[November 29, 2018] |
|
American Software Reports Preliminary Second Quarter of Fiscal Year 2019 Results
American Software, Inc. (NASDAQ: AMSWA) today reported preliminary
financial results for the second quarter for fiscal year 2019.
Key Second quarter financial highlights:
-
Subscription fees were $3.3 million for the quarter ended October 31,
2018, a 64% increase compared to $2.0 million for the same period last
year, while Software license revenues were $2.0 million, an 18%
decrease compared to $2.4 million for the same period last year,
reflecting our continued transition to the SaaS engagement model.
-
Cloud Services Annual Contract Value (ACV) increased approximately 46%
to $14.5 million as of the quarter ended October 31, 2018 compared to
$9.9 million as of the same period of the prior year.
-
Total revenues for the quarter ended October 31, 2018 were $28.0
million, an increase of 6% over the comparable period last year.
-
Recurring revenue streams for Maintenance and Cloud Services were 53%
of total revenues in the quarter ended October 31, 2018 compared to
49% in the same period of the prior year.
-
Maintenance revenues for the quarter ended October 31, 2018 increased
7% to $11.6 million compared to $10.8 million for the same period last
year.
-
Professional services and other revenues for the quarter ended October
31, 2018 were $11.1 million compared to $11.0 million for the same
period last year.
-
Operating earnings for the quarter ended October 31, 2018 decreased
53% to $1.5 million compared to $3.2 million for the same period last
year.
-
GAAP net earnings for the quarter ended October 31, 2018 decreased 50%
to $1.2 million or $0.04 per fully diluted share compared to $2.5
million or $0.08 per fully diluted share for the same period last year.
-
Adjusted net earnings for the quarter ended October 31, 2018, which
excludes non-cash stock-based compensation expense and amortization of
acquisition-related intangibles, were $2.2 million or $0.07 per fully
diluted share compared to $3.0 million or $0.10 per fully diluted
share for the same period last year.
-
EBITDA decreased by 25% to $3.4 million for the quarter ended October
31, 2018 compared to $4.6 million for the same period last year.
-
Adjusted EBITDA decreased by 23% to $3.9 million for the quarter ended
October 31, 2018 compared to $5.0 million for the quarter ended
October 31, 2017. Adjusted EBITDA represents GAAP net earnings
adjusted for amortization of intangibles, depreciation, interest
(expense)/income & other, net, income tax expense and non-cash
stock-based compensation expense.
Key fiscal 2019 year to date financial highlights:
-
Subscription fees were $6.5 million for the six months ended October
31, 2018, a 78% increase compared to $3.7 million for the same period
last year, while software license revenues were $3.7 million, a 43%
decrease compared to $6.5 million for the same period last year,
reflecting our continued transition to the SaaS engagement model.
-
Total revenues for the six months ended October 31, 2018 increased by
4% to $55.4 million compared to $53.2 million for the same period last
year.
-
Recurring revenue streams of Maintenance and Cloud Services were 53%
of total revenues for the six month period ended October 31, 2018
compared to 48% in the same period of the prior year.
-
Maintenance revenues for the six months ended October 31, 2018 were
$23.1 million, a 7% increase compared to $21.7 million for the same
period last year.
-
Professional services and other revenues for the six months ended
October 31, 2018 increased 3% to $22.1 million compared to $21.4
million for the same period last year.
-
For the six months ended October 31, 2018, the Company reported
operating earnings of approximately $2.1 million compared to $6.9
million for the same period last year, a 69% decrease.
-
GAAP net earnings were approximately $2.6 million or $0.08 per fully
diluted share for the six months ended October 31, 2018, a 50%
decrease compared to $5.2 million or $0.17 per fully diluted share for
the same period last year.
-
EBITDA decreased by 39% to $5.8 million for the six months ended
October 31, 2018 compared to $9.6 million for the same period last
year.
-
Adjusted net earnings for the six months ended October 31, 2018, which
excludes stock-based compensation expense and amortization of
acquisition-related intangibles, decreased 25% to $4.6 million or
$0.15 per fully diluted share, compared to $6.2 million or $0.20 per
fully diluted share for the same period last year.
-
Adjusted EBITDA decreased 35% to $6.7 million for the six months ended
October 31, 2018 compared to $10.4 million for the six months ended
October 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 $82.7 million and no debt as of October
31, 2018. During the second quarter of fiscal 2019, the Company paid
shareholder dividends of approximately $3.4 million.
"We continued to execute on key strategic initiatives during the second
quarter of fiscal year 2019, including our continued momentum towards
Software-as-a-Service (SaaS) subscriptions as the preferred customer
engagement method, highlighted by our 46% increase in Cloud Services
Annual Contract Value (ACV), which was fueled by a 64% increase in SaaS
subscriptions," said Allan Dow, president of American Software. "In
August, both Logility and Demand Management were recognized as Leaders
in the 2018 Gartner Magic Quadrant for Supply Chain Planning System of
Record. We believe this recognition further validates our long-standing
leadership in developing innovative software and services solutions that
help companies of all sizes mitigate risk, increase profitability and
optimize their digital supply chains."
"We strive to make it easy for customers to gain more value from our
industry-leading solutions, and our continuing development of innovative
software and services to power the digital supply chain is helping our
customers reach new levels of productivity," continued Dow. "I am
energized by our overall position in the supply chain solutions market
and the opportunity to help our customers transform their digital supply
chains, gain new insights and make better decisions faster."
Additional highlights for the second quarter of fiscal 2019 include:
Customers & Channels
-
Notable new and existing customers placing orders with the Company in
the second quarter include: A Nelson and Co, Aero OpCo, Amneal
Pharmaceuticals, Blue Bird Body Company, Brightstar Corporation, Grupo
Herdez, Jerry Leigh Entertainment, Mega Labs S.A., Mitchell
International, and Rituals Cosmetics Enterprise B.V.
-
During the quarter, SaaS subscription and/or software license
agreements were signed with customers located in the following 10
countries: Brazil, Canada, Mexico, Netherlands, New Zealand, Panama,
Commonwealth of Puerto Rico, United Kingdom, United States, and
Uruguay.
-
New Generation Computing, Inc., a wholly-owned subsidiary of the
Company, announced that Rubie's Costume Company, the world's largest
designer, manufacturer and distributor of Halloween costumes and
accessories, implemented NGC's fashion and apparel PLM solution. The
solution provides Rubie's a common platform with critical path
management processes to ensure costumes are on time, on trend and on
budget.
-
NGC announced that Randa Accessories, the world's largest men's
accessories company, has implemented Andromeda® Quality
Control and Vendor Compliance solutions. Randa selected NGC's
cloud-based Andromeda platform to automate its compliance and quality
control processes worldwide and set high standards across its more
than 50 brands.
-
Logility, Inc. invited attendees of the CSCMP EDGE 2018 Conference to
join the session, "Planning Multiple Supply Chains in an Omni-Channel
World," which featured Delton Aneato of Brightstar, the world's
leading mobile services company for managing devices and accessories.
The four-day global event took place at the Gaylord Opryland in
Nashville, TN, September 30 - October 3, 2018.
-
Logility announced the editors of Supply & Demand Chain
Executive named Logility a recipient of its 2018 Supply &
Demand Chain Executive Top 100. The award highlights the industry's
most successful and transformative projects of the past year and marks
the 16th consecutive year Logility has been honored. This
year Logility was recognized for the success that Glen Raven, a global
provider of fabric-based solutions for the awning, marine, furniture,
protective, military and geo-synthetics industries, achieved through
its implementation of Logility Voyager Solutions™.
-
Halo, Logility's supply chain advanced analytics platform, announced
that Hancocks Wine, Spirit & Beer Merchants, a leading New
Zealand-based distributor and retailer, selected the Halo Forecasting
and Demand Planning platform to help expand visibility through
advanced analytics, increase forecast accuracy and improve service
levels.
-
Demand Management, Inc., a wholly-owned subsidiary of Logility,
announced the company received the Manufacturing Leadership Partner
Award from Frost & Sullivan's Manufacturing Leadership Council,
marking the sixth time the company was honored. The program's
distinguished panel of expert judges recognized individuals and
companies across several award categories for their outstanding
manufacturing achievements. Demand Management was one of only 10
solution provider companies to receive a Manufacturing Leadership
Partner Award. TenCate Protective Fabrics was honored with a Supply
Chain Leadership Award based on its successful supply chain initiative
powered by Demand Solutions.
Company and Technology
-
Logility and Demand Management announced that both companies were
positioned by Gartner, Inc. in the "Leader" quadrant of the August
2018 Magic Quadrant for Supply Chain Planning System of Record. Among
all vendors evaluated, Gartner positioned Demand Solutions the highest
for Ability to Execute.
-
Logility, in collaboration with Peerless Research Group, made
available "The Keys to Creating and Leveraging Actionable
Information." The report highlights feedback from executives on the
opportunities, challenges and use of advanced analytics across their
supply chains.
-
Logility invited attendees of the 2018 Georgia Manufacturing Summit to
attend the session, "Trends to Track in the Supply Chain," featuring
Karin Bursa of Logility. The summit was located at the Cobb Galleria
Center in Atlanta, GA, and took place October 10, 2018.
-
Logility invited supply chain and retail planning professionals to the
webcast, "Long Live Retail - Highlights from BRP's Annual Merchandise
Planning Research." This live event discussed findings following a
survey of more than 500 executives from today's top retailers. An
on-demand replay of the webcast is available at https://www.logility.com/webcast/highlights-from-brps-annual-merchandise-planning-research.
-
Logility and Demand Management were both recognized as Great Supply
Chain Partners by the readers of SupplyChainBrain. The
award is based on a survey of supply chain professionals who were
asked to select a solution or service provider that made a noteworthy
impact on their company's efficiency, profitability and overall supply
chain performance. The 2018 recognition marked the 13th
year Logility was named and the 11th year Demand Management
received the award.
About American Software, Inc.
Atlanta-based American Software, Inc. (NASDAQ: AMSWA), named one
of the 100 Most Trustworthy Companies in America by Forbes Magazine,
delivers innovative demand-driven supply chain management and advanced
retail planning platforms backed by more than 45 years of industry
expertise. 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 transform their supply chain operations
to gain a competitive advantage. Recognized for its high-touch approach
to customer service, rapid implementations and industry-leading return
on investment (ROI), Logility customers include Big Lots, Husqvarna
Group, Parker Hannifin, Sonoco Products, Red Wing Shoe Company, 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 planning solutions designed to
increase forecast accuracy, improve customer service and reduce
inventory to maximize profits and lower costs. 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 provider
leveraging an innovative blend of artificial intelligence and machine
learning technology to drive greater supply chain performance. Halo
customers include Aaron's, Leatherman Tool Group and SweetWater Brewing. New
Generation Computing, Inc., a wholly-owned subsidiary of American
Software, is a leading provider of cloud-based supply chain and product
lifecycle management solutions for brands, 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, and Swatfame. The comprehensive American Software supply
chain and retail planning portfolio includes 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,
product lifecycle management (PLM), and vendor quality and compliance.
For more information about American Software, 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 (expense)/income
& other, net, and income tax (benefit)/expense. Adjusted EBITDA
represents GAAP net earnings adjusted for amortization of intangibles,
depreciation, interest (expense)/income & other, net, income tax
(benefit)/expense and non-cash stock-based compensation expense. A
reconciliation of these non-GAAP financial measures to their nearest
U.S. GAAP measures 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.
American Software® is a registered trademark
of American Software, Inc. 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 New Generation
Computing® and Andromeda®
are registered trademarks of New Generation Computing, Inc. Other
products mentioned in this document are registered marks, trademarks or
service marks of their respective owners.
|
|
|
AMERICAN SOFTWARE, INC.
|
Consolidated Statements of Operations Information
|
(In thousands, except per share data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
October 31,
|
|
|
October 31,
|
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
Pct Chg.
|
|
|
2018
|
|
|
2017
|
|
|
Pct Chg.
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License fees
|
|
|
|
|
$
|
2,012
|
|
|
|
$
|
2,449
|
|
|
|
(18
|
%)
|
|
|
$
|
3,714
|
|
|
|
$
|
6,464
|
|
|
|
(43
|
%)
|
|
Subscription fees
|
|
|
|
|
|
3,341
|
|
|
|
|
2,041
|
|
|
|
64
|
%
|
|
|
|
6,509
|
|
|
|
|
3,660
|
|
|
|
78
|
%
|
|
Professional services & other
|
|
|
|
|
|
11,056
|
|
|
|
|
11,008
|
|
|
|
0
|
%
|
|
|
|
22,064
|
|
|
|
|
21,431
|
|
|
|
3
|
%
|
|
Maintenance
|
|
|
|
|
|
11,624
|
|
|
|
|
10,839
|
|
|
|
7
|
%
|
|
|
|
23,145
|
|
|
|
|
21,667
|
|
|
|
7
|
%
|
|
|
Total Revenues
|
|
|
|
|
|
28,033
|
|
|
|
|
26,337
|
|
|
|
6
|
%
|
|
|
|
55,432
|
|
|
|
|
53,222
|
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License fees
|
|
|
|
|
|
1,760
|
|
|
|
|
1,651
|
|
|
|
7
|
%
|
|
|
|
3,474
|
|
|
|
|
2,965
|
|
|
|
17
|
%
|
|
Subscription services
|
|
|
|
|
|
1,288
|
|
|
|
|
903
|
|
|
|
43
|
%
|
|
|
|
2,356
|
|
|
|
|
1,751
|
|
|
|
35
|
%
|
|
Professional services & other
|
|
|
|
|
|
8,104
|
|
|
|
|
7,489
|
|
|
|
8
|
%
|
|
|
|
16,771
|
|
|
|
|
14,761
|
|
|
|
14
|
%
|
|
Maintenance
|
|
|
|
|
|
2,214
|
|
|
|
|
2,288
|
|
|
|
(3
|
%)
|
|
|
|
4,412
|
|
|
|
|
4,515
|
|
|
|
(2
|
%)
|
|
|
Total Cost of Revenues
|
|
|
|
|
|
13,366
|
|
|
|
|
12,331
|
|
|
|
8
|
%
|
|
|
|
27,013
|
|
|
|
|
23,992
|
|
|
|
13
|
%
|
Gross Margin
|
|
|
|
|
|
14,667
|
|
|
|
|
14,006
|
|
|
|
5
|
%
|
|
|
|
28,419
|
|
|
|
|
29,230
|
|
|
|
(3
|
%)
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
|
|
4,536
|
|
|
|
|
3,973
|
|
|
|
14
|
%
|
|
|
|
9,095
|
|
|
|
|
7,768
|
|
|
|
17
|
%
|
|
Less: capitalized development
|
|
|
|
|
|
(1,204
|
)
|
|
|
|
(1,330
|
)
|
|
|
(9
|
%)
|
|
|
|
(2,088
|
)
|
|
|
|
(2,617
|
)
|
|
|
(20
|
%)
|
|
Sales and marketing
|
|
|
|
|
|
5,304
|
|
|
|
|
4,437
|
|
|
|
20
|
%
|
|
|
|
10,484
|
|
|
|
|
9,670
|
|
|
|
8
|
%
|
|
General and administrative
|
|
|
|
|
|
4,408
|
|
|
|
|
3,616
|
|
|
|
22
|
%
|
|
|
|
8,601
|
|
|
|
|
7,131
|
|
|
|
21
|
%
|
|
Provision for doubtful accounts
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
24
|
|
|
|
nm
|
|
Amortization of acquisition-related intangibles
|
|
|
|
|
|
97
|
|
|
|
|
68
|
|
|
|
43
|
%
|
|
|
|
194
|
|
|
|
|
391
|
|
|
|
(50
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses
|
|
|
|
|
|
13,141
|
|
|
|
|
10,764
|
|
|
|
22
|
%
|
|
|
|
26,286
|
|
|
|
|
22,367
|
|
|
|
18
|
%
|
Operating Earnings
|
|
|
|
|
|
1,526
|
|
|
|
|
3,242
|
|
|
|
(53
|
%)
|
|
|
|
2,133
|
|
|
|
|
6,863
|
|
|
|
(69
|
%)
|
|
Interest (Expense)/Income & Other, Net
|
|
|
|
|
|
(190
|
)
|
|
|
|
676
|
|
|
|
(128
|
%)
|
|
|
|
563
|
|
|
|
|
1,275
|
|
|
|
(56
|
%)
|
Earnings Before Income Taxes
|
|
|
|
|
|
1,336
|
|
|
|
|
3,918
|
|
|
|
(66
|
%)
|
|
|
|
2,696
|
|
|
|
|
8,138
|
|
|
|
(67
|
%)
|
Income Tax Expense
|
|
|
|
|
|
93
|
|
|
|
|
1,438
|
|
|
|
(94
|
%)
|
|
|
|
68
|
|
|
|
|
2,933
|
|
|
|
(98
|
%)
|
Net Earnings
|
|
|
|
|
$
|
1,243
|
|
|
|
$
|
2,480
|
|
|
|
(50
|
%)
|
|
|
$
|
2,628
|
|
|
|
$
|
5,205
|
|
|
|
(50
|
%)
|
Earnings per common share: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
0.04
|
|
|
|
$
|
0.08
|
|
|
|
(50
|
%)
|
|
|
$
|
0.09
|
|
|
|
$
|
0.17
|
|
|
|
(47
|
%)
|
|
Diluted
|
|
|
|
|
$
|
0.04
|
|
|
|
$
|
0.08
|
|
|
|
(50
|
%)
|
|
|
$
|
0.08
|
|
|
|
$
|
0.17
|
|
|
|
(53
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
30,926
|
|
|
|
|
29,906
|
|
|
|
|
|
|
|
30,825
|
|
|
|
|
29,788
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
31,477
|
|
|
|
|
30,229
|
|
|
|
|
|
|
|
31,412
|
|
|
|
|
30,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm - not meaningful
|
|
|
|
AMERICAN SOFTWARE, INC.
|
NON-GAAP MEASURES OF PERFORMANCE
|
(In thousands, except per share data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Ended
|
|
Six Months Ended
|
|
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
|
|
2018
|
|
2017
|
|
Pct Chg.
|
|
2018
|
|
2017
|
|
Pct Chg.
|
NON-GAAP EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings (GAAP Basis)
|
|
|
$
|
1,243
|
|
|
$
|
2,480
|
|
|
(50
|
%)
|
|
$
|
2,628
|
|
|
$
|
5,205
|
|
|
(50
|
%)
|
|
Income Tax Expense
|
|
|
|
93
|
|
|
|
1,438
|
|
|
(94
|
%)
|
|
|
68
|
|
|
|
2,933
|
|
|
(98
|
%)
|
|
Interest (Expense)/Income & Other, Net
|
|
|
|
190
|
|
|
|
(676
|
)
|
|
(128
|
%)
|
|
|
(563
|
)
|
|
|
(1,275
|
)
|
|
(56
|
%)
|
|
Amortization of intangibles
|
|
|
|
1,742
|
|
|
|
1,201
|
|
|
45
|
%
|
|
|
3,392
|
|
|
|
2,466
|
|
|
38
|
%
|
|
Depreciation
|
|
|
|
171
|
|
|
|
120
|
|
|
43
|
%
|
|
|
319
|
|
|
|
239
|
|
|
33
|
%
|
EBITDA (earnings before interest, taxes, depreciation and
amortization)
|
|
|
|
3,439
|
|
|
|
4,563
|
|
|
(25
|
%)
|
|
|
5,844
|
|
|
|
9,568
|
|
|
(39
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
442
|
|
|
|
477
|
|
|
(7
|
%)
|
|
|
840
|
|
|
|
793
|
|
|
6
|
%
|
Adjusted EBITDA
|
|
|
$
|
3,881
|
|
|
$
|
5,040
|
|
|
(23
|
%)
|
|
$
|
6,684
|
|
|
$
|
10,361
|
|
|
(35
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA, as a percentage of revenues
|
|
|
|
12
|
%
|
|
|
17
|
%
|
|
|
|
|
11
|
%
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA, as a percentage of revenues
|
|
|
|
14
|
%
|
|
|
19
|
%
|
|
|
|
|
12
|
%
|
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Ended
|
|
Six Months Ended
|
|
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
|
|
2018
|
|
2017
|
|
Pct Chg.
|
|
2018
|
|
2017
|
|
Pct Chg.
|
NON-GAAP EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings (GAAP Basis)
|
|
|
$
|
1,243
|
|
|
$
|
2,480
|
|
|
(50
|
%)
|
|
$
|
2,628
|
|
|
$
|
5,205
|
|
|
(50
|
%)
|
|
Amortization of acquisition-related intangibles (2)
|
|
|
|
555
|
|
|
|
196
|
|
|
183
|
%
|
|
|
1,164
|
|
|
|
450
|
|
|
159
|
%
|
|
Stock-based compensation (2)
|
|
|
|
411
|
|
|
|
302
|
|
|
36
|
%
|
|
|
819
|
|
|
|
508
|
|
|
61
|
%
|
Adjusted Net Earnings
|
|
|
$
|
2,209
|
|
|
$
|
2,978
|
|
|
(26
|
%)
|
|
$
|
4,611
|
|
|
$
|
6,163
|
|
|
(25
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP diluted earnings per share
|
|
|
$
|
0.07
|
|
|
$
|
0.10
|
|
|
(30
|
%)
|
|
$
|
0.15
|
|
|
$
|
0.20
|
|
|
(25
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $0.04 and $0.09 for the three and six months ended
October 31, 2018, respectively. Diluted per share for Class B shares
under the two-class method are $0.08 and $0.17 for the three and six
months ended October 31, 2017, respectively.
|
|
(2) - Tax affected using the effective tax rate for the three and
six month periods ended October 31, 2018 and 2017.
|
|
nm - not meaningful
|
|
|
|
|
AMERICAN SOFTWARE, INC.
|
Consolidated Balance Sheet Information
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
October 31,
|
|
|
April 30,
|
|
|
|
|
|
2018
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
|
|
|
$
|
50,933
|
|
|
$
|
52,794
|
Short-term Investments
|
|
|
|
|
|
29,816
|
|
|
|
26,121
|
Accounts Receivable:
|
|
|
|
|
|
|
|
|
Billed
|
|
|
|
|
|
17,427
|
|
|
|
18,643
|
Unbilled
|
|
|
|
|
|
3,104
|
|
|
|
3,375
|
Total Accounts Receivable, net
|
|
|
|
|
|
20,531
|
|
|
|
22,018
|
Prepaids & Other
|
|
|
|
|
|
6,568
|
|
|
|
6,592
|
Current Assets
|
|
|
|
|
|
107,848
|
|
|
|
107,525
|
|
|
|
|
|
|
|
|
|
Investments - Non-current
|
|
|
|
|
|
1,925
|
|
|
|
8,893
|
|
|
|
|
|
|
|
|
|
PP&E, net
|
|
|
|
|
|
3,609
|
|
|
|
3,034
|
Capitalized Software, net
|
|
|
|
|
|
9,618
|
|
|
|
9,728
|
Goodwill
|
|
|
|
|
|
25,888
|
|
|
|
25,888
|
Other Intangibles, net
|
|
|
|
|
|
3,926
|
|
|
|
5,120
|
Other Non-current Assets
|
|
|
|
|
|
3,776
|
|
|
|
2,777
|
Total Assets
|
|
|
|
|
$
|
156,590
|
|
|
$
|
162,965
|
|
|
|
|
|
|
|
|
|
Accounts Payable
|
|
|
|
|
$
|
1,475
|
|
|
$
|
1,974
|
Accrued Compensation and Related costs
|
|
|
|
|
|
2,829
|
|
|
|
6,310
|
Dividend Payable
|
|
|
|
|
|
3,405
|
|
|
|
3,367
|
Other Current Liabilities
|
|
|
|
|
|
1,362
|
|
|
|
1,246
|
Deferred Revenues - Current
|
|
|
|
|
|
29,395
|
|
|
|
33,226
|
Current Liabilities
|
|
|
|
|
|
38,466
|
|
|
|
46,123
|
|
|
|
|
|
|
|
|
|
Deferred Revenues - Non-current
|
|
|
|
|
|
-
|
|
|
|
147
|
Deferred Tax Liability - Non-current
|
|
|
|
|
|
2,929
|
|
|
|
2,615
|
Other Long-term Liabilities
|
|
|
|
|
|
1,107
|
|
|
|
1,496
|
Long-term Liabilities
|
|
|
|
|
|
4,036
|
|
|
|
4,258
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
|
|
|
42,502
|
|
|
|
50,381
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
114,088
|
|
|
|
112,584
|
|
|
|
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity
|
|
|
|
|
$
|
156,590
|
|
|
$
|
162,965
|
|
|
|
|
AMERICAN SOFTWARE, INC.
|
Condensed Consolidated Cashflow Information
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
October 31,
|
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
|
$
|
4,802
|
|
|
|
$
|
520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized computer software development costs
|
|
|
|
|
|
|
(2,088
|
)
|
|
|
|
(2,617
|
)
|
|
Purchases of property and equipment, net of disposals
|
|
|
|
|
|
|
(894
|
)
|
|
|
|
(212
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
|
|
(2,982
|
)
|
|
|
|
(2,829
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
|
|
|
|
(6,767
|
)
|
|
|
|
(6,529
|
)
|
|
Proceeds from exercise of stock options
|
|
|
|
|
|
|
3,086
|
|
|
|
|
4,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
|
|
|
(3,681
|
)
|
|
|
|
(2,450
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
|
|
|
(1,861
|
)
|
|
|
|
(4,759
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
|
|
52,794
|
|
|
|
|
66,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
|
$
|
50,933
|
|
|
|
$
|
61,242
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181129005685/en/
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