Conference Call Scheduled for February 27th,
2014 at 8:30 am EST
NAPLES, Fla.--(BUSINESS WIRE)--
ACI Worldwide, Inc. (NASDAQ: ACIW), a leading international provider of electronic
payment and banking systems, today announced preliminary unaudited
financial results for the fourth quarter ended December 31, 2013. The
expected results presented are based on preliminary data and are not
final until the financial reporting process is complete. Full year
non-GAAP revenues are now expected to be in a range of $865 million to
$870 million, below our prior forecast of $883 million to $905 million.
Full year non-GAAP operating income is now expected to be in a range of
$150 million to $155 million, below our prior forecast of $165 million
to $175 million. Full year adjusted EBITDA is now expected to be $235
million to $240 million, below our prior forecast of $257 million to
$267 million. This revised guidance does not impact our expectations for
2014 as discussed at our recent investor day.
"ACI was unable to finalize several contracts we had expected to close
in the quarter," stated Phil Heasley, President and CEO, ACI Worldwide.
"While we are disappointed with the timing, we made the disciplined
decision to defer certain contracts until 2014 to position ACI for
better economic terms. Some of these contracts were consummated
subsequent to quarter end and we continue to be in discussions with all
others. Additionally, we had expected approximately $7 million of income
to be recorded in the fourth quarter that now must be recorded to the
acquisition-related balance sheet, thus reducing operating income.
Overall, we are increasingly optimistic that our structural efforts in
2013 have positioned us well for 2014 and beyond. We look forward to
providing additional color when we provide final results and detailed
2014 guidance later this month."
ACI plans to report final financial results for the fourth quarter 2013
on February 27, 2014. Management will host a conference call at 8:30 am
EST to discuss the results. Interested persons may access a real-time
audio broadcast of the teleconference at http://www.aciworldwide.com/investorrelations
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 ID code
76644361.
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.
About ACI Worldwide
ACI Worldwide, the Universal Payments Company, powers electronic
payments and banking for more than 5,000 financial institutions,
retailers, billers 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 21 of the world's 25 largest
banks. Through our comprehensive 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; trade finance; and electronic
bill presentment and payment. To learn more about ACI, please visit www.aciworldwide.com.
You can also find us on Twitter @ACI_Worldwide.
To supplement our financial results presented on a GAAP basis, we use
the non-GAAP measures indicated in the tables, which exclude certain
business combination accounting entries related to the acquisition of
S1, Online Resources and Official Payments and significant transaction
related expenses, as well as other significant non-cash expenses such as
depreciation, amortization and share-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 of viewing 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:
-
Non-GAAP revenue: revenue plus deferred revenue that would have been
recognized in the normal course of business by S1, Online Resources
and Official Payments if not for GAAP purchase accounting
requirements. Non-GAAP revenue should be considered in addition to,
rather than as a substitute for, revenue.
-
Non-GAAP operating income: operating income (loss) plus deferred
revenue that would have been recognized in the normal course of
business by S1, Online Resources and Official Payments if not for GAAP
purchase accounting requirements and significant transaction related
expenses. Non-GAAP operating income should be considered in addition
to, rather than as a substitute for, operating income.
-
Adjusted EBITDA: net income (loss) plus income tax expense, net
interest income (expense), net other income (expense), depreciation,
amortization and non-cash compensation, as well as deferred revenue
that would have been recognized in the normal course of business by
S1, Online Resources and Official Payments if not for GAAP purchase
accounting requirements and significant transaction related expenses.
Adjusted EBITDA should be considered in addition to, rather than as a
substitute for, operating income.
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, statements regarding: (i) expectations regarding 2013
financial results; and (ii) the expectations for 2014.
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 performance of our strategic product,
BASE24-eps, demand for our products, restrictions and other financial
covenants in our credit facility, consolidations and failures in the
financial services industry, customer reluctance to switch to a new
vendor, the accuracy of management's backlog estimates, the maturity of
certain products, our strategy to migrate customers to our next
generation products, ratable or deferred recognition of certain revenue
associated with customer migrations and the maturity of certain of our
products, 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, volatility and
disruption of the capital and credit markets and adverse changes in the
global economy, our existing levels of debt, impairment of our goodwill
or intangible assets, litigation, future acquisitions, strategic
partnerships and investments, risks related to the expected benefits to
be achieved in the transaction with Online Resources, 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, the
protection of our intellectual property in intellectual property
litigation, 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, 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, and volatility in our stock price.
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, Registration Statement on Form S-4,
and subsequent reports on Forms 10-Q and 8-K.
ACI Worldwide, Inc.
ACI Worldwide
John Kraft, 239-403-4627
Vice
President, Investor Relations & Strategic Analysis
john.kraft@aciworldwide.com
Source: ACI Worldwide, Inc.
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