ACI Worldwide, Inc. Reports Financial Results for the Quarter Ended March 31, 2013
- Raising guidance due to completion of Online Resources acquisition
- Sales bookings, net of term extensions, up 19%, or 10% excluding Online Resources
- Operating free cash flow of $34 million, versus $4 million last year
- 60 month backlog now above $3 billion, including Online Resources
NAPLES, Fla.--(BUSINESS WIRE)-- ACI Worldwide, Inc. (NAS: ACIW) , a leading international provider of payment systems, today announced financial results for the period ended March 31, 2013. Management will host a conference call at 8:30 am EST to discuss these results as well as 2013 guidance. Interested persons may access a real-time audio broadcast of the teleconference at www.aciworldwide.com/investors or use the following numbers for dial in participation: US/Canada: (866) 914-7436, International/Local: +1 (817) 385-9117. Please provide your name, the conference name ACI Worldwide, Inc. and conference code 37077453. There will be a replay available for two weeks on (855) 859-2056 for US/Canada Dial-In and +1 (404) 537- 3406 for International/Local Dial-In participants.
"ACI accomplished a great deal during Q1, including completing the acquisition of Online Resources," said Chief Executive Officer Philip Heasley. "This transaction adds electronic bill payment to our payments capabilities, which will help us provide highly valued functionality to our financial institution customers. Additionally, our new sales bookings, net of term extensions were solid, growing 19% over last year, or roughly 10% excluding Online Resources' contribution. We are excited and confident about the remainder of 2013. Our ability to provide increased value to our customers and growth to our investors has never been better."
Online Resources Acquisition
ACI completed the acquisition of Online Resources on March 11, 2013 and our first phase of cost savings initiatives is substantially complete. Following these efforts, we expect to generate $19.5 million in annual cost synergies, of which $12 million should be realized in 2013. The acquisition adds a full-service electronic bill payment platform to our suite of products, a fast growing Biller Direct business and a significant base of biller connections that can be leveraged through innovation, technology and cost efficiencies.
We are increasing our FY 2013 guidance to account for the recently completed Online Resources acquisition. We now expect FY 2013 non-GAAP revenue to be between $895 and $915 million, non-GAAP operating income of between $170 and $180 million and adjusted EBITDA of between $266 million and $276 million. In addition, we expect revenue in the first half of 2013 to represent roughly 41-42% of our full year total. While this is slightly lower than our historical average, our strong pipeline and our visibility into the timing of implementations provide us comfort with this full year guidance. Online Resources' recurring revenue will slightly moderate our historic seasonality.
Financial Results for Q1
Q1 non-GAAP revenue was $163 million, an increase of $21 million, or 15%, over Q1 2012. GAAP revenue of $162 million was an increase of $24 million from Q1 of 2012. The increase was due to contribution from both Online Resources and a full quarter of S1, offset by a $15 million decline in non-recurring revenue, split between incidental capacity and "go-live" events. Monthly recurring revenue grew to $119 million, up $30 million, or $8 million excluding Online Resources and incremental S1 contribution. This represented 73% of total revenue in the quarter.
New sales bookings, net of term extensions, which is the key driver of our growth, was up 19% in the quarter, or 10% excluding the contribution from Online Resources. Our 60-month backlog increased by $671 million, after adjusting for foreign currency fluctuations, of which $660 million was due to Online Resources. Our 12 month backlog increased $154 million, after adjusting for foreign currency fluctuations, of which $138 million was due to Online Resources.
Due primarily to the decline in non-recurring revenue, non-GAAP operating income was $4 million, or $14 million below last year's number. Consolidated GAAP operating loss was $4 million for the quarter, versus a loss of $2 million last year. Adjusted EBITDA of $22 million was $9 million below last year's $31 million. Non-GAAP net income was $3 million, or $0.07 per diluted share, in Q1 2013, versus non-GAAP net income per diluted share of $0.28 last year. GAAP net loss was $2 million, or ($0.05) per diluted share, for both Q1 2013 and Q1 2012.
We ended the quarter with $112 million in cash on hand, up from $76 million as of December 31, 2012. We ended the quarter with a debt balance of $671 million. Our consolidated billed and unbilled receivable balance declined $35 million during the quarter, excluding the addition of Online Resources. Operating free cash flow ("OFCF") for the quarter was $34 million, up $30 million from $4 million in Q1 of last year.
About ACI Worldwide
ACI Worldwide powers electronic payments and banking for more than 1,750 financial institutions, retailers and processors around the world. ACI software enables $13 trillion in payments each day, processing transactions for more than 250 of the leading global retailers, and 18 of the world's 20 largest banks. Through our integrated suite of software products and hosted services, we deliver a broad range of solutions for payments processing, card and merchant management, online banking, mobile, branch and voice banking, fraud detection, and trade finance. To learn more about ACI and the reasons why our solutions are trusted globally, please visit www.aciworldwide.com or on Twitter @ACI_Worldwide.
Non-GAAP Financial Measures