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8-K - FORM 8-K - MANHATTAN ASSOCIATES INCd475629d8k.htm

Exhibit 99.1

 

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Contact:    Dennis Story    Will Haraway
   Chief Financial Officer    Director, North America Public Relations
   Manhattan Associates, Inc.    Manhattan Associates, Inc.
   678-597-7115    678-597-7466
   dstory@manh.com    wharaway@manh.com

Manhattan Associates Reports Record Fourth Quarter and Full Year 2012 Performance

ATLANTA – January 29, 2013 – Leading supply chain optimization provider Manhattan Associates, Inc. (NASDAQ: MANH) today reported record fourth quarter 2012 non-GAAP adjusted diluted earnings per share of $0.71 compared to $0.60 in the fourth quarter of 2011, on license revenue of $14.4 million and record fourth quarter total revenue of $95.4 million. GAAP diluted earnings per share for the fourth quarter was a record $0.63 compared to $0.50 in the prior year fourth quarter.

Manhattan Associates CEO Eddie Capel commented, “We’re very pleased with both our fourth quarter and full year results. They reflect solid support in the market for our product and solution strategy. These results allow us to continue to make significant investments in supply chain innovation across our technology and solution suites in order to provide differentiated capabilities to our customers.”

FOURTH QUARTER 2012 FINANCIAL SUMMARY:

 

   

Adjusted diluted earnings per share, a non-GAAP measure, was $0.71 in the fourth quarter of 2012, compared to $0.60 in the fourth quarter of 2011.

 

   

GAAP diluted earnings per share was $0.63 in the fourth quarter of 2012, compared to $0.50 in the fourth quarter of 2011.

 

   

Consolidated total revenue was $95.4 million in the fourth quarter of 2012, compared to $83.5 million in the fourth quarter of 2011. License revenue was $14.4 million in the fourth quarter of 2012, compared to $16.6 million in the fourth quarter of 2011.

 

   

Adjusted operating income, a non-GAAP measure, was $21.7 million in the fourth quarter of 2012, compared to $19.3 million in the fourth quarter of 2011.

 

   

GAAP operating income was $19.1 million in the fourth quarter of 2012, compared to $16.2 million in the fourth quarter of 2011.

 

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Cash flow from operations was $23.9 million in the fourth quarter of 2012, compared to $14.8 million in the fourth quarter of 2011. Days Sales Outstanding was 60 days at December 31, 2012, compared to 70 days at September 30, 2012.

 

   

Cash and investments on-hand were $103.0 million at December 31, 2012, compared to $106.8 million at September 30, 2012.

 

   

During the three months ended December 31, 2012, the Company repurchased 526,623 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total investment of $31.2 million. In January 2013, the Board of Directors approved raising the Company’s remaining share repurchase authority to an aggregate of $50.0 million of the Company’s outstanding common stock.

FULL YEAR 2012 FINANCIAL SUMMARY:

 

   

Adjusted diluted earnings per share, a non-GAAP measure, was a record $2.82 for the twelve months ended December 31, 2012, compared to $2.32 for the twelve months ended December 31, 2011.

 

   

GAAP diluted earnings per share for the twelve months ended December 31, 2012 was a record $2.56, compared to $2.09 for the twelve months ended December 31, 2011. Results for the twelve months ended December 31, 2011 included a $0.12 per share benefit for the recovery of a previously impaired auction rate security investment.

 

   

Consolidated revenue for the twelve months ended December 31, 2012 was a record $376.2 million, compared to $329.3 million for the twelve months ended December 31, 2011. License revenue was $61.5 million for the twelve months ended December 31, 2012, compared to $54.2 million for the twelve months ended December 31, 2011.

 

   

Adjusted operating income, a non-GAAP measure, was $88.4 million for the twelve months ended December 31, 2012, compared to $70.4 million for the twelve months ended December 31, 2011.

 

   

GAAP operating income was $80.1 million for the twelve months ended December 31, 2012, compared to $61.4 million for the twelve months ended December 31, 2011. Results for the twelve months ended December 31, 2011 included a $2.5 million recovery of a previously impaired auction rate security investment.

 

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During the twelve months ended December 31, 2012, the Company repurchased 1,944,828 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total investment of $99.7 million.

SALES ACHIEVEMENTS:

 

   

Three contracts of $1.0 million or more in recognized license revenue during the fourth quarter of 2012, resulting in a total of 12 contracts of $1.0 million or more in recognized license revenue for the full year 2012.

 

   

Completing software license wins during the fourth quarter with new customers such as: Bison Stores, Empire Express, Essilor International, Hirschbach Motor Lines, Legacy Supply Chain Services, NTT Data China Outsourcing, Optimist Logistic, Pearson Educacion de Mexico, Rhee Brothers, Southern States Cooperative and Zongbao District (Beijing) International Pharmaceutical Distribution Center.

 

   

Expanding relationships during the fourth quarter with existing customers such as: Acco Brands Benelux, Alliance Healthcare, Assuramed, ATB Market, Belk, Batory Foods, Carolina Logistics Services, Catering Engros, Chico’s Retail Services, Copernica, CRC Industries, Dean Foods, Elektra del Milenio, Essilor of America, Exel, Foot Locker Corporate Services, Groupe Dynamite, HEB Grocery Company, Keystone Distribution, Leroy Merlin France, Meyer Group, Northern Tool and Equipment, Olympus Corporation of the Americas, PepsiCo, Performance Team Freight Systems, Primark Stores, SamsonOpt, Shoppers Drug Mart, Southern Wine & Spirits of America, Vera Bradley Designs and VF Services.

2013 GUIDANCE

Manhattan Associates provides the following revenue and diluted earnings per share guidance for the full year 2013:

 

     Guidance Range—2013 Full Year  
($‘s in millions, except EPS)    $ Range      % Growth Range  

Total revenue

   $ 410       $ 415         9     10

Diluted earnings per share (EPS):

          

Adjusted EPS(1)

   $ 3.15       $ 3.21         12     14

GAAP EPS

   $ 2.85       $ 2.91         11     14

 

(1)

Adjusted EPS is a Non-GAAP measure which excludes the impact of equity-based compensation

 

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Manhattan Associates currently intends to publish, in each quarterly earnings release, certain expectations with respect to future financial performance. Those statements, including the guidance provided above, are forward-looking. Actual results may differ materially, especially in the current uncertain economic environment. Those statements, including the guidance provided above, do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release.

Manhattan Associates will make its earnings release and published expectations available on its website (www.manh.com). Beginning March 15, 2013, Manhattan Associates will observe a “Quiet Period” during which Manhattan Associates and its representatives will not comment concerning previously published financial expectations. Prior to the start of the Quiet Period, the public can continue to rely on the expectations published in this 2013 Guidance section as being Manhattan Associates’ current expectation on matters covered, unless Manhattan Associates publishes a notice stating otherwise. During the Quiet Period, previously published expectations should be considered historical only, speaking only as of or prior to the Quiet Period, and Manhattan Associates disclaims any obligation to update any previously published financial expectations during the Quiet Period. The Quiet Period will extend until publication of Manhattan Associates’ next quarterly earnings release, currently scheduled for the third full week of April 2013.

CONFERENCE CALL

The Company’s conference call regarding its fourth quarter and full year financial results will be held at 4:30 p.m. Eastern Time on Tuesday January 29, 2013. Investors are invited to listen to a live webcast of the conference call through the investor relations section of Manhattan Associates’ website at www.manh.com. To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay can be accessed shortly after the call by dialing +1.888.471.9891 in the U.S. and Canada, or +1.973.200.3379 outside the U.S., and entering the conference identification number 32249193 or via the web at www.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates’ first quarter 2013 earnings release.

 

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GAAP VERSUS NON-GAAP PRESENTATION

The Company provides adjusted operating income, adjusted net income and adjusted earnings per share in this press release as additional information regarding the Company’s operating results. These measures are not in accordance with – or an alternative to – GAAP, and may be different from non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share measures used by other companies. The Company believes that the presentation of these non-GAAP financial measures facilitates investors’ understanding of its historical operating trends, because it provides important supplemental measurement information in evaluating the operating results of its business, as distinct from results that include items that are not indicative of ongoing operating results. The Company consequently believes that the presentation of these non-GAAP financial measures provides investors with useful insight into its profitability. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the quarter and year ended December 31, 2012.

The non-GAAP adjusted operating income, adjusted net income and adjusted earnings per share exclude the impact of acquisition-related costs and the amortization thereof; equity-based compensation; and asset impairment charges and related recovery related to an investment security – all net of income tax effects and unusual tax adjustments. Reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments are included in the supplemental information attached to this release.

ABOUT MANHATTAN ASSOCIATES, INC.

Manhattan Associates continues to deliver on its 23-year heritage of providing global supply chain excellence to more than 1,200 customers worldwide that consider supply chain optimization core to their strategic market leadership. The Company’s supply chain innovations include: Manhattan SCOPE®, a portfolio of software solutions and technology that leverages Manhattan Associates’ Supply Chain Process Platform to help organizations optimize their supply chains from planning through execution; Manhattan SCALE™, a portfolio of distribution management and transportation management solutions built on Microsoft .NET technology; and Manhattan Carrier™, a suite of supply chain solutions specifically addressing the needs of the motor carrier industry. For more information, please visit www.manh.com.

This press release contains “forward-looking statements” relating to Manhattan Associates, Inc. Forward-looking statements in this press release include the information set forth under “2013 Guidance.” Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: uncertainty about the global economy; delays in product development; competitive pressures; software errors; and the additional risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.

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MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

 

     Three Months Ended December 31,      Twelve Months Ended December 31,  
     2012      2011      2012      2011  
     (unaudited)                

Revenue:

           

Software license

   $ 14,398       $ 16,567       $ 61,494       $ 54,241   

Services

     72,294         60,612         283,872         244,058   

Hardware and other

     8,667         6,360         30,882         30,954   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

     95,359         83,539         376,248         329,253   

Costs and expenses:

           

Cost of license

     2,487         2,547         7,838         6,806   

Cost of services

     34,040         27,036         128,686         107,510   

Cost of hardware and other

     6,797         5,333         25,213         24,785   

Research and development

     10,951         10,436         44,704         42,372   

Sales and marketing

     10,805         10,170         45,622         43,944   

General and administrative

     9,668         10,452         38,474         37,708   

Depreciation and amortization

     1,497         1,362         5,638         7,284   

Recovery of previously impaired investment

     —           —           —           (2,519
  

 

 

    

 

 

    

 

 

    

 

 

 

Total costs and expenses

     76,245         67,336         296,175         267,890   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income

     19,114         16,203         80,073         61,363   

Other income, net

     534         650         965         1,864   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     19,648         16,853         81,038         63,227   

Income tax provision

     7,178         6,328         29,185         18,320   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 12,470       $ 10,525       $ 51,853       $ 44,907   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share

   $ 0.64       $ 0.53       $ 2.64       $ 2.20   

Diluted earnings per share

   $ 0.63       $ 0.50       $ 2.56       $ 2.09   

Weighted average number of shares:

           

Basic

     19,409         19,941         19,660         20,455   

Diluted

     19,913         20,923         20,271         21,492   


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Reconciliation of Selected GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2012      2011     2012      2011  

GAAP Operating income

   $ 19,114       $ 16,203      $ 80,073       $ 61,363   

Equity-based compensation (a)

     2,543         3,055        8,338         10,372   

Purchase amortization (b)

     1         2        6         1,172   

Recovery of previously impaired investment (c)

     —           —          —           (2,519
  

 

 

    

 

 

   

 

 

    

 

 

 

Adjusted operating income (Non-GAAP)

   $ 21,658       $ 19,260      $ 88,417       $ 70,388   
  

 

 

    

 

 

   

 

 

    

 

 

 

GAAP Income tax provision

   $ 7,178       $ 6,328      $ 29,185       $ 18,320   

Equity-based compensation (a)

     942         1,075        3,028         3,526   

Purchase amortization (b)

     —           6        2         398   

Unusual tax adjustments (d)

     —           11        —           238   
  

 

 

    

 

 

   

 

 

    

 

 

 

Adjusted income tax provision (Non-GAAP)

   $ 8,120       $ 7,420      $ 32,215       $ 22,482   
  

 

 

    

 

 

   

 

 

    

 

 

 

GAAP Net income

   $ 12,470       $ 10,525      $ 51,853       $ 44,907   

Equity-based compensation (a)

     1,601         1,980        5,310         6,846   

Purchase amortization (b)

     1         (4     4         774   

Recovery of previously impaired investment (c)

     —           —          —           (2,519

Unusual tax adjustments (d)

     —           (11     —           (238
  

 

 

    

 

 

   

 

 

    

 

 

 

Adjusted net income (Non-GAAP)

   $ 14,072       $ 12,490      $ 57,167       $ 49,770   
  

 

 

    

 

 

   

 

 

    

 

 

 

GAAP Diluted EPS

   $ 0.63       $ 0.50      $ 2.56       $ 2.09   

Equity-based compensation (a)

     0.08         0.09        0.26         0.32   

Purchase amortization (b)

     —           —          —           0.04   

Recovery of previously impaired investment (c)

     —           —          —           (0.12

Unusual tax adjustments (d)

     —           —          —           (0.01
  

 

 

    

 

 

   

 

 

    

 

 

 

Adjusted diluted EPS (Non-GAAP)

   $ 0.71       $ 0.60      $ 2.82       $ 2.32   
  

 

 

    

 

 

   

 

 

    

 

 

 

Fully diluted shares

     19,913         20,923        20,271         21,492   

 

(a) To be consistent with other companies in the software industry, we report adjusted results excluding all equity-based compensation. The equity-based compensation is included in the following GAAP operating expense lines for the three and twelve months ended December 31, 2012 and 2011:

 

     Three Months Ended December 31,      Twelve Months Ended December 31,  
     2012      2011      2012      2011  

Cost of services

   $ 334       $ 290       $ 824       $ 1,367   

Research and development

     424         410         1,558         1,583   

Sales and marketing

     553         812         2,220         2,545   

General and administrative

     1,232         1,543         3,736         4,877   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total equity-based compensation

   $ 2,543       $ 3,055       $ 8,338       $ 10,372   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(b) Adjustments represent purchased intangibles amortization from prior acquisitions. Such amortization is commonly excluded from GAAP net income by companies in our industry and we therefore exclude these amortization costs to provide more relevant and meaningful comparisons of our operating results to that of our competitors.
(c) During the quarter ended September 30, 2008, we recorded an impairment charge of $3.5 million on an investment in an auction rate security. We reduced the carrying value to zero due to credit downgrades of the underlying issuer and the bond insurer as well as increasing publicly reported exposure to bankruptcy risk by the issuer. However, during the quarter ended September 30, 2011, we were able to sell the auction rate security and recovered over 70%, or $2.5 million, of our original investment. We previously excluded the asset impairment charge recorded in 2008 to write down the value of the auction rate security because we typically invest our treasury funds in cash, cash equivalents or other liquid investments, not illiquid, risky securities. We believed the write-down in value of the auction rate security was due to unusual changes in the characteristics of the auction rate security since our initial investment in it, including failed auctions and default risk for a municipal obligor. Consistent with our prior exclusion of the charge, we have excluded the reversal of the charge from adjusted non-GAAP results because it is not indicative of ongoing operating performance.
(d) For the three and twelve months ended December 31, 2011, the adjustments represent tax benefits from disqualifying dispositions of incentive stock options that were previously expensed. As discussed above, we excluded equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry. Therefore, we also excluded the related tax benefit generated upon their disposition.


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except share and per share data)

 

     December 31,  
     2012     2011  
ASSETS   

Current Assets:

    

Cash and cash equivalents

   $ 96,737      $ 92,180   

Short term investments

     6,310        6,079   

Accounts receivable, net of allowance of $6,235 and $4,816 in 2012 and 2011, respectively

     62,102        56,264   

Deferred income taxes

     7,787        7,599   

Income taxes receivable

     —          4,859   

Prepaid expenses and other current assets

     8,571        7,533   
  

 

 

   

 

 

 

Total current assets

     181,507        174,514   

Property and equipment, net

     15,650        13,321   

Long-term investments

     —          855   

Goodwill

     62,265        62,261   

Deferred income taxes

     732        5,696   

Other assets

     1,659        2,953   
  

 

 

   

 

 

 

Total assets

   $ 261,813      $ 259,600   
  

 

 

   

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY   

Current liabilities:

    

Accounts payable

   $ 10,229      $ 8,090   

Accrued compensation and benefits

     16,720        16,503   

Accrued and other liabilities

     12,233        13,648   

Deferred revenue

     47,935        49,882   

Income taxes payable

     4,024        —     
  

 

 

   

 

 

 

Total current liabilities

     91,141        88,123   

Other non-current liabilities

     9,163        9,397   

Shareholders’ equity:

    

Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2012 or 2011

     —          —     

Common stock, $.01 par value; 100,000,000 shares authorized; 19,620,967 and 20,415,946 shares issued and outstanding at December 31, 2012 and 2011, respectively

     196        204   

Additional paid-in capital

     —          —     

Retained earnings

     166,016        166,989   

Accumulated other comprehensive loss

     (4,703     (5,113
  

 

 

   

 

 

 

Total shareholders’ equity

     161,509        162,080   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 261,813      $ 259,600   
  

 

 

   

 

 

 


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(in thousands)

 

     Year Ended December 31,  
     2012     2011  

Operating activities:

    

Net income

   $ 51,853      $ 44,907   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization

     5,638        7,284   

Recovery of previously impaired investment

     —          (2,519

Equity-based compensation

     8,338        10,372   

(Gain) loss on disposal of equipment

     (46     25   

Tax benefits of stock awards exercised/vested

     9,901        7,481   

Excess tax benefits from equity-based compensation

     (7,531     (2,474

Deferred income taxes

     5,388        2,409   

Unrealized foreign currency loss (gain)

     427        (189

Changes in operating assets and liabilities:

    

Accounts receivable, net

     (5,446     (8,994

Other assets

     281        (1,332

Accounts payable, accrued and other liabilities

     (162     (3,537

Income taxes

     8,831        (2,514

Deferred revenue

     (2,201     4,905   
  

 

 

   

 

 

 

Net cash provided by operating activities

     75,271        55,824   
  

 

 

   

 

 

 

Investing activities:

    

Purchase of property and equipment

     (7,873     (5,074

Net maturities of investments

     864        465   
  

 

 

   

 

 

 

Net cash used in investing activities

     (7,009     (4,609
  

 

 

   

 

 

 

Financing activities:

    

Purchase of common stock

     (103,155     (133,144

Proceeds from issuance of common stock from options exercised

     32,082        52,721   

Excess tax benefits from equity-based compensation

     7,531        2,474   
  

 

 

   

 

 

 

Net cash used in financing activities

     (63,542     (77,949
  

 

 

   

 

 

 

Foreign currency impact on cash

     (163     (1,830
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     4,557        (28,564

Cash and cash equivalents at beginning of period

     92,180        120,744   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 96,737      $ 92,180   
  

 

 

   

 

 

 


MANHATTAN ASSOCIATES, INC.

SUPPLEMENTAL INFORMATION

 

1. GAAP and Adjusted earnings (loss) per share by quarter are as follows:

 

    2011     2012  
    1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     YTD  

GAAP Diluted EPS

  $ 0.32      $ 0.57      $ 0.70      $ 0.50      $ 2.09      $ 0.55      $ 0.70      $ 0.69      $ 0.63      $ 2.56   

Adjustments to GAAP:

                   

Equity-based compensation

    0.07        0.07        0.08        0.09        0.32        0.05        0.06        0.07        0.08        0.26   

Purchase amortization

    0.01        0.01        0.01        —          0.04        —          —          —          —          —     

Recovery of previously impaired investment

    —          —          (0.12     —          (0.12     —          —          —          —          —     

Unusual tax adjustments

    —          —          (0.01     —          (0.01     —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Diluted EPS

  $ 0.41      $ 0.65      $ 0.67      $ 0.60      $ 2.32      $ 0.60      $ 0.76      $ 0.75      $ 0.71      $ 2.82   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

2. Revenues and operating income (loss) by reportable segment are as follows (in thousands):

 

    2011     2012  
    1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     YTD  

Revenue:

                   

Americas

  $ 60,185      $ 72,634      $ 70,663      $ 69,377      $ 272,859      $ 73,195      $ 77,094      $ 79,657      $ 77,646      $ 307,592   

EMEA

    8,336        11,075        10,041        8,843        38,295        12,407        12,334        10,589        11,808        47,138   

APAC

    3,189        4,693        4,898        5,319        18,099        5,879        4,139        5,595        5,905        21,518   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 71,710      $ 88,402      $ 85,602      $ 83,539      $ 329,253      $ 91,481      $ 93,567      $ 95,841      $ 95,359      $ 376,248   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Operating Income (Loss):

                   

Americas

  $ 7,087      $ 15,749      $ 17,183      $ 13,531      $ 53,550      $ 13,685      $ 18,130      $ 17,718      $ 15,984      $ 65,517   

EMEA

    909        1,963        1,334        1,033        5,239        2,580        2,944        2,707        1,494        9,725   

APAC

    (443     501        877        1,639        2,574        1,675        268        1,252        1,636        4,831   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 7,553      $ 18,213      $ 19,394      $ 16,203      $ 61,363      $ 17,940      $ 21,342      $ 21,677      $ 19,114      $ 80,073   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjustments (pre-tax):

                   

Americas:

                   

Equity-based compensation

  $ 2,409      $ 2,405      $ 2,503      $ 3,055      $ 10,372      $ 1,660      $ 1,977      $ 2,158      $ 2,543      $ 8,338   

Purchase amortization

    439        438        293        2        1,172        2        1        2        1        6   

Recovery of previously impaired investment

    —          —          (2,519     —          (2,519     —          —            —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 2,848      $ 2,843      $ 277      $ 3,057      $ 9,025      $ 1,662      $ 1,978      $ 2,160      $ 2,544      $ 8,344   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted non-GAAP Operating Income (Loss):

                   

Americas

  $ 9,935      $ 18,592      $ 17,460      $ 16,588      $ 62,575      $ 15,347      $ 20,108      $ 19,878      $ 18,528      $ 73,861   

EMEA

    909        1,963        1,334        1,033        5,239        2,580        2,944        2,707        1,494        9,725   

APAC

    (443     501        877        1,639        2,574        1,675        268        1,252        1,636        4,831   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 10,401      $ 21,056      $ 19,671      $ 19,260      $ 70,388      $ 19,602      $ 23,320      $ 23,837      $ 21,658      $ 88,417   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

3. Our services revenue consists of fees generated from professional services and customer support and software enhancements related to our software products as follows (in thousands):

 

    2011     2012  
    1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     YTD  

Professional services

  $ 35,184      $ 42,150      $ 41,403      $ 38,057      $ 156,794      $ 46,621      $ 45,497      $ 47,082      $ 46,042      $ 185,242   

Customer support and software enhancements

    20,894        21,624        22,191        22,555        87,264        23,749        23,825        24,804        26,252        98,630   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total services revenue

  $ 56,078      $ 63,774      $ 63,594      $ 60,612      $ 244,058      $ 70,370      $ 69,322      $ 71,886      $ 72,294      $ 283,872   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

4. Hardware and other revenue includes the following items (in thousands):

 

    2011     2012  
    1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     YTD  

Hardware revenue

  $ 5,504      $ 5,540      $ 5,597      $ 3,895      $ 20,536      $ 3,054      $ 5,740      $ 4,234      $ 5,242      $ 18,270   

Billed travel

    2,366        2,741        2,846        2,465        10,418        2,470        3,160        3,557        3,425        12,612   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total hardware and other revenue

  $ 7,870      $ 8,281      $ 8,443      $ 6,360      $ 30,954      $ 5,524      $ 8,900      $ 7,791      $ 8,667      $ 30,882   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

5. Impact of Currency Fluctuation

The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):

 

    2011     2012  
    1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     YTD  

Revenue

  $ 282      $ 1,743      $ 1,140      $ 110      $ 3,275      $ (136   $ (1,251   $ (958   $ (128   $ (2,473

Costs and expenses

    386        1,513        1,038        (668     2,269        (848     (2,067     (1,845     (422     (5,182
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

    (104     230        102        778        1,006        712        816        887        294        2,709   

Foreign currency (losses) gains in other income

    (207     77        575        367        812        (370     571        (564     231        (132
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ (311   $ 307      $ 677      $ 1,145      $ 1,818      $ 342      $ 1,387      $ 323      $ 525      $ 2,577   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Manhattan Associates has a large research and development center in Bangalore, India. The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands):

 

    2011     2012  
    1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     YTD  

Operating income

  $ (53   $ (82   $ (76   $ 727      $ 516      $ 704      $ 1,193      $ 1,161      $ 348      $ 3,406   

Foreign currency (losses) gains in other income

    (112     53        653        638        1,232        (144     724        (500     282        362   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total impact of changes in the Indian Rupee

  $ (165   $ (29   $ 577      $ 1,365      $ 1,748      $ 560      $ 1,917      $ 661      $ 630      $ 3,768   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


MANHATTAN ASSOCIATES, INC.

SUPPLEMENTAL INFORMATION

 

6. Other income (expense) includes the following components (in thousands):

 

    2011     2012  
    1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     YTD  

Interest income

  $ 225      $ 269      $ 298      $ 280      $ 1,072      $ 264      $ 228      $ 278      $ 292      $ 1,062   

Foreign currency (losses) gains

    (207     77        575        367        812        (370     571        (564     231        (132

Other non-operating (expense) income

    —          (12     (11     3        (20     (18     3        39        11        35   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense)

  $ 18      $ 334      $ 862      $ 650      $ 1,864      $ (124   $ 802      $ (247   $ 534      $ 965   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

7. Total equity-based compensation is as follows (in thousands except per share amounts):

 

    2011     2012  
    1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     YTD  

Stock options

  $ 512      $ 487      $ 486      $ 518      $ 2,003      $ 120      $ 140      $ 138      $ 223      $ 621   

Restricted stock

    1,897        1,918        2,017        2,537        8,369        1,540        1,837        2,020        2,320        7,717   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity-based compensation

    2,409        2,405        2,503        3,055        10,372        1,660        1,977        2,158        2,543        8,338   

Income tax provision

    807        806        838        1,075        3,526        598        711        777        942        3,028   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 1,602      $ 1,599      $ 1,665      $ 1,980      $ 6,846      $ 1,062      $ 1,266      $ 1,381      $ 1,601      $ 5,310   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

  $ 0.07      $ 0.07      $ 0.08      $ 0.09      $ 0.32      $ 0.05      $ 0.06      $ 0.07      $ 0.08      $ 0.26   

Diluted earnings per share—stock options

  $ 0.02      $ 0.01      $ 0.02      $ 0.02      $ 0.06      $ 0.00      $ —        $ —        $ 0.01      $ 0.02   

Diluted earnings per share—restricted stock

  $ 0.06      $ 0.06      $ 0.06      $ 0.08      $ 0.26      $ 0.05      $ 0.06      $ 0.07      $ 0.07      $ 0.24   

 

8. Capital expenditures are as follows (in thousands):

 

    2011     2012  
    1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     YTD  

Capital expenditures

  $ 1,338      $ 658      $ 1,676      $ 1,402      $ 5,074      $ 1,796      $ 1,454      $ 1,086      $ 3,537      $ 7,873   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

9. Stock Repurchase Activity (in thousands):

 

    2011     2012  
    1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     YTD  

Shares purchased under publicly-announced buy-back program

    826        1,079        845        857        3,607        653        346        419        527        1,945   

Shares withheld for taxes due upon vesting of restricted stock

    65        4        4        5        78        66        3        5        4        78   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total shares purchased

    891        1,083        849        862        3,685        719        349        424        531        2,023   

Total cash paid for shares purchased under publicly-announced buy-back program

  $ 25,621      $ 38,286      $ 29,414      $ 37,390      $ 130,711      $ 30,647      $ 16,616      $ 21,202      $ 31,223      $ 99,688   

Total cash paid for shares withheld for taxes due upon vesting of restricted stock

    1,960        129        159        185        2,433        2,840        132        230        265        3,467   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total cash paid for shares repurchased

  $ 27,581      $ 38,415      $ 29,573      $ 37,575      $ 133,144      $ 33,487      $ 16,748      $ 21,432      $ 31,488      $ 103,155