ACI Worldwide, Inc. · NASDAQ:ACIW
ACI Worldwide — Q1 2009 Earnings Presentation
34 slides from ACI Worldwide's earnings presentation, May 6, 2009
Slide 1: March 31, 2009 Quarterly Results
March 31, 2009 Quarterly Results May 6, 2009
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 provision
Slide 3: Presenters
• Phil Heasley, Chief Executive Officer • Ron Totaro, Chief Operating Officer • Scott Behrens, Chief Financial Officer • Q&A: Phil Heasley, Ron Totaro and Scott Behrens 3
Slide 4: Business Review
Ron Totaro, Chief Operating Officer Business Review
Slide 5: Q1 2009 Update
Q1 2009 Update • Very similar business performance to prior year – Revenue and sales mirrored Q1-08 – Pipeline for Q2 and beyond robust • Sales of $61 million, down $3 million versus Q1-08 sales – Demonstrated market interest in our products as evidenced by more sales of new accounts than in March 2
Slide 6: Q1 2009 Sales Results
Q1 2009 Sales Results Sales Type Product Division Qtr. Ended Qtr. Ended % Growth or Qtr. Ended Qtr. Ended % Growth or Sales Type Mar. 09 Mar. 08 Decline Product Division Mar. 09 Mar. 08 Decline New Account 9,719 1,311 642% Retail Payments 36,273 45,763 -21% New Application 8,963 9,621 -7% Applicatio
Slide 7: Q1 2009 Channel Sales Results
Q1 2009 Channel Sales Results Sales (net of Term Extensions) Q1 2009 v Q1 2008 Channel Performance: Sales Net of Term Extensions • Americas … Qtr. Ended Qtr. Ended % Growth or Channel Mar. 09 Mar. 08 Decline – Top 5 customers accounted for $16.3 million of Americas 31,525 16,907 86% sales in Q1- 09
Slide 8: Historic Sales By Quarter 2008-2009
Historic Sales By Quarter 2008-2009 Sales Mix by Category Add-on Business inc. Capacity Total Economic Value of Upgrades & Quarter-End Sales New Accounts New Applications Services Term Extentions 3/31/2008 $63,813 $1,311 $9,621 $38,101 $14,781 2% 15% 60% 23% 6/30/2008 $99,938 $15,856 $23,487 $45,434
Slide 9: Americas Q1 2009 Highlights
Americas Q1 2009 Highlights Revenue Performance Y-o-Y: • Americas Q1-09 revenue of $49.9 million was up ~$6 million vs. Q1-08 – Growth in monthly recurring revenues of $2.5 million – Implementation Services Fees increased $2.5 million • MasterCard • Standard Chartered Bank • Key Sales Highlights – T
Slide 10: EMEA Q1 2009 Highlights
EMEA Q1 2009 Highlights Revenue Performance Y-o-Y: • EMEA Q1-09 revenue of $29.0m, down ~ $8 million versus Q1-08 – License fees declined on an FX-adjusted basis due to a capacity deal of $4.2 million recognized in the prior-year quarter – Services and maintenance revenue showed strong growth in Q1-
Slide 11: Asia-Pacific Q1 2009 Highlights
Asia-Pacific Q1 2009 Highlights Revenue Performance Y-o-Y: • Asia Pacific Q1-09 revenue of $9.3 million essentially flat versus prior- year quarter • Key Sales Highlights – Q1-09 Sales $4.6 million vs. $14.0 million in prior year driven by • Prior year sales of large wholesale contracts in Korea and
Slide 12: Organization Update
Organization Update • Product Management Organization – New Chief Product Officer building out his organization – Rolling out general managers by product • Services Organization – New heads in Asia and in EMEA now in place (March 09) – Assessing services operations- rates, utilization and billed exp
Slide 13: Financial Review
Financial Review Scott Behrens, Chief Financial Officer
Slide 14: Key Takeaways from the Quarter
Key Takeaways from the Quarter ↓ Revenue reduction of 3%; achieved $88.2 million in the current quarter versus $90.7 million in March 2008 quarter →Strengthening of US $ resulted in ~$6 million decline in global revenue →Revenue decrease in initial software license fees linked to terms/capacity ↑ Co
Slide 15: Takeaways from the Quarter (cont)
Takeaways from the Quarter (cont) ↓ OFCF was impacted by decrease in cash receipts ↓ Timing of ~ $6 million in trade receivables ↑ Expenses decreased $2.4 million versus prior- year quarter primarily due to: • Approximately $8 million FX benefit • Approximately $4 million in restructuring benefit •
Slide 16: Expense Walk Q1 2008 to Q1 2009
Expense Walk Q1 2008 to Q1 2009 94 93 8 - 92 3 90 - 90 88 2 86 4 1 84 3 82 80 78 76 74 Q1 2008 Operating FX Impact Restructuring Savings Professional Fees / IBM IT Outsourcing Business Re- Other / Debt Reserve Q1 2009 Operating Expenses Severance Investment Adj. Expenses • Professional fees of appro
Slide 17: Backlog is Still a Significant Contributor to current period Revenue
Backlog is Still a Significant Contributor to current period Revenue Revenue Qtr. Ended Qtr. Ended % Growth or Revenue Mar. 09 Mar. 08 Decline Revenue from Backlog 83,648 80,883 3% Revenue from Sales 4,566 9,780 -53% Total Revenue 88,213 90,663 -3% Revenue from Backlog 95% 89% Revenue from Sales 5%
Slide 18: Enhanced Operating Expense Presentation
Enhanced Operating Expense Presentation • Cost of Software redefined as amortization of purchased technology AND third party product royalties – Definition now in sync with industry standards • Product Management costs reclassified primarily to R&D • Depreciation & Amortization (except for purchased
Slide 19: Re-affirmation of Guidance
Re-affirmation of Guidance Key Metrics 2008 Actuals 2009 Guidance Sales $460 $450-460 Revenue 418 415-425 GAAP Operating Income 22 35-40 • Phasing is consistent with what we expected upon announcement of Q4 and annual guidance in February • Do not currently anticipate any change in guidance • Expect
Slide 20: Appendix
Appendix
Slide 21: Operating Free Cash Flow ($ millions)
Operating Free Cash Flow ($ millions) Quarter Ended March 31, 2009 2008 Net cash provided by operating activities* $2.8 $ 46.5 Adjustments: Net after-tax cash payments associated with employee-related actions 1.6 0.5 Early termination of facility 0.0 0.6 Less capital expenditures (5.3) (2.6) Less al
Slide 22: 60-Month Backlog ($ millions)
60-Month Backlog ($ millions) Quarter Ended March 31, December 31, March 31, 2009 2008 2008 Americas $791 $771 $730 EMEA 466 480 523 Asia/Pacific 153 156 154 Backlog 60-Month $1,410 $1,407 $1,408 ACI Deferred Revenue $137 $124 $137 ACI Other 1,273 1,282 1,271 Backlog 60-Month $1,410 $1,407 $1,408 22
Slide 23: Revenues by Channel ($ millions)
Revenues by Channel ($ millions) Quarter Ended March 31, 2009 2008 Revenues: United States $36.3 $32.7 Americas International 13.6 11.3 Americas $49.9 $44.0 EMEA 29.0 37.3 Asia/Pacific 9.3 9.4 Revenues $88.2 $90.7 23
Slide 24: Monthly Recurring Revenue ($ millions)
Monthly Recurring Revenue ($ millions) Quarter Ended March 31, 2009 2008 Monthly license fees $17.7 $16.8 Maintenance fees 31.4 31.4 Processing Services 8.3 8.1 Monthly Recurring Revenue $57.4 $56.3 24
Slide 25: Deferred Revenue & Expense ($ millions)
Deferred Revenue & Expense ($ millions) Quarter Ended March 31, December 31, March 31, December 31, 2009 2008 2008 2007 Short Term Deferred Revenue $111.5 $99.9 $137.3 $115.5 Long Term Deferred Revenue $25.7 $24.3 $20.3 $27.3 Total Deferred Revenue $137.2 $124.2 $157.6 $142.8 Total Deferred Expense
Slide 26: Non-Cash Compensation, Acquisition Intangibles and Non-Recurring Items
Non-Cash Compensation, Acquisition Intangibles and Non-Recurring Items Quarter ended March 31, 2009 Quarter ended March 31, 2008 Non-recurring items EPS Impact* $ in Millions EPS Impact* $ in Millions Employee Related Non-recurring items $0.01 $0.2 $0.00 $0.0 Amortization of acquisition-related inta
Slide 27: Other Income / Expense ($ millions)
Other Income / Expense ($ millions) Quarter Ended December 31, December 31, March 31, 2009 2008 March 31, 2008 2007 Interest Income $0.3 $0.7 $0.6 $0.8 Interest Expense (0.8) (1.5) (1.4) (1.4) FX Gain / Loss (0.7) 9.3 3.7 1.9 Interest Rate Swap Loss (0.4) (4.3) (3.7) (2.5) Other 0.0 0.2 (0.2) 0.2 To
Slide 28: Sales by Channel and Product Division ($ millions)
Sales by Channel and Product Division ($ millions) Quarter Ended September December 31, 30, June 30, March 31, March 31, 2009 2008 2008 2008 2008 Sales by Channel: Americas $38.9 $119.6 $46.8 $49.9 $19.2 EMEA 17.4 47.1 53.0 42.4 30.6 Asia Pacific 4.6 22.6 6.8 7.6 14.0 Total Sales $60.8 $189.3 $106.6
Slide 29: 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, excluding cash payments associated with one-time employee related actions, cash payments associated with early termination of leases, less capital expenditure
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results pre
Slide 31: 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 32: Reclassification and Trademarks
Reclassification and Trademarks • The Company redefined its cost of software license fees in order to better conform to industry practice. • The definition has been revised to be third-party software royalties as well as the amortization of purchased technology. Previously, cost of software license
Slide 33: 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 “bel
Slide 34: INGE
INGE EVERY SECOND. EVERY DAY.