Leading Supply Chain Commerce Solutions provider Manhattan
Associates, Inc. (NASDAQ:MANH) today reported GAAP diluted earnings
per share for the first quarter ended March 31, 2017 of $0.40
compared to $0.38 in Q1 2016, on record license revenue of $22.8
million and total revenue of $143.5 million. Non-GAAP adjusted
diluted earnings per share was $0.42 in both Q1 2017 and Q1 2016.
“Our first quarter results reflect the balance between strong
license fee performance and retail macro challenges. Q1 represents
another record license quarter with solid pipeline activity in all
three regions against a strong comparable. Our Professional
Services business continues to experience headwinds muting solid
financial performance across all other key metrics,” said Eddie
Capel, president and chief executive officer of Manhattan
Associates.
“We expect that retail market headwinds will persist throughout
2017 as many retailers address strategic challenges with enterprise
transformation. While those transformations bring opportunities for
Manhattan, they can also slow decision making. Given the
outlook, we have lowered our revenue expectations for the year
while maintaining our earnings per share guidance. More
importantly, we continue to be very bullish on the market
opportunity ahead of us and are investing significant energy and
capital into innovation and advancing the world’s leading suite of
Supply Chain Commerce solutions to extend our market leadership in
2017 and beyond.”
FIRST QUARTER 2017 FINANCIAL SUMMARY:
- GAAP diluted earnings per share was $0.40 in Q1 2017, compared
to $0.38 in Q1 2016.
- Adjusted diluted earnings per share, a non-GAAP measure, was
$0.42 in both Q1 2017 and Q1 2016.
- Consolidated total revenue was $143.5 million in Q1 2017,
compared to $149.9 million in Q1 2016. License revenue was $22.8
million in Q1 2017, compared to $20.6 million in Q1 2016.
- GAAP operating income was $41.7 million in Q1 2017, compared to
$43.1 million in Q1 2016.
- Adjusted operating income, a non-GAAP measure, was $46.3
million in Q1 2017, compared to $47.9 million in Q1 2016.
- Cash flow from operations was $61.3 million in Q1 2017,
compared to $40.4 million in Q1 2016. Days Sales Outstanding was 53
days at March 31, 2017, compared to 63 days at December 31,
2016.
- Cash and investments totaled $101.3 million at March 31, 2017,
compared to $95.6 million at December 31, 2016.
- During the three months ended March 31, 2017, the Company
repurchased 1,003,868 shares of Manhattan Associates common stock
under the share repurchase program authorized by the Board of
Directors, for a total investment of $50.0 million. In April 2017,
the Board of Directors authorized the Company to repurchase up to
an aggregate of $50 million of the Company’s common stock.
SALES ACHIEVEMENTS:
- Recognized license revenue of $1.0 million or more on four new
contracts during Q1 2017.
- Completed software license wins with new customers such as:
Aldi South, David Jones, Esselunga, Everything But Water, Fenix
Outdoor International, GER Innflutningur, PFD Food
Services, Restaurant Brands International and Xiamen Tianma
Micro-Electronics.
- Expanded relationships with existing customers such as: 1912,
Alliance Healthcare, Belk, Carolina Logistics Services, Chico’s,
Dentsply International, Essilor of America, Fasteners for Retail,
Five Below, Gunze Distribution, Hayneedle, Kurt Geiger, Langham
Logistics, LeSaint Logistics, Nortek, Paul Smith, Precision
Planting, PT Lion Super Indo, Recreational Equipment, Redmart,
Ryder Integrated Logistics, Sonae, Southern Glazer’s Wine &
Spirits, Staples, Telebrands Corporation, The Container Store, The
Jay Group, The Honest Company, Ulta Beauty, UPS Supply Chain, UWT
Logistics and West Coast Distribution.
2017 GUIDANCE
Manhattan Associates provides the following revenue and diluted
earnings per share guidance for the full year 2017:
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Guidance Range - 2017 Full Year |
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($'s in
millions, except EPS) |
$ Range |
|
% Growth Range |
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Total revenue -
current guidance |
$ |
606 |
|
|
$ |
620 |
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|
0 |
% |
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|
3 |
% |
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Total revenue -
previous guidance |
$ |
622 |
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|
$ |
632 |
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|
3 |
% |
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|
5 |
% |
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Diluted
earnings per share (EPS): |
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GAAP EPS -
current guidance |
$ |
1.77 |
|
|
$ |
1.81 |
|
|
|
3 |
% |
|
|
|
5 |
% |
|
|
|
Equity-based compensation, net of tax |
|
0.12 |
|
|
|
0.12 |
|
|
|
|
|
|
|
|
|
|
|
Purchase amortization, net of tax |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS(1)
- current guidance |
$ |
1.89 |
|
|
$ |
1.93 |
|
|
|
1 |
% |
|
|
|
3 |
% |
|
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|
GAAP EPS - previous
guidance |
$ |
1.74 |
|
|
$ |
1.78 |
|
|
|
1 |
% |
|
|
|
3 |
% |
|
|
|
Equity-based compensation, net of tax |
|
0.15 |
|
|
|
0.15 |
|
|
|
|
|
|
|
|
|
|
|
Purchase
amortization, net of tax |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS(1) -
previous guidance |
$ |
1.89 |
|
|
$ |
1.93 |
|
|
|
1 |
% |
|
|
|
3 |
% |
|
|
|
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(1)
Adjusted EPS is a Non-GAAP measure which excludes the impact of
equity-based compensation |
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and acquisition-related costs, and the related income tax
effects of both. |
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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. 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).
Following publication of this earnings release, any expectations
with respect to future financial performance contained in this
release, including the guidance above, should be considered
historical only, and Manhattan Associates disclaims any obligation
to update them.
CONFERENCE CALL
The Company’s conference call regarding its first quarter
financial results will be held today, April 20, 2017, at 4:30 p.m.
Eastern Time. 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 +1.855.859.2056 in
the U.S. and Canada, or +1.404.537.3406 outside the U.S., and
entering the conference identification number 85400037 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’ second quarter 2017 earnings
release.
GAAP VERSUS NON-GAAP PRESENTATION
The Company provides adjusted operating income, adjusted net
income and adjusted diluted earnings per share in this press
release as additional information regarding the Company’s
historical and projected operating results. These measures are not
in accordance with – or alternatives 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’ ability to understand and compare
the Company’s results and guidance, because the measures provide
supplemental information in evaluating the operating results of its
business, as distinct from results that include items that are not
indicative of ongoing operating results, and because the Company
believes its peers typically publish similar non-GAAP measures.
This release should be read in conjunction with the Company’s Form
8-K earnings release filing for the three months ended
March 31, 2017.
Non-GAAP adjusted operating income, adjusted income tax
provision, adjusted net income and adjusted diluted earnings per
share exclude the impact of equity-based compensation and
acquisition-related costs and the amortization thereof – all net of
income tax effects. 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
Manhattan Associates is a technology leader in supply chain and
omni-channel commerce. We unite information across the enterprise,
converging front-end sales with back-end supply chain execution.
Our software, platform technology and unmatched experience help
drive both top-line growth and bottom-line profitability for our
customers.
Manhattan Associates designs, builds and delivers leading edge
cloud and on-premise solutions so that across the store, through
your network or from your fulfillment center, you are ready to reap
the rewards of the omni-channel marketplace. 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 “2017 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, information security breaches and the risk factors
set forth in Item 1A of the Company’s Annual Report on Form 10-K
for the year ended December 31, 2016. 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.
MANHATTAN ASSOCIATES, INC. AND
SUBSIDIARIESCondensed Consolidated Statements of
Income(in thousands, except per share
amounts) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
Revenue: |
|
|
|
|
|
|
|
|
Software
license |
|
$ |
22,773 |
|
|
$ |
20,607 |
|
Services |
|
|
108,833 |
|
|
|
116,263 |
|
Hardware
and other |
|
|
11,883 |
|
|
|
12,990 |
|
Total
revenue |
|
|
143,489 |
|
|
|
149,860 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of
license |
|
|
2,240 |
|
|
|
3,152 |
|
Cost of
services |
|
|
49,743 |
|
|
|
51,904 |
|
Cost of
hardware and other |
|
|
9,638 |
|
|
|
9,757 |
|
Research
and development |
|
|
14,225 |
|
|
|
14,706 |
|
Sales and
marketing |
|
|
11,789 |
|
|
|
12,588 |
|
General
and administrative |
|
|
11,872 |
|
|
|
12,448 |
|
Depreciation and amortization |
|
|
2,262 |
|
|
|
2,206 |
|
Total
costs and expenses |
|
|
101,769 |
|
|
|
106,761 |
|
Operating income |
|
|
41,720 |
|
|
|
43,099 |
|
Other
(loss) income, net |
|
|
(371 |
) |
|
|
520 |
|
Income before income
taxes |
|
|
41,349 |
|
|
|
43,619 |
|
Income tax
provision |
|
|
13,125 |
|
|
|
16,139 |
|
Net income |
|
$ |
28,224 |
|
|
$ |
27,480 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.40 |
|
|
$ |
0.38 |
|
Diluted earnings per
share |
|
$ |
0.40 |
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares: |
|
|
|
|
|
|
|
|
Basic |
|
|
69,973 |
|
|
|
72,630 |
|
Diluted |
|
|
70,247 |
|
|
|
73,020 |
|
MANHATTAN ASSOCIATES, INC. AND
SUBSIDIARIESReconciliation of Selected GAAP to Non-GAAP
Measures(in thousands, except per share
amounts) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
41,720 |
|
|
$ |
43,099 |
|
Equity-based compensation (a) |
|
|
4,472 |
|
|
|
4,688 |
|
Purchase
amortization (c) |
|
|
107 |
|
|
|
107 |
|
Adjusted operating
income (Non-GAAP) |
|
$ |
46,299 |
|
|
$ |
47,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision |
|
$ |
13,125 |
|
|
$ |
16,139 |
|
Equity-based compensation (a) |
|
|
1,632 |
|
|
|
1,734 |
|
Tax
benefit of stock awards vested (b) |
|
|
1,968 |
|
|
|
- |
|
Purchase
amortization (c) |
|
|
39 |
|
|
|
40 |
|
Adjusted income tax
provision (Non-GAAP) |
|
$ |
16,764 |
|
|
$ |
17,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
28,224 |
|
|
$ |
27,480 |
|
Equity-based compensation (a) |
|
|
2,840 |
|
|
|
2,954 |
|
Tax
benefit of stock awards vested (b) |
|
|
(1,968 |
) |
|
|
- |
|
Purchase
amortization (c) |
|
|
68 |
|
|
|
67 |
|
Adjusted net income
(Non-GAAP) |
|
$ |
29,164 |
|
|
$ |
30,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS |
|
$ |
0.40 |
|
|
$ |
0.38 |
|
Equity-based compensation (a) |
|
|
0.04 |
|
|
|
0.04 |
|
Tax
benefit of stock awards vested (b) |
|
|
(0.03 |
) |
|
|
- |
|
Purchase
amortization (c) |
|
|
- |
|
|
|
- |
|
Adjusted diluted EPS
(Non-GAAP) |
|
$ |
0.42 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
Fully diluted
shares |
|
|
70,247 |
|
|
|
73,020 |
|
(a) Adjusted results exclude all equity-based compensation, to
facilitate comparison with our peers and for the other reasons
explained in our Current Report on Form 8-K filed with the SEC on
the date hereof. Equity-based compensation is included in the
following GAAP operating expense lines for the three months ended
March 31, 2017 and 2016:
|
|
|
Three Months Ended March 31, |
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
Cost of
services |
|
|
$ |
1,141 |
|
|
$ |
1,279 |
|
Research
and development |
|
|
|
720 |
|
|
|
754 |
|
Sales and
marketing |
|
|
|
667 |
|
|
|
685 |
|
General
and administrative |
|
|
|
1,944 |
|
|
|
1,970 |
|
Total equity-based
compensation |
|
|
$ |
4,472 |
|
|
$ |
4,688 |
|
(b) During the first quarter of 2017, we adopted Accounting
Standards Update (ASU) 2016-09, Compensation – Stock Compensation:
Improvements to Employee Share-Based Payment Accounting, to improve
the accounting for employee share-based payments. Under the new
guidance, all excess tax benefits and certain tax deficiencies are
recognized as income tax expense or benefit in the income
statements on a prospective basis, rather than recorded in
additional paid-in capital. The adjustment represents the excess
tax benefits of the stock awards vested during the period. Excess
tax benefits occur when the amount deductible for an award of
equity instruments on our tax return is more than the cumulative
compensation cost recognized for financial reporting purposes. 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 vesting.
(c) Adjustments represent purchased intangibles amortization
from prior acquisition. Such amortization is excluded from adjusted
results to facilitate comparison with our peers, to facilitate
comparisons of the results of our core operations from period to
period and for the other reasons explained in our Current Report on
Form 8-K filed with the SEC on the date hereof.
MANHATTAN ASSOCIATES, INC. AND
SUBSIDIARIESCondensed Consolidated Balance
Sheets(in thousands, except share and per share
data) |
|
|
|
|
|
March 31, 2017 |
|
|
December 31, 2016 |
|
|
|
(unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
89,208 |
|
|
$ |
95,615 |
|
Short-term investments |
|
|
12,051 |
|
|
|
- |
|
Accounts
receivable, net of allowance of $3,900 and $3,595,
respectively |
|
|
84,076 |
|
|
|
100,285 |
|
Prepaid
expenses and other current assets |
|
|
14,759 |
|
|
|
11,118 |
|
Total
current assets |
|
|
200,094 |
|
|
|
207,018 |
|
|
|
|
|
|
|
|
|
|
Property
and equipment, net |
|
|
16,525 |
|
|
|
17,424 |
|
Goodwill,
net |
|
|
62,230 |
|
|
|
62,228 |
|
Deferred
income taxes |
|
|
898 |
|
|
|
2,867 |
|
Other
assets |
|
|
7,595 |
|
|
|
7,603 |
|
Total
assets |
|
$ |
287,342 |
|
|
$ |
297,140 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
11,213 |
|
|
$ |
12,052 |
|
Accrued
compensation and benefits |
|
|
18,866 |
|
|
|
20,700 |
|
Accrued
and other liabilities |
|
|
11,929 |
|
|
|
12,510 |
|
Deferred
revenue |
|
|
70,751 |
|
|
|
63,457 |
|
Income
taxes payable |
|
|
17,057 |
|
|
|
8,924 |
|
Total
current liabilities |
|
|
129,816 |
|
|
|
117,643 |
|
|
|
|
|
|
|
|
|
|
Other non-current
liabilities |
|
|
9,658 |
|
|
|
10,131 |
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
|
|
|
|
Preferred
stock, no par value; 20,000,000 shares authorized, no shares issued
or outstanding in 2017 and 2016 |
|
|
- |
|
|
|
- |
|
Common
stock, $0.01 par value; 200,000,000 shares authorized; 69,443,299
and 70,233,955 shares issued and outstanding at March 31, 2017 and
December 31, 2016, respectively |
|
|
694 |
|
|
|
702 |
|
Retained
earnings |
|
|
161,175 |
|
|
|
184,558 |
|
Accumulated other comprehensive loss |
|
|
(14,001 |
) |
|
|
(15,894 |
) |
Total
shareholders' equity |
|
|
147,868 |
|
|
|
169,366 |
|
Total
liabilities and shareholders' equity |
|
$ |
287,342 |
|
|
$ |
297,140 |
|
MANHATTAN ASSOCIATES, INC. AND
SUBSIDIARIESCondensed Consolidated Statements of Cash
Flows(in thousands) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
Operating
activities: |
|
|
|
|
|
|
|
|
Net
income |
|
$ |
28,224 |
|
|
$ |
27,480 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,262 |
|
|
|
2,206 |
|
Equity-based compensation |
|
|
4,472 |
|
|
|
4,688 |
|
Loss on
disposal of equipment |
|
|
20 |
|
|
|
3 |
|
Tax
benefit of stock awards exercised/vested |
|
|
- |
|
|
|
5,023 |
|
Excess
tax benefits from equity-based compensation |
|
|
- |
|
|
|
(5,023 |
) |
Deferred
income taxes |
|
|
2,531 |
|
|
|
1,747 |
|
Unrealized foreign currency loss (gain) |
|
|
104 |
|
|
|
(61 |
) |
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable, net |
|
|
16,553 |
|
|
|
13,554 |
|
Other
assets |
|
|
(3,939 |
) |
|
|
(228 |
) |
Accounts
payable, accrued and other liabilities |
|
|
(4,063 |
) |
|
|
(12,186 |
) |
Income
taxes |
|
|
8,172 |
|
|
|
2,044 |
|
Deferred
revenue |
|
|
6,940 |
|
|
|
1,179 |
|
Net cash
provided by operating activities |
|
|
61,276 |
|
|
|
40,426 |
|
|
|
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
|
|
|
Purchase
of property and equipment |
|
|
(789 |
) |
|
|
(1,906 |
) |
Net
(purchases) maturities of investments |
|
|
(11,630 |
) |
|
|
1,418 |
|
Net cash
used in investing activities |
|
|
(12,419 |
) |
|
|
(488 |
) |
|
|
|
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
|
|
|
|
Purchase
of common stock |
|
|
(56,619 |
) |
|
|
(57,791 |
) |
Proceeds
from issuance of common stock from options exercised |
|
|
- |
|
|
|
18 |
|
Excess
tax benefits from equity-based compensation |
|
|
- |
|
|
|
5,023 |
|
Net cash
used in financing activities |
|
|
(56,619 |
) |
|
|
(52,750 |
) |
|
|
|
|
|
|
|
|
|
Foreign currency impact
on cash |
|
|
1,355 |
|
|
|
208 |
|
|
|
|
|
|
|
|
|
|
Net change in cash and
cash equivalents |
|
|
(6,407 |
) |
|
|
(12,604 |
) |
Cash and cash
equivalents at beginning of period |
|
|
95,615 |
|
|
|
118,416 |
|
Cash and cash
equivalents at end of period |
|
$ |
89,208 |
|
|
$ |
105,812 |
|
|
|
|
|
|
|
|
|
|
MANHATTAN ASSOCIATES, INC.SUPPLEMENTAL
INFORMATION
1. GAAP and Adjusted earnings per
share by quarter are as follows:
|
|
|
2016 |
|
|
2017 |
|
|
|
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Full Year |
|
|
1st Qtr |
|
GAAP Diluted
EPS |
|
|
$ |
|
0.38 |
|
|
$ |
0.46 |
|
|
$ |
0.47 |
|
|
$ |
0.42 |
|
|
$ |
1.72 |
|
|
$ |
0.40 |
|
Adjustments to
GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation |
|
|
|
|
0.04 |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.04 |
|
|
|
0.14 |
|
|
|
0.04 |
|
Tax
benefit of stock awards vested |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.03 |
) |
Purchase
amortization |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted
Diluted EPS |
|
|
$ |
|
0.42 |
|
|
$ |
0.49 |
|
|
$ |
0.50 |
|
|
$ |
0.46 |
|
|
$ |
1.87 |
|
|
$ |
0.42 |
|
Fully Diluted
Shares |
|
|
|
|
73,020 |
|
|
|
72,228 |
|
|
|
71,743 |
|
|
|
71,148 |
|
|
|
72,060 |
|
|
|
70,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. Revenues and operating income by
reportable segment are as follows (in thousands):
|
|
|
2016 |
|
|
2017 |
|
|
|
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Full Year |
|
|
1st Qtr |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
$ |
128,807 |
|
|
$ |
131,018 |
|
|
$ |
130,099 |
|
|
$ |
123,660 |
|
|
$ |
513,584 |
|
|
$ |
113,115 |
|
EMEA |
|
|
|
15,686 |
|
|
|
18,185 |
|
|
|
15,078 |
|
|
|
17,333 |
|
|
|
66,282 |
|
|
|
23,360 |
|
APAC |
|
|
|
5,367 |
|
|
|
5,689 |
|
|
|
7,036 |
|
|
|
6,599 |
|
|
|
24,691 |
|
|
|
7,014 |
|
|
|
|
$ |
149,860 |
|
|
$ |
154,892 |
|
|
$ |
152,213 |
|
|
$ |
147,592 |
|
|
$ |
604,557 |
|
|
$ |
143,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
$ |
37,454 |
|
|
$ |
44,126 |
|
|
$ |
46,213 |
|
|
$ |
37,154 |
|
|
$ |
164,947 |
|
|
$ |
28,713 |
|
EMEA |
|
|
|
4,439 |
|
|
|
6,854 |
|
|
|
4,822 |
|
|
|
5,945 |
|
|
|
22,060 |
|
|
|
10,754 |
|
APAC |
|
|
|
1,206 |
|
|
|
1,288 |
|
|
|
2,549 |
|
|
|
2,257 |
|
|
|
7,300 |
|
|
|
2,253 |
|
|
|
|
$ |
43,099 |
|
|
$ |
52,268 |
|
|
$ |
53,584 |
|
|
$ |
45,356 |
|
|
$ |
194,307 |
|
|
$ |
41,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
(pre-tax): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation |
|
|
$ |
4,688 |
|
|
$ |
3,495 |
|
|
$ |
3,541 |
|
|
$ |
4,210 |
|
|
$ |
15,934 |
|
|
$ |
4,472 |
|
Purchase
amortization |
|
|
|
107 |
|
|
|
108 |
|
|
|
107 |
|
|
|
108 |
|
|
|
430 |
|
|
|
107 |
|
|
|
|
$ |
4,795 |
|
|
$ |
3,603 |
|
|
$ |
3,648 |
|
|
$ |
4,318 |
|
|
$ |
16,364 |
|
|
$ |
4,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
non-GAAP Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
$ |
42,249 |
|
|
$ |
47,729 |
|
|
$ |
49,861 |
|
|
$ |
41,472 |
|
|
$ |
181,311 |
|
|
$ |
33,292 |
|
EMEA |
|
|
|
4,439 |
|
|
|
6,854 |
|
|
|
4,822 |
|
|
|
5,945 |
|
|
|
22,060 |
|
|
|
10,754 |
|
APAC |
|
|
|
1,206 |
|
|
|
1,288 |
|
|
|
2,549 |
|
|
|
2,257 |
|
|
|
7,300 |
|
|
|
2,253 |
|
|
|
|
$ |
47,894 |
|
|
$ |
55,871 |
|
|
$ |
57,232 |
|
|
$ |
49,674 |
|
|
$ |
210,671 |
|
|
$ |
46,299 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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):
|
|
|
2016 |
|
|
2017 |
|
|
|
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Full Year |
|
|
1st Qtr |
|
Professional
services |
|
|
$ |
84,506 |
|
|
$ |
86,992 |
|
|
$ |
84,843 |
|
|
$ |
77,097 |
|
|
$ |
333,438 |
|
|
$ |
75,457 |
|
Customer support
and software enhancements |
|
|
|
31,757 |
|
|
|
32,841 |
|
|
|
34,424 |
|
|
|
34,826 |
|
|
|
133,848 |
|
|
|
33,376 |
|
Total services
revenue |
|
|
$ |
116,263 |
|
|
$ |
119,833 |
|
|
$ |
119,267 |
|
|
$ |
111,923 |
|
|
$ |
467,286 |
|
|
$ |
108,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. Hardware and other revenue includes
the following items (in thousands):
|
|
|
2016 |
|
|
2017 |
|
|
|
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Full Year |
|
|
1st Qtr |
|
Hardware revenue |
|
|
$ |
8,761 |
|
|
$ |
9,554 |
|
|
$ |
6,543 |
|
|
$ |
9,070 |
|
|
$ |
33,928 |
|
|
$ |
7,559 |
|
Billed travel |
|
|
|
4,229 |
|
|
|
4,874 |
|
|
|
4,770 |
|
|
|
4,474 |
|
|
|
18,347 |
|
|
|
4,324 |
|
Total
hardware and other revenue |
|
|
$ |
12,990 |
|
|
$ |
14,428 |
|
|
$ |
11,313 |
|
|
$ |
13,544 |
|
|
$ |
52,275 |
|
|
$ |
11,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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):
|
|
|
2016 |
|
|
2017 |
|
|
|
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Full Year |
|
|
1st Qtr |
|
Revenue |
|
|
$ |
(810 |
) |
|
$ |
(474 |
) |
|
$ |
(784 |
) |
|
$ |
(1,425 |
) |
|
$ |
(3,493 |
) |
|
$ |
(1,547 |
) |
Costs and expenses |
|
|
|
(1,292 |
) |
|
|
(702 |
) |
|
|
(782 |
) |
|
|
(1,028 |
) |
|
|
(3,804 |
) |
|
|
(789 |
) |
Operating income |
|
|
|
482 |
|
|
|
228 |
|
|
|
(2 |
) |
|
|
(397 |
) |
|
|
311 |
|
|
|
(758 |
) |
Foreign currency
gains (losses) in other income |
|
|
|
165 |
|
|
|
331 |
|
|
|
(72 |
) |
|
|
211 |
|
|
|
635 |
|
|
|
(646 |
) |
|
|
|
$ |
647 |
|
|
$ |
559 |
|
|
$ |
(74 |
) |
|
$ |
(186 |
) |
|
$ |
946 |
|
|
$ |
(1,404 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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):
|
|
|
2016 |
|
|
2017 |
|
|
|
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Full Year |
|
|
1st Qtr |
|
Operating income |
|
|
$ |
682 |
|
|
$ |
459 |
|
|
$ |
259 |
|
|
$ |
159 |
|
|
$ |
1,559 |
|
|
$ |
(70 |
) |
Foreign currency
(losses) gains in other income |
|
|
|
(109 |
) |
|
|
212 |
|
|
|
(44 |
) |
|
|
159 |
|
|
|
218 |
|
|
|
(320 |
) |
Total
impact of changes in the Indian Rupee |
|
|
$ |
573 |
|
|
$ |
671 |
|
|
$ |
215 |
|
|
$ |
318 |
|
|
$ |
1,777 |
|
|
$ |
(390 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6. Other income includes the following
components (in thousands):
|
|
|
2016 |
|
|
2017 |
|
|
|
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Full Year |
|
|
1st Qtr |
|
Interest income |
|
|
$ |
335 |
|
|
$ |
329 |
|
|
$ |
281 |
|
|
$ |
216 |
|
|
$ |
1,161 |
|
|
$ |
293 |
|
Foreign currency
gains (losses) |
|
|
|
165 |
|
|
|
331 |
|
|
|
(72 |
) |
|
|
211 |
|
|
|
635 |
|
|
|
(646 |
) |
Other
non-operating income (expense) |
|
|
|
20 |
|
|
|
(6 |
) |
|
|
1 |
|
|
|
(11 |
) |
|
|
4 |
|
|
|
(18 |
) |
Total
other income (loss) |
|
|
$ |
520 |
|
|
$ |
654 |
|
|
$ |
210 |
|
|
$ |
416 |
|
|
$ |
1,800 |
|
|
$ |
(371 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7. Capital expenditures are as follows
(in thousands):
|
|
|
2016 |
|
|
2017 |
|
|
|
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Full Year |
|
|
1st Qtr |
|
Capital
expenditures |
|
|
$ |
1,906 |
|
|
$ |
2,201 |
|
|
$ |
1,358 |
|
|
$ |
1,378 |
|
|
$ |
6,843 |
|
|
$ |
789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8. Stock Repurchase Activity (in
thousands):
|
|
|
2016 |
|
|
2017 |
|
|
|
|
1st Qtr |
|
|
2nd Qtr |
|
|
3rd Qtr |
|
|
4th Qtr |
|
|
Full Year |
|
|
1st Qtr |
|
Shares
purchased under publicly-announced buy-back
program |
|
|
892 |
|
|
|
552 |
|
|
|
420 |
|
|
|
957 |
|
|
|
2,821 |
|
|
|
1,004 |
|
Shares
withheld for taxes due upon vesting of restricted
stock |
|
|
163 |
|
|
|
- |
|
|
|
3 |
|
|
|
1 |
|
|
|
167 |
|
|
|
131 |
|
Total shares
purchased |
|
|
|
1,055 |
|
|
|
552 |
|
|
|
423 |
|
|
|
958 |
|
|
|
2,988 |
|
|
|
1,135 |
|
Total cash
paid for shares purchased under
publicly-announced buy-back program |
|
$ |
48,499 |
|
|
$ |
34,995 |
|
|
$ |
24,998 |
|
|
$ |
49,901 |
|
|
$ |
158,393 |
|
|
$ |
49,978 |
|
Total cash
paid for shares withheld for taxes due upon vesting of
restricted stock |
|
|
9,292 |
|
|
|
26 |
|
|
|
158 |
|
|
|
64 |
|
|
|
9,540 |
|
|
|
6,641 |
|
Total cash paid for
shares repurchased |
|
|
$ |
57,791 |
|
|
$ |
35,021 |
|
|
$ |
25,156 |
|
|
$ |
49,965 |
|
|
$ |
167,933 |
|
|
$ |
56,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9. As mentioned in footnote b to the
reconciliation of selected GAAP to Non-GAAP Measures, during the
first quarter of 2017, we adopted ASU 2016-09 Compensation - Stock
Compensation: Improvements to Employee Share-Based Payment
Accounting. Had we adopted the guidance during the first quarter of
2016, the cash provided by operating activities and cash used in
financing activities for the three months ended March 31, 2016 as
compared to March 31, 2017 would have been as follows:
|
|
|
2016 |
|
|
2017 |
|
|
|
|
1st Qtr |
|
|
1st Qtr |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities, as stated |
|
|
$ |
40,426 |
|
|
$ |
61,276 |
|
Add: excess
tax benefit from equity-based compensation |
|
5,023 |
|
|
|
- |
|
Revised net cash
provided by operating activities |
|
|
$ |
45,449 |
|
|
$ |
61,276 |
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities, as stated |
|
|
$ |
(52,750 |
) |
|
$ |
(56,619 |
) |
Less:
excess tax benefit from equity-based compensation |
|
(5,023 |
) |
|
|
- |
|
Revised net cash used
in financing activities |
|
|
$ |
(57,773 |
) |
|
$ |
(56,619 |
) |
|
|
|
|
|
|
|
|
|
|
Contact:
Dennis Story
Chief Financial Officer
Manhattan Associates, Inc.
770-955-7070
dstory@manh.com
Beverly McDonald
Senior Director, Corporate Marketing
Manhattan Associates, Inc.
678-597-6528
bmcdonald@manh.com
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