Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Q3 2011 Earnings Presentation
32 slides from Aci Worldwide's earnings presentation, Oct 27, 2011
Slide 1: Quarterly Results Presentation, October 27, 2011
Exhibit 99.2 Exhibitsoftware ACI’s trusted September October globally 99.2 27,30, 2011 2011 underpins Quarterly electronic Results payments Presentation throughout retail and wholesale banking, and commerce all the time.
Slide 2: Forward-Looking Statements
This Private 2to update presentation Securities any forward-looking contains Litigationforward-looking Reform statement Act of in 1995. 1995 this statements presentation, Safe A discussion Harbor based on except For ofcurrent these Forward-Looking as required forward-looking expectations by law. Sta
Slide 3: Quarterly Overview
Quarterly Phil Chief 3trusted Heasley Executive globally Overview Officer
Slide 4: Q3 2011 Review
4•Q3 Agreed Strong 2011 year revenue growth in terms Review toand date ingrowth operating conditions revenue driven income and with byincome project S1 and Corporation; Adjusted performance completions EBITDA both and converting management good visibility to revenue teams intoworking from pipeline o
Slide 5: Business Overview
Business Ralph President, 5trustedDangelmaier globally Overview Global Markets
Slide 6: Total Sales Results
Qtr Sales New Term 6•Total Year-over-year YTD Cross KeyEnded Sales Sales Type Extension Comparison new sales selling Qtr account $79,674 Sep $116,679 growth Ended to2010 37,005 comps existing year wins $74,966 ofSep $115,089 %10% over 40,123 are Growth include 2011 customers reflected year -5.9% Dec
Slide 7: Americas Sales and Revenue
Americas ($ Sales $67.7 $57.8 $100 Revenue $20 $59.8 Q3 Strong Key Competitive Numerous 20% 7Year-over-year Millions) 2010 $49.9 wins increase $80 $60 $20 sales Q3 $60 largely Results $40 $0 add-on performance online 2011 in $40 sales revenue inand banking US/Canada comps new year-over-year app are
Slide 8: EMEA Sales and Revenue
EMEA ($ $40.2 Sales $45.8 $10 $38.6 $40 $50 Revenue $20 Q3 $0 Decrease Major Business •10% 8Year-over-year Millions) 2010 $35.1 increase $20 $30 renewal Results Q3 is in$10 performing sales, 2011 in with sales revenue mainly sub comps well ofyear-over-year due aare despite top-10 toreflected record
Slide 9: Asia Pacific Sales and Revenue
Asia ($ $14 Sales $4 $24 Revenue $12 $8 Q3 •Decrease •14% 9Year-over-year Millions) $13.1 $7.1 $12.0 2010 $12 $20 $13.7 Pacific increase $2 $10 $16 Q3 $6in $4 $0$0 Results 2011 sales, Q3 in sales revenue 2010 mainly comps Q3year-over-year due 2011 aretoreflected record Q310 excluding due largely •Ke
Slide 10: Financial Review
Financial Scott Chief 10 Behrens Financial ReviewOfficer
Slide 11: Key Takeaways
–•Key 11 Sales Strong Expense Stronger Led Initial Services Higher Takeaways by growth License revenue professional selling R&D ‘go growth revenues sales lives’ similar expense from of and Fee growth drivers new impacting grew marketing revenue the fees toaccounts/applications, tolast Quarter $8.3 i
Slide 12: Key Takeaways (cont)
–•Key 12 Strong Lower UpTakeaways Favorable $3.9 $4.7 effective growth million impact from intax or Adjusted operating of29% 53% rate the $3.1 Quarter over million EBITDA income prior-year (cont) liability quarter release related to our IP transfer
Slide 13: Backlog
Backlog Qtr Total •Revenue 13 Backlog Ended Revenue as Sep from from Qtr a Contributor 11 Backlog Sales Ended $112,149 both Sep 5% 5,307 monthly 10 %95% $106,842 Decline Growth 12% $97,017 of11,452 Quarterly 88% recurring or15.6% 85,565 -53.7% Revenue revenues 24.9% and project go-lives magnified th
Slide 14: Reiterating 2011 Guidance
Reiterating Key Revenue Operating *•Adjusted 14 Sales Guidance Adjusted Metrics should $450 EBITDA Income EBITDA for 2011 2011 fall $460 theGuidance Low in $65 year $101 =theNet $69 2011 excludes mid- $104 Income High $500 one-time plus million income costs rangetax, related net to interest the S1in
Slide 15: Appendix
. Appendix J trusted globally
Slide 16: Historic Sales Comparison
Historic Total Quarter-End 3/31/2010 7% 6/30/2010 1% 9/30/2010 12/30/2010 25% 3/31/2011 10% 6/30/2011 13% 9/30/2011 15% Add-on New Sales SEP Variance Q3 16 2010 43% 63% YTD Accounts 59% 34% 43% 37% 50% Economic Applications Mix Business Sales 50% 35% comparison $79,144 32% 41% 48% 50% 35% 11 10 $122
Slide 17: Sales by Channel, Product and Type
Channel Americas EMEA Asia-Pacific Sales New Add-on Term Qtr Product INITIATE: MANAGE: SECURE OPERATE: Total 17 Ended Account Sales Type Extension 40,239 Business Division Focus Sep $67,735 :Qtr Sep Risk By $115,089 115,089 Enterprise Application Retail 7,115 11 /Ended Sep 45,791 Channel, New 11 Sep
Slide 18: Operating Free Cash Flow
Quarter 2011 Adjustments: acquisition Net Outsourcing Less expenditures Operating *OFCF proceeds 18 cash after-tax Alliance capital 2010is Ended provided from defined Free costs expenditures Transition payments 0.0 technical IBM. September Cash (1.4) 0.2 as by0.0 net Flow Flow* operating associated
Slide 19: 60-Month Backlog
60-Month Quarter September 2011 Americas EMEA Asia-Pacific Deferred Other Backlog 19 June 1,456 523 Ended 60-Month Revenue $898 Backlog 30, 30, 539 1,478 191 2011 September $907 525 194 1,425 $156 ($ $1,612 30, $887 180 millions) 2010 $162 $1,640 $167$1,592
Slide 20: Revenues by Channel
Revenues Quarter United Revenues: 20 States Ended by Channel $46.5 September $37.0 ($ millions) Americas 30, 2011 2010 International 13.3 12.9 Americas $59.8 $49.9 EMEA 38.6 35.1 Asia-Pacific 13.7 12.0 Revenues $112.1 $97.0
Slide 21: Monthly Recurring Revenue
Quarter Ended Monthly 21 Recurring September Revenue 30,$72.8 ($2011 millions) $75.4 2010 Monthly Software License Fees $23.5 $29.2 Maintenance Fees 36.5 32.5 Processing Services 12.8 13.7
Slide 22: Deferred Revenue and Expense
Deferred Quarter September 2011 Short Long Revenue Total 22 2011 Deferred Term Ended $123.9 32.5 Revenue 2010 30, Deferred 30.0 June Revenue Expense 2010 $131.7 and 35.7 30,Expense September $11.7 $131.5 37.1 $156.4$12.6 $113.3 $161.7 ($ millions) 30, $14.6 June $167.2 $13.6 30,$150.4
Slide 23: Non-Cash Items Impact on EPS
Non-Cash Quarter September EPS Amortization related Non-cash compensation *Total: 23 TaxImpact* Effected $0.09 intangibles software ended equity-based Compensation, 30, $3.3 $of 0.04 Quarter 2011 at in0.02 acquisition- 35% $0.10 Millions $0.03 $1.4 September $0.8 ended $3.2 0.04 $1.1 Acquisition 0.0
Slide 24: Other Income and Expense
Quarter September 30, Interest FX Other Total (Expense) 24 2011 Gain Other Income $0.0 Income Expense Ended June / Loss ($0.3) September $0.0 Income /30, Expense ($0.1) $0.2 ($0.1) ($0.4) $0.1 2011 $0.2 ($1.8) $0.3 $0.0 30, ($0.4) ($$0.2 2010 millions) ($1.5) ($2.1) ($0.4) $0.1 June ($1.7) ($0.5) 30
Slide 25: Adjusted EBITDA Reconciliation
Quarter September Income Net Depreciation Amortization Non-Cash Adjusted 25 Income Interest Other tax Ended EBITDA Expense Compensation 30, expense $10.5 Expense Expense Expense 2011 Quarter $2.3 $20.7 is 0.1 0.5 September 0.2 defined 2.0 5.2 1.6 Ended 3.3 0.2 $16.0 Expense 1.8 4.9as 30, net2.2 2010
Slide 26: Non-GAAP Financial Measures: Operating Free Cash Flow
Non-GAAP ACI IBM this operating provided mandatory of 26 our non-GAAP is IToperating presenting outsourcing (used) free debt Financial cash financial service by results operating operating flow transition, Measures on obligations as measure, the afree further activities. same and cash and capital an
Slide 27: Non-GAAP Financial Measures: 60-Month Backlog
Non-GAAP ACI recognition contract •Backlog 27 Maintenance License Non-recurring Foreign Ouralso pricing and isincludes and currency considered of Financial our policies facilities the fees license historic related backlog exchange areand Measures aassumed management arrangements non-GAAP experience
Slide 28: Non-GAAP Financial Measures: Backlog and Adjusted EBITDA
Non-GAAP Estimates inaccurate their customer in 60-month Backlog ACI compensation. 28 (loss). future also financial should periods. includes contracts of period. orFinancial future wrong, condition, Adjusted beAccordingly, Adjusted considered which financial including Measures EBITDA ormay general E
Slide 29: Non-GAAP Financial Measures
Non-GAAP The and Management measures when 29 presented presentation viewed only Financial generally with in inaccordance of addition our these Measures GAAP compensates non-GAAP to with and results, inGAAP. conjunction for financial provide limitations ameasures more withinresults complete theshould
Slide 30: Forward-Looking Statements
Forward-Looking This facts provisions Forward-looking platform •quarter 30 Assumptions Ourpresentation Expectations and belief sales; redundancies, may ofthat the include and regarding that we backlog Private statements contains Statements assumptions sales our have words business (iii) should Secur
Slide 31: Forward-Looking Statements
Forward-Looking All to changes weeks rates, strategy products, failure services compliance these Registration 31 the ofrisk increased global the of ofto ineach industry, and our failure factors, foregoing migrate the with Statement the financial information quarter, global competition, risk to priva
Slide 32: www.aciworldwide.com
ACI’s software trusted www.aciworldwide.com globally underpins electronic payments throughout retail and wholesale banking, and commerce all the time, without fail.