(Source: PrimeNewswire)
ATLANTA, Oct. 20, 2009 (GLOBE NEWSWIRE) -- Leading supply chain optimization provider Manhattan Associates, Inc. (Nasdaq:MANH) today reported record third quarter 2009 non-GAAP adjusted diluted earnings per share of $0.43 compared to $0.34 in the 2008 third quarter, and record GAAP diluted earnings per share of $0.50 compared to earnings of $0.18 in the prior year third quarter. The Company posted total third quarter revenue of $65.3 million, which was down 21% from overall revenue posted in the third quarter of 2008.
Manhattan Associates President and CEO Pete Sinisgalli commented, "A more stable macro-economic environment enabled some companies to commit capital to important supply chain improvements. As a result, we closed three deals of more than $1 million in recognized license fees in the third quarter. This improvement in license revenue, coupled with aggressive expense management, led to record earnings per share for the quarter."
THIRD QUARTER 2009 FINANCIAL SUMMARY:
* Adjusted diluted earnings per share, a non-GAAP measure, was a
record $0.43 in the third quarter of 2009, compared to $0.34 in the
third quarter of 2008.
* The Company reported record GAAP diluted earnings per share of
$0.50, including the release of tax contingency reserves associated
with expiring tax audit statutes for 2005, compared to $0.18 in the
third quarter of 2008. Results for the third quarter of 2008
include the impact of asset write-downs and the release of tax
contingency reserves associated with expiring tax audit statutes
for 2004 and prior.
* Consolidated revenue for the third quarter of 2009 was $65.3
million, compared to $82.7 million in the third quarter of 2008.
License revenue was $11.4 million in the third quarter of 2009,
compared to $13.8 million in the third quarter of 2008.
* Adjusted operating income, a non-GAAP measure, was $13.2 million in
the third quarter of 2009, compared to $10.6 million in the third
quarter of 2008.
* GAAP operating income for the third quarter of 2009 was $11.1
million compared to $3.2 million in the third quarter of 2008.
Third quarter 2008 results include $5.2 million in asset write-
downs for a technology company investment and an auction-rate
security investment.
* Cash flow from operations was $15.4 million in the third quarter of
2009, compared to $18.4 million in the third quarter of 2008. Days
Sales Outstanding were 59 days at September 30, 2009, compared to
61 days at June 30, 2009.
* Cash and investments on-hand at September 30, 2009 was $106.0
million compared to $90.8 million at June 30, 2009.
* The Company did not repurchase any shares during the third quarter
of 2009. The Company has $15.0 million in remaining share
repurchase authority.
NINE MONTH 2009 FINANCIAL SUMMARY:
* Adjusted diluted earnings per share, a non-GAAP measure, were $0.65
for the nine months ended September 30, 2009, compared to $1.12 for
the nine months ended September 30, 2008.
* GAAP diluted earnings per share for the nine months ended September
30, 2009 was $0.47, compared to $0.84 for the nine months ended
September 30, 2008. Results for the first nine months of 2009
include pre-tax restructuring charges of $3.9 million, or $0.12 per
share, and the release of tax contingency reserves associated with
expiring tax audit statutes for 2005. Results for the first nine
months of 2008 include pre-tax impairment charges of $5.2 million,
or $0.21 per share, and the release of tax contingency reserves
associated with expiring tax audit statutes for 2004 and prior.
* Consolidated revenue for the nine months ended September 30, 2009
was $184.5 million compared to $261.6 million for the nine months
ended September 30, 2008. License revenue was $20.4 million for the
nine months ended September 30, 2009, compared to $51.5 million in
the nine months ended September 30, 2008.
* Adjusted operating income, a non-GAAP measure, was $21.2 million
for the nine months ended September 30, 2009, compared to $37.1
million for the nine months ended September 30, 2008.
* GAAP operating income was $11.3 million for the nine months ended
September 30, 2009, which included a restructuring charge of $3.9
million, compared to $25.6 million for the nine months ended
September 30, 2008, which included asset write-downs of $5.2
million.
* For the nine months ended September 30, 2009, 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:
* Closing three contracts of $1.0 million or more in recognized
license revenue during the quarter.
* Completing software license wins with new customers such as: Daqing
Qingkelong Chain Commerce & Trade Co.; Farmacias de Similares;
Freight Mark Sdn Bhd; Geba; Half Price Books; Hayneedle; Lerentang
Medicine Group; Mirror Show Management, Inc.;Nalsani S.A.; Propak
Development, Inc.; PT Multitrend Indo; and Yarrows Family Bakers.
* Expanding partnerships with existing customers such as: American
Clubs; American Textile Company, Inc.; BUT International SAS; CJSC
Proconsim; Express Scripts, Inc.; Famous Footwear; Fruit of the
Loom; Genco Distribution Systems, Inc.; Guess?, Inc; HoMedics; J.
Knipper and Company, Inc.; Jefferson Smurfit Corporation; LeSaint
Logistics; MAN; New Balance Athletic Shoe, Inc.; O'Reilly
Automotive; Perfect 10 Satellite Distribution, Inc.; Performance
Team Freight Systems; SamsonOpt; Shanghai TingTong Logistics;
Southern Wine & Spirits of America, Inc.; SpeedFC, Inc.; Sturm
Foods, Inc.; Sulyn Industries, Inc.; Thermwell Products Co., Inc.;
United Natural Foods, Inc.; and Vie Cosmetics Group.
2009 GUIDANCE
During the second quarter of 2009, due to economic uncertainty and limited visibility, Manhattan Associates suspended its earnings guidance for the remainder of 2009. Previously published guidance for fiscal year 2009 should not be relied upon as reflecting management's current expectations for full year results.
CONFERENCE CALL
The Company's conference call regarding its third quarter financial results will be held at 4:30 p.m. Eastern Time on Tuesday, October 20, 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 29905929 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' fourth 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 September 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; 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 also has 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 Nine Months Ended
September 30, September 30,
-------------------- ---------------------
2009 2008 2009 2008
--------- --------- --------- ---------
(unaudited) (unaudited)
Revenue:
Software license $ 11,360 $ 13,802 $ 20,408 $ 51,479
Services 46,917 60,023 147,182 182,149
Hardware and other 7,017 8,911 16,938 27,922
--------- --------- --------- ---------
Total revenue 65,294 82,736 184,528 261,550
--------- --------- --------- ---------
Costs and Expenses:
Cost of license 1,162 1,528 3,621 4,313
Cost of services 19,697 29,376 64,173 90,512
Cost of hardware
and other 5,846 7,036 14,144 22,619
Research and
development 8,781 12,546 28,196 36,911
Sales and marketing 8,626 11,579 27,731 39,827
General and
administrative 7,462 9,099 22,675 27,037
Depreciation and
amortization 2,665 3,125 8,840 9,531
Asset impairment
charges -- 5,205 -- 5,205
Restructuring charge -- -- 3,892 --
--------- --------- --------- ---------
Total costs
and expenses 54,239 79,494 173,272 235,955
--------- --------- --------- ---------
Operating income 11,055 3,242 11,256 25,595
Other income
(expense), net 255 927 (382) 3,878
--------- --------- --------- ---------
Income before
income taxes 11,310 4,169 10,874 29,473
Income tax provision
(benefit) 327 (140) 185 8,653
-------- -------- -------- --------
Net income $ 10,983 $ 4,309 $ 10,689 $ 20,820
========= ========= ========= =========
Basic earnings
per share $ 0.50 $ 0.18 $ 0.48 $ 0.86
Diluted earnings
per share $ 0.50 $ 0.18 $ 0.47 $ 0.84
Weighted average
number of shares:
Basic 22,116 24,069 22,483 24,246
Diluted 22,175 24,568 22,529 24,736
MANHATTAN ASSOCIATES, INC.