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): July 19, 2012

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, Suite 1000, 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 July 24, 2012, Manhattan Associates, Inc. (the “Company”) issued a press release providing the results for its financial performance for the second quarter and six months ended June 30, 2012. 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 earnings per share, which excludes the impact of acquisition-related costs and the amortization thereof and equity-based compensation- all net of income tax effects and unusual tax adjustments.
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.
We believe that these adjusted (non-GAAP) results provide more meaningful information regarding those aspects of our current operating performance that can be effectively managed, and consequently have developed our internal reporting, compensation and planning systems using these measures. Non-GAAP measures used in the press release exclude the impact of the items described above for the following reasons:
 
 	•	 	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, and thus we exclude these amortization costs when calculating adjusted net income and adjusted earnings per share to facilitate more relevant and meaningful comparisons of our operating results with that of our competitors.	
 
 	•	 	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.	
 
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 5.02.	Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.	
On July 19, 2012, the Board of Directors of Manhattan Associates, Inc. (the “Company”) elected the Company’s Executive Vice President and Chief Operating Officer, Mr. Eddie Capel, to succeed Mr. Peter F. Sinisgalli as the Company’s Chief Executive Officer, effective January 1, 2013. Effective July 24, 2012, Mr. Capel has been appointed President and Chief Operating Officer of the Company and to the Board as a Class I Director.
Mr. Capel, age 51, has served as Executive Vice President and Chief Operating Officer since January 12, 2011. In that capacity, Mr. Capel has been responsible for the Company’s worldwide strategic direction and quality execution across solution strategy, research and development, product management, and professional services and customer support, and has led the Company’s Europe, Middle East and Africa and Asia-Pacific regional operations. Previously, Mr. Capel served as the Company’s Executive Vice President – Global Operations, from January 2009 to January 2011. From January 2008 through January 2009, Mr. Capel served as Executive Vice President – Global Product Management and Customer Services. From January 2005 to January 2007, Mr. Capel served as Senior Vice President – Global Product Management and Global Customer Services, and from January 2004 through January 2005 as Senior Vice President – Product Management. Prior to January 2004, he held various other positions with the Company. Prior to joining Manhattan Associates in June 2000, Mr. Capel held various positions at Real Time Solutions (RTS), including chief operations officer and vice president, operations. He also served as director, operations, with Unarco Automation, an Industrial Automation/Robotics systems integrator. Prior to joining Unarco, Mr. Capel worked as a project manager and system designer for ABB Robotics in the United Kingdom.
 
Item 7.01.	Regulation FD Disclosure.	
A copy of the Company’s press release announcing Mr. Capel’s succession is furnished herewith as Exhibit 99.2.
 
2

Item 9.01.	Financial Statements and Exhibits.	
 
 	(d)	Exhibits.	

Exhibit
Number	  	Description	
 	 	
99.1	  	Press Release Regarding Second Quarter Earnings, dated July 24, 2012	
 	 	
99.2	  	Press Release Regarding CEO Succession, dated July 24, 2012	
 
3

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

MANHATTAN ASSOCIATES, INC.	
 	 	
By:	 	/s/ Dennis B. Story	
Dennis B. Story
Executive Vice President, Chief Financial Officer and Treasurer	
Dated: July 24, 2012
 
4

EXHIBIT INDEX

Exhibit
Number	  	Description	
 	 	
99.1	  	Press Release Regarding Second Quarter Earnings, dated July 24, 2012	
 	 	
99.2	  	Press Release Regarding CEO Succession, dated July 24, 2012	

Exhibit 99.1

For Immediate Release

Contact:	 	Dennis Story	 	Will Haraway	 	 	
 	 	Chief Financial Officer	 	Director, North America Public Relations	 	 	
 	 	Manhattan Associates, Inc.	 	Manhattan Associates, Inc.	 	 	
 	 	678-597-7115	 	678-597-7466	 	 	
 	 	dstory@manh.com	 	wharaway@manh.com	 	 	
Manhattan Associates Reports Record Second Quarter Revenue and Earnings
Company raises full-year EPS guidance
Board of Directors announces CEO succession plan
ATLANTA – July 24, 2012 – Leading supply chain optimization provider Manhattan Associates, Inc. (NASDAQ: MANH) today reported record second quarter 2012 non-GAAP adjusted diluted earnings per share of $0.76 compared to $0.65 in the second quarter 2011, on license revenue of $15.3 million and record total revenue of $93.6 million. GAAP diluted earnings per share was a record $0.70 compared to $0.57 in the prior year second quarter.
Manhattan Associates CEO Pete Sinisgalli commented, “We posted another strong quarter of financial results and operating metrics and are optimistic about our outlook for the balance of 2012 and beyond.”
In a separate release today, the Board of Directors of Manhattan Associates announced plans for Eddie Capel to succeed Pete Sinisgalli as CEO effective January 1, 2013.
SECOND QUARTER 2012 FINANCIAL SUMMARY:
 
 	•	 	Adjusted diluted earnings per share, a non-GAAP measure, was $0.76 in the second quarter of 2012, compared to $0.65 in the second quarter of 2011.	
 
 	•	 	GAAP diluted earnings per share was $0.70 in the second quarter of 2012, compared to $0.57 in the second quarter of 2011.	
 
 	•	 	Consolidated total revenue was $93.6 million in the second quarter of 2012, compared to $88.4 million in the second quarter of 2011. License revenue was $15.3 million in the second quarter of 2012, compared to $16.3 million in the second quarter of 2011.	
 
 	•	 	Adjusted operating income, a non-GAAP measure, was $23.3 million in the second quarter of 2012, compared to $21.1 million in the second quarter of 2011.	

 
 	•	 	GAAP operating income was $21.3 million in the second quarter of 2012, compared to $18.2 million in the second quarter of 2011.	
 
 	•	 	Cash flow from operations was $20.9 million in the second quarter of 2012, compared to $16.0 million in the second quarter of 2011. Days Sales Outstanding was 63 days at June 30, 2012, compared to 57 days at March 31, 2012.	
 
 	•	 	Cash and investments on-hand was $100.9 million at June 30, 2012, compared to $97.5 million at March 31, 2012.	
 
 	•	 	For the three months ended June 30, 2012, the Company repurchased 346,516 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total purchase price of $16.6 million. In July 2012, the Board of Directors approved raising the Company’s remaining share repurchase authority to an aggregate of $50.0 million of the Company’s outstanding common stock.	
SIX MONTH 2012 FINANCIAL SUMMARY:
 
 	•	 	Adjusted diluted earnings per share, a non-GAAP measure, was a record $1.36 for the six months ended June 30, 2012, compared to $1.06 for the six months ended June 30, 2011.	
 
 	•	 	GAAP diluted earnings per share for the six months ended June 30, 2012 was a record $1.25, compared to $0.89 for the six months ended June 30, 2011.	
 
 	•	 	Consolidated total revenue for the six months ended June 30, 2012 was a record $185.0 million, compared to $160.1 million for the six months ended June 30, 2011. License revenue was $30.9 million for the six months ended June 30, 2012, compared to $24.1 million for the six months ended June 30, 2011.	
 
 	•	 	Adjusted operating income, a non-GAAP measure, was $42.9 million for the six months ended June 30, 2012, compared to $31.5 million for the six months ended June 30, 2011.	
 
 	•	 	GAAP operating income was $39.3 million for the six months ended June 30, 2012, compared to $25.8 million for the six months ended June 30, 2011.	
 
 	•	 	For the six months ended June 30, 2012, the Company repurchased 999,273 common shares under the share repurchase program authorized by the Board of Directors, for a total investment of $47.3 million.	

 
SECOND QUARTER 2012 SALES ACHIEVEMENTS:
 
 	•	 	Closing two contracts of $1.0 million or more in recognized license revenue during the second quarter of 2012.	
 
 	•	 	Completing software license wins with new customers such as: Casino Group, Finish Line, Giant Tiger Stores, Gildan Activewear, John Christner Trucking, May Trucking, Pierre Fabre, Pride Transport, Primark Stores and Tango Transport.	
 
 	•	 	Expanding relationships with existing customers such as: CEVA Logistics U.S., Comercializadora Farmaceutica del Sureste, Exel, Foot Locker Corporate Services, HVHC, Itochu Logistics, Jack Link’s Beef Jerky, Langham Logistics, Leroy Merlin France, New Balance Athletic Shoes, Petra Trading & Investment Company, Reser’s Fine Foods, SamsonOpt, Sara Lee Corporation, Shurtech Brands, Southern Wine & Spirits of America, Stella & Dot, Strategic Partners, Tandy Brands Accessories, Walgreen National and Wirtz Corporation.	
2012 GUIDANCE
Manhattan Associates provides the following revenue and diluted earnings per share guidance for the full year 2012:

 	  	Guidance Range - 2012 Full year	 	
($’s in millions, except EPS)	  	$ Range	 	  	% Growth range	 	
Total revenue - current guidance	  	$	365	  	  	$	375	  	  	 	11	% 	 	 	14	% 	
 	 	 	 	 	
Diluted earnings per share (EPS):	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Adjusted EPS(1)- current guidance	  	$	2.65	  	  	$	2.75	  	  	 	14	% 	 	 	19	% 	
GAAP EPS - current guidance	  	$	2.37	  	  	$	2.47	  	  	 	13	% 	 	 	18	% 	
Adjusted EPS(1) - previous guidance	  	$	2.55	  	  	$	2.60	  	  	 	10	% 	 	 	12	% 	
GAAP EPS - previous guidance	  	$	2.27	  	  	$	2.32	  	  	 	9	% 	 	 	11	% 	
 
(1)	Adjusted EPS is Non-GAAP	
Manhattan Associates currently intends to publish, in each quarterly earnings release, certain expectations with respect to future financial performance. These statements are forward-looking. Actual results may differ materially, especially in the current uncertain economic environment. These statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of this release.

 
Manhattan Associates will make its earnings release and published expectations available on its website (www.manh.com). Beginning September 15, 2012, 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 2012 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 October 2012.
CONFERENCE CALL
The Company’s conference call regarding its second quarter financial results will be held at 4:30 p.m. Eastern Time on Tuesday, July 24, 2012. 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 91631126 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’ third quarter 2012 earnings release.
GAAP VERSUS NON-GAAP PRESENTATION
The Company provides adjusted operating income, adjusted net income and adjusted 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’ understanding of its historical operating trends, because it provides important supplemental measurement information in evaluating the operating results of its business. The Company consequently believes that the presentation of these non-GAAP financial measures provides investors with useful insight into its profitability. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the quarter ended June 30, 2012.

 
The non-GAAP adjusted operating income, adjusted net income and adjusted earnings per share exclude the impact of acquisition-related costs and the amortization thereof and equity-based compensation – all net of income tax effects and unusual tax adjustments. 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, INC.
Manhattan Associates continues to deliver on its 22-year heritage of providing global supply chain excellence to more than 1,200 customers worldwide that consider supply chain optimization core to their strategic market leadership. The Company’s supply chain innovations include: Manhattan SCOPE ® , a portfolio of software solutions and technology that leverages a Supply Chain Process Platform to help organizations optimize their supply chains from planning through execution; Manhattan SCALE™, a portfolio of distribution management and transportation management solutions built on Microsoft .NET technology; and Manhattan Carrier™, a suite of supply chain solutions specifically addressing the needs of the motor carrier industry. 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 “2012 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, 2011. 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 June 30, 	 	  	Six Months Ended June 30,	 	
 	  	2012	 	  	2011	 	  	2012	 	  	2011	 	
 	  	(unaudited)	 	
Revenue:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Software license	  	$	15,345	  	  	$	16,347	  	  	$	30,932	  	  	$	24,109	  	
Services	  	 	69,322	  	  	 	63,774	  	  	 	139,692	  	  	 	119,852	  	
Hardware and other	  	 	8,900	  	  	 	8,281	  	  	 	14,424	  	  	 	16,151	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total revenue	  	 	93,567	  	  	 	88,402	  	  	 	185,048	  	  	 	160,112	  	
Costs and expenses:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Cost of license	  	 	1,488	  	  	 	1,824	  	  	 	3,265	  	  	 	3,063	  	
Cost of services	  	 	30,322	  	  	 	27,462	  	  	 	62,032	  	  	 	52,420	  	
Cost of hardware and other	  	 	7,540	  	  	 	6,457	  	  	 	11,988	  	  	 	12,757	  	
Research and development	  	 	10,802	  	  	 	10,676	  	  	 	22,353	  	  	 	21,059	  	
Sales and marketing	  	 	11,415	  	  	 	12,309	  	  	 	23,818	  	  	 	22,909	  	
General and administrative	  	 	9,240	  	  	 	9,238	  	  	 	19,548	  	  	 	17,914	  	
Depreciation and amortization	  	 	1,418	  	  	 	2,223	  	  	 	2,762	  	  	 	4,224	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total costs and expenses	  	 	72,225	  	  	 	70,189	  	  	 	145,766	  	  	 	134,346	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Operating income	  	 	21,342	  	  	 	18,213	  	  	 	39,282	  	  	 	25,766	  	
Other income, net	  	 	802	  	  	 	334	  	  	 	678	  	  	 	352	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Income before income taxes	  	 	22,144	  	  	 	18,547	  	  	 	39,960	  	  	 	26,118	  	
Income tax provision	  	 	7,972	  	  	 	6,208	  	  	 	14,386	  	  	 	6,613	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	$	14,172	  	  	$	12,339	  	  	$	25,574	  	  	$	19,505	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Basic earnings per share	  	$	0.72	  	  	$	0.60	  	  	$	1.29	  	  	$	0.93	  	
Diluted earnings per share	  	$	0.70	  	  	$	0.57	  	  	$	1.25	  	  	$	0.89	  	
Weighted average number of shares:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Basic	  	 	19,765	  	  	 	20,696	  	  	 	19,834	  	  	 	20,861	  	
Diluted	  	 	20,351	  	  	 	21,775	  	  	 	20,494	  	  	 	21,926	  	

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES
(in thousands, except per share amounts)

 	  	Three Months Ended June 30,	 	 	Six Months Ended June 30,	 	
 	  	2012	 	  	2011	 	 	2012	 	  	2011	 	
GAAP Operating income	  	$	21,342	  	  	$	18,213	  	 	$	39,282	  	  	$	25,766	  	
Equity-based compensation(a)	  	 	1,977	  	  	 	2,405	  	 	 	3,637	  	  	 	4,814	  	
Purchase amortization(b)	  	 	1	  	  	 	438	  	 	 	3	  	  	 	877	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Adjusted operating income (Non-GAAP)	  	$	23,320	  	  	$	21,056	  	 	$	42,922	  	  	$	31,457	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
GAAP Income tax provision	  	$	7,972	  	  	$	6,208	  	 	$	14,386	  	  	$	6,613	  	
Equity-based compensation(a)	  	 	711	  	  	 	806	  	 	 	1,309	  	  	 	1,613	  	
Purchase amortization(b)	  	 	—  	  	  	 	147	  	 	 	1	  	  	 	294	  	
Unusual tax adjustments(c)	  	 	—  	  	  	 	6	  	 	 	—  	  	  	 	112	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Adjusted income tax provision (Non-GAAP)	  	$	8,683	  	  	$	7,167	  	 	$	15,696	  	  	$	8,632	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
GAAP Net income	  	$	14,172	  	  	$	12,339	  	 	$	25,574	  	  	$	19,505	  	
Equity-based compensation(a)	  	 	1,266	  	  	 	1,599	  	 	 	2,328	  	  	 	3,201	  	
Purchase amortization(b)	  	 	1	  	  	 	291	  	 	 	2	  	  	 	583	  	
Unusual tax adjustments(c)	  	 	—  	  	  	 	(6	) 	 	 	—  	  	  	 	(112	) 	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Adjusted net income (Non-GAAP)	  	$	15,439	  	  	$	14,223	  	 	$	27,904	  	  	$	23,177	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
GAAP Diluted EPS	  	$	0.70	  	  	$	0.57	  	 	$	1.25	  	  	$	0.89	  	
Equity-based compensation(a)	  	 	0.06	  	  	 	0.07	  	 	 	0.11	  	  	 	0.15	  	
Purchase amortization(b)	  	 	—  	  	  	 	0.01	  	 	 	—  	  	  	 	0.03	  	
Unusual tax adjustments(c)	  	 	—  	  	  	 	—  	  	 	 	—  	  	  	 	(0.01	) 	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Adjusted diluted EPS (Non-GAAP)	  	$	0.76	  	  	$	0.65	  	 	$	1.36	  	  	$	1.06	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Fully diluted shares	  	 	20,351	  	  	 	21,775	  	 	 	20,494	  	  	 	21,926	  	
 
(a)	To be consistent with other companies in the software industry, we report adjusted results excluding all equity-based compensation. The equity-based compensation is included in the following GAAP operating expense lines for the three and six months ended June 30, 2012 and 2011:	

 	  	Three Months Ended June 30, 	 	  	Six Months Ended June 30,	 	
 	  	2012	 	  	2011	 	  	2012	 	  	2011	 	
Cost of services	  	$	309	  	  	$	356	  	  	$	185	  	  	$	703	  	
Research and development	  	 	416	  	  	 	386	  	  	 	699	  	  	 	758	  	
Sales and marketing	  	 	517	  	  	 	562	  	  	 	1,150	  	  	 	1,148	  	
General and administrative	  	 	735	  	  	 	1,101	  	  	 	1,603	  	  	 	2,205	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total equity-based compensation	  	$	1,977	  	  	$	2,405	  	  	$	3,637	  	  	$	4,814	  	

(b)	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.	
(c)	For the three and six months ended June 30, 2011, the adjustments represent tax benefit from disqualifying dispositions of incentive stock options that were previously expensed. As discussed above, we excluded equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry. Therefore, we also excluded the related tax benefit generated upon their disposition.	

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

 	  	June 30, 2012	 	 	December 31, 2011	 	
 	  	(unaudited)	 	 	 	 	
ASSETS	  	 	 	 	 	 	 	 	
Current Assets:	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	95,092	  	 	$	92,180	  	
Short term investments	  	 	5,798	  	 	 	6,079	  	
Accounts receivable, net of allowance of $6,646 and $4,816 in 2012 and 2011, respectively	  	 	64,439	  	 	 	56,264	  	
Deferred income taxes	  	 	7,530	  	 	 	7,599	  	
Income taxes receivable	  	 	—  	  	 	 	4,859	  	
Prepaid expenses and other current assets	  	 	7,553	  	 	 	7,533	  	
 	  	 	 	 	 	 	 	 	
Total current assets	  	 	180,412	  	 	 	174,514	  	
Property and equipment, net	  	 	13,769	  	 	 	13,321	  	
Long-term investments	  	 	—  	  	 	 	855	  	
Goodwill, net	  	 	62,256	  	 	 	62,261	  	
Deferred income taxes	  	 	3,207	  	 	 	5,696	  	
Other assets	  	 	2,254	  	 	 	2,953	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	261,898	  	 	$	259,600	  	
 	  	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	  	 	 	 	 	 	 	 	
Current liabilities:	  	 	 	 	 	 	 	 	
Accounts payable	  	$	8,087	  	 	$	8,090	  	
Accrued compensation and benefits	  	 	13,532	  	 	 	16,503	  	
Accrued and other liabilities	  	 	13,154	  	 	 	13,648	  	
Deferred revenue	  	 	52,700	  	 	 	49,882	  	
Income tax payable	  	 	2,233	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	89,706	  	 	 	88,123	  	
Other non-current liabilities	  	 	8,863	  	 	 	9,397	  	
Shareholders’ equity:	  	 	 	 	 	 	 	 	
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2012 or 2011	  	 	—  	  	 	 	—  	  	
Common stock, $.01 par value; 100,000,000 shares authorized; 20,022,531 and 20,415,946 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively	  	 	200	  	 	 	204	  	
Additional paid-in capital	  	 	—  	  	 	 	—  	  	
Retained earnings	  	 	168,884	  	 	 	166,989	  	
Accumulated other comprehensive loss	  	 	(5,755	)  	 	 	(5,113	) 	
 	  	 	 	 	 	 	 	 	
Total shareholders’ equity	  	 	163,329	  	 	 	162,080	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	  	$	261,898	  	 	$	259,600	  	

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 	  	Six Months Ended June 30,	 	
 	  	2012	 	 	2011	 	
 	  	(unaudited)	 	
Operating activities:	  	 	 	 	 	 	 	 	
Net income	  	$	25,574	  	 	$	19,505	  	
Adjustments to reconcile net income to net cash provided by operating activities:	  	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	2,762	  	 	 	4,224	  	
Equity-based compensation	  	 	3,637	  	 	 	4,814	  	
(Gain) loss on disposal of equipment	  	 	(3	)  	 	 	12	  	
Tax benefit of stock awards exercised/vested	  	 	4,981	  	 	 	2,885	  	
Excess tax benefits from equity-based compensation	  	 	(4,062	)  	 	 	(1,198	) 	
Deferred income taxes	  	 	2,461	  	 	 	(633	) 	
Unrealized foreign currency loss	  	 	173	  	 	 	(57	) 	
Changes in operating assets and liabilities:	  	 	 	 	 	 	 	 	
Accounts receivable, net	  	 	(8,206	)  	 	 	(5,198	) 	
Other assets	  	 	650	  	 	 	(623	) 	
Accounts payable, accrued and other liabilities	  	 	(4,056	)  	 	 	(5,347	) 	
Income taxes	  	 	7,163	  	 	 	855	  	
Deferred revenue	  	 	2,876	  	 	 	4,886	  	
 	  	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	33,950	  	 	 	24,125	  	
 	  	 	 	 	 	 	 	 	
Investing activities:	  	 	 	 	 	 	 	 	
Purchase of property and equipment	  	 	(3,250	)  	 	 	(1,996	) 	
Net maturities (purchases) of investments	  	 	1,223	  	 	 	(723	) 	
 	  	 	 	 	 	 	 	 	
Net cash used in investing activities	  	 	(2,027	)  	 	 	(2,719	) 	
 	  	 	 	 	 	 	 	 	
Financing activities:	  	 	 	 	 	 	 	 	
Purchase of common stock	  	 	(50,235	) 	 	 	(65,996	) 	
Proceeds from issuance of common stock from options exercised	  	 	17,933	  	 	 	25,517	  	
Excess tax benefits from equity-based compensation	  	 	4,062	  	 	 	1,198	  	
 	  	 	 	 	 	 	 	 	
Net cash used in financing activities	  	 	(28,240	) 	 	 	(39,281	) 	
 	  	 	 	 	 	 	 	 	
Foreign currency impact on cash	  	 	(771	)  	 	 	531	  	
 	  	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	  	 	2,912	  	 	 	(17,344	) 	
Cash and cash equivalents at beginning of period	  	 	92,180	  	 	 	120,744	  	
 	  	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	  	$	95,092	  	 	$	103,400	  	

MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

1. GAAP and Adjusted earnings (loss) per share by quarter are as follows:	  	
 	 	 	
 	  	2011	 	 	2012	 	
 	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	YTD	 	
GAAP Diluted EPS	  	$	0.32	  	 	$	0.57	  	 	$	0.70	  	 	$	0.50	  	 	$	2.09	  	 	$	0.55	  	 	$	0.70	  	 	$	1.25	  	
Adjustments to GAAP:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity-based compensation	  	 	0.07	  	 	 	0.07	  	 	 	0.08	  	 	 	0.09	  	 	 	0.32	  	 	 	0.05	  	 	 	0.06	  	 	 	0.11	  	
Purchase amortization	  	 	0.01	  	 	 	0.01	  	 	 	0.01	  	 	 	—  	  	 	 	0.04	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Recovery of previously impaired investment	  	 	—  	  	 	 	—  	  	 	 	(0.12	) 	 	 	—  	  	 	 	(0.12	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Unusual tax adjustments	  	 	—  	  	 	 	—  	  	 	 	(0.01	) 	 	 	—  	  	 	 	(0.01	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Diluted EPS	  	$	0.41	  	 	$	0.65	  	 	$	0.67	  	 	$	0.60	  	 	$	2.32	  	 	$	0.60	  	 	$	0.76	  	 	$	1.36	  	

2. Revenues and operating income (loss) by reportable segment are as follows (in thousands):	  	
 	 	 	
 	  	2011	 	 	2012	 	
 	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	YTD	 	
Revenue:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Americas	  	$	60,185	  	 	$	72,634	  	 	$	70,663	  	 	$	69,377	  	 	$	272,859	  	 	$	73,195	  	 	$	77,094	  	 	$	150,289	  	
EMEA	  	 	8,336	  	 	 	11,075	  	 	 	10,041	  	 	 	8,843	  	 	 	38,295	  	 	 	12,407	  	 	 	12,334	  	 	 	24,741	  	
APAC	  	 	3,189	  	 	 	4,693	  	 	 	4,898	  	 	 	5,319	  	 	 	18,099	  	 	 	5,879	  	 	 	4,139	  	 	 	10,018	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	$	71,710	  	 	$	88,402	  	 	$	85,602	  	 	$	83,539	  	 	$	329,253	  	 	$	91,481	  	 	$	93,567	  	 	$	185,048	  	

GAAP Operating Income (Loss):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Americas	  	$	7,087	  	 	$	15,749	  	 	$	17,183	  	 	$	13,531	  	 	$	53,550	  	 	$	13,685	  	 	$	18,130	  	 	$	31,815	  	
EMEA	  	 	909	  	 	 	1,963	  	 	 	1,334	  	 	 	1,033	  	 	 	5,239	  	 	 	2,580	  	 	 	2,944	  	 	 	5,524	  	
APAC	  	 	(443	) 	 	 	501	  	 	 	877	  	 	 	1,639	  	 	 	2,574	  	 	 	1,675	  	 	 	268	  	 	 	1,943	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	$	7,553	  	 	$	18,213	  	 	$	19,394	  	 	$	16,203	  	 	$	61,363	  	 	$	17,940	  	 	$	21,342	  	 	$	39,282	  	

Adjustments (pre-tax):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Americas:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity-based compensation	  	$	2,409	  	 	$	2,405	  	 	$	2,503	  	 	$	3,055	  	 	$	10,372	  	 	$	1,660	  	 	$	1,977	  	 	$	3,637	  	
Purchase amortization	  	 	439	  	 	 	438	  	 	 	293	  	 	 	2	  	 	 	1,172	  	 	 	2	  	 	 	1	  	 	 	3	  	
Recovery of previously impaired investment	  	 	—  	  	 	 	—  	  	 	 	(2,519	) 	 	 	—  	  	 	 	(2,519	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	$	2,848	  	 	$	2,843	  	 	$	277	  	 	$	3,057	  	 	$	9,025	  	 	$	1,662	  	 	$	1,978	  	 	$	3,640	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted non-GAAP Operating Income (Loss):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Americas	  	$	9,935	  	 	$	18,592	  	 	$	17,460	  	 	$	16,588	  	 	$	62,575	  	 	$	15,347	  	 	$	20,108	  	 	$	35,455	  	
EMEA	  	 	909	  	 	 	1,963	  	 	 	1,334	  	 	 	1,033	  	 	 	5,239	  	 	 	2,580	  	 	 	2,944	  	 	 	5,524	  	
APAC	  	 	(443	) 	 	 	501	  	 	 	877	  	 	 	1,639	  	 	 	2,574	  	 	 	1,675	  	 	 	268	  	 	 	1,943	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	$	10,401	  	 	$	21,056	  	 	$	19,671	  	 	$	19,260	  	 	$	70,388	  	 	$	19,602	  	 	$	23,320	  	 	$	42,922	  	

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):	   	
 	 	 	
 	  	2011	 	 	2012	 	
 	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	YTD	 	
Professional services	  	$	35,184	  	 	$	42,150	  	 	$	41,403	  	 	$	38,057	  	 	$	156,794	  	 	$	46,621	  	 	$	45,497	  	 	$	92,118	  	
Customer support and software enhancements	  	 	20,894	  	 	 	21,624	  	 	 	22,191	  	 	 	22,555	  	 	 	87,264	  	 	 	23,749	  	 	 	23,825	  	 	 	47,574	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total services revenue	  	$	56,078	  	 	$	63,774	  	 	$	63,594	  	 	$	60,612	  	 	$	244,058	  	 	$	70,370	  	 	$	69,322	  	 	$	139,692	  	

4. Hardware and other revenue includes the following items (in thousands):	  	
 	 	 	
 	  	2011	 	 	2012	 	
 	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	YTD	 	
Hardware revenue	  	$	5,504	  	 	$	5,540	  	 	$	5,597	  	 	$	3,895	  	 	$	20,536	  	 	$	3,054	  	 	$	5,740	  	 	$	8,794	  	
Billed travel	  	 	2,366	  	 	 	2,741	  	 	 	2,846	  	 	 	2,465	  	 	 	10,418	  	 	 	2,470	  	 	 	3,160	  	 	 	5,630	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total hardware and other revenue	  	$	7,870	  	 	$	8,281	  	 	$	8,443	  	 	$	6,360	  	 	$	30,954	  	 	$	5,524	  	 	$	8,900	  	 	$	14,424	  	

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):	    	
 	 	 	
 	  	2011	 	 	2012	 	
 	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	YTD	 	
Revenue	  	$	282	  	 	$	1,743	  	 	$	1,140	  	 	$	110	  	 	$	3,275	  	 	$	(136	) 	 	$	(1,251	) 	 	$	(1,387	) 	
Costs and expenses	  	 	386	  	 	 	1,513	  	 	 	1,038	  	 	 	(668	) 	 	 	2,269	  	 	 	(848	) 	 	 	(2,067	) 	 	 	(2,915	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	(104	) 	 	 	230	  	 	 	102	  	 	 	778	  	 	 	1,006	  	 	 	712	  	 	 	816	  	 	 	1,528	  	
Foreign currency gains (losses) in other income	  	 	(207	) 	 	 	77	  	 	 	575	  	 	 	367	  	 	 	812	  	 	 	(370	) 	 	 	571	  	 	 	201	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	$	(311	)  	 	$	307	  	 	$	677	  	 	$	1,145	  	 	$	1,818	  	 	$	342	  	 	$	1,387	  	 	$	1,729	  	

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):
 	   	
 	  	2011	 	 	2012	 	
 	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	YTD	 	
Operating income	  	$	(53	) 	 	$	(82	) 	 	$	(76	) 	 	$	727	  	 	$	516	  	 	$	704	  	 	$	1,193	  	 	$	1,897	  	
Foreign currency gains (losses) in other income	  	 	(112	) 	 	 	53	  	 	 	653	  	 	 	638	  	 	 	1,232	  	 	 	(144	) 	 	 	724	  	 	 	580	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total impact of changes in the Indian Rupee	  	$	(165	)  	 	$	(29	)  	 	$	577	  	 	$	1,365	  	 	$	1,748	  	 	$	560	  	 	$	1,917	  	 	$	2,477	  	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
6. Other (expense) income includes the following components (in thousands):	  	
 	 	 	
 	  	2011	 	 	2012	 	
 	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	  	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	  	YTD	 	
Interest income	  	$	225	  	 	$	269	  	 	$	298	  	 	$	280	  	  	$	1,072	  	 	$	264	  	 	$	228	  	  	$	492	  	
Foreign currency (losses) gains	  	 	(207	) 	 	 	77	  	 	 	575	  	 	 	367	  	  	 	812	  	 	 	(370	) 	 	 	571	  	  	 	201	  	
Other non-operating (expense) income	  	 	—  	  	 	 	(12	) 	 	 	(11	) 	 	 	3	  	  	 	(20	) 	 	 	(18	) 	 	 	3	  	  	 	(15	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total other (expense) income	  	$	18	  	 	$	334	  	 	$	862	  	 	$	650	  	  	$	1,864	  	 	$	(124	)  	 	$	802	  	  	$	678	  	

7. Total equity-based compensation is as follows (in thousands except per share amounts):	  	
 	 	 	
 	  	2011	 	 	2012	 	
 	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	  	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	  	YTD	 	
Stock options	  	$	512	  	 	$	487	  	 	$	486	  	 	$	518	  	  	$	2,003	  	 	$	120	  	 	$	140	  	  	$	260	  	
Restricted stock	  	 	1,897	  	 	 	1,918	  	 	 	2,017	  	 	 	2,537	  	  	 	8,369	  	 	 	1,540	  	 	 	1,837	  	  	 	3,377	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total equity-based compensation	  	 	2,409	  	 	 	2,405	  	 	 	2,503	  	 	 	3,055	  	  	 	10,372	  	 	 	1,660	  	 	 	1,977	  	  	 	3,637	  	
Income tax provision	  	 	807	  	 	 	806	  	 	 	838	  	 	 	1,075	  	  	 	3,526	  	 	 	598	  	 	 	711	  	  	 	1,309	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Net income	  	$	1,602	  	 	$	1,599	  	 	$	1,665	  	 	$	1,980	  	  	$	6,846	  	 	$	1,062	  	 	$	1,266	  	  	$	2,328	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Diluted earnings per share	  	$	0.07	  	 	$	0.07	  	 	$	0.08	  	 	$	0.09	  	  	$	0.32	  	 	$	0.05	  	 	$	0.06	  	  	$	0.11	  	
Diluted earnings per share - stock options	  	$	0.02	  	 	$	0.01	  	 	$	0.02	  	 	$	0.02	  	  	$	0.06	  	 	$	0.00	  	 	$	—  	  	  	$	0.01	  	
Diluted earnings per share - restricted stock	  	$	0.06	  	 	$	0.06	  	 	$	0.06	  	 	$	0.08	  	  	$	0.26	  	 	$	0.05	  	 	$	0.06	  	  	$	0.10	  	
 	
8. Capital expenditures are as follows (in thousands):	  	
 	 	 	
 	  	2011	 	 	2012	 	
 	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	  	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	  	YTD	 	
Capital expenditures	  	$	1,338	  	 	$	658	  	 	$	1,676	  	 	$	1,402	  	  	$	5,074	  	 	$	1,796	  	 	$	1,454	  	  	$	3,250	  	

9. Stock Repurchase Activity (in thousands):	  	
 	 	 	
 	  	2011	 	 	2012	 	
 	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	  	Full Year	 	 	1st Qtr	 	 	2nd Qtr	 	  	YTD	 	
Shares purchased under publicly-announced buy-back program	  	 	826	  	 	 	1,079	  	 	 	845	  	 	 	857	  	  	 	3,607	  	 	 	653	  	 	 	346	  	  	 	999	  	
Shares withheld for taxes due upon vesting of restricted stock	  	 	65	  	 	 	4	  	 	 	4	  	 	 	5	  	  	 	78	  	 	 	66	  	 	 	3	  	  	 	69	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total shares purchased	  	 	891	  	 	 	1,083	  	 	 	849	  	 	 	862	  	  	 	3,685	  	 	 	719	  	 	 	349	  	  	 	1,068	  	
 	 	 	 	 	 	 	 	 	
Total cash paid for shares purchased under publicly-announced buy-back program	  	$	25,621	  	 	$	38,286	  	 	$	29,414	  	 	$	37,390	  	  	$	130,711	  	 	$	30,647	  	 	$	16,616	  	  	$	47,263	  	
Total cash paid for shares withheld for taxes due upon vesting of restricted stock	  	 	1,960	  	 	 	129	  	 	 	159	  	 	 	185	  	  	 	2,433	  	 	 	2,840	  	 	 	132	  	  	 	2,972	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total cash paid for shares repurchased	  	$	27,581	  	 	$	38,415	  	 	$	29,573	  	 	$	37,575	  	  	$	133,144	  	 	$	33,487	  	 	$	16,748	  	  	$	50,235	  	

Exhibit 99.2

For Immediate Release

Contact:	  	Dennis Story	  	Will Haraway	
 	  	Chief Financial Officer	  	Director, North America Public Relations	
 	  	Manhattan Associates, Inc.	  	Manhattan Associates, Inc.	
 	  	678-597-7115	  	678-597-7466	
 	  	dstory@manh.com	  	wharaway@manh.com	
Manhattan Associates Announces CEO Succession Plan
— Eddie Capel to become chief executive officer in 2013 —
ATLANTA — July 24, 2012 — The Board of Directors of Manhattan Associates, Inc. (NASDAQ: MANH) today announced plans for Eddie Capel to succeed Pete Sinisgalli as Manhattan’s chief executive officer effective January 1, 2013. Mr. Sinisgalli will continue to serve on the Manhattan Associates Board of Directors.
Pete Sinisgalli joined Manhattan Associates in February 2004 as president and chief operating officer and assumed the CEO position in July 2004. Mr. Capel joined Manhattan Associates in June 2000 and has deep experience in all areas of the Company’s business. To help him prepare for the CEO role, he was appointed to the chief operating officer position in January 2011. Effective today he is promoted to president and chief operating officer and appointed to the Manhattan Associates Board of Directors. He and Pete Sinisgalli will work together over the balance of 2012 to ensure a smooth transition of responsibilities.
John Huntz, Chairman of the Board of Manhattan Associates, commented, “During his tenure as CEO, Pete Sinisgalli has been an outstanding leader for our company. The Board thanks Pete for his many important contributions to our success. Over the past few years, our Board has worked closely with Pete to develop a succession plan for the CEO position. Eddie Capel has proven to be a highly qualified, experienced leader, and we have great confidence he will continue to drive Manhattan Associates’ market leadership and financial success.”
Pete Sinisgalli stated, “This is an ideal time for a CEO transition. The Company is in very good shape strategically, competitively, operationally and financially. The management team at Manhattan is second to none and is ready to capitalize on the many market opportunities ahead. I have great confidence in Eddie and his ability to lead Manhattan to the next level of success. He is surrounded by a very strong group of talented people at all levels of the organization.”
Eddie Capel commented, “I look forward to working closely with Pete to finish out 2012 in strong fashion, and I’m excited about leading Manhattan Associates in 2013 and into the future.”
About Manhattan Associates, Inc.
Manhattan Associates continues to deliver on its 22-year heritage of providing global supply chain excellence to more than 1,200 customers worldwide that consider supply chain optimization core to their strategic market leadership. The company’s supply chain innovations include:  Manhattan SCOPE ® , a portfolio of software solutions and technology that leverages a Supply Chain Process Platform to help organizations optimize their supply chains from planning through execution;  Manhattan SCALE™ , a portfolio of distribution management and transportation management solutions built on Microsoft .NET technology; and  Manhattan Carrier™ , a suite of supply chain solutions specifically addressing the needs of the motor carrier industry. For more information, please visit  www.manh.com .
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