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 August 1, 2024 | |||||
Investor presentation materials dated August 1, 2024 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
ACI WORLDWIDE, INC.
(Registrant)
|
||||||||
Date: August 1, 2024 | By: |
/s/ SCOTT W. BEHRENS |
||||||
Scott W. Behrens |
||||||||
Executive Vice President, Chief Financial Officer and Chief Accounting Officer
(Principal Financial Officer)
|
June 30, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 156,983 | $ | 164,239 | |||||||
Receivables, net of allowances | 369,171 | 452,337 | |||||||||
Settlement assets | 792,745 | 723,039 | |||||||||
Prepaid expenses | 30,485 | 31,479 | |||||||||
Other current assets | 31,826 | 35,551 | |||||||||
Total current assets | 1,381,210 | 1,406,645 | |||||||||
Noncurrent assets | |||||||||||
Accrued receivables, net | 290,348 | 313,983 | |||||||||
Property and equipment, net | 34,943 | 37,856 | |||||||||
Operating lease right-of-use assets | 31,119 | 34,338 | |||||||||
Software, net | 100,200 | 108,418 | |||||||||
Goodwill | 1,226,026 | 1,226,026 | |||||||||
Intangible assets, net | 178,601 | 195,646 | |||||||||
Deferred income taxes, net | 61,230 | 58,499 | |||||||||
Other noncurrent assets | 60,995 | 63,328 | |||||||||
TOTAL ASSETS | $ | 3,364,672 | $ | 3,444,739 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 48,798 | $ | 45,964 | |||||||
Settlement liabilities | 792,166 | 721,164 | |||||||||
Employee compensation | 33,446 | 53,892 | |||||||||
Current portion of long-term debt | 34,892 | 74,405 | |||||||||
Deferred revenue | 72,659 | 59,580 | |||||||||
Other current liabilities | 62,160 | 82,244 | |||||||||
Total current liabilities | 1,044,121 | 1,037,249 | |||||||||
Noncurrent liabilities | |||||||||||
Deferred revenue | 19,292 | 24,780 | |||||||||
Long-term debt | 973,121 | 963,599 | |||||||||
Deferred income taxes, net | 41,052 | 40,735 | |||||||||
Operating lease liabilities | 25,237 | 29,074 | |||||||||
Other noncurrent liabilities | 25,093 | 25,005 | |||||||||
Total liabilities | 2,127,916 | 2,120,442 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 702 | 702 | |||||||||
Additional paid-in capital | 718,559 | 712,994 | |||||||||
Retained earnings | 1,418,103 | 1,394,967 | |||||||||
Treasury stock | (786,526) | (674,896) | |||||||||
Accumulated other comprehensive loss | (114,082) | (109,470) | |||||||||
Total stockholders’ equity | 1,236,756 | 1,324,297 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,364,672 | $ | 3,444,739 |
Three Months Ended June 30, |
Six Months Ended June 30, |
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2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Software as a service and platform as a service | $ | 235,399 | $ | 209,676 | $ | 451,131 | $ | 414,606 | |||||||||||||||
License | 65,582 | 44,671 | 95,555 | 63,002 | |||||||||||||||||||
Maintenance | 48,733 | 51,391 | 96,487 | 101,494 | |||||||||||||||||||
Services | 23,765 | 17,587 | 46,325 | 33,899 | |||||||||||||||||||
Total revenues | 373,479 | 323,325 | 689,498 | 613,001 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Cost of revenue (1) | 203,238 | 181,343 | 394,345 | 359,897 | |||||||||||||||||||
Research and development | 35,410 | 35,265 | 70,403 | 72,383 | |||||||||||||||||||
Selling and marketing | 28,551 | 33,289 | 55,301 | 68,724 | |||||||||||||||||||
General and administrative | 24,993 | 31,472 | 50,993 | 62,854 | |||||||||||||||||||
Depreciation and amortization | 27,586 | 31,436 | 55,195 | 62,975 | |||||||||||||||||||
Total operating expenses | 319,778 | 312,805 | 626,237 | 626,833 | |||||||||||||||||||
Operating income (loss) | 53,701 | 10,520 | 63,261 | (13,832) | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Interest expense | (18,471) | (19,909) | (37,481) | (38,801) | |||||||||||||||||||
Interest income | 3,953 | 3,458 | 7,962 | 6,963 | |||||||||||||||||||
Other, net | 1,156 | (4,092) | (869) | (7,487) | |||||||||||||||||||
Total other income (expense) | (13,362) | (20,543) | (30,388) | (39,325) | |||||||||||||||||||
Income (loss) before income taxes | 40,339 | (10,023) | 32,873 | (53,157) | |||||||||||||||||||
Income tax expense (benefit) | 9,452 | (3,313) | 9,737 | (14,139) | |||||||||||||||||||
Net income (loss) | $ | 30,887 | $ | (6,710) | $ | 23,136 | $ | (39,018) | |||||||||||||||
Income (loss) per common share | |||||||||||||||||||||||
Basic | $ | 0.29 | $ | (0.06) | $ | 0.22 | $ | (0.36) | |||||||||||||||
Diluted | $ | 0.29 | $ | (0.06) | $ | 0.22 | $ | (0.36) | |||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic | 105,395 | 108,455 | 106,097 | 108,306 | |||||||||||||||||||
Diluted | 106,166 | 108,455 | 106,815 | 108,306 |
Three Months Ended June 30, |
Six Months Ended June 30, |
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2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income (loss) | $ | 30,887 | $ | (6,710) | $ | 23,136 | $ | (39,018) | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||||||||||||||
Depreciation | 3,564 | 6,960 | 7,195 | 13,091 | |||||||||||||||||||
Amortization | 24,022 | 24,476 | 48,000 | 49,884 | |||||||||||||||||||
Amortization of operating lease right-of-use assets | 2,431 | 3,724 | 4,999 | 6,491 | |||||||||||||||||||
Amortization of deferred debt issuance costs | 662 | 1,377 | 1,598 | 2,492 | |||||||||||||||||||
Deferred income taxes | 510 | (12,259) | 1,516 | (22,641) | |||||||||||||||||||
Stock-based compensation expense | 10,720 | 5,414 | 18,819 | 10,715 | |||||||||||||||||||
Other | (756) | 601 | (2,067) | 311 | |||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Receivables | (27,671) | (7,104) | 99,598 | 81,856 | |||||||||||||||||||
Accounts payable | 5,297 | (646) | 4,849 | (1,954) | |||||||||||||||||||
Accrued employee compensation | 6,569 | 10,965 | (19,884) | (4,628) | |||||||||||||||||||
Deferred revenue | (5,590) | 2,498 | 8,317 | 12,700 | |||||||||||||||||||
Other current and noncurrent assets and liabilities | 4,372 | (11,856) | (17,818) | (51,791) | |||||||||||||||||||
Net cash flows from operating activities | 55,017 | 17,440 | 178,258 | 57,508 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchases of property and equipment | (1,746) | (2,318) | (4,954) | (4,576) | |||||||||||||||||||
Purchases of software and distribution rights | (4,442) | (8,540) | (19,024) | (15,021) | |||||||||||||||||||
Net cash flows from investing activities | (6,188) | (10,858) | (23,978) | (19,597) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of common stock | 704 | 719 | 1,397 | 1,426 | |||||||||||||||||||
Proceeds from exercises of stock options | 277 | 2,791 | 752 | 2,869 | |||||||||||||||||||
Repurchase of stock-based compensation awards for tax withholdings | (3,037) | (319) | (6,339) | (3,320) | |||||||||||||||||||
Repurchases of common stock | (57,159) | — | (119,674) | — | |||||||||||||||||||
Proceeds from revolving credit facility | — | 5,000 | 164,000 | 55,000 | |||||||||||||||||||
Repayment of revolving credit facility | — | — | (152,000) | (45,000) | |||||||||||||||||||
Proceeds from term portion of credit agreement | — | — | 500,000 | — | |||||||||||||||||||
Repayment of term portion of credit agreement | (9,375) | (19,475) | (538,448) | (34,081) | |||||||||||||||||||
Payments on or proceeds from other debt, net | (5,975) | (6,160) | (8,669) | (11,830) | |||||||||||||||||||
Payments for debt issuance costs | — | (2,160) | (5,141) | (2,160) | |||||||||||||||||||
Net increase (decrease) in settlement assets and liabilities | 12,782 | (21,253) | (6,151) | (24,087) | |||||||||||||||||||
Net cash flows from financing activities | (61,783) | (40,857) | (170,273) | (61,183) | |||||||||||||||||||
Effect of exchange rate fluctuations on cash | (1,024) | 2,870 | 1,290 | 5,427 | |||||||||||||||||||
Net decrease in cash and cash equivalents |
(13,978) | (31,405) | (14,703) | (17,845) | |||||||||||||||||||
Cash and cash equivalents, including settlement deposits, beginning of period | 238,096 | 228,232 | 238,821 | 214,672 | |||||||||||||||||||
Cash and cash equivalents, including settlement deposits, end of period | $ | 224,118 | $ | 196,827 | $ | 224,118 | $ | 196,827 | |||||||||||||||
Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 156,983 | $ | 132,391 | $ | 156,983 | $ | 132,391 | |||||||||||||||
Settlement deposits | 67,135 | 64,436 | 67,135 | 64,436 | |||||||||||||||||||
Total cash and cash equivalents | $ | 224,118 | $ | 196,827 | $ | 224,118 | $ | 196,827 |
Three Months Ended June 30, |
Six Months Ended June 30, |
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Adjusted EBITDA (millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Net income (loss) | $ | 30.9 | $ | (6.7) | $ | 23.1 | $ | (39.0) | |||||||||||||||
Plus: | |||||||||||||||||||||||
Income tax expense (benefit) | 9.4 | (3.3) | 9.7 | (14.1) | |||||||||||||||||||
Net interest expense | 14.5 | 16.4 | 29.5 | 31.8 | |||||||||||||||||||
Net other (income) expense | (1.1) | 4.1 | 0.9 | 7.5 | |||||||||||||||||||
Depreciation expense | 3.6 | 7.0 | 7.2 | 13.1 | |||||||||||||||||||
Amortization expense | 24.0 | 24.5 | 48.0 | 49.9 | |||||||||||||||||||
Non-cash stock-based compensation expense | 10.7 | 5.4 | 18.8 | 10.7 | |||||||||||||||||||
Adjusted EBITDA before significant transaction-related expenses | $ | 92.0 | $ | 47.4 | $ | 137.2 | $ | 59.9 | |||||||||||||||
Significant transaction-related expenses: | |||||||||||||||||||||||
Cost reduction strategies | 0.4 | 7.6 | 3.0 | 15.9 | |||||||||||||||||||
European datacenter migration | — | 1.2 | — | 2.2 | |||||||||||||||||||
Other | 0.4 | 1.2 | 0.7 | 4.3 | |||||||||||||||||||
Adjusted EBITDA | $ | 92.8 | $ | 57.4 | $ | 140.9 | $ | 82.3 | |||||||||||||||
Revenue, net of interchange: | |||||||||||||||||||||||
Revenue | $ | 373.5 | $ | 323.3 | $ | 689.5 | $ | 613.0 | |||||||||||||||
Interchange | 124.2 | 106.1 | 236.6 | 212.3 | |||||||||||||||||||
Revenue, net of interchange | $ | 249.3 | $ | 217.2 | $ | 452.9 | $ | 400.7 | |||||||||||||||
Net Adjusted EBITDA Margin | 37 | % | 26 | % | 31 | % | 21 | % |
Three Months Ended June 30, |
Six Months Ended June 30, |
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Segment Information (millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Revenue | |||||||||||||||||||||||
Banks | $ | 143.7 | $ | 117.5 | $ | 249.1 | $ | 205.5 | |||||||||||||||
Merchants | 38.0 | 36.5 | 73.7 | 71.3 | |||||||||||||||||||
Billers | 191.8 | 169.3 | 366.7 | 336.2 | |||||||||||||||||||
Total | $ | 373.5 | $ | 323.3 | $ | 689.5 | $ | 613.0 | |||||||||||||||
Recurring Revenue | |||||||||||||||||||||||
Banks | $ | 56.7 | $ | 57.4 | $ | 111.5 | $ | 113.0 | |||||||||||||||
Merchants | 35.6 | 34.4 | 69.4 | 66.9 | |||||||||||||||||||
Billers | 191.8 | 169.3 | 366.7 | 336.2 | |||||||||||||||||||
Total | $ | 284.1 | $ | 261.1 | $ | 547.6 | $ | 516.1 | |||||||||||||||
Segment Adjusted EBITDA | |||||||||||||||||||||||
Banks | $ | 79.2 | $ | 51.6 | $ | 120.9 | $ | 76.3 | |||||||||||||||
Merchants | 15.4 | 9.9 | 26.0 | 16.5 | |||||||||||||||||||
Billers | 37.4 | 31.2 | 68.2 | 60.9 | |||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
EPS Impact of Non-cash and Significant Transaction-related Items (millions) | EPS Impact | $ in Millions (Net of Tax) |
EPS Impact | $ in Millions (Net of Tax) |
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GAAP net income (loss) | $ | 0.29 | $ | 30.9 | $ | (0.06) | $ | (6.7) | |||||||||||||||
Adjusted for: | |||||||||||||||||||||||
Significant transaction-related expenses | 0.01 | 0.7 | 0.07 | 7.7 | |||||||||||||||||||
Amortization of acquisition-related intangibles | 0.06 | 6.3 | 0.06 | 6.4 | |||||||||||||||||||
Amortization of acquisition-related software | 0.03 | 3.3 | 0.04 | 3.8 | |||||||||||||||||||
Non-cash stock-based compensation | 0.08 | 8.1 | 0.04 | 4.1 | |||||||||||||||||||
Total adjustments | $ | 0.18 | $ | 18.4 | $ | 0.21 | $ | 22.0 | |||||||||||||||
Diluted EPS adjusted for non-cash and significant transaction-related items | $ | 0.47 | $ | 49.3 | $ | 0.15 | $ | 15.3 | |||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
EPS Impact of Non-cash and Significant Transaction-related Items (millions) | EPS Impact | $ in Millions (Net of Tax) |
EPS Impact | $ in Millions (Net of Tax) |
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GAAP net income (loss) | $ | 0.22 | $ | 23.1 | $ | (0.36) | $ | (39.0) | |||||||||||||||
Adjusted for: | |||||||||||||||||||||||
Significant transaction-related expenses | 0.03 | 2.9 | 0.16 | 17.1 | |||||||||||||||||||
Amortization of acquisition-related intangibles | 0.12 | 12.7 | 0.12 | 12.8 | |||||||||||||||||||
Amortization of acquisition-related software | 0.06 | 6.7 | 0.08 | 8.2 | |||||||||||||||||||
Non-cash stock-based compensation | 0.13 | 14.3 | 0.07 | 8.1 | |||||||||||||||||||
Total adjustments | $ | 0.34 | $ | 36.6 | $ | 0.43 | $ | 46.2 | |||||||||||||||
Diluted EPS adjusted for non-cash and significant transaction-related items | $ | 0.56 | $ | 59.7 | $ | 0.07 | $ | 7.2 | |||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
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Recurring Revenue (millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
SaaS and PaaS fees | $ | 235.4 | $ | 209.7 | $ | 451.1 | $ | 414.6 | |||||||||||||||
Maintenance fees | 48.7 | 51.4 | 96.5 | 101.5 | |||||||||||||||||||
Recurring Revenue | $ | 284.1 | $ | 261.1 | $ | 547.6 | $ | 516.1 |
New Bookings (millions)1 |
Three Months Ended June 30, |
TTM Ended June 30, | |||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Annual recurring revenue (ARR) bookings | $ | 13.1 | $ | 12.7 | $ | 68.8 | $ | 90.7 | |||||||||||||||
License and services bookings | 80.7 | 55.5 | 268.5 | 206.5 |