Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — FY2018 Earnings Presentation
22 slides from Aci Worldwide's earnings presentation, Feb 28, 2019
Slide 1: Quarterly and Full-Year Earnings and Speedpay Acquisition Presentation
QUARTERLY AND FULL-YEAR EARNINGS AND SPEEDPAY ACQUISITION PRESENTATION February 28, 2019 ACI Worldwide Exhibit 99.3
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: Year in Review
Phil Heasley Chief Executive Officer Year in Review
Slide 4: 2018 in Review
Full year new bookings up 22% from 2017 Full year total bookings up 15% from 2017 Cash flow from operations up 26% in 2018 Providing 2019 guidance; raising adjusted EBITDA outlook Acquiring Speedpay 2018 in Review
Slide 5: ACI to acquire Western Union's US-based bill payment business
ACI to acquire Western Union’s US-based bill payment business Transaction rationale of Speedpay is Compelling Acquisition includes approximately 270 billers and the intellectual property related to its platform Combines two strong electronic bill pay businesses, bringing together unparalleled vertic
Slide 6: Financial Review
Confidential Scott Behrens Chief Financial Officer Financial Review
Slide 7: Key Takeaways from 2018 Financial Results
*Adjusted for fx Bookings New bookings were $757 million, up 22% Total bookings were $1.26 billion, up 15% Backlog* 60-month backlog of $4.2 billion, up $9 million from Q3 2018 12-month backlog of $811 million, down $14 million from Q3 2018 Revenue and Adjusted EBITDA On Premise revenue declined 3%,
Slide 8: 2019 Guidance
2019 Guidance 2019 revenue and adjusted EBITDA quarterly phasing expected to be consistent with 2018 Q1 2019 revenue expected to be $205 million to $215 million New bookings growth expected to be in the upper single digits to low double digits 2019 adjusted operating free cash flow expected to be in
Slide 9: 2019 Guidance: Other Assumptions
2019 Guidance Other 2019 Guidance Assumptions Interest expense of $39 million and cash interest of $36 million Capital expenditures to approximate $50 million Depreciation and amortization to approximate $100 million Non-cash compensation expense to approximate $35 million Pass through interchange r
Slide 10: 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 11: Appendix
Appendix
Slide 12: Monthly Recurring Revenue
Monthly Recurring Revenue Quarter Ended December 31. 2018 2018 2017 As Reported Under Under Recurring Revenue (millions) ASC 606 ASC 605 ASC 605 Monthly SaaS and PaaS fees $ 110.6 $ = 110.2 $ 112.9 Maintenance fees 53.0 54.5 55.2 Monthly license fees = 247 20.4 Recurring Revenue $ 163.6 $189.4 $188.
Slide 13: Historic Bookings By Quarter
Historic Bookings By Quarter* * Numbers adjusted for CFS divestiture
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
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
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 non-GAAP measure 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: 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