ATLANTA, Feb. 5, 2008 (PRIME NEWSWIRE) -- Leading supply chain optimization provider Manhattan Associates, Inc. (Nasdaq:MANH), today reported record fourth quarter 2007 and full year 2007 revenue and earnings. Manhattan Associates' fourth quarter GAAP diluted earnings per share were $0.33, a 94% increase over the fourth quarter of 2006 on revenue of $85.0 million, a 12% increase. On a non-GAAP basis, adjusted diluted earnings per share were $0.37, a 19% increase over the fourth quarter of 2006.
FOURTH QUARTER FINANCIAL HIGHLIGHTS:
Summarized highlights of the 2007 fourth quarter results, as compared to the 2006 fourth quarter, follow:
* Consolidated revenue increased 12% to $85.0 million. Excluding
the impact of currency changes, revenue increased 10%.
-- License revenue totaled $18.6 million, a 2% decrease.
-- Services revenue totaled $57.1 million, increasing 14%.
* GAAP Operating income increased 38% to $11.5 million. Excluding
the impact of currency changes, GAAP operating income
increased 46%;
* Operating income, on a non-GAAP basis, increased 1% to
$13.3 million. Excluding the impact of currency changes,
operating income on a non-GAAP basis increased 6%.
* GAAP diluted earnings per share increased 94% to $0.33.
* Adjusted diluted earnings per share increased 19% to $0.37
per share.
* Cash Flow from Operations was $15.7 million, a record fourth
quarter, with Days Sales Outstanding of 79 days.
* Cash and Investments on Hand at December 31, 2007 was $72.8
million.
* The Company repurchased 896,060 common shares totaling
$25 million at an average share price of $27.90 in the quarter.
The Company has $25 million of remaining share repurchase
authority.
FULL YEAR FINANCIAL HIGHLIGHTS:
Summarized highlights of the full year 2007, as compared to the full year of 2006, follow:
* Consolidated revenue increased 17% to $337.4 million.
Excluding the impact of currency changes, revenue increased
15%.
-- License revenue was $73.0 million, a 10% increase.
-- Services revenue totaled $226.2 million, increasing 16%.
* GAAP operating income increased 40% to $43.1 million.
Excluding the impact of currency changes, GAAP operating
income increased 45%.
* On a non-GAAP basis, operating income increased 12% to
$50.5 million. Excluding the impact of currency changes
operating income on a non-GAAP basis increased 15%.
* GAAP diluted earnings per share increased 64% to $1.13.
* Adjusted diluted earnings per share, on a non-GAAP basis,
increased 20% to $1.30.
* The Company repurchased 3.6 million common shares totaling
$100 million at an average share price of $28.05.
"The fourth quarter of 2007 closes the most successful year in the history of the company and marks our 13th consecutive quarter of double digit revenue growth," said Pete Sinisgalli, president and CEO. "As important, during 2007 we significantly strengthened the company and improved our market position. We expect to continue to enhance our market position and improve our financial results throughout 2008."
Significant sales-related achievements during the quarter include:
* New customers such as Alternativa Sinitsi, Anna's Linens, B&R Enclosures Pty Ltd, Brozex, CSS Industries, Inc., Gainey Transportation Services, Inc., J. Knipper Company, Inc., Metersbonwe, Olgerdin Egil Skallagrimsson ehf, Orchard Supply Hardware LLC, Promotech Research Associates, Inc., Shanghai Metersbonwe Fashion & Accessories Co., Ltd., SPAR Retail, Tiendas Chedraui SA de CV, Washington Metro Area Transit Authority, Whirlpool Corporation, and Vitamin Shoppe Industries, Inc. * Expanding partnerships with existing customers such as Aaron Rents, Inc., ABX Logistics, American Eagle Outfitters, Inc., Belk, Inc., Casual Male Retail Group, Inc., Conair Corporation, Converse, Inc., DHL Exel Supply Chain, Dick's Sporting Goods, Inc., Electronics for Imaging, Elektra del Milenio SA de CV, ElektroKompectService, Fiskars Brands, Inc., GoldToeMoretz LLC, Hospira, Inc., IP Budin, John Paul Mitchell Systems, Jones Apparel Group, Inc., Kohl & Frisch, Ltd., Liberty Hardware Mfg. Corp., Matahari, McKesson Canada Corporation, NYK Logistics, Nestle Nespresso, Production Tool Supply Company, PT Mataharii Putra Prima, Safeway, Inc., Shenzheng Easttop Trade & Logistics, Teters Floral Products, Inc., Teva Pharmaceuticals USA, Inc., TNT Fashion Logistics BV and VWR International LLC. * Closing three large contracts, each of which generated $1 million or more in recognized license revenue.
2008 GUIDANCE
Manhattan Associates provided the following diluted earnings per share guidance for the first quarter and full year 2008. The GAAP diluted earnings per share includes the impact of stock options expense under SFAS 123(R). A full reconciliation of GAAP to non-GAAP diluted earnings per share is included in the supplemental attachments to this release.
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Fully Diluted EPS
-------------------------------------
Per Share range % Growth range
----------------- --------------
GAAP Earnings Per Share
--------------------------
Q1 2008 - diluted earnings
per share $0.17 $0.23 -11% 21%
Full year 2008 - diluted
earnings per share $1.26 $1.32 12% 17%
Adjusted Earnings Per Share
---------------------------
Q1 2008 - diluted earnings
per share $0.22 $0.28 -4% 22%
Full year 2008 - diluted
earnings per share $1.47 $1.53 13% 18%
---------------------------------------------------------------------
Manhattan Associates currently intends to publish, in each quarterly earnings release, certain expectations with respect to future financial performance. These statements are forward-looking. Actual results may differ materially, especially in the current uncertain economic environment. These statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of this release.
Manhattan Associates will make its earnings release and published expectations available on its Web site (www.manh.com). Beginning March 15, 2008, 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 2008 Guidance section as still 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 the date when Manhattan Associates' next quarterly earnings release is published, currently scheduled for the fourth week of April 2008.
CONFERENCE CALL
The Company's conference call regarding its fourth quarter and year end financial results will be held at 4:30 p.m. Eastern Time on Tuesday, February 5, 2008 after the market closes. Investors are invited to listen to a live Web cast of the conference call through the investor relations section of Manhattan Associates' Web site. To listen to the live Web cast, please go to the Web site 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 will be available shortly after the call by dialing +1.800.642.1687 in the U.S. or Canada and +1.706.645.9291 outside the U.S., and entering the conference identification number 16923337, or via the Web at www.manh.com. The phone replay will be available for two weeks after the call, and the Internet broadcast will be archived at Manhattan Associates' Web site.
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 for -- 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 our historical operating trends, because it provides important supplemental measurement information in evaluating the operating results of our business, as distinct from results that include items that are not indicative of ongoing operating results. We consequently believe that the presentation of these non-GAAP financial measures provides investors with useful insight into our profitability exclusive of non-GAAP adjustments. This release should be read in conjunction with our Form 8-K earnings release filing for the quarter ended December 31, 2007.
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, the recapture of previously recognized sales tax expense, and stock option expense under SFAS 123(R), the severance, settlement charges and asset impairment charges recorded in the same period, all net of income tax effects. A reconciliation of our GAAP financial measures to non-GAAP adjustments is included in the supplemental attachment to this release.
About Manhattan Associates, Inc.
Manhattan Associates continues to deliver on its 17 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. Manhattan SCOPE (Supply Chain Optimization from Planning to Execution) is a portfolio of software solutions and technology that helps organizations optimize their supply chains from planning through execution. SCOPE's Supply Chain Process Platform provides the foundation for five Supply Chain Solution Suites: Planning and Forecasting, Inventory Optimization, Order Lifecycle Management, Transportation Lifecycle Management and Distribution Management. Visibility, Event Management and Supply Chain Intelligence Platform Applications inform all Solution Suites, while X-Suite Solutions combine solutions or their components to address specific supply chain challenges. For more information, please visit www.manh.com.
This press release may contain "forward-looking statements" relating to Manhattan Associates, Inc. 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 delays in product development, undetected software errors, competitive pressures, technical difficulties, market acceptance, availability of technical personnel, changes in customer requirements, risks of international operations and general economic conditions. Additional risk factors are set forth in Item 1A. of the Company's Annual Report on Form 10-K for the year ended December 31, 2006. 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
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2007 2006 2007 2006
-------- -------- -------- --------
Revenue:
License $ 18,577 $ 19,003 $ 73,031 $ 66,543
Services 57,053 49,879 226,153 194,521
Hardware and other 9,363 6,988 38,217 27,804
-------- -------- -------- --------
Total Revenue 84,993 75,870 337,401 288,868
Costs and Expenses:
Cost of license 1,289 1,386 5,334 5,796
Cost of services 28,127 23,519 109,758 93,427
Cost of hardware
and other 7,757 6,187 32,268 24,515
Research and
development 11,278 11,070 46,594 41,468
Sales and marketing 13,229 11,870 53,406 45,888
General and
administrative 8,440 7,280 33,366 29,143
Depreciation and
amortization 3,356 3,333 13,617 13,247
Settlement Charges -- 2,856 -- 2,856
Asset impairment
charge -- -- -- 270
Acquisition-related
charges -- -- -- 1,503
-------- -------- -------- --------
Total costs and
expenses 73,476 67,501 294,343 258,113
-------- -------- -------- --------
Operating income 11,517 8,369 43,058 30,755
Other income, net 1,599 911 4,608 3,638
-------- -------- -------- --------
Income before income
taxes 13,116 9,280 47,666 34,393
Income tax provision 4,662 4,466 16,915 15,062
-------- -------- -------- --------
Net income $ 8,454 $ 4,814 $ 30,751 $ 19,331
======== ======== ======== ========
Basic earnings
per share $ 0.34 $ 0.18 $ 1.17 $ 0.71
Diluted earnings
per share $ 0.33 $ 0.17 $ 1.13 $ 0.69
Weighted average
number of shares:
Basic 25,066 27,290 26,174 27,183
Diluted 25,983 28,642 27,329 27,971
MANHATTAN ASSOCIATES, INC AND SUBSIDIARIES
RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------
2007 2006 2007 2006
-------- -------- -------- --------
Operating
income $ 11,517 $ 8,369 $ 43,058 $ 30,755
Stock option
expense 799 (a) 1,192 (a) 4,274 (a) 6,643 (a)
Purchase
amortization 1,083 (b) 1,217 (b) 4,653 (b) 4,868 (b)
Settlement
charges -- 2,856 (c) -- 2,856 (c)
Acquisition-
related
charges -- -- -- 1,503 (d)
Asset
impairment
charge -- -- -- 270 (e)
Sales tax
recoveries (146)(f) (514)(f) (1,438)(d) (1,570)(f)
-------- -------- -------- --------
Adjusted
operating
income
(Non-GAAP) $ 13,253 $ 13,120 $ 50,547 $ 45,325
-------- -------- -------- --------
Income tax
provision $ 4,662 $ 4,466 $ 16,915 $ 15,062
Stock option
expense 283 (a) 201 (a) 1,517 (a) 1,373 (a)
Purchase
amortization 385 (b) 469 (b) 1,652 (b) 1,874 (b)
Settlement
charges -- 312 (c) -- 312 (c)
Acquisition-
related
charges -- -- -- 579 (d)
Asset
impairment
charge -- -- -- 104 (e)
Sales tax
recoveries (51)(f) (198)(f) (510)(f) (605)(f)
-------- -------- -------- --------
Adjusted
income tax
provision
(Non-GAAP) $ 5,279 $ 5,250 $ 19,574 $ 18,699
-------- -------- -------- --------
Net income $ 8,454 $ 4,814 $ 30,751 $ 19,331
Stock option
expense 516 (a) 991 (a) 2,757 (a) 5,270 (a)
Purchase
amortization 698 (b) 748 (b) 3,001 (b) 2,994 (b)
Settlement
charges -- 2,544 (c) -- 2,544 (c)
Acquisition-
related
charges -- -- -- 924 (d)
Asset
impairment
charge -- -- -- 166 (e)
Sales tax
recoveries (95)(f) (316)(f) (928)(f) (965)(f)
-------- -------- -------- --------
Adjusted Net
income
(Non-GAAP) $ 9,573 $ 8,781 $ 35,581 $ 30,264
-------- -------- -------- --------
Diluted EPS $ 0.33 $ 0.17 $ 1.13 $ 0.69
Stock option
expense $ 0.02 (a) $ 0.03 (a) $ 0.10 (a) $ 0.19 (a)
Purchase
amortization $ 0.03 (b) $ 0.03 (b) $ 0.11 (b) $ 0.11 (b)
Settlement
charges $ -- $ 0.09 (c) $ -- $ 0.09 (c)
Acquisition-
related
charges $ -- $ -- $ -- $ 0.03 (d)
Asset
impairment
charge $ -- $ -- $ -- $ 0.01 (e)
Sales tax
recoveries $ -- (f) $ (0.01)(f) $ (0.03)(f) $ (0.03)(f)
-------- -------- -------- --------
Adjusted
Diluted EPS
(Non-GAAP) $ 0.37 $ 0.31 $ 1.30 $ 1.08
-------- -------- -------- --------
Fully Diluted
Shares 25,983 28,642 27,329 27,971
(a) SFAS 123(R) requires us to expense stock options issued to
employees. Because stock option expense is determined in
significant part by the trading price of our common stock and the
volatility thereof, over which we have no direct control, the
impact of such expense is not subject to effective management
by us. Thus, we have excluded the impact of this expense from
adjusted non-GAAP results. The stock option expense is
included in the following GAAP operating expense lines for the
three and twelve months ended December 31, 2007 and 2006:
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------
2007 2006 2007 2006
-------- -------- -------- --------
Cost of
services $ 22 $ (45) $ 343 $ 1,564
Research and
development 171 349 645 1,086
Sales and
marketing 266 379 1,381 1,493
General and
administrative 340 509 1,905 2,500
-------- -------- -------- --------
Total stock
option expense $ 799 $ 1,192 $ 4,274 $ 6,643
======== ======== ======== ========
(b) Adjustments represent purchase 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) The amount for 4th quarter 2006 includes legal settlements of
$2.9 million pretax ($2.5 million after-tax or $ 09 diluted EPS)
resulting from legal disputes over the implementation of our
software. We do not believe that these are common costs that
result from normal operating activities.
(d) In conjunction with the Evant acquisition, we paid $2.8 million
into escrow for employee retention bonuses to be paid upon
completion of up to 12 months of service with us. During 2006, we
completed the Evant retention bonus program and paid out the
final bonuses. The 2006 adjustment represents the current period
expense associated with these retention bonuses. We have excluded
these costs because they do not correlate to the expenses of our
core operations.
(e) During 2006, we recorded an impairment charge of $270 against a
$2.0 million investment in a technology company. We made our
original investment in 2003. Because of the value of the
investment is beyond our control and does not relate to our core
operations, we have excluded the asset impairment from adjusted
non-GAAP results.
(f) Adjustment represents recoveries of previously expensed sales tax
resulting primarily from the expiration of the sales tax audit
statutes in certain states. Because we have recognized the full
potential amount of the sales tax expense in prior periods, any
recovery of that expense resulting from the expiration of the
statutes or the collection of tax from our customers would
overstate the current period net income derived from our core
operations as the recovery is not a result of any event occurring
within our control during the current period. Thus, we have
excluded these recoveries from adjusted non-GAAP results.
MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
December 31, December 31,
2007 2006
--------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 44,675 $ 18,449
Short term investments 17,904 90,570
Accounts receivable, net of a $6,618
and $4,901 allowance for doubtful
accounts in 2007 and 2006,
respectively 72,534 60,937
Deferred income taxes 6,602 5,208
Prepaid expenses and other current
assets 8,646 11,939
--------- ---------
Total current assets 150,361 187,103
Property and equipment, net 24,421 15,850
Long-term investments 10,193 22,038
Acquisition-related intangible
assets, net 9,691 14,344
Goodwill, net 62,285 70,361
Deferred income taxes 9,846 481
Other assets 4,863 4,716
--------- ---------
Total assets $ 271,660 $ 314,893
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,112 $ 11,716
Accrued compensation and
benefits 19,357 16,560
Accrued and other liabilities 10,040 13,872
Deferred revenue 31,817 29,918
Income taxes payable 8,156 4,006
--------- --------
Total current liabilities 78,482 76,072
Other non-current liabilities 7,473 1,681
Shareholders' equity:
Preferred stock, no par value;
20,000,000 shares authorized, no
shares issued or outstanding in
2007 or 2006 -- --
Common stock, $ .01 par value;
100,000,000 shares authorized;
24,899,919 and 27,610,105 shares
issued and outstanding at December
31, 2007 and December 31, 2006,
respectively 249 276
Additional paid-in capital 17,744 98,704
Retained earnings 165,189 136,321
Accumulated other comprehensive
income 2,523 1,839
--------- ---------
Total shareholders' equity 185,705 237,140
--------- ---------
Total liabilities and shareholders'
equity $ 271,660 $ 314,893
========= =========
MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended
December 31,
--------------------------
2007 2006
--------- ---------
Operating activities:
Net income $ 30,751 $ 19,331
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 13,617 13,247
Asset impairment charge -- 270
Stock compensation 6,199 6,762
Loss on disposal of equipment 12 22
Tax benefit of options exercised 1,835 4,546
Excess tax benefits from stock
based compensation (721) (2,519)
Deferred income taxes (2,759) (574)
Unrealized foreign currency gain (1,419) (317)
Changes in operating assets
and liabilities:
Accounts receivable, net (10,618) (1,617)
Other assets 3,451 (3,483)
Prepaid retention bonus -- 1,599
Accounts payable, accrued
and other liabilities (5,339) 3,814
Income taxes 1,528 367
Deferred revenue 1,737 2,672
--------- ---------
Net cash provided by
operating activities 38,274 44,120
--------- ---------
Investing activities:
Purchase of property
and equipment (9,401) (9,641)
Net maturities
(purchases) of
investments 84,517 (38,133)
Payments in connection with
various acquisitions -- (126)
--------- ---------
Net cash provided by (used
in) investing activities 75,116 (47,900)
--------- ---------
Financing activities:
Payment of capital lease
obligations -- (147)
Purchase of common stock (99,931) (16,029)
Excess tax benefits from
stock based compensation 721 2,519
Proceeds from issuance of
common stock from options
exercised 10,910 16,156
--------- ---------
Net cash (used in) provided
by financing activities (88,300) 2,499
--------- ---------
--------- ---------
Foreign currency impact on cash 1,136 311
--------- ---------
Net change in cash and cash
equivalents 26,226 (970)
Cash and cash equivalents
at beginning of period 18,449 19,419
--------- ---------
Cash and cash equivalents at
end of period $ 44,675 $ 18,449
========= =========
Supplemental disclosures of cash
flow information- noncash
investing activity:
Tenant improvements
funded by landlord $ 7,918 $ --
--------- ---------
MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION
1. GAAP and Adjusted Earnings per share by quarter are as follows:
2006
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
GAAP Diluted EPS $ 0.08 $ 0.25 $ 0.19 $ 0.17
Adjustments to GAAP:
Stock option expense $ 0.04 $ 0.06 $ 0.05 $ 0.03
Purchase amortization $ 0.03 $ 0.03 $ 0.03 $ 0.03
Acquisition related
charges $ 0.02 $ 0.01 $ -- $ --
Settlement charges $ -- $ -- $ -- $ 0.09
Asset impairment
charge $ -- $ -- $ 0.01 $ --
Sales tax recoveries $ (0.01) $ (0.01) $ (0.01) $ (0.01)
-------- -------- -------- --------
Adjusted Diluted EPS $ 0.16 $ 0.34 $ 0.27 $ 0.31
======== ======== ======== ========
2007
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
GAAP Diluted EPS $ 0.19 $ 0.32 $ 0.29 $ 0.33
Adjustments to GAAP:
Stock option expense $ 0.03 $ 0.03 $ 0.03 $ 0.02
Purchase amortization $ 0.03 $ 0.03 $ 0.03 $ 0.03
Acquisition related
charges $ -- $ -- $ -- $ --
Settlement charges $ -- $ -- $ -- $ --
Asset impairment
charge $ -- $ -- $ -- $ --
Sales tax recoveries $ (0.01) $ (0.02) $ (0.01) $ --
-------- -------- -------- --------
Adjusted Diluted EPS $ 0.23 $ 0.36 $ 0.34 $ 0.37
======== ======== ======== ========
2006 2007
-------- --------
YTD YTD
-------- --------
GAAP Diluted EPS $ 0.69 $ 1.13
Adjustments to GAAP:
Stock option expense $ 0.19 $ 0.10
Purchase amortization $ 0.11 $ 0.11
Acquisition related charges $ 0.03 $ --
Settlement charges $ 0.09 $ --
Asset impairment charge $ 0.01 $ --
Sales tax recoveries $ (0.03) $ (0.03)
-------- --------
Adjusted Diluted EPS $ 1.08 $ 1.30
======== ========
2. Revenues and operating income (loss) by reportable segment are as
follows (in thousands):
2006
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Revenue:
Americas $ 51,143 $ 65,695 $ 60,799 $ 64,683
EMEA 6,952 6,850 6,478 7,071
Asia Pacific 4,690 5,356 5,035 4,116
-------- -------- -------- --------
$ 62,785 $ 77,901 $ 72,312 $ 75,870
======== ======== ======== ========
GAAP Operating
Income (Loss):
Americas $ 2,467 $ 10,095 $ 9,131 $ 11,054
EMEA 245 3 (839) (2,226)
Asia Pacific 401 739 144 (459)
-------- -------- -------- --------
$ 3,113 $ 10,837 $ 8,436 $ 8,369
======== ======== ======== ========
Adjustments (pre-tax)
Americas:
Stock option expense $ 1,558 $ 1,819 $ 1,700 $ 1,177
Purchase amortization 1,217 1,217 1,217 1,217
Acquisition related
charges 722 607 174 --
Settlement charges -- -- -- 810
Asset impairment
charge -- -- 270 --
Sales tax recoveries (267) (465) (324) (514)
-------- -------- -------- --------
$ 3,230 $ 3,178 $ 3,037 $ 2,690
======== ======== ======== ========
EMEA:
Stock option expense $ 118 $ 125 $ 131 $ 15
Settlement charges -- -- -- 2,046
-------- -------- -------- --------
$ 118 $ 125 $ 131 $ 2,061
-------- -------- -------- --------
Total Adjustments $ 3,348 $ 3,303 $ 3,168 $ 4,751
======== ======== ======== ========
Adjusted non-GAAP
Operating Income (Loss):
Americas $ 5,697 $ 13,273 $ 12,168 $ 13,744
EMEA 363 128 (708) (165)
Asia Pacific 401 739 144 (459)
-------- -------- -------- --------
$ 6,461 $ 14,140 $ 11,604 $ 13,120
======== ======== ======== ========
2007
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Revenue:
Americas $ 68,446 $ 75,599 $ 69,850 $ 70,427
EMEA 5,844 9,809 10,463 10,733
Asia Pacific 3,900 4,221 4,276 3,833
-------- -------- -------- --------
$ 78,190 $ 89,629 $ 84,589 $ 84,993
======== ======== ======== ========
GAAP Operating
Income (Loss):
Americas $ 8,734 $ 12,338 $ 8,894 $ 10,334
EMEA (1,321) 1,145 1,432 1,166
Asia Pacific (131) 189 261 17
-------- -------- -------- --------
$ 7,282 $ 13,672 $ 10,587 $ 11,517
======== ======== ======== ========
Adjustments (pre-tax)
Americas:
Stock option expense $ 1,082 $ 1,090 $ 1,184 $ 816
Purchase amortization 1,195 1,195 1,180 1,083
Acquisition related
charges -- -- -- --
Settlement charges -- -- -- --
Asset impairment
charge -- -- -- --
Sales tax recoveries (373) (650) (269) (146)
-------- -------- -------- --------
$ 1,904 $ 1,635 $ 2,095 $ 1,753
-------- -------- -------- --------
EMEA:
Stock option expense $ 39 $ 40 $ 40 $ (17)
Settlement charges -- -- -- --
-------- -------- -------- --------
$ 39 $ 40 $ 40 $ (17)
-------- -------- -------- --------
Total Adjustments $ 1,943 $ 1,675 $ 2,135 $ 1,736
======== ======== ======== ========
Adjusted non-GAAP
Operating Income (Loss):
Americas $ 10,638 $ 13,973 $ 10,989 $ 12,087
EMEA (1,282) 1,185 1,472 1,149
Asia Pacific (131) 189 261 17
-------- -------- -------- --------
$ 9,225 $ 15,347 $ 12,722 $ 13,253
======== ======== ======== ========
2006 2007
-------- --------
YTD YTD
-------- --------
Revenue:
Americas $242,320 $284,322
EMEA 27,351 36,849
Asia Pacific 19,197 16,230
-------- --------
$288,868 $337,401
======== ========
GAAP Operating Income (Loss):
Americas $ 32,747 $ 40,300
EMEA (2,817) 2,422
Asia Pacific 825 336
-------- --------
$ 30,755 $ 43,058
======== ========
Adjustments (pre-tax)
Americas:
Stock option expense $ 6,254 $ 4,172
Purchase amortization 4,868 4,653
Acquisition related charges 1,503 --
Settlement charges 810 --
Asset impairment charge 270 --
Sales tax recoveries (1,570) (1,438)
-------- --------
$ 12,135 $ 7,387
-------- --------
EMEA:
Stock option expense $ 389 $ 102
Write off of receivable and settlement charges 2,046 --
-------- --------
$ 2,435 $ 102
-------- --------
Total Adjustments $ 14,570 $ 7,489
======== ========
Adjusted non-GAAP Operating Income (Loss):
Americas $ 44,882 $ 47,687
EMEA (382) 2,524
Asia Pacific 825 336
-------- --------
$ 45,325 $ 50,547
======== ========
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):
2006
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Professional
services $ 31,801 $ 34,376 $ 36,105 $ 34,105
Customer support
and software
enhancements 13,361 14,055 14,944 15,774
-------- -------- -------- --------
Total services
revenue $ 45,162 $ 48,431 $ 51,049 $ 49,879
======== ======== ======== ========
2007
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Professional
services $ 38,831 $ 39,865 $ 41,488 $ 38,946
Customer support
and software
enhancements 15,969 15,998 16,949 18,107
-------- -------- -------- --------
Total services
revenue $ 54,800 $ 55,863 $ 58,437 $ 57,053
======== ======== ======== ========
2006 2007
-------- --------
YTD YTD
-------- --------
Professional services $136,387 $159,130
Customer support and software enhancements 58,134 67,023
-------- --------
Total services revenue $194,521 $226,153
======== ========
4. Hardware and other revenue includes the following items
(in thousands):
2006
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Hardware revenue $ 4,471 $ 5,424 $ 3,326 $ 4,967
Billed Travel 2,076 2,799 2,720 2,021
-------- -------- -------- --------
Total Hardware and
other revenue $ 6,547 $ 8,223 $ 6,046 $ 6,988
======== ======== ======== ========
2007
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Hardware revenue $ 6,666 $ 7,270 $ 5,614 $ 5,661
Billed Travel 2,971 3,098 3,235 3,702
-------- -------- -------- --------
Total Hardware and
other revenue $ 9,637 $ 10,368 $ 8,849 $ 9,363
======== ======== ======== ========
2006 2007
-------- --------
YTD YTD
-------- --------
Hardware revenue $ 18,188 $ 25,211
Billed Travel 9,616 13,006
-------- --------
Total Hardware and other revenue $ 27,804 $ 38,217
======== ========
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):
2006
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Revenue $ (853) $ (158) $ 251 $ 779
Costs and Expenses (823) (324) 53 1,030
Operating Income (30) 166 198 (251)
Foreign currency
gains (losses) in
other income 98 275 (34) (91)
-------- -------- -------- --------
$ 68 $ 441 $ 164 $ (342)
======== ======== ======== ========
2007
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Revenue $ 748 $ 992 $ 1,049 $ 1,231
Costs and Expenses 858 1,306 1,629 1,892
Operating Income (110) (314) (580) (661)
Foreign currency
gains (losses) in
other income (22) (602) 897 892
-------- -------- -------- --------
$ (132) $ (916) $ 317 $ 231
======== ======== ======== ========
2006 2007
-------- --------
YTD YTD
-------- --------
Revenue $ 19 $ 4,020
Costs and Expenses (64) 5,685
Operating Income 83 (1,665)
Foreign currency gains (losses) in other income 248 1,165
-------- --------
$ 331 $ (500)
======== ========
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):
2006
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Operating Income $ 53 $ 145 $ 235 $ (32)
Foreign currency
gains (losses) in
other income (30) 25 87 (136)
-------- -------- -------- --------
Total impact of
changes in the
Indian Rupee $ 23 $ 170 $ 322 $ (168)
======== ======== ======== ========
2007
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Operating Income $ (14) $ (443) $ (693) (725)
Foreign currency
gains (losses) in
other income (82) (536) (312) (248)
-------- -------- -------- --------
Total impact of
changes in the
Indian Rupee $ (96) $ (979) $ (1,005) $ (973)
======== ======== ======== ========
2006 2007
-------- --------
YTD YTD
-------- --------
Operating Income $ 401 $ (1,875)
Foreign currency gains (losses) in other income (54) (1,178)
-------- --------
Total impact of changes in the Indian Rupee $ 347 $ (3,053)
======== ========
6. Capital expenditures are as follows (in thousands):
2006
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Capital expenditures $ 2,195 $ 2,603 $ 2,731 $ 2,112
======== ======== ======== ========
2007
--------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-------- -------- -------- --------
Capital expenditures $ 2,956 $ 3,511 $ 1,467 $ 1,467
======== ======== ======== ========
2006 2007
-------- --------
YTD YTD
-------- --------
Capital expenditures $ 9,641 $ 9,401
======== ========
7. Stock Repurchase Activity
During 2007, we repurchased 3.6 million shares of common stock
totaling $100 million at an average price of $28.05. In 2006 for
the full year, we repurchased 0.8 million shares of common stock
totaling $16.0 million at an average cost of $20.73.