ACI Worldwide, Inc. · NASDAQ:ACIW
ACI Worldwide — Q4 2016 Earnings Presentation
26 slides from ACI Worldwide's earnings presentation, Mar 2, 2017
Slide 1: ACI Worldwide Quarterly and Full Year Results December 31, 2016
ACI Worldwide Quarterly and Full Year Results December 31, 2016 March 2, 2017 Exhibit 99.2
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: Year in Review
YEAR IN REVIEW Phil Heasley Chief Executive Officer
Slide 4: 2016 in Review
2016 in Review Accelerating interest in Universal Payments New bookings grew 6% and total bookings up 16% in 2016, CFS and FX adj Significant new logo wins Signed largest contract in company history Divested non-strategic CFS assets Went live with new European data center Providing 2017 guidance
Slide 5: Financial Review
FINANCIAL REVIEW Scott Behrens Chief Financial Officer
Slide 6: Key Takeaways from the Quarter
Key Takeaways from the Quarter Bookings Key Universal Payments contract representing the largest deal in our history Signed three new BASE24-eps deals during the quarter One each in Americas, EMEA and Asia Pacific regions Signed Immediate Payments deal with Rabobank Term extension bookings doubled f
Slide 7: Key Takeaways from the Year
Key Takeaways from the Year Bookings 2016 new bookings up 6% over 2015, FX adjusted and excluding our CFS business Backlog 60-month backlog of $4.0 billion, up $126 million from 2015, after adjusting for FX fluctuations and the sale of our CFS assets Revenue Revenue up 4% over 2015, FX, CFS & PAY.ON
Slide 8: 2017 Guidance
2017 Guidance Guidance 2016 pro forma adjusted to exclude CFS business and reflect fx rate changes New bookings growth expected to be in the upper single digits Revenue and Adjusted EBITDA phasing by quarter consistent with seasonal history Q1 revenue expected to be $215 to $220 million, representin
Slide 9: 2017 Guidance: Other Guidance Assumptions
2017 Guidance Other Guidance Assumptions Interest expense of $36 million and cash interest of $33 million Capital expenditures to be $55-$60 million Depreciation and amortization expected to approximate $105-$110 million Non-cash compensation expense of approximately $36 million Pass through interch
Slide 10: Appendix
UNIVERSAL MC PAYMENTS q APPENDIX
Slide 11: Monthly Recurring Revenue
Monthly Recurring Revenue Monthly Recurring Revenue (millions) Monthly software license fees Maintenance fees Processing services Monthly Recurring Revenue CFS contribution Monthly Recurring Revenue Quarter Ended 176.0_$ Monthly Recurring Revenue (millions) Monthly Software license fees Maintenance
Slide 12: Historic Bookings By Quarter
Historic Bookings By Quarter New Accounts / New Applications 3/31/2014 $170,212 $36,928 $84,974 $48,311 22% 50% 28% 6/30/2014 $234,346 $44,321 $106,056 $83,969 19% 45% 36% 9/30/2014 $250,802 $63,396 $94,071 $93,336 25% 38% 37% 12/31/2014 $391,120 $99,972 $172,387 $118,761 26% 44% 30% 3/31/2015 $210,
Slide 13: New Bookings by Channel
New Bookings Channel Qtr Ended Dec 16 Qtr Ended Dec 15 % Growth or Decline Americas $168,885 $178,855 -5.6% EMEA 80,478 88,564 -9.1% Asia-Pacific 29,088 30,011 -3.1% New Bookings $278,451 $297,429 -6.4% CFS - 24,769 - New Bookings (ex CFS) $278,451 $272,660 2.1% New Bookings
Slide 14: Non-GAAP Operating Income
Non-GAAP Operating Income (Loss) Non-GAAP Operating Income (millions) 2016 2015 Operating income $221.1 $127.9 Plus: Deferred revenue fair value adjustment 0.1 0.7 Gain on sale of CFS assets (151.5) - Employee related actions 6.6 6.3 Facilities related actions 5.2 - Significant transaction related e
Slide 15: Adjusted EBITDA – Q4
Adjusted EBITDA – Q4 Adjusted EBITDA (millions) 2016 2015 Net income $66.7 $43.8 Plus: Income tax expense (benefit) 43.2 18.9 Net interest expense, net 10.1 10.1 Net other expense (income) 0.3 1.3 Depreciation expense 6.5 5.7 Amortization expense 21.2 20.8 Non-cash compensation expense 9.8 8.3 Adjus
Slide 16: Adjusted EBITDA – Year
Adjusted EBITDA – Year Adjusted EBITDA (millions) 2016 2015 Net income $129.5 $85.4 Plus: Income tax expense 56.0 27.9 Net interest expense 39.6 41.0 Net other expense (income) (4.1) (26.4) Depreciation expense 22.6 21.7 Amortization expense 80.9 75.8 Non-cash compensation expense 43.6 18.4 Adjusted
Slide 17: Operating Free Cash Flow
Operating Free Cash Flow * Tax effected at 35% Reconciliation of Operating Free Cash Flow (millions) 2016 2015 Net cash provided by operating activities $99.8 $183.1 Net after-tax payments associated with employee-related actions 5.2 5.0 Net after-tax payments associated with facility closures 0.6 0
Slide 18: 60-Month Backlog
60-Month Backlog Quarter Ended Backlog 60-Month (millions) December 31, December 31, 2016 2015 Americas $2,872 $3,086 EMEA 831 898 Asia/Pacific 313 318 Backlog 60-Month $4,016 $4,302 Deferred Revenue $155 $171 Other 3,861 4,131 Backlog 60-Month $4,016 $4,302
Slide 19: Backlog as a Contributor of Quarterly Revenue
Backlog as a Contributor of Quarterly Revenue Backlog from monthly recurring revenues and project go-lives continues to drive current quarter GAAP revenue Revenue from current quarter sales consistent with prior quarters Revenue Qtr Ended Dec 16 Qtr Ended Dec 15 % Growth or Decline Revenue from Back
Slide 20: EPS Impact of Non-Cash and Significant Transaction Related Items
EPS Impact of Non-Cash and Significant Transaction Related Items
Slide 21: Contract Duration Metric
Contract Duration Metric Represents dollar average remaining contract life (in years) for term license software contracts Excludes perpetual contracts (primarily heritage S1 licensed software contracts) Excludes all hosted contracts as both cash and revenue are ratable over the contract term
Slide 22: 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, significant transaction related expenses, as well as other significant non-cash expenses suc
Slide 23: 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 24: 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 license
Slide 25: 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 26: 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 success of our Universal Payments stra