Acxiom Corp. (ACXM, Financial) filed Quarterly Report for the period ended 2010-12-31.
Acxiom Corp has a market cap of $1.41 billion; its shares were traded at around $17.53 with a P/E ratio of 24.4 and P/S ratio of 1.3. Acxiom Corp had an annual average earning growth of 8% over the past 10 years.Hedge Fund Gurus that owns ACXM: Jim Simons of Renaissance Technologies LLC, Kenneth Fisher of Fisher Asset Management, LLC, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns ACXM: Richard Aster Jr of Meridian Fund, Columbia Wanger of Columbia Wanger Asset Management, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Jeremy Grantham of GMO LLC.
Services revenue for the nine months ended December 31, 2010 was $669.0 million. This represents a $41.2 million increase, or 6.6% over the prior year same period. On a geographic basis, International services increased $5.6 million, or 8.7%, while US services increased $35.6 million, or 6.3%. International services growth included $8.1 million of incremental revenue related to the MENA and Acxiom Brazil acquisitions. Excluding unfavorable exchange rate movements and acquisition-related revenue, International services decreased approximately $1.0 million. International services were negatively impacted by the loss of a couple of large services contracts in Europe during the last fiscal year. Strong results in Australia and China mitigated the declines in Europe. New IT Services contracts signed over the last year contributed to the US growth. Of the $33.1 million of organic Services growth, $25.3 million was related to Infrastructure Management. By line of business, revenue increases in Multi-channel Marketing Services of $7.0 million or 2.7%, Consulting of $5.6 million or 21.7%, and Infrastructure Management of $25.3 million or 12.4% were offset by a decrease in CDI Services of $7.8 million or 6.7%. CDI Services were negatively impacted by the contract losses in Europe and the US.
Interest expense for the quarter ended December 31, 2010 was $6.0 million compared to $5.7 million a year ago. During the quarter ended December 31, 2009 the Company amended its credit agreement to extend the maturity date on $375 million of the term loan by an additional 2.5 years, and to extend $120 million of the revolving credit agreement for an additional 2.5 years. The $75 million of the original term loan and the $80 million of the revolving credit agreement that were not extended remained on their original maturity schedules. The LIBOR credit spread for the interest rate charged on the extended portion of the agreements increased 1.25%. Although the average balance of the term loan declined approximately $40 million, the average rate increased 70 basis points for the quarter, resulting in higher interest expense. Interest expense for the nine months ended December 31, 2010 was $18.2 million compared to $16.6 million a year ago. Although the average term loan balance declined approximately $60 million, the average rate increased 85 basis points for the period, resulting in higher interest expense. Interest expense on other debt has also increased due to increased lease financing of capital expenditures.
Working capital at December 31, 2010 totaled $201.8 million compared to $203.6 million at March 31, 2010. Total current assets decreased $13.7 million due to decreases in cash and cash equivalents of $20.2 million, offset by increases in trade accounts receivable of $3.2 million, other current assets of $1.3 million, and refundable income taxes of $2.1 million. Current liabilities decreased $11.8 million due to decreases in current installments of long-term debt of $11.3 million, payroll accruals of $4.0 million, other accrued expenses of $5.8 million, and income taxes of $2.5 million, offset by increases in trade accounts payable of $1.0 million and deferred revenue of $10.9 million. The Company made pre-payments on its term loan of $53.5 million and refinanced a construction loan resulting in a decrease to the current portion of long-term debt for the nine months ended December 31, 2010.
Investing activities used $73.9 million in cash in the current year. This resulted from capitalization of data acquisition costs of $10.7 million and capitalization of software development costs of $3.6 million. Capital expenditures were $46.8 million compared to $31.4 million in the same period last year. The Company paid $12.9 million for the purchase of Acxiom Brazil and a small acquisition in Australia.
Financing activities used $70.3 million in cash in the current year. This included payments of debt of $78.1 million that was comprised of capital lease payments of $17.1 million, software license payments of $1.2 million, other debt payments of $6.3 million, and term loan prepayments of $53.5 million. The term loan prepayments of $53.5 million represented a $16.0 million increase from $37.5 million paid in the prior year. Financing activities also include $7.3 million in proceeds from the sale of common stock.
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Acxiom Corp has a market cap of $1.41 billion; its shares were traded at around $17.53 with a P/E ratio of 24.4 and P/S ratio of 1.3. Acxiom Corp had an annual average earning growth of 8% over the past 10 years.Hedge Fund Gurus that owns ACXM: Jim Simons of Renaissance Technologies LLC, Kenneth Fisher of Fisher Asset Management, LLC, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns ACXM: Richard Aster Jr of Meridian Fund, Columbia Wanger of Columbia Wanger Asset Management, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Services revenue for the quarter ended December 31, 2010 was $232.8 million, representing a $14.5 million increase or 6.6% increase from the same quarter a year ago. Excluding unfavorable exchange rate movements and acquisition-related revenue, Services revenue increased 4.6%. On a geographic basis, International services increased $6.5 million, or 30.0%, while US services increased $8.0 million, or 4.1%. International services included $4.0 million of incremental revenue related to the MENA and Acxiom Brazil acquisitions. Excluding unfavorable exchange rate movements and acquisition-related revenue, International services increased approximately $2.8 million in the quarter which represents greater than 10% growth. Australia and China services volume growth accounted for most of this growth. Europe services were negatively impacted by the loss of a couple of large services contracts in Europe during the last fiscal year, however growth from the UK 2Touch operation mitigated these reductions. US growth reflects new IT Services contracts signed over the last year. By line of business, growth was most notable in Consulting of $1.6 million or 16.9%, Multi-channel Marketing Services of $7.2 million or 8.3%, and Infrastructure Management of $4.7 million or 6.2%. CDI Services were negatively impacted by contract losses in Europe and the US, and declined $5.4 million or 13.9%.Services revenue for the nine months ended December 31, 2010 was $669.0 million. This represents a $41.2 million increase, or 6.6% over the prior year same period. On a geographic basis, International services increased $5.6 million, or 8.7%, while US services increased $35.6 million, or 6.3%. International services growth included $8.1 million of incremental revenue related to the MENA and Acxiom Brazil acquisitions. Excluding unfavorable exchange rate movements and acquisition-related revenue, International services decreased approximately $1.0 million. International services were negatively impacted by the loss of a couple of large services contracts in Europe during the last fiscal year. Strong results in Australia and China mitigated the declines in Europe. New IT Services contracts signed over the last year contributed to the US growth. Of the $33.1 million of organic Services growth, $25.3 million was related to Infrastructure Management. By line of business, revenue increases in Multi-channel Marketing Services of $7.0 million or 2.7%, Consulting of $5.6 million or 21.7%, and Infrastructure Management of $25.3 million or 12.4% were offset by a decrease in CDI Services of $7.8 million or 6.7%. CDI Services were negatively impacted by the contract losses in Europe and the US.
Interest expense for the quarter ended December 31, 2010 was $6.0 million compared to $5.7 million a year ago. During the quarter ended December 31, 2009 the Company amended its credit agreement to extend the maturity date on $375 million of the term loan by an additional 2.5 years, and to extend $120 million of the revolving credit agreement for an additional 2.5 years. The $75 million of the original term loan and the $80 million of the revolving credit agreement that were not extended remained on their original maturity schedules. The LIBOR credit spread for the interest rate charged on the extended portion of the agreements increased 1.25%. Although the average balance of the term loan declined approximately $40 million, the average rate increased 70 basis points for the quarter, resulting in higher interest expense. Interest expense for the nine months ended December 31, 2010 was $18.2 million compared to $16.6 million a year ago. Although the average term loan balance declined approximately $60 million, the average rate increased 85 basis points for the period, resulting in higher interest expense. Interest expense on other debt has also increased due to increased lease financing of capital expenditures.
Working capital at December 31, 2010 totaled $201.8 million compared to $203.6 million at March 31, 2010. Total current assets decreased $13.7 million due to decreases in cash and cash equivalents of $20.2 million, offset by increases in trade accounts receivable of $3.2 million, other current assets of $1.3 million, and refundable income taxes of $2.1 million. Current liabilities decreased $11.8 million due to decreases in current installments of long-term debt of $11.3 million, payroll accruals of $4.0 million, other accrued expenses of $5.8 million, and income taxes of $2.5 million, offset by increases in trade accounts payable of $1.0 million and deferred revenue of $10.9 million. The Company made pre-payments on its term loan of $53.5 million and refinanced a construction loan resulting in a decrease to the current portion of long-term debt for the nine months ended December 31, 2010.
Investing activities used $73.9 million in cash in the current year. This resulted from capitalization of data acquisition costs of $10.7 million and capitalization of software development costs of $3.6 million. Capital expenditures were $46.8 million compared to $31.4 million in the same period last year. The Company paid $12.9 million for the purchase of Acxiom Brazil and a small acquisition in Australia.
Financing activities used $70.3 million in cash in the current year. This included payments of debt of $78.1 million that was comprised of capital lease payments of $17.1 million, software license payments of $1.2 million, other debt payments of $6.3 million, and term loan prepayments of $53.5 million. The term loan prepayments of $53.5 million represented a $16.0 million increase from $37.5 million paid in the prior year. Financing activities also include $7.3 million in proceeds from the sale of common stock.
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