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 24, 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 April 24, 2012, Manhattan Associates, Inc. (the “Company”) issued a press release providing the results for its financial performance for the first quarter ended March 31, 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.
Adjusted Income and Earnings Per Share
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.	
For these reasons, we have developed our internal reporting, compensation and planning systems using non-GAAP measures which adjust for these amounts.
 
2

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, as distinct from results that include items that are not indicative of ongoing operating results, and thus provide the investors with useful insight into our profitability exclusive of unusual adjustments. While these adjusted items may not be considered as non-recurring in nature in a strictly accounting sense, management regards those items as infrequent and not arising out of the ordinary course of business and finds it useful to utilize a non-GAAP measure in evaluating the performance of our underlying core 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 or severance related activities 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 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: April 24, 2012

EXHIBIT INDEX

Exhibit
Number	  	Description	
 	 	
99.1	  	Press Release, dated April 24, 2012.	

Exhibit 99.1

 
 	 	 	 	 	
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 First Quarter Revenue and Earnings
Company raises full-year Revenue and EPS guidance
ATLANTA – April 24, 2012 – Leading supply chain optimization provider Manhattan Associates, Inc. (NASDAQ: MANH) today reported record first quarter 2012 non-GAAP adjusted diluted earnings per share of $0.60 compared to $0.41 in the first quarter 2011, on license revenue of $15.6 million and record total revenue of $91.5 million. GAAP diluted earnings per share was a record $0.55 compared to $0.32 in the prior year first quarter.
Manhattan Associates President and CEO Pete Sinisgalli commented, “Our first quarter financial results and operating metrics were strong. Moreover, our competitive position continues to improve. While it remains difficult to forecast the global economy, we are well positioned for a solid year in 2012 and beyond.”
FIRST QUARTER 2012 FINANCIAL SUMMARY:
 
 	•	 	Adjusted diluted earnings per share, a non-GAAP measure, was $0.60 in the first quarter of 2012, compared to $0.41 in the first quarter of 2011.	
 
 	•	 	GAAP diluted earnings per share was $0.55 in the first quarter of 2012, compared to $0.32 in the first quarter of 2011.	
 
 	•	 	Consolidated total revenue was $91.5 million in the first quarter of 2012, compared to $71.7 million in the first quarter of 2011. License revenue was $15.6 million in the first quarter of 2012, compared to $7.8 million in the first quarter of 2011.	
 
 	•	 	Adjusted operating income, a non-GAAP measure, was $19.6 million in the first quarter of 2012, compared to $10.4 million in the first quarter of 2011.	
 
 	•	 	GAAP operating income was $17.9 million in the first quarter of 2012, compared to $7.6 million in the first quarter of 2011.	

 
 
 	•	 	Cash flow from operations was $13.1 million in the first quarter of 2012, compared to $8.1 million in the first quarter of 2011. Days Sales Outstanding was 57 days at March 31, 2012, compared to 62 days at December 31, 2011.	
 
 	•	 	Cash and investments on-hand was $97.5 million at March 31, 2012, compared to $99.1 million at December 31, 2011.	
 
 	•	 	The Company repurchased 652,757 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total purchase price of $30.6 million. In April 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.	
SALES ACHIEVEMENTS:
 
 	•	 	Closing five contracts of $1.0 million or more in recognized license revenue during the first quarter of 2012.	
 
 	•	 	Completing software license wins with new customers such as: Anderson-Dubose Company, Central Retail Corporation, Domotekhnika, EARP Meat Company, Forever Direct EU, Gateway Distribution, J. Crew, Itella Oyj, Lam Soon, Luolai Home Textile Co., and Origin Enterprises.	
 
 	•	 	Expanding relationships with existing customers such as: Alliant Techsystems, ATB Market, Asda Stores, Buffalo Hospital Supply Co., Ceva Logistics, Coleman Cable, Damco Distribution Services, DHL, Jumei, Leroy Merlin, Laura Ashley, Lesaint Logistics, Masscash, Nature’s Best, Niagara Bottling, Nike, Oatey Co., Orchard Supply Hardware, Performance Team Freight Systems, PetSmart, Teavana, Carter’s and Winn-Dixie.	

 
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	% 	
Total revenue–previous guidance	  	$	363	  	  	$	370	  	  	 	10	% 	 	 	12	% 	
 	 	 	 	 	
Diluted earnings per share (EPS):	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Adjusted EPS(1)–current guidance	  	$	2.55	  	  	$	2.60	  	  	 	10	% 	 	 	12	% 	
GAAP EPS–current guidance	  	$	2.27	  	  	$	2.32	  	  	 	9	% 	 	 	11	% 	
 	 	 	 	 	
Adjusted EPS(1)–previous guidance	  	$	2.50	  	  	$	2.55	  	  	 	8	% 	 	 	10	% 	
GAAP EPS–previous guidance	  	$	2.22	  	  	$	2.27	  	  	 	6	% 	 	 	9	% 	
 
(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 June 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 July 2012.
CONFERENCE CALL
The Company’s conference call regarding its first quarter financial results will be held at 4:30 p.m. Eastern Time on Tuesday April 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 webcast, 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 64993888 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 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, as distinct from results that include items that are not indicative of ongoing operating results. 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 March 31, 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 March 31,	 	
 	  	2012	 	 	2011	 	
 	  	(unaudited)	 	
Revenue:	  	 	 	 	 	 	 	 	
Software license	  	$	15,587	  	 	$	7,762	  	
Services	  	 	70,370	  	 	 	56,078	  	
Hardware and other	  	 	5,524	  	 	 	7,870	  	
 	  	 	 	 	 	 	 	 	
Total revenue	  	 	91,481	  	 	 	71,710	  	
Costs and expenses:	  	 	 	 	 	 	 	 	
Cost of license	  	 	1,777	  	 	 	1,239	  	
Cost of services	  	 	31,710	  	 	 	24,958	  	
Cost of hardware and other	  	 	4,448	  	 	 	6,300	  	
Research and development	  	 	11,551	  	 	 	10,383	  	
Sales and marketing	  	 	12,403	  	 	 	10,600	  	
General and administrative	  	 	10,308	  	 	 	8,676	  	
Depreciation and amortization	  	 	1,344	  	 	 	2,001	  	
 	  	 	 	 	 	 	 	 	
Total costs and expenses	  	 	73,541	  	 	 	64,157	  	
 	  	 	 	 	 	 	 	 	
Operating income	  	 	17,940	  	 	 	7,553	  	
Other (loss) income, net	  	 	(124	) 	 	 	18	  	
 	  	 	 	 	 	 	 	 	
Income before income taxes	  	 	17,816	  	 	 	7,571	  	
Income tax provision	  	 	6,414	  	 	 	405	  	
 	  	 	 	 	 	 	 	 	
Net income	  	$	11,402	  	 	$	7,166	  	
 	  	 	 	 	 	 	 	 	
Basic earnings per share	  	$	0.57	  	 	$	0.34	  	
Diluted earnings per share	  	$	0.55	  	 	$	0.32	  	
Weighted average number of shares:	  	 	 	 	 	 	 	 	
Basic	  	 	19,904	  	 	 	21,027	  	
Diluted	  	 	20,637	  	 	 	22,079	  	

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

 	  	Three Months Ended March 31,	 	
 	  	2012	 	  	2011	 	
Operating income	  	$	17,940	  	  	$	7,553	  	
Equity-based compensation(a)	  	 	1,660	  	  	 	2,409	  	
Purchase amortization(b)	  	 	2	  	  	 	439	  	
 	  	 	 	 	  	 	 	 	
Adjusted operating income (Non-GAAP)	  	$	19,602	  	  	$	10,401	  	
 	  	 	 	 	  	 	 	 	
Income tax provision	  	$	6,414	  	  	$	405	  	
Equity-based compensation(a)	  	 	598	  	  	 	807	  	
Purchase amortization(b)	  	 	1	  	  	 	147	  	
Unusual tax adjustments(c)	  	 	—  	  	  	 	106	  	
 	  	 	 	 	  	 	 	 	
Adjusted income tax provision (Non-GAAP)	  	$	7,013	  	  	$	1,465	  	
 	  	 	 	 	  	 	 	 	
Net income	  	$	11,402	  	  	$	7,166	  	
Equity-based compensation(a)	  	 	1,062	  	  	 	1,602	  	
Purchase amortization(b)	  	 	1	  	  	 	292	  	
Unusual tax adjustments(c)	  	 	—  	  	  	 	(106	) 	
 	  	 	 	 	  	 	 	 	
Adjusted net income (Non-GAAP)	  	$	12,465	  	  	$	8,954	  	
 	  	 	 	 	  	 	 	 	
Diluted EPS	  	$	0.55	  	  	$	0.32	  	
Equity-based compensation(a)	  	 	0.05	  	  	 	0.07	  	
Purchase amortization(b)	  	 	—  	  	  	 	0.01	  	
Unusual tax adjustments(c)	  	 	—  	  	  	 	—  	  	
 	  	 	 	 	  	 	 	 	
Adjusted diluted EPS (Non-GAAP)	  	$	0.60	  	  	$	0.41	  	
 	  	 	 	 	  	 	 	 	
Fully diluted shares	  	 	20,637	  	  	 	22,079	  	
 
(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 months ended March 31, 2012 and 2011:	

 	  	Three Months Ended March 31,	 	
 	  	2012	 	 	2011	 	
Cost of services	  	$	(124	) 	 	$	347	  	
Research and development	  	 	283	  	 	 	372	  	
Sales and marketing	  	 	633	  	 	 	586	  	
General and administrative	  	 	868	  	 	 	1,104	  	
 	  	 	 	 	 	 	 	 	
Total equity-based compensation	  	$	1,660	  	 	$	2,409	  	

(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 quarter ended March 31, 2011, the adjustment represents a 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)

 	  	March 31,
2012	 	 	December 31,
2011	 	
 	  	(unaudited)	 	 	 	 	
ASSETS	  	 	 	 	 	 	 	 	
Current Assets:	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	92,277	  	 	$	92,180	  	
Short term investments	  	 	4,340	  	 	 	6,079	  	
Accounts receivable, net of allowance of $5,189 and $4,816 in 2012 and 2011, respectively	  	 	57,196	  	 	 	56,264	  	
Deferred income taxes	  	 	7,632	  	 	 	7,599	  	
Income taxes receivable	  	 	5,782	  	 	 	4,859	  	
Prepaid expenses and other current assets	  	 	8,202	  	 	 	7,533	  	
 	  	 	 	 	 	 	 	 	
Total current assets	  	 	175,429	  	 	 	174,514	  	
Property and equipment, net	  	 	13,918	  	 	 	13,321	  	
Long-term investments	  	 	855	  	 	 	855	  	
Goodwill, net	  	 	62,266	  	 	 	62,261	  	
Deferred income taxes	  	 	3,185	  	 	 	5,696	  	
Other assets	  	 	2,671	  	 	 	2,953	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	258,324	  	 	$	259,600	  	
 	  	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	  	 	 	 	 	 	 	 	
Current liabilities:	  	 	 	 	 	 	 	 	
Accounts payable	  	$	5,680	  	 	$	8,090	  	
Accrued compensation and benefits	  	 	13,137	  	 	 	16,503	  	
Accrued and other liabilities	  	 	14,583	  	 	 	13,648	  	
Deferred revenue	  	 	52,462	  	 	 	49,882	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	85,862	  	 	 	88,123	  	
Other non-current liabilities	  	 	9,120	  	 	 	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; 20,309,967 and 20,415,946 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively	  	 	203	  	 	 	204	  	
Additional paid-in capital	  	 	—  	  	 	 	—  	  	
Retained earnings	  	 	167,164	  	 	 	166,989	  	
Accumulated other comprehensive loss	  	 	(4,025	) 	 	 	(5,113	) 	
 	  	 	 	 	 	 	 	 	
Total shareholders’ equity	  	 	163,342	  	 	 	162,080	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and shareholders’ equity	  	$	258,324	  	 	$	259,600	  	

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

 	  	Three Months Ended March 31,	 	
 	  	2012	 	 	2011	 	
 	  	(unaudited)	 	
Operating activities:	  	 	 	 	 	 	 	 	
Net income	  	$	11,402	  	 	$	7,166	  	
Adjustments to reconcile net income to net cash provided by operating activities:	  	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	1,344	  	 	 	2,001	  	
Equity-based compensation	  	 	1,660	  	 	 	2,409	  	
Gain on disposal of equipment	  	 	—  	  	 	 	(1	) 	
Tax benefit of stock awards exercised/vested	  	 	4,491	  	 	 	1,199	  	
Excess tax benefits from equity-based compensation	  	 	(3,634	) 	 	 	(689	) 	
Deferred income taxes	  	 	2,564	  	 	 	(1,070	) 	
Unrealized foreign currency loss	  	 	172	  	 	 	52	  	
Changes in operating assets and liabilities:	  	 	 	 	 	 	 	 	
Accounts receivable, net	  	 	(627	) 	 	 	2,439	  	
Other assets	  	 	(292	) 	 	 	(1,210	) 	
Accounts payable, accrued and other liabilities	  	 	(5,517	) 	 	 	(10,894	) 	
Income taxes	  	 	(832	) 	 	 	(102	) 	
Deferred revenue	  	 	2,328	  	 	 	6,804	  	
 	  	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	13,059	  	 	 	8,104	  	
 	  	 	 	 	 	 	 	 	
Investing activities:	  	 	 	 	 	 	 	 	
Purchase of property and equipment	  	 	(1,796	) 	 	 	(1,338	) 	
Net maturities (purchases) of investments	  	 	2,106	  	 	 	(842	) 	
 	  	 	 	 	 	 	 	 	
Net cash provided by (used in) investing activities	  	 	310	  	 	 	(2,180	) 	
 	  	 	 	 	 	 	 	 	
Financing activities:	  	 	 	 	 	 	 	 	
Purchase of common stock	  	 	(33,487	) 	 	 	(27,581	) 	
Proceeds from issuance of common stock from options exercised	  	 	16,108	  	 	 	11,522	  	
Excess tax benefits from equity-based compensation	  	 	3,634	  	 	 	689	  	
 	  	 	 	 	 	 	 	 	
Net cash used in financing activities	  	 	(13,745	) 	 	 	(15,370	) 	
 	  	 	 	 	 	 	 	 	
Foreign currency impact on cash	  	 	473	  	 	 	345	  	
 	  	 	 	 	 	 	 	 	
Net change in cash and cash equivalents	  	 	97	  	 	 	(9,101	) 	
Cash and cash equivalents at beginning of period	  	 	92,180	  	 	 	120,744	  	
 	  	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	  	$	92,277	  	 	$	111,643	  	

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	 	
GAAP Diluted EPS	  	$	0.32	  	  	$	0.57	  	  	$	0.70	  	 	$	0.50	  	  	$	2.09	  	 	$	0.55	  	
Adjustments to GAAP:	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Equity-based compensation	  	 	0.07	  	  	 	0.07	  	  	 	0.08	  	 	 	0.09	  	  	 	0.32	  	 	 	0.05	  	
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	  	

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	 	
Revenue:	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Americas	  	$	60,185	  	 	$	72,634	  	  	$	70,663	  	 	$	69,377	  	  	$	272,859	  	 	$	73,195	  	
EMEA	  	 	8,336	  	 	 	11,075	  	  	 	10,041	  	 	 	8,843	  	  	 	38,295	  	 	 	12,407	  	
APAC	  	 	3,189	  	 	 	4,693	  	  	 	4,898	  	 	 	5,319	  	  	 	18,099	  	 	 	5,879	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
 	  	$	71,710	  	 	$	88,402	  	  	$	85,602	  	 	$	83,539	  	  	$	329,253	  	 	$	91,481	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
GAAP Operating Income (Loss):	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Americas	  	$	7,087	  	 	$	15,749	  	  	$	17,183	  	 	$	13,531	  	  	$	53,550	  	 	$	13,685	  	
EMEA	  	 	909	  	 	 	1,963	  	  	 	1,334	  	 	 	1,033	  	  	 	5,239	  	 	 	2,580	  	
APAC	  	 	(443	) 	 	 	501	  	  	 	877	  	 	 	1,639	  	  	 	2,574	  	 	 	1,675	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
 	  	$	7,553	  	 	$	18,213	  	  	$	19,394	  	 	$	16,203	  	  	$	61,363	  	 	$	17,940	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Adjustments (pre-tax):	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Americas:	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Equity-based compensation	  	$	2,409	  	 	$	2,405	  	  	$	2,503	  	 	$	3,055	  	  	$	10,372	  	 	$	1,660	  	
Purchase amortization	  	 	439	  	 	 	438	  	  	 	293	  	 	 	2	  	  	 	1,172	  	 	 	2	  	
Recovery of previously impaired investment	  	 	—  	  	 	 	—  	  	  	 	(2,519	) 	 	 	—  	  	  	 	(2,519	) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
 	  	$	2,848	  	 	$	2,843	  	  	$	277	  	 	$	3,057	  	  	$	9,025	  	 	$	1,662	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Adjusted non-GAAP Operating Income (Loss):	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Americas	  	$	9,935	  	 	$	18,592	  	  	$	17,460	  	 	$	16,588	  	  	$	62,575	  	 	$	15,347	  	
EMEA	  	 	909	  	 	 	1,963	  	  	 	1,334	  	 	 	1,033	  	  	 	5,239	  	 	 	2,580	  	
APAC	  	 	(443	) 	 	 	501	  	  	 	877	  	 	 	1,639	  	  	 	2,574	  	 	 	1,675	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
 	  	$	10,401	  	 	$	21,056	  	  	$	19,671	  	 	$	19,260	  	  	$	70,388	  	 	$	19,602	  	

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	 	
Professional services	  	$	35,184	  	  	$	42,150	  	  	$	41,403	  	  	$	38,057	  	  	$	156,794	  	  	$	46,621	  	
Customer support and software enhancements	  	 	20,894	  	  	 	21,624	  	  	 	22,191	  	  	 	22,555	  	  	 	87,264	  	  	 	23,749	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total services revenue	  	$	56,078	  	  	$	63,774	  	  	$	63,594	  	  	$	60,612	  	  	$	244,058	  	  	$	70,370	  	

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	 	
Hardware revenue	  	$	5,504	  	  	$	5,540	  	  	$	5,597	  	  	$	3,895	  	  	$	20,536	  	  	$	3,054	  	
Billed travel	  	 	2,366	  	  	 	2,741	  	  	 	2,846	  	  	 	2,465	  	  	 	10,418	  	  	 	2,470	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total hardware and other revenue	  	$	7,870	  	  	$	8,281	  	  	$	8,443	  	  	$	6,360	  	  	$	30,954	  	  	$	5,524	  	

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	 	
Revenue	  	$	282	  	 	$	1,743	  	  	$	1,140	  	  	$	110	  	 	$	3,275	  	  	$	(136	) 	
Costs and expenses	  	 	386	  	 	 	1,513	  	  	 	1,038	  	  	 	(668	) 	 	 	2,269	  	  	 	(848	) 	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Operating income	  	 	(104	) 	 	 	230	  	  	 	102	  	  	 	778	  	 	 	1,006	  	  	 	712	  	
Foreign currency gains (losses) in other income	  	 	(207	) 	 	 	77	  	  	 	575	  	  	 	367	  	 	 	812	  	  	 	(370	) 	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
 	  	$	(311	) 	 	$	307	  	  	$	677	  	  	$	1,145	  	 	$	1,818	  	  	$	342	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
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	 	
Operating income	  	$	(53	) 	 	$	(82	) 	 	$	(76	) 	 	$	727	  	  	$	516	  	  	$	704	  	
Foreign currency gains (losses) in other income	  	 	(112	) 	 	 	53	  	 	 	653	  	 	 	638	  	  	 	1,232	  	  	 	(144	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total impact of changes in the Indian Rupee	  	$	(165	) 	 	$	(29	) 	 	$	577	  	 	$	1,365	  	  	$	1,748	  	  	$	560	  	

MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

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

 	  	2011	 	 	2012	 	
 	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	  	Full Year	 	 	1st Qtr	 	
Interest income	  	$	225	  	 	$	269	  	 	$	298	  	 	$	280	  	  	$	1,072	  	 	$	264	  	
Foreign currency (losses) gains	  	 	(207	) 	 	 	77	  	 	 	575	  	 	 	367	  	  	 	812	  	 	 	(370	) 	
Other non-operating (expense) income	  	 	—  	  	 	 	(12	) 	 	 	(11	) 	 	 	3	  	  	 	(20	) 	 	 	(18	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Total other (expense) income	  	$	18	  	 	$	334	  	 	$	862	  	 	$	650	  	  	$	1,864	  	 	$	(124	) 	

MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

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	 	
Stock options	  	$	512	  	  	$	487	  	  	$	486	  	  	$	518	  	  	$	2,003	  	  	$	120	  	
Restricted stock	  	 	1,897	  	  	 	1,918	  	  	 	2,017	  	  	 	2,537	  	  	 	8,369	  	  	 	1,540	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total equity-based compensation	  	 	2,409	  	  	 	2,405	  	  	 	2,503	  	  	 	3,055	  	  	 	10,372	  	  	 	1,660	  	
Income tax provision	  	 	807	  	  	 	806	  	  	 	838	  	  	 	1,075	  	  	 	3,526	  	  	 	598	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Net income	  	$	1,602	  	  	$	1,599	  	  	$	1,665	  	  	$	1,980	  	  	$	6,846	  	  	$	1,062	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Diluted earnings per share	  	$	0.07	  	  	$	0.07	  	  	$	0.08	  	  	$	0.09	  	  	$	0.32	  	  	$	0.05	  	
Diluted earnings per share–stock options	  	$	0.02	  	  	$	0.01	  	  	$	0.02	  	  	$	0.02	  	  	$	0.06	  	  	$	0.00	  	
Diluted earnings per share–restricted stock	  	$	0.06	  	  	$	0.06	  	  	$	0.06	  	  	$	0.08	  	  	$	0.26	  	  	$	0.05	  	
 
8.	Capital expenditures are as follows (in thousands):	

 	  	2011	 	  	2012	 	
 	  	1st Qtr	 	  	2nd Qtr	 	  	3rd Qtr	 	  	4th Qtr	 	  	Full Year	 	  	1st Qtr	 	
Capital expenditures	  	$	1,338	  	  	$	658	  	  	$	1,676	  	  	$	1,402	  	  	$	5,074	  	  	$	1,796	  	

9.	Stock Repurchase Activity (in thousands):	

 	  	2011	 	  	2012	 	
 	  	1st Qtr	 	  	2nd Qtr	 	  	3rd Qtr	 	  	4th Qtr	 	  	Full Year	 	  	1st Qtr	 	
Shares purchased under publicly-announced buy-back program	  	 	826	  	  	 	1,079	  	  	 	845	  	  	 	857	  	  	 	3,607	  	  	 	653	  	
Shares withheld for taxes due upon vesting of restricted stock	  	 	65	  	  	 	4	  	  	 	4	  	  	 	5	  	  	 	78	  	  	 	66	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total shares purchased	  	 	891	  	  	 	1,083	  	  	 	849	  	  	 	862	  	  	 	3,685	  	  	 	719	  	
Total cash paid for shares purchased under publicly-announced buy-back program	  	$	25,621	  	  	$	38,286	  	  	$	29,414	  	  	$	37,390	  	  	$	130,711	  	  	$	30,647	  	
Total cash paid for shares withheld for taxes due upon vesting of restricted stock	  	 	1,960	  	  	 	129	  	  	 	159	  	  	 	185	  	  	 	2,433	  	  	 	2,840	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total cash paid for shares repurchased	  	$	27,581	  	  	$	38,415	  	  	$	29,573	  	  	$	37,575	  	  	$	133,144	  	  	$	33,487