EX-99.1 2 manh-ex991_6.htm EX-99.1 manh-ex991_6.htm

Exhibit 99.1

 

Contact:

 

Dennis Story

 

Cameron Smith

 

 

Chief Financial Officer

 

Director, Corporate Communications

 

 

Manhattan Associates, Inc.

 

Manhattan Associates, Inc.

 

 

770-955-7070

 

678-597-6841

 

 

dstory@manh.com

 

camsmith@manh.com

 

Manhattan Associates Reports Record Fourth Quarter and Full Year 2015 Performance

 

ATLANTA – February 2, 2016 – Leading Supply Chain Commerce Solutions provider Manhattan Associates, Inc. (NASDAQ: MANH) today reported record non-GAAP adjusted diluted earnings per share for the fourth quarter ended December 31, 2015 of $0.39 compared to $0.30 in Q4 2014, on license revenue of $20.4 million and record total revenue of $141.4 million. GAAP diluted earnings per share for Q4 2015 was a record $0.36 compared to $0.27 in Q4 2014.

“We’re very pleased with our 2015 fourth quarter and full year financial results. This marks our 4th consecutive year of record revenue and earnings per share performance. Our associates continue to execute very well serving our customers and therefore delivering strong financial performance,” said Eddie Capel, Manhattan Associates President and CEO. “Demand for our omni-channel, store and distribution management solutions continues to be strong and we’re working hard to extend our market leadership position. Despite persistent global macro sluggishness, we are optimistic about our growth opportunities in 2016. We will continue to be a serial investor in innovation and focus on the customer to increase market share and improve our financial results.”

FOURTH QUARTER 2015 FINANCIAL SUMMARY:

 

·

Adjusted diluted earnings per share, a non-GAAP measure, was $0.39 in Q4 2015, compared to $0.30 in Q4 2014.

 

 

·

GAAP diluted earnings per share was $0.36 in Q4 2015, compared to $0.27 in Q4 2014.

 

 

·

Consolidated total revenue was $141.4 million in Q4 2015, compared to $130.4 million in Q4 2014. License revenue was $20.4 million in Q4 2015, compared to $19.5 million in Q4 2014.

 

 

 

 

·

Adjusted operating income, a non-GAAP measure, was $43.1 million in Q4 2015, compared to $31.9 million in Q4 2014. 

 

 

·

GAAP operating income was $39.5 million in Q4 2015, compared to $29.1 million in Q4 2014.

 

 

·

Cash flow from operations was $36.1 million in Q4 2015, compared to $40.4 million in Q4 2014. Days Sales Outstanding was 63 days at December 31, 2015, compared to 60 days at September 30, 2015.

 

 

·

Cash and investments totaled $128.8 million at December 31, 2015, compared to $119.1 million at September 30, 2015.

 

 

·

During the three months ended December 31, 2015, the Company repurchased 340,082 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total investment of $25.1 million. In January 2016, 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.

 

 

FULL YEAR 2015 FINANCIAL SUMMARY:

 

·

Adjusted diluted earnings per share, a non-GAAP measure, was a record $1.52 for the twelve months ended December 31, 2015, compared to $1.16 for the twelve months ended December 31, 2014.

 

 

·

GAAP diluted earnings per share for the twelve months ended December 31, 2015 was a record $1.40, compared to $1.08 for the twelve months ended December 31, 2014.  

 

 

·

Consolidated revenue for the twelve months ended December 31, 2015 was a record $556.4 million, compared to $492.1 million for the twelve months ended December 31, 2014. License revenue was a record $78.6 million for the twelve months ended December 31, 2015, compared to $71.6 million for the twelve months ended December 31, 2014.  

 

 

 

·

Adjusted operating income, a non-GAAP measure, was a record $176.4 million for the twelve months ended December 31, 2015, compared to $137.0 million for the twelve months ended December 31, 2014.  

 

 

·

GAAP operating income was a record $161.4 million for the twelve months ended December 31, 2015, compared to $127.1 million for the twelve months ended December 31, 2014.

 

 

·

Cash flow from operations was a record $120.2 million in the twelve months ended December 31, 2015, compared to $94.2 million in the twelve months ended December 31, 2014.

 

 

·

During the twelve months ended December 31, 2015, the Company repurchased 1,721,457 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total investment of $101.6 million.

 

SALES ACHIEVEMENTS:

 

·

Recognized license revenue of $1.0 million or more on six contracts during Q4 2015.

 

 

·

Completed software license wins with new customers such as: Antalis, Biesheuvel Techniek (an IPH Group Company), Boston Scientific, Eddie Bauer, Eksmo, Fanatics, MVP Group, Nitori, Nortek, North Bay International, Riffle Machine Works, Selmec Equipos Industriales, The White Company, Value Drug.

 

 

·

Expanded relationships with existing customers such as: Ahold USA, BCBGMaxazria, Citizen Watch, Coach, Darice, David’s Bridal, DOME, Essilor of America, eStore Logistics, Federal Mogul, Fiskars, Floor and Décor, Groupe Dynamite, Harris Teeter, Heineken, Hot Topic, House of Fraser, Inter-Fab, Kane Warehousing, Keeco, Kiabi, Kuehne & Nagel, Kwik Trip, Lacoste, LC Industries, Lennox International, Maggy London, O'Reilly Automotive Stores, Petrovich, Pitt-Ohio, RedMart, Republic National Distributing Company, Samson, Schurman Fine Papers, Southern Wine & Spirits of America, Telebrands, The Honest Company, Tractor Supply, TwinMed, Under Armour, West Coast Distribution, Wineworks.

 

 

2016 GUIDANCE

Manhattan Associates provides the following revenue and diluted earnings per share guidance for the full year 2016:

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. 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 March 15, 2016, 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 2016 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, and Manhattan Associates disclaims any obligation to update any previously published financial expectations during the Quiet Period. The Quiet Period will extend until publication of Manhattan Associates’ next quarterly earnings release, currently scheduled for the third full week of April 2016.

 

 

 

CONFERENCE CALL

The Company’s conference call regarding its fourth quarter and twelve months ended December 31, 2015 financial results will be held today, February 2, 2016, at 4:30 p.m. Eastern Standard 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 +1.855.859.2056 in the U.S. and Canada, or +1.404.537.3406 outside the U.S., and entering the conference identification number 20771536 or via the web www.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates’ first quarter 2016 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 and twelve months ended December 31, 2015.  

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 makes commerce-ready supply chains that bring all points of commerce together so you’re ready to sell and ready to execute. Across the store, through your network or from your fulfillment center, we design, build and deliver market-leading solutions that support both top-line growth and bottom-line profitability. By converging front-end sales with back-end supply chain execution, our software, platform technology and unmatched experience help our customers get commerce ready—and ready to reap the rewards 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 “2016 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, information security breaches and the risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.

###

 

 

 

 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

 

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(unaudited)

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software license

 

$

20,413

 

 

$

19,542

 

 

$

78,615

 

 

$

71,583

 

Services

 

 

106,982

 

 

 

97,073

 

 

 

428,078

 

 

 

376,023

 

Hardware and other

 

 

14,040

 

 

 

13,788

 

 

 

49,678

 

 

 

44,498

 

Total revenue

 

 

141,435

 

 

 

130,403

 

 

 

556,371

 

 

 

492,104

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of license

 

 

2,590

 

 

 

1,970

 

 

 

9,938

 

 

 

7,110

 

Cost of services

 

 

46,419

 

 

 

45,534

 

 

 

184,349

 

 

 

169,140

 

Cost of hardware and other

 

 

11,322

 

 

 

11,088

 

 

 

41,141

 

 

 

36,328

 

Research and development

 

 

13,457

 

 

 

13,047

 

 

 

53,859

 

 

 

48,953

 

Sales and marketing

 

 

13,975

 

 

 

16,273

 

 

 

48,615

 

 

 

52,617

 

General and administrative

 

 

12,036

 

 

 

11,694

 

 

 

49,259

 

 

 

44,455

 

Depreciation and amortization

 

 

2,108

 

 

 

1,725

 

 

 

7,764

 

 

 

6,377

 

Total costs and expenses

 

 

101,907

 

 

 

101,331

 

 

 

394,925

 

 

 

364,980

 

Operating income

 

 

39,528

 

 

 

29,072

 

 

 

161,446

 

 

 

127,124

 

Other income, net

 

 

170

 

 

 

850

 

 

 

1,395

 

 

 

874

 

Income before income taxes

 

 

39,698

 

 

 

29,922

 

 

 

162,841

 

 

 

127,998

 

Income tax provision

 

 

13,328

 

 

 

9,568

 

 

 

59,366

 

 

 

45,998

 

Net income

 

$

26,370

 

 

$

20,354

 

 

$

103,475

 

 

$

82,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.36

 

 

$

0.27

 

 

$

1.41

 

 

$

1.09

 

Diluted earnings per share

 

$

0.36

 

 

$

0.27

 

 

$

1.40

 

 

$

1.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

72,929

 

 

 

74,223

 

 

 

73,443

 

 

 

74,995

 

Diluted

 

 

73,555

 

 

 

75,034

 

 

 

74,038

 

 

 

75,841

 

 

 

 

 

 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Reconciliation of Selected GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

 

 

 

  

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

39,528

 

 

$

29,072

 

 

$

161,446

 

 

$

127,124

 

Equity-based compensation (a)

 

 

3,441

 

 

 

2,704

 

 

 

14,528

 

 

 

9,671

 

Purchase amortization (b)

 

 

107

 

 

 

106

 

 

 

432

 

 

 

165

 

Adjusted operating income (Non-GAAP)

 

$

43,076

 

 

$

31,882

 

 

$

176,406

 

 

$

136,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

$

13,328

 

 

$

9,568

 

 

$

59,366

 

 

$

45,998

 

Equity-based compensation (a)

 

 

1,216

 

 

 

989

 

 

 

5,385

 

 

 

3,574

 

Purchase amortization (b)

 

 

38

 

 

 

39

 

 

 

160

 

 

 

61

 

Adjusted income tax provision (Non-GAAP)

 

$

14,582

 

 

$

10,596

 

 

$

64,911

 

 

$

49,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

26,370

 

 

$

20,354

 

 

$

103,475

 

 

$

82,000

 

Equity-based compensation (a)

 

 

2,225

 

 

 

1,715

 

 

 

9,143

 

 

 

6,097

 

Purchase amortization (b)

 

 

69

 

 

 

67

 

 

 

272

 

 

 

104

 

Adjusted net income (Non-GAAP)

 

$

28,664

 

 

$

22,136

 

 

$

112,890

 

 

$

88,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

0.36

 

 

$

0.27

 

 

$

1.40

 

 

$

1.08

 

Equity-based compensation (a)

 

 

0.03

 

 

 

0.02

 

 

 

0.12

 

 

 

0.08

 

Purchase amortization (b)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Adjusted diluted EPS (Non-GAAP)

 

$

0.39

 

 

$

0.30

 

 

$

1.52

 

 

$

1.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fully diluted shares

 

 

73,555

 

 

 

75,034

 

 

 

74,038

 

 

 

75,841

 

 

 

(a)

Adjusted results exclude all equity-based compensation, to facilitate comparison with our competitors and peers and for the other reasons explained in our Current Report on Form 8-K filed with the SEC on the date hereof. Equity-based compensation is included in the following GAAP operating expense lines for the three and twelve months ended December 31, 2015 and 2014:

 

  

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of services

 

$

524

 

 

$

551

 

 

$

2,548

 

 

$

1,839

 

Research and development

 

 

625

 

 

 

408

 

 

 

2,128

 

 

 

1,541

 

Sales and marketing

 

 

850

 

 

 

469

 

 

 

2,577

 

 

 

1,563

 

General and administrative

 

 

1,442

 

 

 

1,276

 

 

 

7,275

 

 

 

4,728

 

Total equity-based compensation

 

$

3,441

 

 

$

2,704

 

 

$

14,528

 

 

$

9,671

 

 

(b)

Adjustments represent purchased intangibles amortization from prior acquisition. Such amortization is excluded from adjusted results to facilitate comparison with our competitors and peers, to facilitate comparisons of the results of our core operations from period to period and for the other reasons explained in our Current Report on Form 8-K filed with the SEC on the date hereof.


 

 

 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

 

December 31, 2015

 

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

118,416

 

 

$

115,708

 

Short-term investments

 

 

10,344

 

 

 

8,730

 

Accounts receivable, net of allowance of $7,031 and $4,164 in 2015 and 2014, respectively

 

 

97,379

 

 

 

86,828

 

Deferred income taxes

 

 

10,231

 

 

 

9,900

 

Prepaid expenses and other current assets

 

 

10,772

 

 

 

8,695

 

Total current assets

 

 

247,142

 

 

 

229,861

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

21,176

 

 

 

17,265

 

Goodwill, net

 

 

62,233

 

 

 

62,250

 

Deferred income taxes

 

 

86

 

 

 

270

 

Other assets

 

 

7,275

 

 

 

8,524

 

Total assets

 

$

337,912

 

 

$

318,170

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

11,219

 

 

$

12,483

 

Accrued compensation and benefits

 

 

29,284

 

 

 

30,889

 

Accrued and other liabilities

 

 

13,853

 

 

 

12,501

 

Deferred revenue

 

 

68,757

 

 

 

58,968

 

Income taxes payable

 

 

4,072

 

 

 

7,974

 

Total current liabilities

 

 

127,185

 

 

 

122,815

 

 

 

 

 

 

 

 

 

 

Other non-current liabilities

 

 

15,235

 

 

 

13,332

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or

   outstanding in 2015 and 2014

 

 

-

 

 

 

-

 

Common stock, $.01 par value; 200,000,000 shares authorized; 72,766,383 and

   74,104,064 shares issued and outstanding at December 31, 2015 and

   December 31, 2014, respectively

 

 

728

 

 

 

741

 

Retained earnings

 

 

207,070

 

 

 

191,305

 

Accumulated other comprehensive loss

 

 

(12,306

)

 

 

(10,023

)

Total shareholders' equity

 

 

195,492

 

 

 

182,023

 

Total liabilities and shareholders' equity

 

$

337,912

 

 

$

318,170

 

 

 

 

 

 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Year Ended December 31,

 

 

2015

 

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

103,475

 

 

$

82,000

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

7,764

 

 

 

6,377

 

 

Equity-based compensation

 

 

14,528

 

 

 

9,671

 

 

Gain on disposal of equipment

 

 

(30

)

 

 

(13

)

 

Tax benefit of stock awards exercised/vested

 

 

9,170

 

 

 

8,640

 

 

Excess tax benefits from equity-based compensation

 

 

(9,147

)

 

 

(8,562

)

 

Deferred income taxes

 

 

1,532

 

 

 

(1,705

)

 

Unrealized foreign currency loss (gain)

 

 

49

 

 

 

(624

)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(12,223

)

 

 

(16,758

)

 

Other assets

 

 

(1,427

)

 

 

(5,198

)

 

Accounts payable, accrued and other liabilities

 

 

(1,592

)

 

 

13,519

 

 

Income taxes

 

 

(2,271

)

 

 

338

 

 

Deferred revenue

 

 

10,325

 

 

 

6,477

 

 

Net cash provided by operating activities

 

 

120,153

 

 

 

94,162

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(11,492

)

 

 

(9,415

)

 

Net purchases of short-term investments

 

 

(2,051

)

 

 

(479

)

 

Payment in connection with acquisition

 

 

-

 

 

 

(2,773

)

 

Net cash used in investing activities

 

 

(13,543

)

 

 

(12,667

)

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

Purchase of common stock

 

 

(112,138

)

 

 

(99,204

)

 

Proceeds from issuance of common stock from options exercised

 

 

717

 

 

 

1,571

 

 

Excess tax benefits from equity-based compensation

 

 

9,147

 

 

 

8,562

 

 

Net cash used in financing activities

 

 

(102,274

)

 

 

(89,071

)

 

 

 

 

 

 

 

 

 

 

 

Foreign currency impact on cash

 

 

(1,628

)

 

 

(1,091

)

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

2,708

 

 

 

(8,667

)

 

Cash and cash equivalents at beginning of period

 

 

115,708

 

 

 

124,375

 

 

Cash and cash equivalents at end of period

 

$

118,416

 

 

$

115,708

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

MANHATTAN ASSOCIATES, INC.

SUPPLEMENTAL INFORMATION

1.

GAAP and Adjusted earnings per share by quarter are as follows:

 

 

2014

 

 

2015

 

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

GAAP Diluted EPS

 

$

0.24

 

 

$

0.27

 

 

$

0.30

 

 

$

0.27

 

 

$

1.08

 

 

$

0.31

 

 

$

0.35

 

 

$

0.38

 

 

$

0.36

 

 

$

1.40

 

Adjustments to GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based

   compensation

 

 

0.02

 

 

 

0.02

 

 

 

0.02

 

 

 

0.02

 

 

 

0.08

 

 

 

0.03

 

 

 

0.02

 

 

 

0.05

 

 

 

0.03

 

 

 

0.12

 

Purchase amortization

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Adjusted Diluted EPS

 

$

0.26

 

 

$

0.29

 

 

$

0.32

 

 

$

0.30

 

 

$

1.16

 

 

$

0.34

 

 

$

0.37

 

 

$

0.42

 

 

$

0.39

 

 

$

1.52

 

Fully Diluted Shares

 

 

76,795

 

 

 

76,037

 

 

 

75,466

 

 

 

75,034

 

 

 

75,841

 

 

 

74,607

 

 

 

74,126

 

 

 

73,761

 

 

 

73,555

 

 

 

74,038

 

2.

Revenues and operating income by reportable segment are as follows (in thousands):

 

 

2014

 

 

2015

 

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

91,355

 

 

$

98,633

 

 

$

103,419

 

 

$

108,557

 

 

$

401,964

 

 

$

109,959

 

 

$

117,154

 

 

$

120,118

 

 

$

117,245

 

 

$

464,476

 

EMEA

 

 

15,679

 

 

 

15,911

 

 

 

14,253

 

 

 

15,012

 

 

 

60,855

 

 

 

18,305

 

 

 

17,175

 

 

 

16,829

 

 

 

17,767

 

 

 

70,076

 

APAC

 

 

6,529

 

 

 

7,986

 

 

 

7,936

 

 

 

6,834

 

 

 

29,285

 

 

 

5,259

 

 

 

4,780

 

 

 

5,357

 

 

 

6,423

 

 

 

21,819

 

 

 

$

113,563

 

 

$

122,530

 

 

$

125,608

 

 

$

130,403

 

 

$

492,104

 

 

$

133,523

 

 

$

139,109

 

 

$

142,304

 

 

$

141,435

 

 

$

556,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating

   Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

24,133

 

 

$

25,127

 

 

$

28,750

 

 

$

23,926

 

 

$

101,936

 

 

$

30,182

 

 

$

36,214

 

 

$

36,407

 

 

$

31,020

 

 

$

133,823

 

EMEA

 

 

4,058

 

 

 

4,239

 

 

 

3,617

 

 

 

3,399

 

 

 

15,313

 

 

 

5,522

 

 

 

4,516

 

 

 

5,909

 

 

 

6,363

 

 

 

22,310

 

APAC

 

 

1,860

 

 

 

3,134

 

 

 

3,134

 

 

 

1,747

 

 

 

9,875

 

 

 

1,160

 

 

 

644

 

 

 

1,364

 

 

 

2,145

 

 

 

5,313

 

 

 

$

30,051

 

 

$

32,500

 

 

$

35,501

 

 

$

29,072

 

 

$

127,124

 

 

$

36,864

 

 

$

41,374

 

 

$

43,680

 

 

$

39,528

 

 

$

161,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (pre-tax):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based

   compensation

 

$

2,274

 

 

$

2,396

 

 

$

2,297

 

 

$

2,704

 

 

$

9,671

 

 

$

3,078

 

 

$

2,661

 

 

$

5,348

 

 

$

3,441

 

 

$

14,528

 

Purchase

   amortization

 

 

1

 

 

 

-

 

 

 

58

 

 

 

106

 

 

 

165

 

 

 

106

 

 

 

106

 

 

 

113

 

 

 

107

 

 

 

432

 

 

 

$

2,275

 

 

$

2,396

 

 

$

2,355

 

 

$

2,810

 

 

$

9,836

 

 

$

3,184

 

 

$

2,767

 

 

$

5,461

 

 

$

3,548

 

 

$

14,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-GAAP

   Operating Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

26,408

 

 

$

27,523

 

 

$

31,105

 

 

$

26,736

 

 

$

111,772

 

 

$

33,366

 

 

$

38,981

 

 

$

41,868

 

 

$

34,568

 

 

$

148,783

 

EMEA

 

 

4,058

 

 

 

4,239

 

 

 

3,617

 

 

 

3,399

 

 

 

15,313

 

 

 

5,522

 

 

 

4,516

 

 

 

5,909

 

 

 

6,363

 

 

 

22,310

 

APAC

 

 

1,860

 

 

 

3,134

 

 

 

3,134

 

 

 

1,747

 

 

 

9,875

 

 

 

1,160

 

 

 

644

 

 

 

1,364

 

 

 

2,145

 

 

 

5,313

 

 

 

$

32,326

 

 

$

34,896

 

 

$

37,856

 

 

$

31,882

 

 

$

136,960

 

 

$

40,048

 

 

$

44,141

 

 

$

49,141

 

 

$

43,076

 

 

$

176,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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): 

 

 

2014

 

 

2015

 

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

Professional services

 

$

59,422

 

 

$

65,702

 

 

$

69,398

 

 

$

65,536

 

 

$

260,058

 

 

$

72,659

 

 

$

76,548

 

 

$

80,994

 

 

$

74,423

 

 

$

304,624

 

Customer support and

   software enhancements

 

 

27,491

 

 

 

27,817

 

 

 

29,120

 

 

 

31,537

 

 

 

115,965

 

 

 

28,544

 

 

 

30,796

 

 

 

31,555

 

 

 

32,559

 

 

 

123,454

 

Total services revenue

 

$

86,913

 

 

$

93,519

 

 

$

98,518

 

 

$

97,073

 

 

$

376,023

 

 

$

101,203

 

 

$

107,344

 

 

$

112,549

 

 

$

106,982

 

 

$

428,078

 

4.

Hardware and other revenue includes the following items (in thousands):

 

 

2014

 

 

2015

 

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

Hardware revenue

 

$

5,946

 

 

$

6,114

 

 

$

4,707

 

 

$

8,856

 

 

$

25,623

 

 

$

7,730

 

 

$

7,080

 

 

$

5,462

 

 

$

9,243

 

 

$

29,515

 

Billed travel

 

 

3,597

 

 

 

4,908

 

 

 

5,438

 

 

 

4,932

 

 

 

18,875

 

 

 

5,276

 

 

 

4,927

 

 

 

5,163

 

 

 

4,797

 

 

 

20,163

 

Total hardware and

   other revenue

 

$

9,543

 

 

$

11,022

 

 

$

10,145

 

 

$

13,788

 

 

$

44,498

 

 

$

13,006

 

 

$

12,007

 

 

$

10,625

 

 

$

14,040

 

 

$

49,678

 

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):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

2015

 

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

Revenue

 

$

202

 

 

$

696

 

 

$

479

 

 

$

(1,397

)

 

$

(20

)

 

$

(3,426

)

 

$

(3,599

)

 

$

(3,421

)

 

$

(2,263

)

 

$

(12,709

)

Costs and expenses

 

 

(713

)

 

 

73

 

 

 

522

 

 

 

(1,097

)

 

 

(1,215

)

 

 

(2,546

)

 

 

(3,201

)

 

 

(2,820

)

 

 

(2,058

)

 

 

(10,625

)

Operating income

 

 

915

 

 

 

623

 

 

 

(43

)

 

 

(300

)

 

 

1,195

 

 

 

(880

)

 

 

(398

)

 

 

(601

)

 

 

(205

)

 

 

(2,084

)

Foreign currency

   (losses) gains in

   other income

 

 

(516

)

 

 

12

 

 

 

(415

)

 

 

491

 

 

 

(428

)

 

 

(86

)

 

 

(4

)

 

 

213

 

 

 

(199

)

 

 

(76

)

 

 

$

399

 

 

$

635

 

 

$

(458

)

 

$

191

 

 

$

767

 

 

$

(966

)

 

$

(402

)

 

$

(388

)

 

$

(404

)

 

$

(2,160

)

 

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):

 

 

 

2014

 

 

2015

 

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

Operating income

 

$

898

 

 

$

505

 

 

$

(171

)

 

$

24

 

 

$

1,256

 

 

$

72

 

 

$

468

 

 

$

571

 

 

$

492

 

 

$

1,603

 

Foreign currency

   (losses) gains in

   other income

 

 

(141

)

 

 

(129

)

 

 

191

 

 

 

342

 

 

 

263

 

 

 

45

 

 

 

182

 

 

 

423

 

 

 

2

 

 

 

652

 

Total impact of

   changes in the

   Indian Rupee

 

$

757

 

 

$

376

 

 

$

20

 

 

$

366

 

 

$

1,519

 

 

$

117

 

 

$

650

 

 

$

994

 

 

$

494

 

 

$

2,255

 

 

 

 

 

6.

Other (loss) income includes the following components (in thousands): 

 

 

 

2014

 

 

2015

 

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

Interest income

 

$

267

 

 

$

302

 

 

$

349

 

 

$

350

 

 

$

1,268

 

 

$

324

 

 

$

335

 

 

$

336

 

 

$

336

 

 

$

1,331

 

Foreign currency

   (losses) gains

 

 

(516

)

 

 

12

 

 

 

(415

)

 

 

491

 

 

 

(428

)

 

 

(86

)

 

 

(4

)

 

 

213

 

 

 

(199

)

 

 

(76

)

Other non-operating

   income (expense)

 

 

16

 

 

 

(2

)

 

 

11

 

 

 

9

 

 

 

34

 

 

 

24

 

 

 

28

 

 

 

55

 

 

 

33

 

 

 

140

 

Total other (loss) income

 

$

(233

)

 

$

312

 

 

$

(55

)

 

$

850

 

 

$

874

 

 

$

262

 

 

$

359

 

 

$

604

 

 

$

170

 

 

$

1,395

 

7.

Total equity-based compensation is as follows (in thousands except per share amounts):

 

 

 

2014

 

 

2015

 

 

 

1st Qtr

 

 

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

 

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

Total equity-based

   compensation -

   restricted stock

 

$

2,274

 

 

 

 

$

2,396

 

 

$

2,297

 

 

$

2,704

 

 

$

9,671

 

 

$

3,078

 

 

 

 

$

2,661

 

 

$

5,348

 

 

$

3,441

 

 

$

14,528

 

Income tax provision

 

 

844

 

 

 

 

 

889

 

 

 

852

 

 

 

989

 

 

 

3,574

 

 

 

1,154

 

 

 

 

 

1,004

 

 

 

2,011

 

 

 

1,216

 

 

 

5,385

 

Net income

 

$

1,430

 

 

 

 

$

1,507

 

 

$

1,445

 

 

$

1,715

 

 

$

6,097

 

 

$

1,924

 

 

 

 

$

1,657

 

 

$

3,337

 

 

$

2,225

 

 

$

9,143

 

Diluted earnings

   per share -

   restricted stock

 

$

0.02

 

 

 

 

$

0.02

 

 

$

0.02

 

 

$

0.02

 

 

$

0.08

 

 

$

0.03

 

 

 

 

$

0.02

 

 

$

0.05

 

 

$

0.03

 

 

$

0.12

 

8.

Capital expenditures are as follows (in thousands):

 

 

2014

 

 

2015

 

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

Capital expenditures

 

$

1,156

 

 

$

2,424

 

 

$

3,096

 

 

$

2,739

 

 

$

9,415

 

 

$

3,098

 

 

$

2,671

 

 

$

3,850

 

 

$

1,873

 

 

$

11,492

 

9.

Stock Repurchase Activity (in thousands):

 

 

2014

 

 

2015

 

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

Shares purchased under

   publicly-announced

   buy-back program

 

 

695

 

 

 

782

 

 

 

504

 

 

 

639

 

 

 

2,620

 

 

 

524

 

 

 

458

 

 

 

399

 

 

 

340

 

 

 

1,721

 

Shares withheld for

   taxes due upon

   vesting of restricted stock

 

 

235

 

 

 

1

 

 

 

10

 

 

 

3

 

 

 

249

 

 

 

212

 

 

 

2

 

 

 

9

 

 

 

3

 

 

 

226

 

Total shares purchased

 

 

930

 

 

 

783

 

 

 

514

 

 

 

642

 

 

 

2,869

 

 

 

736

 

 

 

460

 

 

 

408

 

 

 

343

 

 

 

1,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash paid for

   shares purchased

   under publicly-

   announced

   buy-back program

 

$

25,459

 

 

$

25,090

 

 

$

15,112

 

 

$

25,422

 

 

$

91,083

 

 

$

26,306

 

 

$

25,214

 

 

$

25,001

 

 

$

25,078

 

 

$

101,599

 

Total cash paid for

   shares withheld for

   taxes due upon

   vesting of

   restricted stock

 

 

7,720

 

 

 

36

 

 

 

289

 

 

 

76

 

 

 

8,121

 

 

 

9,727

 

 

 

83

 

 

 

508

 

 

 

221

 

 

 

10,539

 

Total cash paid for

   shares repurchased

 

$

33,179

 

 

$

25,126

 

 

$

15,401

 

 

$

25,498

 

 

$

99,204

 

 

$

36,033

 

 

$

25,297

 

 

$

25,509

 

 

$

25,299

 

 

$

112,138