Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Q4 2013 Earnings Presentation
24 slides from Aci Worldwide's earnings presentation, Feb 27, 2014
Slide 1: Quarter and Year Ended December 31, 2013 Results Presentation
Exhibit 99.2 ACI’s software underpins electronic payments throughout retail and wholesale banking, and commerce all the time. Quarter and Year Ended December 31, 2013 Results Presentation February 27, 2014 1
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 provisions
Slide 3: Quarterly Overview
Quarterly Overview Phil Heasley Chief Executive Officer 3
Slide 4: 2013 in Review
2013 in Review • Online Resources and Official Payments acquisitions expand payment capabilities • Completed $300 million bond offering • Repurchased ~1.7 million shares in 2013, or 4% of outstanding shares and have repurchased ~930,000 shares in 2014 YTD • Increased authorization by an additional $
Slide 5: Financial Review
Financial Review Scott Behrens Chief Financial Officer 5
Slide 6: Key Takeaways from the Quarter
Key Takeaways from the Quarter • Official Payments acquisition completed November 5 th 2013 – $8 million in cost synergies are substantially complete • New Sales Bookings – Q4 organic net new sales bookings up 13% over last year – ORCC net new sales bookings up 49% over last year’s Q4 • Backlog vers
Slide 7: Key Takeaways from the Year
Key Takeaways from the Year • New Sales Bookings – 2013 new sales bookings up 20%, or 7% organically • Revenue Growth – 2013 Non-GAAP revenue grew 26% over 2012 – Organic revenue growth of 1% driven by organic monthly recurring revenue growth of $28 million offset by non-recurring revenue decline of
Slide 8: 2014 Guidance
2014 Guidance Key Metrics 2013 Actual 2014 Guidance Low High Non-GAAP Revenue $871 $1,060 $1,080 Adjusted EBITDA $239 $290 $300 $s in millions Guidance • Sales, net of term extension, growth in the upper single digits • Revenue and margin phasing by quarter consistent with seasonal history • Q1 reve
Slide 9: Appendix
MCI payment systems Appendix
Slide 10: Monthly Recurring Revenue ($ millions)
Monthly Recurring Revenue ($ millions) Quarter Ended Monthly Recurring Revenue (millions) December 31, 2013 2012 Monthly Software license fees $23.4 $21.4 Maintenance fees 60.3 54.7 Processing services 91.9 32.9 Monthly Recurring Revenue $175.6 $109.0 10
Slide 11: Historic Sales Bookings By Quarter 2012-2013
Historic Sales Bookings By Quarter 2012-2013 Sales Mix by Category Add-on Business inc. Capacity Total Economic New Accounts / Upgrades & Quarter-End Value of Sales New Applications Services Term Extension 8% 61% 32% 3/31/2012 $108,462 $5,958 $58,602 $43,902 5% 54% 40% 6/30/2012 $156,188 $9,855 $102
Slide 12: Sales Bookings, Net of Term Extensions (SNET)
Sales Bookings, Net of Term Extensions (SNET) Sales Net of Term Extensions Qtr Ended Qtr Ended % Growth or Channel Dec 13 Dec 12 Decline Americas $117,011 $84,631 38.3% EMEA 104,408 76,004 37.4% Asia-Pacific 25,175 37,488 -32.8% Total Sales Net of Term Ext. $246,594 $198,123 24.5% ORCC and OPAY SNET
Slide 13: Non-GAAP Operating Income ($ millions)
Non-GAAP Operating Income ($ millions) Quarter Ended Year Ended Non-GAAP Operating Income (millions) December 31, December 31, 2013 2012 2013 2012 Operating income $86.0 $75.5 $123.0 $74.4 Plus: Deferred revenue fair value adjustment 0.9 3.6 5.8 22.5 Employee related actions 1.2 0.2 10.7 14.0 Facili
Slide 14: Adjusted EBITDA ($ millions)
Adjusted EBITDA ($ millions) Quarter Ended Year Ended Adjusted EBITDA (millions) December 31, December 31, 2013 2012 2013 2012 Net income $50.4 $49.7 $63.9 $48.8 Plus: Income tax expense 24.1 24.3 29.3 16.4 Net interest expense 9.7 2.8 26.6 9.5 Net other expense (income) 1.8 (1.3) 3.3 (0.4) Deprecia
Slide 15: Operating Free Cash Flow ($ millions)
Operating Free Cash Flow ($ millions) Reconciliation of Operating Free Cash Flow (millions) Quarter Ended December 31, Year Ended December 31, 2013 2012 2013 2012 Net cash provided (used) by operating activities $51.9 $3.5 $138.4 ($9.3) Payments associated with cash settlement of acquisition 10.2 -
Slide 16: Non-Cash Compensation, Acquisition Intangibles and Software, and Significant Transaction Related Expenses
Non-Cash Compensation, Acquisition Intangibles and Software, and Significant Transaction Related Expenses Acquisition Intangibles & Software, Non-cash equity based compensation Quarter Ended (millions) December 31, 2013 2012 $ in Millions $ in Millions EPS Impact EPS Impact (Net of Tax) (Net of Tax)
Slide 17: 60-Month Backlog ($ millions)
60-Month Backlog ($ millions) Quarter Ended Backlog 60-Month (millions) December 31, September 30, December 31, 2013 2013 2012 Americas $2,831 $2,125 $1,429 EMEA 746 704 719 Asia/Pacific 283 283 268 Backlog 60-Month $3,860 $3,112 $2,416 Deferred Revenue $168 $196 $191 Other 3,692 2,916 2,225 Backlog
Slide 18: Backlog as a Contributor of Quarterly Revenue
Backlog as a Contributor of Quarterly Revenue Backlog as Contributor of Revenue (thousands) Quarter Ended December 31, % Growth 2013 2012 Revenue from Backlog $ 268,845 $ 213,411 26.0% Revenue from Sales 14,317 10,684 34.0% Total Revenue $ 283,162 $ 224,095 26.4% Revenue from Backlog 95% 95% Revenue
Slide 19: Contract Duration Metric
Contract Duration Metric • New Metric Intended to Boost Transparency – Represents dollar average remaining contract life (in years) for term license software contracts – Excludes perpetual contracts (primarily heritage S1 licensed software contracts) – Excludes all hosted contracts as both cash and
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures • To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude certain business combination accounting entries related to the acquisitions of S1, Online Resources and Official Payments and significant t
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI is also presenting operating free cash flow, which is defined as net cash provided by operating activities, plus net after-tax payments associated with employee-related actions and facility closures, net after-tax payments associated with significant transaction relat
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Backlog is considered a non-GAAP financial measure as defined by SEC Regulation G. Our 60-month backlog estimate represents expected revenues from existing customers using the following key assumptions: • Maintenance fees are assumed to exist for the duration of the licen
Slide 23: 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 24: 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, increased competition, the performance of our strategic product, B