(Source: PrimeNewswire)
ATLANTA, July 21, 2009 (GLOBE NEWSWIRE) -- Leading supply chain optimization provider Manhattan Associates, Inc. (Nasdaq:MANH) today reported second quarter 2009 non-GAAP adjusted diluted earnings per share of $0.14 compared to $0.42 in the 2008 second quarter and a GAAP loss per share of $0.02 compared to earnings of $0.37 per share in the prior year second quarter. The Company posted total second quarter revenue of $58.4 million, which was down 35% from overall revenue posted in the second quarter of 2008, driving the earnings per share decline.
Manhattan Associates President and CEO Pete Sinisgalli commented, "Similar to the first quarter, businesses continue to be hesitant to release capital. This is particularly true for larger capital expenditures. As a result, we had no million-dollar contracts in either the first quarter or second quarter of the year. Our competitive win rate continues to be favorable, and I believe when businesses in the markets we serve gain confidence in the economy, we will see strong improvement in our financial results."
SECOND QUARTER 2009 FINANCIAL SUMMARY:
* Adjusted diluted earnings per share, a non-GAAP measure, were $0.14 in the second quarter of 2009, compared to $0.42 in the second quarter of 2008. * The Company reported a GAAP loss per share of $0.02 in the second quarter of 2009, compared to $0.37 GAAP diluted earnings per share in the second quarter of 2008. The second quarter of 2009 includes a pre-tax restructuring charge of $3.8 million, or $0.12 per share, associated with the workforce reduction initiative executed in the quarter. * Consolidated revenue for the second quarter of 2009 was $58.4 million, compared to $90.5 million in the second quarter of 2008. License revenue was $4.1 million in the second quarter of 2009, compared to $19.4 million in the second quarter of 2008. * Adjusted operating income, a non-GAAP measure, was $5.2 million in the second quarter of 2009, compared to $15.5 million in the second quarter of 2008. * The Company reported a GAAP operating loss, including a pre-tax restructuring charge of $3.8 million, for the second quarter of 2009 of $0.4 million compared to GAAP operating income of $13.3 million in the second quarter of 2008. * Cash flow from operations was $10.8 million in the second quarter of 2009, compared to $21.0 million in the second quarter of 2008. Days Sales Outstanding were 61 days at June 30, 2009, compared to 78 days at June 30, 2008. * Cash and investments on-hand at June 30, 2009 was $90.8 million compared to $89.2 million at March 31, 2009. * The Company repurchased 577,606 common shares totaling $10.0 million at an average share price of $17.34 in the second quarter of 2009, self-funded from Q2 cash flow from operations. The Company has $15.0 million in remaining share repurchase authority.
SIX MONTH 2009 FINANCIAL SUMMARY:
* Adjusted diluted earnings per share, a non-GAAP measure, were $0.22 for the six months ended June 30, 2009, compared to $0.77 for the six months ended June 30, 2008. * GAAP loss per share for the six months ended June 30, 2008 was $0.01, compared to $0.66 earnings per share for the six months ended June 30, 2008. The first half of 2009 results include pre-tax restructuring charges of $3.9 million, or $0.12 per share. * Consolidated revenue for the six months ended June 30, 2009 was $119.2 million compared to $178.8 million for the six months ended June 30, 2008. License revenue was $9.0 million for the six months ended June 30, 2009, compared to $37.7 million in the six months ended June 30, 2008. * Adjusted operating income, a non-GAAP measure, was $8.0 million for the six months ended June 30, 2009, compared to $26.5 million for the six months ended June 30, 2008. * GAAP operating income, including a pre-tax restructuring charge of $3.9 million, was $0.2 million for the six months ended June 30, 2009, compared to $22.4 million for the six months ended June 30, 2008. * The Company repurchased approximately 1.3 million common shares at an average share price of $15.93, for a total investment of $20.0 million.
SALES ACHIEVEMENTS:
* Completing software license wins with new customers such as Better Life Commercial Chain Share Co., Chanel (Australia), Dongguan Jiarong Supermarket Co., Kem Krest Corporation, Kuehne & Nagel, Mulberry Group Plc, Shandong JiaJiaYue Group Co., WWRD United Kingdom. * Expanding partnerships with existing customers such as ACCO Brands Benelux, Brinkmann Corporation, CEVA Logistics Singapore, Complete Entertainment Services LTD, Excell Home Fashions, Inc., LeSaint Logistics, Movianto UK , Orchard Brands, Inc., O'Reilly Automotive, Inc., Panalpina Management AG, Republic National Distributing Company, River Island Clothing Company, RGH Enterprises, Inc., Teva Pharmaceutical USA, The Bear Factory Limited, The Beistle Company, APL Co. and Weldom.
2009 GUIDANCE
Due to economic uncertainty and limited visibility, Manhattan Associates has decided to suspend its earnings guidance for the remainder of 2009. Our previously published guidance for fiscal year 2009 should not be relied upon as reflecting management's current expectations for full year results.
"Given our challenges forecasting license revenue in the first half of 2009 and the ongoing turbulence in the global economy, we have suspended our earnings guidance for the remainder of the year. We will revisit our guidance policy when markets stabilize," Mr. Sinisgalli said.
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 21, 2009. Investors are invited to listen to a live webcast of the conference call through the investor relations section of Manhattan Associates' website. To listen to the live Web cast, please go to the Web site at least 15 minutes before the call to download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay can be accessed shortly after the call by dialing +1.800.642.1687 in the U.S. and Canada, or +1.706.645.9291 outside the U.S., and entering the conference identification number 15403556, or via the Web at www.manh.com. The phone replay will be available for two weeks after the call, and the Internet broadcast will be available until Manhattan Associates' third quarter 2009 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 for -- 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 its Form 8-K earnings release filing for the quarter ended June 30, 2009.
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, the recapture of previously recognized sales tax expense, stock option expense under SFAS 123(R), asset impairment charges, and restructuring charges, all net of income tax effects, and unusual tax adjustments. A reconciliation of the Company's GAAP financial measures to non-GAAP adjustments is included in the supplemental information attached to this release.
The Company has also presented certain information excluding the effect between periods of changes in exchange rates between the U.S. dollar and the functional currencies of its foreign subsidiaries. Certain information regarding the effect of currency exchange rate fluctuation on results is included in note 5 to the supplemental information attached to this release.
ABOUT MANHATTAN ASSOCIATES, INC.
Manhattan Associates continues to deliver on its 19-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(r), 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 ILS, a portfolio of distribution management and transportation management solutions built on Microsoft(r) .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. 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: the global economic downturn; disruptions in credit markets; delays in product development; competitive pressures; software errors; and additional risk factors set forth in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2008. 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 CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, ------------------ ------------------ 2009 2008 2009 2008 -------- -------- -------- -------- (unaudited) (unaudited) Revenue: Software license $ 4,126 $ 19,365 $ 9,048 $ 37,677 Services 49,422 62,289 100,265 122,126 Hardware and other 4,861 8,836 9,921 19,011 -------- -------- -------- -------- Total revenue 58,409 90,490 119,234 178,814 -------- -------- -------- -------- Costs and Expenses: Cost of license 1,035 1,641 2,459 2,785 Cost of services 21,319 29,856 44,476 61,136 Cost of hardware and other 4,177 7,317 8,298 15,583 Research and development 9,188 11,711 19,415 24,365 Sales and marketing 9,026 14,676 19,105 28,248 General and administrative 7,251 8,867 15,213 17,938 Depreciation and amortization 3,010 3,158 6,175 6,406 Restructuring charge 3,829 - 3,892 -- -------- -------- -------- -------- Total costs and expenses 58,835 77,226 119,033 156,461 -------- -------- -------- -------- Operating (loss) income (426) 13,264 201 22,353 Other (expense) income, net (404) 650 (637) 2,951 -------- -------- -------- -------- (Loss) income before income taxes (830) 13,914 (436) 25,304 Income tax (benefit) provision (274) 4,835 (142) 8,793 -------- -------- -------- -------- Net (loss) income $ (556) $ 9,079 $ (294) $ 16,511 ======== ======== ======== ======== Basic (loss) earnings per share $ (0.02) $ 0.37 $ (0.01) $ 0.68 Diluted (loss) earnings per share $ (0.02) $ 0.37 $ (0.01) $ 0.66 Weighted average number of shares: Basic 22,391 24,259 22,687 24,341 Diluted 22,391 24,826 22,687 24,833 MANHATTAN ASSOCIATES, INC.
