Acxiom Reports Results for Second Quarter
October 20, 1998 09:05 AM
CONWAY, Ark.--(BUSINESS WIRE)--Oct. 20, 1998--Acxiom(R)
Corporation ACXM reported revenue and earnings today for the second
quarter of its fiscal year ended September 30, 1998. These results
include the combined operations of Acxiom and May & Speh following
the completion of the merger which was effective September 17, 1998.
Consolidated revenues for the second quarter ended September 30,
1998 were $174,358,000, up 28% from revenues of $135,876,000 for
the same quarter a year ago. Before special charges, operating income
for the quarter was $25,678,000, an increase of 27% compared to
operating income in the previous year's second quarter of $20,148,000.
Special charges included in the operating loss for the quarter were
$109,372,000 related to merger and integration charges associated
with the May & Speh merger and the write down of other impaired
assets. The net loss including special charges for the quarter was
$61,160,000 ($.82 diluted loss per share) compared to net earnings of
$12,207,000 ($.15 diluted earnings per share) for the previous year's
second quarter. For the six months ended September 30, 1998,
revenues were $333,168,000, up 28% over the $259,828,000 reported
for the same period in the previous year. Operating income before
special charges for the six months was $45,389,000, an increase of
29% compared to operating income in the previous year's six months of
$35,063,000. The net loss after special charges taken in the second
quarter was $49,804,000 ($.67 diluted loss per share), compared to
earnings in the six months ended September 30, 1997 of $20,607,000
($.26 per diluted share). "Each of our operating divisions reported
strong results," said Charles D. Morgan, Chairman and Company
Leader. "Excluding the special charges in the quarter, earnings per
diluted share would have been $.18 for the quarter, meeting analysts'
expectations and $.32 for the six months, an increase of 20% and
23%, respectively. During the quarter, we completed the acquisition of
May & Speh and we are very excited about the long-term prospects of
integrating May & Speh into Acxiom. Also during the quarter, the
Acxiom Data Network(SM) moved from limited availability to general
availability and is continuing to create a lot of excitement in the
marketplace as we now have 115 customers connected to the Acxiom
Data Network." Revenue for each of the five operating divisions
including May & Speh showed strong growth with Services Division
revenue of $46.9 million, up 36% over the prior year, Alliances Division
revenue of $43.4 million, up 28%, May & Speh Division revenue of
$36.4 million, up 41%, International Division revenue of $9.9 million, up
27%, and Data Products Division revenue of $37.8 million, up 12%. It
should be noted that the results for the Data Products Division last year
included the results for the Pro CD retail business sold to infoUSA Inc.
in August, 1997 and a license for the consumer file to infoUSA Inc. at
the same time. Adjusting for these items, the Data Products Division
revenue grew 30% over the year ago quarter. On October 1, 1998
Acxiom announced a letter of intent to acquire Computer Graphics of
Arizona, Inc. based in Phoenix, Arizona. Computer Graphics is a
privately-held computer service bureau principally serving financial
services direct marketers. It is expected that this transaction will be
accounted for as a pooling of interests and that it will close in
December of 1998. Computer Graphics is expected to contribute over
$25 million in annual revenues in the first year. Acxiom provides a wide
spectrum of data products, data integration services, mailing list
services, modeling & analysis, and information technology outsourcing
services, as well as data warehousing and decision support services to
major U.S. and international firms. Founded in 1969, Acxiom is
headquartered in Conway, Arkansas, with operations throughout the
United States and in the United Kingdom and France.
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended
September 30,
---------------------------
1998 1997
---------------------------
Revenue 174,358,000 135,876,000
Operating costs and expenses:
Salaries and benefits 68,998,000 48,864,000
Computer, communications and
other equipment 27,933,000 22,009,000
Data costs 27,073,000 21,589,000
Other operating costs
and expenses 24,676,000 23,266,000
Special charges 109,372,000 -
----------- ----------
Total operating cost
and expenses 258,052,000 115,728,000
----------- -----------
Income (loss) from operations (83,694,000) 20,148,000
----------- -----------
Other income (expense):
Interest expense (4,323,000) (2,166,000)
Other, net 2,367,000 1,600,000
--------- ----------
(1,956,000) (566,000)
--------- ----------
Earnings (loss) before income taxes (85,650,000) 19,582,000
Income taxes (24,490,000) 7,375,000
---------- ----------
Net earnings (loss) (61,160,000) 12,207,000
========== ==========
Earnings (loss) per share:
Basic (0.82) 0.17
========= ==========
Diluted (0.82) 0.15
========= ==========
ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Six Months Ended
September 30,
---------------------------
1998 1997
---------------------------
Revenue 333,168,000 259,828,000
Operating costs and expenses:
Salaries and benefits 130,186,000 95,577,000
Computer, communications and
other equipment 52,549,000 42,628,000
Data costs 52,562,000 42,584,000
Other operating costs
and expenses 52,482,000 43,976,000
Special charges 109,372,000 -
----------- ----------
Total operating cost
and expenses 397,151,000 224,765,000
----------- -----------
Income (loss) from operations (63,983,000) 35,063,000
---------- ----------
Other income (expense):
Interest expense (8,399,000) (4,429,000)
Other, net 4,857,000 2,429,000
--------- ----------
(3,542,000) (2,000,000)
--------- ----------
Earnings (loss) before income taxes (67,525,000) 33,063,000
Income taxes (17,721,000) 12,456,000
---------- ----------
Net earnings (loss) (49,804,000) 20,607,000
========== ==========
Earnings (loss) per share:
Basic (0.67) 0.29
========== ==========
Diluted (0.67) 0.26
========== ========== |
