Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Q1 2011 Earnings Presentation
30 slides from Aci Worldwide's earnings presentation, Apr 28, 2011
Slide 1: Quarterly Results Presentation
April 28, 2011 March 31, 2011 Quarterly Results Presentation 1 ACI's software underpins electronic payments throughout retail and wholesale banking, and commerce all the time.
Slide 2: Quarterly Overview
Quarterly Overview 19 of the world's top 20 banks, 5 of the top 10 U.S. retailers and 6 of the leading 25 global retailers, rely on ACI payments software. Phil Heasley Chief Executive Officer
Slide 3: Q1 2011 in Review
4 Q1 2011 in Review Much stronger sales quarter than last year driven by large renewals in Canada, Mexico and in Northern Europe Strong revenue growth led by increased recurring revenue Solid Operating Free Cash Flow generation Consistent growth in operating income and operating EBITDA Acquisition o
Slide 4: Business Overview
Business Overview Ralph Dangelmaier President, Global Markets
Slide 5: Q1 2011 Sales
52% increase in year-over-year sales, including 57% increase in new business Strong Q1 in North America and Northern Europe Significant year-over-year growth in almost all product categories Emphasis on cross-selling to existing customers 6 Q1 2011 Sales
Slide 6: Q1 2011 in Review
7 Q1 2011 in Review Two large Canadian customers re-committed with significant add-ons; facilities management (BASE24), as well as migration to BASE24eps(r) Major U.S. payment processor agreed to consolidate enterprise transaction volumes on ACI solution Compliance solution with MTS for major global
Slide 7: Overall Market Conditions
8 Overall Market Conditions Americas Tremendous cost pressures drive continued investment Continuing need for compliance EMEA Developed Markets Economic pressures drive interest in creating infrastructural efficiencies Developing Markets Economic growth and interest in leap-frogging traditional paym
Slide 8: Financial Review
Financial Review Scott Behrens Chief Financial Officer
Slide 9: Key Takeaways from the Quarter
Key Takeaways from the Quarter Strong Sales Growth Sales growth in the EMEA and Americas regions led by large renewals with add-ons as well as higher capacity revenue Sales, net of term extensions, increased 57% 60-Month Backlog Growth of $47 million Largely driven by ISD acquisition and FX translat
Slide 10: Key Takeaways from the Quarter (cont)
11 Key Takeaways from the Quarter (cont) Expense Growth drivers Higher selling and marketing expense Higher R&D expense to invest in accelerated product development Strong Growth in Operating Income Up $8.4 million over prior-year quarter Strong Growth in Operating EBITDA Up $9.3 million over prior-
Slide 11: Backlog as a Contributor of Quarterly Revenue
Backlog as a Contributor of Quarterly Revenue Backlog from monthly recurring revenues and project go-lives continues to drive current quarter GAAP revenue, leading to predictable quarterly performance Consistent revenue from current quarter sales 12
Slide 12: Reaffirmation of 2011 Guidance
Reaffirmation of 2011 Guidance 13 Revenue Revenue growth range higher than last year Revenue and margin phasing consistent with prior-year Operating Income Operating income improves from on-going growth in recurring revenue and continued expense management 15%-20% growth range Operating EBITDA Depre
Slide 13: Appendix
Appendix
Slide 14: Historic Sales By Quarter 2010-2011
15 Historic Sales By Quarter 2010-2011
Slide 15: Sales By Region by Geography and Type
Sales By Region by Geography and Type
Slide 16: Operating Free Cash Flow
Operating Free Cash Flow ($ millions) 17 17 *OFCF is defined as net cash provided (used) by operating activities, less net after-tax payments associated with employee-related actions and IBM IT outsourcing transition, capital expenditures and plus or minus net proceeds from IBM.
Slide 17: 60-Month Backlog
60-Month Backlog ($ millions) 18 18
Slide 18: Revenues by Channel
Revenues by Channel ($ millions) 19 19
Slide 19: Monthly Recurring Revenue
Monthly Recurring Revenue ($ millions) 20 20
Slide 20: Deferred Revenue and Expense
Deferred Revenue and Expense ($ millions) 21 21
Slide 21: Non-Cash Compensation, Acquisition Intangibles and Software
Non-Cash Compensation, Acquisition Intangibles and Software 22 22 * Tax Effected at 35%
Slide 22: Other Income / Expense
Other Income / Expense ($ millions) 23 23
Slide 23: Operating EBITDA
Operating EBITDA Operating EBITDA 24 Operating EBITDA is defined as net income plus income tax, net interest income (expense), net other income (expense), depreciation, amortization and non-cash compensation.
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI is presenting operating free cash flow, which is defined as net cash provided (used) by operating activities, less net after-tax payments associated with employee related activities, net after-tax payments associated with IBM IT outsourcing transition, and capital exp
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI also includes backlog estimates which are all software license fees, maintenance fees and services specified in executed contracts, as well as revenues from assumed contract renewals to the extent that we believe recognition of the related revenue will occur within th
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Estimates of future financial results are inherently unreliable. Our backlog estimates require substantial judgment and are based on a number of assumptions as described above. These assumptions may turn out to be inaccurate or wrong, including for reasons outside of mana
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management general
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 throughout retail and wholesale banking, and commerce all the
ACI's software underpins electronic payments throughout retail and wholesale banking, and commerce all the time, without fail. www.aciworldwide.com