UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) |
June 21, 2011 |
AMERICAN SOFTWARE, INC. |
(Exact name of registrant as specified in its charter) |
Georgia |
0-12456 |
58-1098795 |
||
(State or other jurisdiction |
(Commission File |
(IRS Employer |
470 East Paces Ferry Road, N.E. Atlanta, Georgia |
30305 |
|
(Address of principal executive offices) |
(Zip Code) |
Registrant's telephone number, including area code | (404) 261-4381 |
Former name or former address, if changed since last report: Not applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
SECTION 2 – FINANCIAL INFORMATION
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Attached hereto as Exhibit 99.1 and incorporated by reference herein is financial information for American Software, Inc. for the quarter ended April 30, 2011 and certain forward-looking statements, as presented in a press release of June 21, 2011. The information in this report shall be deemed incorporated by reference into any registration statement heretofore or hereafter filed under the Securities Act of 1933, as amended, except to the extent that such information is superseded by information as of a subsequent date that is included in or incorporated by reference into such registration statement. The information in this report shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.
SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
The following Exhibit is filed as part of this Report:
Exhibit No. |
Description |
|
99.1 |
Press Release of American Software, Inc., dated June 21, 2011. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AMERICAN SOFTWARE, INC. |
||||
(Registrant) |
||||
Date: | June 21, 2011 | By: |
/s/ Vincent C. Klinges |
|
Vincent C. Klinges |
||||
Chief Financial Officer |
2
Exhibit 99.1
American Software Reports Preliminary Fourth Quarter and Fiscal Year 2011 Results
Company
achieves 41st
consecutive quarter of profitability, License Fee Revenue increase 151%,
GAAP Net Earnings Increase 107% for the quarter
ATLANTA--(BUSINESS WIRE)--June 21, 2011--American Software, Inc. (NASDAQ: AMSWA) today reported preliminary financial results for the fourth quarter of fiscal year 2011, delivering a 151% increase in fourth quarter license fee revenue and a 107% increase in GAAP net earnings when compared to the same period last year. The Company has achieved 41 consecutive quarters of profitability and 31 consecutive quarters of providing dividend distributions to shareholders.
Key fourth quarter financial highlights:
Key fiscal 2011 year financial highlights:
The Company is including adjusted EBITDA, adjusted net earnings and adjusted net earnings per share in the summary financial information provided with this press release as supplemental information relating to its operating results. This financial information is not in accordance with, or an alternative for, GAAP compliant financial information and may be different from non-GAAP net earnings and non-GAAP per share measures used by other companies. The Company believes that this presentation of adjusted net earnings and adjusted net earnings per share provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations.
The overall financial condition of the Company remains strong, with no debt and with cash and investments of approximately $55.4 million as of April 30, 2011. During the fourth quarter, the Company increased cash and investments by approximately $2.9 million from the preceding quarter. As of April 30, 2011, cash and investments increased by approximately $1.5 million compared to April 30, 2010 while the Company paid approximately $9.3 million in shareholder dividends during fiscal year 2011.
“The Company delivered a strong finish to fiscal year 2011, achieving a 107% increase in GAAP net earnings fueled by a 151% increase in license fee revenue,” stated James C. Edenfield, president and CEO of American Software. “For fiscal year 2011, we welcomed 92 new customers, signed license agreements with customers in 23 countries and continued our healthy investment in research and development. With 41 consecutive quarters of profitability combined with consistent growth in our global customer base, American Software is well positioned with a robust portfolio of innovative enterprise application solutions and deep supply chain management expertise.”
“Our focus is on helping companies leverage their supply chains to create operational, market and brand advantages that drive results in both good and difficult economic environments,” continued Edenfield. “Leaders are investing in supply chain technology to accelerate the sales and operations planning (S&OP) process, streamline new product introductions, optimize inventory investments, and harness the benefits of a global marketplace to increase profits.”
“Our sustained profitability has allowed the Company to provide a tangible benefit to our shareholders with a quarterly dividend for 31 consecutive quarters,” said Edenfield. “On May 16, 2011 our Board of Directors authorized the Company's next quarterly dividend of $0.09 per common share, which is payable on September 9, 2011 to shareholders of record at the close of business on August 19, 2011. This will mark the 32nd consecutive quarter in which the Board of Directors has declared a dividend distribution to our shareholders.”
Additional highlights for the fourth quarter of fiscal year 2011 include:
Customers:
Company and Technology:
About American Software, Inc.
Atlanta-based American Software (NASDAQ: AMSWA) provides demand-driven supply chain management and enterprise software solutions, backed by more than 40 years of industry experience, that drive value for companies regardless of market conditions. Logility, Inc., a wholly-owned subsidiary of American Software, is a leading provider of supply chain management solutions for companies of all sizes. Logility Voyager Solutions™ is a comprehensive suite, which includes supply chain visibility; demand, inventory and replenishment planning; Sales and Operations Planning (S&OP); inventory and supply optimization; manufacturing planning and scheduling; transportation planning and management; and warehouse management. Demand Management, Inc., a wholly-owned subsidiary of Logility, delivers supply chain solutions to small and midsized manufacturers, distributors and retailers. Demand Management’s Demand Solutions® suite is widely deployed and globally recognized for forecasting, demand planning and point-of-sale analysis. Logility and Demand Management proudly serve customers such as Arch Chemicals, Avery Dennison Corporation, McCain Foods, Pernod Ricard, Sigma Aldrich, and VF Corp. New Generation Computing Inc. (NGC), a wholly-owned subsidiary of American Software, provides PLM, Global Sourcing and ERP solutions to the fashion, apparel, footwear, and retail industries. NGC’s global customers include A|X Armani Exchange, Carter’s, Maggy London, Hugo Boss, Parigi Group, and Tristan America. For more information about American Software, please visit www.amsoftware.com, call (800) 726-2946 or email: ask@amsoftware.com.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to substantial risks and uncertainties. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made herein. These factors include, but are not limited to, continuing U.S. and global economic uncertainty, the timing and degree of business recovery, unpredictability and the irregular pattern of future revenues, dependence on particular market segments or customers, competitive pressures, delays, product liability and warranty claims and other risks associated with new product development, undetected software errors, market acceptance of the Company’s products, technological complexity, the challenges and risks associated with integration of acquired product lines, companies and services, as well as a number of other risk factors that could affect the Company’s future performance. For further information about risks the Company could experience as well as other information, please refer to the Company's Form 10-K for the year ended April 30, 2010 and other reports and documents subsequently filed with the Securities and Exchange Commission. For more information, contact: Vincent C. Klinges, Chief Financial Officer, American Software, Inc., (404) 264-5477 or fax: (404) 237-8868.
Logility is a registered trademark and Logility Voyager Solutions is a trademark of Logility, Inc., Demand Solutions is a registered trademark of Demand Management, Inc., and NGC and New Generation Computing, Inc. are registered trademarks of New Generation Computing. Other products mentioned in this document are registered, trademarked or service marked by their respective owners.
AMERICAN SOFTWARE, INC. | |||||||||||||||||||||||||||||
Consolidated Statements of Operations Information | |||||||||||||||||||||||||||||
(In thousands, except per share data, unaudited) | |||||||||||||||||||||||||||||
Fourth Quarter Ended | Twelve Months Ended | ||||||||||||||||||||||||||||
April 30, | April 30, | ||||||||||||||||||||||||||||
2011 | 2010 | Pct Chg. | 2011 | 2010 | Pct Chg. | ||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
License | $ | 7,983 | $ | 3,178 | 151 | % | $ | 19,240 | $ | 15,503 | 24 | % | |||||||||||||||||
Services & other | 9,551 | 8,853 | 8 | % | 36,960 | 32,298 | 14 | % | |||||||||||||||||||||
Maintenance | 7,640 | 6,862 | 11 | % | 29,389 | 27,475 | 7 | % | |||||||||||||||||||||
Total Revenues | 25,174 | 18,893 | 33 | % | 85,589 | 75,276 | 14 | % | |||||||||||||||||||||
Cost of Revenues: | |||||||||||||||||||||||||||||
License | 2,076 | 637 | 226 | % | 5,828 | 3,374 | 73 | % | |||||||||||||||||||||
Services & other | 7,375 | 6,298 | 17 | % | 27,205 | 22,797 | 19 | % | |||||||||||||||||||||
Maintenance | 1,860 | 1,623 | 15 | % | 7,152 | 6,803 | 5 | % | |||||||||||||||||||||
Total Cost of Revenues | 11,311 | 8,558 | 32 | % | 40,185 | 32,974 | 22 | % | |||||||||||||||||||||
Gross Margin | 13,863 | 10,335 | 34 | % | 45,404 | 42,302 | 7 | % | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Research and development | 2,561 | 2,386 | 7 | % | 9,953 | 9,132 | 9 | % | |||||||||||||||||||||
Less: capitalized development | (780 | ) | (643 | ) | 21 | % | (2,565 | ) | (2,410 | ) | 6 | % | |||||||||||||||||
Sales and marketing | 4,939 | 3,863 | 28 | % | 15,720 | 15,045 | 4 | % | |||||||||||||||||||||
General and administrative | 3,263 | 3,258 | 0 | % | 12,028 | 12,908 | (7 | %) | |||||||||||||||||||||
Provision/(Recovery) of doubtful accounts | 130 | 5 | nm | 172 | (297 | ) | nm | ||||||||||||||||||||||
Amortization of acquisition-related intangibles | 134 | 132 | 2 | % | 684 | 395 | 73 | % | |||||||||||||||||||||
Stock option compensation charge related to the Logility tender offer | - | - | - | - | 230 | nm | |||||||||||||||||||||||
Severance expenses | - | - | - | 219 | - | nm | |||||||||||||||||||||||
Total Operating Expenses | 10,247 | 9,001 | 14 | % | 36,211 | 35,003 | 3 | % | |||||||||||||||||||||
Operating Earnings | 3,616 | 1,334 | 171 | % | 9,193 | 7,299 | 26 | % | |||||||||||||||||||||
Interest Income & Other, Net | 597 | 667 | (10 | %) | 1,941 | 1,929 | 1 | % | |||||||||||||||||||||
Earnings Before Income Taxes and Noncontrolling Interest | 4,213 | 2,001 | 111 | % | 11,134 | 9,228 | 21 | % | |||||||||||||||||||||
Income Tax Expense | 1,460 | 672 | 117 | % | 3,770 | 3,434 | 10 | % | |||||||||||||||||||||
Net Earnings | $ | 2,753 | $ | 1,329 | 107 | % | $ | 7,364 | $ | 5,794 | 27 | % | |||||||||||||||||
Net earnings attributable to noncontrolling interests | - | - | - | - | 90 | nm | |||||||||||||||||||||||
Net Earnings attributable to American Software, Inc. | $ | 2,753 | $ | 1,329 | 107 | % | $ | 7,364 | $ | 5,704 | 29 | % | |||||||||||||||||
Earnings per common share: (1) | |||||||||||||||||||||||||||||
Basic | $ | 0.11 | $ | 0.05 | 120 | % | $ | 0.29 | $ | 0.23 | 26 | % | |||||||||||||||||
Diluted | $ | 0.10 | $ | 0.05 | 100 | % | $ | 0.28 | $ | 0.22 | 27 | % | |||||||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||||||||
Basic | 25,958 | 25,325 | 25,751 | 25,318 | |||||||||||||||||||||||||
Diluted | 26,515 | 25,893 | 26,183 | 25,881 | |||||||||||||||||||||||||
AMERICAN SOFTWARE, INC. | ||||||||||||||||||||||||
NON-GAAP MEASURES OF PERFORMANCE | ||||||||||||||||||||||||
(In thousands, except per share data, unaudited) | ||||||||||||||||||||||||
Fourth Quarter Ended | Twelve Months Ended | |||||||||||||||||||||||
April 30, | April 30, | |||||||||||||||||||||||
2011 | 2010 | Pct Chg. | 2011 | 2010 | Pct Chg. | |||||||||||||||||||
NON-GAAP EARNINGS PER SHARE: | ||||||||||||||||||||||||
Net Earnings (GAAP Basis) | $ | 2,753 | $ | 1,329 | 107 | % | $ | 7,364 | $ | 5,704 | 29 | % | ||||||||||||
Income tax provision | 1,460 | 672 | 117 | % | 3,770 | 3,434 | 10 | % | ||||||||||||||||
Interest Income & Other, Net | (597 | ) | (667 | ) | (10 | %) | (1,941 | ) | (1,929 | ) | 1 | % | ||||||||||||
Amortization of intangibles | 790 | 168 | 370 | % | 2,689 | 890 | 202 | % | ||||||||||||||||
Depreciation | 306 | 315 | (3 | %) | 1,233 | 1,270 | (3 | %) | ||||||||||||||||
EBITDA (earnings before interest, taxes, depreciation and amortization) | 4,712 | 1,817 | 159 | % | 13,115 | 9,369 | 40 | % | ||||||||||||||||
Severance expenses | - | - | - | 219 | - | nm | ||||||||||||||||||
Stock-based compensation | 256 | 203 | 26 | % | 985 | 806 | 22 | % | ||||||||||||||||
Expenses related to the Optiant acquisition | - | 113 | nm | - | 128 | nm | ||||||||||||||||||
Stock option compensation charge related to the Logility tender offer | - | - | - | - | 230 | nm | ||||||||||||||||||
Expenses related to the Logility tender offer | - | - | - | - | 552 | nm | ||||||||||||||||||
Adjusted EBITDA | $ | 4,968 | $ | 2,133 | 133 | % | $ | 14,319 | $ | 11,085 | 29 | % | ||||||||||||
EBITDA , as a percentage of revenue | 19 | % | 10 | % | 15 | % | 12 | % | ||||||||||||||||
Adjusted EBITDA , as a percentage of revenue | 20 | % | 11 | % | 17 | % | 15 | % | ||||||||||||||||
Fourth Quarter Ended | Twelve Months Ended | |||||||||||||||||||||||
April 30, | April 30, | |||||||||||||||||||||||
2011 | 2010 | Pct Chg. | 2011 | 2010 | Pct Chg. | |||||||||||||||||||
NON-GAAP EARNINGS PER SHARE: | ||||||||||||||||||||||||
Net Earnings (GAAP Basis) | $ | 2,753 | $ | 1,329 | 107 | % | $ | 7,364 | $ | 5,704 | 29 | % | ||||||||||||
Amortization of acquisition-related intangibles (2) |
88 | 88 | 0 | % | 452 | 248 | 82 | % | ||||||||||||||||
Stock-based compensation (2) | 165 | 134 | 23 | % | 637 | 505 | 26 | % | ||||||||||||||||
Severance expenses (2) | - | - | - | 134 | - | nm | ||||||||||||||||||
Stock option compensation charge related to the Logility tender offer (2) | - | - | - | - | 141 | nm | ||||||||||||||||||
Expenses related to the Optiant acquisition (3) |
- | 113 | nm | - | 128 | nm | ||||||||||||||||||
Expenses related to the Logility tender offer (3) | - | - | - | - | 552 | nm | ||||||||||||||||||
Adjusted Net Earnings | $ | 3,006 | $ | 1,664 | 81 | % | $ | 8,587 | $ | 7,278 | 18 | % | ||||||||||||
Adjusted non-GAAP diluted earnings per share | $ | 0.11 | $ | 0.06 | 83 | % | $ | 0.33 | $ | 0.28 | 18 | % | ||||||||||||
(1) - Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A shares are shown above. Diluted per share for Class B shares under the two-class method are $0.11 and $0.29 for the three and twelve months ended April 30, 2011, respectively. Diluted per share for Class B shares under the two-class method are $0.05 and $0.23 for the three and twelve months ended April 30, 2010, respectively. | ||||||||||||||||||||||||
(2) - Tax affected using the effective tax rate for the three and twelve months period ended April 30, 2011 and 2010. | ||||||||||||||||||||||||
(3) - Not tax affected due to no tax deduction recorded on these expenses | ||||||||||||||||||||||||
nm- not meaningful | ||||||||||||||||||||||||
American SOFTWARE, INC. | |||||||||
Consolidated Balance Sheet Information | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
April 30, | April 30, | ||||||||
2011 | 2010 | ||||||||
Cash and Short-term Investments | $ | 44,567 | $ | 38,030 | |||||
Accounts Receivable: | |||||||||
Billed | 14,409 | 8,721 | |||||||
Unbilled | 4,151 | 2,419 | |||||||
Total Accounts Receivable, net | 18,560 | 11,140 | |||||||
Prepaids & Other | 2,918 | 3,373 | |||||||
Deferred Tax Asset | 77 | - | |||||||
Current Assets | 66,122 | 52,543 | |||||||
Investments - Non-current | 10,844 | 15,849 | |||||||
PP&E, net | 5,723 | 6,490 | |||||||
Capitalized Software, net | 7,562 | 6,890 | |||||||
Goodwill | 12,601 | 12,601 | |||||||
Other Intangibles, net | 1,880 | 2,677 | |||||||
Other Non-current Assets | 100 | 125 | |||||||
Total Assets | $ | 104,832 | $ | 97,175 | |||||
Accounts Payable | $ | 1,011 | $ | 986 | |||||
Accrued Compensation and Related costs | 4,245 | 2,949 | |||||||
Dividend Payable | 2,345 | 2,284 | |||||||
Other Current Liabilities | 4,499 | 1,986 | |||||||
Deferred Tax Liability - Current | - | 63 | |||||||
Deferred Revenues | 17,307 | 15,147 | |||||||
Current Liabilities | 29,407 | 23,415 | |||||||
Deferred Tax Liability - Long term | 1,375 | 1,480 | |||||||
Shareholders' Equity | 74,050 | 72,280 | |||||||
Total Liabilities & Shareholders' Equity | $ | 104,832 | $ | 97,175 |
CONTACT:
American Software, Inc.
Vincent C. Klinges, 404-264-5477
Chief
Financial Officer