Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Q2 2010 Earnings Presentation
35 slides from Aci Worldwide's earnings presentation, Jul 29, 2010
Slide 1: June 30, 2010 Quarterly Results
June 30, 2010 Quarterly Results July 29, 2010
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- lo
Slide 3: Trademarks
Trademarks ACI, the ACI logo, BASE24 and BASE24-eps are registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States and/or other countries. ACI Agile Payments Solution, ACI Money Transfer System, ACI Issuer, ACI Acquirer and ACI Interchange have pending registratio
Slide 4: Presenters and Q&A participants
Phil Heasley, Chief Executive Officer Louis Blatt, Chief Product Officer Scott Behrens, Chief Financial Officer Q&A: Phil Heasley, Scott Behrens, Louis Blatt, Ralph Dangelmaier and Tony Scotto
Slide 5: Overview
Overview Phil Heasley, Chief Executive Officer
Slide 6: Q2 2010 Update
Q2 2010 Update Significantly stronger margin performance compared to prior- year quarter Strong expense management Stronger recurring revenue Sales increased by 11% led by doubling of add-on sales Tracking to full year guidance
Slide 7: Business Review
Louis Blatt, Chief Product Officer Business Review
Slide 8: Overall Market View
Overall Market View Pipeline of significant deals strengthening Positive customer feedback at recent user group meetings Growth in rolling 12 month pipeline compared to prior quarter Increase in opportunities greater than $5 million total contract value driven by: Convergence and consolidation Evolu
Slide 9: Stronger Business Performance Across All Metrics
Stronger Business performance across all metrics Q2 Sales of $108 million, rise of $11 million over Q2-09 Predicated on extremely strong add-on sales to existing customers Significant wholesale wins across the U.S. market Services deals signed in wholesale in the EMEA market Sales net of term extens
Slide 10: Geographic Sales Highlights
Geographic Sales Highlights Sales driven by 31% improvement in sales net of term extensions due to strength of add-on module and upgrade purchasing. 60% of Americas Q2-10 sales were net of term as a result of strong sales in retail, wholesale, and tools 70% of both EMEA and Asia-Pacific sales result
Slide 11: Agile Payments Solution Product Sales
Agile Payments SolutionTM Product Sales
Slide 12: Alliances & Partnerships
Alliances & Partnerships Continuing to review high growth markets and distribution strategy Working with partners to provide customer choice Continue migration and consolidations with IBM Middle East Japan
Slide 13: Financial Review
Financial Review Scott Behrens, Chief Financial Officer
Slide 14: Key Takeaways From The Quarter
Key Takeaways From The Quarter Revenue rose $5.3 million; achieved $92.4 million in the current quarter versus $87.2 million in June 2009 quarter Higher maintenance, monthly license fees and capacity revenues Continuing trend of recurring revenue growth - achieved a rise of $5.2 million in monthly r
Slide 15: Takeaways From The Quarter (continued)
Takeaways From The Quarter (continued) Sales dollars were higher than in prior-year second quarter Led by strength of implementation services and capacity in Americas and EMEA Flat OFCF due to strong Q1-10 cash collections which moved cash collection forward in calendar year FX loss of $1.7 million
Slide 16: Backlog is Still a Significant Contributor to Current Period Revenue
Backlog is Still a Significant Contributor to Current Period Revenue Q2 remains biased towards backlog revenue Large capacity deals in Americas and EMEA contributed to higher revenue from sales in the quarter Backlog revenue growth favorably impacted by continued rise in maintenance year-over-year
Slide 17: Re-affirmation of 2010 Guidance
Re-affirmation of 2010 Guidance Operating EBITDA = operating income + Depreciation & Amortization + non-cash compensation non-cash compensation non-cash compensation
Slide 18: Appendix
Appendix
Slide 19: Q1 2010 Channel Sales Results
Q1 2010 Channel Sales Results Sales (net of Term Extensions) Term Extension Sales Total Sales
Slide 20: Historic Sales By Quarter 2009-2010
Historic Sales By Quarter 2009-2010
Slide 21: Operating Free Cash Flow
Operating Free Cash Flow ($ millions) Quarter Ended June 30, Quarter Ended June 30, 2010 2009 Net cash provided by operating activities* $3.5 $16.6 Adjustments: Less capital expenditures (2.4) (1.1) Less Alliance technical enablement expenditures (1.3) (1.9) Operating Free Cash Flow $(0.2) $13.6 *OF
Slide 22: 60-Month Backlog
60-Month Backlog ($ millions) Quarter Ended Quarter Ended Quarter Ended June 30, 2010 March 31, 2010 December 31, 2009 Americas $864 $851 $850 EMEA 475 480 510 Asia/Pacific 176 176 157 Backlog 60-Month $1,515 $1,507 $1,517 ACI Deferred Revenue $150 $144 $138 ACI Other 1,365 1,363 1,379 Backlog 60-Mo
Slide 23: Revenues by Channel
Revenues by Channel ($ millions) Quarter Ended June 30, Quarter Ended June 30, 2010 2009 Revenues: United States $38.0 $ 34.6 Americas International 12.2 11.6 Americas $50.2 $46.2 EMEA 30.4 29.7 Asia/Pacific 11.8 11.3 Revenues $92.4 $87.2
Slide 24: Monthly Recurring Revenue
Monthly Recurring Revenue ($ millions) Quarter Ended June 30, Quarter Ended June 30, 2010 2009 Monthly Software License Fees $20.3 $16.8 Maintenance Fees 34.2 31.9 Processing Services 10.5 11.1 Monthly Recurring Revenue $65.0 $59.8
Slide 25: Deferred Revenue & Expense
Deferred Revenue & Expense ($ millions) Quarter Ended Quarter Ended Quarter Ended Quarter Ended June 30, 2010 March 31, June 30, 2009 March 31, 2010 2009 Short Term Deferred Revenue $113.3 $106.9 $107.7 $111.5 Long Term Deferred Revenue 37.1 37.3 32.4 25.7 Total Deferred Revenue $150.4 $144.2 $140.1
Slide 26: Non-Cash Compensation, Acquisition Intangibles and Non-Recurring Items
Non-Cash Compensation, Acquisition Intangibles and Non-Recurring Items Quarter ended June 30, 2010 Quarter ended June 30, 2010 Quarter ended June 30, 2009 Quarter ended June 30, 2009 EPS Impact* $ in Millions EPS Impact* $ in Millions Amortization of acquisition-related intangibles 0.03 1.0 0.03 1.0
Slide 27: Other Income / Expense
Other Income / Expense ($ millions) Quarter Ended Quarter Ended Quarter Ended Quarter Ended June 30, 2010 March 31, 2010 June 30, 2009 March 31, 2009 Interest Income $0.1 $0.1 $0.4 $0.3 Interest Expense ($0.5) ($0.5) ($0.5) (0.8) FX Gain / Loss ($1.7) $0.1 ($4.3) (0.7) Interest Rate Swap Loss $0.0 (
Slide 28: Operating EBITDA
Operating EBITDA Quarter Ended June 30, 2010 Quarter Ended June 30, 2009 Operating Income/(Loss) $4.4 ($3.2) Depreciation Expense 1.7 1.6 Amortization Expense 4.9 4.1 Non-Cash Compensation Expense 1.8 2.0 Operating EBITDA $12.8 $4.5 Operating EBITDA is defined as operating income/(loss) plus depreci
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI is presenting operating free cash flow, which is defined as net cash provided (used) by operating activities, less capital expenditures and plus or minus net proceeds from IBM. Operating free cash flow is considered a non- GAAP financial measure as defined by SEC Regu
Slide 30: Backlog estimates definition
ACI also includes backlog estimates which are all software license fees, maintenance fees and services specified in executed contracts, as well as revenues from assumed contract renewals to the extent that we believe recognition of the related revenue will occur within the corresponding backlog peri
Slide 31: Estimates of future financial results are inherently unreliable
Estimates of future financial results are inherently unreliable. Our backlog estimates require substantial judgment and are based on a number of assumptions as described above. These assumptions may turn out to be inaccurate or wrong, including for reasons outside of management's control. For exampl
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management general
Slide 33: 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 34: 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, risks related to the global financial crisis, restrictions and ot
Slide 35: Every Second. Every Day.
Ml EVERY SECOND. EVERY DAY.