Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Q2 2014 Earnings Presentation
25 slides from Aci Worldwide's earnings presentation, Jul 31, 2014
Slide 1: June 30, 2014 Quarterly Results Presentation
Exhibit 99.2 June 30, 2014 Quarterly Results Presentation July 31, 2014
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: Q2 2014 in Review
Q2 2014 in Review • SNET bookings up 16% • Revenue up 24% • Adjusted EBITDA up 46% • Continued market interest in Universal Payments • Pipeline strong across all regions • Announced acquisition of ReD • Reiterating organic guidance MEETS THE CHALLENGE OF CHANGE 4
Slide 5: Financial Review
FINANCIAL REVIEW Scott Behrens Chief Financial Officer
Slide 6: Key Takeaways from the Quarter
Key Takeaways from the Quarter • Sales Bookings – Q2 new sales bookings up 16%, or 14% excluding contribution from Official Payments • Backlog – 12-month backlog of $885 million, up $2 million from Q1 2014 – 60-month backlog of $3.92 billion, up $14 million from Q1 2014 • Revenue Growth – Non-GAAP r
Slide 7: Key Takeaways from the Quarter
Key Takeaways from the Quarter • Operating Expense – Operating expense increase driven primarily from inclusion of OPAY operations – OPAY contributed $33 million to Q2 operating expense – Incurred $4 million of expenses related to significant transaction related expenses • Operating Income and EBITD
Slide 8: 2014 Guidance
2014 Guidance 2014 Guidance Key Metrics Low High Non-GAAP Revenue $1,060 $1,080 Adjusted EBITDA $290 $300 $s in millions • Guidance – Sales, net of term extensions to grow in the upper single digits – Revenue and margin phasing by quarter consistent with seasonal history – Q3 non-GAAP revenue expect
Slide 9: Appendix
UNIVERSAL PAYMENTS ie APPENDIX
Slide 10: Monthly Recurring Revenue
Monthly Recurring Revenue Quarter Ended Monthly Recurring Revenue (millions) June 30, 2014 2013 Monthly Software license fees $23.0 $21.9 Maintenance fees 62.3 57.8 Processing services 105.6 68.6 Monthly Recurring Revenue $190.9 $148.3 MEETS THE CHALLENGE OF CHANGE 10
Slide 11: Historic Sales Bookings By Quarter 2012-2014
Historic Sales Bookings By Quarter 2012-2014 Sales Mix by Category Add-on Business New Accounts / inc. Capacity Total Economic New Upgrades & Quarter-End Value of Sales 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 (SNET)
Sales Bookings, Net of Term Extensions (SNET) Sales Net of Term Extensions Qtr Ended Qtr Ended % Growth or Channel Jun 14 Jun 13 Decline Americas $97,188 $82,376 18.0% EMEA 36,361 28,542 27.4% Asia-Pacific 16,827 18,260 -7.8% Total Sales (Net of Term Ext.) $150,377 $129,178 16.4% MEETS THE CHALLENGE
Slide 13: Non-GAAP Operating Income
Non-GAAP Operating Income Quarter Ended Non-GAAP Operating Income (millions) June 30, 2014 2013 Operating income $26.7 $11.5 Plus: Deferred revenue fair value adjustment 0.5 2.0 Employee related actions 1.4 2.4 Significant transaction related expenses 2.1 1.5 Non-GAAP Operating Income $ 30.7 $ 17.4
Slide 14: Adjusted EBITDA
Adjusted EBITDA Quarter Ended Adjusted EBITDA (millions) June 30, 2014 2013 Net income $11.2 $1.9 Plus: Income tax expense 2.4 2.3 Net interest expense 9.2 5.8 Net other expense 3.9 1.5 Depreciation expense 5.2 4.2 Amortization expense 15.3 12.7 Non-cash compensation expense 4.4 3.8 Adjusted EBITDA
Slide 15: Operating Free Cash Flow
Operating Free Cash Flow Reconciliation of Operating Free Cash Flow (millions) Quarter Ended June 30, 2014 2013 Net cash provided (used) by operating activities $33.1 $22.7 Payments associated with acquired opening 0.3 - balance sheet liabilties Net after-tax payments associated with employee- 0.9 2
Slide 16: 60-Month Backlog
60-Month Backlog Quarter Ended Backlog 60-Month (millions) June 30, June 30, 2014 2013 Americas $2,874 $2,117 EMEA 765 691 Asia/Pacific 285 276 Backlog 60-Month $3,924 $3,084 Deferred Revenue $190 $209 Other 3,734 2,875 Backlog 60-Month $3,924 $3,084 MEETS THE CHALLENGE OF CHANGE 16
Slide 17: Backlog as a Contributor of Quarterly Revenue
Backlog as a Contributor of Quarterly Revenue Quarter Ended June Backlog as Contributor of Revenue (thousands) 30, % Growth 2014 2013 Revenue from Backlog $ 244,240 $ 188,291 29.7% Revenue from Sales 10,568 17,539 -39.7% Total Revenue $ 254,808 $ 205,830 23.8% Revenue from Backlog 96% 91% Revenue fr
Slide 18: Non-Cash Compensation, Acquisition Intangibles and Software, and Significant Transaction Related Expenses
Non-Cash Compensation, Acquisition Intangibles and Software, and Significant Transaction Related Expenses Acquisition Intangibles & Software, Non-cash equity based compensation Quarter Ended (millions) June 30, 2014 2013 $ in Millions $ in Millions EPS Impact EPS Impact (Net of Tax) (Net of Tax) Sig
Slide 19: 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 hosted contracts as both cash and revenue are ratable over the contract term M
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: Universal Payments
UNIVERSAL PAYMENTS hC