ACI Worldwide, Inc. · NASDAQ:ACIW
ACI Worldwide — Q2 2015 Earnings Presentation
24 slides from ACI Worldwide's earnings presentation, Jul 30, 2015
Slide 1: Quarterly Results June 30, 2015
Quarterly Results June 30, 2015 ACI Worldwide July 30, 2015
Slide 2: Safe Harbor For Forward-Looking Statements
Private Securities Litigation Reform Act of 1995 Safe Harbor For Forward-Looking Statements This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward-looking statements are made pursuant to safe harbor provisions
Slide 3: Quarterly Overview
QUARTERLY OVERVIEW Phil Heasley Chief Executive Officer
Slide 4: Q2 2015 in Review
Q2 2015 in Review • Net new bookings up 18% • Large customer commitment to UP • Entered new mortgage processing vertical • Signed important renewals, including IRS • Linux-based BASE24 eps launch by year end • Reiterating 2015 guidance MEETS THE CHALLENGE OF CHANGE 4
Slide 5: Financial Review
FINANCIAL REVIEW Scott Behrens Chief Financial Officer
Slide 6: Key Takeaways from the Quarter
Key Takeaways from the Quarter • Sales Bookings ̶ Q2 new sales bookings up 18% from Q2 2014, up 9% excluding impact of ReD acquisition ̶ Full year SNET growth tracking to high single digits • Backlog ̶ 12-month backlog of $883 million, down $11 million from Q1 2015, after adjusting for fx fluctuatio
Slide 7: 2015 Guidance
2015 Guidance 2015 Non‐GAAP Key Metrics Guidance Non‐GAAP Revenue 1,040 ‐ 1,070 Adjusted EBITDA 280 ‐ 290 $s in millions Guidance - Reaffirming full year guidance. - Represents 3%-6% organic growth after adjusting for foreign currency fluctuations - Sales, net of term extensions (SNET) growth in the
Slide 8: Appendix
AAC events APPENDIX
Slide 9: Monthly Recurring Revenue
Monthly Recurring Revenue Quarter Ended Monthly Recurring Revenue (millions) June 30, 2015 2014 Monthly Software license fees $18.6 $23.0 Maintenance fees 60.1 62.3 Processing services 115.4 105.6 Monthly Recurring Revenue $194.1 $190.9 MEETS THE CHALLENGE OF CHANGE 9
Slide 10: Historic Sales Bookings By Quarter
Historic Sales Bookings By Quarter Sales Mix by Category Add-on Business inc. Capacity Total Economic New Accounts / Upgrades & Quarter-End Value of Sales New Applications Services Term Extension 3/31/2013 $111,588 $5,778 $70,736 $35,074 5% 63% 31% 6/30/2013 $180,107 $33,717 $95,461 $50,929 19% 53%
Slide 11: Sales Bookings, Net of Term Extensions (SNET)
Sales Bookings, Net of Term Extensions (SNET) Sales Net of Term Extensions Qtr Ended Qtr Ended % Growth or Channel Jun 15 Jun 14 Decline Americas $95,134 $97,188 -2% EMEA 59,244 36,361 63% Asia-Pacific 22,595 16,827 34% Total Sales (Net of Term Ext.) $176,973 $150,377 18% MEETS THE CHALLENGE OF CHAN
Slide 12: Non-GAAP Operating Income
Non-GAAP Operating Income Quarter Ended Non-GAAP Operating Income (millions) June 30, 2015 2014 Operating income $23.7 $26.7 Plus: Deferred revenue fair value adjustment 0.2 0.5 Employee related actions 1.4 1.4 Significant transaction related expenses 3.4 2.1 Non-GAAP Operating Income $ 28.7 $ 30.7
Slide 13: Adjusted EBITDA
Adjusted EBITDA Quarter Ended Adjusted EBITDA (millions) June 30, 2015 2014 Net Income $27.1 $11.2 Plus: Income tax expense 5.8 2.4 Net interest expense 10.4 9.2 Net other expense (income) (19.7) 3.9 Depreciation expense 5.3 5.2 Amortization expense 18.3 15.3 Non-cash compensation expense 5.4 4.4 Ad
Slide 14: Operating Free Cash Flow
Operating Free Cash Flow Reconciliation of Operating Free Cash Flow (millions) Quarter Ended June 30, 2015 2014 Net cash provided by operating activities $0.8 $33.1 Payments associated with acquired opening balance sheet - 0.3 liabilties Net after-tax payments associated with employee-related 0.4 0.
Slide 15: 60-Month Backlog
60-Month Backlog Quarter Ended Backlog 60-Month (millions) June 30, June 30, 2015 2014 Americas $3,013 $2,874 EMEA 840 765 Asia/Pacific 295 285 Backlog 60-Month $4,148 $3,924 Deferred Revenue $182 $190 Other 3,966 3,734 Backlog 60-Month $4,148 $3,924 MEETS THE CHALLENGE OF CHANGE 15
Slide 16: Backlog as a Contributor of Quarterly Revenue
Backlog as a Contributor of Quarterly Revenue Revenue Qtr Ended Qtr Ended % Growth or Revenue Jun 15 Jun 14 Decline Revenue from Backlog $248,815 $244,240 1.9% Revenue from Sales 17,007 10,568 60.9% Total Revenue $265,822 $254,808 4.3% Revenue from Backlog 94% 96% Revenue from Sales 6% 4% • Backlog
Slide 17: EPS Impact of Non-Cash and Significant Transaction Related Items
EPS Impact of Non-Cash and Significant Transaction Related Items EPS impact of non-cash and signficant transaction related items Quarter Ended (millions) June 30, 2015 2014 $ in Millions $ in Millions EPS Impact EPS Impact (Net of Tax) (Net of Tax) Significant transaction related expenses $ 0.03 $ 3
Slide 18: Contract Duration Metric
Contract Duration Metric 5.00 4.50 4.00 3.50 2.85 2.71 2.56 2.68 2.62 3.00 2.40 2.46 2.41 2.47 2.53 2.52 2.60 2.54 2.61 2.50 2.00 1.50 1.00 0.50 0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 • Represents dollar average remaining
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries related to the acquisition of Online Resources Corporation and significant transaction relate
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI is also presenting operating free cash flow, which is defined as net cash provided by operating activities, plus payments associated with acquired opening balance sheet liabilities, net after-tax payments associated with employee- related actions and facility closures
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 licen
Slide 22: Forward-Looking Statements
Forward-Looking Statements This presentation 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 “belie
Slide 23: Forward-Looking Statements
Forward-Looking Statements 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, increased competition, the performance of our strategic product, U
Slide 24: AAC events
AAC events