Manhattan Associates Announces Record Adjusted Earnings of $0.20 per Share
ATLANTA, Feb. 7 --
Manhattan Associates, Inc., (Nasdaq: MANH), the global leader in extended
supply chain execution solutions, today announced adjusted earnings of $0.20
per fully diluted share, which excludes the after-tax effects of the
amortization of acquisition-related intangibles and the unusual allowance
against revenues from Kmart Corporation (the "Kmart allowance") due to their
January 22, 2002 filing under Chapter 11 of the U.S. Bankruptcy Code.
Excluding the impact of the Kmart allowance, Manhattan Associates posted year-
over-year increases in both its earnings and core revenue drivers of software
license fees and services fees.
Excluding the Kmart allowance for the fourth quarter ended December 31,
2001: revenue was a record $45.0 million, an increase of 23% from revenue of
$36.4 million for the fourth quarter ended December 31, 2000; software fees
were $9.0 million compared to $8.9 million for the fourth quarter of 2000;
services revenue was a record $25.4 million, an increase of 10% over the
fourth quarter of 2000; and hardware revenue was $10.5 million, an increase of
140% from hardware revenue of $4.4 million for the fourth quarter of 2000.
Excluding the Kmart allowance and the amortization of acquisition-related
intangibles for the fourth quarter ended December 31, 2001, adjusted net
income for the quarter ended December 31, 2001 increased to a record $6.1
million or $0.20 per fully diluted share.
Excluding the Kmart allowance and the amortization of acquisition-related
intangibles for the year ended December 31, 2001: revenue was $155.6 million,
an increase of 17% from revenue of $133.1 million; and core revenue drivers,
which does not include hardware, were $132.9 million, an increase of 24% over
the year 2000. For the year ended December 31, 2001, adjusted net income was
$22.2 million or $0.72 per fully diluted share, as compared to adjusted net
income of $18.9 million or $0.62 per fully diluted share for the year ended
December 31, 2000.
Including the Kmart allowance and the amortization of acquisition-related
intangibles for the fourth quarter ended December 31, 2001: revenue was $40.6
million, an increase of 12% over the fourth quarter of 2000; and net income
was $2.5 million or $0.08 per fully diluted share. Including the Kmart
allowance, the amortization of acquisition-related intangibles and the write
off of R&D (in 2000) for the year ended December 31, 2001: revenue was $151.3
million, an increase of 14% over the prior year; and net income was $16.2
million or $0.53 per fully diluted share, the same as 2000.
As of January 22, 2002, the amounts due from Kmart were approximately $5.3
million, including approximately $4.3 million related to 2001. As a result,
the Company recorded an allowance of $4.3 million against revenues in the
fourth quarter that resulted in an after-tax reduction to net income of $2.7
million for the fourth quarter and year ended December 31, 2001.
"Overall, we are very pleased with our results this quarter. Despite the
negative impact of our Kmart exposure, the results are evidence of our
financial health and our ability to continue to execute and lead in this
marketplace," said Manhattan Associates President and CEO Richard Haddrill.
Other key quarterly and year-end highlights for Manhattan Associates
include:
* Cash and short-term investments increased by $10 million, or 11%,
during the quarter to $104.2 million. Cash and short-term investments
have increased $36.5 million, or 54%, since the beginning of 2001.
* Days Sales Outstanding (DSO), excluding the effect of the $4.3 million
allowance for the Kmart revenues, declined to 63 days at December 31,
2001, down from 67 days at September 30, 2001 and 71 days at December
31, 2000, reflecting the general health of accounts receivable and
overall customer satisfaction.
* International revenue for the year ended December 31, 2001 was $26.1
million as compared to $14.9 million for the year ended December 31,
2000, representing an increase of 75%. Manhattan Associates now has an
international headcount of approximately 100.
* Signed key new customers in the quarter including Deschenes Group, Sara
Lee Food Companies, Wolverine Worldwide, Inc., and American Italian
Pasta Company.
* Manhattan Associates continued to further its partnership with many
existing clients, including Cost Plus and Foot Locker, Inc.
* Signed four new PkMS Pronto customers in the quarter including Buyers
Products Company, Mary Meyer Corporation and Langham, which brings the
total number of Pronto customers to 13.
* Signed five new MA Collaborate customers, including Corporate Express
and Wincanton Logistics, which brings the total number of infolink
customers to 25.
* Completed the professional translation of the Company`s flagship
product PkMS into Japanese, Spanish, German and French and released a
fully Unicode solution to support global customers demanding both
single-byte and multi-byte language sets configured at the user.
* Established a center of expertise (COE) in Utrecht, The Netherlands,
which has capacity for 80 employees. The Company anticipates opening
additional offices in Germany and France in Q3 and Q4 of 2002.
* Announced the formation of a representative office in Japan, which
marks the Company`s formal entrance into the Japanese market. Located
in Tokyo, the center of expertise (COE) will provide support for
Manhattan Associates` customers and partners in Japan and also support
the Company`s continued investments in Australia and Asia-Pacific.
Business Outlook for 2001
Manhattan Associates currently intends to publish in each quarterly
earnings release its expectations for the next quarter and the related fiscal
year with respect to revenues and earnings per share. The following
statements regarding revenues and earnings are based on current expectations.
These statements are forward-looking. Actual results may differ materially,
especially in an 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,
2002, 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 third or fourth week of April 2002.
For the fiscal year ending December 31, 2002, Manhattan Associates
currently expects to achieve adjusted earnings in the range of $0.83 to $0.93
per fully diluted share. For the quarter ending March 31, 2002, Manhattan
Associates currently expects to achieve adjusted earnings in the range of
$0.17 to $0.20 per fully diluted share. These expectations assume that the
current general economic environment will improve modestly over the balance of
the year.
About Manhattan Associates, Inc.
Manhattan Associates, Inc., is the global leader in providing extended
supply chain execution solutions. We enable operational excellence through
real-time collaboration, execution and optimization. Our solutions leverage
state-of-the-art technologies, innovative practices and our domain expertise
to enhance performance, profitability and competitive advantage. Manhattan
Associates has licensed more than 800 customers representing 1,100 facilities
worldwide, which include some of the world`s leading manufacturers,
distributors and retailers. For more information about Manhattan Associates
telephone 770.955.7070 or visit www.manh.com
This press release may contain "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 delays in product
development, undetected software errors, competitive pressures, technical
difficulties, market acceptance, availability of technical personnel, changes
in customer requirements and general economic conditions. Additional factors
are set forth in "Safe Harbor Compliance Statement for Forward-Looking
Statements" included as Exhibit 99.1 to the Company`s Annual Report on Form
10-K for the year ended December 31,2000. 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.
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