EX-99.1 2 manh-ex991_6.htm EX-99.1 manh-ex991_6.htm

Exhibit 99.1

 

 

Contact:

 

Dennis Story

 

Rick Fernandez

 

 

Chief Financial Officer

 

Senior Manager, Corporate Communications

 

 

Manhattan Associates, Inc.

 

Manhattan Associates, Inc.

 

 

770-955-7070

 

678-597-6988

 

 

dstory@manh.com

 

rfernandez@manh.com

 

 

 

 

 

 

Manhattan Associates Reports Record Fourth Quarter 2018 Total Revenue

 

ATLANTA – February 5, 2019 – Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported GAAP diluted earnings per share for the fourth quarter ended December 31, 2018, of $0.40 compared to $0.36 in Q4 2017, on license revenue of $13.3 million, cloud subscriptions revenue of $6.8 million and record total revenue of $144.4 million, applying ASC 606 retrospectively. Non-GAAP adjusted diluted earnings per share for Q4 2018 was $0.46 compared to $0.45 in Q4 2017.

“We’re pleased with both our 2018 fourth quarter financial performance and full year results. We delivered record Q4 total revenue and strong earnings per share with a backdrop of solid software and global services revenue,” said Manhattan Associates president and CEO Eddie Capel. “In addition, we continue to receive very positive interest on our Manhattan Active™ suite of cloud-based solutions.”

“We remain bullish on our growth opportunity in 2019 and beyond.  While prudently cautious regarding current global geopolitical and economic volatility, we believe continued omnichannel and supply chain evolution in our target markets has created an acute need for Manhattan’s software that enables our clients to accelerate growth and Push Possible®,” added Mr. Capel.

 

FOURTH QUARTER 2018 FINANCIAL SUMMARY:

 

We have reclassified certain line items in prior period financial statements to conform to the current period presentation in the consolidated statements of income because of our business transition to cloud subscriptions.

 

 

GAAP diluted earnings per share was $0.40 in Q4 2018 compared to $0.36 in Q4 2017.

 

 

Adjusted diluted earnings per share, a non-GAAP measure, was $0.46 in Q4 2018, compared to $0.45 in Q4 2017.

 


 

 

 

 

Consolidated total revenue was $144.4 million in Q4 2018, compared to $144.1 million in Q4 2017. License revenue was $13.3 million in Q4 2018, compared to $14.7 million in Q4 2017. Cloud subscription revenue was $6.8 million in Q4 2018, compared to $3.2 million in Q4 2017.

 

 

GAAP operating income was $34.3 million in Q4 2018, compared to $43.6 million in Q4 2017.

 

 

Adjusted operating income, a non-GAAP measure, was $39.7 million in Q4 2018, compared to $48.8 million in Q4 2017.

 

 

Cash flow from operations was $34.0 million in Q4 2018, compared to $47.4 million in Q4 2017. Days Sales Outstanding was 64 days at December 31, 2018, compared to 60 days at September 30, 2018.

 

 

Cash and investments totaled $100.6 million at December 31, 2018, compared to $93.9 million at September 30, 2018.

 

 

During the three months ended December 31, 2018, the Company repurchased 518,548 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $24.8 million. In January 2019, our Board authorized the Company to repurchase up to an aggregate of $50 million of the Company’s common stock.

 

FULL YEAR 2018 FINANCIAL SUMMARY:

 

We have reclassified certain line items in prior period financial statements to conform to the current period presentation in the consolidated statements of income because of our business transition to cloud subscriptions.

 

 

GAAP diluted earnings per share for the twelve months ended December 31, 2018, was $1.58, compared to $1.68 for the twelve months ended December 31, 2017.  

 

 

Adjusted diluted earnings per share, a non-GAAP measure, was $1.79 for the twelve months ended December 31, 2018, compared to $1.87 for the twelve months ended December 31, 2017.

 

 

Consolidated revenue for the twelve months ended December 31, 2018, was $559.2 million, compared to $594.6 million for the twelve months ended December 31, 2017. License revenue was $45.4 million for the twelve months ended December 31, 2018,

 


 

 

 

 

compared to $72.3 million for the twelve months ended December 31, 2017Cloud subscription revenue was $23.1 million for the twelve months ended December 31, 2018, compared to $9.6 million for the twelve months ended December 31, 2017.

 

 

GAAP operating income was $133.9 million for the twelve months ended December 31, 2018, compared to $185.6 million for the twelve months ended December 31, 2017.

 

 

Adjusted operating income, a non-GAAP measure, was $154.2 million for the twelve months ended December 31, 2018, compared to $205.2 million for the twelve months ended December 31, 2017. 

 

 

Cash flow from operations was $137.3 million in the twelve months ended December 31, 2018, compared to $164.1 million in the twelve months ended December 31, 2017.

 

 

During the twelve months ended December 31, 2018, the Company repurchased 3,147,466 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $143.3 million.

 

NEW PRESENTATION OF CONSOLIDATED STATEMENTS OF INCOME

We have reclassified certain line items in prior period financial statements to conform to the current period presentation in the consolidated statements of income because of our business transition to cloud subscriptions. These reclassifications include: all revenue line items; cost of license; cost of cloud subscriptions, maintenance and services; and cost of hardware. These reclassifications did not affect total revenue, operating income or net income. For further detail, please see note 7 in the supplemental financial information accompanying this press release.

 

 

 

 

 

 

 

 

 


 

 

 

2019 GUIDANCE

Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2019:

 

 

 

 

 

Guidance Range - 2019 Full Year

 

 

 

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

$ Range

 

 

% Growth Range

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

564

 

 

$

576

 

 

1%

 

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating margin

 

15.5

%

 

 

15.8

%

 

 

 

 

 

 

 

 

 

 

Equity-based compensation

 

5.5

%

 

 

5.4

%

 

 

 

 

 

 

 

 

 

 

Adjusted operating margin(1)

 

21.0

%

 

 

21.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (EPS):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP EPS

$

1.03

 

 

$

1.07

 

 

-35%

 

 

-32%

 

 

 

Equity-based compensation

 

0.35

 

 

 

0.35

 

 

 

 

 

 

 

 

 

 

 

Adjusted EPS(1)

$

1.38

 

 

$

1.42

 

 

-23%

 

 

-21%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

    and acquisition-related costs, and the related income tax effects of these items if applicable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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. 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). Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance above, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.

CONFERENCE CALL

The Company’s conference call regarding its fourth quarter and twelve months ended December 31, 2018, financial results will be held today, February 5, 2019, at 4:30 p.m. Eastern Time. We invite investors 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.

Those who cannot listen to the live broadcast may access a replay 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 9549358 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’ first quarter 2019 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

The Company provides adjusted operating income and margin, adjusted income tax provision, adjusted net income, adjusted diluted earnings per share, adjusted cost of services, and adjusted cost of cloud subscriptions, maintenance and services in this press release as additional information regarding the Company’s historical and projected operating results. These measures are not in accordance with – or alternatives to – GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare the Company’s results and guidance, because the measures provide supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the three and twelve months ended December 31, 2018.  

Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation, acquisition-related costs and the amortization of these costs, and a restructuring charge – all net of income tax effects, and the impact of the Tax Cuts and Jobs Act. Adjusted cost of services and adjusted cost of cloud subscriptions, maintenance and services exclude the impact of equity-based compensation. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.

 


 

 

 

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers. 

Manhattan Associates designs, builds and delivers leading edge cloud and on-premise solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.

This press release contains “forward-looking statements” relating to Manhattan Associates, Inc.  Forward-looking statements in this press release include, without limitation, the information set forth under “2019 Guidance,” statements we make about market adoption of our cloud-based solution and other statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate,” and similar expressions.  Prospective investors are cautioned that any 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, risks related from transitioning our business from a traditional perpetual license software company (generally hosted by our customers on their own premises and equipment) to a subscription-based software-as-a service/cloud-based model, disruption in the retail sector, the possible effect of new U.S. tariffs on imports from other countries (and possible responsive tariffs on U.S. exports by other countries) on international commerce, delays in product development, competitive pressures, software errors, information security breaches and the risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.

###

 


 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

 

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

(unaudited)

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud subscriptions

$

6,803

 

 

$

3,188

 

 

$

23,104

 

 

$

9,596

 

Software license

 

13,314

 

 

 

14,712

 

 

 

45,368

 

 

 

72,313

 

Maintenance

 

36,466

 

 

 

37,325

 

 

 

147,033

 

 

 

142,998

 

Services

 

84,525

 

 

 

77,183

 

 

 

329,685

 

 

 

326,502

 

Hardware

 

3,258

 

 

 

11,678

 

 

 

13,967

 

 

 

43,190

 

Total revenue

 

144,366

 

 

 

144,086

 

 

 

559,157

 

 

 

594,599

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of software license

 

682

 

 

 

1,377

 

 

 

5,297

 

 

 

5,483

 

Cost of cloud subscriptions, maintenance and services

 

62,138

 

 

 

48,934

 

 

 

235,584

 

 

 

208,045

 

Cost of hardware

 

-

 

 

 

8,416

 

 

 

-

 

 

 

32,205

 

Research and development

 

18,208

 

 

 

14,630

 

 

 

71,896

 

 

 

57,704

 

Sales and marketing

 

13,843

 

 

 

13,222

 

 

 

51,262

 

 

 

47,482

 

General and administrative

 

13,222

 

 

 

11,764

 

 

 

52,618

 

 

 

46,054

 

Depreciation and amortization

 

1,997

 

 

 

2,197

 

 

 

8,613

 

 

 

9,060

 

Restructuring charge

 

-

 

 

 

(24

)

 

 

-

 

 

 

2,921

 

Total costs and expenses

 

110,090

 

 

 

100,516

 

 

 

425,270

 

 

 

408,954

 

Operating income

 

34,276

 

 

 

43,570

 

 

 

133,887

 

 

 

185,645

 

Other (loss) income, net

 

(901

)

 

 

(580

)

 

 

2,344

 

 

 

(812

)

Income before income taxes

 

33,375

 

 

 

42,990

 

 

 

136,231

 

 

 

184,833

 

Income tax provision

 

7,460

 

 

 

18,476

 

 

 

31,541

 

 

 

68,352

 

Net income

$

25,915

 

 

$

24,514

 

 

$

104,690

 

 

$

116,481

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.40

 

 

$

0.36

 

 

$

1.58

 

 

$

1.68

 

Diluted earnings per share

$

0.40

 

 

$

0.36

 

 

$

1.58

 

 

$

1.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

65,199

 

 

 

68,485

 

 

 

66,201

 

 

 

69,175

 

Diluted

 

65,526

 

 

 

68,791

 

 

 

66,434

 

 

 

69,424

 

 

 


 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Reconciliation of Selected GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

 

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

34,276

 

 

$

43,570

 

 

$

133,887

 

 

$

185,645

 

Equity-based compensation (a)

 

 

5,291

 

 

 

5,188

 

 

 

19,864

 

 

 

16,229

 

Purchase amortization (c)

 

 

108

 

 

 

107

 

 

 

430

 

 

 

430

 

Restructuring charge (d)

 

 

-

 

 

 

(24

)

 

 

-

 

 

 

2,921

 

Adjusted operating income (Non-GAAP)

 

$

39,675

 

 

$

48,841

 

 

$

154,181

 

 

$

205,225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

$

7,460

 

 

$

18,476

 

 

$

31,541

 

 

$

68,352

 

Equity-based compensation (a)

 

 

1,092

 

 

 

1,934

 

 

 

4,662

 

 

 

5,964

 

Tax benefit of stock awards vested (b)

 

 

6

 

 

 

14

 

 

 

777

 

 

 

1,911

 

Purchase amortization (c)

 

 

22

 

 

 

40

 

 

 

101

 

 

 

158

 

Restructuring charge (d)

 

 

-

 

 

 

(2

)

 

 

-

 

 

 

1,073

 

U.S. Tax Cuts and Jobs Act impact (e)

 

 

(146

)

 

 

(2,825

)

 

 

202

 

 

 

(2,825

)

Adjusted income tax provision (Non-GAAP)

 

$

8,434

 

 

$

17,637

 

 

$

37,283

 

 

$

74,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

25,915

 

 

$

24,514

 

 

$

104,690

 

 

$

116,481

 

Equity-based compensation (a)

 

 

4,199

 

 

 

3,254

 

 

 

15,202

 

 

 

10,265

 

Tax benefit of stock awards vested (b)

 

 

(6

)

 

 

(14

)

 

 

(777

)

 

 

(1,911

)

Purchase amortization (c)

 

 

86

 

 

 

67

 

 

 

329

 

 

 

272

 

Restructuring charge (d)

 

 

-

 

 

 

(22

)

 

 

-

 

 

 

1,848

 

U.S. Tax Cuts and Jobs Act impact (e)

 

 

146

 

 

 

2,825

 

 

 

(202

)

 

 

2,825

 

Adjusted net income (Non-GAAP)

 

$

30,340

 

 

$

30,624

 

 

$

119,242

 

 

$

129,780

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

0.40

 

 

$

0.36

 

 

$

1.58

 

 

$

1.68

 

Equity-based compensation (a)

 

 

0.06

 

 

 

0.05

 

 

 

0.23

 

 

 

0.15

 

Tax benefit of stock awards vested (b)

 

 

-

 

 

 

-

 

 

 

(0.01

)

 

 

(0.03

)

Purchase amortization (c)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Restructuring charge (d)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

0.03

 

U.S. Tax Cuts and Jobs Act impact (e)

 

 

-

 

 

 

0.04

 

 

 

-

 

 

 

0.04

 

Adjusted diluted EPS (Non-GAAP)

 

$

0.46

 

 

$

0.45

 

 

$

1.79

 

 

$

1.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fully diluted shares

 

 

65,526

 

 

 

68,791

 

 

 

66,434

 

 

 

69,424

 

 

(a)

Adjusted results exclude all equity-based compensation to facilitate comparison with our peers and for the other reasons explained in our Current Report on Form 8-K filed today with the SEC. Equity-based compensation is included in the following GAAP operating expense lines for the three and twelve months ended December 31, 2018, and 2017:

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of services

 

$

1,583

 

 

$

1,398

 

 

$

5,787

 

 

$

3,994

 

Research and development

 

 

1,095

 

 

 

1,280

 

 

 

4,230

 

 

 

3,208

 

Sales and marketing

 

 

545

 

 

 

690

 

 

 

2,041

 

 

 

2,240

 

General and administrative

 

 

2,068

 

 

 

1,820

 

 

 

7,806

 

 

 

6,787

 

Total equity-based compensation

 

$

5,291

 

 

$

5,188

 

 

$

19,864

 

 

$

16,229

 

 

 

 


 

(b)

Adjustments represent the excess tax benefits and tax deficiencies of the stock awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible for an award of equity instruments on our tax return is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we excluded equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also excluded the related tax benefit (expense) generated upon their vesting.

 

(c)

Adjustments represent purchased intangibles amortization from a prior acquisition. We exclude that amortization from adjusted results to facilitate comparison with our peers, to facilitate comparisons of the results of our core operations from period to period and for the other reasons explained in our Current Report on Form 8-K filed with the SEC.

 

(d)

In May 2017, we eliminated about 100 positions due to retail sector headwinds and to align our services capacity with demand. That action did not impair or alter our strategic investment plans in innovation and sales and marketing to increase market share and extend our competitive advantage. As a result of that initiative, we recorded a charge of approximately $2.9 million in 2017. The charge primarily consisted of employee severance, employee transition and outplacement costs. We excluded that charge from adjusted non-GAAP results because we do not believe the charge was a cost resulting from normal operating activities and for the other reasons explained in our Current Report on Form 8-K filed with the SEC.

 

(e)

In the fourth quarter of 2017, we recorded a provisional net one-time tax of $2.8 million because of the enactment of the Tax Cuts and Jobs Act in December 2017. We calculated that amount based on a reasonable estimate of the income tax effects, primarily from a tax on accumulated foreign earnings and the remeasurement of deferred tax assets. We finalized our calculations, resulting in a tax benefit of $0.2 million during the twelve months ended December 31, 2018.


 

 


 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

December 31, 2018

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

99,126

 

 

$

125,522

 

Short-term investments

 

 

1,440

 

 

 

-

 

Accounts receivable, net of allowance of $2,589 and $2,692 at December 31, 2018 and December 31, 2017, respectively

 

 

100,108

 

 

 

92,231

 

Prepaid expenses and other current assets

 

 

14,708

 

 

 

10,320

 

Total current assets

 

 

215,382

 

 

 

228,073

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

14,318

 

 

 

15,493

 

Goodwill, net

 

 

62,240

 

 

 

62,248

 

Deferred income taxes

 

 

5,442

 

 

 

1,877

 

Other assets

 

 

9,768

 

 

 

7,304

 

Total assets

 

$

307,150

 

 

$

314,995

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

18,181

 

 

$

14,028

 

Accrued compensation and benefits

 

 

29,485

 

 

 

15,826

 

Accrued and other liabilities

 

 

12,161

 

 

 

12,105

 

Deferred revenue

 

 

81,894

 

 

 

75,068

 

Income taxes payable

 

 

3,543

 

 

 

7,228

 

Total current liabilities

 

 

145,264

 

 

 

124,255

 

 

 

 

 

 

 

 

 

 

Other non-current liabilities

 

 

14,739

 

 

 

15,784

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or

   outstanding at December 31, 2018 and December 31, 2017

 

 

-

 

 

 

-

 

Common stock, $.01 par value; 200,000,000 shares authorized; 64,860,419 and

  67,776,138 shares issued and outstanding at December 31, 2018 and

   December 31, 2017, respectively

 

 

649

 

 

 

678

 

Retained earnings

 

 

163,359

 

 

 

186,117

 

Accumulated other comprehensive loss

 

 

(16,861

)

 

 

(11,839

)

Total shareholders' equity

 

 

147,147

 

 

 

174,956

 

Total liabilities and shareholders' equity

 

$

307,150

 

 

$

314,995

 

 

 

 


 

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Year Ended December 31,

 

 

2018

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

104,690

 

 

$

116,481

 

 

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

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

8,613

 

 

 

9,060

 

 

Equity-based compensation

 

 

19,864

 

 

 

16,229

 

 

Loss on disposal of equipment

 

 

59

 

 

 

152

 

 

Deferred income taxes

 

 

(4,265

)

 

 

1,574

 

 

Unrealized foreign currency loss

 

 

298

 

 

 

196

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(9,341

)

 

 

10,139

 

 

Other assets

 

 

(4,357

)

 

 

661

 

 

Accounts payable, accrued and other liabilities

 

 

18,603

 

 

 

(5,354

)

 

Income taxes

 

 

(4,390

)

 

 

1,876

 

 

Deferred revenue

 

 

7,575

 

 

 

13,052

 

 

Net cash provided by operating activities

 

 

137,349

 

 

 

164,066

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(7,306

)

 

 

(6,199

)

 

Net (purchases) maturities of short-term investments

 

 

(2,532

)

 

 

429

 

 

Net cash used in investing activities

 

 

(9,838

)

 

 

(5,770

)

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

Purchase of common stock

 

 

(149,322

)

 

 

(131,707

)

 

Net cash used in financing activities

 

 

(149,322

)

 

 

(131,707

)

 

 

 

 

 

 

 

 

 

 

 

Foreign currency impact on cash

 

 

(4,585

)

 

 

3,318

 

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

(26,396

)

 

 

29,907

 

 

Cash and cash equivalents at beginning of period

 

 

125,522

 

 

 

95,615

 

 

Cash and cash equivalents at end of period

 

$

99,126

 

 

$

125,522

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 


 

MANHATTAN ASSOCIATES, INC.

SUPPLEMENTAL INFORMATION

1.

GAAP and Adjusted earnings per share by quarter are as follows:

 

2017

 

 

2018

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Full Year

 

GAAP Diluted EPS

$

0.40

 

 

$

0.45

 

 

$

0.47

 

 

$

0.36

 

 

$

1.68

 

 

$

0.33

 

 

$

0.42

 

 

$

0.43

 

 

$

0.40

 

 

$

1.58

 

Adjustments to GAAP:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based compensation

 

0.04

 

 

 

0.03

 

 

 

0.03

 

 

 

0.05

 

 

 

0.15

 

 

 

0.05

 

 

 

0.06

 

 

 

0.06

 

 

 

0.06

 

 

 

0.23

 

Tax benefit of stock awards vested

 

(0.03

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(0.03

)

 

 

(0.01

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(0.01

)

Purchase amortization

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Restructuring charge

 

-

 

 

 

0.03

 

 

 

-

 

 

 

-

 

 

 

0.03

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

U.S. Tax Cuts and Jobs Act impact

 

-

 

 

 

-

 

 

 

-

 

 

 

0.04

 

 

 

0.04

 

 

 

(0.01

)

 

 

-