Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Q3 2012 Earnings Presentation
30 slides from Aci Worldwide's earnings presentation, Nov 8, 2012
Slide 1: September 30, 2012 Quarterly Results Presentation
ACI’s software underpins electronic payments throughout retail and wholesale banking, and commerce all the time. September 30, 2012 Quarterly Results Presentation November 8, 2012
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: Q3 2012 in Review
Q3 2012 in Review • Strong sales quarter across all geographies with $192 million in Q3 sales bookings − Driven by Sales, net of term extensions, of $126M, up 69% over prior year and 13% over prior quarter • Repurchased approximately 312,000 shares in the open market for approximately $13.8 million
Slide 5: Financial Review
Financial Review Scott Behrens Chief Financial Officer
Slide 6: Key Takeaways from the Quarter
Key Takeaways from the Quarter Strong Q3 Sales Bookings • Strong sales growth, up $77.2 million or 67% over prior year quarter, up 23% sequentially • S1 Acquisition contributed approximately $44.5 million of sales • Sales, net of term extensions, increased $51 million or 69% over prior year quarter
Slide 7: Key Takeaways from the Quarter (cont)
Key Takeaways from the Quarter (cont) Non-GAAP Operating Income & Adjusted EBITDA • Non-GAAP Operating Income of $17.7 million • Non-GAAP Adjusted EBITDA of $33.6 million Debt & Liquidity • Ended Q3 with $87.7 million in cash • Repurchased shares and settled outstanding warrants for combined $43.4 m
Slide 8: Reaffirmation of Full Year Guidance
Reaffirmation of Full Year Guidance Reaffirming full year guidance • Q4 backlog to contribute approximately 90% of expected Q4 revenue • Q4 sales bookings expected to approximate $310M - Sales, net of term extensions, to approximate $230M • Full year sales expected to approximate $770M -Full year sa
Slide 9: Preliminary 2013 Outlook
Preliminary 2013 Outlook • 2013 models should start with normalized 2012 as the base line (see table below) 2012 Add Back Add Back Normalized Non-GAAP + 1.5 months + Incremental = Full Year Guidance S1 Activity Synergies 2012 Non-GAAP Revenue* $706 - $716 $ 27 $ - $733 - $743 Non-GAAP Operating Inco
Slide 10: Appendix
J trusted globally
Slide 11: 2012 Guidance Summary
2012 Guidance Summary 2012 Add Back 2012 Add Back 2012 GAAP + One-time = Prior + Def Rev = Non-GAAP Guidance Expenses Guidance Haircut Guidance Revenue* $683 - $693 $ - $683 - $693 $ 23 $706 - $716 Operating Income* $68 - $73 $ 31 $99 - $104 $ 23 $122 - $127 Adjusted EBITDA* $134 - $139 $ 31 $165 -
Slide 12: Historic Sales By Quarter 2010-2012
Historic Sales By Quarter 2010-2012 Sales Mix by Category Add-on Business Total Economic Value of New Accounts / New inc. Capacity Quarter-End Sales Applications Upgrades & Term Extension 3/31/2010 $81,142 $5,758 $35,066 $40,318 7% 43% 50% 6/30/2010 $107,985 $1,224 $68,474 $38,287 1% 63% 35% 9/30/20
Slide 13: Sales By Region by Geography and Type
Sales By Region by Geography and Type Total Sales Qtr Ended Qtr Ended % Growth or Channel Sep 12 Sep 11 Decline Americas $91,689 $67,735 35.4% EMEA 60,856 40,239 51.2% Asia-Pacific 39,766 7,115 458.9% Total Sales $192,310 $115,089 67.1% Sales Type Qtr Ended Qtr Ended % Growth or Sales Type Sep 12 Se
Slide 14: Backlog as a Contributor of Quarterly Revenue
Backlog as a Contributor of Quarterly Revenue Revenue Qtr Ended Qtr Ended % Growth or Revenue Sep 12 Sep 11 Decline Revenue from Backlog $146,814 $106,842 37.4% Revenue from Sales 8,248 5,307 55.4% Total Revenue $155,062 $112,149 38.3% Revenue from Backlog 95% 95% Revenue from Sales 5% 5% • Backlog
Slide 15: Operating Free Cash Flow ($ millions)
Operating Free Cash Flow ($ millions) Quarter Ended September 30, 2012 2011 Net cash provided by operating activities $5.3 $26.8 Adjustments: Net after-tax payments associated with employee-related actions* 1.3 - Net after-tax payments associated with lease terminations* 0.7 - Net after-tax payments
Slide 16: Q3 Cash Walk ($ millions)
Q3 Cash Walk ($ millions) Beginning Cash (2Q 2012) $149.6 Plus: net cash provided by operating activities* 5.3 Net cash before investing and financing activities 154.9 Cash flow from Investing Activities Less: Capital Expenditures (8.0) Less: Acquisition of Distra (49.8) Net cash from investing acti
Slide 17: 60-Month Backlog ($ millions)
60-Month Backlog ($ millions) Quarter Ended September 30, June 30, September 30, 2012 2012 2011 Americas $1,419 $1,414 $ 894 EMEA 686 653 520 Asia/Pacific 262 239 189 Backlog 60-Month $ 2,367 $ 2,306 $1,603 Deferred Revenue $ 213 $ 204 $ 156 Other 2,154 2,102 1,447 Backlog 60-Month $ 2,367 $ 2,306 $
Slide 18: Revenues by Channel ($ millions)
Revenues by Channel ($ millions) Quarter Ended September 30, 2012 2011 Revenues: United States $69.4 $ 46.5 Americas International 18.4 13.3 Americas $87.8 $ 59.8 EMEA 42.8 38.6 Asia/Pacific 24.5 13.7 Revenues $155.1 $112.1 18
Slide 19: Monthly Recurring Revenue ($ millions)
Monthly Recurring Revenue ($ millions) Quarter Ended September 30, 2012 2011 Monthly Software License Fees $24.7 $23.5 Maintenance Fees 47.6 36.5 Hosting Services 33.0 12.8 Monthly Recurring Revenue $105.3 $72.8 19
Slide 20: Deferred Revenue and Expense ($ millions)
Deferred Revenue and Expense ($ millions) Quarter Ended September 30, June 30, September 30, June 30, 2012 2012 2011 2011 Short Term Deferred Revenue $169.2 $165.1 $123.9 $131.7 Long Term Deferred Revenue 44.2 38.7 32.5 30.0 Total Deferred Revenue $213.4 $203.8 $156.4 $161.7 Total Deferred Expense $
Slide 21: Non-Cash Compensation, Acquisition Intangibles and Software, and Acquisition-Related Expenses
Non-Cash Compensation, Acquisition Intangibles and Software, and Acquisition-Related Expenses Quarter ended Quarter ended September 30, 2012 September 30, 2011 EPS Impact* $ in Millions EPS Impact* $ in Millions Amortization of acquisition- related intangibles $ 0.05 $ 2.1 $ 0.03 $ 1.1 Amortization
Slide 22: Other Income / Expense ($ millions)
Other Income / Expense ($ millions) Quarter Ended September 30, June 30, September 30, June 30, 2012 2012 2011 2011 Interest Income $0.2 $0.2 $0.2 $0.2 Interest Expense ($2.6) ($2.9) ($0.4) ($0.4) FX Gain / Loss ($1.4) ($0.3) ($0.1) $0.3 Other $0.0 $0.0 $0.0 $0.0 Total Other Income (Expense) ($3.8)
Slide 23: Adjusted EBITDA
Adjusted EBITDA Quarter Ended Quarter Ended September 30, 2012 September 30, 2011 Net Income $5.7 $10.5 Income tax expense (benefit) (1.2) 0.5 Net Interest Expense 2.4 0.2 Net Other Expense 1.4 0.1 Depreciation Expense 3.6 2.0 Amortization Expense 9.9 5.2 Non-Cash Compensation Expense 2.6 2.2 Adjust
Slide 24: Non-GAAP Operating Income
Non-GAAP Operating Income Quarter Ended Quarter Ended September 30, 2012 September 30, 2011 Operating Income $8.3 $11.3 Plus: Deferred Revenue 4.9 - Employee-related actions 0.5 - Facility closure costs 3.5 - IT exit costs 0.1 - Other one-time S1-related expenses 0.4 3.4 Non-GAAP Operating Income $1
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our financial results presented on a GAAP basis, we use the non-GAAP measure indicated in the tables, which exclude certain business combination accounting entries and expenses related to the acquisition of S1, as well as other significant non-cash expenses
Slide 26: 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 net after-tax payments associated with employee-related actions and facility disclosures, net after-tax payments associated with IBM IT outsourcing transit
Slide 27: 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 28: 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 29: 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, risks related to the global financial crisis and the continuing de
Slide 30: ACI's software underpins electronic payments
ACI’s software underpins electronic payments throughout retail and wholesale banking, and commerce all the time, without fail. www.aciworldwide.com