OPERATING HIGHLIGHTS
* Year-over-year revenues grew $43.4 million or 12% aided by
customer 'go live' recognition and term renewals
* Operating Free Cash Flow (OFCF) increased to approximately
$65 million, $12 million higher than the prior year
* Calendar Year GAAP EPS grew $0.68 to $0.30 per share in fiscal
year 2008
* Signed five major customer renewals; two of which were formerly
PUFs and are improved economic deals on a normal five-year
contract basis
* Removed approximately $30 million in annualized costs from the
business during full year 2008 and we currently expect to remove
an additional $8.0 million in annualized cost in 2009
---------------------------------------------------------------------
Quarter and Year Ended
---------------------------------------------------------------------
Better/ Better/ Better/ Better/
(Worse) (Worse) (Worse) (Worse)
Quarter Year Quarter Quarter Year Year
ended ended ended ended ended ended
Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
2008 2008 2007 2007 2007 2007
---------------------------------------------------------------------
Operating
Free Cash
Flow $31.1 $65.1 $10.0 47% $12.3 23%
($ Mil)
60 month
Backlog
($Bil) $1.407 $1.407 $0.019 1% $0.019 1%
Revenues
($ Mil) $109.2 $417.7 $7.9 8% $43.4 12%
---------------------------------------------------------------------
NEW YORK, Feb. 26, 2009 (GLOBE NEWSWIRE) -- ACI Worldwide, Inc. (Nasdaq:ACIW), a leading international provider of software for electronic payment systems, today announced financial results for the quarter and year ended December 31, 2008. We will hold a conference call on February 26, 2009, at 8.30 a.m. EST to discuss this information. Interested persons may also access a real-time audio broadcast of the teleconference at www.aciworldwide.com/investors.
"In 2008, ACI achieved strong sales and operational performance. Our infrastructure investment over the past few years has begun to pay off as we demonstrated higher completion rates in multi-product customer installations. In the fourth quarter, we achieved success in renewing term contracts, previously booked at deep discounts, at economically advantageous rates", Chief Executive Officer Philip Heasley said.
Heasley further added, "I can reiterate my statements from last quarter. We do not currently expect sales of our products to be unduly affected by the macroeconomic climate as our solutions enhance the productivity of bank processing. Even in a credit-constrained environment, we believe it will continue to be critical for the payments side of the banks to achieve further productivity improvements."
As previously disclosed, on February 23, 2007, our Board of Directors approved a change in our fiscal year from a September 30 fiscal year-end to a December 31 fiscal year-end, effective as of January 1, 2008 for the year ended December 31, 2008. Accordingly, for comparison purposes, we have included financial information for the twelve months ended December 31, 2007 in this press release, which has been derived by combining the results of the four quarters ended March 31, 2007, June 30, 2007, September 30, 2007 and December 31, 2007.
Notable new business during the quarter included:
* EMEA: Products selected across the Europe/Middle East region
included large service deals incorporating BASE24-eps(tm)
combinations in Western Europe, ACI Proactive Risk
Manager(tm), and ACI Money Transfer Service. Customer
geographies included Hungary, Italy, the Netherlands, Russia,
Spain, the United Kingdom as well as a new customer in Kenya.
* Asia: New accounts and new applications signed in Thailand,
Australia and in New Zealand for products ranging from BASE24-
pos(tm), ACI Proactive Risk Manager(tm), and numerous add-on/
capacity deals in Korea, Thailand, China, Philippines and
Australia. Our two largest Asian customers signed renewals
in the quarter as well.
* Americas: Major term renewals drove large amounts of Base24
systems in combination with Payments Manager. There was also
a significant Enterprise Banker win. Retail sector sales
occurred in supermarkets, pharmacies and gas station chains.
During 2008, total sales for the Americas rose approximately
10% with new business sales up 14% year-over-year.
FINANCIAL SUMMARY
Operating Free Cash Flow
Operating free cash flow for the December 2008 quarter was $31.1 million compared to $21.1 million for the December 2007 quarter. The primary items driving the year-over-year increase of $10.0 million in operating free cash flow were related to higher customer cash receipts, lower payroll and benefits expenses and capital expenditures as well as lower cash taxes paid in the 2008 period. Negative variance over the December 2007 quarter was driven by the lack of a corresponding IBM alliance receipt in the December 2008 quarter, which amounted to approximately $9 million in the prior year quarter.
Operating free cash flow for the twelve months ended December 31, 2008 was $65.1 million, an increase of approximately $12 million over the twelve months ended December 31, 2007. Driving the increase in operating free cash flow was IBM alliance receipts of approximately $33 million, an approximately $19 million increase in customer cash receipts, and a reduction of approximately $7 million in payroll and benefits expenses as a result of restructuring and favorable foreign exchange fluctuations. This increase was partially offset by growth of approximately $9 million in contractor expenses during 2008, higher annual capital expenditures related to the relocation of our Omaha facilities, and approximately $6 million in cash expenditures on the IBM IT transition and outsourcing.
Liquidity
We had $113.0 million in cash and cash equivalents on hand at December 31, 2008, an increase of $16.0 million as compared to December 31, 2007. As of December 31, 2008, we also had $75.0 million of unused borrowings under our credit facility.
Sales
Sales bookings in the quarter totaled $189.3 million compared to $131.5 million in the December 2007 quarter. The $57.8 million, or 44%, rise in period-over-period sales is primarily from add-on business and term extensions. Add-on business accounted for $82.5 million of the December 2008 quarter sales compared to $55.6 million in the December 2007 quarter sales while term extensions contributed $73.3 million in the 2008 quarter compared to $44.5 million in the 2007 quarter. Add-ons were comprised of capacity upgrades, migrations to BASE24-eps(tm), and sales of additional functionality to existing customers. Term extensions to existing customers were booked at economically normalized renewal rates as compared to the discounted incentives offered in the previous renewal terms.
Backlog
As of December 31, 2008, our estimated 60-month backlog was $1.407 billion compared to $1.414 billion at September 30, 2008, and $1.388 billion as of December 31, 2007. The sequential decrease of approximately $7 million, or 0.5%, in our 60-month backlog was primarily due to foreign exchange translation loss of approximately $54 million on a sequential quarterly basis offset by increases from 2008 new sales. The 60-month backlog metric was negatively impacted by an approximately $78 million variance in currency rates year-over-year. As of December 31, 2008, our estimated 12-month backlog was $325 million, a decrease of approximately $11 million from the quarter ended December 31, 2007, reflecting both the large deals which moved out of backlog into current period GAAP revenue in calendar 2008 and the approximately $18 million impact of the strengthening US Dollar. Customer installations which went live during the year were predominantly in Western Europe, the Middle East and the United States.
Revenue
Revenue was $109.2 million in the quarter ended December 31, 2008, an increase of $7.9 million, or 8%, over the prior-year period revenue of $101.3 million driven primarily by increases in service revenues. Consistent with the performance of prior quarters in calendar year 2008, our December 2008 quarterly GAAP revenue was derived principally from our backlog: 81% from backlog and 19% of the revenue was provided by current-period sales of license renewal fees and capacity. The amount of revenue originating from same period sales was higher than in the prior year due to the sales mix being more heavily weighted towards renewal and add-on business. Services revenue increased by 34%, or $7.8 million, to $30.7 million due to higher ongoing and ancillary services provided to customers at more commercially attractive rates. License fee revenues, as well as maintenance revenues, were largely unchanged on a year over year basis. Revenue growth in the December 2008 quarter was negatively impacted by an estimated $8 million in foreign exchange rate fluctuations compared to the December 2007 quarter.
Revenue for the twelve months ended December 31, 2008 was $417.7 million, an increase of $43.4 million or 12% compared to revenue of $374.2 million for the twelve months ended December 31, 2007. Revenue growth is attributed to our success in completing multi-phase, complex new customer and new application installations. Revenue growth year-over-year, much like backlog, was adversely impacted by an estimated $3 million in foreign exchange rate fluctuations.
Operating Expenses
Operating expenses were $89.6 million in the December 2008 quarter compared to $98.4 million in the December 2007 quarter, a decrease of $8.8 million or approximately 9%. This decrease in operating expense was largely due to a reduction of $10.2 million in personnel and related costs due to the implementation of our restructuring and headcount reduction program, in addition to the lower headcount resulting from the IBM IT outsourcing arrangement. Other large decreases resulted from reductions in travel and entertainment of $1.0 million, a $0.6 million reduction in advertising and promotion as well as a nearly $1.0 million reduction in facilities. These savings were partially offset by $2.0 million in additional severance in the December 2008 quarter as well as $2.0 million in professional fees related to reinvestments and development of our corporate management office.
Operating expenses for the twelve months ended December 31, 2008 were $395.9 million, an increase of $22.0 million, or 6%, compared to expense of $373.9 million in the twelve months ended December 31, 2007. The increase in operating expense year over year resulted from a rise of $14.8 million in personnel and related costs. The increase was due to cost of maintenance and services as we implemented large volumes of multi-product systems and invested in next generation software releases. Other large increases resulted from the release of $3.2 million of deferred costs related to the recognition of the Faster Payments and Mastercard implementations upon project completion, an increase of $2.9 million in distributor commissions related to mix of sales in 2008. We also incurred an incremental $2.9 million in 2008 above 2007 costs related to severance actions, recruitment and consulting fees and the IBM IT outsourcing transition costs.
Other Income and Expense
Other income for the December 2008 quarter was $4.4 million compared to other expense of $1.0 million in the December 2007 quarter. The variance of $5.4 million in other income resulted primarily from a positive variance of $7.4 million in foreign exchange gains due to change in exchange rates and our net monetary asset positions in US dollars and in Euros. The foreign exchange gain was partially offset by a $1.8 million increase in the non-cash charge on our interest rate swaps. Interest expense and interest income were largely unchanged compared to the prior year quarter.
On an annual basis, other income for the twelve months ended December 31, 2008 was $5.8 million as compared to other expense of $6.4 million for the twelve months ended December 31, 2007. The $12.2 million change in other income resulted primarily from a positive variance of $13.2 million in foreign exchange gains partially offset by a $1.2 million increase in the non-cash charge on our interest rate swaps. Both interest expense and interest income were lower primarily due to the cyclical market trend of reductions in interest rates.
Taxes
Income tax expense in the December 2008 quarter was $11.0 million or a 46% effective tax rate, compared to an expense of $3.9 million, or a 207% effective tax rate in the prior year quarter. The tax expense cost and high effective rates in both quarters were due to losses in tax jurisdictions for which we received no tax benefit and by income in tax jurisdictions in which we accrued tax expense.
Net Income (Loss) and Diluted Earnings Per Share
Net income for the December 2008 quarter was $12.9 million compared to net loss of $2.0 million during the same period last year, an increase of $14.9 million as a result of the factors described above.
Earnings per share for the quarter ended December 31, 2008 was $0.37 per diluted share compared to a loss of $(0.06) per diluted share during the same period last year.
Earnings per share for the twelve months ended December 2008 was $0.30 per diluted share compared to a loss of $(0.38) per diluted share for the twelve month period. The $0.68 improvement in earnings per share was due to the stronger business performance in 2008 as compared to 2007.
Diluted Weighted Average Shares Outstanding
Total diluted weighted average shares outstanding were 34.6 million for the quarter and 34.8 million for the twelve months ended December 31, 2008 as compared to 35.7 million shares outstanding for the quarter and 36.6 million for the twelve months ended December 31, 2007.
2009 Guidance
ACI is guiding on three metrics for calendar year 2009. We currently expect GAAP Revenue to achieve a range of $415-425 million, Sales of $450-460 million and GAAP Operating Income of $35-40 million.
About ACI Worldwide, Inc.
ACI Worldwide is a leading provider of electronic payments software and services to major banks, retailers and processors around the world. The company's solutions enable online payment processing, online banking, fraud prevention and detection, and back office services such as settlement, account management, card management and dispute processing. ACI solutions provide market-leading levels of reliability, manageability and scale to over 800 customers in 88 countries. Visit ACI Worldwide at www.aciworldwide.com.
Regulatory Filings
As explained in the company's February 17, 2009 press release, the company determined that $1.9 million of revenue recognized in its March 31, 2008 quarter for a software project should have been deferred until further project milestones were achieved. Subject to completion of the review of that matter, ACI will file an amended Form 10-Q for the quarter ended March 31, 2008 containing restated consolidated financial statements correcting this error. At that time, ACI also intends to amend its second and third quarter 2008 reports on Form 10-Q to report year-to-date data reflecting the error and to file its 2008 annual report on Form 10-K.
The information in this press release is subject to change based upon the final findings of that review and the review of the restated financial statements by the company's independent registered public accounting firm. Until those reviews are completed, there is a risk that additional information may arise that would require the company to make adjustments beyond those previously disclosed.
Non GAAP Financial Measures
ACI is presenting operating free cash flow, which is defined as net cash provided (used) by operating activities, excluding cash payments associated with the cash settlement of stock options, cash payments associated with one-time employee related actions, less capital expenditures and plus or minus net proceeds from IBM. 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 (used) 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. We also believe that this measure can assist investors in comparing our performance to that of other companies on a consistent basis without regard to certain items, which do not directly affect our ongoing cash flow.
Quarter Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
----------------- -----------------
Net cash provided by
operating activities $ 31.6 $ 12.1 $ 77.8 $ 37.9
Selected non-recurring
items:
Net after tax cash
payments associated
with employee-related
activities 2.0 2.7 3.5 4.1
Net after tax cash
payments associated
with corporate jet
lease termination -- 0.8 -- 0.8
Net after tax cash
payments associated
with early termination
of Watford facility
lease -- -- 0.6 --
Net after tax cash
payments associated
with stock option cash
settlement -- -- -- 8.4
Less capital expenditures (0.7) (3.9) (12.0) (7.7)
Less alliance technical
enablement expenditures (2.0) -- (6.3) --
Proceeds from alliance
agreement 0.2 9.3 1.5 9.3
----------------- -----------------
Operating Free Cash Flow $ 31.1 $ 21.1 $ 65.1 $ 52.8
----------------- -----------------
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 of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business.
ACI also includes backlog estimates which are all software license fees, maintenance fees and services 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 and facilities management 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 for 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.
The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
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 presentation include, but are not limited to, statements regarding the: (a) expectations regarding the Company's belief that sales of its products should not be unduly affected by the macroeconomic climate as the Company's solutions enhance the productivity of bank processing; (b) expectations that it is critical for bank customers in a credit-constrained environment to achieve further productivity improvements; (c) expectations and assumptions regarding sales, revenues, operating income and (d) the company's expectation regarding the filing of restated Forms 10-Q for the first three quarters of 2008 and the filing of the company's annual report on Form 10-K.
Forward-looking statements can be affected by the judgments and estimates underlying such assumptions or by known or unknown risks and uncertainties. Many of these factors will be important in determining our actual future results. Consequently, no forward-looking statement can be guaranteed. Actual future results may vary materially from those expressed or implied in any forward-looking statements, and our business, financial condition and results of operations could be materially and adversely affected. In addition, we disclaim any obligation to update any forward-looking statements after the date of this press release, except as required by law. 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, risks related to the restatement of our financial statements, general economic downturn, demand for our products, increased competition, the accuracy of backlog estimates, risks from operating internationally, our alliance with IBM, our outsourcing agreement with IBM, the protection of our intellectual property, volatility in our stock price, the performance of our strategic product, BASE24-eps, changes in the financial services industry, our tax positions, the complexity of our products and the risk that they may contain hidden defects, future acquisitions and investments, our offshore software development activities, litigation, security breaches or computer viruses, governmental regulations and industry standards, our compliance with privacy regulations, system failures, our restructuring plan, material weaknesses in our internal control over financial reporting, the maturity of certain legacy retail payment products, restrictions and other financial covenants in our credit facility, head-count reductions, and volatility and disruption of the capital and credit markets. 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 subsequent reports on Forms 10-Q and 8-K.
ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
Dec. 31, Sept. 30, Dec. 31, Sept. 30,
2008 2008 2007 2007
--------- --------- --------- ---------
ASSETS
Current assets
Cash and cash
equivalents $ 112,966 $ 94,341 $ 97,011 $ 60,794
Billed
receivables, net 77,738 79,742 87,932 70,384
Accrued
receivables 17,412 16,697 11,132 11,955
Deferred income
taxes 12,507 4,238 5,824 7,088
Recoverable
income taxes 3,140 9,998 6,336 3,852
Prepaid expenses 9,483 10,991 9,803 10,572
Other current
assets 8,800 8,249 8,399 7,233
--------- --------- --------- ---------
Total current
assets 242,046 224,256 226,437 171,878
--------- --------- --------- ---------
Property, plant
and equipment,
net 19,421 20,355 19,503 19,356
Software, net 29,438 28,805 31,430 31,764
Goodwill 199,986 204,560 206,770 205,715
Other intangible
assets, net 30,347 32,799 38,088 39,685
Deferred income
taxes 17,397 31,281 30,530 24,315
Other assets 14,207 16,270 17,700 14,028
--------- --------- --------- ---------
TOTAL ASSETS $ 552,842 $ 558,326 $ 570,458 $ 506,741
========= ========= ========= =========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Current
liabilities
Accounts payable $ 16,047 $ 12,291 $ 16,351 $ 14,677
Accrued employee
compensation 19,955 22,532 22,659 22,625
Deferred revenue 99,921 105,370 115,519 97,042
Income taxes
payable 78 -- -- 2,251
Alliance
agreement
liability 6,195 5,404 9,331 --
Accrued and other
current
liabilities 24,068 20,261 22,992 17,925
--------- --------- --------- ---------
Total current
liabilities 166,264 165,858 186,852 154,520
--------- --------- --------- ---------
Deferred revenue 24,296 23,262 27,253 30,280
Note payable
under credit
facility 75,000 75,000 75,000 75,000
Deferred income
taxes 2,091 3,393 3,245 3,265
Alliance
agreement
noncurrent
liability 37,327 40,706 -- --
Other noncurrent
liabilities 34,023 33,791 37,069 18,664
--------- --------- --------- ---------
Total liabilities 339,001 342,010 329,419 281,729
--------- --------- --------- ---------
Commitments and
contingencies
Stockholders'
equity
Preferred Stock -- -- -- --
Common stock 204 204 204 204
Common stock
warrants 24,003 24,003 24,003 --
Treasury stock (147,808) (148,807) (140,320) (140,340)
Additional
paid-in capital 302,237 302,549 311,108 312,642
Retained earnings 58,468 46,971 47,886 53,226
Accumulated other
comprehensive
income (loss) (23,263) (8,604) (1,842) (720)
--------- --------- --------- ---------
Total
stockholders'
equity 213,841 216,316 241,039 225,012
--------- --------- --------- ---------
TOTAL LIABILITIES
AND STOCKHOLDERS'
EQUITY $ 552,842 $ 558,326 $ 570,458 $ 506,741
========= ========= ========= =========
The financial information for the twelve months ended December 31,
2007 has been derived by combining the results of the four quarters
ended March 31, 2007, June 30, 2007, September 30, 2007 and
December 31, 2007.
ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenues:
Software license fees $ 46,797 $ 46,266 $169,210 $154,566
Maintenance fees 31,748 32,167 130,015 124,671
Services 30,666 22,849 118,428 94,974
-------- -------- -------- --------
Total revenues 109,211 101,282 417,653 374,211
-------- -------- -------- --------
Expenses:
Cost of software license fees 9,291 10,214 45,487 42,240
Cost of maintenance and
services 26,891 24,689 124,744 99,147
Research and development 9,256 16,411 45,896 56,514
Selling and marketing 15,990 20,673 74,028 72,803
General and administrative 28,211 26,443 105,785 103,201
-------- -------- -------- --------
Total expenses 89,639 98,430 395,940 373,905
-------- -------- -------- --------
Operating income 19,572 2,852 21,713 306
Other income (expense):
Interest income 678 763 2,609 3,960
Interest expense (1,460) (1,389) (5,013) (6,573)
Other, net 5,172 (334) 8,247 (3,781)
-------- -------- -------- --------
Total other income
(expense) 4,390 (960) 5,843 (6,394)
-------- -------- -------- --------
Income (loss) before income
taxes 23,962 1,892 27,556 (6,088)
Income tax expense 11,024 3,908 16,974 7,680
-------- -------- -------- --------
Net income (loss) $ 12,938 $ (2,016) $ 10,582 $(13,768)
======== ======== ======== ========
Earnings (loss) per share
information
Weighted average shares
outstanding
Basic 34,433 35,700 34,498 36,559
Diluted 34,610 35,700 34,795 36,559
Earnings (loss) per share
Basic $ 0.38 $ (0.06) $ 0.31 $ (0.38)
Diluted $ 0.37 $ (0.06) $ 0.30 $ (0.38)
The financial information for the twelve months ended December 31,
2007 has been derived by combining the results of the four quarters
ended March 31, 2007, June 30, 2007, September 30, 2007 and
December 31, 2007.
ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
For the Twelve Months Ended
December 31,
------------------------
2008 2007
-------- --------
Cash flows from operating activities:
Net income (loss) $ 10,582 $(13,768)
Adjustments to reconcile net income
(loss) to net cash flows from operating
activities
Depreciation 6,506 6,017
Amortization 15,544 14,828
Tax expense of intellectual property
shift 1,942 2,025
Amortization of debt financing costs 336 336
Gain on reversal of asset retirement
obligation (949) (386)
Gain on transfer of assets under
contractual obligations (219) --
(Gain) loss on disposal of assets 290 (65)
Change in fair value of interest
rate swaps 5,800 4,552
Deferred income taxes 4,739 (9,231)
Stock-based compensation expense 7,888 5,816
Tax benefit of stock options exercised
and cash settled 357 1,019
Changes in operating assets and
liabilities, net of impact of
acquisitions:
Billed and accrued receivables, net (5,401) (15,971)
Other current assets (187) (1,796)
Other assets 617 (3,116)
Accounts payable (2,494) 2,189
Accrued employee compensation 51 910
Proceeds from alliance agreement 40,935 --
Accrued liabilities (2,609) 4,357
Current income taxes 2,130 3,109
Deferred revenue (7,012) 36,963
Other current and noncurrent
liabilities (1,020) (207)
-------- --------
Net cash flows from operating
activities 77,826 37,581
-------- --------
Cash flows from investing activities:
Purchases of property and equipment (7,021) (5,363)
Purchases of software and distribution
rights (4,936) (2,334)
Sales of marketable securities -- 2,500
Proceeds from transfer of assets under
contractual arrangement -- 500
Alliance technical enablement expenditures (6,328) --
Proceeds from alliance agreement, net of
common stock warrants 1,498 9,330
Acquisition of businesses, net of
cash acquired (169) (10,869)
Other -- 6
-------- --------
Net cash flows from investing
activities (16,956) (6,230)
-------- --------
Cash flows from financing activities:
Proceeds from issuance of common stock 1,704 279
Proceeds from issuance of common
stock warrants -- 24,003
Payments for cash settlement of
stock options 285
Proceeds from exercises of stock options 3,841 625
Excess tax benefit of stock options
exercised 142 123
Purchases of common stock (30,063) (46,348)
Payments on debt and capital leases (3,311) (2,505)
-------- --------
Net cash flows from financing
activities (27,687) (23,538)
-------- --------
Effect of exchange rate fluctuations
on cash (17,228) (702)
-------- --------
Net decrease in cash and cash equivalents 15,955 7,111
Cash and cash equivalents, beginning
of period 97,011 89,900
-------- --------
Cash and cash equivalents, end of period $112,966 $ 97,011
======== ========
The financial information for the twelve months ended December 31,
2007 has been derived by combining the results of the four quarters
ended March 31, 2007, June 30, 2007, September 30,2007 and
December 31, 2007.
CONTACT: ACI Worldwide, Inc.
Tamar Gerber, Vice President, Investor Relations &
Financial Communications
646.348.6706
|
| Symbol: |
ACIW |
| Last Trade: |
17.10
(11/20/2009 ET)
|
| Change: |
-0.06
(-0.349648%)
|
| Day's Range: |
16.69 -
17.32 |
| Open: |
16.93 |
| Previous Close: |
17.16 |
| TSO: |
34,012,000 |
| Market Cap: |
581.61M |
| Day's Volume: |
109,767 |
|
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