Manhattan Associates Reports Record Revenue of $38.4 Million
Software Fees Increase 41%, Marking the Eighth Consecutive Quarter of Meeting or Exceeding First Call Consensus Earnings Per Share Estimates
ATLANTA – October 18, 2001 – Manhattan Associates, Inc., (Nasdaq: MANH), a global leader in providing supply chain execution and collaborative commerce solutions, today announced record results for the third quarter ended September 30, 2001. These results mark the eighth consecutive quarter 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:
Software fees for the third quarter ended September 30, 2001 were $9.2 million, an increase of 41% over the third quarter of 2000.
Services revenue for the third quarter ended September 30, 2001 was a record $24.7 million, an increase of 16% over the third quarter of 2000.
Adjusted net income for the third quarter of 2001, which excludes the amortization of acquisition-related intangibles, was $.18 per fully diluted share.
Cash flow from operations for the third quarter of 2001 was $10.3 million.
Cash and short-term investments increased $9.4 million, or 11%, during the quarter to $94.2 million. Cash and short-term investments have increased $26.5 million, or 39%, since the beginning of the year.
Days Sales Outstanding (DSO) declined to 67 days at September 30, 2001, down from 69 days at June 30, 2001 and 71 days at December 31, 2000, reflecting the general health of accounts receivable and overall customer satisfaction.
Announced a $10 million stock buy-back program, acquiring 65,000 shares of Company stock for $885,000 at prices between $12.95 and $14.54 during the third quarter.
“Our results this quarter continue building on our momentum as the leader in our space,” said Richard Haddrill, Manhattan Associates’ CEO and president. “Our customers continue to recognize the strong ROI and increased efficiencies our technology provides, which are especially needed in a slow economy. We are pleased with our results, which continue to reflect the solid financial health of the Company.”
For the three months and nine months ended September 30, 2001, total revenue was $38.4 million and $110.6 million, respectively, and diluted net income per share was $0.15 and $0.45, respectively.
Key achievements for Manhattan Associates include:
Signed key new customers including Mary Kay Incorporated, RGH Enterprises and Charlotte Russe. Manhattan Associates continued to further its partnership with many existing clients, including Kmart, Hagemeyer and KBKids.com.
Selected by Forbes Magazine as one of the 200 best small companies in America, with a ranking of No.23 and the only ranked supply chain management technology provider. Rankings are based on six equally weighted metrics -- return on equity, sales and earnings-per-share growth measured over two periods of time: the past five years and the most recent four quarters.
Announced the release of infolink™ 2001R1. This new version of infolink provides real-time connectivity and integration to a user`s factories and other supply chain participants. Recent customers of infolink™ 2001R1 include ARAMARK, Genesco and Too, Inc.
Formalized a corporate alliance with Siemens Dematic, a world leader of automated material handling equipment. Under terms of the alliance, both companies will jointly develop and support a standard tool to integrate their solutions, resulting in faster implementations and lowered risk. Both companies will also share business leads.
Signed a joint selling agreement with Vastera, a leading provider of global trade management solutions. In addition to selling each other’s solutions, the partnership calls for both companies to jointly develop an interface to seamlessly integrate their complementary solutions.
Hosted Momentum Europe 2001, Manhattan Associates’ third annual European user conference. This year’s event attracted a total of 175 attendees, more than doubling the number of attendees at last year’s conference and reflecting the growing brand of Manhattan Associates in the international marketplace.
Hosted Partner Days 2001, Manhattan Associates’ second annual partner conference. More than 60 Manhattan Associates Partner Program (MAP2) participants, including software providers, consulting companies, third-party integrators and hardware/material handling equipment providers, attended the two-day conference to learn more about Manhattan Associates’ strategic direction, solutions and partner resources.
Business Outlook
Below we make a few statements regarding our current expectations for earnings per share for the fourth quarter of 2001. These statements are forward-looking, and actual results may differ materially. These statements do not reflect the potential impact of any mergers, acquisitions or other business combinations that may be completed after the date of this release. Manhattan Associates will keep its earnings release publicly available on its Web site (www.manh.com). Prior to the start of Manhattan Associates’ Quiet Period discussed below, the public can continue to rely on the expectations published in its earnings release as being its current expectations on matters covered, unless Manhattan Associates publishes a notice stating otherwise. Towards the end of each fiscal quarter, Manhattan Associates will have a “Quiet Period” when Manhattan Associates and its representatives will not comment concerning previously published financial expectations, and we disclaim any obligation to update during the Quiet Period. The public should not rely on previously published expectations during the Quiet Period. Manhattan Associates’ Quiet Period at the end of the fourth quarter will be from December 15, 2001 until the earnings are released, currently scheduled for early February 2002.
For the quarter ending December 31, 2001, Manhattan Associates currently expects to achieve earnings, excluding the amortization of acquisition-related intangibles, in the range of $0.17 to $0.21 per fully diluted share. These expectations assume that the current general economic environment will improve modestly over the balance of the year.
The current uncertainty in the economy has limited our ability to provide 2002 financial guidance at this time. Manhattan Associates will disseminate financial guidance when and if the Company is better positioned to provide such guidance.
About Manhattan Associates, Inc.
Manhattan Associates, Inc. is a global leader in providing supply chain execution and collaborative commerce solutions. These solutions leverage state-of-the-art technologies, innovative practices and the Company’s 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, suppliers and retailers. For more information about Manhattan Associates, telephone 770.955.7070 or visit www.manh.com.
The Company`s Q3 conference call regarding this press release is being held today, October 18, 2001, at 4:30 p.m. EDT. Investors are invited to listen to a live Web cast of the conference call through the investor relations section of the Manhattan Associates Web site, http://www.manh.com. To listen to the live Web cast, please go to the Web site at least 15 minutes early to download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call by dialing 800-633-8284, reservation number 19837514, or via http://www.manh.com . The phone replay will be available for two weeks after the call and the Internet broadcast will be available until Manhattan`s next earnings release.
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. The important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include but are not limited to delays in product development, undetected software errors, competitive pressures, technical difficulties, market acceptance, availability of technical personnel, changes in customer requirements, continued reduction in the pace of IT spending, and general economic conditions including further disruptions and decreased visibility into future revenue growth. 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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