Le Lézard
Classified in: Science and technology, Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

ACI Worldwide, Inc. Reports Financial Results for the Quarter Ended June 30, 2020


ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time digital payment software and solutions, today announced financial results for the quarter ended June 30, 2020.

"Despite the continued challenges presented by the COVID-19 pandemic, our focus on maximizing profitability, coupled with our resilient business model, produced significant EBITDA growth of 42% and margin expansion of 1,000 basis points versus the second quarter of last year," said Odilon Almeida, President and CEO of ACI Worldwide. "ACI's substantial recurring revenue, reliable cash flows, and high customer retention continue to provide stability as we navigate the macroeconomic landscape. We are also making significant progress in developing and implementing our three-pillar strategy, namely, Fit for Growth, Focused on Growth, and Step Change Value Creation. Guided by these three fundamental pillars and with a sense of urgency, we will build an agile and nimble organization with a best in class global sales process; we will focus our investment on growing geographies, segments and products; and we will pursue M&A opportunities that will drive step-change value creation. We are confident that we have the right team, assets, and three-pillar strategy to build a financially stronger and operationally superior company that is well positioned for continuous profitable growth and significant value creation."

Q2 2020 FINANCIAL RESULTS

New bookings in the quarter were $136 million, up 6% compared to Q2 last year.

Revenue in the quarter was $300 million, up 1% compared to Q2 2019, or up 2% after adjusting for foreign currency fluctuations. Total recurring revenue was up 4% compared to Q2 last year and comprised 78% of total revenue in Q2 2020 compared to 75% of total revenue in Q2 last year.

Net income in the quarter was $14 million, up 146% compared to Q2 last year. Adjusted EBITDA in the quarter was $78 million, up 42% compared to Q2 last year. Net adjusted EBITDA margin was 35% versus 25% in Q2 last year.

Revenue from ACI's On Demand segment was $181 million, up 5% from Q2 last year. On Demand segment net adjusted EBITDA margin improved to 31% compared to 18% last year. On Demand segment net adjusted EBITDA margin is adjusted for pass through interchange revenue of $75 million and $78 million, for Q2 2020 and Q2 2019, respectively.

Revenue from ACI's On Premise segment was $119 million, down 5% from Q2 last year primarily as a result of lower non-recurring license and services revenue. On Premise segment adjusted EBITDA margin was 50% in Q2 2020 versus 46% in Q2 2019.

ACI ended Q2 2020 with a 12-month backlog of $1.1 billion and a 60-month backlog of $5.8 billion.

Cash flows from operating activities in the quarter were $68 million, up 371% from Q2 2019. ACI ended the quarter with $129 million in cash on hand and $300 million available on the Company's credit facility. The Company paid down $40 million in debt during the quarter.

FIRST HALF 2020 FINANCIAL RESULTS

New bookings in the six-months ended June 30, 2020 were $256 million, up 29% compared to the same period last year.

Revenue in the six-months ended June 30, 2020 was $591 million, up 17% compared to the same period last year driven primarily by the acquisition of Speedpay. Recurring revenue was 81% of total revenue in the six-months ended June 30, 2020 compared to 77% of total revenue in the same period last year.

Net loss in the six-months ended June 30, 2020 of $10 million, compared to a net loss of $20 million in the same period last year. Adjusted EBITDA in the six-months ended June 30, 2020 was $116 million, up 84% compared to the same period last year. Net adjusted EBITDA margin was 27% versus 17% in the first half last year.

Revenue from ACI's On Demand segment was $374 million in the six-months ended June 30, 2020, up 32% from the same period last year. On Demand segment net adjusted EBITDA margin improved to 27% compared to 11% last year. On Demand segment net adjusted EBITDA margin is adjusted for pass through interchange revenue of $164 million and $123 million, for the six-months ended June 30, 2020 and 2019, respectively.

Revenue from ACI's On Premise segment was $218 million in the six-months ended June 30, 2020, down 1% from the same period last year. On Premise segment adjusted EBITDA margin was 41% in the six-months ended June 30, 2020 versus 39% in the same period last year.

GUIDANCE

While a significant portion of ACI's revenues are recurring and the Company is optimistic about its pipeline of deals, the duration and severity of the COVID-19 pandemic has caused uncertainty regarding the timing of signing and realizing of revenue from new business. As previously announced, ACI has suspended guidance regarding its financial outlook for the full year 2020.

CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS
Management will host a conference call at 8:30 am ET today to discuss these results. Interested persons may access a real-time audio broadcast of the teleconference at http://investor.aciworldwide.com/ or use the following numbers for dial-in participation: US/Canada: (866) 914-7436, international: +1 (817) 385-9117. Please provide your name, the conference name ACI Worldwide, Inc. and conference code 6539894. There will be a replay of the call available for two weeks on (855) 859-2056 for US/Canada callers and +1 (404) 537-3406 for international participants.

About ACI Worldwide
ACI Worldwide powers digital payments for more than 6,000 organizations around the world. More than 1,000 of the largest financial institutions and intermediaries, as well as thousands of global merchants, rely on ACI to execute $14 trillion each day in payments and securities. In addition, myriad organizations utilize our bill presentment and payment services. Through our comprehensive suite of software solutions delivered on customers' premises, through the public cloud or through ACI's private cloud, we provide real-time payment capabilities and enable the industry's most complete omni-channel payments experience.

© Copyright ACI Worldwide, Inc. 2020.

ACI, ACI Worldwide, ACI Payment Systems, the ACI logo and all ACI product names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties' trademarks referenced are the property of their respective owners.

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction-related expenses, as well as other significant non-cash expenses such as depreciation, amortization and stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP.

We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include:

ACI is also presenting adjusted operating free cash flow, which is defined as net cash provided by operating activities and net after-tax payments associated with significant transaction-related expenses, less capital expenditures. Adjusted operating free cash flow is considered a non-GAAP financial measure as defined by SEC Regulation G. We utilize this non-GAAP financial measure, and believe it is useful to investors, as an indicator of cash flow available for debt repayment and other investing activities, such as capital investments and acquisitions. We utilize adjusted operating free cash flow as a further indicator of operating performance and for planning investment activities. Adjusted operating free cash flow should be considered in addition to, rather than as a substitute for, net cash provided by operating activities. A limitation of adjusted operating free cash flow is that it does not represent the total increase or decrease in the cash balance for the period. This measure also does not exclude mandatory debt service obligations and, therefore, does not represent the residual cash flow available for discretionary expenditures. We believe that adjusted operating free cash flow is useful to investors to provide disclosures of our operating results on the same basis as that used by our management.

ACI backlog includes estimates for SaaS and PaaS, license, maintenance, and services revenue specified in executed contracts but excluded from contracted revenue that will be recognized in future periods, as well as revenue from assumed contract renewals to the extent that we believe recognition of the related revenue will occur within the corresponding backlog period. We have historically included assumed renewals in backlog estimates based upon automatic renewal provisions in the executed contract and our historic experience with customer renewal rates.

Backlog is considered a non-GAAP financial measure as defined by SEC Regulation G. Our 60-month backlog estimates are derived using the following key assumptions:

Estimates of future financial results require substantial judgment and are based on several assumptions, as described above. These assumptions may turn out to be inaccurate or wrong for reasons outside of management's control. For example, our customers may attempt to renegotiate or terminate their contracts for many reasons, including mergers, changes in their financial condition, or general changes in economic conditions (e.g. economic declines resulting from COVID-19) in the customer's industry or geographic location. We may also experience delays in the development or delivery of products or services specified in customer contracts, which may cause the actual renewal rates and amounts to differ from historical experiences. Changes in foreign currency exchange rates may also impact the amount of revenue recognized in future periods. Accordingly, there can be no assurance that amounts included in backlog estimates will generate the specified revenues or that the actual revenues will be generated within the corresponding 60-month period. Additionally, because certain components of Committed Backlog and all of Renewal Backlog estimates are operating metrics, the estimates are not required to be subject to the same level of internal review or controls as contracted but not recognized Committed Backlog.

Backlog estimates should be considered in addition to, rather than as a substitute for, reported revenue and contracted but not recognized revenue (including deferred revenue).

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as "believes," "will," "expects," "anticipates," "intends," and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements in this press release include, but are not limited to, expectations regarding: (i) ACI's substantial recurring revenue, reliable cash flows, and high customer retention continue to provide stability as we navigate the macroeconomic landscape, (ii) progress in developing and implementing our three-pillar strategy, (iii) our building an agile and nimble organization with a best in class global sales process, (iv) our confidence that we have the right team, assets, and three-pillar strategy to build a financially stronger and operationally superior company that is well positioned for continuous profitable growth and significant value creation, (v) our optimism about our pipeline of deals, and (vi) uncertainty from COVID-19 and expectations for the rest of 2020.

All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, the success of our Universal Payments strategy, demand for our products, consolidations and failures in the financial services industry, customer reluctance to switch to a new vendor, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, the complexity of our products and services and the risk that they may contain hidden defects or be subjected to security breaches or viruses, compliance of our products with applicable legislation, governmental regulations and industry standards, our compliance with privacy regulations, our ability to protect customer information from security breaches or attacks, our ability to adequately defend our intellectual property, exposure to credit or operating risks arising from certain payment funding methods, business interruptions or failure of our information technology and communication systems, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, exposure to unknown tax liabilities, adverse changes in the global economy, worldwide events outside of our control, failure to attract and retain key personnel, litigation, future acquisitions, strategic partnerships and investments, integration of and achieving benefits from the Speedpay acquisition, impairment of our goodwill or intangible assets, restrictions and other financial covenants in our debt agreements, our existing levels of debt, replacement of LIBOR benchmark interest rate, the accuracy of management's backlog estimates, exposure to unknown tax liabilities, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, volatility in our stock price, and the COVID-19 pandemic. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.

ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands, except share and per share amounts)

 

 

June 30,
2020

 

December 31,
2019

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

129,223

 

 

$

121,398

 

Receivables, net of allowances

324,659

 

 

359,197

 

Settlement assets

338,372

 

 

391,039

 

Prepaid expenses

29,620

 

 

24,542

 

Other current assets

30,533

 

 

24,200

 

Total current assets

852,407

 

 

920,376

 

Noncurrent assets

 

 

 

Accrued receivables, net

199,964

 

 

213,041

 

Property and equipment, net

69,011

 

 

70,380

 

Operating lease right-of-use assets

54,816

 

 

57,382

 

Software, net

216,287

 

 

234,517

 

Goodwill

1,280,226

 

 

1,280,525

 

Intangible assets, net

335,697

 

 

356,969

 

Deferred income taxes, net

59,301

 

 

51,611

 

Other noncurrent assets

69,868

 

 

72,733

 

TOTAL ASSETS

$

3,137,577

 

 

$

3,257,534

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities

 

 

 

Accounts payable

$

42,795

 

 

$

37,010

 

Settlement liabilities

314,017

 

 

368,719

 

Employee compensation

36,717

 

 

29,318

 

Current portion of long-term debt

34,206

 

 

34,148

 

Deferred revenue

73,729

 

 

65,784

 

Other current liabilities

78,995

 

 

76,971

 

Total current liabilities

580,459

 

 

611,950

 

Noncurrent liabilities

 

 

 

Deferred revenue

63,692

 

 

53,155

 

Long-term debt

1,282,889

 

 

1,339,007

 

Deferred income taxes, net

31,140

 

 

32,053

 

Operating lease liabilities

45,999

 

 

46,766

 

Other noncurrent liabilities

42,661

 

 

44,635

 

Total liabilities

2,046,840

 

 

2,127,566

 

Commitments and contingencies

 

 

 

Stockholders' equity

 

 

 

Preferred stock

?

 

 

?

 

Common stock

702

 

 

702

 

Additional paid-in capital

667,554

 

 

667,658

 

Retained earnings

920,478

 

 

930,830

 

Treasury stock

(399,663)

 

 

(377,639)

 

Accumulated other comprehensive loss

(98,334)

 

 

(91,583)

 

Total stockholders' equity

1,090,737

 

 

1,129,968

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

3,137,577

 

 

$

3,257,534

 

ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

Revenues

 

 

 

 

 

 

 

Software as a service and platform as a service

$

180,573

 

 

$

172,499

 

 

$

373,523

 

 

$

281,056

 

License

50,136

 

 

52,541

 

 

78,265

 

 

73,619

 

Maintenance

52,749

 

 

51,922

 

 

106,029

 

 

107,033

 

Services

16,452

 

 

20,656

 

 

33,578

 

 

41,765

 

Total revenues

299,910

 

 

297,618

 

 

591,395

 

 

503,473

 

Operating expenses

 

 

 

 

 

 

 

Cost of revenue (1)

147,346

 

 

155,240

 

 

313,183

 

 

270,181

 

Research and development

35,578

 

 

39,235

 

 

74,602

 

 

75,429

 

Selling and marketing

24,455

 

 

32,962

 

 

54,538

 

 

62,392

 

General and administrative

29,758

 

 

49,319

 

 

65,684

 

 

80,836

 

Depreciation and amortization

33,635

 

 

26,744

 

 

65,533

 

 

48,610

 

Total operating expenses

270,772

 

 

303,500

 

 

573,540

 

 

537,448

 

Operating income (loss)

29,138

 

 

(5,882)

 

 

17,855

 

 

(33,975)

 

Other income (expense)

 

 

 

 

 

 

 

Interest expense

(14,142)

 

 

(15,323)

 

 

(31,313)

 

 

(26,937)

 

Interest income

2,954

 

 

2,997

 

 

5,854

 

 

6,030

 

Other, net

2,041

 

 

1,402

 

 

(7,717)

 

 

(510)

 

Total other income (expense)

(9,147)

 

 

(10,924)

 

 

(33,176)

 

 

(21,417)

 

Income (loss) before income taxes

19,991

 

 

(16,806)

 

 

(15,321)

 

 

(55,392)

 

Income tax expense (benefit)

5,916

 

 

(22,531)

 

 

(4,969)

 

 

(35,154)

 

Net income (loss)

$

14,075

 

 

$

5,725

 

 

$

(10,352)

 

 

$

(20,238)

 

Income (loss) per common share

 

 

 

 

 

 

 

Basic

$

0.12

 

 

$

0.05

 

 

$

(0.09)

 

 

$

(0.17)

 

Diluted

$

0.12

 

 

$

0.05

 

 

$

(0.09)

 

 

$

(0.17)

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

Basic

116,033

 

 

116,586

 

 

116,019

 

 

116,287

 

Diluted

117,264

 

 

118,786

 

 

116,019

 

 

116,287

 

 

(1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale.

ACI WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

2020

 

2019

 

2020

 

2019

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income (loss)

$

14,075

 

 

$

5,725

 

 

$

(10,352)

 

 

$

(20,238)

 

Adjustments to reconcile net income (loss) to net cash flows from operating activities:

 

 

 

 

 

 

 

Depreciation

5,927

 

 

5,930

 

 

11,752

 

 

11,831

 

Amortization

29,765

 

 

23,848

 

 

57,762

 

 

42,799

 

Amortization of operating lease right-of-use assets

5,245

 

 

3,646

 

 

8,801

 

 

7,029

 

Amortization of deferred debt issuance costs

1,204

 

 

930

 

 

2,416

 

 

1,683

 

Deferred income taxes

5,671

 

 

(23,917)

 

 

(4,742)

 

 

(41,331)

 

Stock-based compensation expense

7,932

 

 

14,372

 

 

14,882

 

 

20,957

 

Other

1,122

 

 

959

 

 

1,772

 

 

1,533

 

Changes in operating assets and liabilities, net of impact of acquisitions:

 

 

 

 

 

 

 

Receivables

(19,646)

 

 

(5,953)

 

 

29,053

 

 

88,596

 

Accounts payable

12,374

 

 

11,591

 

 

6,287

 

 

1,294

 

Accrued employee compensation

1,192

 

 

7,435

 

 

8,177

 

 

(1,163)

 

Current income taxes

(4,006)

 

 

(4,593)

 

 

(9,367)

 

 

(5,634)

 

Deferred revenue

(259)

 

 

(13,854)

 

 

22,236

 

 

(17,981)

 

Other current and noncurrent assets and liabilities

7,433

 

 

(11,681)

 

 

(13,148)

 

 

(32,510)

 

Net cash flows from operating activities

68,029

 

 

14,438

 

 

125,529

 

 

56,865

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of property and equipment

(7,018)

 

 

(4,665)

 

 

(10,615)

 

 

(9,915)

 

Purchases of software and distribution rights

(8,516)

 

 

(6,722)

 

 

(15,057)

 

 

(11,300)

 

Acquisition of businesses, net of cash acquired

?

 

 

(758,546)

 

 

?

 

 

(758,546)

 

Net cash flows from investing activities

(15,534)

 

 

(769,933)

 

 

(25,672)

 

 

(779,761)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from issuance of common stock

947

 

 

922

 

 

1,894

 

 

1,753

 

Proceeds from exercises of stock options

722

 

 

959

 

 

1,122

 

 

5,816

 

Repurchase of stock-based compensation awards for tax withholdings

(151)

 

 

(185)

 

 

(11,124)

 

 

(2,809)

 

Repurchases of common stock

?

 

 

?

 

 

(28,881)

 

 

(631)

 

Proceeds from revolving credit facility

?

 

 

250,000

 

 

30,000

 

 

250,000

 

Repayment of revolving credit facility

(30,000)

 

 

(15,000)

 

 

(69,000)

 

 

(15,000)

 

Proceeds from term portion of credit agreement

?

 

 

500,000

 

 

?

 

 

500,000

 

Repayment of term portion of credit agreement

(9,738)

 

 

(3,487)

 

 

(19,475)

 

 

(9,424)

 

Payments for debt issuance costs

?

 

 

(12,830)

 

 

?

 

 

(12,830)

 

Payments on or proceeds from other debt, net

(1,093)

 

 

(363)

 

 

(4,686)

 

 

(2,220)

 

Net cash flows from financing activities

(39,313)

 

 

720,016

 

 

(100,150)

 

 

714,655

 

Effect of exchange rate fluctuations on cash

(3,083)

 

 

(1,298)

 

 

8,118

 

 

(865)

 

Net increase (decrease) in cash and cash equivalents

10,099

 

 

(36,777)

 

 

7,825

 

 

(9,106)

 

Cash and cash equivalents, beginning of period

119,124

 

 

176,173

 

 

121,398

 

 

148,502

 

Cash and cash equivalents, end of period

$

129,223

 

 

$

139,396

 

 

$

129,223

 

 

$

139,396

 

Adjusted EBITDA (millions)

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

Net income (loss)

$

14.1

 

 

$

5.7

 

 

$

(10.4)

 

 

$

(20.2)

 

Plus:

 

 

 

 

 

 

 

Income tax expense (benefit)

5.9

 

 

(22.5)

 

 

(5.0)

 

 

(35.2)

 

Net interest expense

11.2

 

 

12.3

 

 

25.5

 

 

20.9

 

Net other income (expense)

(2.0)

 

 

(1.4)

 

 

7.7

 

 

0.5

 

Depreciation expense

5.9

 

 

5.9

 

 

11.8

 

 

11.8

 

Amortization expense

29.8

 

 

23.9

 

 

57.8

 

 

42.8

 

Non-cash stock-based compensation expense

7.9

 

 

14.4

 

 

14.9

 

 

21.0

 

Adjusted EBITDA before significant transaction-related expenses

$

72.8

 

 

$

38.3

 

 

$

102.3

 

 

$

41.6

 

Significant transaction-related expenses

5.0

 

 

16.6

 

 

13.5

 

 

21.3

 

Adjusted EBITDA

$

77.8

 

 

$

54.9

 

 

$

115.8

 

 

$

62.9

 

Segment Information (millions)

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

Revenue

 

 

 

 

 

 

 

ACI On Demand

$

180.6

 

 

$

172.5

 

 

$

373.5

 

 

$

282.4

 

ACI On Premise

119.3

 

 

125.1

 

 

217.9

 

 

221.1

 

Total

$

299.9

 

 

$

297.6

 

 

$

591.4

 

 

$

503.5

 

Interchange

 

 

 

 

 

 

 

ACI On Demand

$

74.8

 

 

$

78.4

 

 

$

163.6

 

 

$

123.3

 

Net Revenue

 

 

 

 

 

 

 

ACI On Demand

$

105.8

 

 

$

94.1

 

 

$

209.9

 

 

$

159.1

 

ACI On Premise

119.3

 

 

125.1

 

 

217.9

 

 

221.1

 

Total

$

225.1

 

 

$

219.2

 

 

$

427.8

 

 

$

380.2

 

Segment Adjusted EBITDA

 

 

 

 

 

 

 

ACI On Demand

$

33.1

 

 

$

17.3

 

 

$

56.2

 

 

$

17.1

 

ACI On Premise

$

59.1

 

 

$

57.1

 

 

$

90.0

 

 

$

85.3

 

Segment Net Adjusted EBITDA Margin

 

 

 

 

 

 

 

ACI On Demand

31.3

%

 

18.4

%

 

26.8

%

 

10.7

%

ACI On Premise

49.5

%

 

45.6

%

 

41.3

%

 

38.6

%

Reconciliation of Adjusted Operating Free Cash Flow (millions)

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

Net cash flows from operating activities

$

68.0

 

 

$

14.4

 

 

$

125.5

 

 

$

56.9

 

Net after-tax payments associated with significant transaction-related expenses

5.0

 

 

12.5

 

 

9.0

 

 

15.2

 

Less: capital expenditures

(15.5)

 

 

(11.4)

 

 

(25.7)

 

 

(21.2)

 

Adjusted Operating Free Cash Flow

$

57.5

 

 

$

15.5

 

 

$

108.8

 

 

$

50.9

 

EPS impact of non-cash and significant transaction-related items (millions)

Three Months Ended June 30,

 

2020

 

2019

 

EPS Impact

 

$ in Millions
(Net of Tax)

 

EPS Impact

 

$ in Millions
(Net of Tax)

GAAP net income (loss)

$

0.12

 

 

$

14.1

 

 

$

0.05

 

 

$

5.7

 

Adjusted for:

 

 

 

 

 

 

 

Tax benefit from release of valuation allowance

?

 

 

?

 

 

(0.16)

 

 

(18.5)

 

Significant transaction-related expenses

0.03

 

 

3.5

 

 

0.11

 

 

12.6

 

Amortization of acquisition-related intangibles

0.06

 

 

7.0

 

 

0.05

 

 

5.7

 

Amortization of acquisition-related software

0.07

 

 

8.1

 

 

0.06

 

 

7.0

 

Non-cash stock-based compensation

0.05

 

 

6.0

 

 

0.09

 

 

10.9

 

Total adjustments

$

0.21

 

 

$

24.6

 

 

$

0.15

 

 

$

17.7

 

Diluted EPS adjusted for non-cash and significant transaction-related items

$

0.33

 

 

$

38.7

 

 

$

0.20

 

 

$

23.4

 

EPS impact of non-cash and significant transaction-related items (millions)

 

Six Months Ended June 30,

 

 

2020

 

2019

 

 

EPS Impact

 

$ in Millions
(Net of Tax)

 

EPS Impact

 

$ in Millions
(Net of Tax)

GAAP net income (loss)

 

$

(0.09)

 

 

$

(10.4)

 

 

$

(0.17)

 

 

$

(20.2)

 

Adjusted for:

 

 

 

 

 

 

 

 

Tax benefit from release of valuation allowance

 

?

 

 

?

 

 

(0.16)

 

 

(18.5)

 

Significant transaction-related expenses

 

0.09

 

 

10.3

 

 

0.14

 

 

16.2

 

Amortization of acquisition-related intangibles

 

0.12

 

 

14.1

 

 

0.09

 

 

9.9

 

Amortization of acquisition-related software

 

0.14

 

 

16.1

 

 

0.11

 

 

12.5

 

Non-cash stock-based compensation

 

0.10

 

 

11.3

 

 

0.14

 

 

15.9

 

Total adjustments

 

$

0.45

 

 

$

51.8

 

 

$

0.32

 

 

$

36.0

 

Diluted EPS adjusted for non-cash and significant transaction-related items

 

$

0.36

 

 

$

41.4

 

 

$

0.15

 

 

$

15.8

 

 


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