584
Other services		(559	)		(2,653	)		(533	)		(1,059	)		(4,804	)		(1,613	)		-189	%		(1,054	)
Corporate		(244	)		(2,465	)		(15,132	)		(12,600	)		(30,441	)		(160	)		34	%		84

Total income (loss) from operations		20,704			27,051			15,518			22,290			85,563			25,424			23	%		4,720

Margin:

Marketing and data services		9.3	%		13.8	%		11.4	%		14.8	%		12.4	%		9.9	%
IT Infrastructure management services		5.8	%		6.9	%		12.7	%		8.7	%		8.6	%		12.6	%
Other services		-3.1	%		-15.7	%		-3.3	%		-6.5	%		-7.1	%		-10.3	%

Total		7.5	%		9.4	%		5.5	%		7.8	%		7.6	%		9.4	%

LiveRamp Holdings, Inc. - FORM 8-K - EX-99.1 - 1ST QUARTER FY13 PRESS RELEASE & FINANCIALS - July 30, 2012

Attached files

LiveRamp Holdings, Inc. Reports