Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Q3 2014 Earnings Presentation
26 slides from Aci Worldwide's earnings presentation, Oct 30, 2014
Slide 1: September 30, 2014 Quarterly Results Presentation
Exhibit 99.2 September 30, 2014 Quarterly Results Presentation October 30, 2014
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
Slide 4: Q3 2014 in Review
Q3 2014 in Review • SNET bookings up 6% in the quarter; up 22% YTD • Non-GAAP Revenue up 16% • Adjusted EBITDA up 7% • Strong market interest in Universal Payments • Large contracts in pipeline progressing • 60 month backlog now greater than $4 billion • Completed acquisition of Retail Decisions (Re
Slide 5: Financial Review
FINANCIAL REVIEW Scott Behrens Chief Financial Officer
Slide 6: Key Takeaways from the Quarter
Key Takeaways from the Quarter • Sales Bookings Q3 SNET up 6%, YTD SNET up 22% YTD organic SNET up 8% YTD organic hosted SNET to large financial institutions and retailers up 23% YTD Offset by decline in licensed software SNET Impacts timing of revenue recognition resulting in decline in non-recurri
Slide 7: Key Takeaways from the Quarter
Key Takeaways from the Quarter • Revenue Growth Continued to see increases in recurring revenues offset by declines in non-recurring revenues Non-GAAP revenue growth of 16%, or flat organically Revenue increase driven from inclusion of Official Payments (OPAY) and ReD SaaS subscription and transacti
Slide 8: Key Takeaways from the Quarter
Key Takeaways from the Quarter • EBITDA Adjusted EBITDA of $66 million grew 7% from Q3 last year • Operating Free Cash Flow Operating free cash flow of $18 million decreased from $27 million Q3 last year • Debt and Liquidity Ended the quarter with $60 million in cash and $946 million in debt, with t
Slide 9: 2014 Guidance
2014 Guidance 2014 Guidance Key Metrics Prior Current Low High Low High Non-GAAP Revenue $1,078 $1,098 $1,025 $1,045 Adjusted EBITDA $294 $304 $265 $275 $s in millions • Guidance Sales bookings, net of term extensions, growth rate for the year is expected to be in the double digits • Notes These met
Slide 10: Appendix
UNIVERSAL PAYMENTS hC APPENDIX
Slide 11: Monthly Recurring Revenue
Monthly Recurring Revenue Quarter Ended Monthly Recurring Revenue (millions) September 30, 2014 2013 Monthly Software license fees $21.8 $22.1 Maintenance fees 63.8 60.5 Processing services 100.0 68.4 Monthly Recurring Revenue $185.6 $151.0 MEETS THE CHALLENGE OF CHANGE 11
Slide 12: Historic Sales Bookings By Quarter 2012-2014
Historic Sales Bookings By Quarter 2012-2014 Sales Mix by Category Add-on Business inc. Capacity Total Economic New Accounts / Upgrades & Quarter-End Value of Sales New Applications Services Term Extension 9/30/2012 $192,310 $23,802 $102,576 $65,932 12% 53% 34% 12/31/2012 $309,143 $52,206 $145,917 $
Slide 13: 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 Sep 14 Sep 13 Decline Americas $105,408 $82,768 27.4% EMEA 38,292 39,644 -3.4% Asia-Pacific 13,767 25,541 -46.1% Total Sales (Net of Term Ext.) $157,467 $147,953 6.4% MEETS THE CHALLENG
Slide 14: Non-GAAP Operating Income
Non-GAAP Operating Income Quarter Ended Non-GAAP Operating Income (millions) September 30, 2014 2013 Operating income $31.9 $29.6 Plus: Deferred revenue fair value adjustment 0.4 1.7 Employee related actions 3.3 5.2 Significant transaction related expenses 4.0 3.5 Non-GAAP Operating Income $ 39.6 $
Slide 15: Adjusted EBITDA
Adjusted EBITDA Quarter Ended Adjusted EBITDA (millions) September 30, 2014 2013 Net income $15.7 $13.8 Plus: Income tax expense 9.4 5.3 Net interest expense 10.4 7.3 Net other expense (income) (3.6) 3.2 Depreciation expense 4.5 5.6 Amortization expense 17.6 13.1 Non-cash compensation expense 4.6 3.
Slide 16: Operating Free Cash Flow
Operating Free Cash Flow Reconciliation of Operating Free Cash Flow (millions) Quarter Ended September 30, 2014 2013 Net cash provided by operating activities $23.7 $28.9 Payments associated with acquired opening balance 0.3 - sheet liabilties Net after-tax payments associated with employee-related
Slide 17: 60-Month Backlog
60-Month Backlog Quarter Ended Backlog 60-Month (millions) September 30, September 30, 2014 2013 Americas $3,000 $2,125 EMEA 826 704 Asia/Pacific 288 283 Backlog 60-Month $4,114 $3,112 Deferred Revenue $183 $196 Other 3,931 2,916 Backlog 60-Month $4,114 $3,112 MEETS THE CHALLENGE OF CHANGE 17
Slide 18: Backlog as a Contributor of Quarterly Revenue
Backlog as a Contributor of Quarterly Revenue Backlog as Contributor of Revenue (thousands) Quarter Ended September 30, % Growth 2014 2013 Revenue from Backlog $ 237,137 $ 202,709 17.0% Revenue from Sales 12,507 11,230 11.4% Total Revenue $ 249,644 $ 213,939 16.7% Revenue from Backlog 95% 95% Revenu
Slide 19: 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) September 30, 2014 2013 $ in Millions $ in Millions EPS Impact EPS Impact (Net of Tax) (Net of Tax
Slide 20: Contract Duration Metric
Contract Duration Metric 5.00 4.50 4.00 3.50 2.85 2.71 2.56 2.68 2.62 3.00 2.40 2.46 2.41 2.47 2.53 2.52 2.50 2.00 1.50 1.00 0.50 0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 • Represents dollar average remaining contract life (in years) for term licen
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our financial results presented on a GAAP basis, we use the non-GAAP measure indicated in the tables, which exclude certain business combination accounting entries related to the acquisitions of Online Resources and S1 and significant transaction related exp
Slide 22: 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 23: 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 24: 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 25: 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
Slide 26: Universal Payments
UNIVERSAL PAYMENTS hC