[August 27, 2015] |
|
American Software Reports Preliminary First Quarter of Fiscal Year 2016 Results
American Software, Inc. (NASDAQ: AMSWA) today reported preliminary
financial results for the first quarter of fiscal 2016. The Company
increased License fee revenue by 12% and Total Revenues by 16% driving a
68% increase in Net Earnings for the first quarter. Cloud Service Annual
Contract Value (ACV) increased by approximately 191% compared to the
same period of the prior year.
Key first quarter financial metrics:
-
Total revenues for the quarter ended July 31, 2015 were $28.9 million,
an increase of 16% over the comparable period last year.
-
Software license fee revenues for the quarter ended July 31, 2015 were
$4.9 million, an increase of 12% compared to the same period last year.
-
Services and other revenues for the quarter ended July 31, 2015
increased 26% to $13.8 million compared to $11.0 million for the same
period last year.
-
Maintenance revenues for the quarter ended July 31, 2015 were $10.1
million compared to $9.5 million, an increase of 7% over the same
period last year.
-
Operating earnings for the quarter ended July 31, 2015 were $3.8
million, an increase of 77% compared to the same period last year.
-
GAAP net earnings for the quarter ended July 31, 2015 were $2.6
million or $0.09 per fully diluted share compared to $1.5 million or
$0.05 per fully diluted share in the same period last year.
-
Adjusted net earnings for the quarter ended July 31, 2015, which
excludes stock-based compensation expense and amortization of
acquisition-related intangibles, were $2.9 million or $0.10 per fully
diluted share compared to $2.0 million or $0.07 per fully diluted
share for the same period last year, which excluded stock-based
compensation expense, amortization of acquisition-related intangibles
and the net loss of MIDRetail in the prior year.
-
EBITDA increased 48% to $5.2 million for the quarter ended July 31,
2015 compared to $3.5 million for the quarter ended July 31, 2014.
-
Adjusted EBITDA increased 43% to $5.6 million for the quarter ended
July 31, 2015 compared to $4.0 million for the quarter ended July 31,
2014. Adjusted EBITDA represents GAAP net earnings adjusted for
amortization of intangibles, depreciation, interest income & other,
net, income tax expense, stock-based compensation, and other
significant non-routine operating and non-operating income and expense
items, if applicable.
-
Cloud Services Annual Contract Value (ACV) increased approximately
191% to $2.95 million compared to $1.01 million in the same period of
the prior year. The ACV is comprised of software-as-a-service (SaaS)
ACV of $1.5 million compared to approximately $240,000 during the same
period last year and other cloud services ACV of $1.4 million compared
to $773,000 during the same period last year.
-
The Company had a 128% increase to $2.2 million in deferred ratable
license fee revenue compared to $1.0 million for the same period last
year.
The Company is including Annual Contract Value (ACV), EBITDA, adjusted
EBITDA, adjusted net earnings and adjusted net earnings per share in the
summary financial information provided with this press release as
supplemental information relating to its operating results. This
financial information is not in accordance with, or an alternative for,
GAAP-compliant financial information and may be different from non-GAAP
net earnings and non-GAAP per share measures used by other companies.
The Company believes that this presentation of Annual Contract Value
(ACV), EBITDA, adjusted EBITDA, adjusted net earnings and adjusted net
earnings per share provides useful information to investors regarding
certain additional financial and business trends relating to its
financial condition and results of operations. The Annual Contract Value
(ACV) is a forward-looking operating measure used by management to
better understand cloud services (SaaS) revenue growth trends within the
Company's business as it reflects the Company's current estimate of
revenue to be generated under the existing client contracts in the
forward 12-month period.
The overall financial condition of the Company remains strong, with cash
and investments of approximately $76.7 million as of July 31, 2015.
During the first quarter of fiscal 2016, the Company paid approximately
$2.9 million in dividends. On August 18, 2015, we announced that our
Board of Directors declared a quarterly dividend of $0.10 per share
payable to the Class A and Class B Common Shareholders of record at the
close of business on November 13, 2015. The dividend will be paid on or
about December 4, 2015.
"Fiscal year 2016 is off to a solid start for the Company with increases
in revenue, operating earnings and net earnings compared to the same
period of the prior year," said Mike Edenfield, president and CEO of
American Software. "We continue to offer our customers the flexibility
to choose the deployment method that best suits their current business
needs while selecting a solution platform for the long term. With more
customers leveraging cloud services and software-as-a-service (SaaS)
offerings, we are transitioning revenue recognition to span the contract
term compared to recording license fees during the period of contract
execution. As a result, we have been experiencing significant
quarter-over-quarter increases in Cloud Services Annual Contract Value
(ACV)."
"Today, leading businesses are pragmatically preparing for growth and
are looking to increase visibility and lower operating costs while
improving their ability to respond to dynamic market conditions,"
continued Edenfield. "Our industry-leading portfolio of solutions helps
our customers optimize inventory investments and synchronize demand with
supply across strategic, tactical and operational horizons. With the
ability to model, optimize and evaluate multiple business scenarios, our
customers have better information and greater confidence to respond
effectively to dynamic market conditions."
Additional highlights for the first quarter of fiscal 2016 include:
Customers & Channels
-
Notable new and existing customers placing orders with the Company in
the first quarter include: American Type Culture Collection, Aramark
Uniform & Career Apparel, Canada Goose, Jump Design Group, LaCrosse
Footwear, Norbrook Laboratories, Orchard Brands, Pattonair, Smithfield
Foods, Sonoco Products Company, and Taylor Farms.
-
During the quarter, software agreements were signed with customers
located in the following nine countries: Australia, Canada, Denmark,
Ecuador, Finland, Germany, Mexico, the United Kingdom, and the United
States.
-
Logility, a wholly-owned subsidiary of the Company, announced industry
publication Supply & Demand Chain Executive named
Logility's work with PartyLite one of the top 100 supply chain
projects of the year. The award highlights PartyLite's supply chain
transformation powered by Logility. The highly promotion driven
business turned to Logility Voyager Solutions™ and achieved its
business goals in less than eight months while reducing air freight 30
percent, increasing active inventory turns more than 90 percent, and
realizing a 47 percent reduction in excess and obsolete inventory.
-
Demand Management, a wholly-owned subsidiary of Logility, announced
The CDA Group, a provider of kitchen appliances in the United Kingdom,
selected its Demand Solutions DSX Forecast Management and Requirements
Planning solutions. Demand Management will help The CDA Group achieve
its goal of improving its supply chain operations and standardize
supply chain planning processes onto a single platform.
-
NGC Software, a wholly-owned subsidiary of the Company, announced PPI
Apparel Group, a leader in private-label intimate apparel, is
implementing NGC's Extended PLM. NGC's Extended PLM will provide PPI
Apparel's brands with an end-to-end solution, from initial product
development and line planning to global sourcing, production
management and inbound visibility.
-
During the quarter, NGC Software announced Dutch LLC, a global,
multi-brand designer of premium contemporary apparel, is implementing
NGC's Extended PLM software. NGC's Extended PLM will help Dutch LLC
orchestrate all information, processes, systems, departments and
geographies within its global fashion operations.
-
NGC Software announced its sponsorship of PI Apparel 2015. NGC's
customer Fashion Avenue Sweater Knits presented at the event to
highlight how complex product system architectures can support the
demands of fast fashion. In addition, NGC demonstrated its fashion PLM
and supply chain management platform.
Company & Technology
-
Inbound Logistics magazine named Logility a recipient of its
annual Top 100 Logistics Providers award. This marked the 18th
consecutive year Logility has been recognized by Inbound Logistics
for leading the way in logistics IT software success.
-
During the quarter, industry publication SupplyChainBrain once
again named Logility to its 2015 Great Supply Chain Partners list. The
prestigious list of Great Supply Chain Partners is a result of a
customer-led nomination process where end users explain why their
solution provider of choice is deserving of this honor.
About American Software, Inc.
Atlanta-based American Software (NASDAQ: AMSWA) provides demand-driven
supply chain management and enterprise software solutions, backed by
more than 40 years of industry experience, that drive value for
companies regardless of market conditions. Logility, Inc., a
wholly-owned subsidiary of American Software, is a leading provider of
collaborative solutions to optimize the supply chain. Logility Voyager
Solutions™ is a complete supply chain and retail optimization solution
suite that features a performance monitoring architecture and provides
supply chain visibility; demand, inventory and replenishment planning;
Sales and Operations Planning (S&OP); supply and inventory optimization;
manufacturing planning and scheduling; retail merchandise planning and
allocation; and transportation planning and management. Logility
customers include Abercrombie & Fitch, Big Lots, Parker Hannifin,
Verizon Wireless, and VF Corporation. Demand Management, Inc., a
wholly-owned subsidiary of Logility, delivers supply chain solutions to
small and midsized manufacturers, distributors and retailers. Demand
Management's Demand Solutions® suite is widely deployed and globally
recognized for forecasting, demand planning and point-of-sale analysis.
Demand Management serves customers such as AutomationDirect.com,
Campbell Hausfeld and Lonely Planet. New Generation Computing® (NGC®),
a wholly-owned subsidiary of American Software, is a leading provider of
PLM, supply chain management, ERP and product testing software and
services for brand owners, retailers and consumer products companies.
NGC customers include A|X Armani Exchange, Aeropostale, Billabong,
Carter's, Casual Male, Hugo Boss, Jos. A. Bank, FGL Group, Athletica,
Marchon Eyewear, and Swatfame. For more information about American
Software, named one of the 100 Most Trustworthy Companies in America by
Forbes Magazine, please visit www.amsoftware.com,
call (800) 726-2946 or email: [email protected].
Forward-Looking Statements
This press release contains forward-looking statements that are subject
to substantial risks and uncertainties. There are a number of factors
that could cause actual results to differ materially from those
anticipated by statements made herein. These factors include, but are
not limited to, changes in general economic conditions, technology and
the market for the Company's products and services, including economic
conditions within the e-commerce markets; the timely availability and
market acceptance of these products and services; the Company's ability
to satisfy in a timely manner all SEC required filings and the
requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the
rules and regulations adopted under that Section; the challenges and
risks associated with integration of acquired product lines and
companies; the effect of competitive products and pricing; the
uncertainty of the viability and effectiveness of strategic alliances;
and the irregular pattern of the Company's revenues. For further
information about risks the Company could experience as well as other
information, please refer to the Company's current Form 10-K and other
reports and documents subsequently filed with the Securities and
Exchange Commission. For more information, contact: Vincent C. Klinges,
Chief Financial Officer, American Software, Inc., (404) 264-5477 or fax:
(404) 237-8868.
Logility is a registered trademark and Logility Voyager Solutions is
a trademark of Logility, Inc.; Demand Solutions is a registered
trademark of Demand Management, Inc.; and NGC and New Generation
Computing are registered trademarks of New Generation Computing, Inc.
Other products mentioned in this document are registered, trademarked or
service marked by their respective owners.
AMERICAN SOFTWARE, INC.
|
|
Consolidated Statements of Operations Information
|
|
(In thousands, except per share data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter Ended
|
|
|
|
|
|
July 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
Pct Chg.
|
|
Revenues:
|
|
|
|
|
|
|
|
|
License
|
|
$
|
4,876
|
|
|
$
|
4,368
|
|
|
12
|
%
|
|
Services & other
|
|
|
13,845
|
|
|
|
10,992
|
|
|
26
|
%
|
|
Maintenance
|
|
|
10,137
|
|
|
|
9,497
|
|
|
7
|
%
|
|
|
Total Revenues
|
|
|
28,858
|
|
|
|
24,857
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues:
|
|
|
|
|
|
|
|
|
License
|
|
|
1,927
|
|
|
|
1,736
|
|
|
11
|
%
|
|
Services & other
|
|
|
9,451
|
|
|
|
7,795
|
|
|
21
|
%
|
|
Maintenance
|
|
|
2,163
|
|
|
|
1,981
|
|
|
9
|
%
|
|
|
Total Cost of Revenues
|
|
|
13,541
|
|
|
|
11,512
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
15,317
|
|
|
|
13,345
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
3,566
|
|
|
|
3,374
|
|
|
6
|
%
|
|
Less: capitalized development
|
|
|
(817
|
)
|
|
|
(178
|
)
|
|
359
|
%
|
|
Sales and marketing
|
|
|
5,233
|
|
|
|
4,644
|
|
|
13
|
%
|
|
General and administrative
|
|
|
3,447
|
|
|
|
3,215
|
|
|
7
|
%
|
|
Provision for doubtful accounts
|
|
|
-
|
|
|
|
42
|
|
|
nm
|
|
Amortization of acquisition-related intangibles
|
|
|
68
|
|
|
|
85
|
|
|
(20
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses
|
|
|
11,497
|
|
|
|
11,182
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Earnings
|
|
|
3,820
|
|
|
|
2,163
|
|
|
77
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income & Other, Net
|
|
|
303
|
|
|
|
306
|
|
|
(1
|
%)
|
Earnings Before Income Taxes
|
|
|
4,123
|
|
|
|
2,469
|
|
|
67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
1,551
|
|
|
|
935
|
|
|
66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings
|
|
$
|
2,572
|
|
|
$
|
1,534
|
|
|
68
|
%
|
Earnings per common share: (1)
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.09
|
|
|
$
|
0.05
|
|
|
80
|
%
|
|
Diluted
|
|
$
|
0.09
|
|
|
$
|
0.05
|
|
|
80
|
%
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
28,614
|
|
|
|
28,233
|
|
|
|
|
|
|
Diluted
|
|
|
28,882
|
|
|
|
28,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm- not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN SOFTWARE, INC.
|
|
NON-GAAP MEASURES OF PERFORMANCE
|
|
(In thousands, except per share data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter Ended
|
|
|
|
|
|
July 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
Pct Chg.
|
|
NON-GAAP EBITDA:
|
|
|
|
|
|
|
|
Net Earnings (GAAP Basis)
|
|
$
|
2,572
|
|
|
$
|
1,534
|
|
|
68
|
%
|
|
Income tax expense
|
|
|
1,551
|
|
|
|
935
|
|
|
66
|
%
|
|
Interest Income & Other, Net
|
|
|
(303
|
)
|
|
|
(306
|
)
|
|
(1
|
%)
|
|
Amortization of intangibles
|
|
|
1,195
|
|
|
|
1,098
|
|
|
9
|
%
|
|
Depreciation
|
|
|
216
|
|
|
|
284
|
|
|
(24
|
%)
|
EBITDA (earnings before interest, taxes, depreciation and
amortization)
|
|
|
5,231
|
|
|
|
3,545
|
|
|
48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
398
|
|
|
|
404
|
|
|
(1
|
%)
|
Adjusted EBITDA
|
|
$
|
5,629
|
|
|
$
|
3,949
|
|
|
43
|
%
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as a percentage of revenues
|
|
|
18
|
%
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA, as a percentage of revenues
|
|
|
20
|
%
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter Ended
|
|
|
|
|
|
July 31,
|
|
|
|
|
|
2015
|
|
2014
|
|
Pct Chg.
|
|
NON-GAAP EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
Net Earnings (GAAP Basis)
|
|
$
|
2,572
|
|
|
$
|
1,534
|
|
|
68
|
%
|
|
Mid Retail Loss (2)
|
|
|
-
|
|
|
$
|
187
|
|
|
nm
|
|
Amortization of acquisition-related intangibles (2)
|
|
|
46
|
|
|
|
25
|
|
|
84
|
%
|
|
Stock-based compensation (2)
|
|
|
271
|
|
|
|
251
|
|
|
8
|
%
|
Adjusted Net Earnings
|
|
$
|
2,889
|
|
|
$
|
1,997
|
|
|
45
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP diluted earnings per share
|
|
$
|
0.10
|
|
|
$
|
0.07
|
|
|
43
|
%
|
|
|
|
|
|
|
|
|
|
|
(1) - Basic per share amounts are the same for Class A and Class B
shares. Diluted per share amounts for Class A shares are shown
above. Diluted per share for Class B shares under the two-class
method are $0.09 and $0.05 for the three months ended July 31, 2015
and 2014, respectively.
|
|
|
|
|
|
|
|
|
|
(2) - Tax affected using the effective tax rate for the three months
period ended July 31, 2015 and 2014.
|
|
|
|
|
|
|
|
|
|
nm- not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN SOFTWARE, INC.
|
Consolidated Balance Sheet Information
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
July 31,
|
|
|
|
April 30,
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
$
|
46,446
|
|
|
|
|
$
|
44,655
|
|
Short-term Investments
|
|
19,146
|
|
|
|
|
|
17,584
|
|
Accounts Receivable:
|
|
|
|
|
|
|
Billed
|
|
14,259
|
|
|
|
|
|
16,018
|
|
|
Unbilled
|
|
3,045
|
|
|
|
|
|
3,585
|
|
Total Accounts Receivable, net
|
|
17,304
|
|
|
|
|
|
19,603
|
|
Prepaids & Other
|
|
3,414
|
|
|
|
|
|
3,748
|
|
Current Assets
|
|
86,310
|
|
|
|
|
|
85,590
|
|
|
|
|
|
|
|
|
|
Investments - Non-current
|
|
11,156
|
|
|
|
|
|
13,156
|
|
|
|
|
|
|
|
|
|
PP&E, net
|
|
3,397
|
|
|
|
|
|
3,548
|
|
Capitalized Software, net
|
|
9,659
|
|
|
|
|
|
9,815
|
|
Goodwill
|
|
18,749
|
|
|
|
|
|
18,749
|
|
Other Intangibles, net
|
|
2,526
|
|
|
|
|
|
2,748
|
|
Other Non-current Assets
|
|
678
|
|
|
|
|
|
660
|
|
Total Assets
|
$
|
132,475
|
|
|
|
|
$
|
134,266
|
|
|
|
|
|
|
|
|
|
Accounts Payable
|
$
|
974
|
|
|
|
|
$
|
920
|
|
Accrued Compensation and Related costs
|
|
2,601
|
|
|
|
|
|
3,048
|
|
Dividend Payable
|
|
2,863
|
|
|
|
|
|
2,861
|
|
Other Current Liabilities
|
|
3,571
|
|
|
|
|
|
3,274
|
|
Deferred Tax Liability - Current
|
|
707
|
|
|
|
|
|
636
|
|
Deferred Revenues - Current
|
|
26,634
|
|
|
|
|
|
28,511
|
|
Current Liabilities
|
|
37,350
|
|
|
|
|
|
39,250
|
|
|
|
|
|
|
|
|
|
Deferred Revenues - Non-current
|
|
426
|
|
|
|
|
|
290
|
|
Deferred Tax Liability - Non-current
|
|
781
|
|
|
|
|
|
995
|
|
Other Long-term Liabilities
|
|
615
|
|
|
|
|
|
805
|
|
Long-term Liabilities
|
|
1,822
|
|
|
|
|
|
2,090
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
39,172
|
|
|
|
|
|
41,340
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
93,303
|
|
|
|
|
|
92,926
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity
|
$
|
132,475
|
|
|
|
|
$
|
134,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN SOFTWARE, INC.
|
Condensed Consolidated Cashflow Information
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
July 31,
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
$
|
5,265
|
|
|
|
|
$
|
1,125
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized computer software development costs
|
|
(817
|
)
|
|
|
|
|
(178
|
)
|
|
|
Purchases of property and equipment, net of disposals
|
|
(65
|
)
|
|
|
|
|
(58
|
)
|
|
|
Purchase of business, net of cash acquired
|
|
-
|
|
|
|
|
|
(7,881
|
)
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
(882
|
)
|
|
|
|
|
(8,117
|
)
|
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
(2,861
|
)
|
|
|
|
|
(2,826
|
)
|
|
|
Excess tax benefits from stock based compensation
|
|
13
|
|
|
|
|
|
41
|
|
|
|
Proceeds from exercise of stock options
|
|
256
|
|
|
|
|
|
183
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
(2,592
|
)
|
|
|
|
|
(2,602
|
)
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
1,791
|
|
|
|
|
|
(9,594
|
)
|
|
|
Cash and cash equivalents at beginning of period
|
|
44,655
|
|
|
|
|
|
55,803
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
$
|
46,446
|
|
|
|
|
$
|
46,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150827005973/en/
[ Back To TMCnet.com's Homepage ]
|