Slide 1: September 30, 2013 Quarterly Results Presentation
Exhibit 99.2 ACI’s software underpins electronic payments throughout retail and wholesale banking, and commerce all the time. September 30, 2013 Quarterly Results Presentation November 7, 2013
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 2013 in Review
Q3 2013 in Review • Official Payments acquisition closed • Completed $300 million bond offering • Q3 non-GAAP revenue up 11% organically • SNET bookings up 17% • Pipeline strong across all regions • Showing early success with Universal Payments Platform (UPP) • Repurchased ~$81 million of ACI stock
Slide 5: Financial Review
Financial Review Scott Behrens Chief Financial Officer
Slide 6: Key Takeaways from the Quarter
Key Takeaways from the Quarter th • Official Payments acquisition completed November 5 2013 – Expected to contribute $18 to $20 million in revenue for the period November 5, 2013 through December 31, 2013 – Expected to achieve $8 million in annualized cost synergies by December 31, 2013 • New Sales
Slide 7: Key Takeaways from the Quarter
Key Takeaways from the Quarter • Operating Expense Operating expense increase driven primarily from inclusion of ORCC operations ORCC contributed $34 million to Q3 operating expense Incurred $9 million of expenses related to significant transaction and integration-related expenses including severanc
Slide 8: 2013 Guidance
2013 Guidance Current Guidance Acquisition Adjustment Revised Guidance Key Metrics Low High Low High Low High Revenue $865 $885 $18 $20 $883 $905 Op Income $165 $175 $0 $0 $165 $175 Adj EBITDA $256 $266 $1 $1 $257 $267 • Guidance Expect Official Payments to contribute $18 to $20 million in revenue f
Slide 9: Appendix
MCI payment systems Appendix
Slide 10: Monthly Recurring Revenue ($ millions)
Monthly Recurring Revenue ($ millions) Quarter Ended Monthly Recurring Revenue (millions) September 30, 2013 2012 Monthly Software license fees $22.1 $24.7 Maintenance fees 60.5 47.6 Processing services 68.4 33.0 Monthly Recurring Revenue $151.0 $105.3 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 3/31/2012 $108,462 $5,958 $58,602 $43,902 5% 54% 40% 6/30/2012 $156,188 $9,855 $102,417 $43,91
Slide 12: Sales Bookings, Net of Term Extensions
Sales Bookings, Net of Term Extensions Sales Net of Term Extensions Qtr Ended Qtr Ended % Growth or Channel Sep 13 Sep 12 Decline Americas $82,768 $53,677 54.2% EMEA 39,644 42,475 -6.7% Asia-Pacific 25,541 30,226 -15.5% Total Sales (Net of Term Ext.) $147,953 $126,378 17% ORCC SNET $19,300 ACI organ
Slide 13: Non-GAAP Operating Income ($ millions)
Non-GAAP Operating Income ($ millions) Quarter Ended Non-GAAP Operating Income (millions) September 30, 2013 2012 Operating income $29.6 $8.3 Plus: Deferred revenue fair value adjustment 1.7 4.9 Employee related actions 5.2 0.5 Facility closure costs 1.0 3.5 IT exit costs - 0.1 Other significant tra
Slide 14: Adjusted EBITDA ($ millions)
Adjusted EBITDA ($ millions) Quarter Ended Adjusted EBITDA (millions) September 30, 2013 2012 Net income $13.8 $5.7 Plus: Income tax expense (benefit) 5.3 (1.2) Net interest expense 7.3 2.4 Net other expense 3.2 1.4 Depreciation expense 5.6 3.6 Amortization expense 13.1 9.9 Non-cash compensation exp
Slide 15: Operating Free Cash Flow ($ millions)
Operating Free Cash Flow ($ millions) Reconciliation of Operating Free Cash Flow (millions) Quarter Ended September 30, 2013 2012 Net cash provided by operating activities $28.9 $5.3 Net after-tax payments associated with employee-related 1.5 1.3 actions 0.5 0.7 Net after-tax payments associated wit
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 Quarter Ended (millions) September 30, 2013 2012 $ in Millions $ in Millions EPS Impact EPS Impact (Net of Tax) (Net of Tax) Significant transaction related expenses $ 0.14 $ 5.6 $ - $ - Amortiz
Slide 17: 60-Month Backlog ($ millions)
60-Month Backlog ($ millions) Quarter Ended Backlog 60-Month (millions) September 30, June 30, March 31, 2013 2013 2013 Americas $2,125 $2,117 $2,090 EMEA 704 691 691 Asia/Pacific 283 276 275 Backlog 60-Month $3,112 $3,084 $3,056 Deferred Revenue $196 $209 $205 Other 2,916 2,875 2,851 Backlog 60-Mon
Slide 18: Backlog as a Contributor of Quarterly Revenue
Backlog as a Contributor of Quarterly Revenue Revenue Qtr Ended Qtr Ended % Growth or Revenue Sep 13 Sep 12 Decline Revenue from Backlog $202,709 $146,814 38.1% Revenue from Sales 11,230 8,248 36.2% Total Revenue $213,939 $155,062 38.0% Revenue from Backlog 95% 95% Revenue from Sales 5% 5% • Backlog
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 measure indicated in the tables, which exclude certain business combination accounting entries related to the acquisitions of ORCC and S1 and significant transaction related expenses, as we
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
Slide 25: ACI's software underpins electronic payments throughout retail and wholesale banking, and commerce
ACI’s software underpins electronic payments throughout retail and wholesale banking, and commerce all the time, without fail. www.aciworldwide.com