Marking the Thirteenth Consecutive Quarter of Meeting Or Exceeding Consensus Earnings Per Share Estimates
ATLANTA, Feb. 11 -- Manhattan Associates, Inc., (Nasdaq: MANH), the global leader in providing extended supply chain execution solutions, today announced record results for the fourth quarter ended December 31, 2002. These results mark the thirteenth consecutive quarter that Manhattan Associates has met or exceeded the First Call consensus earnings per share estimates of the financial analysts covering the Company.
Key quarterly financial highlights for Manhattan Associates include:
* Adjusted net income, which excludes the Kmart recovery, in-process research and development charge and the amortization of acquisition-related intangible assets, net of taxes, was a record $7.0 million for the quarter, or $0.23 per fully diluted share, an increase of 16% over the fourth quarter of 2001. GAAP net income was a record $0.25 per fully diluted share.
* Software license fees for the quarter ended December 31, 2002 were a record $10.6 million, an increase of 17% over the fourth quarter of 2001.
* Services revenue for the quarter ended December 31, 2002 was $27.6 million, an increase of 8% over the fourth quarter of 2001.
* International revenues reached a record 23% of total revenues for the fourth quarter of 2002.
* Total cash and short-term investments were $121.9 million at December 31, 2002, up 17% from December 31, 2001. The December 31, 2002 balance reflects the payment associated with the Logistics.com acquisition of approximately $21.2 million in late December. Days Sales Outstanding(DSOs) remained strong at 65 days, which is down two days from September 31, 2002.
* The Company announced that in late September 2002, the United States Bankruptcy Court for the Northern District of Illinois Eastern Division authorized Kmart`s request to assume the software license, services, support and enhancement agreement it has with the Company. With the appeals process completed in October, Manhattan Associates reversed approximately $2.3 million of its related reserve in the fourth quarter of 2002.
For the year ended December 31, 2002, total revenues were a record $175.7 million, with core revenue, which excludes hardware resales, increasing approximately 13% over the prior year. Net income was $25.2 million, or $0.83 per fully diluted share for the year ended December 31, 2002, an increase of 56% over 2001. Adjusted net income for the year ended December 31, 2002, which excludes the Kmart recovery, in-process research and development charge and the amortization of acquisition-related intangible assets, net of taxes, was $25.8 million, or $0.85 per fully diluted share, an increase of 18% over the prior year`s fully diluted earnings per share.
"We are extremely pleased with our performance both this quarter and for the year. We enter 2003 poised for more success. The acquisition of Logistics.com, the success of our newer products, our expanded global reach, our strong base of satisfied customers and our new partnerships all will contribute to an increased leadership position for our Company in 2003," said Richard Haddrill, Manhattan Associates` president and CEO.
Other key quarterly highlights for Manhattan Associates include the following:
* Signed key new customers in the quarter including Office Depot; Matalan Retail Limited; Pearl, Incorporated; Garden Ridge; Eckerd Corporation; NV Warehouse, Inc. (Nautica); and Okaidi France.
* Expanded our partnership with many existing clients including Newell Rubbermaid, Inc.; Hagemeyer N.V.; Umbra, Inc.; and The Boots Company plc.
* Acquired certain Logistics.com assets from Internet Capital Group for a one-time cash payment of approximately $21.2 million. This acquisition will greatly expand Manhattan Associates` existing transportation management solutions and further strengthen the Company`s leadership position in the global supply chain execution market. With this acquisition, Manhattan Associates gains 86 employees in the Boston area and 70 customers. These customers include The Quaker Oats Company, Honeywell and Danaher Corporation as well as other Fortune 500 companies in verticals such as consumer goods, food/grocery, high tech, retail and industrial. Additionally, Logistics.com works with most of the leading motor carriers like Swift Transportation Company, Inc., and J.B. Hunt Transport Services.
* Completed 165 customer go lives of the Company`s supply chain execution systems during 2002. Manhattan Associates` ability to complete an average of one go-live every two business days is a reflection of the Company`s strong technical and service organizations.
* Announced it has finalized a reseller agreement with Tokyo-based Site Design, a leading provider of Web-based order management and fulfillment solutions. This alliance calls for Site Design to be the master distributor of PkMS in Japan, the world`s second largest economy.
* Selected by the editors of Intelligent Enterprise Magazine as one of the 12 most influential IT solutions providers in the development of emerging "intelligent" enterprises. Manhattan Associates landed at No. 7 and was the only supply chain technology company included in the 2003 Dozen. Other companies in the top 12 include IBM Corp., Microsoft Corp., PeopleSoft Inc., and Oracle Corp.
Business Outlook for 2003
Manhattan Associates currently intends to publish, in each quarterly earnings release, certain expectations with respect to future financial performance. The following statements regarding future financial performance are based on current expectations. These statements are forward looking. Actual results may differ materially, especially in the current uncertain economic environment. These statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of this release.
Manhattan Associates will make its earnings release and published expectations available on its Web site (www.manh.com ). Beginning March 15, 2003, Manhattan Associates will observe a "Quiet Period" during which Manhattan Associates and its representatives will not comment concerning previously published financial expectations. Prior to the start of the Quiet Period, the public can continue to rely on the expectations published in this Business Outlook section as still being Manhattan Associates` current expectation on matters covered, unless Manhattan Associates publishes a notice stating otherwise. The public should not rely on previously published expectations during the Quiet Period, and Manhattan Associates disclaims any obligation to update any previously published financial expectations during the Quiet Period. The Quiet Period will extend until the date when Manhattan Associates` next quarterly earnings release is published, presently scheduled for the fourth week of April 2003.