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8-K - FORM 8-K - JDA SOFTWARE GROUP INC | p16755e8vk.htm |
Exhibit 99.1
JDA Software Group, Inc.
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JDA Investor Relations and Public Relations | |
NEWS RELEASE
|
contacts noted at the end of release |
JDA Software Announces Record Quarterly Revenues
JDA Signs 10 Large Transactions in Q4 2009
i2 Transaction on Track to Close on January 28, 2010
i2 Transaction on Track to Close on January 28, 2010
Scottsdale, Arizona January 25, 2010 JDA® Software Group, Inc. (NASDAQ:
JDAS) today announced financial results for the fourth quarter and year ended December 31, 2009.
JDA reported record total revenues of $107.1 million and adjusted EBITDA of $27.3 million in fourth
quarter 2009, compared to total revenues of $106.2 million and adjusted EBITDA of $28.0 million in
fourth quarter 2008. JDA reported software revenues of $28.6 million for fourth quarter 2009,
compared to $34.3 million in fourth quarter 2008, which included an $11.5 million software deal as
reported last year. JDA also reported adjusted non-GAAP earnings for fourth quarter 2009 of $0.43
per share, compared to $0.43 per share in fourth quarter 2008. GAAP income applicable to common
shareholders for fourth quarter 2009 was $8.5 million or $0.24 per share, compared to a GAAP net
loss of $13.5 million or $0.44 per share in fourth quarter 2008.
During fourth quarter 2009 we achieved record results with 10 software deals in excess of
$1.0 million, the best quarter of the year for our Americas and EMEA regions and the highest
quarterly revenues in our history, said JDA CEO Hamish Brewer. While several competitors stumbled
last year, we maintained a strong financial position and enjoyed great momentum with companies of
all sizes choosing our proven supply chain solutions. With the industry experiencing a solid
holiday period, we look forward to carrying that momentum into 2010.
JDA is on track to finalize the i2 acquisition on January 28, 2010. The Company has scheduled
an analyst conference call on February 16, 2010 at 11:00 a.m. Eastern time to discuss its 2010
outlook, which JDA expects to make public on the morning of February 16 and post on www.jda.com
after releasing to the wire services.
Fourth Quarter 2009 Financial Summary
| Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $27.3 million in the fourth quarter 2009, compared to $28.0 million in fourth quarter 2008. | ||
| Adjusted non-GAAP earnings per share for fourth quarter 2009 were $0.43 using 35.0 million fully diluted shares, compared to $0.43 per share in fourth quarter 2008, using 31.1 million fully diluted shares. Adjusted non-GAAP earnings exclude amortization of acquired software |
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technology and intangibles, restructuring charges, stock-based compensation, costs related to the pending acquisition of i2, as well as the costs of the abandoned acquisition in 2008. | |||
| GAAP income applicable to common shareholders for fourth quarter 2009 was $8.5 million or $0.24 per share, compared to a GAAP net loss of $13.5 million or $0.44 per share in fourth quarter 2008. The net loss for 2008 includes a pre-tax charge of $29.7 million related to an abandoned acquisition. | ||
| DSO was 58 days at the end of fourth quarter 2009, compared to 67 days at the end of fourth quarter 2008. | ||
| Cash flow from operations was $16.0 million in fourth quarter 2009, compared to adjusted non-GAAP cash flow from operations of $2.6 million in fourth quarter 2008, which excludes $26.1 million of costs related to the abandoned acquisition in fourth quarter 2008. | ||
| During fourth quarter 2009 we issued $275 million of 5-year 8 percent senior notes. The net proceeds were placed in escrow and will be used to fund a portion of the cash merger consideration of the pending acquisition of i2. | ||
| Cash and cash equivalents were $76.0 million at December 31, 2009, after transferring $17.1 million to restricted cash in connection with the pending acquisition of i2, compared to $32.7 million at December 31, 2008. |
Fourth Quarter 2009 Highlights
The strength of our software sales was evident across the board as we achieved sequential
revenue growth in each of our geographic regions, while closing 69 new deals in the quarter,
commented Brewer.
| Regional Sales Performance: The following presents a high-level summary of JDAs regional performance: |
| JDA closed $19.1 million in software deals in its Americas region during fourth quarter 2009, compared to $12.6 million in third quarter 2009 and $27.4 million in fourth quarter 2008, which included one software transaction of $11.5 million. Customers that signed licenses included: Guitar Center, Inc., Hibbett Sports, Inc., The Dress Barn, Inc., Revlon Consumer Products Corporation, Schwans Shared Services, LLC and Grupo Empressarial SJ SA de CV. | ||
| Software sales in JDAs Europe, Middle East and Africa (EMEA) region were $6.4 million in fourth quarter 2009, compared to $4.1 million in third quarter 2009 and $5.6 |
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million in fourth quarter 2008. New software deals in the EMEA region included: Merck Serono S.A., KITS France, Marks & Spencer plc, PEP, Al Othaim Commercial Company, Massdiscounters t/a Game and Dion Wired. | |||
| JDAs Asia Pacific region posted software sales of $3.1 million in fourth quarter 2009, compared to $542,000 in third quarter 2009 and $1.3 million in fourth quarter 2008. Wins in this region included: Parle Products Pvt Ltd., SM Retail (Shoemart Philippines), Target Australia Pty Ltd. and Nestlé Philippines, Inc. |
| Record Attendance at JDA EMEA User Conference: JDA enjoyed the largest attendance ever at its JDAConnect 2009 conference. This record participation was unexpected with the tight expense controls that are in place across the board. The conference was held on October 21-22 in London and brought together members of the JDA customer community, primarily based in its EMEA region. |
Fiscal 2009 Results
| Total revenues of $385.8 million and software revenues of $88.8 million for the 12 months ended December 31, 2009, compared to total revenues of $390.3 million and software revenues of $92.9 million for the 12 months ended December 31, 2008. | ||
| Adjusted EBITDA was $96.8 million for the 12 months ended December 31, 2009, compared to $97.4 million for the 12 months ended December 31, 2008. | ||
| Adjusted non-GAAP earnings for the 12 months ended December 31, 2009 were $1.56 per share, compared to adjusted non-GAAP earnings per share of $1.47 for the 12 months ended December 31, 2008, and exclude amortization of acquired software technology and intangibles, restructuring charges, stock-based compensation, costs related to the pending acquisition of i2, as well as the costs of the abandoned acquisition of i2 in 2008. | ||
| GAAP income applicable to common shareholders for the 12 months ended December 31, 2009 was $17.7 million or $0.50 per share, as compared to GAAP income applicable to common shareholders of $3.1 million or $0.09 per share in the 12 months ended December 31, 2008. | ||
| Cash flow from operations in the 12 months ended December 31, 2009 was $96.5 million, compared to adjusted non-GAAP cash flow from operations of $73.9 million in the 12 months ended December 31, 2008, which excludes $26.8 million of costs related to the abandoned i2 acquisition in fourth quarter 2008. |
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Conference Call Information
JDA Software Group, Inc. will host a conference call at 4:45 p.m. Eastern time today to
discuss earnings results for its fourth quarter and year ended December 31, 2009. To participate in
the call, dial 1-877-941-2069 (United States) or 1-480-629-9713 (International) and ask the
operator for the JDA Software Group, Inc. Fourth Quarter 2009 Earnings Conference Call. A live
audio webcast of the conference call can be accessed by logging onto www.jda.com in the
Investor Relations section.
A replay of the conference call will begin on January 25, 2010 at 8:00 p.m. Eastern time and
will end on February 25, 2010. To hear a replay of the call over the Internet, access JDAs Web
site at www.jda.com.
About JDA Software Group, Inc.
(NASDAQ: JDAS) is the worlds leading supply chain solutions provider, helping companies
optimize operations and improve profitability. JDA drives business efficiency for its global
customer base of nearly 6,000 retailers, manufacturers, wholesaler-distributors and services
industries companies through deep domain expertise and innovative solutions. JDAs combination of
unmatched services, together with its integrated yet modular solutions for merchandising, supply
chain planning and execution and revenue management, leverage the strong heritage and knowledge
capital of market leaders including Manugistics®, E3®, Intactix® and Arthur®. When supply chain
results matter, companies turn to JDA. For more information about JDA, visit www.jda.com or
contact us at info@jda.com or call +1.800.479.7382 / +1.480.308.3000.
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JDA Investor Relations Contacts:
Pete Hathaway, Executive Vice President/Chief Financial Officer
480-308-3000
480-308-3000
Mike Burnett, GVP, Treasury and Investor Relations
mike.burnett@jda.com
480-308-3392
mike.burnett@jda.com
480-308-3392
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Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that are made in reliance upon the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are generally accompanied by words such as will, and expect and other words with
forward-looking connotations. In this press release, such forward-looking statements include,
without limitation, Mr. Brewers statement that the Company will maintain a strong financial
position and carry the momentum of its 2009 operating performance into 2010, and our belief that we
are on target to finalize the i2 acquisition on January 28, 2010.
These statements reflect managements current beliefs, assumptions and expectations and are
subject to a number of factors that may cause actual results to differ materially. These factors
include but are not limited to: the unprecedented volatility in the global economy; the risk that
the future business operations of i2 will not be successful; the risk that we will not realize all
of the anticipated benefits from our acquisition of i2; the risk that customer retention and
revenue expansion goals for the i2 transaction will not be met and that disruptions from the i2
transaction will harm relationships with customers, employees and suppliers; the risk that we will
not successfully raise adequate financing for the intended structure; the risk that if our intended
financing structure is not successful that our alternative financing structure will not be
successful; the risk that unexpected costs will be incurred; the outcome of litigation and
regulatory proceedings to which we may be a party; actions of competitors; changes and developments
affecting our industry; quarterly or cyclical variations in financial results; development of new
products and services; interest rates and cost of borrowing; our ability to protect our
intellectual property rights; our ability to maintain and improve cost efficiency of operations,
including savings from restructuring actions; changes in foreign currency exchange rates; changes
in economic conditions, political conditions, trade protection measures, licensing requirements and
tax matters in the foreign countries in which we do business; reliance on third parties for
manufacturing of products and provision of services; and other factors that are set forth in the
Risk Factors section and other sections of our 2009 Annual Report on Form 10-K and i2s 2009
Annual Report on Form 10-K filed with the Securities and Exchange Commission. Neither JDA nor i2
assumes any obligation to update any forward-looking statements as a result of new information or
future events or developments, except as required by law.
This communication is being made in respect of the proposed transaction involving JDA and i2.
In connection with the proposed transaction, JDA has filed with the Securities and Exchange
Commission a Registration Statement on Form S-4 containing a Proxy Statement of i2 and a Prospectus
of JDA, and each of JDA and i2 have filed, and plan to file, with the Securities and Exchange
Commission other documents regarding the proposed transaction. The definitive Proxy
Statement/Prospectus has been mailed to stockholders of i2. INVESTORS AND SECURITY HOLDERS ARE
URGED TO CAREFULLY READ THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Investors and security holders will be able to obtain free copies of the Registration
Statement and the Proxy Statement/Prospectus and other documents filed with the Securities and
Exchange Commission by JDA and i2 through the website maintained by the Securities and Exchange
Commission at www.sec.gov. In addition, investors and security holders may obtain free copies of
the Registration Statement and Proxy Statement/Prospectus and other documents filed with the
Securities and Exchange Commission from JDA by directing a request to JDA Software Group, Inc.,
14400 North 87th Street, Scottsdale, Arizona 85260, Attention: Investor Relations (telephone: (480)
308-3000) or going to JDAs corporate website at www.jda.com, or from i2 by directing a request to
i2 Technologies, Inc., One i2 Place, 11701 Luna Road, Dallas, Texas 75234, Attention: Investor
Relations (telephone (469) 357-1000) or going to i2s corporate website at www.i2.com.
JDA, i2, and their respective directors and executive officers may be deemed to be
participants in the solicitation of proxies in respect of the proposed transaction. Information
regarding JDAs directors and executive officers is set forth in JDAs proxy statement for its 2009
Annual Meeting of Stockholders, which was filed with the Securities and Exchange Commission on
April 7, 2009, and Annual Report on Form 10-K filed with the Securities and Exchange Commission on
March 13, 2009. Information regarding i2s directors and executive officers is set forth in i2s
proxy statement for its 2009 Annual Meeting of Stockholders, which was filed with the Securities
and Exchange Commission on April 28, 2009, and Annual Report on Form 10-K filed with the Securities
and Exchange Commission on March 12, 2009. Additional information regarding the interests of such
potential participants is included in the Proxy Statement/Prospectus and the other relevant
documents filed with the Securities and Exchange Commission.
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Use of Non-GAAP Financial Information
This press release and the related conference call contain non-GAAP financial measures. In
evaluating the Companys performance, management uses certain non-GAAP financial measures to
supplement consolidated financial statements prepared under GAAP. Managements presentation of
non-GAAP financial measures is intended to be supplemental in nature and should not be considered
in isolation or as a substitute for the most directly comparable GAAP measures.
Use and Economic Substance of Non-GAAP Financial Measures Used by JDA
The Company uses non-GAAP measures of performance, including adjusted operating income, EBITDA
(earnings before interest, taxes, depreciation and amortization) and earnings per share, in its
public statements. Management uses, and chooses to disclose, these non-GAAP financial measures
because (i) such measures provide an additional analytical tool to clarify the Companys results
from operations and help the Company to identify underlying trends in its results of operations;
(ii) the Company uses non-GAAP earnings measures, including EBITDA, as a measure of profitability
because such measures help the Company compare its performance on a consistent basis across time
periods; and (iii) these non-GAAP measures are employed by the Companys management in its own
evaluation of performance and are utilized in financial and operational decision making processes,
such as budget planning and forecasting. The Company also internally uses adjusted EBITDA measures
for determining (a) compliance with certain financial covenants in its credit agreement and (b)
executive and employee compensation. Set forth below are additional reasons why specific items are
excluded from the Companys non-GAAP financial measures:
| Amortization charges for acquired technology are excluded because they result from prior acquisitions, rather than ongoing operations, and absent additional acquisitions, are expected to decline over time. | ||
| Amortization charges for other intangibles are excluded because they are non-cash expenses, and while tangible and intangible assets support our business, we do not believe the related amortization costs are directly attributable to the operating performance of our business. | ||
| Restructuring charges are significant non-routine expenses that cannot be predicted and typically relate to a change in our business model or to a change in our estimate of the costs to complete a plan to exit an activity of an acquired company. The exclusion of these charges promotes period-to-period comparisons and transparency. Such charges are primarily related to severance costs and/or the disposition of excess facilities driven by the changes to our business model. | ||
| Stock-based compensation is not an expense that typically requires or will require cash settlement by the Company. | ||
| The direct costs associated with the pending acquisition of i2 and the abandoned acquisition of i2 in 2008 are significant non-routine expenses. Exclusion of these costs promotes period-to-period comparisons and transparency as we do not believe these costs are directly attributable to the operating performance of our business. |
Material Limitations (and Compensation thereof) Associated with the Use of Non-GAAP Financial
Measures
Non-GAAP financial measures have limitations as an analytical tool and should not be
considered in isolation or as a substitute for the Companys GAAP results. In the future, the
Company expects to continue reporting non-GAAP financial measures excluding items described above
and the Company expects to continue to incur expenses similar to the non-GAAP adjustments described
above. Accordingly, exclusion of these and other similar items in our non-GAAP presentation should
not be construed as an inference that these costs are unusual, infrequent or non-recurring.
Some of the limitations in relying on non-GAAP financial measures are:
| Amortization of acquired technology and intangibles, though not directly affecting our current cash position, represent the loss in value as the technology in our industry evolves, is advanced or is replaced over time. The expense associated with this loss in value is not included in the non-GAAP net income presentation and therefore does not reflect the full economic effect of the ongoing cost of maintaining our current technological position in our competitive industry which is addressed through our research and development program. |
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| The Company may engage in acquisition transactions in the future. In addition, we incur other restructuring charges from time to time when necessary to adjust our business model. Restructuring related charges may therefore continue to be incurred and should not be viewed as non-recurring. | ||
| Stock-based compensation is an important component of our incentive compensation arrangements and will be reflected as expenses in our GAAP results for the foreseeable future. | ||
| Other companies, including other companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure. |
We compensate for these limitations by relying primarily on our GAAP results and using
non-GAAP financial measures only supplementally. We also provide reconciliations of each non-GAAP
financial measure to our most directly comparable GAAP measure, and we encourage investors to
review carefully those reconciliations.
Usefulness of Non-GAAP Financial Measures to Investors
The Company believes that the presentation of these non-GAAP financial measures is warranted
for several reasons. First, such non-GAAP financial measures provide investors and management an
additional analytical tool for understanding the Companys financial performance by excluding the
impact of items which may obscure trends in the core operating performance of the business. Second,
since the Company has historically reported non-GAAP results to the investment community, the
Company believes the inclusion of non-GAAP numbers provides consistency and enhances investors
ability to compare the Companys performance across financial reporting periods.
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JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts, unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts, unaudited)
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 75,974 | $ | 32,696 | ||||
Restricted cash |
287,875 | | ||||||
Accounts receivable, net |
68,883 | 79,353 | ||||||
Income tax receivable |
| 316 | ||||||
Deferred tax asset |
19,142 | 22,919 | ||||||
Prepaid expenses and other current assets |
15,667 | 14,223 | ||||||
Total current assets |
467,541 | 149,507 | ||||||
Non-Current Assets: |
||||||||
Property and equipment, net |
40,842 | 43,093 | ||||||
Goodwill |
135,275 | 135,275 | ||||||
Other Intangibles, net: |
||||||||
Customer lists |
99,264 | 121,719 | ||||||
Acquired software technology |
20,240 | 24,160 | ||||||
Trademarks |
157 | 1,335 | ||||||
Deferred tax asset |
44,350 | 44,815 | ||||||
Other non-current assets |
13,997 | 4,872 | ||||||
Total non-current assets |
354,125 | 375,269 | ||||||
Total Assets |
$ | 821,666 | $ | 524,776 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Accounts payable |
$ | 7,192 | $ | 3,273 | ||||
Accrued expenses and other liabilities |
45,523 | 52,090 | ||||||
Income taxes payable |
3,489 | | ||||||
Deferred revenue |
65,665 | 62,005 | ||||||
Total current liabilities |
121,869 | 117,368 | ||||||
Non-Current Liabilities: |
||||||||
Long-term debt |
272,250 | | ||||||
Accrued exit and disposal obligations |
7,341 | 8,820 | ||||||
Liability for uncertain tax positions |
8,770 | 7,093 | ||||||
Total non-current liabilities |
288,361 | 15,913 | ||||||
Total Liabilities |
410,230 | 133,281 | ||||||
Redeemable Preferred Stock |
| 50,000 | ||||||
Stockholders Equity: |
||||||||
Preferred stock, $.01 par value; authorized 2,000,000 shares; none
issued or outstanding |
| | ||||||
Common stock, $.01 par value; authorized, 50,000,000 shares; issued
36,323,246 and 32,458,396 shares, respectively |
363 | 325 | ||||||
Additional paid-in capital |
361,362 | 305,564 | ||||||
Deferred compensation |
(5,297 | ) | (2,915 | ) | ||||
Retained earnings |
74,014 | 56,268 | ||||||
Accumulated other comprehensive income (loss) |
3,267 | (2,017 | ) | |||||
Less treasury stock, at cost, 1,785,715 and 1,307,317 shares, respectively |
(22,273 | ) | (15,730 | ) | ||||
Total stockholders equity |
411,436 | 341,495 | ||||||
Total liabilities and stockholders equity |
$ | 821,666 | $ | 524,776 | ||||
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JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except earnings per share data, unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except earnings per share data, unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
REVENUES: |
||||||||||||||||
Software licenses |
$ | 28,626 | $ | 34,305 | $ | 88,786 | $ | 92,898 | ||||||||
Maintenance services |
46,958 | 44,001 | 179,336 | 182,844 | ||||||||||||
Product revenues |
75,584 | 78,306 | 268,122 | 275,742 | ||||||||||||
Consulting services |
28,653 | 25,171 | 107,618 | 104,072 | ||||||||||||
Reimbursed expenses |
2,886 | 2,738 | 10,060 | 10,518 | ||||||||||||
Service revenues |
31,539 | 27,909 | 117,678 | 114,590 | ||||||||||||
Total revenues |
107,123 | 106,215 | 385,800 | 390,332 | ||||||||||||
COST OF REVENUES: |
||||||||||||||||
Cost of software licenses |
824 | 1,490 | 3,241 | 3,499 | ||||||||||||
Amortization of acquired software technology |
966 | 1,007 | 3,920 | 5,277 | ||||||||||||
Cost of maintenance services |
10,749 | 11,589 | 43,165 | 45,734 | ||||||||||||
Cost of product revenues |
12,539 | 14,086 | 50,326 | 54,510 | ||||||||||||
Cost of consulting services |
23,553 | 20,870 | 85,285 | 81,954 | ||||||||||||
Reimbursed expenses |
2,886 | 2,738 | 10,060 | 10,518 | ||||||||||||
Cost of service revenues |
26,439 | 23,608 | 95,345 | 92,472 | ||||||||||||
Total cost of revenues |
38,978 | 37,694 | 145,671 | 146,982 | ||||||||||||
GROSS PROFIT |
68,145 | 68,521 | 240,129 | 243,350 | ||||||||||||
OPERATING EXPENSES: |
||||||||||||||||
Product development |
13,586 | 13,670 | 51,318 | 53,866 | ||||||||||||
Sales and marketing |
19,691 | 18,730 | 66,001 | 66,468 | ||||||||||||
General and administrative |
12,663 | 12,557 | 47,664 | 44,963 | ||||||||||||
Amortization of intangibles |
5,753 | 6,076 | 23,633 | 24,303 | ||||||||||||
Restructuring charges |
160 | 4,428 | 6,865 | 8,382 | ||||||||||||
Acquisition-related costs |
4,768 | | 4,768 | | ||||||||||||
Costs of abandoned acquisition |
| 25,060 | | 25,060 | ||||||||||||
Total operating expenses |
56,621 | 80,521 | 200,249 | 223,042 | ||||||||||||
OPERATING INCOME (LOSS) |
11,524 | (12,000 | ) | 39,880 | 20,308 | |||||||||||
Interest expense and amortization of loan fees |
(1,741 | ) | (3,673 | ) | (2,712 | ) | (10,349 | ) | ||||||||
Finance costs on abandoned acquisition |
767 | (4,655 | ) | 767 | (5,292 | ) | ||||||||||
Interest income and other, net |
367 | 664 | 1,253 | 2,791 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES |
10,917 | (19,664 | ) | 39,188 | 7,458 | |||||||||||
Income tax (provision) benefit |
(2,420 | ) | 6,117 | (12,849 | ) | (4,334 | ) | |||||||||
NET INCOME (LOSS) |
$ | 8,497 | $ | (13,547 | ) | $ | 26,339 | $ | 3,124 | |||||||
Consideration paid in excess of carrying value on the
repurchase of redeemable preferred stock |
| | (8,593 | ) | | |||||||||||
INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS |
$ | 8,497 | $ | (13,547 | ) | $ | 17,746 | $ | 3,124 | |||||||
EARNINGS (LOSS) APPLICABLE TO COMMON SHAREHOLDERS: |
||||||||||||||||
Basic earnings (loss) per share |
$ | .25 | $ | (.44 | ) | $ | .51 | $ | .09 | |||||||
Diluted earnings (loss) per share |
$ | .24 | $ | (.44 | ) | $ | .50 | $ | .09 | |||||||
SHARES USED TO COMPUTE EARNINGS (LOSS) PER SHARE: |
||||||||||||||||
Basic earnings (loss) per share |
34,519 | 31,080 | 34,936 | 34,339 | ||||||||||||
Diluted earnings (loss) per share |
35,046 | 31,080 | 35,258 | 35,185 | ||||||||||||
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JDA SOFTWARE GROUP, INC.
NON-GAAP MEASURES OF PERFORMANCE
(in thousands, except share data, unaudited)
NON-GAAP MEASURES OF PERFORMANCE
(in thousands, except share data, unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Reconciliation of GAAP Net Income (Loss) to EBITDA and Adjusted EBITDA |
||||||||||||||||
Net Income (Loss) (GAAP BASIS) |
$ | 8,497 | $ | (13,547 | ) | $ | 26,339 | $ | 3,124 | |||||||
Income tax provision (benefit) |
2,420 | (6,117 | ) | 12,849 | 4,334 | |||||||||||
Interest expense and amortization of loan fees |
1,741 | 3,673 | 2,712 | 10,349 | ||||||||||||
Amortization of acquired software technology |
966 | 1,007 | 3,920 | 5,277 | ||||||||||||
Amortization of intangibles |
5,753 | 6,076 | 23,633 | 24,303 | ||||||||||||
Depreciation |
2,477 | 2,288 | 9,686 | 9,700 | ||||||||||||
EBITDA (earnings before interest, tax, depreciation and amortization) |
21,854 | (6,620 | ) | 79,139 | 57,087 | |||||||||||
Restructuring charges |
160 | 4,428 | 6,865 | 8,382 | ||||||||||||
Stock-based compensation |
1,682 | 1,189 | 8,094 | 4,324 | ||||||||||||
Acquisition-related costs |
4,768 | | 4,768 | | ||||||||||||
Costs of abandoned acquisition |
| 25,060 | | 25,060 | ||||||||||||
Finance costs on abandoned acquisition |
(767 | ) | 4,655 | (767 | ) | 5,292 | ||||||||||
Interest income and other non-operating income (expense), net |
(367 | ) | (664 | ) | (1,253 | ) | (2,791 | ) | ||||||||
Adjusted EBITDA |
$ | 27,330 | $ | 28,048 | $ | 96,846 | $ | 97,354 | ||||||||
EBITDA, as a percentage of revenue |
20 | % | (6 | %) | 21 | % | 15 | % | ||||||||
Adjusted EBITDA, as a percentage of revenue |
26 | % | 26 | % | 25 | % | 25 | % | ||||||||
NON-GAAP EARNINGS PER SHARE |
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Income (loss) before income taxes (GAAP BASIS) |
$ | 10,917 | $ | (19,664 | ) | $ | 39,188 | $ | 7,458 | |||||||
Amortization of acquired software technology |
966 | 1,007 | 3,920 | 5,277 | ||||||||||||
Amortization of intangibles |
5,753 | 6,076 | 23,633 | 24,303 | ||||||||||||
Restructuring charges |
160 | 4,428 | 6,865 | 8,382 | ||||||||||||
Stock-based compensation |
1,682 | 1,189 | 8,094 | 4,324 | ||||||||||||
Acquisition-related costs |
4,768 | | 4,768 | | ||||||||||||
Costs of abandoned acquisition |
| 25,060 | | 25,060 | ||||||||||||
Finance costs on abandoned acquisition |
(767 | ) | 4,655 | (767 | ) | 5,292 | ||||||||||
Adjusted income before income taxes |
23,479 | 22,751 | 85,701 | 80,096 | ||||||||||||
Adjusted income tax expense |
8,452 | 7,622 | 30,713 | 28,266 | ||||||||||||
Adjusted net income |
$ | 15,027 | $ | 15,129 | $ | 54,988 | $ | 51,830 | ||||||||
Adjusted non-GAAP diluted earnings per share |
$ | 0.43 | $ | 0.43 | $ | 1.56 | $ | 1.47 | ||||||||
Shares used to compute non-GAAP diluted earnings per share |
35,046 | 34,953 | 35,258 | 35,185 | ||||||||||||
-more-
JDA Software Q4 2009 Earnings
Add 10
Add 10
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
CASH FLOW INFORMATION |
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Net cash provided by (used in) operating activities (GAAP BASIS) |
$ | 15,953 | $ | (23,580 | ) | $ | 96,481 | $ | 47,092 | |||||||
Add back costs of the abandoned acquisition of i2 Technologies |
| 25,060 | 25,060 | |||||||||||||
Add back financing costs on the abandoned acquisition of i2 Technologies |
| 4,655 | 5,292 | |||||||||||||
Less accrued and unpaid costs of the abandoned acquisition of i2 Technologies |
| (3,573 | ) | | (3,573 | ) | ||||||||||
| 26,142 | | 26,779 | |||||||||||||
Adjusted non-GAAP net cash provided by operating activities |
$ | 15,953 | $ | 2,562 | $ | 96,481 | $ | 73,871 | ||||||||
Net cash used in investing activities: |
||||||||||||||||
Change in restricted cash |
$ | (287,875 | ) | $ | | $ | (287,875 | ) | $ | | ||||||
Payment of direct costs related to acquisitions |
(649 | ) | 1,192 | (5,110 | ) | (4,242 | ) | |||||||||
Purchase of other property and equipment |
(1,595 | ) | (2,529 | ) | (7,136 | ) | (8,594 | ) | ||||||||
Proceeds from disposal of property and equipment |
22 | 17 | 84 | 132 | ||||||||||||
$ | (290,097 | ) | $ | (1,320 | ) | $ | (300,037 | ) | $ | (12,704 | ) | |||||
Net cash provided by financing activities: |
||||||||||||||||
Issuance of common stock under equity plans |
$ | 325 | $ | 1,792 | $ | 14,849 | $ | 7,806 | ||||||||
Proceeds from issuance of long-term debt, net of discount |
272,217 | | 272,217 | | ||||||||||||
Debt issuance costs |
(6,487 | ) | | (6,487 | ) | | ||||||||||
Principal payments on term-loan agreement |
| (80,477 | ) | | (99,563 | ) | ||||||||||
Redemption of Series B Convertible Preferred stock |
| | (28,068 | ) | | |||||||||||
Purchase of treasury stock and other, net |
(277 | ) | (184 | ) | (6,543 | ) | (3,724 | ) | ||||||||
$ | 265,778 | $ | (78,869 | ) | $ | 245,968 | $ | (95,481 | ) | |||||||
JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, Ariz. 85260
14400 N. 87th Street
Scottsdale, Ariz. 85260