[February 22, 2018] |
|
American Software Reports Preliminary Third Quarter of Fiscal Year 2018 Results
American Software, Inc. (NASDAQ: AMSWA) today reported preliminary
financial results for the third quarter of fiscal year 2018.
Key third quarter financial highlights:
-
Cloud Services Annual Contract Value (ACV) increased approximately
125% to $10.9 million as of the quarter ended January 31, 2018
compared to $4.9 million as of the same period of the prior year. ACV
consists of Software-as-a-Service (SaaS) of $8.1 million, a 217%
increase when compared to approximately $2.6 million for the same
period last year, and other cloud services of $2.8 million, a 22%
increase when compared to $2.3 million for the same period last year.
-
Total revenues for the quarter ended January 31, 2018 were $30.1
million, an increase of 14% over the comparable period last year.
-
Recurring revenue streams of Maintenance and Cloud Services were 46%
of total revenues in the quarter ended January 31, 2018 compared to
45% in the same period of the prior year.
-
Maintenance revenues for the quarter ended January 31, 2018 increased
5% to $11.2 million compared to $10.7 million for the same period last
year.
-
Software license revenues for the quarter ended January 31, 2018 were
$6.0 million, an increase of 50% compared to the same period last year.
-
Services and other revenues for the quarter ended January 31, 2018
increased 9% to $12.9 million compared to $11.8 million for the same
period last year.
-
Operating earnings for the quarter ended January 31, 2018 increased
71% to $4.2 million compared to $2.5 million for the same period last
year.
-
GAAP net earnings for the quarter ended January 31, 2018 increased
149% to $5.6 million or $0.18 per fully diluted share compared to $2.2
million or $0.08 per fully diluted share for the same period last year.
-
Adjusted net earnings for the quarter ended January 31, 2018, which
excludes a discrete tax benefit adjustment related to the Tax Cuts and
Jobs Act of 2017, non-cash stock-based compensation expense and
amortization of acquisition-related intangibles, were $5.1 million or
$0.17 per fully diluted share compared to $2.7 million or $0.09 per
fully diluted share for the same period last year, which excluded
non-cash stock-based compensation expense and amortization of
acquisition-related intangibles.
-
EBITDA increased by 30% to $5.8 million for the quarter ended January
31, 2018 compared to $4.5 million for the quarter ended January 31,
2017.
-
Adjusted EBITDA increased 28% to $6.1 million for the quarter ended
January 31, 2018 compared to $4.8 million for the quarter ended
January 31, 2017. Adjusted EBITDA represents GAAP net earnings
adjusted for amortization of intangibles, depreciation, interest
income & other, net, income tax expense and non-cash stock-based
compensation expense.
Key fiscal 2018 year to date financial highlights:
-
Total revenues for the nine months ended January 31, 2018 increased by
4% to $83.3 million compared to $80.0 million the same period last
year.
-
Recurring revenue streams of Maintenance and Cloud Services were 47%
of total revenues for the nine month period ended January 31, 2018
compared to 44% in the same period of the prior year.
-
Maintenance revenues for the nine months ended January 31, 2018 were
$32.9 million, a 3% increase compared to $31.9 million for the same
period last year.
-
Software license revenues for the nine month period ended January 31,
2018 increased by 6% to $12.4 million compared to $11.7 million for
the same period last year.
-
Services and other revenues for the nine months ended January 31, 2018
increased 4% to $38.0 million compared to $36.4 million for the same
period last year.
-
For the nine months ended January 31, 2018, the Company reported
operating earnings of approximately $11.1 million compared to $4.8
million for the same period last year, a 130% increase over the same
period last year.
-
GAAP net earnings were approximately $10.8 million or $0.36 per fully
diluted share for the nine months ended January 31, 2018, a 148%
increase compared to $4.3 million or $0.15 per fully diluted share for
the same period last year.
-
Adjusted net earnings for the nine months ended January 31, 2018,
which excludes a discrete tax benefit adjustment related to the Tax
Cuts and Jobs Act of 2017, stock-based compensation expense and
amortization of acquisition-related intangibles increased 102% to
$11.3 million or $0.37 per fully diluted share, compared to $5.6
million or $0.19 per fully diluted share for the same period last
year, which also excluded stock-based compensation expenses and
acquisition-related amortization of intangibles.
-
EBITDA increased by 56% to $15.4 million for the nine months ended
January 31, 2018 compared to $9.9 million for the same period last
year.
-
Adjusted EBITDA increased 50% to $16.5 million for the nine months
ended January 31, 2018 compared to $11.0 million for the nine months
ended January 31, 2017. Adjusted EBITDA represents GAAP net earnings
adjusted for amortization of intangibles, depreciation, interest
income & other, net, income tax expense and non-cash stock-based
compensation.
The overall financial condition of the Company remains strong, with cash
and investments of approximately $88.4 million and no debt as of January
31, 2018. We increased cash and investments by $9.2 million from the
same period last year. During the third quarter, the Company paid
approximately $3.3 million in shareholder dividends and approximately
$9.3 million for the purchase of Halo Business Intelligence, a San
Diego-based supplier of advanced analytics and business intelligence
solutions for the supply chain market.
"We are pleased with our third quarter fiscal year 2018 results which
reflect our ability to serve customers in new and expanded ways with the
investments we've made in our Logility Voyager Solutions™,
Demand Solutions®, Halo and NGC Andromeda™
platforms," said Allan Dow, president of American Software. "Consistent
with the previous two quarters, the trend towards SaaS subscriptions as
a preferred engagement method for new customers is accelerating and is
positively highlighted by our 217% growth in SaaS subscription revenue."
"Additionally, we believe our acquisition of Halo will provide customers
the increased visibility, accuracy and agility necessary to thrive in
today's dynamic global economy," continued Dow. "With the additional
Machine Learning, algorithmic planning, advanced supply chain analytics
and artificial intelligence capabilities from Halo embedded in our
retail planning and supply chain solutions, we are helping our customers
improve their operating performance and overcome supply chain talent
shortages that may be hampering their profitable growth, new product
introductions and general supply chain efficiencies."
"In January, less than 60 days post acquisition, we demonstrated the
ability for Logility customers to leverage the data science and
analytics expertise from Halo to quickly identify and visualize new
insights and take actions which can reduce costs, improve customer
service and drive more profitable growth for their businesses."
Additional highlights for the third quarter of fiscal 2018 include:
Customers & Channels
-
Notable new and existing customers placing orders with the Company in
the Third quarter include: Acton Air, Croda Europe, Dixon Valve &
Coupling Company, Fanatics Apparel, Freddy Hirsch, Mayville
Engineering Company, Omega Pharma International, Orbis Corporation,
Quality Steel, Rockler Companies, and TD Automotive Group.
-
During the quarter, software license and/or SaaS subscription
agreements were signed with customers located in the following 17
countries: Australia, Belgium, Brazil, Canada, Finland, France,
Germany, Italy, Mexico, Netherlands, New Zealand, Panama, South
Africa, Sweden, United Kingdom, United States, and Uruguay.
-
Logility Inc., a wholly-owned subsidiary of the Company, announced
Kingston Technology Company, Inc., the independent world leader in
memory products, selected Logility Voyager Solutions to support the
rapid growth of its gaming division, HyperX™.
-
Demand Management Inc., a wholly-owned subsidiary of Logility,
announced that Siemens Healthineers, the separately managed healthcare
business of Siemens AG, went live on Demand Solutions DSX. Moving
forward, the implementation will support users across North America,
South America, Europe and Africa.
-
NGC Software, a
wholly-owned subsidiary of the Company, announced that FIDM (Fashion
Institute of Design & Merchandising), one of the top fashion and
design schools in the U.S., will utilize NGC's next-generation AndromedaTM Cloud
Platform as an integral part of its educational curriculum.
-
Logility invited supply chain leaders to attend a live webcast
featuring Berry Global on the topic of supply chain transformation.
The event, which featured Mike Reibsamen of Berry Global and Karin
Bursa of Logility, discussed how Berry Global implemented an
integrated business planning process to generate a better demand
signal, increase visibility, and optimize supply and production.
Company & Technology
-
Logility announced during the quarter that the company acquired
privately-held Halo Business Intelligence, a San Diego-based supplier
of advanced analytics and business intelligence solutions for the
supply chain market. Halo's advanced analytics will leverage the rich
insights available in the Logility Voyager Solutions platform.
Interactive visualization, Machine Learning algorithms, and Artificial
Intelligence transform both structured and unstructured data to
accelerate business planning performance and proactively identify new
business opportunities and mitigate risks.
-
Logility unveiled its first application of advanced analytics driven
by the acquisition of Halo Business Intelligence. The new analytics,
designed to boost retail performance, utilize Artificial Intelligence,
Machine Learning and social signals to drive new insights and
transform data into action. These embedded advanced analytics leverage
the rich merchandise, assortment, allocation and replenishment data
available in the Logility Voyager Retail Optimization platform as well
as unstructured data from social signals such as Twitter.
-
Halo, a division of Logility, announced the worldwide release
of HaloBoost, the company's proprietary demand forecasting engine that
leverages proven Machine Learning algorithms. HaloBoost combines
Machine Learning methods to improve forecast accuracy, provides a
high-speed modeling workflow to improve analyst productivity and
knowledge discovery, and delivers a simple, scalable method to
introduce external factors like pricing, promotion, social media, and
weather predictors.
-
Halo announced a partnership with Open Systems, Inc., entering into a
supply and service agreement that grants Open Systems access to the
full range of Halo's supply chain analytics and business intelligence
solutions. Halo's advanced portfolio of products will enable Open
Systems to expand its current service offering to a new and existing
customer base.
-
Logility and NGC Software announced their participation at NRF 2018:
Retail's Big Show and invited attendees to booth #2520 to
experience the benefits of an integrated strategic, tactical and
operational planning and execution platform to simplify the complex
challenges of today's omni-channel retail environment.
-
Logility and Demand Management were both recognized members of the
annual FL100 by industry publication Food Logistics. This award is a
recognition of the top 100 technology providers for the food and
beverage industry and marks the 14th consecutive year Logility has
been recognized and the 9th placement for Demand Management for
delivering innovative solutions to the food and beverage industry.
-
Logility and NGC Software each announced they were named leaders in
multiple categories of the 2017 RIS Software LeaderBoard. The award
ranks technology vendors based on customer satisfaction surveys across
a wide range of criteria and is widely recognized as one of the retail
industry's most authoritative rankings of retail technology software
vendors.
-
Logility continued its support of The Empty Stocking Fund for the
tenth year. Through employee and company contributions, Logility's
Sponsor-a-Child donation campaign was able to help more than 1,000
children across metro-Atlanta experience a more cheerful 2017 holiday
season. Logility employees also volunteered their time at Santa's
Village to help families select the perfect gifts for their children
whose stockings may have otherwise hung empty this holiday.
About American Software, Inc.
Atlanta-based American Software, Inc. (NASDAQ: AMSWA) provides
demand-driven supply chain management and advanced retail planning
solutions, backed by more than 45 years of industry expertise, that
drive value for companies regardless of market conditions. Logility,
Inc., a wholly-owned subsidiary of American Software, is a leading
provider of collaborative supply chain optimization and advanced retail
planning solutions that help medium, large, and Fortune 500 companies
realize substantial bottom-line results in record time. Logility Voyager
Solutions™ is a complete supply chain and retail optimization solution
suite that provides advanced analytics; supply chain visibility; demand,
inventory and replenishment planning; Sales and Operations Planning
(S&OP); Integrated Business Planning (IBP), supply and inventory
optimization; manufacturing planning and scheduling; retail merchandise
and assortment 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
affordable, easy-to-use Software-as-a-Service (SaaS) supply chain
solutions for manufacturers and distributors designed to increase
forecast accuracy, improve customer service levels, and reduce overall
inventory to maximize profits and lower costs. Demand Solutions DSX
offers demand planning, collaborative forecasting, inventory planning,
production planning and scheduling, S&OP and IBP. Demand Management
serves customers such as Siemens Healthcare, AutomationDirect.com, and
Newfoundland Labrador Liquor Corporation. Halo Business Intelligence,
a division of Logility, is an advanced analytics software and advisory
services provider that offers customers an innovative blend of
technology to drive better supply chain performance. The Halo Advanced
Information Hub is a first-of-its kind solution to help companies
leverage all of their corporate data to generate new insight for
competitive advantage. Halo customers include Leatherman Tool Group,
SweetWater Brewing, and Aaron's Inc. New Generation Computing® (NGC®),
a wholly-owned subsidiary of American Software, is a leading provider of
PLM, and supply chain management software and services for brand owners,
retailers and consumer products companies. NGC customers include A|X
Armani Exchange, Billabong, Carter's, Destination XL, Hugo Boss, Jos. A.
Bank, Marchon Eyewear, Spanx, Swatfame and many others. 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].
Operating and Non-GAAP Financial Measures
The Company includes operating measures (ACV) and other non-GAAP
financial measures (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 the operating or non-GAAP financial information
used by other companies. The Company believes that this presentation of
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. ACV is a forward-looking
operating measure used by management to better understand cloud services
(SaaS and other related cloud services) revenue 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. EBITDA represents GAAP net earnings adjusted
for amortization of intangibles, depreciation, interest income & other,
net, and income tax expense. Adjusted EBITDA represents GAAP net
earnings adjusted for amortization of intangibles, depreciation,
interest income & other, net, income tax expense and non-cash
stock-based compensation expense. A reconciliation of these non-GAAP
financial measures to their nearest U.S. GAAP measure appears in the
accompanying financial tables.
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) 264-5298.
Logility is a registered trademark and Logility Voyager Solutions is
a trademark of Logility; Demand Solutions is a registered trademark of
Demand Management; and NGC and New Generation Computing are registered
trademarks and Andromeda is a trademark 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Ended
|
|
Nine Months Ended
|
|
|
|
January 31,
|
|
January 31,
|
|
|
|
|
2018
|
|
|
|
2017
|
|
|
Pct Chg.
|
|
|
2018
|
|
|
|
2017
|
|
|
Pct Chg.
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License
|
|
|
$
|
5,955
|
|
|
$
|
3,959
|
|
|
50
|
%
|
|
$
|
12,420
|
|
|
$
|
11,726
|
|
|
6
|
%
|
Services & other
|
|
|
|
12,926
|
|
|
|
11,815
|
|
|
9
|
%
|
|
|
38,017
|
|
|
|
36,385
|
|
|
4
|
%
|
Maintenance
|
|
|
|
11,236
|
|
|
|
10,667
|
|
|
5
|
%
|
|
|
32,903
|
|
|
|
31,909
|
|
|
3
|
%
|
Total Revenues
|
|
|
|
30,117
|
|
|
|
26,441
|
|
|
14
|
%
|
|
|
83,340
|
|
|
|
80,020
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License
|
|
|
|
1,940
|
|
|
|
2,081
|
|
|
(7
|
%)
|
|
|
5,295
|
|
|
|
5,510
|
|
|
(4
|
%)
|
Services & other
|
|
|
|
8,727
|
|
|
|
8,061
|
|
|
8
|
%
|
|
|
24,849
|
|
|
|
26,158
|
|
|
(5
|
%)
|
Maintenance
|
|
|
|
2,404
|
|
|
|
2,250
|
|
|
7
|
%
|
|
|
6,919
|
|
|
|
7,489
|
|
|
(8
|
%)
|
Total Cost of Revenues
|
|
|
|
13,071
|
|
|
|
12,392
|
|
|
5
|
%
|
|
|
37,063
|
|
|
|
39,157
|
|
|
(5
|
%)
|
Gross Margin
|
|
|
|
17,046
|
|
|
|
14,049
|
|
|
21
|
%
|
|
|
46,277
|
|
|
|
40,863
|
|
|
13
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
4,134
|
|
|
|
3,939
|
|
|
5
|
%
|
|
|
11,902
|
|
|
|
11,813
|
|
|
1
|
%
|
Less: capitalized development
|
|
|
|
(1,035
|
)
|
|
|
(865
|
)
|
|
20
|
%
|
|
|
(3,652
|
)
|
|
|
(2,470
|
)
|
|
48
|
%
|
Sales and marketing
|
|
|
|
5,385
|
|
|
|
4,635
|
|
|
16
|
%
|
|
|
15,055
|
|
|
|
15,307
|
|
|
(2
|
%)
|
General and administrative
|
|
|
|
4,263
|
|
|
|
3,500
|
|
|
22
|
%
|
|
|
11,394
|
|
|
|
10,682
|
|
|
7
|
%
|
Provision for doubtful accounts
|
|
|
|
-
|
|
|
|
-
|
|
|
nm
|
|
|
24
|
|
|
|
19
|
|
|
26
|
%
|
Amortization of acquisition-related intangibles
|
|
|
|
95
|
|
|
|
385
|
|
|
(75
|
%)
|
|
|
486
|
|
|
|
702
|
|
|
(31
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses
|
|
|
|
12,842
|
|
|
|
11,594
|
|
|
11
|
%
|
|
|
35,209
|
|
|
|
36,053
|
|
|
(2
|
%)
|
Operating Earnings
|
|
|
|
4,204
|
|
|
|
2,455
|
|
|
71
|
%
|
|
|
11,068
|
|
|
|
4,810
|
|
|
130
|
%
|
Interest Income & Other, Net
|
|
|
|
1,574
|
|
|
|
1,025
|
|
|
54
|
%
|
|
|
2,849
|
|
|
|
1,519
|
|
|
88
|
%
|
Earnings Before Income Taxes
|
|
|
|
5,778
|
|
|
|
3,480
|
|
|
66
|
%
|
|
|
13,917
|
|
|
|
6,329
|
|
|
120
|
%
|
Income Tax Expense
|
|
|
|
198
|
|
|
|
1,237
|
|
|
(84
|
%)
|
|
|
3,132
|
|
|
|
1,985
|
|
|
58
|
%
|
Net Earnings
|
|
|
$
|
5,580
|
|
|
$
|
2,243
|
|
|
149
|
%
|
|
$
|
10,785
|
|
|
$
|
4,344
|
|
|
148
|
%
|
Earnings per common share: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.18
|
|
|
$
|
0.08
|
|
|
125
|
%
|
|
$
|
0.36
|
|
|
$
|
0.15
|
|
|
140
|
%
|
Diluted
|
|
|
$
|
0.18
|
|
|
$
|
0.08
|
|
|
125
|
%
|
|
$
|
0.36
|
|
|
$
|
0.15
|
|
|
140
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
30,244
|
|
|
|
29,333
|
|
|
|
|
|
29,940
|
|
|
|
29,136
|
|
|
|
Diluted
|
|
|
|
30,701
|
|
|
|
29,630
|
|
|
|
|
|
30,299
|
|
|
|
29,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm- not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN SOFTWARE, INC.
|
NON-GAAP MEASURES OF PERFORMANCE
|
(In thousands, except per share data, unaudited)
|
|
|
|
|
|
Third Quarter Ended
|
|
Nine Months Ended
|
|
|
|
|
January 31,
|
|
January 31,
|
|
|
|
|
|
2018
|
|
|
|
2017
|
|
|
Pct Chg.
|
|
|
2018
|
|
|
|
2017
|
|
|
Pct Chg.
|
NON-GAAP EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings (GAAP Basis)
|
|
|
$
|
5,580
|
|
|
$
|
2,243
|
|
|
149
|
%
|
|
$
|
10,785
|
|
|
$
|
4,344
|
|
|
148
|
%
|
Income Tax Expense
|
|
|
|
198
|
|
|
|
1,237
|
|
|
(84
|
%)
|
|
|
3,132
|
|
|
|
1,985
|
|
|
58
|
%
|
Interest Income & Other, Net
|
|
|
|
(1,574
|
)
|
|
|
(1,025
|
)
|
|
54
|
%
|
|
|
(2,849
|
)
|
|
|
(1,519
|
)
|
|
88
|
%
|
Amortization of intangibles
|
|
|
|
1,475
|
|
|
|
1,848
|
|
|
(20
|
%)
|
|
|
3,945
|
|
|
|
4,453
|
|
|
(11
|
%)
|
Depreciation
|
|
|
|
124
|
|
|
|
153
|
|
|
(19
|
%)
|
|
|
359
|
|
|
|
592
|
|
|
(39
|
%)
|
EBITDA (earnings before interest, taxes, depreciation and
amortization)
|
|
|
|
5,803
|
|
|
|
4,456
|
|
|
30
|
%
|
|
|
15,372
|
|
|
|
9,855
|
|
|
56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
314
|
|
|
|
333
|
|
|
(6
|
%)
|
|
|
1,107
|
|
|
|
1,111
|
|
|
0
|
%
|
Adjusted EBITDA
|
|
|
$
|
6,117
|
|
|
$
|
4,789
|
|
|
28
|
%
|
|
$
|
16,479
|
|
|
$
|
10,966
|
|
|
50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA , as a percentage of revenues
|
|
|
|
19
|
%
|
|
|
17
|
%
|
|
|
|
|
18
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA , as a percentage of revenues
|
|
|
|
20
|
%
|
|
|
18
|
%
|
|
|
|
|
20
|
%
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Ended
|
|
Nine Months Ended
|
|
|
|
|
January 31,
|
|
January 31,
|
|
|
|
|
|
2018
|
|
|
|
2017
|
|
|
Pct Chg.
|
|
|
2018
|
|
|
|
2017
|
|
|
Pct Chg.
|
NON-GAAP EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings (GAAP Basis)
|
|
|
$
|
5,580
|
|
|
$
|
2,243
|
|
|
149
|
%
|
|
$
|
10,785
|
|
|
$
|
4,344
|
|
|
148
|
%
|
Tax Cuts and Jobs Act of 2017 Adjustment (3)
|
|
|
|
(1,112
|
)
|
|
|
-
|
|
|
nm
|
|
|
(1,112
|
)
|
|
|
-
|
|
|
nm
|
Amortization of acquisition-related intangibles (2)
|
|
|
|
398
|
|
|
|
190
|
|
|
109
|
%
|
|
|
855
|
|
|
|
482
|
|
|
77
|
%
|
Stock-based compensation (2)
|
|
|
|
243
|
|
|
|
290
|
|
|
(16
|
%)
|
|
|
777
|
|
|
|
762
|
|
|
2
|
%
|
Adjusted Net Earnings
|
|
|
$
|
5,109
|
|
|
$
|
2,723
|
|
|
88
|
%
|
|
$
|
11,305
|
|
|
$
|
5,588
|
|
|
102
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP diluted earnings per share
|
|
|
$
|
0.17
|
|
|
$
|
0.09
|
|
|
89
|
%
|
|
$
|
0.37
|
|
|
$
|
0.19
|
|
|
95
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $0.18 and $0.36 for the three and nine months ended
January 31, 2018, respectively. Diluted per share for Class B shares
under the two-class method are $0.08 and $0.15 for the three and
nine months ended January 31, 2017, respectively.
|
(2) - Tax affected using the effective tax rate before the Tax
Cuts and Jobs Act of 2017 discrete item for the three and nine
months period ended January 31, 2018 and 2017.
|
(3) - Adjustment primarily due to the rate difference on our
Deferred Tax Liabilities from the Tax Cuts and Jobs Act of 2017.
|
|
|
|
|
nm- not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN SOFTWARE, INC.
|
Consolidated Balance Sheet Information
|
(In thousands)
|
(Unaudited)
|
|
|
|
January 31,
|
|
April 30,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
|
$
|
54,912
|
|
$
|
66,001
|
Short-term Investments
|
|
|
|
23,055
|
|
|
19,332
|
Accounts Receivable:
|
|
|
|
|
|
Billed
|
|
|
|
20,456
|
|
|
17,060
|
Unbilled
|
|
|
|
2,714
|
|
|
2,811
|
Total Accounts Receivable, net
|
|
|
|
23,170
|
|
|
19,871
|
Prepaids & Other
|
|
|
|
5,510
|
|
|
4,322
|
Current Assets
|
|
|
|
106,647
|
|
|
109,526
|
|
|
|
|
|
|
Investments - Non-current
|
|
|
|
10,464
|
|
|
4,455
|
|
|
|
|
|
|
PP&E, net
|
|
|
|
2,151
|
|
|
2,055
|
Capitalized Software, net
|
|
|
|
9,539
|
|
|
8,614
|
Goodwill
|
|
|
|
25,468
|
|
|
19,549
|
Other Intangibles, net
|
|
|
|
6,171
|
|
|
3,399
|
Other Non-current Assets
|
|
|
|
3,483
|
|
|
1,176
|
Total Assets
|
|
|
$
|
163,923
|
|
$
|
148,774
|
|
|
|
|
|
|
Accounts Payable
|
|
|
$
|
1,841
|
|
$
|
1,541
|
Accrued Compensation and Related costs
|
|
|
|
5,624
|
|
|
3,329
|
Dividend Payable
|
|
|
|
3,344
|
|
|
3,259
|
Other Current Liabilities
|
|
|
|
2,602
|
|
|
5,171
|
Deferred Revenues - Current
|
|
|
|
33,564
|
|
|
29,437
|
Current Liabilities
|
|
|
|
46,975
|
|
|
42,737
|
|
|
|
|
|
|
Deferred Revenues - Non-current
|
|
|
|
531
|
|
|
214
|
Deferred Tax Liability - Non-current
|
|
|
|
2,202
|
|
|
1,994
|
Other Long-term Liabilities
|
|
|
|
1,779
|
|
|
79
|
Long-term Liabilities
|
|
|
|
4,512
|
|
|
2,287
|
|
|
|
|
|
|
Total Liabilities
|
|
|
|
51,487
|
|
|
45,024
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
112,436
|
|
|
103,750
|
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity
|
|
|
$
|
163,923
|
|
$
|
148,774
|
|
|
|
|
|
|
|
|
|
AMERICAN SOFTWARE, INC.
|
Condensed Consolidated Cashflow Information
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
January 31,
|
|
|
|
|
|
|
2018
|
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
5,352
|
|
|
|
$
|
19,262
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized computer software development costs
|
|
|
|
(3,652
|
)
|
|
|
|
(2,471
|
)
|
|
|
Purchases of property and equipment, net of disposals
|
|
|
|
(413
|
)
|
|
|
|
(500
|
)
|
|
|
Purchase of business, net of cash acquired
|
|
|
|
(9,253
|
)
|
|
|
|
(4,441
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
(13,318
|
)
|
|
|
|
(7,412
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
|
(9,842
|
)
|
|
|
|
(9,299
|
)
|
|
|
Payment for accrued acquisition consideration
|
|
|
|
-
|
|
|
|
|
(200
|
)
|
|
|
Proceeds from exercise of stock options
|
|
|
|
6,719
|
|
|
|
|
4,397
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
(3,123
|
)
|
|
|
|
(5,102
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
(11,089
|
)
|
|
|
|
6,748
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
66,001
|
|
|
|
|
49,004
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
54,912
|
|
|
|
$
|
55,752
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180222006252/en/
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