Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Q1 2019 Earnings Presentation
22 slides from Aci Worldwide's earnings presentation, May 9, 2019
Slide 1: Q1 2019 Quarterly Earnings and Speedpay Acquisition Presentation
Q1 2019 QUARTERLY EARNINGS AND SPEEDPAY ACQUISITION PRESENTATION May 9, 2019 ACI Worldwide Exhibit 99.2
Slide 2: 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 of the Private Securities Litigation Reform Act of 1995. A discussion of these forward-look
Slide 3: Quarter in Review
Phil Heasley Chief Executive Officer Quarter in Review
Slide 4: Q1 Review and Speedpay Strategic Opportunity
Q1 Review and Speedpay Strategic Opportunity Completion of Speedpay acquisition Speedpay brings immediate scale to ACI On Demand Significantly boosts recurring revenue Materially improves net adjusted EBITDA margin Unifies two leading platforms and brings together top talent Accelerates technical in
Slide 5: Combining assets to grow in e-commerce and Bill Pay
To achieve growth in e-commerce and Bill Pay we will combine our assets and invest in going after the fast growing subscription billing space Digital subscription – Digital subscription – Services p.a. We will create an MVP by combining merchant and Bill Pay solutions… Merchant Bill Pay Gateway solu
Slide 6: Financial Review
Scott Behrens Chief Financial Officer Financial Review
Slide 7: Q1 Financial Review: Bookings, Backlog, Revenue, Debt
*Adjusted for fx Bookings New bookings were $70 million and total bookings were $112 million Both down versus record bookings quarter in Q1 2018 Backlog* 12-month backlog of $813 million, up $3 million from Q4 2018 60-month backlog of $4.2 billion, down $22 million from Q4 2018 Revenue and Adjusted
Slide 8: Updated 2019 Guidance
Updated 2019 Guidance Speedpay expected to contribute between $215 million and $220 million in revenue and between $50 million and $55 million in Adjusted EBITDA to the remainder of 2019 These metrics exclude between $30 million and $35 million in significant transaction related expenses New booking
Slide 9: Updated 2019 Guidance: Other Assumptions
Updated 2019 Guidance Other 2019 Guidance Assumptions Interest expense of $65 million and cash interest of $60 million Capital expenditures to approximate $55 million Depreciation and amortization to approximate $130 million Non-cash compensation expense to approximate $35 million to $40 million Pas
Slide 10: Appendix
Appendix
Slide 11: $750M Speedpay Transaction Summary
$750M Speedpay Transaction Summary $750 million implies 2.2x Revenue and 8.0x EBITDA Valuation prior to consideration of: Tax benefit with NPV of ~$100 million Potential synergies Double digit accretive in first full year on an adjusted EPS basis Attractive Value* * Based on 2018 gross revenue and a
Slide 12: Monthly Recurring Revenue
Monthly Recurring Revenue AC UNIVERSAL PAYMENTS. Recurring Revenue (millions) Monthly SaaS and PaaS fees Maintenance fees Recurring Revenue Quarter Ended March 31, 2019 2018 $ 108.6 $ 104.3 55. 56. te
Slide 13: Historic Bookings By Quarter
Historic Bookings By Quarter
Slide 14: Adjusted EBITDA and Segmented Data
Adjusted EBITDA and Segmented Data
Slide 15: Adjusted Operating Free Cash Flow and 60-Month Backlog
Adjusted Operating Free Cash Flow and 60-Month Backlog
Slide 16: EPS Impact of Non-Cash and Significant Transaction Related Items
EPS Impact of Non-Cash and Significant Transaction Related Items
Slide 17: Contract Duration Metric
Contract Duration Metric Represents dollar average remaining contract life (in years) for term license software contracts Excludes perpetual contracts (primarily acquired software contracts) Excludes all On Demand contracts as both cash and revenue are ratable over the contract term
Slide 18: Non-GAAP financial measures explanation
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and non-cash compensation, that we believe a
Slide 19: Non-GAAP Financial Measures: Adjusted Operating Free Cash Flow
Non-GAAP Financial Measures ACI is also presenting adjusted 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, plus net after-tax payments associated with significant tra
Slide 20: Backlog definition and assumptions
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 license term for those contracts in
Slide 21: 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 “believes,” “will,” “expects,” “a
Slide 22: Forward-Looking Statements: Risk Factors
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 success of our Universal Payments strategy, demand for our produc