Company: ACIW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000935036-25-000013
Chunk: 89

Company: ACI WORLDWIDE, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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2024, due to a $19.0 million increase in revenue, partially offset by a $18.8 million increase in cash operating expense, primarily payment card interchange and processing fees.

Liquidity and Capital Resources

General

Our primary liquidity needs are: (i) to fund normal operating expenses; (ii) to meet the interest and principal requirements of our outstanding indebtedness; and (iii) to fund acquisitions, capital expenditures, and lease payments. We believe these needs will be satisfied using cash flow generated by our operations, our cash and cash equivalents, and available borrowings under our revolving credit facility over the next 12 months and beyond.

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Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. As of March 31, 2025, we had $230.1 million of cash and cash equivalents, of which $117.3 million was held by our foreign subsidiaries. If these funds were needed for our operations in the United States, we may potentially be required to accrue and pay foreign and U.S. state income taxes to repatriate these funds. As of March 31, 2025, only the earnings from our Indian foreign subsidiaries are indefinitely reinvested. We are also permanently reinvested in the outside book/tax basis differences related to foreign subsidiaries. These outside basis differences could reverse through the sale of foreign subsidiaries, as well as various other events, none of which are considered probable as of March 31, 2025.

Available Liquidity

The following table sets forth our available liquidity for the dates indicated (in thousands):March 31, 2025December 31, 2024Cash and cash equivalents$230,057 $216,394 Availability under revolving credit facility598,100 528,100 Total liquidity$828,157 $744,494 

The increase in total liquidity is primarily attributable to cash flows generated from operations.

The Company and ACI Payments, Inc., a wholly owned subsidiary, maintain a $75.0 million uncommitted overdraft facility with Bank of America, N.A. The overdraft facility acts as a secured loan under the terms of the Credit Agreement to provide an additional funding mechanism for timing differences that can occur in the bill payment settlement process. As of March 31, 2025, the full $75.0 million was available. 

Stock Repurchase Program

The board approved a stock repurchase program authorizing the Company, as market and