UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 22, 2014

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 April 22, 2014, Manhattan Associates, Inc. (the “Company”) issued a press release providing the results for its financial performance for the first quarter ended March 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 expenses from accounting and legal due diligence, 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.	
 
1

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, enable investors to evaluate our operating performance in a manner consistent with our internal basis of measurement and also present our investors our operating results on the same basis as that used by our management. 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 April 22, 2014	
 
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: April 22, 2014
 
3

EXHIBIT INDEX

Exhibit
Number	  	Description	
 	 	
99.1	  	Press Release, dated April 22, 2014	

Exhibit 99.1

 
 	 	 	 	 	
Contact:	  	Dennis Story
Chief Financial Officer
Manhattan Associates, Inc.
770-955-7070
dstory@manh.com	 	Cameron Smith
Director, Corporate Communications
Manhattan Associates, Inc.
678-597-6841
camsmith@manh.com	
Manhattan Associates Reports Record First Quarter 2014 Results
Company raises full-year revenue and EPS guidance
ATLANTA – April 22, 2014 – Leading Supply Chain Commerce Solutions provider Manhattan Associates, Inc. (NASDAQ: MANH) today reported record non-GAAP adjusted diluted earnings per share for the first quarter ended March 31, 2014 of $0.26 compared to $0.19 in Q1 2013, on license revenue of $17.1 million and record total revenue of $113.6 million. GAAP diluted earnings per share for Q1 2014 was $0.24 compared to $0.17 in Q1 2013.
“We’re very pleased with our performance in the first quarter of 2014. Across the board we executed well serving our customers, extending our supply chain commerce market leadership position and delivering record financial performance,” said Eddie Capel, Manhattan Associates president and CEO. “In the new omni-channel world of Supply Chain Commerce, we continue to experience solid demand for our products and innovation. We will continue to strive to enhance our market position and improve our financial results throughout 2014 and beyond.”
FIRST QUARTER 2014 FINANCIAL SUMMARY:
 
 	•	 	Adjusted diluted earnings per share, a non-GAAP measure, was $0.26 in Q1 2014, compared to $0.19 in Q1 2013.	
 
 	•	 	GAAP diluted earnings per share was $0.24 in Q1 2014, compared to $0.17 in Q1 2013.	
 
 	•	 	Consolidated total revenue was $113.6 million in Q1 2014, compared to $96.6 million in Q1 2013. License revenue was $17.1 million in Q1 2014, compared to $14.2 million in Q1 2013.	
 
 	•	 	Adjusted operating income, a non-GAAP measure, was $32.3 million in Q1 2014, compared to $21.6 million in Q1 2013.	

 
 	•	 	GAAP operating income was $30 million in Q1 2014, compared to $19.7 million in Q1 2013.	
 
 	•	 	Cash flow from operations was $19.1 million in Q1 2014, compared to $20.1 million in Q1 2013. Days Sales Outstanding was 53 days at March 31, 2014, compared to 61 days at December 31, 2013.	
 
 	•	 	Cash and investments at March 31, 2014 was $125.9 million, compared to $133.0 million at December 31, 2013.	
 
 	•	 	During the three months ended March 31, 2014, the Company repurchased 694,547 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total investment of $25.5 million. In April 2014, 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.	
SALES ACHIEVEMENTS:
 
 	•	 	Four contracts of $1.0 million or more in recognized license revenue during the first quarter of 2014.	
 
 	•	 	Completing software license wins with new customers such as: DCG Fulfillment, Dunham’s Sports, Express-1, Floor and Decor Outlets of America, Hastings Deering, ICA Sverige, Kapal Api, LifeShield, Norix Group, Ulta, Vente-Privee, and West Coast Distribution.	
 
 	•	 	Expanding relationships with existing customers such as: The Apparel Group, Automotive Holdings Group (AHG), C&J Clark International Ltd., Cabela’s, Donaldson Europe BVBA, Federal-Mogul, GENCO Holdings, Genesco, The Harvard Drug Group, Jasco Products Company, Just Group, Knight Transportation, Movianto, Nassau Candy, Nordstrom, Northern Tool + Equipment, Ozburn-Hessey Logistics (OHL), Performance Team Freight Systems, Rhee Brothers, Samsung India Electronics, Simplehuman, Sodimac Colombia, Southeastern Freight Lines, Speed Global Services, Stella & Dot, and Thai Beverage Logistics.	

 
2014 GUIDANCE
Manhattan Associates provides the following updated revenue and diluted earnings per share guidance for the full year 2014:

 	  	Guidance Range - 2014 Full Year	 	
($’s in millions, except EPS)	  	$ Range	 	  	% Growth Range	 	
Total revenue - current guidance	  	$	460	  	  	$	465	  	  	 	11	% 	 	 	12	% 	
Total revenue - previous guidance	  	$	450	  	  	$	455	  	  	 	9	% 	 	 	10	% 	
Diluted earnings per share (EPS):	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Adjusted EPS(1) - current guidance	  	$	1.06	  	  	$	1.08	  	  	 	15	% 	 	 	17	% 	
GAAP EPS - current guidance	  	$	0.99	  	  	$	1.01	  	  	 	15	% 	 	 	17	% 	
Adjusted EPS(1) - previous guidance	  	$	1.01	  	  	$	1.03	  	  	 	10	% 	 	 	12	% 	
GAAP EPS - previous guidance	  	$	0.94	  	  	$	0.96	  	  	 	10	% 	 	 	12	% 	
 
(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 June 15, 2014, 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 2014 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 July 2014.

 
CONFERENCE CALL
The Company’s conference call regarding its first quarter financial results will be held today, April 22, 2014, 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 +1.800.585.8367 in the U.S. and Canada, or +1.404.537.3406 outside the U.S., and entering the conference identification number 13681816 or via the web at www.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates’ second quarter 2014 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 ended March 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 brings companies closer to their customers. We design, build and deliver market-leading Supply Chain Commerce Solutions that drive top line growth by converging front-end sales with back-end supply chain execution and efficiency. Our software, platform technology and unmatched experience help our customers around the world adapt to the challenges 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 “2014 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, 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 March 31,	 	
 	  	2014	 	 	2013	 	
 	  	(unaudited)	 	
Revenue:	  	 	 	 	 	 	 	 	
Software license	  	$	17,107	  	 	$	14,245	  	
Services	  	 	86,913	  	 	 	74,887	  	
Hardware and other	  	 	9,543	  	 	 	7,469	  	
 	  	 	 	 	 	 	 	 	
Total revenue	  	 	113,563	  	 	 	96,601	  	
Costs and expenses:	  	 	 	 	 	 	 	 	
Cost of license	  	 	1,613	  	 	 	1,778	  	
Cost of services	  	 	38,460	  	 	 	35,046	  	
Cost of hardware and other	  	 	7,479	  	 	 	6,214	  	
Research and development	  	 	11,803	  	 	 	11,476	  	
Sales and marketing	  	 	12,020	  	 	 	11,434	  	
General and administrative	  	 	10,649	  	 	 	9,508	  	
Depreciation and amortization	  	 	1,488	  	 	 	1,484	  	
 	  	 	 	 	 	 	 	 	
Total costs and expenses	  	 	83,512	  	 	 	76,940	  	
 	  	 	 	 	 	 	 	 	
Operating income	  	 	30,051	  	 	 	19,661	  	
Other (loss) income, net	  	 	(233	) 	 	 	151	  	
 	  	 	 	 	 	 	 	 	
Income before income taxes	  	 	29,818	  	 	 	19,812	  	
Income tax provision	  	 	11,106	  	 	 	6,457	  	
 	  	 	 	 	 	 	 	 	
Net income	  	$	18,712	  	 	$	13,355	  	
 	  	 	 	 	 	 	 	 	
Basic earnings per share	  	$	0.25	  	 	$	0.17	  	
Diluted earnings per share	  	$	0.24	  	 	$	0.17	  	
Weighted average number of shares:	  	 	 	 	 	 	 	 	
Basic	  	 	75,817	  	 	 	77,308	  	
Diluted	  	 	76,795	  	 	 	78,740	  	

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

 	  	Three Months Ended March 31,	 	
 	  	2014	 	  	2013	 	
Operating income	  	$	30,051	  	  	$	19,661	  	
Equity-based compensation (b)	  	 	2,274	  	  	 	1,907	  	
Purchase amortization (c)	  	 	1	  	  	 	2	  	
 	  	 	 	 	  	 	 	 	
Adjusted operating income (Non-GAAP)	  	$	32,326	  	  	$	21,570	  	
 	  	 	 	 	  	 	 	 	
Income tax provision	  	$	11,106	  	  	$	6,457	  	
Equity-based compensation (b)	  	 	844	  	  	 	671	  	
Purchase amortization (c)	  	 	—  	  	  	 	1	  	
 	  	 	 	 	  	 	 	 	
Adjusted income tax provision (Non-GAAP)	  	$	11,950	  	  	$	7,129	  	
 	  	 	 	 	  	 	 	 	
Net income	  	$	18,712	  	  	$	13,355	  	
Equity-based compensation (b)	  	 	1,430	  	  	 	1,236	  	
Purchase amortization (c)	  	 	1	  	  	 	1	  	
 	  	 	 	 	  	 	 	 	
Adjusted net income (Non-GAAP)	  	$	20,143	  	  	$	14,592	  	
 	  	 	 	 	  	 	 	 	
Diluted EPS (a)	  	$	0.24	  	  	$	0.17	  	
Equity-based compensation (a,b)	  	 	0.02	  	  	 	0.02	  	
Purchase amortization (a,c)	  	 	—  	  	  	 	—  	  	
 	  	 	 	 	  	 	 	 	
Adjusted diluted EPS (Non-GAAP) (a)	  	$	0.26	  	  	$	0.19	  	
 	  	 	 	 	  	 	 	 	
Fully diluted shares	  	 	76,795	  	  	 	78,740	  	
 
(a)	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.	
 
(b)	To be consistent with other companies in the software industry, we began to report adjusted results excluding all equity-based compensation. The equity-based compensation is included in the following GAAP operating expense lines for the three months ended March 30, 2014 and 2013:	

 	  	Three Months Ended March 31,	 	
 	  	2014	 	  	2013	 	
Cost of services	  	$	370	  	  	$	249	  	
Research and development	  	 	417	  	  	 	298	  	
Sales and marketing	  	 	310	  	  	 	512	  	
General and administrative	  	 	1,177	  	  	 	848	  	
 	  	 	 	 	  	 	 	 	
Total equity-based compensation	  	$	2,274	  	  	$	1,907	  	

(c)	Adjustments represent purchased intangibles amortization from prior acquisitions. Such amortization is commonly excluded from GAAP net income by companies in our industry and we therefore exclude these amortization costs to provide more relevant and meaningful comparisons of our operating results to that of our competitors.	

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

 	  	March 31,
2014	 	 	December 31,
2013	 	
 	  	(unaudited)	 	 	 	 	
ASSETS	  	 	 	 	 	 	 	 	
Current Assets:	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	116,649	  	 	$	124,375	  	
Short term investments	  	 	9,285	  	 	 	8,581	  	
Accounts receivable, net of allowance of $3,844 and $3,156 in 2014 and 2013, respectively	  	 	66,779	  	 	 	71,136	  	
Deferred income taxes	  	 	7,321	  	 	 	7,300	  	
Prepaid expenses and other current assets	  	 	10,571	  	 	 	7,346	  	
 	  	 	 	 	 	 	 	 	
Total current assets	  	 	210,605	  	 	 	218,738	  	
Property and equipment, net	  	 	14,108	  	 	 	14,342	  	
Goodwill, net	  	 	62,272	  	 	 	62,272	  	
Deferred income taxes	  	 	438	  	 	 	427	  	
Other assets	  	 	3,321	  	 	 	2,049	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	290,744	  	 	$	297,828	  	
 	  	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	  	 	 	 	 	 	 	 	
Current liabilities:	  	 	 	 	 	 	 	 	
Accounts payable	  	$	8,281	  	 	$	11,555	  	
Accrued compensation and benefits	  	 	17,661	  	 	 	19,465	  	
Accrued and other liabilities	  	 	12,092	  	 	 	12,225	  	
Deferred revenue	  	 	59,449	  	 	 	53,812	  	
Income taxes payable	  	 	2,446	  	 	 	7,131	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	99,929	  	 	 	104,188	  	
Other non-current liabilities	  	 	13,125	  	 	 	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, $.01 par value; 100,000,000 shares authorized; 75,831,405 and 76,374,180 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	  	 	758	  	 	 	764	  	
Retained earnings	  	 	183,695	  	 	 	188,604	  	
Accumulated other comprehensive loss	  	 	(6,763	) 	 	 	(7,782	) 	
 	  	 	 	 	 	 	 	 	
Total shareholders’ equity	  	 	177,690	  	 	 	181,586	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	  	$	290,744	  	 	$	297,828	  	

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

 	  	Three Months Ended March 31,	 	
 	  	2014	 	 	2013	 	
 	  	(unaudited)	 	
Operating activities:	  	 	 	 	 	 	 	 	
Net income	  	$	18,712	  	 	$	13,355	  	
Adjustments to reconcile net income to net cash provided by operating activities:	  	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	1,488	  	 	 	1,484	  	
Equity-based compensation	  	 	2,274	  	 	 	1,907	  	
(Gain) loss on disposal of equipment	  	 	(17	) 	 	 	1	  	
Tax benefit of stock awards exercised/vested	  	 	6,547	  	 	 	4,206	  	
Excess tax benefits from equity-based compensation	  	 	(6,509	) 	 	 	(4,163	) 	
Deferred income taxes	  	 	1,302	  	 	 	1,682	  	
Unrealized foreign currency loss (gain)	  	 	90	  	 	 	(75	) 	
Changes in operating assets and liabilities:	  	 	 	 	 	 	 	 	
Accounts receivable, net	  	 	4,496	  	 	 	2,255	  	
Other assets	  	 	(4,447	) 	 	 	(594	) 	
Accounts payable, accrued and other liabilities	  	 	(5,638	) 	 	 	(6,652	) 	
Income taxes	  	 	(4,647	) 	 	 	(3,720	) 	
Deferred revenue	  	 	5,493	  	 	 	10,414	  	
 	  	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	19,144	  	 	 	20,100	  	
 	  	 	 	 	 	 	 	 	
Investing activities:	  	 	 	 	 	 	 	 	
Purchase of property and equipment	  	 	(1,156	) 	 	 	(598	) 	
Net purchases of investments	  	 	(427	) 	 	 	(1,115	) 	
 	  	 	 	 	 	 	 	 	
Net cash used in investing activities	  	 	(1,583	) 	 	 	(1,713	) 	
 	  	 	 	 	 	 	 	 	
Financing activities:	  	 	 	 	 	 	 	 	
Purchase of common stock	  	 	(33,179	) 	 	 	(20,474	) 	
Proceeds from issuance of common stock from options exercised	  	 	730	  	 	 	2,623	  	
Excess tax benefits from equity-based compensation	  	 	6,509	  	 	 	4,163	  	
 	  	 	 	 	 	 	 	 	
Net cash used in financing activities	  	 	(25,940	) 	 	 	(13,688	) 	
 	  	 	 	 	 	 	 	 	
Foreign currency impact on cash	  	 	653	  	 	 	(343	) 	
 	  	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	  	 	(7,726	) 	 	 	4,356	  	
Cash and cash equivalents at beginning of period	  	 	124,375	  	 	 	96,737	  	
 	  	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	  	$	116,649	  	 	$	101,093	  	

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	 	
GAAP Diluted EPS	  	$	0.17	  	  	$	0.22	  	  	$	0.25	  	  	$	0.22	  	  	$	0.86	  	  	$	0.24	  	
Adjustments to GAAP:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Equity-based compensation	  	 	0.02	  	  	 	0.02	  	  	 	0.01	  	  	 	0.02	  	  	 	0.06	  	  	 	0.02	  	
Purchase amortization	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Adjusted Diluted EPS	  	$	0.19	  	  	$	0.24	  	  	$	0.26	  	  	$	0.24	  	  	$	0.92	  	  	$	0.26	  	
Fully Diluted Shares	  	 	78,740	  	  	 	78,036	  	  	 	77,552	  	  	 	77,256	  	  	 	77,932	  	  	 	76,795	  	

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	 	
Revenue:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Americas	  	$	79,820	  	  	$	83,600	  	  	$	87,977	  	  	$	86,947	  	  	$	338,344	  	  	$	91,355	  	
EMEA	  	 	11,431	  	  	 	11,964	  	  	 	12,686	  	  	 	14,333	  	  	 	50,414	  	  	 	15,679	  	
APAC	  	 	5,350	  	  	 	6,952	  	  	 	7,139	  	  	 	6,319	  	  	 	25,760	  	  	 	6,529	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	  	$	96,601	  	  	$	102,516	  	  	$	107,802	  	  	$	107,599	  	  	$	414,518	  	  	$	113,563	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
GAAP Operating Income:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Americas	  	$	16,964	  	  	$	21,256	  	  	$	25,613	  	  	$	19,618	  	  	$	83,451	  	  	$	24,133	  	
EMEA	  	 	1,753	  	  	 	2,736	  	  	 	2,633	  	  	 	3,166	  	  	 	10,288	  	  	 	4,058	  	
APAC	  	 	944	  	  	 	2,195	  	  	 	2,526	  	  	 	1,883	  	  	 	7,548	  	  	 	1,860	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	  	$	19,661	  	  	$	26,187	  	  	$	30,772	  	  	$	24,667	  	  	$	101,287	  	  	$	30,051	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Adjustments (pre-tax):	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Americas:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Equity-based compensation	  	$	1,907	  	  	$	2,133	  	  	$	1,209	  	  	$	2,076	  	  	$	7,325	  	  	$	2,274	  	
Purchase amortization	  	 	2	  	  	 	1	  	  	 	2	  	  	 	1	  	  	 	6	  	  	 	1	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	  	$	1,909	  	  	$	2,134	  	  	$	1,211	  	  	$	2,077	  	  	$	7,331	  	  	$	2,275	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Adjusted non-GAAP Operating Income:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Americas	  	$	18,873	  	  	$	23,390	  	  	$	26,824	  	  	$	21,695	  	  	$	90,782	  	  	$	26,408	  	
EMEA	  	 	1,753	  	  	 	2,736	  	  	 	2,633	  	  	 	3,166	  	  	 	10,288	  	  	 	4,058	  	
APAC	  	 	944	  	  	 	2,195	  	  	 	2,526	  	  	 	1,883	  	  	 	7,548	  	  	 	1,860	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
 	  	$	21,570	  	  	$	28,321	  	  	$	31,983	  	  	$	26,744	  	  	$	108,618	  	  	$	32,326	  	

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	 	
Professional services	  	$	49,151	  	  	$	52,492	  	  	$	57,690	  	  	$	51,490	  	  	$	210,823	  	  	$	59,422	  	
Customer support and software enhancements	  	 	25,736	  	  	 	25,711	  	  	 	27,335	  	  	 	26,296	  	  	 	105,078	  	  	 	27,491	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total services revenue	  	$	74,887	  	  	$	78,203	  	  	$	85,025	  	  	$	77,786	  	  	$	315,901	  	  	$	86,913	  	

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	 	
Hardware revenue	  	$	4,175	  	  	$	4,285	  	  	$	3,904	  	  	$	8,557	  	  	$	20,921	  	  	$	5,946	  	
Billed travel	  	 	3,294	  	  	 	3,892	  	  	 	4,105	  	  	 	3,989	  	  	 	15,280	  	  	 	3,597	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total hardware and other revenue	  	$	7,469	  	  	$	8,177	  	  	$	8,009	  	  	$	12,546	  	  	$	36,201	  	  	$	9,543	  	

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	 	
Revenue	  	$	(182	) 	 	$	(150	) 	 	$	(329	) 	 	$	(63	) 	 	$	(724	) 	 	$	202	  	
Costs and expenses	  	 	(541	) 	 	 	(262	) 	 	 	(877	) 	 	 	(902	) 	 	 	(2,582	) 	 	 	713	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	359	  	 	 	112	  	 	 	548	  	 	 	839	  	 	 	1,858	  	 	 	915	  	
Foreign currency (losses) gains in other income	  	 	(179	) 	 	 	972	  	 	 	313	  	 	 	(445	) 	 	 	661	  	 	 	(516	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	$	180	  	 	$	1,084	  	 	$	861	  	 	$	394	  	 	$	2,519	  	 	$	399	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	 	  	YTD	 	  	1st Qtr	 	
Operating income	  	$	440	  	  	$	173	  	  	$	733	  	  	$	900	  	  	$	2,246	  	  	$	898	  	
Foreign currency (losses) gains in other income	  	 	4	  	  	 	931	  	  	 	204	  	  	 	3	  	  	 	1,142	  	  	 	(141	) 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total impact of changes in the Indian Rupee	  	$	444	  	  	$	1,104	  	  	$	937	  	  	$	903	  	  	$	3,388	  	  	$	757	  	

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

 	  	2013	 	 	2014	 	
 	  	1st Qtr	 	 	2nd Qtr	 	  	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	
Interest income	  	$	326	  	 	$	271	  	  	$	263	  	 	$	307	  	 	$	1,167	  	 	$	267	  	
Foreign currency (losses) gains	  	 	(179	) 	 	 	972	  	  	 	313	  	 	 	(445	) 	 	 	661	  	 	 	(516	) 	
Other non-operating (expense) income	  	 	4	  	 	 	—  	  	  	 	(30	) 	 	 	20	  	 	 	(6	) 	 	 	16	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other (loss) income	  	$	151	  	 	$	1,243	  	  	$	546	  	 	$	(118	) 	 	$	1,822	  	 	$	(233	) 	

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	 	
Stock options	  	$	148	  	  	$	11	  	  	$	11	  	  	$	20	  	  	$	190	  	  	$	—  	  	
Restricted stock	  	 	1,759	  	  	 	2,122	  	  	 	1,198	  	  	 	2,056	  	  	 	7,135	  	  	 	2,274	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total equity-based compensation	  	 	1,907	  	  	 	2,133	  	  	 	1,209	  	  	 	2,076	  	  	 	7,325	  	  	 	2,274	  	
Income tax provision	  	 	671	  	  	 	751	  	  	 	451	  	  	 	729	  	  	 	2,602	  	  	 	844	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	$	1,236	  	  	$	1,382	  	  	$	758	  	  	$	1,347	  	  	$	4,723	  	  	$	1,430	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Diluted earnings per share	  	$	0.02	  	  	$	0.02	  	  	$	0.01	  	  	$	0.02	  	  	$	0.06	  	  	$	0.02	  	
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	  	
 
8.	Capital expenditures are as follows (in thousands):	

 	 	 	
 	  	2013	 	  	2014	 	
 	  	1st Qtr	 	  	2nd Qtr	 	  	3rd Qtr	 	  	4th Qtr	 	  	Full Year	 	  	1st Qtr	 	
Capital expenditures	  	$	598	  	  	$	1,035	  	  	$	1,568	  	  	$	1,539	  	  	$	4,740	  	  	$	1,156	  	

9.	Stock Repurchase Activity (in thousands):	

 	 	 	
 	  	2013	 	  	2014	 	
 	  	1st Qtr	 	  	2nd Qtr	 	  	3rd Qtr	 	  	4th Qtr	 	  	Full Year	 	  	1st Qtr	 	
Shares purchased under publicly-announced buy-back program	  	 	903	  	  	 	785	  	  	 	607	  	  	 	537	  	  	 	2,832	  	  	 	695	  	
Shares withheld for taxes due upon vesting of restricted stock	  	 	281	  	  	 	1	  	  	 	13	  	  	 	5	  	  	 	300	  	  	 	235	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total shares purchased	  	 	1,184	  	  	 	786	  	  	 	620	  	  	 	542	  	  	 	3,132	  	  	 	930	  	
Total cash paid for shares purchased under publicly-announced buy-back program	  	$	15,929	  	  	$	14,409	  	  	$	13,533	  	  	$	15,332	  	  	$	59,203	  	  	$	25,459	  	
Total cash paid for shares withheld for taxes due upon vesting of restricted stock	  	 	4,545	  	  	 	19	  	  	 	280	  	  	 	152	  	  	 	4,996	  	  	 	7,720	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total cash paid for shares repurchased	  	$	20,474	  	  	$	14,428	  	  	$	13,813	  	  	$	15,484	  	  	$	64,199	  	  	$	33,179