Delaware | 47-0772104 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
6060 Coventry Drive | Elkhorn, | Nebraska | 68022 |
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(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.005 par value | ACIW | Nasdaq Global Select Market |
Press Release dated February 29, 2024 | |||||
Investor presentation materials dated February 29, 2024 | |||||
Press Release dated February 29, 2024 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
ACI WORLDWIDE, INC.
(Registrant)
|
||||||||
Date: February 29, 2024 | By: |
/s/ DENNIS P. BYRNES | ||||||
Dennis P. Byrnes | ||||||||
Executive Vice President and General Counsel |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 164,239 | $ | 124,981 | |||||||
Receivables, net of allowances | 452,337 | 403,781 | |||||||||
Settlement assets | 723,039 | 540,667 | |||||||||
Prepaid expenses | 31,479 | 28,010 | |||||||||
Other current assets | 35,551 | 17,366 | |||||||||
Total current assets | 1,406,645 | 1,114,805 | |||||||||
Noncurrent assets | |||||||||||
Accrued receivables, net | 313,983 | 297,818 | |||||||||
Property and equipment, net | 37,856 | 52,499 | |||||||||
Operating lease right-of-use assets | 34,338 | 40,031 | |||||||||
Software, net | 108,418 | 129,109 | |||||||||
Goodwill | 1,226,026 | 1,226,026 | |||||||||
Intangible assets, net | 195,646 | 228,698 | |||||||||
Deferred income taxes, net | 58,499 | 53,738 | |||||||||
Other noncurrent assets | 63,328 | 67,171 | |||||||||
TOTAL ASSETS | $ | 3,444,739 | $ | 3,209,895 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 45,964 | $ | 47,997 | |||||||
Settlement liabilities | 721,164 | 539,087 | |||||||||
Employee compensation | 53,892 | 45,289 | |||||||||
Current portion of long-term debt | 74,405 | 65,521 | |||||||||
Deferred revenue | 59,580 | 58,303 | |||||||||
Other current liabilities | 82,244 | 102,645 | |||||||||
Total current liabilities | 1,037,249 | 858,842 | |||||||||
Noncurrent liabilities | |||||||||||
Deferred revenue | 24,780 | 23,233 | |||||||||
Long-term debt | 963,599 | 1,024,351 | |||||||||
Deferred income taxes, net | 40,735 | 40,371 | |||||||||
Operating lease liabilities | 29,074 | 33,910 | |||||||||
Other noncurrent liabilities | 25,005 | 36,001 | |||||||||
Total liabilities | 2,120,442 | 2,016,708 | |||||||||
Stockholders’ equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 702 | 702 | |||||||||
Additional paid-in capital | 712,994 | 702,458 | |||||||||
Retained earnings | 1,394,967 | 1,273,458 | |||||||||
Treasury stock | (674,896) | (665,771) | |||||||||
Accumulated other comprehensive loss | (109,470) | (117,660) | |||||||||
Total stockholders’ equity | 1,324,297 | 1,193,187 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,444,739 | $ | 3,209,895 |
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Software as a service and platform as a service | $ | 223,172 | $ | 205,800 | $ | 849,147 | $ | 802,880 | |||||||||||||||
License | 178,543 | 179,874 | 321,224 | 348,134 | |||||||||||||||||||
Maintenance | 51,632 | 48,902 | 205,068 | 200,045 | |||||||||||||||||||
Services | 23,216 | 17,229 | 77,140 | 70,842 | |||||||||||||||||||
Total revenues | 476,563 | 451,805 | 1,452,579 | 1,421,901 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Cost of revenue (1) | 181,689 | 178,699 | 719,211 | 696,071 | |||||||||||||||||||
Research and development | 34,636 | 31,963 | 140,758 | 146,311 | |||||||||||||||||||
Selling and marketing | 34,473 | 32,019 | 132,639 | 134,812 | |||||||||||||||||||
General and administrative | 24,515 | 29,441 | 117,190 | 114,194 | |||||||||||||||||||
Depreciation and amortization | 28,934 | 31,460 | 122,373 | 126,678 | |||||||||||||||||||
Total operating expenses | 304,247 | 303,582 | 1,232,171 | 1,218,066 | |||||||||||||||||||
Operating income | 172,316 | 148,223 | 220,408 | 203,835 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest expense | (19,845) | (16,179) | (78,486) | (53,193) | |||||||||||||||||||
Interest income | 3,757 | 3,342 | 14,215 | 12,547 | |||||||||||||||||||
Other, net | (2,107) | (2,355) | (8,510) | 43,446 | |||||||||||||||||||
Total other income (expense) | (18,195) | (15,192) | (72,781) | 2,800 | |||||||||||||||||||
Income before income taxes | 154,121 | 133,031 | 147,627 | 206,635 | |||||||||||||||||||
Income tax expense | 31,505 | 42,803 | 26,118 | 64,458 | |||||||||||||||||||
Net income | $ | 122,616 | $ | 90,228 | $ | 121,509 | $ | 142,177 | |||||||||||||||
Income per common share | |||||||||||||||||||||||
Basic | $ | 1.13 | $ | 0.81 | $ | 1.12 | $ | 1.25 | |||||||||||||||
Diluted | $ | 1.12 | $ | 0.81 | $ | 1.12 | $ | 1.24 | |||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic | 108,703 | 111,077 | 108,497 | 113,700 | |||||||||||||||||||
Diluted | 109,147 | 111,354 | 108,857 | 114,238 |
Three Months Ended December 31, | Years Ended December 31, |
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2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 122,616 | $ | 90,228 | $ | 121,509 | $ | 142,177 | |||||||||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||||||||||||||||
Depreciation | 5,017 | 6,129 | 23,739 | 23,181 | |||||||||||||||||||
Amortization | 23,918 | 25,330 | 98,634 | 104,147 | |||||||||||||||||||
Amortization of operating lease right-of-use assets | 2,430 | 2,740 | 11,620 | 11,036 | |||||||||||||||||||
Amortization of deferred debt issuance costs | 908 | 1,126 | 4,323 | 4,561 | |||||||||||||||||||
Deferred income taxes | 21,122 | 10,662 | (4,085) | 1,603 | |||||||||||||||||||
Stock-based compensation expense | 7,010 | 7,869 | 24,547 | 29,753 | |||||||||||||||||||
Gain on divestiture | — | — | — | (38,452) | |||||||||||||||||||
Other | (247) | 545 | 1,921 | 3,028 | |||||||||||||||||||
Changes in operating assets and liabilities, net of impact of divestiture: | |||||||||||||||||||||||
Receivables | (105,010) | (137,961) | (62,998) | (132,194) | |||||||||||||||||||
Accounts payable | 3,423 | 10,777 | (3,775) | 7,730 | |||||||||||||||||||
Accrued employee compensation | 11,025 | 711 | 8,146 | (3,161) | |||||||||||||||||||
Deferred revenue | (1,699) | 3,390 | 2,705 | (2,977) | |||||||||||||||||||
Other current and noncurrent assets and liabilities | (4,770) | 19,869 | (57,769) | (7,051) | |||||||||||||||||||
Net cash flows from operating activities | 85,743 | 41,415 | 168,517 | 143,381 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchases of property and equipment | (968) | (4,980) | (8,924) | (13,103) | |||||||||||||||||||
Purchases of software and distribution rights | (6,282) | (8,396) | (28,853) | (26,790) | |||||||||||||||||||
Proceeds from divestiture | — | — | — | 100,139 | |||||||||||||||||||
Net cash flows from investing activities | (7,250) | (13,376) | (37,777) | 60,246 | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of common stock | 697 | 780 | 2,819 | 3,581 | |||||||||||||||||||
Proceeds from exercises of stock options | 3,594 | 2,792 | 6,726 | 4,584 | |||||||||||||||||||
Repurchase of stock-based compensation awards for tax withholdings | (946) | (1,163) | (5,149) | (6,983) | |||||||||||||||||||
Repurchases of common stock | (27,587) | (115,603) | (27,587) | (206,537) | |||||||||||||||||||
Proceeds from revolving credit facility | 59,000 | 95,000 | 134,000 | 180,000 | |||||||||||||||||||
Repayment of revolving credit facility | (64,000) | — | (115,000) | (75,000) | |||||||||||||||||||
Repayment of term portion of credit agreement | (19,475) | (14,606) | (73,031) | (85,431) | |||||||||||||||||||
Payments on or proceeds from other debt, net | (4,293) | (2,017) | (16,766) | (12,123) | |||||||||||||||||||
Payments for debt issuance costs | — | — | (2,160) | — | |||||||||||||||||||
Net increase (decrease) in settlement assets and liabilities | (10,769) | 6,765 | (15,404) | 26,849 | |||||||||||||||||||
Net cash flows from financing activities | (63,779) | (28,052) | (111,552) | (171,060) | |||||||||||||||||||
Effect of exchange rate fluctuations on cash | 573 | (1,977) | 4,961 | (2,037) | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 15,287 | (1,990) | 24,149 | 30,530 | |||||||||||||||||||
Cash and cash equivalents, including settlement deposits, beginning of period | 223,534 | 216,662 | 214,672 | 184,142 | |||||||||||||||||||
Cash and cash equivalents, including settlement deposits, end of period | $ | 238,821 | $ | 214,672 | $ | 238,821 | $ | 214,672 | |||||||||||||||
Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 164,239 | $ | 124,981 | $ | 164,239 | $ | 124,981 | |||||||||||||||
Settlement deposits | 74,582 | 89,691 | 74,582 | 89,691 | |||||||||||||||||||
Total cash and cash equivalents | $ | 238,821 | $ | 214,672 | $ | 238,821 | $ | 214,672 |
Adjusted EBITDA (millions) | Three Months Ended December 31, | Years Ended December 31, |
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2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | 122.6 | $ | 90.2 | $ | 121.5 | $ | 142.2 | |||||||||||||||
Plus: | |||||||||||||||||||||||
Income tax expense (benefit) | 31.5 | 42.8 | 26.1 | 64.5 | |||||||||||||||||||
Net interest expense | 16.1 | 12.8 | 64.3 | 40.6 | |||||||||||||||||||
Net other (income) expense | 2.1 | 2.4 | 8.5 | (43.4) | |||||||||||||||||||
Depreciation expense | 5.0 | 6.1 | 23.7 | 23.2 | |||||||||||||||||||
Amortization expense | 23.9 | 25.3 | 98.6 | 104.1 | |||||||||||||||||||
Non-cash stock-based compensation expense | 7.0 | 7.9 | 24.5 | 29.8 | |||||||||||||||||||
Adjusted EBITDA before significant transaction-related expenses | $ | 208.2 | $ | 187.5 | $ | 367.2 | $ | 361.0 | |||||||||||||||
Significant transaction-related expenses: | |||||||||||||||||||||||
CEO transition | — | 3.6 | — | 3.6 | |||||||||||||||||||
Cost reduction strategies | 1.3 | — | 21.0 | — | |||||||||||||||||||
European datacenter migration | 0.2 | 2.4 | 2.8 | 5.8 | |||||||||||||||||||
Other | — | 0.4 | 4.4 | 3.0 | |||||||||||||||||||
Adjusted EBITDA | $ | 209.7 | $ | 193.9 | $ | 395.4 | $ | 373.4 | |||||||||||||||
Revenue, net of interchange: | |||||||||||||||||||||||
Revenue | $ | 476.6 | $ | 451.8 | $ | 1,452.6 | $ | 1,421.9 | |||||||||||||||
Interchange | 106.1 | 111.2 | 421.1 | 406.6 | |||||||||||||||||||
Revenue, net of interchange | $ | 370.5 | $ | 340.6 | $ | 1,031.5 | $ | 1,015.3 | |||||||||||||||
Net adjusted EBITDA Margin | 57 | % | 57 | % | 38 | % | 37 | % |
Segment Information (millions) | Three Months Ended December 31, | Years Ended December 31, |
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2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Banks | $ | 254.9 | $ | 247.0 | $ | 616.1 | $ | 638.6 | |||||||||||||||
Merchants | 43.0 | 40.8 | 150.6 | 153.9 | |||||||||||||||||||
Billers | 178.7 | 164.0 | 685.9 | 629.4 | |||||||||||||||||||
Total | $ | 476.6 | $ | 451.8 | $ | 1,452.6 | $ | 1,421.9 | |||||||||||||||
Recurring revenue | |||||||||||||||||||||||
Banks | $ | 58.2 | $ | 53.6 | $ | 229.4 | $ | 232.9 | |||||||||||||||
Merchants | 37.9 | 37.1 | 138.9 | 140.6 | |||||||||||||||||||
Billers | 178.7 | 164.0 | 685.9 | 629.4 | |||||||||||||||||||
Total | $ | 274.8 | $ | 254.7 | $ | 1,054.2 | $ | 1,002.9 | |||||||||||||||
Segment adjusted EBITDA | |||||||||||||||||||||||
Banks | $ | 188.2 | $ | 186.3 | $ | 355.5 | $ | 371.0 | |||||||||||||||
Merchants | 17.5 | 16.8 | 44.3 | 49.0 | |||||||||||||||||||
Billers | 42.2 | 26.4 | 142.3 | 107.4 |
EPS Impact of Non-cash and Significant Transaction-related Items (millions) | Three Months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
EPS Impact | $ in Millions (Net of Tax) |
EPS Impact | $ in Millions (Net of Tax) |
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GAAP net income | $ | 1.12 | $ | 122.6 | $ | 0.81 | $ | 90.2 | |||||||||||||||
Adjusted for: | |||||||||||||||||||||||
Significant transaction-related expenses | 0.01 | 1.1 | 0.04 | 4.9 | |||||||||||||||||||
Amortization of acquisition-related intangibles | 0.06 | 6.4 | 0.06 | 6.4 | |||||||||||||||||||
Amortization of acquisition-related software | 0.03 | 3.5 | 0.04 | 4.5 | |||||||||||||||||||
Non-cash stock-based compensation | 0.05 | 5.3 | 0.05 | 6.0 | |||||||||||||||||||
Total adjustments | $ | 0.15 | $ | 16.3 | $ | 0.19 | $ | 21.8 | |||||||||||||||
Diluted EPS adjusted for non-cash and significant transaction-related items | $ | 1.27 | $ | 138.9 | $ | 1.00 | $ | 112.0 |
EPS Impact of Non-cash and Significant Transaction-related Items (millions) | Years Ended Years Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
EPS Impact | $ in Millions (Net of Tax) |
EPS Impact | $ in Millions (Net of Tax) |
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GAAP net income | $ | 1.12 | $ | 121.5 | $ | 1.24 | $ | 142.2 | |||||||||||||||
Adjusted for: | |||||||||||||||||||||||
Gain on divestiture | — | — | (0.26) | (29.2) | |||||||||||||||||||
Significant transaction-related expenses | 0.19 | 21.1 | 0.08 | 9.6 | |||||||||||||||||||
Amortization of acquisition-related intangibles | 0.24 | 25.7 | 0.24 | 27.0 | |||||||||||||||||||
Amortization of acquisition-related software | 0.14 | 15.5 | 0.16 | 18.6 | |||||||||||||||||||
Non-cash stock-based compensation | 0.17 | 18.7 | 0.20 | 22.6 | |||||||||||||||||||
Total adjustments | $ | 0.74 | $ | 81.0 | $ | 0.42 | $ | 48.6 | |||||||||||||||
Diluted EPS adjusted for non-cash and significant transaction-related items | $ | 1.86 | $ | 202.5 | $ | 1.66 | $ | 190.8 |
Recurring Revenue (millions) | Three Months Ended December 31, | Years Ended December 31, |
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2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
SaaS and PaaS fees | $ | 223.2 | $ | 205.8 | $ | 849.1 | $ | 802.9 | |||||||||||||||
Maintenance fees | 51.6 | 48.9 | 205.1 | 200.0 | |||||||||||||||||||
Recurring revenue | $ | 274.8 | $ | 254.7 | $ | 1,054.2 | $ | 1,002.9 |
New Bookings (millions) | Three Months Ended December 31, | Years Ended December 31, |
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2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Annual recurring revenue (ARR) bookings | $ | 28.8 | $ | 40.2 | $ | 73.5 | $ | 109.7 | |||||||||||||||
License and services bookings | 106.5 | 91.8 | 239.2 | 204.7 |