Manhattan Associates Reports Record First Quarter 2013 Earnings

Manhattan Associates Reports Record First Quarter 2013 Earnings

Company Raises Full-Year EPS Guidance

ATLANTA, April 23, 2013 (GLOBE NEWSWIRE) -- Leading supply chain optimization
provider Manhattan Associates, Inc. (Nasdaq:MANH) today reported record first
quarter 2013 non-GAAP adjusted diluted earnings per share of $0.74 compared to
$0.60 in the first quarter of 2012, on license revenue of $14.2 million and
record first quarter total revenue of $96.6 million. GAAP diluted earnings per
share for the first quarter was a record $0.68 compared to $0.55 in the prior
year first quarter.

Manhattan Associates President and CEO Eddie Capel commented, "We're very
pleased with our first quarter performance. We posted solid financial results
and our competitive win rates remain strong. While it remains somewhat
difficult to predict the effect of the sluggish global economy, we are well
positioned for a solid year in 2013 and beyond."

FIRST QUARTER 2013 FINANCIAL SUMMARY:

  *Adjusted diluted earnings per share, a non-GAAP measure, was $0.74 in the
    first quarter of 2013, compared to $0.60 in the first quarter of 2012.
  *GAAP diluted earnings per share was $0.68 in the first quarter of 2013,
    compared to $0.55 in the first quarter of 2012.
  *Consolidated total revenue was $96.6 million in the first quarter of 2013,
    compared to $91.5 million in the first quarter of 2012.License revenue
    was $14.2 million in the first quarter of 2013, compared to $15.6 million
    in the first quarter of 2012.
  *Adjusted operating income, a non-GAAP measure, was $21.6 million in the
    first quarter of 2013, compared to $19.6 million in the first quarter of
    2012.
  *GAAP operating income was $19.7 million in the first quarter of 2013,
    compared to $17.9 million in the first quarter of 2012.
  *Cash flow from operations was $20.1 million in the first quarter of 2013,
    compared to $13.1 million in the first quarter of 2012.Days Sales
    Outstanding was 56 days at March 31, 2013, compared to 60 days at December
    31, 2012.
  *Cash and investments on-hand were $108.5 million at March 31, 2013,
    compared to $103.0 million at December 31, 2012.
  *During the three months ended March 31, 2013, the Company repurchased
    225,632 shares of Manhattan Associates common stock under the share
    repurchase program authorized by the Board of Directors, for a total
    investment of $15.9 million.In April 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.

SALES ACHIEVEMENTS:

  *Three contracts of $1.0 million or more in recognized license revenue
    during the first quarter of 2013.
  *Completing software license wins with new customers such as: eStore
    Logistics, Fulfillment Services Solution, Innnes, P T Chandra
    Supermarkets, Redmart, Target Australia and Zhejiang Yongsheng
    Pharmaceutical Logistics.
  *Expanding relationships with existing customers such as: AcuSport,
    Assuramed, ATB Market, Benjamin Moore & Co, Cabela's, Carolina Logistics
    Services, Cotton On Group Services, Devanlay, DOME Corporation, El Corte
    Ingles, Federal Emergency Management Agency (FEMA), Guthy-Renker
    Fulfillment Services, Hayneedle, Ingram Industries, Innotrac Corporation,
    Michael Kors, Niagara Bottling, Ozburn-Hessey Logistics, Performance Team
    Freight Systems, Primark Stores, ProSilver Star, Republic National
    Distributing Company, Retail Brand Alliance, Richline Group, Speed
    Transportation, The Container Store, The Hillman Group and Wolverine
    Worldwide.

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 - current guidance $410    $415   9%       10%
                                                      
Diluted earnings per share (EPS):                       
 Adjusted EPS - current guidance  $3.21   $3.27  14%      16%
 GAAP EPS - current guidance      $2.91   $2.97  14%      16%
                                                      
 Adjusted EPS - previous guidance $3.15   $3.21  12%      14%
 GAAP EPS - previous guidance     $2.85   $2.91  11%      14%

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 June 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 July 2013.

CONFERENCE CALL

The Company's conference call regarding its first quarter financial results
will be held at 4:30 p.m. Eastern Time on Tuesday April 23, 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 +1.800.585.8367 in the U.S. and Canada, or
+1.855.859.2056 outside the U.S., and entering the conference identification
number 30824907 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 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' ability to
understand and compare the Company's results and guidance, because the
measures provide important 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's competitors and 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 quarter ended March 31, 2013.

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 and equity-based compensation – 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, 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, 2012. 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 March 31,
                              2013           2012
                              (unaudited)
Revenue:                                     
Software license              $14,245      $15,587
Services                      74,887        70,370
Hardware and other            7,469         5,524
Total revenue                 96,601        91,481
                                            
Costs and expenses:                          
Cost of license               1,778         1,777
Cost of services              35,046        31,710
Cost of hardware and other    6,214         4,448
Research and development      11,476        11,551
Sales and marketing           11,434        12,403
General and administrative    9,508         10,308
Depreciation and amortization 1,484         1,344
Total costs and expenses      76,940        73,541
Operating income               19,661        17,940
Other income (loss), net       151           (124)
Income before income taxes     19,812        17,816
Income tax provision           6,457         6,414
Net income                     $13,355      $11,402
                                            
Basic earnings per share       $0.69        $0.57
Diluted earnings per share     $0.68        $0.55
                                            
Weighted average number of shares:
Basic                          19,327        19,904
Diluted                        19,685        20,637


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Reconciliation of Selected GAAP to Non-GAAP Measures
(in thousands, except per share amounts)
                                                           
                                                           
                                          Three Months Ended March 31,
                                          2013              2012
                                                           
GAAP Operating income                       $19,661         $17,940
Equity-based compensation ^(a)              1,907            1,660
Purchase amortization ^(b)                  2                2
Adjusted operating income (Non-GAAP)        $21,570         $19,602
                                                           
                                                           
GAAP Income tax provision                   $6,457          $6,414
Equity-based compensation ^(a)              671              598
Purchase amortization ^(b)                  1                1
Adjusted income tax provision (Non-GAAP)    $7,129          $7,013
                                                           
                                                           
GAAP Net income                            $13,355         $11,402
Equity-based compensation ^(a)              1,236            1,062
Purchase amortization ^(b)                  1                1
Adjusted net income (Non-GAAP)              $14,592         $12,465
                                                           
                                                           
GAAP Diluted EPS                           $0.68           $0.55
Equity-based compensation ^(a)              0.06             0.05
Purchase amortization ^(b)                  --               --
Adjusted diluted EPS (Non-GAAP)             $0.74           $0.60
                                                           
Fully diluted shares                       19,685           20,637
                                                           
                                                           
(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 months ended March 31, 2013 and 2012:
                                          Three Months Ended March 31,
                                          2013              2012
                                                           
Cost of services                           $249            $(124)
Research and development                   298              283
Sales and marketing                        512              633
General and administrative                 848              868
Total equity-based compensation            $1,907          $1,660
                                                           
(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.


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
                                                           
                                                           
                                             March 31, 2013 December 31, 2012
                                             (unaudited)    
ASSETS                                                      
Current Assets:                                             
Cash and cash equivalents                     $101,093     $96,737
Short term investments                        7,452         6,310
Accounts receivable, net of allowance of
$5,207 and $6,235 in 2013 and 2012,           59,587        62,102
respectively
Deferred income taxes                         7,798         7,787
Prepaid expenses and other current assets     9,291         8,571
Total current assets                         185,221       181,507
                                                           
Property and equipment, net                   14,749        15,650
Goodwill, net                                 62,259        62,265
Deferred income taxes                         717           732
Other assets                                  1,595         1,659
Total assets                                 $264,541     $261,813
                                                           
                                                           
LIABILITIES AND SHAREHOLDERS' EQUITY                        
                                                           
Current liabilities:                                        
Accounts payable                              $6,722       $10,229
Accrued compensation and benefits             14,561        16,720
Accrued and other liabilities                 11,262        12,233
Deferred revenue                              57,932        47,935
Income taxes payable                          --           4,024
Total current liabilities                    90,477        91,141
                                                           
Other non-current liabilities                 11,018        9,163
                                                           
Shareholders' equity:                                       
Preferred stock, no par value; 20,000,000
shares authorized, no shares issued or        --           --
outstanding in 2013 or 2012
Common stock, $.01 par value; 100,000,000
shares authorized; 19,471,417 and 19,620,967  195           196
shares issued and outstanding at March 31,
2013 and December 31, 2012, respectively
Retained earnings                             167,634       166,016
Accumulated other comprehensive loss          (4,783)       (4,703)
Total shareholders' equity                   163,046       161,509
Total liabilities and shareholders' equity   $264,541     $261,813


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
                                                                
                                                 Three Months Ended March 31,
                                                 2013            2012
                                                 (unaudited)     
Operating activities:                                            
Net income                                        $13,355       $11,402
Adjustments to reconcile net income to net cash                  
provided by operating activities:
Depreciation and amortization                     1,484          1,344
Equity-based compensation                         1,907          1,660
Loss on disposal of equipment                     1              --
Tax benefit of stock awards exercised/vested     4,206          4,491
Excess tax benefits from equity-based             (4,163)        (3,634)
compensation
Deferred income taxes                             1,682          2,564
Unrealized foreign currency (gain) loss           (75)           172
Changes in operating assets and liabilities:                     
Accounts receivable, net                          2,255          (627)
Other assets                                      (594)          (292)
Accounts payable, accrued and other liabilities   (6,652)        (5,517)
Income taxes                                      (3,720)        (832)
Deferred revenue                                  10,414         2,328
Net cash provided by operating activities         20,100         13,059
                                                                
Investing activities:                                            
Purchase of property and equipment                (598)          (1,796)
Net (purchases) maturities of investments        (1,115)        2,106
Net cash (used in) provided by investing          (1,713)        310
activities
                                                                
Financing activities:                                            
Purchase of common stock                          (20,474)       (33,487)
Proceeds from issuance of common stock from       2,623          16,108
options exercised
Excess tax benefits from equity-based             4,163          3,634
compensation
Net cash used in financing activities             (13,688)       (13,745)
                                                                
Foreign currency impact on cash                   (343)          473
                                                                
Net change in cash and cash equivalents           4,356          97
Cash and cash equivalents at beginning of period  96,737         92,180
Cash and cash equivalents at end of period        $101,093      $92,277

                                                                 
MANHATTAN                                                         
ASSOCIATES, INC.
SUPPLEMENTAL                                                      
INFORMATION
                                                                 
                                                                 
1. GAAP and Adjusted
earnings per share by                                              
quarter are as follows:
                                                                 
                  2012                                                2013
                  1st Qtr   2nd Qtr    3rd Qtr   4th Qtr   Full Year  1st Qtr
GAAP Diluted EPS   $0.55   $0.70    $0.69   $0.63   $2.56    $0.68
Adjustments to                                                    
GAAP:
Equity-based      0.05     0.06      0.07     0.08     0.26      0.06
compensation
Purchase          --      --       --      --      --       --
amortization
Adjusted Diluted   $0.60   $0.76    $0.75   $0.71   $2.82    $0.74
EPS
                                                                 
                                                                 
2. Revenues and operating income by
reportable segment are as follows (in                               
thousands):
                                                                 
                  2012                                                2013
                  1st Qtr   2nd Qtr    3rd Qtr   4th Qtr   Full Year  1st Qtr
Revenue:                                                          
Americas           $73,195 $77,094  $79,657 $77,646 $307,592 $79,820
EMEA               12,407   12,334    10,589   11,808   47,138    11,431
APAC               5,879    4,139     5,595    5,905    21,518    5,350
                  $91,481 $93,567  $95,841 $95,359 $376,248 $96,601
                                                                 
GAAP Operating                                                    
Income:
Americas           $13,685 $18,130  $17,718 $15,984 $65,517  $16,964
EMEA               2,580    2,944     2,707    1,494    9,725     1,753
APAC               1,675    268       1,252    1,636    4,831     944
                  $17,940 $21,342  $21,677 $19,114 $80,073  $19,661
                                                                 
Adjustments                                                       
(pre-tax):
Americas:                                                         
Equity-based      $1,660  $1,977   $2,158  $2,543  $8,338   $1,907
compensation
Purchase          2        1         2        1        6         2
amortization
                  $1,662  $1,978   $2,160  $2,544  $8,344   $1,909
                                                                 
Adjusted non-GAAP                                                 
Operating Income:
Americas           $15,347 $20,108  $19,878 $18,528 $73,861  $18,873
EMEA               2,580    2,944     2,707    1,494    9,725     1,753
APAC               1,675    268       1,252    1,636    4,831     944
                  $19,602 $23,320  $23,837 $21,658 $88,417  $21,570
                                                                 
                                                                 
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):
                                                                 
                  2012                                                2013
                  1st Qtr   2nd Qtr    3rd Qtr   4th Qtr   Full Year  1st Qtr
Professional       $46,621 $45,497  $47,082 $46,042 $185,242 $49,151
services
Customer support
and software       23,749   23,825    24,804   26,252   98,630    25,736
enhancements
Total services     $70,370 $69,322  $71,886 $72,294 $283,872 $74,887
revenue
                                                                 
                                                                 
4. Hardware and other
revenue includes the                                               
following items (in
thousands):
                  2012                                                2013
                  1st Qtr   2nd Qtr    3rd Qtr   4th Qtr   Full Year  1st Qtr
                                                                 
Hardware revenue   $3,054  $5,740   $4,234  $5,242  $18,270  $4,175
Billed travel      2,470    3,160     3,557    3,425    12,612    3,294
Total hardware    $5,524  $8,900   $7,791  $8,667  $30,882  $7,469
and 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):
                                                                 
                  2012                                                2013
                  1st Qtr   2nd Qtr    3rd Qtr   4th Qtr   Full Year  1st Qtr
                                                                 
Revenue            $(136)  $(1,251) $(958)  $(128)  $(2,473) $(182)
Costs and expenses (848)    (2,067)   (1,845)  (422)    (5,182)   (541)
Operating income   712      816       887      294      2,709     359
Foreign currency
(losses) gains in  (370)    571       (564)    231      (132)     (179)
other income
                  $342    $1,387   $323    $525    $2,577   $180
                                                                 
                                                                 
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):
                                                                 
                  2012                                                2013
                  1st Qtr   2nd Qtr    3rd Qtr   4th Qtr   Full Year  1st Qtr
                                                                 
Operating income   $704    $1,193   $1,161  $348    $3,406   $440
Foreign currency
(losses) gains in  (144)    724       (500)    282      362       4
other income
Total impact of
changes in the     $560    $1,917   $661    $630    $3,768   $444
Indian Rupee
                                                                 
                                                                 
6. Other income (expense)
includes the following                                             
components (in thousands):
                                                                 
                  2012                                                2013
                  1st Qtr   2nd Qtr    3rd Qtr   4th Qtr   Full Year  1st Qtr
                                                                 
Interest income    $264    $228     $278    $292    $1,062   $326
Foreign currency   (370)    571       (564)    231      (132)     (179)
(losses) gains
Other
non-operating      (18)     3         39       11       35        4
(expense) income
Total other       $(124)  $802     $(247)  $534    $965     $151
(expense) income
                                                                 
                                                                 
7. Total equity-based compensation is
as follows (in thousands except per                                 
share amounts):
                                                                 
                  2012                                                2013
                  1st Qtr   2nd Qtr    3rd Qtr   4th Qtr   Full Year  1st Qtr
                                                                 
Stock options      $120    $140     $138    $223    $621     $148
Restricted stock   1,540    1,837     2,020    2,320    7,717     1,759
Total equity-based 1,660    1,977     2,158    2,543    8,338     1,907
compensation
Income tax         598      711       777      942      3,028     671
provision
Net income         $1,062  $1,266   $1,381  $1,601  $5,310   $1,236
Diluted earnings   $0.05   $0.06    $0.07   $0.08   $0.26    $0.06
per share
                                                                 
Diluted earnings
per share - stock  $0.00   $--     $--    $0.01   $0.02    $--
options
Diluted earnings
per share -        $0.05   $0.06    $0.07   $0.07   $0.24    $0.06
restricted stock
                                                                 
                                                                 
8. Capital
expenditures are                                                  
as follows (in
thousands):
                                                                 
                  2012                                                2013
                  1st Qtr   2nd Qtr    3rd Qtr   4th Qtr   Full Year  1st Qtr
                                                                 
Capital            $1,796  $1,454   $1,086  $3,537  $7,873   $598
expenditures
                                                                 
                                                                 
9. Stock
Repurchase                                                        
Activity (in
thousands):
                                                                 
                  2012                                                2013
                  1st Qtr   2nd Qtr    3rd Qtr   4th Qtr   Full Year  1st Qtr
                                                                 
Shares purchased
under              653      346       419      527      1,945     226
publicly-announced
buy-back program
Shares withheld
for taxes due upon 66       3         5        4        78        70
vesting of
restricted stock
Total shares       719      349       424      531      2,023     296
purchased
                                                                 
Total cash paid
for shares
purchased under    $30,647 $16,616  $21,202 $31,223 $99,688  $15,929
publicly-announced
buy-back program
Total cash paid
for shares
withheld for taxes 2,840    132       230      265      3,467     4,545
due upon vesting
of restricted
stock
Total cash paid
for shares         $33,487 $16,748  $21,432 $31,488 $103,155 $20,474
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