manh-8k_20190423.htm

 

 

United States

Securities And Exchange Commission

Washington, DC 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):  April 23, 2019

 

Manhattan Associates, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

Georgia

 

0-23999

 

58-2373424

(State or Other Jurisdiction of
Incorporation or organization)

 

(Commission
File Number)

 

(I.R.S. Employer
Identification No.)

 

2300 Windy Ridge Parkway, Tenth Floor, Atlanta, Georgia

30339

(Address of Principal Executive Offices)

(Zip Code)

 

(770) 955-7070

(Registrant’s telephone number, including area code)

 

NONE

(Former name or former address, if changed since last report)

 

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:

 

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))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    

 

 

 

 


Item 2.02  Results of Operations and Financial Condition.

 

On April 23, 2019, Manhattan Associates, Inc. (“we”, “our”, “us” or the “Company”) issued a press release providing its financial results for the three months ended March 31, 2019. A copy of this press release is attached as Exhibit 99.1. Pursuant to General Instruction B.2 of Form 8-K, this exhibit is “furnished” and not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.

Non-GAAP Financial Measures in the Press Release

The press release includes, as additional information regarding our operating results, our adjusted operating income and margin, adjusted income tax provision, adjusted net income, adjusted diluted earnings per share and certain adjusted cost measures (collectively, “adjusted results”), which variously exclude the impact of equity-based compensation and acquisition-related costs, and the related income tax effects of these items, as well as the impact of the Tax Cuts and Jobs Act. We have developed our internal reporting, compensation and planning systems using these additional financial measures.

These various measures are not in accordance with, or alternatives for, financial measures calculated in accordance with generally accepted accounting principles in the United States (“GAAP”) and may be different from similarly titled non-GAAP financial measures used by other companies.  Non-GAAP financial measures should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP.

Non-GAAP measures used in the press release exclude the impact of the items described above for the following reasons:

 

 

Equity-based compensation expense typically does not require cash settlement by the Company. We do not include this expense and the related income tax effects when assessing our operating performance, and believe our peers also typically present non-GAAP results that exclude equity-based compensation expense.

 

 

From time to time, we incur acquisition-related costs consisting primarily of (i) accounting and legal expenses, whether or not we ultimately consummate a proposed acquisition, (ii) certain unusual costs, such as employee retention benefits, resulting from pre-acquisition arrangements, and (iii) amortization of acquisition-related intangible assets.  These costs are difficult to predict and, if and when incurred, generally are not expenses associated with our core operations.  We exclude these costs and the related income tax effects from our internal assessments of our operating performance, and believe our peers also typically present non-GAAP results that exclude similar acquisition-related costs.

 

 

The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in a provisional net one-time charge based on a reasonable estimate of the income tax effects. The charge was primarily from a tax on accumulated foreign earnings and the remeasurement of deferred tax assets. We believe tax reform on the scale of the Tax Cuts and Jobs Act is infrequent, and that the resulting charge is therefore an unusual one. We have excluded the charge from our internal assessment of our operating performance and non-GAAP results.

We believe reporting adjusted results facilitates investors’ understanding of our historical operating trends, because it provides supplemental measurement information in evaluating the operating

1

 


results of our business. We also believe that adjusted results provide a basis for comparisons to other companies in the industry and enable investors to evaluate our operating performance in a manner consistent with our internal basis of measurement.  Management refers to adjusted results in making operating decisions because we believe they provide meaningful supplemental information regarding our operational performance and our ability to invest in research and development and fund acquisitions and capital expenditures. In addition, adjusted results facilitate management’s internal comparisons to our historical operating results and comparisons to competitors’ operating results.

Further, we rely on adjusted results as primary measures to review and assess the operating performance of our Company and our management team in connection with our executive compensation and bonus plans. Since most of our employees are not directly involved with decisions surrounding acquisitions, restructurings and other items that are not central to our core operations, we do not believe it is appropriate or fair to have their incentive compensation affected by these items.

 

Item 9.01  Financial Statements and Exhibits.

(d)Exhibits.

Exhibit

 

Number

Description

99.1

Press Release, dated April 23, 2019

 

 

2

 

 


EXHIBIT INDEX

Exhibit

 

Number

Description

99.1

Press Release, dated April 23, 2019

 

3

 


SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

Manhattan Associates, Inc.

 

 

 

By:  /s/ Dennis B. Story

Dennis B. Story

Executive Vice President, Chief Financial Officer and Treasurer

 

 

 

Dated:  April 23, 2019

 

4

 

manh-ex991_6.htm

Exhibit 99.1

 

 

Contact:

 

Dennis Story

 

Rick Fernandez

 

 

Chief Financial Officer

 

Senior Manager, Corporate Communications

 

 

Manhattan Associates, Inc.

 

Manhattan Associates, Inc.

 

 

770-955-7070

 

678-597-6988

 

 

dstory@manh.com

 

rfernandez@manh.com

 

 

 

 

 

 

Manhattan Associates Reports Record First Quarter 2019 Performance

Company raises full-year Revenue and EPS guidance

 

ATLANTA – April 23, 2019 – Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported record total revenue of $148.4 million for the first quarter ended March 31, 2019, applying the new revenue recognition standard retrospectively. GAAP diluted earnings per share for Q1 2019 was $0.32 compared to $0.33 in Q1 2018. Non-GAAP adjusted diluted earnings per share for Q1 2019 was $0.41 compared to $0.37 in Q1 2018.

“We’re very pleased with our start to 2019, delivering record Q1 total revenue and solid earnings per share growth on strong software and global services revenue. Market leading investments in our suite of Manhattan Active™ omnichannel, inventory and supply chain solutions are fueling demand and revenue growth,” said Eddie Capel, Manhattan Associates President and CEO. “Omnichannel, inventory management and supply chain evolution in our target markets have created an acute need for Manhattan’s software, enabling our clients to accelerate growth and Push Possible®. We remain committed to investing in innovation and are bullish on our growth opportunity in 2019 and beyond,” added Mr. Capel.

FIRST QUARTER 2019 FINANCIAL SUMMARY:

 

Consolidated total revenue was $148.4 million in Q1 2019, compared to $130.6 million in Q1 2018. License revenue was $12.4 million in Q1 2019, compared to $7.6 million in Q1 2018. Cloud subscription revenue was $7.9 million in Q1 2019, compared to $4.5 million in Q1 2018. Service revenue was $88.6 million in in Q1 2019, compared to $78.8 million in Q1 2018.

 

 

GAAP diluted earnings per share was $0.32 in Q1 2019 compared to $0.33 in Q1 2018.

 

 

Adjusted diluted earnings per share, a non-GAAP measure, was $0.41 in Q1 2019, compared to $0.37 in Q1 2018.

 


 

 

 

 

GAAP operating income was $28.3 million in Q1 2019, compared to $27.8 million in Q1 2018.

 

 

Adjusted operating income, a non-GAAP measure, was $35.6 million in Q1 2019, compared to $32.3 million in Q1 2018.

 

 

Cash flow from operations was $35.2 million in Q1 2019, compared to $51.3 million in Q1 2018. Days Sales Outstanding was 65 days at March 31, 2019, compared to 64 days at December 31, 2018.

 

 

Cash and investments totaled $104.9 million at March 31, 2019, compared to $100.6 million at December 31, 2018.

 

 

During the three months ended March 31, 2019, the Company repurchased 463,680 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $24.9 million. In April 2019, our Board authorized the Company to repurchase up to an aggregate of $50 million of the Company’s common stock.

 



 

 

 

2019 GUIDANCE

Manhattan Associates provides the following updated revenue, operating margin and diluted earnings per share guidance for the full year 2019:

 

 

Guidance Range - 2019 Full Year

 

($'s in millions, except operating margin and EPS)

$ Range

 

 

% Growth Range

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue - current guidance

$

582

 

 

$

592

 

 

4%

 

 

6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue - previous guidance

$

564

 

 

$

576

 

 

1%

 

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating margin - current guidance

 

15.6

%

 

 

15.8

%

 

 

 

 

 

 

 

 

 

 

Equity-based compensation

 

5.4

%

 

 

5.4

%

 

 

 

 

 

 

 

 

 

 

Adjusted operating margin(1) - current guidance

 

21.0

%

 

 

21.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating margin - previous guidance

 

15.5

%

 

 

15.8

%

 

 

 

 

 

 

 

 

 

 

Equity-based compensation

 

5.5

%

 

 

5.4

%

 

 

 

 

 

 

 

 

 

 

Adjusted operating margin(1) - previous guidance

 

21.0

%

 

 

21.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (EPS):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP EPS - current guidance

$

1.05

 

 

$

1.09

 

 

-34%

 

 

-31%

 

 

 

Equity-based compensation, net of tax

 

0.37

 

 

 

0.37

 

 

 

 

 

 

 

 

 

 

 

Adjusted EPS(1) - current guidance

$

1.42

 

 

$

1.46

 

 

-21%

 

 

-18%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP EPS - previous guidance

$

1.03

 

 

$

1.07

 

 

-35%

 

 

-32%

 

 

 

Equity-based compensation, net of tax

 

0.35

 

 

 

0.35

 

 

 

 

 

 

 

 

 

 

 

Adjusted EPS(1) - previous guidance

$

1.38

 

 

$

1.42

 

 

-23%

 

 

-21%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based

 

 

 

compensation and acquisition-related costs, and the related income tax effects of these items if applicable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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). Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance above, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.


 

 

 

CONFERENCE CALL

The Company’s conference call regarding its first quarter financial results will be held today, April 23, 2019, at 4:30 p.m. Eastern Time. We invite investors 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.

Those who cannot listen to the live broadcast may access a replay 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 1797903 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 2019 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

The Company provides adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share in this press release as additional information regarding the Company’s historical and projected operating results. These measures are not in accordance with – or alternatives to – GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes 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 supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its 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 three months ended March 31, 2019.  

Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation, acquisition-related costs and the amortization of these costs, and (from time to time) restructuring charges – all net of income tax effects, and the impact of the Tax Cuts and Jobs Act. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.


 

 

 

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers. 

Manhattan Associates designs, builds and delivers leading edge cloud and on-premise solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel 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, without limitation, the information set forth under “2019 Guidance,” statements we make about market adoption of our cloud-based solution and other statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate,” and similar expressions.  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, risks related from transitioning our business from a traditional perpetual license software company (generally hosted by our customers on their own premises and equipment) to a subscription-based software-as-a service/cloud-based model, disruption in the retail sector, the possible effect of new U.S. tariffs on imports from other countries (and possible responsive tariffs on U.S. exports by other countries) on international commerce, 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, 2018 and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. 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,

 

 

 

2019

 

 

2018

 

 

 

(unaudited)

 

 

(unaudited)

 

Revenue:

 

 

 

 

 

 

 

 

Cloud subscriptions

 

$

7,859

 

 

$

4,469

 

Software license

 

 

12,414

 

 

 

7,555

 

Maintenance

 

 

36,099

 

 

 

36,397

 

Services

 

 

88,631

 

 

 

78,757

 

Hardware

 

 

3,401

 

 

 

3,391

 

Total revenue

 

 

148,404

 

 

 

130,569

 

Costs and expenses:

 

 

 

 

 

 

 

 

Cost of software license

 

 

592

 

 

 

1,308

 

Cost of cloud subscriptions, maintenance and services

 

 

66,578

 

 

 

56,486

 

Research and development

 

 

21,213

 

 

 

17,059

 

Sales and marketing

 

 

14,781

 

 

 

12,884

 

General and administrative

 

 

15,050

 

 

 

12,800

 

Depreciation and amortization

 

 

1,914

 

 

 

2,202

 

Total costs and expenses

 

 

120,128

 

 

 

102,739

 

Operating income

 

 

28,276

 

 

 

27,830

 

Other (loss) income, net

 

 

(371

)

 

 

721

 

Income before income taxes

 

 

27,905

 

 

 

28,551

 

Income tax provision

 

 

6,933

 

 

 

5,899

 

Net income

 

$

20,972

 

 

$

22,652

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.32

 

 

$

0.34

 

Diluted earnings per share

 

$

0.32

 

 

$

0.33

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

Basic

 

 

64,909

 

 

 

67,553

 

Diluted

 

 

65,204

 

 

 

67,736

 

 

 


 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Reconciliation of Selected GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

 

 

 

 

 

Three Months Ended March 31,

 

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

$

28,276

 

 

$

27,830

 

Equity-based compensation (a)

 

 

 

7,182

 

 

 

4,343

 

Purchase amortization (c)

 

 

 

108

 

 

 

107

 

Adjusted operating income (Non-GAAP)

 

 

$

35,566

 

 

$

32,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

$

6,933

 

 

$

5,899

 

Equity-based compensation (a)

 

 

 

1,760

 

 

 

1,064

 

Tax (deficiency) benefit of stock awards vested (b)

 

 

 

(96

)

 

 

749

 

Purchase amortization (c)

 

 

 

26

 

 

 

26

 

U.S. Tax Cuts and Jobs Act impact (d)

 

 

 

-

 

 

 

348

 

Adjusted income tax provision (Non-GAAP)

 

 

$

8,623

 

 

$

8,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

$

20,972

 

 

$

22,652

 

Equity-based compensation (a)

 

 

 

5,422

 

 

 

3,280

 

Tax (deficiency) benefit of stock awards vested (b)

 

 

 

96

 

 

 

(749

)

Purchase amortization (c)

 

 

 

82

 

 

 

81

 

U.S. Tax Cuts and Jobs Act impact (d)

 

 

 

-

 

 

 

(348

)

Adjusted net income (Non-GAAP)

 

 

$

26,572

 

 

$

24,916

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

 

$

0.32

 

 

$

0.33

 

Equity-based compensation (a)

 

 

 

0.08

 

 

 

0.05

 

Tax (deficiency) benefit of stock awards vested (b)

 

 

 

-

 

 

 

(0.01

)

Purchase amortization (c)

 

 

 

-

 

 

 

-

 

U.S. Tax Cuts and Jobs Act impact (d)

 

 

 

-

 

 

 

(0.01

)

Adjusted diluted EPS (Non-GAAP)

 

 

$

0.41

 

 

$

0.37

 

 

 

 

 

 

 

 

 

 

 

Fully diluted shares

 

 

 

65,204

 

 

 

67,736

 

 

(a)

Adjusted results exclude all equity-based compensation, to facilitate comparison with our peers and for the other reasons explained in our Current Report on Form 8-K filed today with the SEC on the date hereof. Equity-based compensation is included in the following GAAP operating expense lines for the three months ended March 31, 2019 and 2018:

 

 

 

 

Three Months Ended March 31,

 

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

Cost of services

 

 

$

2,097

 

 

$

1,117

 

Research and development

 

 

 

1,376

 

 

 

921

 

Sales and marketing

 

 

 

819

 

 

 

558

 

General and administrative

 

 

 

2,890

 

 

 

1,747

 

Total equity-based compensation

 

 

$

7,182

 

 

$

4,343

 

 

(b)

Adjustments represent the excess tax benefits and tax deficiencies of the stock awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible for an award of equity instruments on our tax return is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we excluded equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other

 

 


 

reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also excluded the related tax benefit (expense) generated upon their vesting.

 

(c)

Adjustments represent purchased intangibles amortization from a prior acquisition. We exclude that amortization from adjusted results to facilitate comparison with our 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.

 

(d)

In the fourth quarter of 2017, we recorded a provisional net one-time tax of $2.8 million due to the enactment of the Tax Cuts and Jobs Act in December 2017. We calculated that amount based on a reasonable estimate of the income tax effects, primarily from a tax on accumulated foreign earnings and the remeasurement of deferred tax assets. We adjusted our estimate by $0.3 million during the three months ended March 31, 2018.


 

 


 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

March 31, 2019

 

 

December 31, 2018

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

104,879

 

 

$

99,126

 

Short-term investments

 

 

-

 

 

 

1,440

 

Accounts receivable, net of allowance of $2,162 and $2,589, respectively

 

 

107,352

 

 

 

100,108

 

Prepaid expenses and other current assets

 

 

19,065

 

 

 

14,708

 

Total current assets

 

 

231,296

 

 

 

215,382

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

13,327

 

 

 

14,318

 

Operating lease right-of-use assets

 

 

39,869

 

 

 

-

 

Goodwill, net

 

 

62,237

 

 

 

62,240

 

Deferred income taxes

 

 

3,664

 

 

 

5,442

 

Other assets

 

 

9,118

 

 

 

9,768

 

Total assets

 

$

359,511

 

 

$

307,150

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

16,940

 

 

$

18,181

 

Accrued compensation and benefits

 

 

27,164

 

 

 

29,485

 

Accrued and other liabilities

 

 

20,736

 

 

 

12,161

 

Deferred revenue

 

 

94,363

 

 

 

81,894

 

Income taxes payable

 

 

6,331

 

 

 

3,543

 

Total current liabilities

 

 

165,534

 

 

 

145,264

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities, long-term

 

 

35,896

 

 

 

-

 

Other non-current liabilities

 

 

12,681

 

 

 

14,739

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2019 and 2018

 

 

-

 

 

 

-

 

Common stock, $0.01 par value; 200,000,000 shares authorized; 64,593,909 and 64,860,419 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively

 

 

646

 

 

 

649

 

Retained earnings

 

 

161,356

 

 

 

163,359

 

Accumulated other comprehensive loss

 

 

(16,602

)

 

 

(16,861

)

Total shareholders' equity

 

 

145,400

 

 

 

147,147

 

Total liabilities and shareholders' equity

 

$

359,511

 

 

$

307,150

 

 

 

 


 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

 

 

(unaudited)

 

 

(unaudited)

 

Operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

20,972

 

 

$

22,652

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,914

 

 

 

2,202

 

Equity-based compensation

 

 

7,182

 

 

 

4,343

 

Loss (gain) on disposal of equipment

 

 

6

 

 

 

(3

)

Deferred income taxes

 

 

1,782

 

 

 

1,587

 

Unrealized foreign currency loss (gain)

 

 

381

 

 

 

(333

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(7,478

)

 

 

7,502

 

Other assets

 

 

(3,021

)

 

 

(4,223

)

Accounts payable, accrued and other liabilities

 

 

(809

)

 

 

5,435

 

Income taxes

 

 

1,831

 

 

 

2,286

 

Deferred revenue

 

 

12,427

 

 

 

9,853

 

Net cash provided by operating activities

 

 

35,187

 

 

 

51,301

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(616

)

 

 

(2,174

)

Net maturities (purchases) of investments

 

 

1,439

 

 

 

(12,598

)

Net cash provided by (used in) investing activities

 

 

823

 

 

 

(14,772

)

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

Purchase of common stock

 

 

(30,160

)

 

 

(55,815

)

Net cash used in financing activities

 

 

(30,160

)

 

 

(55,815

)

 

 

 

 

 

 

 

 

 

Foreign currency impact on cash

 

 

(97

)

 

 

432

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

5,753

 

 

 

(18,854

)

Cash and cash equivalents at beginning of period

 

 

99,126

 

 

 

125,522

 

Cash and cash equivalents at end of period

 

$

104,879

 

 

$

106,668

 

 


 

 


 

MANHATTAN ASSOCIATES, INC.

SUPPLEMENTAL INFORMATION

1.

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

 

 

2018

 

 

2019

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

GAAP Diluted EPS

$

0.33

 

 

$

0.42

 

 

$

0.43

 

 

$

0.40

 

 

$

1.58

 

 

$

0.32

 

Adjustments to GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based compensation

 

0.05

 

 

 

0.06

 

 

 

0.06

 

 

 

0.06

 

 

 

0.23

 

 

 

0.08

 

Tax benefit of stock awards vested

 

(0.01

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(0.01

)

 

 

-

 

Purchase amortization

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

U.S. Tax Cuts and Jobs Act impact

 

(0.01

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Adjusted Diluted EPS

$

0.37

 

 

$

0.47

 

 

$

0.49

 

 

$

0.46

 

 

$

1.79

 

 

$

0.41

 

Fully Diluted Shares

 

67,736

 

 

 

66,535

 

 

 

65,901

 

 

 

65,526

 

 

 

66,434

 

 

 

65,204

 

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

 

 

2018

 

 

2019

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

Revenue:

 

Americas

$

104,615

 

 

$

112,945

 

 

$

113,886

 

 

$

114,040

 

 

$

445,486

 

 

$

114,873

 

EMEA

 

19,164

 

 

 

21,356

 

 

 

21,181

 

 

 

23,043

 

 

 

84,744

 

 

 

26,288

 

APAC

 

6,790

 

 

 

7,570

 

 

 

7,284

 

 

 

7,283

 

 

 

28,927

 

 

 

7,243

 

 

$

130,569

 

 

$

141,871

 

 

$

142,351

 

 

$

144,366

 

 

$

559,157

 

 

$

148,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating Income:

 

Americas

$

20,318

 

 

$

26,589

 

 

$

26,200

 

 

$

24,422

 

 

$

97,529

 

 

$

18,051

 

EMEA

 

5,475

 

 

 

6,252

 

 

 

7,413

 

 

 

7,297

 

 

 

26,437

 

 

 

7,734

 

APAC

 

2,037

 

 

 

2,844

 

 

 

2,483

 

 

 

2,557

 

 

 

9,921

 

 

 

2,491

 

 

$

27,830

 

 

$

35,685

 

 

$

36,096

 

 

$

34,276

 

 

$

133,887

 

 

$

28,276

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (pre-tax):

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based

   compensation

$

4,343

 

 

$

4,927

 

 

$

5,303

 

 

$

5,291

 

 

$

19,864

 

 

$

7,182

 

Purchase amortization

 

107

 

 

 

108

 

 

 

107

 

 

 

108

 

 

 

430

 

 

 

108

 

 

$

4,450

 

 

$

5,035

 

 

$

5,410

 

 

$

5,399

 

 

$

20,294

 

 

$

7,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-GAAP Operating Income:

 

Americas

$

24,768

 

 

$

31,624

 

 

$

31,610

 

 

$

29,821

 

 

$