Manhattan Associates Reports Record First Quarter 2014 Results

Manhattan Associates Reports Record First Quarter 2014 Results

Company Raises Full-Year Revenue and EPS Guidance

ATLANTA, April 22, 2014 (GLOBE NEWSWIRE) -- Leading Supply Chain Commerce
Solutions provider Manhattan Associates, Inc. (Nasdaq:MANH) today reported
record non-GAAP adjusted diluted earnings per share for the first quarter
ended March 31, 2014 of $0.26 compared to $0.19 in Q1 2013, on license revenue
of $17.1 million and record total revenue of $113.6 million. GAAP diluted
earnings per share for Q1 2014 was $0.24 compared to $0.17 in Q1 2013.

"We're very pleased with our performance in the first quarter of 2014. Across
the board we executed well serving our customers, extending our supply chain
commerce market leadership position and delivering record financial
performance," said Eddie Capel, Manhattan Associates president and CEO. "In
the new omni-channel world of Supply Chain Commerce, we continue to experience
solid demand for our products and innovation. We will continue to strive to
enhance our market position and improve our financial results throughout 2014
and beyond."

FIRST QUARTER 2014 FINANCIAL SUMMARY:

  *Adjusted diluted earnings per share, a non-GAAP measure, was $0.26 in Q1
    2014, compared to $0.19 in Q1 2013.
  *GAAP diluted earnings per share was $0.24 in Q1 2014, compared to $0.17 in
    Q1 2013.
  *Consolidated total revenue was $113.6 million in Q1 2014, compared to
    $96.6 million in Q1 2013. License revenue was $17.1 million in Q1 2014,
    compared to $14.2 million in Q1 2013.
  *Adjusted operating income, a non-GAAP measure, was $32.3 million in Q1
    2014, compared to $21.6 million in Q1 2013.
  *GAAP operating income was $30 million in Q1 2014, compared to $19.7
    million in Q1 2013.
  *Cash flow from operations was $19.1 million in Q1 2014, compared to $20.1
    million in Q1 2013. Days Sales Outstanding was 53 days at March 31, 2014,
    compared to 61 days at December 31, 2013.
  *Cash and investments at March 31, 2014 was $125.9 million, compared to
    $133.0 million at December 31, 2013.
  *During the three months ended March 31, 2014, the Company repurchased
    694,547 shares of Manhattan Associates common stock under the share
    repurchase program authorized by the Board of Directors, for a total
    investment of $25.5 million. In April 2014, the Board of Directors
    approved raising the Company's share repurchase authority to an aggregate
    of $50.0 million of the Company's outstanding common stock.

SALES ACHIEVEMENTS:

  *Four contracts of $1.0 million or more in recognized license revenue
    during the first quarter of 2014.
  *Completing software license wins with new customers such as: DCG
    Fulfillment, Dunham's Sports, Express-1, Floor and Decor Outlets of
    America, Hastings Deering, ICA Sverige, Kapal Api, LifeShield, Norix
    Group, Ulta, Vente-Privee, and West Coast Distribution.
  *Expanding relationships with existing customers such as: The Apparel
    Group, Automotive Holdings Group (AHG), C&J Clark International Ltd.,
    Cabela's, Donaldson Europe BVBA, Federal-Mogul, GENCO Holdings, Genesco,
    The Harvard Drug Group, Jasco Products Company, Just Group, Knight
    Transportation, Movianto, Nassau Candy, Nordstrom, Northern Tool +
    Equipment, Ozburn-Hessey Logistics (OHL), Performance Team Freight
    Systems, Rhee Brothers, Samsung India Electronics, Simplehuman, Sodimac
    Colombia, Southeastern Freight Lines, Speed Global Services, Stella & Dot,
    and Thai Beverage Logistics.

2014 GUIDANCE

Manhattan Associates provides the following updated revenue and diluted
earnings per share guidance for the full year 2014:


                                        Guidance Range - 2014 Full Year
($'s in millions, except EPS)            $ Range            % Growth Range
                                                                  
Total revenue - current guidance         $460      $465     11%       12%
                                                                  
Total revenue - previous guidance        $450      $455     9%        10%
                                                                  
Diluted earnings per share (EPS):                                  
Adjusted EPS^(1) - current guidance      $1.06     $1.08    15%       17%
GAAP EPS - current guidance              $0.99     $1.01    15%       17%
                                                                  
Adjusted EPS^(1) - previous guidance     $1.01     $1.03    10%       12%
GAAP EPS - previous guidance             $0.94     $0.96    10%       12%
                                                                  
^(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 the close of business on
June 15, 2014, 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
2014 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 2014.

CONFERENCE CALL

The Company's conference call regarding its first quarter financial results
will be held today, April 22, 2014, at 4:30 p.m. Eastern Time. Investors are
invited to listen to a live webcast of the conference call through the
investor relations section of Manhattan Associates' website at www.manh.com.
To listen to the live webcast, please go to the website at least 15 minutes
before the call to download and install any necessary audio software.

For those who cannot listen to the live broadcast, a replay can be accessed
shortly after the call by dialing +1.800.585.8367 in the U.S. and Canada, or
+1.404.537.3406 outside the U.S., and entering the conference identification
number 13681816 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 2014 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

The Company provides adjusted operating income, adjusted net income and
adjusted diluted earnings per share in this press release as additional
information regarding the Company's 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, 2014.

Non-GAAP adjusted operating income, adjusted net income and adjusted diluted
earnings per share exclude the impact of equity-based compensation and
acquisition-related costs and the amortization thereof – all net of income tax
effects. Reconciliations of the Company's GAAP financial measures to non-GAAP
adjustments are included in the supplemental information attached to this
release.

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates brings companies closer to their customers. We design,
build and deliver market-leading Supply Chain Commerce Solutions that drive
top line growth by converging front-end sales with back-end supply chain
execution and efficiency. Our software, platform technology and unmatched
experience help our customers around the world adapt to the challenges of the
omni-channel marketplace. For more information, please visit www.manh.com.

This press release contains "forward-looking statements" relating to Manhattan
Associates, Inc.Forward-looking statements in this press release include the
information set forth under "2014 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, 2013. 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,
                                  2014           2013
                                  (unaudited)
Revenue:                                         
Software license                  $17,107      $14,245
Services                          86,913         74,887
Hardware and other                9,543          7,469
Total revenue                     113,563        96,601
Costs and expenses:                             
Cost of license                   1,613          1,778
Cost of services                  38,460         35,046
Cost of hardware and other        7,479          6,214
Research and development          11,803         11,476
Sales and marketing               12,020         11,434
General and administrative        10,649         9,508
Depreciation and amortization     1,488          1,484
Total costs and expenses          83,512         76,940
Operating income                   30,051        19,661
Other (loss) income, net           (233)         151
Income before income taxes         29,818         19,812
Income tax provision               11,106         6,457
Net income                         $18,712      $13,355
                                                
Basic earnings per share           $0.25        $0.17
Diluted earnings per share         $0.24        $0.17
                                                
Weighted average number of shares:               
Basic                              75,817        77,308
Diluted                            76,795        78,740
                                                

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Reconciliation of Selected GAAP to Non-GAAP Measures
(in thousands, except per share amounts)
                                                      
                                        Three Months Ended March 31,
                                        2014           2013
                                                      
Operating income                         $30,051      $19,661
Equity-based compensation (b)            2,274         1,907
Purchase amortization (c)                1             2
Adjusted operating income (Non-GAAP)     $32,326      $21,570
                                                      
                                                      
Income tax provision                     $11,106      $6,457
Equity-based compensation (b)            844           671
Purchase amortization (c)                --           1
Adjusted income tax provision (Non-GAAP) $11,950      $7,129
                                                      
                                                      
Net income                               $18,712      $13,355
Equity-based compensation (b)            1,430         1,236
Purchase amortization (c)                1             1
Adjusted net income (Non-GAAP)           $20,143      $14,592
                                                      
                                                      
Diluted EPS (a)                          $0.24        $0.17
Equity-based compensation (a,b)          0.02          0.02
Purchase amortization (a,c)              --           --
Adjusted diluted EPS (Non-GAAP) (a)      $0.26        $0.19
                                                      
Fully diluted shares                     76,795        78,740
                                                      

(a) On December 19, 2013, our Board of Directors approved a four-for-one stock
split of the Company's Common Stock, effected in the form of a stock dividend.
All references made to shares or per share amounts have been restated to
reflect the effect of this four-for-one stock split for all periods
presented.
(b) To be consistent with other companies in the software industry, we began
to 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 30, 2014 and 2013:

                               Three Months Ended March 31,
                               2014           2013
                                             
Cost of services                $370         $249
Research and development        417           298
Sales and marketing             310           512
General and administrative      1,177         848
Total equity-based compensation $2,274       $1,907

(c) 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, 2014 December 31, 2013
                                             (unaudited)    
ASSETS                                                      
Current Assets:                                             
Cash and cash equivalents                     $116,649     $124,375
Short term investments                        9,285         8,581
Accounts receivable, net of allowance of
$3,844 and $3,156 in 2014 and 2013,           66,779        71,136
respectively
Deferred income taxes                         7,321         7,300
Prepaid expenses and other current assets     10,571        7,346
Total current assets                         210,605       218,738
                                                           
Property and equipment, net                   14,108        14,342
Goodwill, net                                 62,272        62,272
Deferred income taxes                         438           427
Other assets                                  3,321         2,049
Total assets                                 $290,744     $297,828
                                                           
                                                           
LIABILITIES AND SHAREHOLDERS' EQUITY                        
                                                           
Current liabilities:                                        
Accounts payable                              $8,281       $11,555
Accrued compensation and benefits             17,661        19,465
Accrued and other liabilities                 12,092        12,225
Deferred revenue                              59,449        53,812
Income taxes payable                          2,446         7,131
Total current liabilities                    99,929        104,188
                                                           
Other non-current liabilities                 13,125        12,054
                                                           
Shareholders' equity:                                       
Preferred stock, no par value; 20,000,000
shares authorized, no shares issued or        --           --
outstanding in 2014 and 2013
Common stock, $.01 par value; 100,000,000
shares authorized; 75,831,405 and 76,374,180  758           764
shares issued and outstanding atMarch 31,
2014 and December 31, 2013, respectively
Retained earnings                             183,695       188,604
Accumulated other comprehensive loss          (6,763)       (7,782)
Total shareholders' equity                   177,690       181,586
Total liabilities and shareholders' equity   $290,744     $297,828
                                                           
                                                           

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
                                                               
                                                 Three Months Ended March 31,
                                                 2014           2013
                                                 (unaudited)
Operating activities:                                           
Net income                                        $18,712      $13,355
Adjustments to reconcile net income to net cash                 
provided by operating activities:
Depreciation and amortization                     1,488         1,484
Equity-based compensation                         2,274         1,907
(Gain) loss on disposal of equipment             (17)          1
Tax benefit of stock awards exercised/vested     6,547         4,206
Excess tax benefits from equity-based             (6,509)       (4,163)
compensation
Deferred income taxes                             1,302         1,682
Unrealized foreign currency loss (gain)           90            (75)
Changes in operating assets and liabilities:                    
Accounts receivable, net                          4,496         2,255
Other assets                                      (4,447)       (594)
Accounts payable, accrued and other liabilities   (5,638)       (6,652)
Income taxes                                      (4,647)       (3,720)
Deferred revenue                                  5,493         10,414
Net cash provided by operating activities         19,144        20,100
                                                               
Investing activities:                                           
Purchase of property and equipment                (1,156)       (598)
Net purchases of investments                     (427)         (1,115)
Net cash used in investing activities             (1,583)       (1,713)
                                                               
Financing activities:                                           
Purchase of common stock                          (33,179)      (20,474)
Proceeds from issuance of common stock from       730           2,623
options exercised
Excess tax benefits from equity-based             6,509         4,163
compensation
Net cash used in financing activities             (25,940)      (13,688)
                                                               
Foreign currency impact on cash                   653           (343)
                                                               
Net change in cash and cash equivalents           (7,726)       4,356
Cash and cash equivalents at beginning of period  124,375       96,737
Cash and cash equivalents at end of period        $116,649     $101,093
                                                               

MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION
                                                                   
                                                                   
1. GAAP and Adjusted earnings per share by quarter are as follows:
                                                                   
On December 19, 2013, our Board of Directors approved a four-for-one stock split of
the Company's Common Stock, effected in the form of a stock dividend. All
references made to shares or per share amounts have been restated to reflect the
effect of this four-for-one stock split for all periods presented.
                                                                   
                                                                   
                  2013                                                  2014
                  1st Qtr   2nd Qtr    3rd Qtr    4th Qtr    Full Year  1st Qtr
GAAP Diluted EPS   $0.17   $0.22    $0.25    $0.22    $0.86    $0.24
Adjustments to                                                      
GAAP:
Equity-based      0.02     0.02      0.01      0.02      0.06      0.02
compensation
Purchase          --      --       --       --       --       --
amortization
Adjusted Diluted   $0.19   $0.24    $0.26    $0.24    $0.92    $0.26
EPS
Fully Diluted      78,740   78,036    77,552    77,256    77,932    76,795
Shares
                                                                   
                                                                   
2. Revenues and operating income by reportable segment are as follows (in
thousands):
                                                                   
                  2013                                                  2014
                  1st Qtr   2nd Qtr    3rd Qtr    4th Qtr    Full Year  1st Qtr
Revenue:                                                            
Americas           $79,820 $83,600  $87,977  $86,947  $338,344 $91,355
EMEA               11,431   11,964    12,686    14,333    50,414    15,679
APAC               5,350    6,952     7,139     6,319     25,760    6,529
                  $96,601 $102,516 $107,802 $107,599 $414,518 $113,563
                                                                   
GAAP Operating                                                      
Income:
Americas           $16,964 $21,256  $25,613  $19,618  $83,451  $24,133
EMEA               1,753    2,736     2,633     3,166     10,288    4,058
APAC               944      2,195     2,526     1,883     7,548     1,860
                  $19,661 $26,187  $30,772  $24,667  $101,287 $30,051
                                                                   
Adjustments                                                         
(pre-tax):
Americas:                                                           
Equity-based      $1,907  $2,133   $1,209   $2,076   $7,325   $2,274
compensation
Purchase          2        1         2         1         6         1
amortization
                  $1,909  $2,134   $1,211   $2,077   $7,331   $2,275
                                                                   
                                                                   
Adjusted non-GAAP                                                   
Operating Income:
Americas           $18,873 $23,390  $26,824  $21,695  $90,782  $26,408
EMEA               1,753    2,736     2,633     3,166     10,288    4,058
APAC               944      2,195     2,526     1,883     7,548     1,860
                  $21,570 $28,321  $31,983  $26,744  $108,618 $32,326
                                                                   
                                                                   
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):
                                                                   
                  2013                                                  2014
                  1st Qtr   2nd Qtr    3rd Qtr    4th Qtr    Full Year  1st Qtr
Professional       $49,151 $52,492  $57,690  $51,490  $210,823 $59,422
services
Customer support
and software       25,736   25,711    27,335    26,296    105,078   27,491
enhancements
Total services     $74,887 $78,203  $85,025  $77,786  $315,901 $86,913
revenue
                                                                   
                                                                   
4. Hardware and other revenue includes the following items (in thousands):
                  2013                                                  2014
                  1st Qtr   2nd Qtr    3rd Qtr    4th Qtr    Full Year  1st Qtr
                                                                   
Hardware revenue   $4,175  $4,285   $3,904   $8,557   $20,921  $5,946
Billed travel      3,294    3,892     4,105     3,989     15,280    3,597
Total hardware    $7,469  $8,177   $8,009   $12,546  $36,201  $9,543
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):
                                                                   
                  2013                                                  2014
                  1st Qtr   2nd Qtr    3rd Qtr    4th Qtr    Full Year  1st Qtr
                                                                   
Revenue            $(182)  $(150)   $(329)   $(63)    $(724)   $202
Costs and expenses (541)    (262)     (877)     (902)     (2,582)   713
Operating income   359      112       548       839       1,858     915
Foreign currency
(losses) gains in  (179)    972       313       (445)     661       (516)
other income
                  $180    $1,084   $861     $394     $2,519   $399
                                                                   
                                                                   
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):
                  2013                                                  2014
                  1st Qtr   2nd Qtr    3rd Qtr    4th Qtr    YTD        1st Qtr
                                                                   
Operating income   $440    $173     $733     $900     $2,246   $898
Foreign currency
(losses) gains in  4        931       204       3         1,142     (141)
other income
Total impact of
changes in the     $444    $1,104   $937     $903     $3,388   $757
Indian Rupee
                                                                   
                                                                   
6. Other (loss) income includes the following components (in thousands):
                                                                   
                  2013                                                  2014
                  1st Qtr   2nd Qtr    3rd Qtr    4th Qtr    Full Year  1st Qtr
                                                                   
Interest income    $326    $271     $263     $307     $1,167   $267
Foreign currency   (179)    972       313       (445)     661       (516)
(losses) gains
Other
non-operating      4        --        (30)      20        (6)       16
(expense) income
Total other       $151    $1,243   $546     $(118)   $1,822   $(233)
(loss) income
                                                                   
                                                                   
7. Total equity-based compensation is as follows (in thousands except per share
amounts):
                                                                   
                  2013                                                  2014
                  1st Qtr   2nd Qtr    3rd Qtr    4th Qtr    Full Year  1st Qtr
                                                                   
Stock options      $148    $11      $11      $20      $190     $--
Restricted stock   1,759    2,122     1,198     2,056     7,135     2,274
Total equity-based 1,907    2,133     1,209     2,076     7,325     2,274
compensation
Income tax         671      751       451       729       2,602     844
provision
Net income         $1,236  $1,382   $758     $1,347   $4,723   $1,430
Diluted earnings   $0.02   $0.02    $0.01    $0.02    $0.06    $0.02
per share
                                                                   
Diluted earnings
per share - stock  $0.00   $0.00    $0.00    $0.00    $0.00    $--
options
Diluted earnings
per share -        $0.01   $0.02    $0.01    $0.02    $0.06    $0.02
restricted stock
                                                                   
                                                                   
8. Capital expenditures are as follows (in thousands):
                                                                   
                  2013                                                  2014
                  1st Qtr   2nd Qtr    3rd Qtr    4th Qtr    Full Year  1st Qtr
                                                                   
Capital            $598    $1,035   $1,568   $1,539   $4,740   $1,156
expenditures
                                                                   
                                                                   
9. Stock Repurchase Activity (in thousands):
                                                                   
                  2013                                                  2014
                  1st Qtr   2nd Qtr    3rd Qtr    4th Qtr    Full Year  1st Qtr
                                                                   
Shares purchased
under              903      785       607       537       2,832     695
publicly-announced
buy-back program
Shares withheld
for taxes due upon 281      1         13        5         300       235
vesting of
restricted stock
Total shares       1,184    786       620       542       3,132     930
purchased
                                                                   
Total cash paid
for shares
purchased under    $15,929 $14,409  $13,533  $15,332  $59,203  $25,459
publicly-announced
buy-back program
Total cash paid
for shares
withheld for taxes 4,545    19        280       152       4,996     7,720
due upon vesting
of restricted
stock
Total cash paid
for shares         $20,474 $14,428  $13,813  $15,484  $64,199  $33,179
repurchased
                                                                   

CONTACT: Dennis Story
         Chief Financial Officer
         Manhattan Associates, Inc.
         770-955-7070
         dstory@manh.com
        
         Cameron Smith
         Director, Corporate Communications
         Manhattan Associates, Inc.
         678-597-6841
         camsmith@manh.com
 
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