LiveRamp (RAMP) 8-K Acxiom Announces Fourth Quarter and Fiscal Year Results

For more information, contact:

Lauren Dillard

Acxiom Investor Relations

(650) 372-2242

investor.relations@acxiom.com

EACXM

ACXIOM ANNOUNCES FOURTH QUARTER AND FISCAL YEAR RESULTS

Connectivity Revenue Exceeds $60 Million for the Year

LITTLE ROCK, Ark. – May 21, 2015 Acxiom® (Nasdaq: ACXM), an enterprise data, analytics and software-as-a-service company, today announced financial results for its fourth quarter and full year ended March 31, 2015.

Fourth Quarter Financial Highlights

Total revenue was $257 million, down 4% compared to the fourth quarter of fiscal 2014 as a result of expected IT Infrastructure Management declines.

·   Marketing and Data Services revenue was $206 million, down 2% compared to the fourth quarter of last year. Connectivity revenue, which is included in Marketing and Data Services, was $22 million, up $17 million or 367% compared to the same period a year ago.

·   IT Infrastructure Management revenue was $52 million, down approximately 12% compared to the prior year period.

GAAP loss per share was lower as a result of unusual items associated with European restructuring activities in the prior year.

·   Net loss per share from continuing operations was $0.08 compared to a net loss of $0.33 a year ago. Unusual items, non-cash compensation and intangible asset amortization impacted GAAP earnings per share by $0.32 in the quarter. Unusual items included expenses associated with the Company’s restructuring activities as well as separation and transformation initiatives.

·   Operating cash flow from continuing operations was $34 million, down 15% compared to the same period a year ago. Free cash flow to equity was $4 million compared to $15 million for the prior year period.

Non-GAAP operating income and diluted earnings per share were down as a result of declines in International Marketing and Data Services.

·   Non-GAAP diluted earnings per share were $0.24 compared to $0.26 a year ago. Earnings per share in the current period were positively impacted by a tax adjustment resulting in a $0.04 improvement.

·   Non-GAAP operating income was $31 million, down from $35 million for the same period last year.

Fiscal Year 2015 Financial Highlights

Total revenue was $1,020 million, down 4% compared to $1,062 million in fiscal 2014 as a result of expected IT Infrastructure Management declines.

1

·   Marketing and Data Services revenue was $805 million, roughly flat compared to the prior year. Connectivity revenue was $63 million, up $48 million or 326% compared to fiscal 2014.

·   IT Infrastructure Management revenue was down year-over-year approximately 16%.

GAAP loss per share was down due to expenses associated with business separation and transformation activities, non-cash compensation and acquired intangible asset amortization, as well as declines in IT Infrastructure Management.

·   Net loss per share from continuing operations was $0.12 compared to earnings per share of $0.14 a year ago. Unusual items, non-cash compensation and intangible asset amortization impacted GAAP earnings per share by $0.90 for the year. Unusual items included expenses associated with the Company’s restructuring activities as well as separation and transformation initiatives.

·   Operating cash flow from continuing operations was $105 million, down 36% compared to the prior year. The decline was driven by changes in working capital, and to a lesser extent, lower earnings.

·   Free cash flow to equity was negative $10 million compared to $76 million last year. The decline was primarily due to lower operating cash flow and higher capital expenditures.

Non-GAAP operating income and diluted earnings per share were down as a result of the declines in the IT Infrastructure Management business.

·   Non-GAAP diluted earnings per share were $0.78 compared to $0.95 in the prior year. Earnings per share in both periods were positively impacted by a tax adjustment resulting in a $0.04 improvement.

·   Non-GAAP operating income was $105 million, down from $126 million in fiscal 2014.

Non-GAAP results exclude unusual items, non-cash compensation and acquired intangible asset amortization. A reconciliation between GAAP and non-GAAP results is attached to this release.

“Connectivity’s strong performance in the fourth quarter capped off a year of explosive adoption and growth,” said Acxiom CEO Scott Howe. “Our focus in fiscal 2016 is on aggressively extending our early lead in onboarding and Connectivity, and returning our Marketing and Data Services business to a position of growth.”

Fourth Quarter Business Highlights

·   The Company added 20 new Connectivity customers during the quarter including several major advertisers and marketing applications.Customers can now onboard and distribute data to a growing universe of over 140 leading publishers and marketing applications.

·   Acxiom joined the newly renamed Facebook Marketing Partners Program. As part of this program, Acxiom’s audience data and onboarding capabilities are available to Facebook marketers globally.

·   The Company expanded its global data partnership with Twitter during the quarter. Twitter’s behavior targeting and partner audiences program will leverage Acxiom’s third party data to power its advertising reach. Advertisers are now able to select from 135 Acxiom audience categories to define or find a group of users on Twitter.

·   Acxiom appointed Rick Erwin as President and General Manager of Audience Solutions, a newly formed business unit comprised of the Company’s Data and Decision Sciences assets. With over two decades of marketing services experience, Erwin, a leading voice in the field of data-driven marketing, will be responsible for driving the strategy, growth and profitability of Acxiom’s industry-leading data and recognition products and services.

2

·  Subsequent to quarter-end, Acxiom entered into a definitive agreement to sell its IT Infrastructure Management business to Charlesbank Capital Partners and co-investor M/C Partners for total cash consideration of up to $190 million. The sale will allow the Company to focus more sharply on its Marketing and Data Services business.

Financial Outlook

The Company’s guidance excludes the IT Infrastructure Management business as it will be reported as a discontinued operation beginning in the first quarter of fiscal 2016. It also excludes the impact of unusual items, non-cash compensation and acquired intangible asset amortization. Acxiom’s estimates for fiscal 2016 are as follows:

·   Revenue from continuing operations in the range of $815 million to $840 million.

· Earnings per diluted share from continuing operations in the range of $0.45 to $0.50.

Conference Call

Acxiom will hold a conference call at 4:00 p.m. CDT today to further discuss this information. Interested parties are invited to listen to the call, which will be broadcast via the Internet at www.acxiom.com. A slide presentation will be referenced during the call and can be accessed here.

About Acxiom

Acxiom is an enterprise data, analytics and software-as-a-service company that uniquely fuses trust, experience and scale to fuel data-driven results. For over 40 years, Acxiom has been an innovator in harnessing the most important sources and uses of data to strengthen connections between people, businesses and their partners. Utilizing a channel and media neutral approach, we leverage cutting-edge, data-oriented products and services to maximize customer value. Every week, Acxiom powers more than a trillion transactions that enable better living for people and better results for our 7,000+ global clients. For more information about Acxiom, visit Acxiom.com.

Forward-Looking Statements

This release and today’s conference call may contain forward-looking statements including, without limitation, statements regarding expected levels of revenue and earnings per share, the impact of a sale of ITO. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. The following are factors, among others, that could cause actual results to differ materially from these forward-looking statements: the possibility that the ITO transaction might not close, or close within the anticipated time frame, due to a failure of one or more closing conditions; the possibility that the expected revenue from the divisions may not be realized within the expected timeframe; the possibility that certain contracts may not generate the anticipated revenue or profitability or may not be closed within the anticipated time frames; the possibility that significant customers may experience extreme, severe economic difficulty or otherwise reduce or cancel the amount of business they do with us; the possibility that we will not successfully complete customer contract requirements on time or meet the service levels specified in the contracts, which may result in contract penalties or lost revenue; the possibility that data suppliers might withdraw data from us, leading to our inability to provide certain products and services to our clients; the possibility that we may not be able to attract, retain or motivate qualified technical, sales and leadership associates, or that we may lose key associates; the possibility that we may not be able to adequately adapt to rapidly changing computing environments, technologies and marketing practices; the possibility that we will not be able to continue to receive credit upon satisfactory terms and conditions; the possibility that negative changes in economic conditions in general or other conditions might lead to a reduction in demand for our products and services; the possibility that there will be changes in consumer or business information industries and markets that negatively impact the company; the possibility that the historical seasonality of our business may change; the possibility that we will not be able to achieve anticipated cost reductions and avoid unanticipated costs; the possibility that the fair value of certain of our assets may not be equal to the carrying value of those assets now or in future time periods; the possibility that unusual charges may be incurred; the possibility that changes in accounting pronouncements may occur and may impact these forward-looking statements; the possibility that we may encounter difficulties when entering new markets or industries; the possibility that we could experience loss of data center capacity or interruption of telecommunication links; the possibility that new laws may be enacted which limit our ability to provide services to our clients and/or which limit the use of data; and other risks and uncertainties, including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, including our current reports on Form 8-K, quarterly reports on Form 10-Q and annual reports on Form 10-K, particularly the discussion under the caption “Item 1A, RISK FACTORS” in our Annual Report on Form 10-K for the year ended March 31, 2014, which was filed with the Securities and Exchange Commission on May 28, 2014.

3

With respect to the provision of products or services outside our primary base of operations in the United States, all of the above factors apply, along with the difficulty of doing business in numerous sovereign jurisdictions due to differences in scale, competition, culture, laws and regulations.

We undertake no obligation to update the information contained in this press release or any other forward-looking statement.

Acxiom is a registered trademark of Acxiom Corporation.

To automatically receive Acxiom Corporation financial news by email, please visit www.acxiom.com and subscribe to email alerts.

4 

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
	For the Three Months Ended
	March 31,
							$				%
	2015			2014			Variance			Variance
Revenue:
Marketing and data services		205,734			209,746			(4,012	)		(1.9	%)
IT Infrastructure management services		51,633			58,816			(7,183	)		(12.2	%)
Total revenue		257,367			268,562			(11,195	)		(4.2	%)
Operating costs and expenses:
Cost of revenue		206,120			198,920			7,200			3.6	%
Selling, general and administrative		43,795			45,519			(1,724	)		(3.8	%)
Impairment of goodwill and other		-			24,953			(24,953	)		(100.0	%)
Gains, losses and other items, net		12,077			10,673			1,404			13.2	%
Total operating costs and expenses		261,992			280,065			(18,073	)		(6.5	%)
Loss from operations		(4,625	)		(11,503	)		6,878			59.8	%
% Margin		-1.8	%		-4.3	%
Other income (expense):
Interest expense		(2,474	)		(2,558	)		84			3.3	%
Other, net		(763	)		579			(1,342	)		(231.8	%)
Total other income (expense)		(3,237	)		(1,979	)		(1,258	)		(63.6	%)
Loss from continuing operations before income taxes		(7,862	)		(13,482	)		5,620			41.7	%
Income taxes		(1,809	)		12,045			(13,854	)		(115.0	%)
Net loss from continuing operations		(6,053	)		(25,527	)		19,474			76.3	%
Earnings (loss) from discontinued operations, net of tax		14			(3,696	)		3,710			100.4	%
Net loss		(6,039	)		(29,223	)		23,184			79.3	%
Less: Net earnings attributable to noncontrolling interest		-			-			-			-
Net loss attributable to Acxiom		(6,039	)		(29,223	)		23,184			79.3	%
Basic loss per share:
Net loss from continuing operations		(0.08	)		(0.33	)		0.26			76.6	%
Earnings (loss) from discontinued operations		-			(0.05	)		0.05			100.0	%
Net loss		(0.08	)		(0.38	)		0.30			78.9	%
Net loss attributable to Acxiom stockholders		(0.08	)		(0.38	)		0.31			79.6	%
Diluted loss per share:
Net loss from continuing operations		(0.08	)		(0.33	)		0.26			76.6	%
Earnings (loss) from discontinued operations		-			(0.05	)		0.05			100.0	%
Net loss		(0.08	)		(0.38	)		0.30			78.9	%
Net loss attributable to Acxiom stockholders		(0.08	)		(0.38	)		0.31			79.6	%

5 

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
	For the Twelve Months Ended
	March 31
							$				%
	2015			2014			Variance			Variance
Revenue:
Marketing and data services		804,911			805,153			(242	)		(0.0	%)
IT Infrastructure management services		215,148			257,125			(41,977	)		(16.3	%)
Total revenue		1,020,059			1,062,278			(42,219	)		(4.0	%)
Operating costs and expenses:
Cost of revenue		807,469			795,562			11,907			1.5	%
Selling, general and administrative		188,561			169,376			19,185			11.3	%
Impairment of goodwill and other		-			24,953
Gains, losses and other items, net		24,633			21,914			2,719			12.4	%
Total operating costs and expenses		1,020,663			1,011,805			8,858			0.9	%
Income from operations		(604	)		50,473			(51,077	)		(101.2	%)
% Margin		-0.1	%		4.8	%
Other income (expense):
Interest expense		(10,050	)		(11,671	)		1,621			13.9	%
Other, net		(1,325	)		1,817			(3,142	)		(172.9	%)
Total other income (expense)		(11,375	)		(9,854	)		(1,521	)		(15.4	%)
Earnings (loss) from continuing operations before income taxes		(11,979	)		40,619			(52,598	)		(129.5	%)
Income taxes		(2,832	)		29,627			(32,459	)		(109.6	%)
Net earnings (loss) from continuing operations		(9,147	)		10,992			(20,139	)		(183.2	%)
Loss from discontinued operations, net of tax		(1,884	)		(2,189	)		305			13.9	%
Net earnings (loss)		(11,031	)		8,803			(19,834	)		(225.3	%)
Less: Net loss attributable to noncontrolling interest		-			(60	)		60			100.0	%
Net earnings (loss) attributable to Acxiom		(11,031	)		8,863			(19,894	)		(224.5	%)
Basic earnings (loss) per share:
Net earnings (loss) from continuing operations		(0.12	)		0.15			(0.27	)		(180.6	%)
Earnings (loss) from discontinued operations		(0.02	)		(0.03	)		0.01			33.3	%
Net earnings (loss)		(0.14	)		0.12			(0.26	)		(216.7	%)
Net earnings (loss) attributable to Acxiom stockholders		(0.14	)		0.12			(0.26	)		(220.6	%)
Diluted earnings (loss) per share:
Net earnings (loss) from continuing operations		(0.12	)		0.14			(0.26	)		(183.1	%)
Earnings (loss) from discontinued operations		(0.02	)		(0.03	)		0.01			33.3	%
Net earnings (loss)		(0.14	)		0.11			(0.25	)		(227.3	%)
Net earnings (loss) attributable to Acxiom stockholders		(0.14	)		0.12			(0.26	)		(224.2	%)

6 

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP EPS
(Unaudited)
(Dollars in thousands, except earnings per share)
	For the Three Months Ended						For the Twelve Months Ended
	March 31,						March 31,
	2015			2014			2015			2014
Earnings (loss) from continuing operations before income taxes		(7,862	)		(13,482	)		(11,979	)		40,619
Income taxes		(1,809	)		12,045			(2,832	)		29,627
Net earnings (loss) from continuing operations		(6,053	)		(25,527	)		(9,147	)		10,992
Earnings (loss) from discontinued operations, net of tax		14			(3,696	)		(1,884	)		(2,189	)
Net earnings (loss)		(6,039	)		(29,223	)		(11,031	)		8,803
Less: Net earnings (loss) attributable to noncontrolling interest		-			-			-			(60	)
Net earnings (loss) attributable to Acxiom		(6,039	)		(29,223	)		(11,031	)		8,863
Earnings (loss) per share attributable to Acxiom stockholders:
Basic		(0.08	)		(0.38	)		(0.14	)		0.12
Diluted		(0.08	)		(0.38	)		(0.14	)		0.12
Unusual items:
Legal settlement accruals (gains, losses, and other)		-			-			-			4,200
Purchased intangible asset amortization  (cost of revenue)		3,779			68			11,446			340
Live Ramp acquisition costs (gains, losses, and other)		-			-			820			-
Impairment of goodwill and other assets		-			24,953			-			24,953
Non-cash stock compensation (cost of revenue and SG&A)		8,348			3,581			28,886			13,925
Restructuring charges and other adjustments (gains, losses, and other)		12,077			10,673			23,813			17,714
Separation and transformation costs (SG&A)		7,044			6,924			36,488			14,007
Accelerated amortization (cost of revenue)		4,316			-			4,316			-
Gain on investment (other income)		-			-			-			(2,567	)
Total unusual items, continuing operations		35,564			46,199			105,769			72,572
Earnings from continuing operations before income taxes
and excluding unusual items		27,702			32,717			93,790			113,191
Income taxes		8,706			12,474			32,653			40,015
Non-GAAP earnings from continuing operations		18,996			20,243			61,137			73,176
Earnings from discontinued operations, net of tax		-			-			-			-
Non-GAAP net earnings		18,996			20,243			61,137			73,176
Less: Net loss attributable to noncontrolling interest		-			-			-			(60	)
Non-GAAP Net earnings attributable to Acxiom		18,996			20,243			61,137			73,236
Non-GAAP earnings per share attributable to Acxiom stockholders:
Basic		0.25			0.27			0.79			0.98
Diluted		0.24			0.26			0.78			0.95
Basic weighted average shares		77,427			76,293			77,106			74,690
Diluted weighted average shares		79,027			78,450			78,495			76,954

7 

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INCOME FROM OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
	For the Three Months Ended						For the Twelve Months Ended
	March 31,						March 31,
	2015			2014			2015			2014
Income from operations		(4,625	)		(11,503	)		(604	)		50,473
Unusual items		35,564			46,199			105,769			75,139
Income from operations before unusual items		30,939			34,696			105,165			125,612

8 

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)
	For the Three Months Ended
	March 31,			March 31,
	2015			2014
Basic loss per share from continuing operations:
Numerator - net loss		(6,053	)		(25,527	)
Denominator - weighted-average shares outstanding		77,427			76,293
Basic loss per share		(0.08	)		(0.33	)
Basic loss per share - net earnings attributable to Acxiom stockholders:
Numerator - net loss attributable to Acxiom		(6,039	)		(29,223	)
Denominator - weighted-average shares outstanding		77,427			76,293
Basic loss per share - net loss attributable to Acxiom stockholders		(0.08	)		(0.38	)
Diluted loss per share from continuing operations:
Numerator - net loss		(6,053	)		(25,527	)
Denominator - weighted-average shares outstanding		77,427			76,293
Dilutive effect of common stock options, warrants and restricted stock		-			-
		77,427			76,293
Diluted loss per share from continuing operations		(0.08	)		(0.33	)
Diluted loss per share - net earnings attributable to Acxiom stockholders:
Numerator - net loss attributable to Acxiom		(6,039	)		(29,223	)
Denominator - weighted-average shares outstanding		77,427			76,293
Dilutive effect of common stock options, warrants, and restricted stock		-			-
		77,427			76,293
Diluted loss per share - net loss attributable to Acxiom stockholders		(0.08	)		(0.38	)

9 

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
(In thousands, except earnings per share)
	For the Twelve Months Ended
	March 31,			March 31,
	2015			2014
Basic earnings (loss) per share from continuing operations:
Numerator - net earnings (loss)		(9,147	)		10,992
Denominator - weighted-average shares outstanding		77,106			74,690
Basic earnings (loss) per share		(0.12	)		0.15
Basic earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders:
Numerator - net earnings (loss) attributable to Acxiom		(11,031	)		8,863
Denominator - weighted-average shares outstanding		77,106			74,690
Basic earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders		(0.14	)		0.12
Diluted earnings (loss) per share from continuing operations:
Numerator - net earnings (loss)		(9,147	)		10,992
Denominator - weighted-average shares outstanding		77,106			74,690
Dilutive effect of common stock options, warrants and restricted stock		-			2,264
		77,106			76,954
Diluted earnings (loss) per share from continuing operations		(0.12	)		0.14
Diluted earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders:
Numerator - net earnings (loss) attributable to Acxiom		(11,031	)		8,863
Denominator - weighted-average shares outstanding		77,106			74,690
Dilutive effect of common stock options, warrants, and restricted stock		-			2,264
		77,106			76,954
Diluted earnings (loss) per share - net earnings (loss) attributable to Acxiom stockholders		(0.14	)		0.12

10 

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	March 31,			March 31,
Revenue:	2015			2014
Marketing and data services		205,734			209,746
IT Infrastructure management services		51,633			58,816
Total revenue		257,367			268,562
Income from continuing operations:
Marketing and data services		13,356			27,244
IT Infrastructure management services		5,456			3,803
Corporate		(23,437	)		(42,550	)
Total loss from continuing operations		(4,625	)		(11,503	)
Margin:
Marketing and data services		6.5	%		13.0	%
IT Infrastructure management services		10.6	%		6.5	%
Total margin		-1.8	%		-4.3	%

11 

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
	For the Twelve Months Ended
	March 31,			March 31,
Revenue:	2015			2014
Marketing and data services		804,911			805,153
IT Infrastructure management services		215,148			257,125
Total revenue		1,020,059			1,062,278
Income from continuing operations:
Marketing and data services		46,728			78,500
IT Infrastructure management services		18,105			32,847
Corporate		(65,437	)		(60,874	)
Total income from continuing operations		(604	)		50,473
Margin:
Marketing and data services		5.8	%		9.7	%
IT Infrastructure management services		8.4	%		12.8	%
Total margin		-0.1	%		4.8	%

12 

ACXIOM CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP SEGMENT RESULTS
(Unaudited)
(Dollars in thousands, except earnings per share)
	For the Three Months Ended						For the Twelve Months Ended
	March 31,						March 31,
	2015			2014			2015			2014
Marketing and data services income from operations		13,356			27,244			46,728			78,500
Unusual items:
Purchased intangible asset amortization		3,779			68			11,446			340
Non-cash stock compensation		8,594			2,772			26,927			10,699
Marketing and data services income
from operations before unusual items		25,729			30,084			85,101			89,539
Margin		12.5	%		14.3	%		10.6	%		11.1	%
IT infrastructure management services income
from operations		5,456			3,803			18,105			32,847
Unusual items:
Non-cash stock compensation		(246	)		809			1,959			3,226
IT infrastructure management services income
from operations before unusual items		5,210			4,612			20,064			36,073
Margin		10.1	%		7.8	%		9.3	%		14.0	%

13 

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
	March 31,			March 31,			$				%
	2015			2014			Variance			Variance
Assets
Current assets:
Cash and cash equivalents		141,010			418,586			(277,576	)		(66.3	%)
Trade accounts receivable, net		162,639			160,718			1,921			1.2	%
Deferred income taxes		28,372			12,870			15,502			120.5	%
Refundable income taxes		5,239			11,535			(6,296	)		(54.6	%)
Restricted cash held in escrow		31,000			-			31,000			100.0	%
Other current assets		45,682			54,484			(8,802	)		(16.2	%)
Assets of discontinued operations		112			7,332			(7,220	)		(98.5	%)
Total current assets		414,054			665,525			(251,471	)		(37.8	%)
Property and equipment		723,006			852,236			(129,230	)		(15.2	%)
Less - accumulated depreciation and amortization		502,416			635,330			(132,914	)		(20.9	%)
Property and equipment, net		220,590			216,906			3,684			1.7	%
Software, net of accumulated amortization		68,962			39,425			29,537			74.9	%
Goodwill		568,870			358,384			210,486			58.7	%
Purchased software licenses, net of accumulated amortization		13,494			18,584			(5,090	)		(27.4	%)
Other assets, net		36,454			24,477			11,977			48.9	%
		1,322,424			1,323,301			(877	)		(0.1	%)
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt		32,885			28,567			4,318			15.1	%
Trade accounts payable		38,951			36,179			2,772			7.7	%
Accrued payroll and related expenses		39,026			62,182			(23,156	)		(37.2	%)
Other accrued expenses		67,867			70,412			(2,545	)		(3.6	%)
Acquisition escrow payable		31,000			-			31,000			100.0	%
Deferred revenue		37,278			47,638			(10,360	)		(21.7	%)
Income taxes		-			241			(241	)		(100.0	%)
Liabilities of discontinued operations		1,008			4,250			(3,242	)		(76.3	%)
Total current liabilities		248,015			249,469			(1,454	)		(0.6	%)
Long-term debt		254,539			289,043			(34,504	)		(11.9	%)
Deferred income taxes		103,391			90,226			13,165			14.6	%
Other liabilities		13,222			11,706			1,516			13.0	%
Stockholders' equity:
Common stock		12,794			12,584			210			1.7	%
Additional paid-in capital		1,034,526			981,985			52,541			5.4	%
Retained earnings		591,798			602,829			(11,031	)		(1.8	%)
Accumulated other comprehensive income		9,413			13,662			(4,249	)		(31.1	%)
Treasury stock, at cost		(945,274	)		(928,203	)		(17,071	)		(1.8	%)
Total stockholders' equity		703,257			682,857			20,400			3.0	%
		1,322,424			1,323,301			(877	)		(0.1	%)

14 

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the Three Months Ended
	March 31,
	2015			2014
Cash flows from operating activities:
Net earnings (loss)		(6,039	)		(29,223	)
Loss (earnings) from discontinued operations, net of tax		(14	)		3,696
Non-cash operating activities:
Depreciation and amortization		33,863			26,728
Disposal or impairment of assets		1,976			(9	)
Impairment of goodwill and other		-			24,953
Deferred income taxes		(7,669	)		5,763
Non-cash stock compensation expense		8,348			3,581
Changes in operating assets and liabilities:
Accounts receivable		(8,025	)		4,308
Other assets		12,244			(8,192	)
Deferred costs		4			(417	)
Accounts payable and other liabilities		273			12,044
Deferred revenue		(497	)		(2,545	)
Net cash provided by operating activities		34,464			40,687
Cash flows from investing activities:
Capitalized software		(3,602	)		(5,408	)
Capital expenditures		(17,512	)		(14,409	)
Data acquisition costs		(374	)		(3,085	)
Payments from investments		-			190
Net cash paid in acquisitions		-			(500	)
Net cash provided (used) by investing activities		(21,488	)		(23,212	)
Cash flows from financing activities:
Payments of debt		(8,606	)		(5,728	)
Sale of common stock, net of stock acquired for withholding taxes		5,846			11,384
Tax impact of stock options, warrants, and restricted stock		4,645			11,295
Net cash provided (used) by financing activities		1,885			16,951
Cash flows from discontinued operations:
From operating activities		(12	)		3,147
From investing activities		(92	)		-
Net cash provided by discontinued operations		(104	)		3,147
Effect of exchange rate changes on cash		(638	)		105
Net change in cash and cash equivalents		14,119			37,678
Cash and cash equivalents at beginning of period		126,891			380,908
Cash and cash equivalents at end of period		141,010			418,586
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest		2,473			2,495
Income taxes		(4,383	)		5,928
Payments on capital leases and installment payment arrangements		574			1,465
Other debt payments, excluding line of credit		8,032			4,263

15 

ACXIOM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
	For the Twelve Months Ended
	March 31
	2015			2014
Cash flows from operating activities:
Net earnings (loss)		(11,031	)		8,803
Loss (earnings) from discontinued operations, net of tax		1,884			2,189
Non-cash operating activities:
Depreciation and amortization		118,834			102,426
Disposal or impairment of assets		1,976			(2,576	)
Loss on early extinguishment of debt		-			664
Impairment of goodwill and other		-			24,953
Deferred income taxes		(9,689	)		2,097
Non-cash stock compensation expense		28,886			13,925
Changes in operating assets and liabilities:
Accounts receivable		(497	)		8,272
Other assets		15,727			(1,260	)
Deferred costs		(1,484	)		(506	)
Accounts payable and other liabilities		(29,142	)		288
Deferred revenue		(10,677	)		3,966
Net cash provided by operating activities		104,787			163,241
Cash flows from investing activities:
Capitalized software		(18,587	)		(24,517	)
Capital expenditures		(69,041	)		(39,132	)
Data acquisition costs		(1,871	)		(7,745	)
Payments from investments		-			3,823
Net cash paid in acquisitions		(265,672	)		(500	)
Net cash provided (used) by investing activities		(355,171	)		(68,071	)
Cash flows from financing activities:
Proceeds from debt		-			300,000
Payments of debt		(28,421	)		(235,895	)
Fees for debt refinancing		-			(4,370	)
Sale of common stock, net of stock acquired for withholding taxes		5,039			80,490
Tax impact of stock options, warrants, and restricted stock		4,645			11,295
Acquisition of treasury stock		(9,868	)		(52,663	)
Acquisition of noncontrolling interest		-			(600	)
Net cash provided (used) by financing activities		(28,605	)		98,257
Cash flows from discontinued operations:
From operating activities		197			1,735
From investing activities		2,835			(166	)
Net cash provided (used) by discontinued operations		3,032			1,569
Effect of exchange rate changes on cash		(1,619	)		616
Net change in cash and cash equivalents		(277,576	)		195,612
Cash and cash equivalents at beginning of period		418,586			222,974
Cash and cash equivalents at end of period		141,010			418,586
Supplemental cash flow information:
Cash paid (received) during the period for:
Interest		8,673			11,762
Income taxes		(3,845	)		21,702
Payments on capital leases and installment payment arrangements		3,823			8,379
Other debt payments, excluding line of credit		24,598			12,516
Prepayment of debt		-			215,000

16 

ACXIOM CORPORATION AND SUBSIDIARIES
CALCULATION OF FREE CASH FLOW AVAILABLE TO EQUITY
AND RECONCILIATION TO OPERATING CASH FLOW
(Unaudited)
(Dollars in thousands)
	06/30/13			09/30/13			12/31/13			03/31/14			YTD FY2014			06/30/14			09/30/14			12/31/14			03/31/15			YTD FY2015
Net cash provided by operating activities - continuing operations		16,508			42,255			63,791			40,687			163,241			1,867			25,792			42,664			34,464			104,787
Net cash provided by operating activities - discontinued operations		341			(1,734	)		(19	)		3,147			1,735			(13	)		82			140			(12	)		197
Less:
Payments for investments		-			-			3,633			190			3,823			-			-			-						-
Capitalized software		(5,954	)		(7,660	)		(5,495	)		(5,408	)		(24,517	)		(4,969	)		(5,608	)		(4,408	)		(3,602	)		(18,587	)
Capital expenditures		(8,912	)		(9,130	)		(6,681	)		(14,409	)		(39,132	)		(19,001	)		(19,396	)		(13,132	)		(17,512	)		(69,041	)
Data acquisition costs		(1,961	)		(913	)		(1,786	)		(3,085	)		(7,745	)		(635	)		(468	)		(394	)		(374	)		(1,871	)
Discontinued operations investing activities		(8	)		(139	)		(19	)		-			(166	)		2,927			-			-			(92	)		2,835
Payments on capital leases and installment payment arrangements		(2,900	)		(2,339	)		(1,675	)		(1,465	)		(8,379	)		(1,235	)		(1,084	)		(930	)		(574	)		(3,823	)
Other required debt payments		(1,990	)		(2,004	)		(4,259	)		(4,263	)		(12,516	)		(4,267	)		(4,272	)		(8,027	)		(8,032	)		(24,598	)
Total		(4,876	)		18,336			47,490			15,394			76,344			(25,326	)		(4,954	)		15,913			4,266			(10,101	)

17 

ACXIOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except earnings per share)
												Q4 FY15 to Q4 FY14
		06/30/13	09/30/13	12/31/13	03/31/14	YTD FY2014	06/30/14	09/30/14	12/31/14	03/31/15	YTD FY2015	%	$
Revenue:
	Marketing and data services	187,793	200,952	206,662	209,746	805,153	186,683	204,248	208,246	205,734	804,911	-1.9%	(4,012)
	IT Infrastructure management services	69,385	66,825	62,099	58,816	257,125	55,532	55,789	52,194	51,633	215,148	-12.2%	(7,183)
	Total revenue	257,178	267,777	268,761	268,562	1,062,278	242,215	260,037	260,440	257,367	1,020,059	-4.2%	(11,195)
Operating costs and expenses:
	Cost of revenue	196,105	199,107	201,430	198,920	795,562	192,303	205,318	203,728	206,120	807,469	3.6%	7,200
	Selling, general and administrative	37,615	42,859	43,383	45,519	169,376	46,938	50,483	47,345	43,795	188,561	-3.8%	(1,724)
	Impairment of goodwill and other	-	-	-	24,953	24,953	-	-	-	-	0	-100.0%	(24,953)
	Gains, losses and other items, net	-	6,584	4,657	10,673	21,914	7,452	929	4,175	12,077	24,633	13.2%	1,404
	Total operating costs and expenses	233,720	248,550	249,470	280,065	1,011,805	246,693	256,730	255,248	261,992	1,020,663	-6.5%	(18,073)
	Income (loss) from operations	23,458	19,227	19,291	(11,503)	50,473	(4,478)	3,307	5,192	(4,625)	(604)	59.8%	6,878
	% Margin	9.1%	7.2%	7.2%	-4.3%	4.8%	-1.8%	1.3%	2.0%	-1.8%	-0.1%
	Other expense
	Interest expense	(3,019)	(2,980)	(3,114)	(2,558)	(11,671)	(2,571)	(2,395)	(2,610)	(2,474)	(10,050)	3.3%	84
	Other, net	104	(350)	1,484	579	1,817	(413)	(115)	(34)	(763)	(1,325)	-231.8%	(1,342)
	Total other expense	(2,915)	(3,330)	(1,630)	(1,979)	(9,854)	(2,984)	(2,510)	(2,644)	(3,237)	(11,375)	-63.6%	(1,258)
	Earnings (loss) from continuing operations before income taxes	20,543	15,897	17,661	(13,482)	40,619	(7,462)	797	2,548	(7,862)	(11,979)	41.7%	5,620
	Income taxes	8,040	6,459	3,083	12,045	29,627	(1,390)	2,293	(1,926)	(1,809)	(2,832)	-115.0%	(13,854)
	Net earnings (loss) from continuing operations	12,503	9,438	14,578	(25,527)	10,992	(6,072)	(1,496)	4,474	(6,053)	(9,147)	76.3%	19,474
	Earnings (loss) from discontinued operations, net of tax	592	426	489	(3,696)	(2,189)	(1,532)	(48)	(318)	14	(1,884)	100.4%	3,710
	Net earnings (loss)	13,095	9,864	15,067	(29,223)	8,803	(7,604)	(1,544)	4,156	(6,039)	(11,031)	79.3%	23,184
	Less: Net gain (loss) attributable
	to noncontrolling interest	(85)	25	-	-	(60)	-	-	-	-	-	-	-
	Net earnings (loss) attributable to Acxiom	13,180	9,839	15,067	(29,223)	8,863	(7,604)	(1,544)	4,156	(6,039)	(11,031)	79.3%	23,184
	Diluted earnings (loss) per share - net earnings (loss) attributable
	to Acxiom stockholders	0.17	0.13	0.19	(0.38)	0.12	(0.10)	(0.02)	0.05	(0.08)	(0.14)	78.9%	0.30

18 

ACXIOM CORPORATION AND SUBSIDIARIES
RESULTS BY SEGMENT
(Unaudited)
(Dollars in thousands)
																															Q4 FY15 to Q4 FY14
	06/30/13			09/30/13			12/31/13			03/31/14			YTD FY2014			06/30/14			09/30/14			12/31/14			03/31/15			YTD FY2015			%			$
Revenue:
Marketing and data services		187,793			200,952			206,662			209,746			805,153			186,683			204,248			208,246			205,734			804,911			-2	%	(4,012	)
IT Infrastructure management services		69,385			66,825			62,099			58,816			257,125			55,532			55,789			52,194			51,633			215,148			-12	%	(7,183	)
Total revenue		257,178			267,777			268,761			268,562			1,062,278			242,215			260,037			260,440			257,367			1,020,059			-4	%	(11,195	)
Income from continuing operations:
Marketing and data services		12,697			16,030			22,529			27,244			78,500			10,272			9,397			13,703			13,356			46,728			-51	%	(13,888	)
IT Infrastructure management services		10,761			11,967			6,316			3,803			32,847			4,739			4,130			3,780			5,456			18,105			43	%	1,653
Corporate		-			(8,770	)		(9,554	)		(42,550	)		(60,874	)		(19,489	)		(10,220	)		(12,291	)		(23,437	)		(65,437	)		45	%	19,113
Total income (loss) from continuing operations		23,458			19,227			19,291			(11,503	)		50,473			(4,478	)		3,307			5,192			(4,625	)		(604	)		60	%	6,878
Margin:
Marketing and data services		6.8	%		8.0	%		10.9	%		13.0	%		9.7	%		5.5	%		4.6	%		6.6	%		6.5	%		5.8	%
IT Infrastructure management services		15.5	%		17.9	%		10.2	%		6.5	%		12.8	%		8.5	%		7.4	%		7.2	%		10.6	%		8.4	%
Total		9.1	%		7.2	%		7.2	%		-4.3	%		4.8	%		-1.8	%		1.3	%		2.0	%		-1.8	%		-0.1	%

19