8-K
0001056696false00010566962023-10-242023-10-24

 

 

 

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): October 24, 2023

 

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))

 

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 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 October 24, 2023, Manhattan Associates, Inc. (“we”, “our”, or the “Company”) issued a press release providing its financial results for the three and nine months ended September 30, 2023. 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, and adjusted diluted earnings per share (collectively, “adjusted results”), which exclude the impact of equity-based compensation and related income tax effects. 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 equity-based compensation and related income tax effects because equity-based compensation expense typically does not require cash settlement by the Company. We also exclude the tax benefits or deficiencies of vested stock awards caused by differences in the amount deductible for tax purposes related to the stock award from the compensation expense recorded for financial reporting purposes.

We assess our operating performance using these adjusted measures and believe our peers also typically present non-GAAP results similarly adjusted. 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.

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 capital expenditures and acquisitions. In addition, adjusted results facilitate management’s internal comparisons to our historical operating results and comparisons to competitors’ operating results.

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

 

 

 

 

 

 

 

 

2

 

 


 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit

 

Number

Description

99.1

Press Release, dated October 24, 2023

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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: October 24, 2023

 

3

 

 


EX-99.1

Exhibit 99.1

 

 

Contact:

Michael Bauer

Rick Fernandez

Senior Director,

Investor Relations

Director,

Corporate Communications

Manhattan Associates, Inc.

 

Manhattan Associates, Inc.

678-597-7538

678-597-6988

mbauer@manh.com

rfernandez@manh.com

 

 

 

Manhattan Associates Reports Record Revenue and Earnings

RPO Bookings Increase 37% over Prior Year on Strong Demand

Company Raises 2023 Full Year Guidance

 

ATLANTA – October 24, 2023 – Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $238.4 million for the third quarter ended September 30, 2023. GAAP diluted earnings per share for Q3 2023 was $0.79 compared to $0.47 in Q3 2022. Non-GAAP adjusted diluted earnings per share for Q3 2023 was $1.05 compared to $0.66 in Q3 2022.

“We are pleased with our quarterly and year-to-date results. Solid demand for our industry leading cloud solutions and services drove record results on the top and bottom lines,” said Manhattan Associates president and CEO Eddie Capel.

“Manhattan’s business fundamentals are strong, and our commitment to delivering innovation to our customers across mission-critical commerce and supply chain systems remains resolute. While we remain appropriately cautious and anticipate continued volatility, we are very optimistic about our expanding market opportunities. We are raising our 2023 outlook across all metrics and are providing preliminary solid 2024 parameters,” Mr. Capel concluded.

THIRD QUARTER 2023 FINANCIAL SUMMARY:

Consolidated total revenue was $238.4 million for Q3 2023, compared to $198.1 million for Q3 2022.
o
Cloud subscription revenue was $65.0 million for Q3 2023, compared to $45.3 million for Q3 2022.
o
License revenue was $3.9 million for Q3 2023, compared to $6.4 million for Q3 2022.

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o
Services revenue was $128.0 million for Q3 2023, compared to $103.4 million for Q3 2022.
GAAP diluted earnings per share was $0.79 for Q3 2023, compared to $0.47 for Q3 2022.

Adjusted diluted earnings per share, a non-GAAP measure, was $1.05 for Q3 2023, compared to $0.66 for Q3 2022.

GAAP operating income was $53.4 million for Q3 2023, compared to $36.8 million for Q3 2022.

Adjusted operating income, a non-GAAP measure, was $72.5 million for Q3 2023, compared to $51.3 million for Q3 2022.

Cash flow from operations was $58.6 million for Q3 2023, compared to $39.9 million for Q3 2022. Days Sales Outstanding was 71 days at September 30, 2023, compared to 70 days at June 30, 2023.

Cash totaled $182.3 million at September 30, 2023, compared to $153.3 million at June 30, 2023.

During the three months ended September 30, 2023, the Company repurchased 128,133 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $25.1 million. In October 2023, our Board of Directors approved replenishing our remaining share repurchase authority to an aggregate of $75.0 million of our common stock.
 

NINE MONTH 2023 FINANCIAL SUMMARY:

Consolidated total revenue for the nine months ended September 30, 2023, was $690.5 million, compared to $569.0 million for the nine months ended September 30, 2022.
o
Cloud subscription revenue was $183.2 million for the nine months ended September 30, 2023, compared to $124.8 million for the nine months ended September 30, 2022.
o
License revenue was $13.0 million for the nine months ended September 30, 2023, compared to $19.9 million for the nine months ended September 30, 2022.

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o
Services revenue was $368.7 million for the nine months ended September 30, 2023, compared to $294.3 million for the nine months ended September 30, 2022.
GAAP diluted earnings per share for the nine months ended September 30, 2023, was $2.05, compared to $1.43 for the nine months ended September 30, 2022.
Adjusted diluted earnings per share, a non-GAAP measure, was $2.72 for the nine months ended September 30, 2023, compared to $1.95 for the nine months ended September 30, 2022.
GAAP operating income was $151.0 million for the nine months ended September 30, 2023, compared to $108.0 million for the nine months ended September 30, 2022.
Adjusted operating income, a non-GAAP measure, was $204.6 million for the nine months ended September 30, 2023, compared to $152.2 million for the nine months ended September 30, 2022.
Cash flow from operations was $157.9 million for the nine months ended September 30, 2023, compared to $124.4 million for the nine months ended September 30, 2022.
During the nine months ended September 30, 2023, the Company repurchased 1,024,328 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $166.0 million.

 

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2023 GUIDANCE

Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2023:

 

 

Guidance Range - 2023 Full Year

 

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

$ Range

 

% Growth Range

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue - current guidance

$912

 

$916

 

19%

 

19%

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin:

 

 

 

 

 

 

 

 

 

GAAP operating margin - current guidance

21.0%

 

21.3%

 

 

 

 

 

 

Equity-based compensation

7.9%

 

7.8%

 

 

 

 

 

 

Adjusted operating margin(1) - current guidance

28.9%

 

29.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (EPS):

 

 

 

 

 

 

 

 

 

GAAP EPS - current guidance

$2.59

 

$2.61

 

28%

 

29%

 

 

Equity-based compensation, net of tax

0.98

 

0.98

 

 

 

 

 

 

Excess tax benefit on stock vesting(2)

(0.06)

 

(0.06)

 

 

 

 

 

 

Adjusted EPS(1) - current guidance

$3.51

 

$3.53

 

27%

 

28%

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

   compensation and related income tax effects.

 

 

(2) Excess tax benefit on stock vesting occurred primarily in the first quarter of 2023.

 

 

 

 


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. See our cautionary note regarding “forward-looking statements” below.

Manhattan Associates will make this earnings release and published expectations available on the investor relations section of the Manhattan Associates website at ir.manh.com. Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.

 

 

 

 

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CONFERENCE CALL

Manhattan Associates’ conference call regarding its third quarter 2023 financial results will be held today, October 24, 2023, at 4:30 p.m. Eastern Time. The Company will also discuss its business and expectations for the year and next quarter in additional detail during the call. We invite investors to a live webcast of the conference call through the Investor Relations section of the Manhattan Associates website at ir.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. The Internet webcast will be available until Manhattan Associates’ fourth quarter 2023 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

Manhattan Associates 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 and nine months ended September 30, 2023.

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 – net of income tax effects. They also exclude the tax benefits or deficiencies of vested stock awards caused by differences in the amount deductible for tax purposes from the compensation expense recorded for financial reporting purposes. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.

 

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ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a global 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 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 “2023 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 of those 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 those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: economic conditions, including inflation; disruption in the retail sector; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; disruption in the retail sector; risks related to our products’ technology and customer implementations; global instability, including the wars in Ukraine and the Middle East; and the other risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, 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.

 

###

 

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MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2023

 

2022

 

2023

 

2022

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

Revenue:

 

 

 

 

 

 

 

 

Cloud subscriptions

 

$65,033

 

$45,267

 

$183,196

 

$124,767

Software license

 

3,870

 

6,386

 

12,967

 

19,869

Maintenance

 

35,296

 

35,820

 

106,772

 

107,115

Services

 

127,965

 

103,425

 

368,744

 

294,284

Hardware

 

6,277

 

7,203

 

18,791

 

22,946

Total revenue

 

238,441

 

198,101

 

690,470

 

568,981

Costs and expenses:

 

 

 

 

 

 

 

 

Cost of cloud subscriptions, maintenance and services

 

111,142

 

95,691

 

322,914

 

266,482

Cost of software license

 

297

 

467

 

967

 

1,749

Research and development

 

33,093

 

29,375

 

95,487

 

84,754

Sales and marketing

 

17,650

 

15,742

 

54,278

 

47,881

General and administrative

 

21,371

 

18,392

 

61,561

 

54,963

Depreciation and amortization

 

1,440

 

1,664

 

4,247

 

5,157

Total costs and expenses

 

184,993

 

161,331

 

539,454

 

460,986

Operating income

 

53,448

 

36,770

 

151,016

 

107,995

Other income, net

 

1,739

 

1,612

 

2,923

 

4,593

Income before income taxes

 

55,187

 

38,382

 

153,939

 

112,588

Income tax provision

 

5,766

 

8,708

 

26,107

 

21,497

Net income

 

$49,421

 

$29,674

 

$127,832

 

$91,091

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$0.80

 

$0.47

 

$2.07

 

$1.45

Diluted earnings per share

 

$0.79

 

$0.47

 

$2.05

 

$1.43

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

Basic

 

61,639

 

62,592

 

61,902

 

62,917

Diluted

 

62,310

 

63,165

 

62,501

 

63,483

 

 

 


 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Reconciliation of Selected GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Operating income

 

$53,448

 

$36,770

 

$151,016

 

$107,995

Equity-based compensation (a)

 

19,030

 

14,533

 

53,598

 

44,209

Adjusted operating income (Non-GAAP)

 

$72,478

 

$51,303

 

$204,614

 

$152,204

 

 

 

 

 

 

 

 

 

Income tax provision

 

$5,766

 

$8,708

 

$26,107

 

$21,497

Equity-based compensation (a)

 

3,030

 

2,265

 

8,067

 

7,013

Tax benefit of stock awards vested (b)

 

218

 

3

 

3,454

 

4,386

Adjusted income tax provision (Non-GAAP)

 

$9,014

 

$10,976

 

$37,628

 

$32,896

 

 

 

 

 

 

 

 

 

Net income

 

$49,421

 

$29,674

 

$127,832

 

$91,091

Equity-based compensation (a)

 

16,000

 

12,268

 

45,531

 

37,196

Tax benefit of stock awards vested (b)

 

(218)

 

(3)

 

(3,454)

 

(4,386)

Adjusted net income (Non-GAAP)

 

$65,203

 

$41,939

 

$169,909

 

$123,901

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$0.79

 

$0.47

 

$2.05

 

$1.43

Equity-based compensation (a)

 

0.26

 

0.19

 

0.73

 

0.59

Tax benefit of stock awards vested (b)

 

-

 

-

 

(0.06)

 

(0.07)

Adjusted diluted EPS (Non-GAAP)

 

$1.05

 

$0.66

 

$2.72

 

$1.95

 

 

 

 

 

 

 

 

 

Fully diluted shares

 

62,310

 

63,165

 

62,501

 

63,483

 

(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 with the SEC. We do not receive a GAAP tax benefit for a portion of our equity-based compensation, mainly because of Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives.

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Cost of services

 

$7,643

 

$5,308

 

$21,337

 

$16,267

Research and development

 

4,141

 

3,126

 

11,711

 

9,740

Sales and marketing

 

1,878

 

1,508

 

5,333

 

4,460

General and administrative

 

5,368

 

4,591

 

15,217

 

13,742

Total equity-based compensation

 

$19,030

 

$14,533

 

$53,598

 

$44,209

 

(b)
Adjustments represent the excess tax benefits and tax deficiencies of the equity awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible on our tax return for an equity award is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we exclude 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 exclude the related tax benefit (expense) generated upon their vesting.

 

 

 


 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

September 30, 2023

 

 

December 31, 2022

 

 

 

(unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

182,312

 

 

$

225,463

 

Accounts receivable, net of allowance of $5,367 and $6,009, at September 30, 2023 and December 31, 2022, respectively

 

 

183,377

 

 

 

166,767

 

Prepaid expenses and other current assets

 

 

27,170

 

 

 

23,145

 

Total current assets

 

 

392,859

 

 

 

415,375

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

11,266

 

 

 

12,803

 

Operating lease right-of-use assets

 

 

19,976

 

 

 

17,794

 

Goodwill, net

 

 

62,228

 

 

 

62,230

 

Deferred income taxes

 

 

55,523

 

 

 

37,206

 

Other assets

 

 

31,143

 

 

 

24,770

 

Total assets

 

$

572,995

 

 

$

570,178

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

25,253

 

 

$

25,701

 

Accrued compensation and benefits

 

 

67,187

 

 

 

54,469

 

Accrued and other liabilities

 

 

26,429

 

 

 

24,569

 

Deferred revenue

 

 

213,440

 

 

 

208,807

 

Income taxes payable

 

 

517

 

 

 

2,049

 

Total current liabilities

 

 

332,826

 

 

 

315,595

 

 

 

 

 

 

 

 

Operating lease liabilities, long-term

 

 

16,237

 

 

 

14,065

 

Other non-current liabilities

 

 

13,827

 

 

 

13,718

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2023 and 2022

 

 

-

 

 

 

-

 

Common stock, $0.01 par value; 200,000,000 shares authorized; 61,562,480 and 62,191,570 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively

 

 

616

 

 

 

621

 

Retained earnings

 

 

238,315

 

 

 

253,711

 

Accumulated other comprehensive loss

 

 

(28,826

)

 

 

(27,532

)

Total shareholders' equity

 

 

210,105

 

 

 

226,800

 

Total liabilities and shareholders' equity

 

$

572,995

 

 

$

570,178

 

 

 

 

 

 

 

 

 

 

 

 


 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

 

(unaudited)

 

 

(unaudited)

 

Operating activities:

 

 

 

 

 

 

Net income

 

$

127,832

 

 

$

91,091

 

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

 

 

 

 

 

 

Depreciation and amortization

 

 

4,247

 

 

 

5,157

 

Equity-based compensation

 

 

53,598

 

 

 

44,209

 

Loss (gain) on disposal of equipment

 

 

42

 

 

 

(20

)

Deferred income taxes

 

 

(18,359

)

 

 

(20,736

)

Unrealized foreign currency loss (gain)

 

 

922

 

 

 

(2,933

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(17,168

)

 

 

(23,384

)

Other assets

 

 

(7,747

)

 

 

(9,190

)

Accounts payable, accrued and other liabilities

 

 

13,477

 

 

 

20,743

 

Income taxes

 

 

(4,347

)

 

 

(730

)

Deferred revenue

 

 

5,362

 

 

 

20,195

 

Net cash provided by operating activities

 

 

157,859

 

 

 

124,402

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(2,761

)

 

 

(4,152

)

Net cash used in investing activities

 

 

(2,761

)

 

 

(4,152

)

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

Repurchase of common stock

 

 

(195,716

)

 

 

(179,029

)

Net cash used in financing activities

 

 

(195,716

)

 

 

(179,029

)

 

 

 

 

 

 

 

Foreign currency impact on cash

 

 

(2,533

)

 

 

(7,872

)

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

(43,151

)

 

 

(66,651

)

Cash and cash equivalents at beginning of period

 

 

225,463

 

 

 

263,706

 

Cash and cash equivalents at end of period

 

$

182,312

 

 

$

197,055

 

 

 

 

 

 

 

 

 

 

 

 


 

MANHATTAN ASSOCIATES, INC.

SUPPLEMENTAL INFORMATION

 

1. GAAP and adjusted earnings per share by quarter are as follows:

 

 

2022

 

2023

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

YTD

GAAP Diluted EPS

$0.48

 

$0.49

 

$0.47

 

$0.60

 

$2.03

 

$0.62

 

$0.63

 

$0.79

 

$2.05

Adjustments to GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based compensation

0.19

 

0.20

 

0.19

 

0.21

 

0.79

 

0.23

 

0.25

 

0.26

 

0.73

Tax benefit of stock awards vested

(0.07)

 

-

 

-

 

-

 

(0.07)

 

(0.05)

 

-

 

-

 

(0.06)

 Adjusted Diluted EPS

$0.60

 

$0.69

 

$0.66

 

$0.81

 

$2.76

 

$0.80

 

$0.88

 

$1.05

 

$2.72

Fully Diluted Shares

63,871

 

63,419

 

63,165

 

63,028

 

63,408

 

62,767

 

62,432

 

62,310

 

62,501

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

 

2022

 

2023

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

YTD

Revenue:

Americas

$139,540

 

$151,996

 

$156,674

 

$155,674

 

$603,884

 

$170,759

 

$179,208

 

$186,564

 

$536,531

EMEA

32,151

 

31,614

 

31,843

 

33,330

 

128,938

 

39,658

 

40,902

 

41,204

 

121,764

APAC

7,265

 

8,314

 

9,584

 

9,099

 

34,262

 

10,596

 

10,906

 

10,673

 

32,175

 

$178,956

 

$191,924

 

$198,101

 

$198,103

 

$767,084

 

$221,013

 

$231,016

 

$238,441

 

$690,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating Income:

Americas

$21,393

 

$24,507

 

$22,914

 

$30,475

 

$99,289

 

$29,647

 

$32,326

 

$34,655

 

$96,628

EMEA

10,517

 

9,423

 

9,851

 

10,239

 

40,030

 

12,793

 

13,556

 

14,415

 

40,764

APAC

2,062

 

3,323

 

4,005

 

3,991

 

13,381

 

4,645

 

4,601

 

4,378

 

13,624

 

$33,972

 

$37,253

 

$36,770

 

$44,705

 

$152,700

 

$47,085

 

$50,483

 

$53,448

 

$151,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments (pre-tax):

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based
   compensation

$14,138

 

$15,538

 

$14,533

 

$15,152

 

$59,361

 

$16,640

 

$17,928

 

$19,030

 

$53,598

 

$14,138

 

$15,538

 

$14,533

 

$15,152

 

$59,361

 

$16,640

 

$17,928

 

$19,030

 

$53,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-GAAP Operating Income:

Americas

$35,531

 

$40,045

 

$37,447

 

$45,627

 

$158,650

 

$46,287

 

$50,254

 

$53,685

 

$150,226

EMEA

10,517

 

9,423

 

9,851

 

10,239

 

40,030

 

12,793

 

13,556

 

14,415

 

40,764

APAC

2,062

 

3,323

 

4,005

 

3,991

 

13,381

 

4,645

 

4,601

 

4,378

 

13,624

 

$48,110

 

$52,791

 

$51,303

 

$59,857

 

$212,061

 

$63,725

 

$68,411

 

$72,478

 

$204,614

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

3. 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):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

2023

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

YTD

Revenue

$(2,268)

 

$(4,568)

 

$(6,152)

 

$(5,124)

 

$(18,112)

 

$(3,084)

 

$104

 

$2,755

 

$(225)

Costs and expenses

(2,043)

 

(3,862)

 

(5,412)

 

(5,354)

 

(16,671)

 

(3,616)

 

(1,133)

 

1,033

 

(3,716)

Operating income

(225)

 

(706)

 

(740)

 

230

 

(1,441)

 

532

 

1,237

 

1,722

 

3,491

Foreign currency gains (losses)
   in other income

711

 

2,056

 

1,569

 

353

 

4,689

 

(810)

 

(516)

 

387

 

(939)

 

$486

 

$1,350

 

$829

 

$583

 

$3,248

 

$(278)

 

$721

 

$2,109

 

$2,552

 

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):
 

 

2022

 

2023

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

YTD

Operating income

$470

 

$710

 

$1,166

 

$1,900

 

$4,246

 

$1,632

 

$1,222

 

$728

 

$3,582

Foreign currency gains (losses)
    in other income

809

 

2,085

 

1,713

 

738

 

5,345

 

(283)

 

(31)

 

812

 

498

Total impact of
   changes in the
   Indian Rupee

$1,279

 

$2,795

 

$2,879

 

$2,638

 

$9,591

 

$1,349

 

$1,191

 

$1,540

 

$4,080

4. Other income includes the following components (in thousands):
 

 

2022

 

2023

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

YTD

Interest income

$19

 

$92

 

$112

 

$373

 

$596

 

$969

 

$1,555

 

$1,371

 

$3,895

Foreign currency gains (losses)

711

 

2,056

 

1,569

 

353

 

4,689

 

(810)

 

(516)

 

387

 

(939)

Other non-operating
    income (expense)

8

 

95

 

(69)

 

102

 

136

 

(16)

 

2

 

(19)

 

(33)

Total other income (loss)

$738

 

$2,243

 

$1,612

 

$828

 

$5,421

 

$143

 

$1,041

 

$1,739

 

$2,923

5. Capital expenditures are as follows (in thousands):
 

 

2022

 

2023

 

 

 

 

 

 

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

YTD

Capital expenditures

$1,159

 

$1,084

 

$1,909

 

$2,435

 

$6,587

 

$666

 

$1,009

 

$1,086

 

$2,761

 

 

 


 

6. Stock Repurchase Activity (in thousands):

 

 

2022

 

2023

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Full Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

YTD

Shares purchased under publicly announced buy-back program

383

 

417

 

347

 

206

 

1,353

 

515

 

381

 

128

 

1,024

Shares withheld for taxes due upon vesting of restricted stock units

203

 

4

 

8

 

2

 

217

 

208

 

4

 

8

 

220

Total shares purchased

586

 

421

 

355

 

208

 

1,570

 

723

 

385

 

136

 

1,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash paid for shares purchased under publicly announced buy-back program

$49,965

 

$50,151

 

$50,000

 

$25,234

 

$175,350

 

$74,177

 

$66,769

 

$25,072

 

$166,018

Total cash paid for shares withheld for taxes due upon vesting of restricted stock units

27,143

 

528

 

1,242

 

197

 

29,110

 

27,511

 

658

 

1,529

 

29,698

Total cash paid for shares repurchased