02/27/2020 | Press release | Distributed by Public on 02/27/2020 05:04
ACI Worldwide, Inc. Reports Financial Results for the Quarter and Full Year Ended December 31, 2019
Thursday, February 27, 2020
NAPLES, FLA - February 27, 2020 - ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time electronic payment and banking solutions, announced financial results today for the quarter and full year ended December 31, 2019.
'As previously announced, our 2019 results were impacted by a delayed contract. Notwithstanding the contract delay, 2019 was a positive year for ACI and we are very pleased with our business overall. The Speedpay acquisition brought us a leadership position in electronic bill payment and contributed to materially improved profitability in our On Demand segment. We also delivered strong growth in our Real-Time Payments and eCommerce solutions,' said Craig Saks, Interim President and CEO, ACI Worldwide. 'We enter 2020 with a strong pipeline and solid growth expectations. Further, we are excited about the appointment of Odilon Almeida as our President and CEO and look forward to his leadership and contributions in realizing our long-term growth plans.'
FULL YEAR 2019 FINANCIAL SUMMARY
Full year 2019 revenue was $1.26 billion, up 25% from $1.0 billion in 2018. Adjusting for the Speedpay contribution, full year revenue grew 2% from 2018. Total recurring revenue increased 37% in the year to $891 million, or 71% of total revenue, from $652 million, or 65% of total revenue in 2018.
Net income in 2019 was $67 million compared to $69 million in 2018. Adjusted EBITDA in 2019 was $308 million, up 23% from $251 million in 2018.
In 2019, revenue from ACI's On Demand segment was $679 million, up 57% from $433 million in 2018. On Demand segment net adjusted EBITDA margin improved to 19% from 5% in 2018. On Demand segment net adjusted EBITDA margins are adjusted for pass through interchange revenue of $322 million and $170 million, for 2019 and 2018, respectively.
ACI's On Premise segment revenue was $579 million, up slightly from $577 million in 2018. On Premise segment adjusted EBITDA margin was 55%.
ACI ended 2019 with a 12-month backlog of $1.1 billion and a 60-month backlog of $5.8 billion. After adjusting for foreign currency fluctuations, our 12-month backlog increased $18 million and our 60-month backlog increased $144 million from 2018.
ACI ended 2019 with $121 million in cash on hand and a debt balance of $1.4 billion. During the year, the company repurchased 1.2 million shares for $36 million, or an average price of $29 per share and has $141 million remaining on its share repurchase authorization.
For 2020 we expect total revenue to be between $1.48 billion and $1.51 billion, which represents approximately 18% to 20% growth over 2019. We expect 2020 adjusted EBITDA to be in a range of $425 million to $445 million, which represents approximately 38% to 45% growth over 2019. This excludes between $5 million and $10 million in significant transaction-related expenses and $10 million of one-time charges to implement cost reduction strategies.
We expect revenue to be between $285 million and $295 million in Q1 2020.
CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS AND OUTLOOK
Management will host a conference call at 8:30 am ET today to discuss these results as well as 2020 guidance. 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 2899342. 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