Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — FY2017 Earnings Presentation
23 slides from Aci Worldwide's earnings presentation, Feb 22, 2018
Slide 1: Quarterly and Full-Year Earnings Presentation
QUARTERLY AND FULL-YEAR EARNINGS PRESENTATION February 22, 2018 ACI Worldwide Confidential 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: Year in Review
Phil Heasley Chief Executive Officer Year in Review
Slide 4: 2017 in Review
Revenue up 3% Adjusted EBITDA up 9%, representing a 200 bps improvement over 2016 UP strategy validated in 2017 New two P&L segments position ACI strategically Major solution releases in 2017 Strong start in 2018 2017 in Review
Slide 5: Financial Review
Confidential Scott Behrens Chief Financial Officer Financial Review
Slide 6: Key Takeaways from the Year
*Adjusted for FX and CFS divestiture Bookings New bookings were $619 million and total bookings were $1.093 billion Strong start in 2018 Backlog* 60-month backlog of $4.1 billion, up $16 million from Q3 2017 12-month backlog of $825 million, down $10 million from Q3 2017 Revenue and Adjusted EBITDA
Slide 7: US Tax Cut and Jobs Act and New Revenue Recognition Standard
US Tax Cut and Jobs Act Impact to Q4 2017 financials Non-cash charge for revaluation of net deferred tax assets of $16 million Cash charge for unremitted foreign earnings of $21 million Expect to utilize foreign tax credits to cover cash impact thus no impact to 2018 free cash flow Fiscal 2018 effec
Slide 8: 2018 Guidance
2018 Guidance Effective January 1, 2018, the company adopted Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition (“ASC 605”). The company expects the adoption of AS
Slide 9: Other 2018 Guidance Assumptions
2018 Guidance Other 2018 Guidance Assumptions New bookings growth expected to be in the low double digits Interest expense of $37 million and cash interest of $34 million Capital expenditures to approximate $50 million Depreciation and amortization expected to approximate $100 million Non-cash compe
Slide 10: Outlook 2019 and 2020
Outlook 2019 and 2020 Adjusted EBITDA Outlook Expect to continue to get margin expansion through scale and focus on “Rule of 40” in our On Demand business 2019 adjusted EBITDA targeted to be in a range of $300 million to $315 million 2020 adjusted EBITDA targeted to be in a range of $335 million to
Slide 11: Appendix
Appendix
Slide 12: Monthly Recurring Revenue
Monthly Recurring Revenue Quarter Ended Recurring Revenue (millions) December 31, 2017 2016 Monthly SaaS and Platform fees 1129 $ 101.1 Maintenance fees 55.2 58.1 Monthly license fees 20.4 16.8 Recurring Revenue 188.5 $ 176.0 CFS contribution : : Recurring Revenue 188.5 $ 176.0 Year Ended Recurring
Slide 13: Historic Bookings By Quarter
Confidential Historic Bookings By Quarter* * Numbers adjusted for CFS divestiture
Slide 14: Adjusted EBITDA
el Adjusted EBITDA Adjusted EBITDA (millions) Quarter 34, Year 34 2017 2016 2017 2016 Net income $ 332 8 667 § St 1295] Plus: Income tax expense 28.9 43.2 15 56.0) Tax reform transition ta 20.9 - 20.9 - Tax reform hose of deferred tax balances 16.0 - 16.0 : Net interest e» 87 10.1 38.4 30.6 other ex
Slide 15: Adjusted Operating Free Cash Flow
Adjusted Operating Free Cash Flow
Slide 16: 60-Month Backlog
60-Month Backlog AC Backlog 60-Month (millions) ACI On Premise ACI On Demand Backlog 60-Month Deferred Revenue Backlog 60-Month Quarter Ended December 31, 2017 September 30, 2017 1,700 $1,707| 404 $4,104 $4,075] $160 $157| 3,944 3,918] 104 $4,075] Backlog 60-Month (millions) ACI On Premise $1,700 AC
Slide 17: EPS Impact of Non-Cash and Significant Transaction Related Items
EPS Impact of Non-Cash and Significant Transaction Related Items
Slide 18: Contract Duration Metric
Contract Duration Metric Represents dollar average remaining contract life (in years) for term license software contracts Excludes perpetual contracts (primarily heritage S1 licensed software contracts) Excludes all On Demand contracts as both cash and revenue are ratable over the contract term
Slide 19: 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 20: 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 21: 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 22: 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 23: 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