UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): September 27, 2006
ACXIOM CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation)
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0-13163 |
71-0581897 | |
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(Commission File Number) |
(IRS Employer Identification No.) | |
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1 Information Way, P.O. Box 8180, Little Rock, Arkansas |
72203-8180 | |
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(Address of Principal Executive Offices) |
(Zip Code) | |
501-342-1000
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 8.01 Other Events
On September 27, 2006, members of Acxiom Corporation’s (the “Company”) management held an investor briefing. A copy of the investor briefing presentation is posted on the Company’s website at www.acxiom.com. A copy of the Company’s Chief Financial Officer’s presentation is also attached as an exhibit hereto.
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Item 9.01 |
Financial Statements and Exhibits |
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(c) |
Exhibits |
The following exhibits are furnished herewith:
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Exhibit |
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Description |
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99.1 |
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Acxiom Corporation’s Chief Financial Officer’s investor briefing presentation. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: |
September 27, 2006 |
ACXIOM CORPORATION
By: /s/ Jerry C. Jones
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Name: |
Jerry C. Jones |
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Title: |
Business Development/Legal Leader |
EXHIBIT INDEX
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Exhibit |
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Description | |
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99.1 |
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Acxiom Corporation’s Chief Financial Officer’s investor briefing presentation. | |
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Financial Report
Frank Cotroneo
FY07 Road Map EPS Range
Low Mid High
Total Revenue $1,415,000 $1,435,000 $1,455,000
Total Operating Income $176,000 $186,500 $197,000
Total Other Income (Expense) ($29,000) ($30,000) ($31,000)
Tax @ 38% $55,900 $59,500 $63,100
FD Shares 90,000 90,000 90,000
GAAP EPS $1.01 $1.08 $1.14
Year Over Year Growth 22% 30% 38%
As of April 1, 2006
In Thousands Except EPS
Adjusted FY07 Outlook
Road Map $1.08
Lower Share Count 0.08
Increased Interest Expense (0.10)
Other (0.04)
Subtotal Charges ($0.06)
Adjusted Guidance $1.02
Year Over Year Growth 23%
Midpoint of Adjusted
Road Map Range
DAST, Financing, Other
As of August 31, 2006
FY07 Growth Initiatives
Accelerate sales efforts to support consulting and analytics
solutions offerings
Accelerate conversion to standardized process & off-shoring
workforce strategy
Continue specific cost reduction initiatives to improve
operating margin
Initiatives can account for an incremental expense of $6
million – $8 million to the adjusted guidance
Financial Outlook FY07
Overall Assumptions
Revenue Growth 6 – 9%
Return on Invested Capital 13 – 15%
Operating Margin 12 – 13%
Free Cash Flow to Equity (in millions) $113 – $133
Key Initiatives
Data
Marketing
& CDI Services
Outsourced IT
Services
Marketing
& CDI Services
Data
Outsourced IT
Services
$1,333
$1,864
9%
5%
9%
23%
Focus on Analytics
Building Consulting Practices
U.S. Data Growing at 11% CAGR
Customized Enterprise-wide Services
Industry Specific Solutions
Digital Solutions
Extensive Cross-Sell Approach
Enhanced Product Set
Innovation and New Markets
Deployment of the Grid
Avoid Commoditized Services
Optimize Capital Allocations
9%
Risk Mitigation
($ Millions)
CAGR
Revenue Growth
Financial Road Map Mid Point
$146
($ Millions)
Workforce Initiatives
Computer Expense Focus
Standardized Processes
Leveraging Base Assets
$242
$186
11%
Margin
13%
Margin
17%
Margin
13%
Margin
11%
Margin
Expense Efficiencies
Revenue Growth
$147
$309
(1) Adjusted operating income is a non-GAAP financial measure. This measure excludes $15.8 million of restructuring
charges
and other unusual items.
(1)
Operating Income
Improvement Through Revenue Growth and Expense Efficiencies
Priorities for New CFO
Disciplined, rigorous capital allocation
Execution plans in place with accountability
Metrics to track performance
Transparency into the business
Promises made; promises kept
Capital Allocation Criteria
Risk adjusted rate of return
Free cash flow to equity
Revenue growth in high-value business
Return on invested capital
Sustainable earnings growth
Priority Uses of Capital
Required reinvestment into business
Opportunistic investment into growth businesses
Share repurchases at attractive valuations
Reduce debt
Dividends
Financial Outlook FY08 - 10
Overall Road Map Assumptions
Revenue Growth (CAGR) 8 – 11%
Return on Invested Capital 16 – 19%
Operating Margin 15 – 18%
Free Cash Flow to Equity (in millions) $140 – $160
Summary
Competitive product portfolio for growth
Disciplined capital allocation process
Predictable profitability
High recurring revenue
Diversified sources of earnings
Strong, stable cash flow
Seasoned and prudent senior management team