Acxiom Corp. (ACXM, Financial) filed Quarterly Report for the period ended 2010-06-30.
Acxiom Corp. has a market cap of $1.32 billion; its shares were traded at around $16.46 with a P/E ratio of 27 and P/S ratio of 1.3. Acxiom Corp. had an annual average earning growth of 8% over the past 10 years.ACXM is in the portfolios of Richard Aster Jr of Meridian Fund, Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management, Edward Lampert of ESL Investments, Jim Simons of Renaissance Technologies LLC, Kenneth Fisher of Fisher Asset Management, LLC.
Interest expense for the quarter ended June 30, 2010 was $5.9 million compared to $5.5 million a year ago. During the quarter ended December 31, 2009 the Company amended the credit agreement to extend $375 million of the term loan an additional 2.5 years, and to extend $120 million of the revolving credit agreement for an additional 2.5 years. The portions of the original term loan and the revolving credit agreement that has not been extended remain 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 declined approximately $60 million, the average rate increased 85 basis points, resulting in slightly higher interest expense.
Working capital at June 30, 2010 totaled $221.7 million compared to $203.6 million at March 31, 2010. Total current assets increased $8.0 million due to an increase in trade account receivables of $15.1 million offset by decreases in cash and cash equivalents of $5.6 million and other current assets of $1.4 million. Current liabilities decreased $10.1 million due to decreases in payroll accruals of $8.9 million, trade accounts payable of $2.7 million and other accrued expenses of $0.8 million, offset by increases in deferred revenue of $0.8 million and income taxes of $1.5 million.
Investing activities used $16.1 million in cash in the current quarter. This resulted from capitalization of data acquisition costs of $4.3 million and capitalization of software development costs of $1.2 million. Capital expenditures were $8.8 million compared to $7.4 million in the same period last year. The Company paid $1.8 million for the purchase of a digital marketing business operating in Australia and New Zealand. The remainder of cash paid in acquisitions relates to an earnout payment on a prior acquisition.
Financing activities used $5.2 million in cash in the current quarter. This included payments of debt of $9.0 million that was comprised of capital lease payments of $6.0 million, software license payments of $0.9 million, and other debt payments of $2.1 million. Financing activities also include $3.8 million in proceeds from the sale of common stock.
In November 2009, the Company entered into an amendment to its term loan credit facility (the “Amendment”). Under the terms of the Amendment, certain of the lenders have agreed to extend the maturity date of the existing term loan, becoming Tranche 2 Term Lenders. Lenders who did not agree to extend the maturity date became Tranche 1 Term Lenders. Certain lenders also agreed to extend the maturity date of the existing revolving loan commitment, becoming Tranche 2 Revolving Lenders. Lenders who did not agree to extend the maturity date of the revolving loan commitment became Tranche 1 Revolving Lenders. Of the $450 million balance of the existing term loan on the date of the Amendment, approximately $75 million was held by Tranche 1 Term Lenders and $375 million was held by Tranche 2 Term Lenders. Of the $200 million revolving loan commitment, $80 million is held by Tranche 1 Revolving Lenders and $120 million is held by Tranche 2 Revolving Lenders.
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Acxiom Corp. has a market cap of $1.32 billion; its shares were traded at around $16.46 with a P/E ratio of 27 and P/S ratio of 1.3. Acxiom Corp. had an annual average earning growth of 8% over the past 10 years.ACXM is in the portfolios of Richard Aster Jr of Meridian Fund, Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management, Edward Lampert of ESL Investments, Jim Simons of Renaissance Technologies LLC, Kenneth Fisher of Fisher Asset Management, LLC.
Highlight of Business Operations:
Services revenue for the quarter ended June 30, 2010 was $210.7 million. This represents an $11.3 million increase or 5.7% when compared to the same period in the prior year. On a geographic basis, International services decreased $1.3 million while US services increased $12.6 million, or 7.1%. International services were negatively impacted by the loss of two large services contracts in Europe during the last fiscal year. US growth was fueled by new Infrastructure Management contracts signed over the last year. By line of business, revenue increases in Consulting at $2.5 million, or 32.4%, and Infrastructure Management at $13.8 million, or 23.1% were offset by declines in Multi-channel Marketing Services of $2.4 million, or 2.8% and CDI Services of $3.7 million, or 9.4%. Multi-channel Marketing Services and CDI Services were negatively impacted by the contract losses in Europe.Interest expense for the quarter ended June 30, 2010 was $5.9 million compared to $5.5 million a year ago. During the quarter ended December 31, 2009 the Company amended the credit agreement to extend $375 million of the term loan an additional 2.5 years, and to extend $120 million of the revolving credit agreement for an additional 2.5 years. The portions of the original term loan and the revolving credit agreement that has not been extended remain 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 declined approximately $60 million, the average rate increased 85 basis points, resulting in slightly higher interest expense.
Working capital at June 30, 2010 totaled $221.7 million compared to $203.6 million at March 31, 2010. Total current assets increased $8.0 million due to an increase in trade account receivables of $15.1 million offset by decreases in cash and cash equivalents of $5.6 million and other current assets of $1.4 million. Current liabilities decreased $10.1 million due to decreases in payroll accruals of $8.9 million, trade accounts payable of $2.7 million and other accrued expenses of $0.8 million, offset by increases in deferred revenue of $0.8 million and income taxes of $1.5 million.
Investing activities used $16.1 million in cash in the current quarter. This resulted from capitalization of data acquisition costs of $4.3 million and capitalization of software development costs of $1.2 million. Capital expenditures were $8.8 million compared to $7.4 million in the same period last year. The Company paid $1.8 million for the purchase of a digital marketing business operating in Australia and New Zealand. The remainder of cash paid in acquisitions relates to an earnout payment on a prior acquisition.
Financing activities used $5.2 million in cash in the current quarter. This included payments of debt of $9.0 million that was comprised of capital lease payments of $6.0 million, software license payments of $0.9 million, and other debt payments of $2.1 million. Financing activities also include $3.8 million in proceeds from the sale of common stock.
In November 2009, the Company entered into an amendment to its term loan credit facility (the “Amendment”). Under the terms of the Amendment, certain of the lenders have agreed to extend the maturity date of the existing term loan, becoming Tranche 2 Term Lenders. Lenders who did not agree to extend the maturity date became Tranche 1 Term Lenders. Certain lenders also agreed to extend the maturity date of the existing revolving loan commitment, becoming Tranche 2 Revolving Lenders. Lenders who did not agree to extend the maturity date of the revolving loan commitment became Tranche 1 Revolving Lenders. Of the $450 million balance of the existing term loan on the date of the Amendment, approximately $75 million was held by Tranche 1 Term Lenders and $375 million was held by Tranche 2 Term Lenders. Of the $200 million revolving loan commitment, $80 million is held by Tranche 1 Revolving Lenders and $120 million is held by Tranche 2 Revolving Lenders.
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