manh-10q_20190630.htm
false 2019 Q2 MANHATTAN ASSOCIATES INC 0001056696 --12-31 Large Accelerated Filer false 582373424 P10Y 582373424 0001056696 2019-01-01 2019-06-30 xbrli:shares 0001056696 2019-07-22 iso4217:USD 0001056696 2019-06-30 0001056696 2018-12-31 iso4217:USD xbrli:shares 0001056696 manh:CloudSubscriptionsMember 2019-04-01 2019-06-30 0001056696 manh:CloudSubscriptionsMember 2018-04-01 2018-06-30 0001056696 manh:CloudSubscriptionsMember 2019-01-01 2019-06-30 0001056696 manh:CloudSubscriptionsMember 2018-01-01 2018-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember 2019-04-01 2019-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember 2018-04-01 2018-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember 2019-01-01 2019-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember 2018-01-01 2018-06-30 0001056696 us-gaap:MaintenanceMember 2019-04-01 2019-06-30 0001056696 us-gaap:MaintenanceMember 2018-04-01 2018-06-30 0001056696 us-gaap:MaintenanceMember 2019-01-01 2019-06-30 0001056696 us-gaap:MaintenanceMember 2018-01-01 2018-06-30 0001056696 us-gaap:ServiceOtherMember 2019-04-01 2019-06-30 0001056696 us-gaap:ServiceOtherMember 2018-04-01 2018-06-30 0001056696 us-gaap:ServiceOtherMember 2019-01-01 2019-06-30 0001056696 us-gaap:ServiceOtherMember 2018-01-01 2018-06-30 0001056696 manh:HardwareMember 2019-04-01 2019-06-30 0001056696 manh:HardwareMember 2018-04-01 2018-06-30 0001056696 manh:HardwareMember 2019-01-01 2019-06-30 0001056696 manh:HardwareMember 2018-01-01 2018-06-30 0001056696 2019-04-01 2019-06-30 0001056696 2018-04-01 2018-06-30 0001056696 2018-01-01 2018-06-30 0001056696 manh:CloudSubscriptionsMaintenanceAndServicesMember 2019-04-01 2019-06-30 0001056696 manh:CloudSubscriptionsMaintenanceAndServicesMember 2018-04-01 2018-06-30 0001056696 manh:CloudSubscriptionsMaintenanceAndServicesMember 2019-01-01 2019-06-30 0001056696 manh:CloudSubscriptionsMaintenanceAndServicesMember 2018-01-01 2018-06-30 0001056696 2017-12-31 0001056696 2018-06-30 0001056696 us-gaap:CommonStockMember 2019-03-31 0001056696 us-gaap:RetainedEarningsMember 2019-03-31 0001056696 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001056696 2019-03-31 0001056696 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001056696 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001056696 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001056696 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001056696 us-gaap:CommonStockMember 2019-06-30 0001056696 us-gaap:RetainedEarningsMember 2019-06-30 0001056696 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001056696 us-gaap:CommonStockMember 2018-12-31 0001056696 us-gaap:RetainedEarningsMember 2018-12-31 0001056696 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001056696 us-gaap:CommonStockMember 2019-01-01 2019-06-30 0001056696 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0001056696 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0001056696 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0001056696 us-gaap:CommonStockMember 2018-03-31 0001056696 us-gaap:RetainedEarningsMember 2018-03-31 0001056696 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001056696 2018-03-31 0001056696 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001056696 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001056696 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001056696 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001056696 us-gaap:CommonStockMember 2018-06-30 0001056696 us-gaap:RetainedEarningsMember 2018-06-30 0001056696 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001056696 us-gaap:CommonStockMember 2017-12-31 0001056696 us-gaap:RetainedEarningsMember 2017-12-31 0001056696 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001056696 us-gaap:CommonStockMember 2018-01-01 2018-06-30 0001056696 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0001056696 us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0001056696 us-gaap:RetainedEarningsMember us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-06-30 0001056696 us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-06-30 0001056696 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0001056696 2019-01-01 0001056696 manh:CapitalizedContractCostToPriorPeriod1Member 2019-04-01 2019-06-30 0001056696 manh:CapitalizedContractCostToPriorPeriod1Member 2019-01-01 2019-06-30 0001056696 manh:CapitalizedContractCostToPriorPeriodTwoMember 2019-04-01 2019-06-30 xbrli:pure 0001056696 2021-04-01 2019-06-30 0001056696 manh:SalesCommissionMember 2019-06-30 0001056696 us-gaap:OtherAssetsMember manh:SalesCommissionMember 2019-06-30 0001056696 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember manh:SalesCommissionMember 2019-06-30 0001056696 us-gaap:FairValueInputsLevel2Member 2019-06-30 0001056696 us-gaap:FairValueInputsLevel3Member 2019-06-30 manh:Agreement 0001056696 country:IN 2019-01-01 2019-06-30 0001056696 country:IN 2019-06-30 0001056696 manh:AtlantaMember 2014-01-01 2014-12-31 0001056696 2018-01-01 2018-12-31 0001056696 us-gaap:RestrictedStockUnitsRSUMember 2019-04-01 2019-06-30 0001056696 us-gaap:RestrictedStockUnitsRSUMember 2018-04-01 2018-06-30 0001056696 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-06-30 0001056696 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-06-30 0001056696 us-gaap:RestrictedStockUnitsRSUMember 2018-12-31 0001056696 us-gaap:RestrictedStockUnitsRSUMember 2019-06-30 manh:Segment 0001056696 srt:AmericasMember 2019-04-01 2019-06-30 0001056696 srt:AmericasMember 2018-04-01 2018-06-30 0001056696 srt:AmericasMember 2019-01-01 2019-06-30 0001056696 srt:AmericasMember 2018-01-01 2018-06-30 0001056696 manh:CloudSubscriptionsMember srt:AmericasMember 2019-04-01 2019-06-30 0001056696 manh:CloudSubscriptionsMember us-gaap:EMEAMember 2019-04-01 2019-06-30 0001056696 manh:CloudSubscriptionsMember srt:AsiaPacificMember 2019-04-01 2019-06-30 0001056696 manh:CloudSubscriptionsMember srt:AmericasMember 2018-04-01 2018-06-30 0001056696 manh:CloudSubscriptionsMember us-gaap:EMEAMember 2018-04-01 2018-06-30 0001056696 manh:CloudSubscriptionsMember srt:AsiaPacificMember 2018-04-01 2018-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember srt:AmericasMember 2019-04-01 2019-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember us-gaap:EMEAMember 2019-04-01 2019-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember srt:AsiaPacificMember 2019-04-01 2019-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember srt:AmericasMember 2018-04-01 2018-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember us-gaap:EMEAMember 2018-04-01 2018-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember srt:AsiaPacificMember 2018-04-01 2018-06-30 0001056696 us-gaap:MaintenanceMember srt:AmericasMember 2019-04-01 2019-06-30 0001056696 us-gaap:MaintenanceMember us-gaap:EMEAMember 2019-04-01 2019-06-30 0001056696 us-gaap:MaintenanceMember srt:AsiaPacificMember 2019-04-01 2019-06-30 0001056696 us-gaap:MaintenanceMember srt:AmericasMember 2018-04-01 2018-06-30 0001056696 us-gaap:MaintenanceMember us-gaap:EMEAMember 2018-04-01 2018-06-30 0001056696 us-gaap:MaintenanceMember srt:AsiaPacificMember 2018-04-01 2018-06-30 0001056696 us-gaap:ServiceOtherMember srt:AmericasMember 2019-04-01 2019-06-30 0001056696 us-gaap:ServiceOtherMember us-gaap:EMEAMember 2019-04-01 2019-06-30 0001056696 us-gaap:ServiceOtherMember srt:AsiaPacificMember 2019-04-01 2019-06-30 0001056696 us-gaap:ServiceOtherMember srt:AmericasMember 2018-04-01 2018-06-30 0001056696 us-gaap:ServiceOtherMember us-gaap:EMEAMember 2018-04-01 2018-06-30 0001056696 us-gaap:ServiceOtherMember srt:AsiaPacificMember 2018-04-01 2018-06-30 0001056696 manh:HardwareMember srt:AmericasMember 2019-04-01 2019-06-30 0001056696 manh:HardwareMember srt:AmericasMember 2018-04-01 2018-06-30 0001056696 manh:HardwareMember srt:AsiaPacificMember 2018-04-01 2018-06-30 0001056696 us-gaap:EMEAMember 2019-04-01 2019-06-30 0001056696 srt:AsiaPacificMember 2019-04-01 2019-06-30 0001056696 us-gaap:EMEAMember 2018-04-01 2018-06-30 0001056696 srt:AsiaPacificMember 2018-04-01 2018-06-30 0001056696 manh:CloudSubscriptionsMember srt:AmericasMember 2019-01-01 2019-06-30 0001056696 manh:CloudSubscriptionsMember us-gaap:EMEAMember 2019-01-01 2019-06-30 0001056696 manh:CloudSubscriptionsMember srt:AsiaPacificMember 2019-01-01 2019-06-30 0001056696 manh:CloudSubscriptionsMember srt:AmericasMember 2018-01-01 2018-06-30 0001056696 manh:CloudSubscriptionsMember us-gaap:EMEAMember 2018-01-01 2018-06-30 0001056696 manh:CloudSubscriptionsMember srt:AsiaPacificMember 2018-01-01 2018-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember srt:AmericasMember 2019-01-01 2019-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember us-gaap:EMEAMember 2019-01-01 2019-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember srt:AsiaPacificMember 2019-01-01 2019-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember srt:AmericasMember 2018-01-01 2018-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember us-gaap:EMEAMember 2018-01-01 2018-06-30 0001056696 us-gaap:LicenseAndMaintenanceMember srt:AsiaPacificMember 2018-01-01 2018-06-30 0001056696 us-gaap:MaintenanceMember srt:AmericasMember 2019-01-01 2019-06-30 0001056696 us-gaap:MaintenanceMember us-gaap:EMEAMember 2019-01-01 2019-06-30 0001056696 us-gaap:MaintenanceMember srt:AsiaPacificMember 2019-01-01 2019-06-30 0001056696 us-gaap:MaintenanceMember srt:AmericasMember 2018-01-01 2018-06-30 0001056696 us-gaap:MaintenanceMember us-gaap:EMEAMember 2018-01-01 2018-06-30 0001056696 us-gaap:MaintenanceMember srt:AsiaPacificMember 2018-01-01 2018-06-30 0001056696 us-gaap:ServiceOtherMember srt:AmericasMember 2019-01-01 2019-06-30 0001056696 us-gaap:ServiceOtherMember us-gaap:EMEAMember 2019-01-01 2019-06-30 0001056696 us-gaap:ServiceOtherMember srt:AsiaPacificMember 2019-01-01 2019-06-30 0001056696 us-gaap:ServiceOtherMember srt:AmericasMember 2018-01-01 2018-06-30 0001056696 us-gaap:ServiceOtherMember us-gaap:EMEAMember 2018-01-01 2018-06-30 0001056696 us-gaap:ServiceOtherMember srt:AsiaPacificMember 2018-01-01 2018-06-30 0001056696 manh:HardwareMember srt:AmericasMember 2019-01-01 2019-06-30 0001056696 manh:HardwareMember srt:AmericasMember 2018-01-01 2018-06-30 0001056696 manh:HardwareMember srt:AsiaPacificMember 2018-01-01 2018-06-30 0001056696 us-gaap:EMEAMember 2019-01-01 2019-06-30 0001056696 srt:AsiaPacificMember 2019-01-01 2019-06-30 0001056696 us-gaap:EMEAMember 2018-01-01 2018-06-30 0001056696 srt:AsiaPacificMember 2018-01-01 2018-06-30 0001056696 manh:WarehouseManagementProductGroupMember us-gaap:ProductConcentrationRiskMember us-gaap:SalesRevenueNetMember 2019-01-01 2019-06-30 0001056696 srt:AmericasMember 2019-06-30 0001056696 us-gaap:EMEAMember 2019-06-30 0001056696 srt:AsiaPacificMember 2019-06-30

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

[Mark One]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number:  0-23999

MANHATTAN ASSOCIATES, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Georgia

 

 

58-2373424

(State or Other Jurisdiction of

Incorporation or Organization)

 

 

(I.R.S. Employer

Identification No.)

 

2300 Windy Ridge Parkway, Tenth Floor

 

 

 

Atlanta, Georgia

 

 

30339

(Address of Principal Executive Offices)

 

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code:  (770) 955-7070

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common stock

MANH

Nasdaq Global Select Market

 

 

 

Indicate by check mark whether the Registrant:  (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.   Yes     No  

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes      No  

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

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.    

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes     No  

The number of shares of the Registrant’s class of capital stock outstanding as of July 22, 2019, the latest practicable date, is as follows: 64,325,170 shares of common stock, $0.01 par value per share.

 

 


MANHATTAN ASSOCIATES, INC.

FORM 10-Q

Quarter Ended June 30, 2019

TABLE OF CONTENTS

PART I

 

 

Financial Information

 

 

 

 

Item 1.

Financial Statements.

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2019 (unaudited) and December 31, 2018

3

 

 

Condensed Consolidated Statements of Income for the three and six months ended June 30, 2019 and 2018 (unaudited)

4

 

 

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 and 2018 (unaudited)

5

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018 (unaudited)

6

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2019 and 2018 (unaudited)

7

 

 

Notes to Condensed Consolidated Financial Statements (unaudited)

8

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

15

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

27

 

 

 

Item 4.

Controls and Procedures.

28

 

 

 

 

PART II

 

 

 

 

 

OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings.

28

 

 

 

Item 1A.

Risk Factors.

28

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

29

 

 

 

Item 3.

Defaults Upon Senior Securities.

29

 

 

 

Item 4.

Mine Safety Disclosures.

29

 

 

 

Item 5.

Other Information.

29

 

 

 

Item 6.

Exhibits.

29

 

 

 

Signatures.

32

 

 

 

 

2


PART I

FINANCIAL INFORMATION

Item 1.

Financial Statements

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

June 30, 2019

 

 

December 31, 2018

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

119,401

 

 

$

99,126

 

Short-term investments

 

 

-

 

 

 

1,440

 

Accounts receivable, net of allowance of $1,678 and $2,589, respectively

 

 

100,291

 

 

 

100,108

 

Prepaid expenses and other current assets

 

 

19,865

 

 

 

14,708

 

Total current assets

 

 

239,557

 

 

 

215,382

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

14,512

 

 

 

14,318

 

Operating lease right-of-use assets

 

 

39,701

 

 

 

-

 

Goodwill, net

 

 

62,239

 

 

 

62,240

 

Deferred income taxes

 

 

5,174

 

 

 

5,442

 

Other assets

 

 

11,000

 

 

 

9,768

 

Total assets

 

$

372,183

 

 

$

307,150

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

17,272

 

 

$

18,181

 

Accrued compensation and benefits

 

 

34,130

 

 

 

29,485

 

Accrued and other liabilities

 

 

18,448

 

 

 

12,161

 

Deferred revenue

 

 

98,195

 

 

 

81,894

 

Income taxes payable

 

 

1,087

 

 

 

3,543

 

Total current liabilities

 

 

169,132

 

 

 

145,264

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities, long-term

 

 

35,800

 

 

 

-

 

Other non-current liabilities

 

 

12,564

 

 

 

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; 64,322,067 and 64,860,419 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively

 

 

643

 

 

 

649

 

Retained earnings

 

 

170,668

 

 

 

163,359

 

Accumulated other comprehensive loss

 

 

(16,624

)

 

 

(16,861

)

Total shareholders' equity

 

 

154,687

 

 

 

147,147

 

Total liabilities and shareholders' equity

 

$

372,183

 

 

$

307,150

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

 

 

3


Item 1.

Financial Statements (continued)

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud subscriptions

 

$

9,009

 

 

$

5,377

 

 

$

16,868

 

 

$

9,846

 

Software license

 

 

11,721

 

 

 

12,973

 

 

 

24,135

 

 

 

20,528

 

Maintenance

 

 

37,323

 

 

 

36,993

 

 

 

73,422

 

 

 

73,390

 

Services

 

 

93,951

 

 

 

82,267

 

 

 

182,582

 

 

 

161,024

 

Hardware

 

 

2,337

 

 

 

4,261

 

 

 

5,738

 

 

 

7,652

 

Total revenue

 

 

154,341

 

 

 

141,871

 

 

 

302,745

 

 

 

272,440

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of software license

 

 

623

 

 

 

2,096

 

 

 

1,215

 

 

 

3,404

 

Cost of cloud subscriptions, maintenance and services

 

 

70,955

 

 

 

56,985

 

 

 

137,533

 

 

 

113,471

 

Research and development

 

 

21,997

 

 

 

18,176

 

 

 

43,210

 

 

 

35,235

 

Sales and marketing

 

 

14,520

 

 

 

13,809

 

 

 

29,301

 

 

 

26,693

 

General and administrative

 

 

16,805

 

 

 

12,885

 

 

 

31,855

 

 

 

25,685

 

Depreciation and amortization

 

 

1,859

 

 

 

2,235

 

 

 

3,773

 

 

 

4,437

 

Total costs and expenses

 

 

126,759

 

 

 

106,186

 

 

 

246,887

 

 

 

208,925

 

Operating income

 

 

27,582

 

 

 

35,685

 

 

 

55,858

 

 

 

63,515

 

Other (loss) income, net

 

 

(71

)

 

 

986

 

 

 

(442

)

 

 

1,707

 

Income before income taxes

 

 

27,511

 

 

 

36,671

 

 

 

55,416

 

 

 

65,222

 

Income tax provision

 

 

6,586

 

 

 

9,003

 

 

 

13,519

 

 

 

14,902

 

Net income

 

$

20,925

 

 

$

27,668

 

 

$

41,897

 

 

$

50,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.32

 

 

$

0.42

 

 

$

0.65

 

 

$

0.75

 

Diluted earnings per share

 

$

0.32

 

 

$

0.42

 

 

$

0.64

 

 

$

0.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

64,623

 

 

 

66,429

 

 

 

64,765

 

 

 

66,987

 

Diluted

 

 

65,093

 

 

 

66,535

 

 

 

65,148

 

 

 

67,132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

 

 

4


Item 1.

Financial Statements (continued)

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(in thousands)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

Net income

 

$

20,925

 

 

$

27,668

 

 

$

41,897

 

 

$

50,320

 

Foreign currency translation adjustment

 

 

(22

)

 

 

(3,402

)

 

 

237

 

 

 

(3,571

)

Comprehensive income

 

$

20,903

 

 

$

24,266

 

 

$

42,134

 

 

$

46,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

 

 

5


 

Item 1.

Financial Statements (continued)

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

 

(unaudited)

 

 

(unaudited)

 

Operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

41,897

 

 

$

50,320

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

3,773

 

 

 

4,437

 

Equity-based compensation

 

 

15,644

 

 

 

9,270

 

Gain on disposal of equipment

 

 

(121

)

 

 

(37

)

Deferred income taxes

 

 

272

 

 

 

803

 

Unrealized foreign currency loss (gain)

 

 

156

 

 

 

(1,359

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(312

)

 

 

(7,913

)

Other assets

 

 

(6,144

)

 

 

(5,217

)

Accounts payable, accrued and other liabilities

 

 

4,238

 

 

 

15,846

 

Income taxes

 

 

(3,145

)

 

 

(14,300

)

Deferred revenue

 

 

16,149

 

 

 

16,244

 

Net cash provided by operating activities

 

 

72,407

 

 

 

68,094

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(3,305

)

 

 

(4,055

)

Net maturities (purchases) of investments

 

 

1,439

 

 

 

(5,196

)

Net cash used in investing activities

 

 

(1,866

)

 

 

(9,251

)

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

Purchase of common stock

 

 

(50,238

)

 

 

(103,714

)

Net cash used in financing activities

 

 

(50,238

)

 

 

(103,714

)

 

 

 

 

 

 

 

 

 

Foreign currency impact on cash

 

 

(28

)

 

 

(1,617

)

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

20,275

 

 

 

(46,488

)

Cash and cash equivalents at beginning of period

 

 

99,126

 

 

 

125,522

 

Cash and cash equivalents at end of period

 

$

119,401

 

 

$

79,034

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

 

6


Item 1.

Financial Statements (continued)

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity

(in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Retained

 

 

Comprehensive

 

 

Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

(Loss) Income

 

 

Equity

 

For the Three Months Ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2019 (unaudited)

 

 

64,593,909

 

 

$

646

 

 

$

-

 

 

$

161,356

 

 

$

(16,602

)

 

$

145,400

 

Repurchase of common stock

 

 

(303,292

)

 

 

(3

)

 

 

(8,462

)

 

 

(11,613

)

 

 

-

 

 

 

(20,078

)

Restricted stock units issuance

 

 

31,450

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Equity-based compensation

 

 

-

 

 

 

-

 

 

 

8,462

 

 

 

-

 

 

 

-

 

 

 

8,462

 

Foreign currency translation adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(22

)

 

 

(22

)

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

20,925

 

 

 

-

 

 

 

20,925

 

Balance, June 30, 2019 (unaudited)

 

 

64,322,067

 

 

$

643

 

 

$

-

 

 

$

170,668

 

 

$

(16,624

)

 

$

154,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2018 (audited)

 

 

64,860,419

 

 

$

649

 

 

$

-

 

 

$

163,359

 

 

$

(16,861

)

 

$

147,147

 

Repurchase of common stock

 

 

(873,198

)

 

 

(9

)

 

 

(15,641

)

 

 

(34,588

)

 

 

-

 

 

 

(50,238

)

Restricted stock units issuance

 

 

334,846

 

 

 

3

 

 

 

(3

)

 

 

-

 

 

 

-

 

 

 

-

 

Equity-based compensation

 

 

-

 

 

 

-

 

 

 

15,644

 

 

 

-

 

 

 

-

 

 

 

15,644

 

Foreign currency translation adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

237

 

 

 

237

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

41,897

 

 

 

-

 

 

 

41,897

 

Balance, June 30, 2019 (unaudited)

 

 

64,322,067

 

 

$

643

 

 

$

-

 

 

$

170,668

 

 

$

(16,624

)

 

$

154,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2018 (unaudited)

 

 

66,819,431

 

 

$

668

 

 

$

-

 

 

$

159,288

 

 

$

(12,008

)

 

$

147,948

 

Repurchase of common stock

 

 

(1,083,203

)

 

 

(11

)

 

 

(4,926

)

 

 

(42,962

)

 

 

-

 

 

 

(47,899

)

Restricted stock units issuance

 

 

23,507

 

 

 

1

 

 

 

(1

)

 

 

-

 

 

 

-

 

 

 

-

 

Equity-based compensation

 

 

-

 

 

 

-

 

 

 

4,927

 

 

 

-

 

 

 

-

 

 

 

4,927

 

Foreign currency translation adjustment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,402

)

 

 

(3,402

)

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

27,668

 

 

 

-

 

 

 

27,668

 

Balance, June 30, 2018 (unaudited)

 

 

65,759,735

 

 

$

658

 

 

$

-

 

 

$

143,994

 

 

$

(15,410

)

 

$

129,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2017 (audited)

 

 

67,776,138

 

 

$

678

 

 

$

-