ATLANTA — February 2, 2010 — Leading supply chain optimization provider Manhattan Associates, Inc. (NASDAQ: MANH) today reported fourth quarter 2009 non-GAAP adjusted diluted earnings per share of $0.31 compared to $0.26 in the 2008 fourth quarter, and GAAP diluted earnings per share of $0.26 compared to $0.08 in the prior year fourth quarter. The Company posted total fourth quarter revenue of $62.1 million, which was down 18% from overall revenue posted in the same quarter of 2008.
Manhattan Associates President and CEO Pete Sinisgalli commented, "Our fourth quarter results include modest year-over-year license revenue growth, reflecting a further rebound in supply chain investments by both existing and new customers. Our competitive win rate was strong in the quarter, and we significantly strengthened our market position through new releases of core solutions on our Supply Chain Process Platform — including Warehouse Management."
FOURTH QUARTER 2009 FINANCIAL SUMMARY:
• Adjusted diluted earnings per share, a non-GAAP measure, was $0.31 in the fourth quarter of 2009, compared to $0.26 in the same quarter of 2008.
• The Company reported GAAP diluted earnings per share of $0.26, compared to $0.08 in the fourth quarter of 2008. Results for the fourth quarter of 2008 include the impact of a $4.7 million restructuring charge associated with a workforce reduction action executed in the quarter.
• Consolidated revenue for the fourth quarter of 2009 was $62.1 million, compared to $75.7 million in the fourth quarter of 2008. License revenue was $14.3 million in the fourth quarter of 2009, compared to $13.8 million in the fourth quarter of 2008.
• Adjusted operating income, a non-GAAP measure, was $12.0 million in the fourth quarter of 2009, compared to $7.2 million in the same quarter of 2008.
• GAAP operating income for the fourth quarter of 2009 was $9.9 million compared to $0.4 million in the fourth quarter of 2008. Results for the fourth quarter of 2008 include the impact of a $4.7 million restructuring charge associated with a workforce reduction action executed in the quarter.
• Cash flow from operations was $19.4 million in the fourth quarter of 2009, compared to $18.3 million in the fourth quarter of 2008. Days Sales Outstanding were 56 days at December 31, 2009, compared to 78 days at December 31, 2008.
• Cash and investments on-hand at December 31, 2009 was $123.0 million compared to $88.7 million at December 31, 2008.
• For the three months ended December 31, 2009, the Company repurchased approximately 115 thousand common shares at an average price of $24.28, for a total investment of $2.8 million.
• In January 2010, the Board of Directors approved raising the Company's remaining share repurchase authority from $12.2 million to $25.0 million of Manhattan Associates outstanding common stock.
FULL YEAR 2009 FINANCIAL SUMMARY:
• Adjusted diluted earnings per share, a non-GAAP measure, were $0.96 for the year ended December 31, 2009, compared to $1.38 for full year ended December 31, 2008.
• GAAP diluted earnings per share for the full year 2009 was $0.73, compared to $0.94 for the full year 2008. Results for the year ended December 31, 2009 include pre-tax restructuring charges of $3.9 million, or $0.11 per share, and the release of tax contingency reserves associated with expiring tax audit statutes for 2005. Results for the year ended December 31, 2008 include pre-tax impairment charges of $5.2 million, or $0.22 per share, pre-tax restructuring charges of $4.7 million, or $0.13 per share, and the release of tax contingency reserves associated with expiring tax audit statutes for 2004 and prior.
• Consolidated revenue for the year ended December 31, 2009 was $246.7 million compared to $337.2 million for the year ended December 31, 2008. License revenue was $34.7 million for the full year 2009, compared to $65.3 million in the full year 2008.
• Adjusted operating income, a non-GAAP measure, was $33.1 million for the year ended December 31, 2009, compared to $44.3 million for the year ended December 31, 2008.
• GAAP operating income was $21.1 million for the year ended December 31, 2009, compared to $26.0 million for the year ended December 31, 2008. Results for the year ended December 31, 2009 include a restructuring charge of $3.9 million. The prior year's results include asset write-downs of $5.2 million and a restructuring charge of $4.7 million.
• For the year ended December 31, 2009, the Company repurchased approximately 1.4 million common shares at an average share price of $16.63, for a total investment of $22.8 million.
• Closing two contracts of $1.0 million or more in recognized license revenue during the quarter.
• Completing software license wins with new customers such as: Goya Foods, Inc.; Groveport LLC; J&P Cycles, Inc.; Kwik Trip, Inc.; Milan Express, Inc.; Radiant Group (Pty) Ltd; ResMed Corp.; Tractor Supply Company; Richline Group, Inc.; Sigma-Aldrich and Vasanta Group.
• Expanding partnerships with existing customers such as: ACH Food Companies Inc.; Amerisource Bergen; Archbrook Laguna; Avon Products, Inc.; Carolina Logistics Services LLC; CEVA Logistics U.S. , Inc.; Fitness Quest, Inc.; Fowler Welch Coolchain; Genuine Parts Company; Guru Denim, Inc.; Jasco Products Company LLC; Jefferson Smurfit Corporation; O'Reilly Automotive, Inc.; PepsiCo, Inc.; Performance, Inc.; Tally Weijl; The Travis Association for the Blind; and Wirtz Corporation.
During the second quarter of 2009, due to economic uncertainty and limited visibility, Manhattan Associates suspended its earnings guidance for the remainder of 2009. Due to continued economic uncertainty in 2010, the Company is continuing its suspension of earnings guidance.
The Company's conference call regarding its fourth quarter and full year financial results will be held at 4:30 p.m. Eastern Time on Tuesday, February 2, 2010. 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 48223822 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' first quarter 2010 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 and full year ended December 31, 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.
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®, a portfolio of software solutions and technology that leverages a Supply Chain Process Platform to help organizations optimise 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. 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.