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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