ACI sees lowest leverage ratio in years; strong cash flow to endure

By Devika Patel

Knoxville, Tenn., Feb. 22 – ACI Worldwide, Inc. used strong cash-flow generation to pay down debt in 2017, which enabled the company to achieve its lowest leverage ratio in five years.

The company expects this strong cash flow generation will continue into 2018.

“As we exit 2017, we are at the lowest leverage ratio we’ve had over the past five years,” senior executive vice president and chief financial officer Scott Behrens said on the company’s fourth quarter and year ended Dec. 31 earnings conference call on Thursday.

“We generated revenue at the high end of our guidance, EBITDA in excess of our guidance.

“That strong EBITDA growth and resulting strong cash-flow generation was used in part to continue to pay down our debt resulting in our lowest leverage ratio in five years,” he said.

This EBITDA growth and strong free cash-flow generation is expected to continue.

“We believe we are well positioned for EBITDA growth and strong cash-flow generation in 2018 and beyond,” Behrens said.

Adjusted EBITDA for 2017 was $262 million, up 9% from $241 million in 2016.

As of Dec. 31, the company had $70 million in cash on hand and a debt balance of $696 million, down $57 million from $753 million at year end 2016.

ACI is a Naples, Fla.-based provider of payment systems.

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