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Manhattan Associates Reports Record Fourth Quarter and Full Year 2012 Performance



Manhattan Associates Reports Record Fourth Quarter and Full Year 2012
Performance

ATLANTA, Jan. 29, 2013 (GLOBE NEWSWIRE) -- 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. 
  * 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.
  * 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

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.

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.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
                                                                      
                               Three Months Ended December Twelve Months Ended
                               31,                         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          --            --            --        (2,519)
impaired investment
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            2,543           3,055           8,338       10,372
compensation ^(a)
Purchase amortization   1               2               6           1,172
^(b)
Recovery of previously
impaired investment     --              --              --          (2,519)
^(c)
Adjusted operating      $ 21,658        $ 19,260        $ 88,417    $ 70,388
income (Non-GAAP)
                                                                    
                                                                    
GAAP Income tax         $ 7,178         $ 6,328         $ 29,185    $ 18,320
provision
Equity-based            942             1,075           3,028       3,526
compensation ^(a)
Purchase amortization   --              6               2           398
^(b)
Unusual tax             --              11              --          238
adjustments ^(d)
Adjusted income tax     $ 8,120         $ 7,420         $ 32,215    $ 22,482
provision (Non-GAAP)
                                                                    
                                                                    
GAAP Net income         $ 12,470        $ 10,525        $ 51,853    $ 44,907
Equity-based            1,601           1,980           5,310       6,846
compensation ^(a)
Purchase amortization   1               (4)             4           774
^(b)
Recovery of previously
impaired investment     --              --              --          (2,519)
^(c)
Unusual tax             --              (11)            --          (238)
adjustments ^(d)
Adjusted net income     $ 14,072        $ 12,490        $ 57,167    $ 49,770
(Non-GAAP)
                                                                    
                                                                    
GAAP Diluted EPS        $ 0.63          $ 0.50          $ 2.56      $ 2.09
Equity-based            0.08            0.09            0.26        0.32
compensation ^(a)
Purchase amortization   --              --              --          0.04
^(b)
Recovery of previously
impaired investment     --              --              --          (0.12)
^(c)
Unusual tax             --              --              --          (0.01)
adjustments ^(d)
Adjusted diluted EPS    $ 0.71          $ 0.60          $ 2.82      $ 2.32
(Non-GAAP)
                                                                    
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            424             410             1,558       1,583
development
Sales and marketing     553             812             2,220       2,545
General and             1,232           1,543           3,736       4,877
administrative
Total equity-based      $ 2,543         $ 3,055         $ 8,338     $ 10,372
compensation
                                                                    
(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       62,102     56,264
$4,816 in 2012 and 2011, respectively
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   196        204
outstanding at December 31, 2012 and 2011, respectively
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     32,082      52,721
exercised
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        0.07      0.07      0.08      0.09      0.32       0.05      0.06       0.07      0.08      0.26
compensation
Purchase            0.01      0.01      0.01      --        0.04       --        --         --        --        -- 
amortization
Recovery of
previously          --        --        (0.12)    --        (0.12)     --        --         --        --        -- 
impaired
investment
Unusual tax         --        --        (0.01)    --        (0.01)     --        --         --        --        -- 
adjustments
Adjusted Diluted    $ 0.41    $ 0.65    $ 0.67    $ 0.60    $ 2.32     $ 0.60    $ 0.76     $ 0.75    $ 0.71    $ 2.82
EPS
                                                                                                                
                                                                                                                
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        $ 2,409   $ 2,405   $ 2,503   $ 3,055   $ 10,372   $ 1,660   $ 1,977    $ 2,158   $ 2,543   $ 8,338
compensation
Purchase            439       438       293       2         1,172      2         1          2         1         6
amortization 
Recovery of
previously          --        --        (2,519)   --        (2,519)    --        --        --         --        -- 
impaired
investment 
                    $ 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        $ 35,184  $ 42,150  $ 41,403  $ 38,057  $ 156,794  $ 46,621  $ 45,497   $ 47,082  $ 46,042  $ 185,242
services
Customer support
and software        20,894    21,624    22,191    22,555    87,264     23,749    23,825     24,804    26,252    98,630
enhancements
Total services      $ 56,078  $ 63,774  $ 63,594  $ 60,612  $ 244,058  $ 70,370  $ 69,322   $ 71,886  $ 72,294  $ 283,872
revenue
                                                                                                                
                                                                                                                
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  $ 7,870   $ 8,281   $ 8,443   $ 6,360   $ 30,954   $ 5,524   $ 8,900    $ 7,791   $ 8,667   $ 30,882
other revenue
                                                                                                                
                                                                                                                
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   (207)     77        575       367       812        (370)     571        (564)     231       (132)
other income
                    $ (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   (112)     53        653       638       1,232      (144)     724        (500)     282       362
other income
Total impact of
changes in the      $ (165)   $ (29)    $ 577     $ 1,365   $ 1,748    $ 560     $ 1,917    $ 661     $ 630     $ 3,768
Indian Rupee
                                                                                                                
                                                                                                                
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    (207)     77        575       367       812        (370)     571        (564)     231       (132)
(losses) gains
Other
non-operating       --        (12)      (11)      3         (20)       (18)      3          39        11        35
(expense) income
Total other income  $ 18      $ 334     $ 862     $ 650     $ 1,864    $ (124)   $ 802      $ (247)   $ 534     $ 965
(expense)
                                                                                                                
                                                                                                                
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  2,409     2,405     2,503     3,055     10,372     1,660     1,977      2,158     2,543     8,338
compensation
Income tax          807       806       838       1,075     3,526      598       711        777       942       3,028
provision
Net income          $ 1,602   $ 1,599   $ 1,665   $ 1,980   $ 6,846    $ 1,062   $ 1,266    $ 1,381   $ 1,601   $ 5,310
Diluted earnings    $ 0.07    $ 0.07    $ 0.08    $ 0.09    $ 0.32     $ 0.05    $ 0.06     $ 0.07    $ 0.08    $ 0.26
per share
                                                                                                                
Diluted earnings
per share - stock   $ 0.02    $ 0.01    $ 0.02    $ 0.02    $ 0.06     $ 0.00    $ --       $ --      $ 0.01    $ 0.02
options
Diluted earnings
per share -         $ 0.06    $ 0.06    $ 0.06    $ 0.08    $ 0.26     $ 0.05    $ 0.06     $ 0.07    $ 0.07    $ 0.24
restricted stock
                                                                                                                
                                                                                                                
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             $ 1,338   $ 658     $ 1,676   $ 1,402   $ 5,074    $ 1,796   $ 1,454    $ 1,086   $ 3,537   $ 7,873
expenditures
                                                                                                                
                                                                                                                
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               826       1,079     845       857       3,607      653       346        419       527       1,945
publicly-announced
buy-back program
Shares withheld
for taxes due upon  65        4         4         5         78         66        3          5         4         78
vesting of
restricted stock
Total shares        891       1,083     849       862       3,685      719       349        424       531       2,023
purchased
                                                                                                                
Total cash paid
for shares
purchased under     $ 25,621  $ 38,286  $ 29,414  $ 37,390  $ 130,711  $ 30,647  $ 16,616   $ 21,202  $ 31,223  $ 99,688
publicly-announced
buy-back program
Total cash paid
for shares
withheld for taxes  1,960     129       159       185       2,433      2,840     132        230       265       3,467
due upon vesting
of restricted
stock
Total cash paid
for shares          $ 27,581  $ 38,415  $ 29,573  $ 37,575  $ 133,144  $ 33,487  $ 16,748   $ 21,432  $ 31,488  $ 103,155
repurchased

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