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): February 3, 2015

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))	

 

Item 2.02 Results of Operations and Financial Condition.
On February 3, 2014, Manhattan Associates, Inc. (the “Company”) issued a press release providing the results for its financial performance for the fourth quarter and year ended December 31, 2014. 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, adjusted net income and adjusted diluted earnings per share, which excludes the impact of equity-based compensation and acquisition-related costs and the amortization thereof—all net of income tax effects. We have developed our internal reporting, compensation and planning systems using these measures.
These various measures are not in accordance with, or an alternative 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:
 
 	•	 	Because equity-based compensation expense is not an expense that typically requires or will require cash settlement by the Company, and because we believe our competitors and peers typically present non-GAAP results excluding all equity-based compensation expense, we have not included equity-based compensation expense and the related tax benefit generated upon the disposition of equity-based compensation in the assessment of our operating performance.	
 
 	•	 	Because we sporadically engage in acquisitions, we incur acquisition-related costs that consist primarily of accounting and legal expenses, whether or not we ultimately proceed with the transaction. Additionally, we might assume and incur certain unusual costs, such as employee retention benefits, that result from arrangements made prior to the acquisition. These acquisition costs are difficult to predict and do not correlate to the expenses of our core operations. We believe our competitors and peers typically present as a non-GAAP measure adjusted net income and adjusted earnings per share that exclude the amortization of acquisition-related intangible assets. Consequently, we exclude these amortization costs when calculating adjusted net income and adjusted earnings per share to provide supplemental information on our core operations and to facilitate more relevant and meaningful comparisons of our operating results with that of our competitors.	
We believe the reporting of adjusted operating income, adjusted net income and adjusted earnings per share facilitates investors’ understanding of our historical operating trends, because it provides important supplemental measurement information in evaluating the operating results of our business. We also believe that adjusted operating income, adjusted net income and adjusted earnings per share provide a basis for more relevant comparisons to other companies in the industry and enable investors to evaluate
 
1

our operating performance in a manner consistent with our internal basis of measurement. Management refers to adjusted operating income, adjusted net income and adjusted earnings per share 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 operating income, adjusted net income and adjusted earnings per share facilitate management’s internal comparisons to our historical operating results and comparisons to competitors’ operating results.
Further, we rely on adjusted operating income, adjusted net income and adjusted net income per share information 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 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 February 3, 2015	

2

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: February 3, 2015
 
3

EXHIBIT INDEX

Exhibit
Number	  	Description	
 	 	
99.1	  	Press Release, dated February 3, 2015	

Exhibit 99.1

 
 	 	 	 	 	
Contact:	  	Dennis Story	  	Cameron Smith	
 	  	Chief Financial Officer	  	Director, Corporate Communications	
 	  	Manhattan Associates, Inc.	  	Manhattan Associates, Inc.	
 	  	770-955-7070	  	678-597-6841	
 	  	dstory@manh.com	  	camsmith@manh.com	
Manhattan Associates Reports Record Fourth Quarter and Full Year 2014 Performance
ATLANTA – February 3, 2015 – Leading Supply Chain Commerce Solutions provider Manhattan Associates, Inc. (NASDAQ: MANH) today reported record non-GAAP adjusted diluted earnings per share for the fourth quarter ended December 31, 2014 of $0.30 compared to $0.24 in Q4 2013, on license revenue of $19.5 million and record total revenue of $130.4 million. GAAP diluted earnings per share for Q4 2014 was a record $0.27 compared to $0.22 in Q4 2013.
“We’re very pleased with our 2014 fourth quarter and full year financial results, which marks our third consecutive year of record revenue and earnings per share performance. With strong execution and customer focus by our Manhattan global team in 2014, we were able to improve our competitive position and continue to successfully expand beyond our core business into the retail store,” said Manhattan Associates President and CEO, Eddie Capel. “We continue to make substantial investments in our people, products and technology to enable the growth of our core business and deliver commerce solutions for the retail store that meet the demands of the emerging omni-channel market. Despite the persistent global macro sluggishness, we’re optimistic about our 2015 growth potential and expect to extend our market leadership position and improve our financial results throughout 2015.”
FOURTH QUARTER 2014 FINANCIAL SUMMARY:
 
 	•	 	Adjusted diluted earnings per share, a non-GAAP measure, was $0.30 in Q4 2014, compared to $0.24 in Q4 2013.	
 
 	•	 	GAAP diluted earnings per share was $0.27 in Q4 2014, compared to $0.22 in Q4 2013.	

 
 	•	 	Consolidated total revenue was $130.4 million in Q4 2014, compared to $107.6 million in Q4 2013. License revenue was $19.5 million in Q4 2014, compared to $17.3 million in Q4 2013.	
 
 	•	 	Adjusted operating income, a non-GAAP measure, was $31.9 million in Q4 2014, compared to $26.7 million in Q4 2013.	
 
 	•	 	GAAP operating income was $29.1 million in Q4 2014, compared to $24.7 million in Q4 2013.	
 
 	•	 	Cash flow from operations was $40.4 million in Q4 2014, compared to $23.0 million in Q4 2013. Days Sales Outstanding was 61 days at December 31, 2014, compared to 64 days at September 30, 2014.	
 
 	•	 	Cash and investments at December 31, 2014 was $124.4 million, compared to $111.5 million at September 30, 2014 and $133.0 million at December 31, 2013.	
 
 	•	 	During the three months ended December 31, 2014, the Company repurchased 639,648 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total investment of $25.4 million. In January 2015, the Board of Directors approved raising the Company’s share repurchase authority to an aggregate of $50.0 million of the Company’s outstanding common stock.	
FULL YEAR 2014 FINANCIAL SUMMARY:
 
 	•	 	Adjusted diluted earnings per share, a non-GAAP measure, was a record $1.16 for the twelve months ended December 31, 2014, compared to $0.92 for the twelve months ended December 31, 2013.	
 
 	•	 	GAAP diluted earnings per share for the twelve months ended December 31, 2014 was a record $1.08, compared to $0.86 for the twelve months ended December 31, 2013.	
 
 	•	 	Consolidated revenue for the twelve months ended December 31, 2014 was a record $492.1 million, compared to $414.5 million for the twelve months ended December 31, 2013. License revenue was $71.6 million for the twelve months ended December 31, 2014, compared to $62.4 million for the twelve months ended December 31, 2013.	

 
 	•	 	Adjusted operating income, a non-GAAP measure, was $137.0 million for the twelve months ended December 31, 2014, compared to $108.6 million for the twelve months ended December 31, 2013.	
 
 	•	 	GAAP operating income was $127.1 million for the twelve months ended December 31, 2014, compared to $101.3 million for the twelve months ended December 31, 2013.	
 
 	•	 	Cash flow from operations was $94.2 million in the twelve months ended December 31, 2014, compared to $89.4 million in the twelve months ended December 31, 2013.	
 
 	•	 	During the twelve months ended December 31, 2014, the Company repurchased 2,620,118 shares of Manhattan Associates common stock for a total investment of $91.1 million.	
SALES ACHIEVEMENTS:
 
 	•	 	Four contracts of $1.0 million or more in recognized license revenue during the fourth quarter of 2014.	
 
 	•	 	Completing software license wins with new customers such as: BNS Group, Fedway Associates, Gwynnie Bee, Lakmin, Shenzhen PurCotton Technology, STD Petrovich, and Vinidex.	
 
 	•	 	Expanding relationships with existing customers such as: Alliance Healthcare, Amscan, Asics America, Automotive Holdings Group, Bakkavor, Blue Star Operations Services, DCG Fulfillment, eStore Logistics, Exel, Forever Direct, GENCO, Harvard Drug, Innotrac, Jasco Products Company, Kane Warehousing, Kuehne + Nagel, LeSaint Logistics, LifeShield, Northern Safety Company, O’Key, PT Multitrend Indo, Redmart, Southern Wine & Spirits of America, Speed Commerce Corp., Stella & Dot, Strategic Partners, Sturm Foods, Team Hardinger Transportation and Warehousing, The Children’s Place, TNT Logistics, Tractor Supply, Ulta, Vasanta Group, Wilton Brands, Wineworks, and Winning Group.	

 
2015 GUIDANCE
Manhattan Associates provides the following updated revenue and diluted earnings per share guidance for the full year 2015:

 	  	Guidance Range - 2015 Full Year	 	
($’s in millions, except EPS)	  	$ Range	 	  	% Growth Range	 	
Total revenue	  	$	531	  	  	$	541	  	  	 	8	% 	 	 	10	% 	
Diluted earnings per share (EPS):	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Adjusted EPS(1)	  	$	1.28	  	  	$	1.30	  	  	 	10	% 	 	 	12	% 	
GAAP EPS	  	$	1.18	  	  	$	1.20	  	  	 	9	% 	 	 	11	% 	
 
(1) 	Adjusted EPS is a Non-GAAP measure which excludes the impact of equity-based compensation	
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, especially in the current uncertain economic environment. Those statements, including the guidance provided above, do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release.
Manhattan Associates will make its earnings release and published expectations available on its website (www.manh.com). Beginning the close of business on March 15, 2015, Manhattan Associates will observe a “Quiet Period” during which Manhattan Associates and its representatives will not comment concerning previously published financial expectations. Prior to the start of the Quiet Period, the public can continue to rely on the expectations published in this 2015 Guidance section as being Manhattan Associates’ current expectation on matters covered, unless Manhattan Associates publishes a notice stating otherwise. During the Quiet Period, previously published expectations should be considered historical only, speaking only as of or prior to the Quiet Period, and Manhattan Associates disclaims any obligation to update any previously published financial expectations during the Quiet Period. The Quiet Period will extend until publication of Manhattan Associates’ next quarterly earnings release, currently scheduled for the third full week of April 2015.

 
CONFERENCE CALL
The Company’s conference call regarding its fourth quarter and twelve months ended December 31, 2014 financial results will be held today, February 3, 2015, at 4:30 p.m. Eastern Time. Investors are invited to listen to a live webcast of the conference call through the investor relations section of Manhattan Associates’ website at  www.manh.com . To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software.
For those who cannot listen to the live broadcast, a replay can be accessed shortly after the call by dialing +1.855.859.2056 in the U.S. and Canada, or +1.404.537.3406 outside the U.S., and entering the conference identification number 61278773 or via the web www.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates’ first quarter 2015 earnings release.
GAAP VERSUS NON-GAAP PRESENTATION
The Company provides adjusted operating income, adjusted net income and adjusted diluted earnings per share in this press release as additional information regarding the Company’s operating results. These measures are not in accordance with – or an alternative to – GAAP, and may be different from non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share measures used by other companies. The Company believes that the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare the Company’s results and guidance, because the measures provide important supplemental information in evaluating the operating results of its business, as distinct from results that include items that are not indicative of ongoing operating results, and because the Company’s competitors and peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the quarter and year ended December 31, 2014.
Non-GAAP adjusted operating income, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation and acquisition-related costs and the amortization thereof – all net of income tax effects. Reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments are included in the supplemental information attached to this release.

 
ABOUT MANHATTAN ASSOCIATES
Manhattan Associates makes commerce-ready supply chains that bring all points of commerce together so you’re ready to sell and ready to execute. Across the store, through your network or from your fulfillment center, we design, build and deliver market-leading solutions that support both top-line growth and bottom-line profitability. By converging front-end sales with back-end supply chain execution, our software, platform technology and unmatched experience help our customers get commerce ready—and ready to reap the rewards of the omni-channel marketplace. For more information, please visit www.manh.com.
This press release contains “forward-looking statements” relating to Manhattan Associates, Inc. Forward-looking statements in this press release include the information set forth under “2015 Guidance.” Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: uncertainty about the global economy, delays in product development, competitive pressures, software errors, information security breaches and the additional risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.
###

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)

 	  	Three Months Ended
December 31,	 	 	Year Ended
December 31,	 	
 	  	2014	 	  	2013	 	 	2014	 	  	2013	 	
 	  	(unaudited)	 	  	(unaudited)	 	 	 	 	  	 	 	
Revenue:	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Software license	  	$	19,542	  	  	$	17,267	  	 	$	71,583	  	  	$	62,416	  	
Services	  	 	97,073	  	  	 	77,786	  	 	 	376,023	  	  	 	315,901	  	
Hardware and other	  	 	13,788	  	  	 	12,546	  	 	 	44,498	  	  	 	36,201	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Total revenue	  	 	130,403	  	  	 	107,599	  	 	 	492,104	  	  	 	414,518	  	
Costs and expenses:	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Cost of license	  	 	1,970	  	  	 	2,564	  	 	 	7,110	  	  	 	8,724	  	
Cost of services	  	 	45,534	  	  	 	36,297	  	 	 	169,140	  	  	 	142,236	  	
Cost of hardware and other	  	 	11,088	  	  	 	10,142	  	 	 	36,328	  	  	 	30,191	  	
Research and development	  	 	13,047	  	  	 	11,135	  	 	 	48,953	  	  	 	44,549	  	
Sales and marketing	  	 	16,273	  	  	 	11,374	  	 	 	52,617	  	  	 	44,559	  	
General and administrative	  	 	11,694	  	  	 	9,952	  	 	 	44,455	  	  	 	37,147	  	
Depreciation and amortization	  	 	1,725	  	  	 	1,468	  	 	 	6,377	  	  	 	5,825	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Total costs and expenses	  	 	101,331	  	  	 	82,932	  	 	 	364,980	  	  	 	313,231	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Operating income	  	 	29,072	  	  	 	24,667	  	 	 	127,124	  	  	 	101,287	  	
Other income (loss), net	  	 	850	  	  	 	(118	) 	 	 	874	  	  	 	1,822	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Income before income taxes	  	 	29,922	  	  	 	24,549	  	 	 	127,998	  	  	 	103,109	  	
Income tax provision	  	 	9,568	  	  	 	7,703	  	 	 	45,998	  	  	 	35,813	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Net income	  	$	20,354	  	  	$	16,846	  	 	$	82,000	  	  	$	67,296	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Basic earnings per share	  	$	0.27	  	  	$	0.22	  	 	$	1.09	  	  	$	0.88	  	
Diluted earnings per share	  	$	0.27	  	  	$	0.22	  	 	$	1.08	  	  	$	0.86	  	
Weighted average number of shares:	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Basic	  	 	74,223	  	  	 	76,032	  	 	 	74,995	  	  	 	76,664	  	
Diluted	  	 	75,034	  	  	 	77,256	  	 	 	75,841	  	  	 	77,932	  	

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Reconciliation of Selected GAAP to Non-GAAP Measures
(in thousands, except per share amounts)

 	  	Three Months Ended
December 31,	 	  	Year Ended
December 31,	 	
 	  	2014	 	  	2013	 	  	2014	 	  	2013	 	
Operating income	  	$	29,072	  	  	$	24,667	  	  	$	127,124	  	  	$	101,287	  	
Equity-based compensation (a)	  	 	2,704	  	  	 	2,076	  	  	 	9,671	  	  	 	7,325	  	
Purchase amortization (b)	  	 	106	  	  	 	1	  	  	 	165	  	  	 	6	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Adjusted operating income (Non-GAAP)	 	$	31,882	  	 	$	26,744	  	 	$	136,960	  	 	$	108,618	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Income tax provision	 	$	9,568	  	 	$	7,703	  	 	$	45,998	  	 	$	35,813	  	
Equity-based compensation (a)	 	 	989	  	 	 	729	  	 	 	3,574	  	 	 	2,602	  	
Purchase amortization (b)	 	 	39	  	 	 	—  	  	 	 	61	  	 	 	2	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Adjusted income tax provision (Non-GAAP)	 	$	10,596	  	 	$	8,432	  	 	$	49,633	  	 	$	38,417	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	 	$	20,354	  	 	$	16,846	  	 	$	82,000	  	 	$	67,296	  	
Equity-based compensation (a)	 	 	1,714	  	 	 	1,347	  	 	 	6,096	  	 	 	4,723	  	
Purchase amortization (b)	 	 	67	  	 	 	1	  	 	 	104	  	 	 	4	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Adjusted net income (Non-GAAP)	 	$	22,136	  	 	$	18,194	  	 	$	88,201	  	 	$	72,023	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Diluted EPS	 	$	0.27	  	 	$	0.22	  	 	$	1.08	  	 	$	0.86	  	
Equity-based compensation (a)	 	 	0.02	  	 	 	0.02	  	 	 	0.08	  	 	 	0.06	  	
Purchase amortization (b)	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Adjusted diluted EPS (Non-GAAP)	 	$	0.30	  	 	$	0.24	  	 	$	1.16	  	 	$	0.92	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Fully diluted shares	 	 	75,034	  	 	 	77,256	  	 	 	75,841	  	 	 	77,932	  	
 
(a)	Adjusted results exclude all equity-based compensation, to facilitate comparison with our competitors and peers and for the other reasons explained in our Current Report on Form 8-K filed with the SEC on the date hereof. Equity-based compensation is included in the following GAAP operating expense lines for the three and twelve months ended December 31, 2014 and 2013:	

 	  	Three Months Ended
December 31,	 	  	Year Ended
December 31,	 	
 	  	2014	 	  	2013	 	  	2014	 	  	2013	 	
Cost of services	  	$	551	  	  	$	354	  	  	$	1,839	  	  	$	1,235	  	
Research and development	  	 	408	  	  	 	274	  	  	 	1,541	  	  	 	1,110	  	
Sales and marketing	  	 	469	  	  	 	364	  	  	 	1,563	  	  	 	975	  	
General and administrative	  	 	1,276	  	  	 	1,084	  	  	 	4,728	  	  	 	4,005	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total equity-based compensation	 	$	2,704	  	 	$	2,076	  	 	$	9,671	  	 	$	7,325	  	

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

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)

 	  	December 31,
2014	 	 	December 31,
2013	 	
ASSETS	  	 	 	 	 	 	 	 	
Current Assets:	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	115,708	  	 	$	124,375	  	
Short term investments	  	 	8,730	  	 	 	8,581	  	
Accounts receivable, net of allowance of $4,164 and $3,156 in 2014 and 2013, respectively	  	 	86,828	  	 	 	71,136	  	
Deferred income taxes	  	 	9,900	  	 	 	7,300	  	
Prepaid expenses and other current assets	  	 	8,695	  	 	 	7,346	  	
 	  	 	 	 	 	 	 	 	
Total current assets	 	 	229,861	  	 	 	218,738	  	
Property and equipment, net	 	 	17,265	  	 	 	14,342	  	
Goodwill, net	 	 	62,250	  	 	 	62,272	  	
Deferred income taxes	 	 	270	  	 	 	427	  	
Other assets	 	 	8,524	  	 	 	2,049	  	
 	  	 	 	 	 	 	 	 	
Total assets	 	$	318,170	  	 	$	297,828	  	
 	  	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Accounts payable	 	$	12,483	  	 	$	11,555	  	
Accrued compensation and benefits	 	 	30,889	  	 	 	19,465	  	
Accrued and other liabilities	 	 	12,501	  	 	 	12,225	  	
Deferred revenue	 	 	58,968	  	 	 	53,812	  	
Income taxes payable	 	 	7,974	  	 	 	7,131	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	 	 	122,815	  	 	 	104,188	  	
Other non-current liabilities	 	 	13,332	  	 	 	12,054	  	
Shareholders’ equity:	 	 	 	 	 	 	 	 	
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2014 and 2013	 	 	—  	  	 	 	—  	  	
Common stock, $0.01 par value; 200,000,000 shares and 100,000,000 shares authorized at December 31, 2014 and December 31, 2013, respectively; 74,104,064 and 76,374,180 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively	 	 	741	  	 	 	764	  	
Retained earnings	 	 	191,305	  	 	 	188,604	  	
Accumulated other comprehensive loss	 	 	(10,023	) 	 	 	(7,782	) 	
 	  	 	 	 	 	 	 	 	
Total shareholders’ equity	 	 	182,023	  	 	 	181,586	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	 	$	318,170	  	 	$	297,828	  	

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)

 	  	Year Ended
December 31,	 	
 	  	2014	 	 	2013	 	
Operating activities:	  	 	 	 	 	 	 	 	
Net income	  	$	82,000	  	 	$	67,296	  	
Adjustments to reconcile net income to net cash provided by operating activities:	  	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	6,377	  	 	 	5,825	  	
Equity-based compensation	  	 	9,671	  	 	 	7,325	  	
(Gain) loss on disposal of equipment	  	 	(13	) 	 	 	31	  	
Tax benefit of stock awards exercised/vested	  	 	8,640	  	 	 	6,980	  	
Excess tax benefits from equity-based compensation	  	 	(8,562	) 	 	 	(6,637	) 	
Deferred income taxes	  	 	(1,705	) 	 	 	3,165	  	
Unrealized foreign currency (gain) loss	  	 	(624	) 	 	 	205	  	
Changes in operating assets and liabilities:	  	 	 	 	 	 	 	 	
Accounts receivable, net	  	 	(16,758	) 	 	 	(9,174	) 	
Other assets	  	 	(5,198	) 	 	 	697	  	
Accounts payable, accrued and other liabilities	  	 	13,519	  	 	 	3,164	  	
Income taxes	  	 	338	  	 	 	4,500	  	
Deferred revenue	  	 	6,477	  	 	 	6,010	  	
 	  	 	 	 	 	 	 	 	
Net cash provided by operating activities	 	 	94,162	  	 	 	89,387	  	
 	  	 	 	 	 	 	 	 	
Investing activities:	 	 	 	 	 	 	 	 	
Purchase of property and equipment	 	 	(9,415	) 	 	 	(4,740	) 	
Net purchases of investments	 	 	(479	) 	 	 	(3,065	) 	
Payment in connection with acquisition	 	 	(2,773	) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Net cash used in investing activities	 	 	(12,667	) 	 	 	(7,805	) 	
 	  	 	 	 	 	 	 	 	
Financing activities:	 	 	 	 	 	 	 	 	
Purchase of common stock	 	 	(99,204	) 	 	 	(64,199	) 	
Proceeds from issuance of common stock from options exercised	 	 	1,571	  	 	 	5,754	  	
Excess tax benefits from equity-based compensation	 	 	8,562	  	 	 	6,637	  	
 	  	 	 	 	 	 	 	 	
Net cash used in financing activities	 	 	(89,071	) 	 	 	(51,808	) 	
 	  	 	 	 	 	 	 	 	
Foreign currency impact on cash	 	 	(1,091	) 	 	 	(2,136	) 	
 	  	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	 	 	(8,667	) 	 	 	27,638	  	
Cash and cash equivalents at beginning of period	 	 	124,375	  	 	 	96,737	  	
 	  	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	 	$	115,708	  	 	$	124,375	  	

MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION
1. GAAP and Adjusted earnings per share by quarter are as follows:
On December 19, 2013, our Board of Directors approved a four-for-one stock split of the Company’s Common Stock, effected in the form of a stock dividend. All references made to shares or per share amounts have been restated to reflect the effect of this four-for-one stock split for all periods presented.

 	 	2013	 	 	2014	 	
 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	
GAAP Diluted EPS	 	$	0.17	  	 	$	0.22	  	 	$	0.25	  	 	$	0.22	  	 	$	0.86	  	 	$	0.24	  	 	$	0.27	  	 	$	0.30	  	 	$	0.27	  	 	$	1.08	  	
Adjustments to GAAP:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity-based compensation	 	 	0.02	  	 	 	0.02	  	 	 	0.01	  	 	 	0.02	  	 	 	0.06	  	 	 	0.02	  	 	 	0.02	  	 	 	0.02	  	 	 	0.02	  	 	 	0.08	  	
Purchase amortization	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Diluted EPS	 	$	0.19	  	 	$	0.24	  	 	$	0.26	  	 	$	0.24	  	 	$	0.92	  	 	$	0.26	  	 	$	0.29	  	 	$	0.32	  	 	$	0.30	  	 	$	1.16	  	
Fully Diluted Shares	 	 	78,740	  	 	 	78,036	  	 	 	77,552	  	 	 	77,256	  	 	 	77,932	  	 	 	76,795	  	 	 	76,037	  	 	 	75,466	  	 	 	75,034	  	 	 	75,841	  	

2. Revenues and operating income by reportable segment are as follows (in thousands):	  	
 	 	 	
 	 	2013	 	 	2014	 	
 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	
Revenue:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Americas	 	$	79,820	  	 	$	83,600	  	 	$	87,977	  	 	$	86,947	  	 	$	338,344	  	 	$	91,355	  	 	$	98,633	  	 	$	103,419	  	 	$	108,557	  	 	$	401,964	  	
EMEA	 	 	11,431	  	 	 	11,964	  	 	 	12,686	  	 	 	14,333	  	 	 	50,414	  	 	 	15,679	  	 	 	15,911	  	 	 	14,253	  	 	 	15,012	  	 	 	60,855	  	
APAC	 	 	5,350	  	 	 	6,952	  	 	 	7,139	  	 	 	6,319	  	 	 	25,760	  	 	 	6,529	  	 	 	7,986	  	 	 	7,936	  	 	 	6,834	  	 	 	29,285	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	96,601	  	 	$	102,516	  	 	$	107,802	  	 	$	107,599	  	 	$	414,518	  	 	$	113,563	  	 	$	122,530	  	 	$	125,608	  	 	$	130,403	  	 	$	492,104	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Operating Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Americas	 	$	16,964	  	 	$	21,256	  	 	$	25,613	  	 	$	19,618	  	 	$	83,451	  	 	$	24,133	  	 	$	25,127	  	 	$	28,750	  	 	$	23,926	  	 	$	101,936	  	
EMEA	 	 	1,753	  	 	 	2,736	  	 	 	2,633	  	 	 	3,166	  	 	 	10,288	  	 	 	4,058	  	 	 	4,239	  	 	 	3,617	  	 	 	3,399	  	 	 	15,313	  	
APAC	 	 	944	  	 	 	2,195	  	 	 	2,526	  	 	 	1,883	  	 	 	7,548	  	 	 	1,860	  	 	 	3,134	  	 	 	3,134	  	 	 	1,747	  	 	 	9,875	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	19,661	  	 	$	26,187	  	 	$	30,772	  	 	$	24,667	  	 	$	101,287	  	 	$	30,051	  	 	$	32,500	  	 	$	35,501	  	 	$	29,072	  	 	$	127,124	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pre-tax):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Americas:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity-based compensation	 	$	1,907	  	 	$	2,133	  	 	$	1,209	  	 	$	2,076	  	 	$	7,325	  	 	$	2,274	  	 	$	2,396	  	 	$	2,297	  	 	$	2,704	  	 	$	9,671	  	
Purchase amortization	 	 	2	  	 	 	1	  	 	 	2	  	 	 	1	  	 	 	6	  	 	 	1	  	 	 	—  	  	 	 	58	  	 	 	106	  	 	 	165	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	1,909	  	 	$	2,134	  	 	$	1,211	  	 	$	2,077	  	 	$	7,331	  	 	$	2,275	  	 	$	2,396	  	 	$	2,355	  	 	$	2,810	  	 	$	9,836	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted non-GAAP Operating Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Americas	 	$	18,873	  	 	$	23,390	  	 	$	26,824	  	 	$	21,695	  	 	$	90,782	  	 	$	26,408	  	 	$	27,523	  	 	$	31,105	  	 	$	26,736	  	 	$	111,772	  	
EMEA	 	 	1,753	  	 	 	2,736	  	 	 	2,633	  	 	 	3,166	  	 	 	10,288	  	 	 	4,058	  	 	 	4,239	  	 	 	3,617	  	 	 	3,399	  	 	 	15,313	  	
APAC	 	 	944	  	 	 	2,195	  	 	 	2,526	  	 	 	1,883	  	 	 	7,548	  	 	 	1,860	  	 	 	3,134	  	 	 	3,134	  	 	 	1,747	  	 	 	9,875	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	21,570	  	 	$	28,321	  	 	$	31,983	  	 	$	26,744	  	 	$	108,618	  	 	$	32,326	  	 	$	34,896	  	 	$	37,856	  	 	$	31,882	  	 	$	136,960	  	

3. Our services revenue consists of fees generated from professional services and customer support and software enhancements related to our software products as follows (in thousands):	   	
 	 	 	
 	 	2013	 	 	2014	 	
 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	
Professional services	 	$	49,151	  	 	$	52,492	  	 	$	57,690	  	 	$	51,490	  	 	 	210,823	  	 	$	59,422	  	 	$	65,702	  	 	$	69,398	  	 	$	65,536	  	 	 	260,058	  	
Customer support and software enhancements	 	 	25,736	  	 	 	25,711	  	 	 	27,335	  	 	 	26,296	  	 	 	105,078	  	 	 	27,491	  	 	 	27,817	  	 	 	29,120	  	 	 	31,537	  	 	 	115,965	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total services revenue	 	$	74,887	  	 	$	78,203	  	 	$	85,025	  	 	$	77,786	  	 	$	315,901	  	 	$	86,913	  	 	$	93,519	  	 	$	98,518	  	 	$	97,073	  	 	$	376,023	  	

4. Hardware and other revenue includes the following items (in thousands):	  	
 	 	 	
 	 	2013	 	 	2014	 	
 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	
Hardware revenue	 	$	4,175	  	 	$	4,285	  	 	$	3,904	  	 	$	8,557	  	 	$	20,921	  	 	$	5,946	  	 	$	6,114	  	 	$	4,707	  	 	$	8,856	  	 	$	25,623	  	
Billed travel	 	 	3,294	  	 	 	3,892	  	 	 	4,105	  	 	 	3,989	  	 	 	15,280	  	 	 	3,597	  	 	 	4,908	  	 	 	5,438	  	 	 	4,932	  	 	 	18,875	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total hardware and other revenue	 	$	7,469	  	 	$	8,177	  	 	$	8,009	  	 	$	12,546	  	 	$	36,201	  	 	$	9,543	  	 	$	11,022	  	 	$	10,145	  	 	$	13,788	  	 	$	44,498	  	

5. Impact of Currency Fluctuation	  	
 	
The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):	   	
 	 	 	
 	 	2013	 	 	2014	 	
 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	
Revenue	 	$	(182	) 	 	$	(150	) 	 	$	(329	) 	 	$	(63	) 	 	$	(724	) 	 	$	202	  	 	$	696	  	 	$	479	  	 	$	(1,397	) 	 	$	(20	) 	
Costs and expenses	 	 	(541	) 	 	 	(262	) 	 	 	(877	) 	 	 	(902	) 	 	 	(2,582	) 	 	 	(713	) 	 	 	73	  	 	 	522	  	 	 	(1,097	) 	 	 	(1,215	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	 	 	359	  	 	 	112	  	 	 	548	  	 	 	839	  	 	 	1,858	  	 	 	915	  	 	 	623	  	 	 	(43	) 	 	 	(300	) 	 	 	1,195	  	
Foreign currency (losses) gains in other income	 	 	(179	) 	 	 	972	  	 	 	313	  	 	 	(445	) 	 	 	661	  	 	 	(516	) 	 	 	12	  	 	 	(415	) 	 	 	491	  	 	 	(428	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	$	180	  	 	$	1,084	  	 	$	861	  	 	$	394	  	 	$	2,519	  	 	$	399	  	 	$	635	  	 	$	(458	) 	 	$	191	  	 	$	767	  	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	
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):	    	
 	 	 	
 	 	2013	 	 	2014	 	
 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	
Operating income	 	$	440	  	 	$	173	  	 	$	733	  	 	$	900	  	 	$	2,246	  	 	$	898	  	 	$	505	  	 	$	(171	) 	 	$	24	  	 	$	1,256	  	
Foreign currency (losses) gains in other income	 	 	4	  	 	 	931	  	 	 	204	  	 	 	3	  	 	 	1,142	  	 	 	(141	) 	 	 	(129	) 	 	 	191	  	 	 	342	  	 	 	263	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total impact of changes in the Indian Rupee	 	$	444	  	 	$	1,104	  	 	$	937	  	 	$	903	  	 	$	3,388	  	 	$	757	  	 	$	376	  	 	$	20	  	 	$	366	  	 	$	1,519	  	

6. Other (loss) income includes the following components (in thousands):	  	
 	 	 	
 	 	2013	 	 	2014	 	
 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	
Interest income	 	$	326	  	 	$	271	  	 	$	263	  	 	$	307	  	 	$	1,167	  	 	$	267	  	 	$	302	  	 	$	349	  	 	$	350	  	 	$	1,268	  	
Foreign currency (losses) gains	 	 	(179	) 	 	 	972	  	 	 	313	  	 	 	(445	) 	 	 	661	  	 	 	(516	) 	 	 	12	  	 	 	(415	) 	 	 	491	  	 	 	(428	) 	
Other non-operating (expense) income	 	 	4	  	 	 	—  	  	 	 	(30	) 	 	 	20	  	 	 	(6	) 	 	 	16	  	 	 	(2	) 	 	 	11	  	 	 	9	  	 	 	34	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other (loss) income	 	$	151	  	 	$	1,243	  	 	$	546	  	 	$	(118	) 	 	$	1,822	  	 	$	(233	) 	 	$	312	  	 	$	(55	) 	 	$	850	  	 	$	874	  	

7. Total equity-based compensation is as follows (in thousands except per share amounts):	  	
 	 	 	
 	 	2013	 	 	2014	 	
 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	
Stock options	 	$	148	  	 	$	11	  	 	$	11	  	 	$	20	  	 	$	190	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
Restricted stock	 	 	1,759	  	 	 	2,122	  	 	 	1,198	  	 	 	2,056	  	 	 	7,135	  	 	 	2,274	  	 	 	2,396	  	 	 	2,297	  	 	 	2,704	  	 	 	9,671	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity-based compensation	 	 	1,907	  	 	 	2,133	  	 	 	1,209	  	 	 	2,076	  	 	 	7,325	  	 	 	2,274	  	 	 	2,396	  	 	 	2,297	  	 	 	2,704	  	 	 	9,671	  	
Income tax provision	 	 	671	  	 	 	751	  	 	 	451	  	 	 	729	  	 	 	2,602	  	 	 	844	  	 	 	889	  	 	 	852	  	 	 	990	  	 	 	3,575	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	1,236	  	 	$	1,382	  	 	$	758	  	 	$	1,347	  	 	$	4,723	  	 	$	1,430	  	 	$	1,507	  	 	$	1,445	  	 	$	1,714	  	 	$	6,096	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings per share	 	$	0.02	  	 	$	0.02	  	 	$	0.01	  	 	$	0.02	  	 	$	0.06	  	 	$	0.02	  	 	$	0.02	  	 	$	0.02	  	 	$	0.02	  	 	$	0.08	  	
Diluted earnings per share—stock options	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	0.00	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
Diluted earnings per share—restricted stock	 	$	0.01	  	 	$	0.02	  	 	$	0.01	  	 	$	0.02	  	 	$	0.06	  	 	$	0.02	  	 	$	0.02	  	 	$	0.02	  	 	$	0.02	  	 	$	0.08	  	
 	
8. Capital expenditures are as follows (in thousands):	  	
 	 	 	
 	 	2013	 	 	2014	 	
 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	
Capital expenditures	 	$	598	  	 	$	1,035	  	 	$	1,568	  	 	$	1,539	  	 	$	4,740	  	 	$	1,156	  	 	$	2,424	  	 	$	3,096	  	 	$	2,739	  	 	$	9,415	  	

9. Stock Repurchase Activity (in thousands):	  	
 	 	 	
 	 	2013	 	 	2014	 	
 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	
Shares purchased under publicly-announced buy-back program	 	 	903	  	 	 	785	  	 	 	607	  	 	 	537	  	 	 	2,832	  	 	 	695	  	 	 	782	  	 	 	504	  	 	 	639	  	 	 	2,620	  	
Shares withheld for taxes due upon vesting of restricted stock	 	 	281	  	 	 	1	  	 	 	13	  	 	 	5	  	 	 	300	  	 	 	235	  	 	 	1	  	 	 	10	  	 	 	3	  	 	 	249	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total shares purchased	 	 	1,184	  	 	 	786	  	 	 	620	  	 	 	542	  	 	 	3,132	  	 	 	930	  	 	 	783	  	 	 	514	  	 	 	642	  	 	 	2,869	  	
Total cash paid for shares purchased under publicly-announced buy-back program	 	$	15,929	  	 	$	14,409	  	 	$	13,533	  	 	$	15,332	  	 	$	59,203	  	 	$	25,459	  	 	$	25,090	  	 	$	15,112	  	 	$	25,422	  	 	$	91,083	  	
Total cash paid for shares withheld for taxes due upon vesting of restricted stock	 	 	4,545	  	 	 	19	  	 	 	280	  	 	 	152	  	 	 	4,996	  	 	 	7,720	  	 	 	36	  	 	 	289	  	 	 	76	  	 	 	8,121	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total cash paid for shares repurchased	 	$	20,474	  	 	$	14,428	  	 	$	13,813	  	 	$	15,484	  	 	$	64,199	  	 	$	33,179	  	 	$	25,126	  	 	$	15,401	  	 	$	25,498	  	 	$	99,204