ACXIOM REPORTS SECOND QUARTER RESULTS
CONWAY, Ark.--(BUSINESS WIRE)--Oct. 13, 1997--Acxiom(R) Corporation
(Nasdaq:ACXM) reported record revenue and earnings today for the second
quarter ended September 30, 1997.
Consolidated revenues for the quarter were $109,966,000, up 13% over the
$97,547,000 reported for the quarter ended September 30, 1996. Net earnings
were $8,365,000, ($.14 per share), up 34% from the earnings in the previous
year of $6,263,000 ($.11 per share). Per-share amounts are adjusted for a
2-for-1 stock split which was effective in November 1996.
Revenues for the Services, Alliances, International and Data Products Divisions
increased 8%, 15%, 10% and 17% respectively. Adjusting for pass-through
revenues recorded in the year-earlier quarter, the Alliances Division and
consolidated revenues actually increased 35% and 18%, respectively, over the
prior year.
For the six months ended September 30, 1997, revenues were $210,293,000,
up 10% over the $191,500,000 reported for the same period in the previous
year. Net earnings were $13,678,000 ($.23 per share), up 30% from earnings
in the six months ended September 30, 1996 of $10,508,000 ($.18 per share).
''We are pleased with our second quarter operating results,'' said Charles D.
Morgan, Company Leader. ''All of our operating divisions showed revenue
gains over the prior year and we achieved our 25% earnings per share growth
target. We also are pleased with the number of new business wins during the
quarter.''
New contracts signed during the quarter include data warehouse contracts with
The Petersen Companies, Inc., and a major credit card issuer. Direct
Media(TM) also was awarded over a dozen list management accounts
including Hearst Properties, Redbook, Cosmopolitan, Good Housekeeping
and Popular Mechanics. In the United Kingdom, new business wins included
an additional contract with American Express and new projects with Britannia
Building Society, and Cable and Wireless PLC.
Also, the Acxiom Data Products Division announced several items last week.
Freddie Mac and DataQuick(R) announced the first truly national collateral
valuation service called Home Value Estimator(SM). The new product
combines Freddie Mac's Home Value(SM) models and DataQuick's property
data and will be delivered to customers through DataQuick's on-line network
and the Internet. Separately, a data delivery alliance with IBM's Business
Discovery Solutions (''BDS'') was announced. Acxiom will provide
(IB)Consumer(R) Infobase marketing data to BDS, a suite of applications that
help businesses use data from customers and products to better understand
behavior and strengthen customer relationships. And, lastly, several new
InfoBase data products were announced including consumer and business
mailing list products together with business data enhancement products.
Subsequent to September 30, 1997, Acxiom acquired 100% ownership of
MultiNational Concepts, Ltd. and Catalog Marketing Services, Ltd. (d/b/a Shop
the World by Mail), entities under common control. Total consideration for the
acquisition was $4.6 million (net of cash acquired) and other cash
consideration contingent on the future performance of the companies.
MultiNational Concepts is the largest and leading international mailing list and
database maintenance provider for consumer catalogers interested in
developing foreign markets. Shop the World by Mail (''STW'') is a global
industry leader in cooperative customer acquisition programs. STW produces
an international catalog of catalogs whereby end-customers in over 60
countries can order catalogs from around the world.
As previously announced, on September 4, 1997, the Company completed the
sale of certain assets of its Pro CD, Inc. subsidiary to American Business
Information, Inc. (''ABI''). ABI acquired the retail and direct marketing operations
of Pro CD, along with a license for certain Pro CD technologies together with
compiled telephone book data. Acxiom received a license to ABI's business
database to use as one of multiple data sources for Acxiom's data products.
The net cash proceeds realized by Acxiom from the transaction were
$18,000,000.
Acxiom provides a wide spectrum of data products, data integration services,
and mailing list services, as well as data warehousing and decision support
services to major firms in the United States and United Kingdom. Acxiom is
headquartered in Conway, Arkansas, with operations throughout the United
States and the United Kingdom.
Home Value Estimator is a Service Mark of Freddie Mac.
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
For the Three Months Ended
September 30, 1997
--------------------------------
1997 1996
--------------------------------
Revenue 109,966,000 97,547,000
Operating costs and expenses:
Salaries and benefits 40,518,000 35,038,000
Computer, communications and
other equipment 15,561,000 15,572,000
Data costs 21,201,000 17,871,000
Other operating costs and expenses 18,578,000 16,682,000
------------------------------
Total operating costs and expenses 95,858,000 85,163,000
------------------------------
Income from operations 14,108,000 12,384,000
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Other income (expense):
Interest expense (1,470,000) (906,000)
Other, net 746,000 (1,294,000)
------------------------------
(724,000) (2,200,000)
------------------------------
Earnings before income taxes 13,384,000 10,184,000
Income taxes 5,019,000 3,921,000
------------------------------
Net earnings 8,365,000 6,263,000
==============================
Earnings per share 0.14 0.11
=============================
59,714,000 59,086,000
=============================
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
For the Six Months Ended
September 30,
1997 1996
Revenue 210,293,000 191,500,000
Operating costs and expenses:
Salaries and benefits 78,497,000 70,570,000
Computer, communications and
other equipment 30,490,000 28,393,000
Data costs 41,889,000 36,652,000
Other operating costs and expenses 35,094,000 34,290,000
------------ ------------
Total operating costs and expenses 185,970,000 169,905,000
------------ ------------
Income from operations 24,323,000 21,595,000
------------ ------------
Other income (expense):
Interest expense (3,004,000) (1,724,000)
Other, net 566,000 (2,786,000)
------------
(2,438,000) (4,510,000) ------------ ------------
Earnings before income taxes 21,885,000 17,085,000
Income taxes 8,207,000 6,577,000
------------ ------------
Net earnings 13,678,000 10,508,000
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Earnings per share 0.23 0.18
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Weighted average shares outstanding 59,454,000 58,796,000
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