Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported record total revenue of $148.4 million for the first quarter ended March 31, 2019, applying the new revenue recognition standard retrospectively. GAAP diluted earnings per share for Q1 2019 was $0.32 compared to $0.33 in Q1 2018. Non-GAAP adjusted diluted earnings per share for Q1 2019 was $0.41 compared to $0.37 in Q1 2018.
“We’re very pleased with our start to 2019, delivering record Q1 total revenue and solid earnings per share growth on strong software and global services revenue. Market leading investments in our suite of Manhattan Active™ omnichannel, inventory and supply chain solutions are fueling demand and revenue growth,” said Eddie Capel, Manhattan Associates President and CEO. “Omnichannel, inventory management and supply chain evolution in our target markets have created an acute need for Manhattan’s software, enabling our clients to accelerate growth and Push Possible®. We remain committed to investing in innovation and are bullish on our growth opportunity in 2019 and beyond,” added Mr. Capel.
FIRST QUARTER 2019 FINANCIAL SUMMARY:
- Consolidated total revenue was $148.4 million in Q1 2019, compared to $130.6 million in Q1 2018. License revenue was $12.4 million in Q1 2019, compared to $7.6 million in Q1 2018. Cloud subscription revenue was $7.9 million in Q1 2019, compared to $4.5 million in Q1 2018. Service revenue was $88.6 million in in Q1 2019, compared to $78.8 million in Q1 2018.
- GAAP diluted earnings per share was $0.32 in Q1 2019 compared to $0.33 in Q1 2018.
- Adjusted diluted earnings per share, a non-GAAP measure, was $0.41 in Q1 2019, compared to $0.37 in Q1 2018.
- GAAP operating income was $28.3 million in Q1 2019, compared to $27.8 million in Q1 2018.
- Adjusted operating income, a non-GAAP measure, was $35.6 million in Q1 2019, compared to $32.3 million in Q1 2018.
- Cash flow from operations was $35.2 million in Q1 2019, compared to $51.3 million in Q1 2018. Days Sales Outstanding was 65 days at March 31, 2019, compared to 64 days at December 31, 2018.
- Cash and investments totaled $104.9 million at March 31, 2019, compared to $100.6 million at December 31, 2018.
- During the three months ended March 31, 2019, the Company repurchased 463,680 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $24.9 million. In April 2019, our Board authorized the Company to repurchase up to an aggregate of $50 million of the Company’s common stock.
Manhattan Associates provides the following updated revenue, operating margin and diluted earnings per share guidance for the full year 2019:
Manhattan Associates currently intends to publish in each quarterly earnings release certain expectations with respect to future financial performance. Those statements, including the guidance provided above, are forward looking. Actual results may differ materially. Those statements, including the guidance provided above, do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release.
Manhattan Associates will make its earnings release and published expectations available on its website (www.manh.com). Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance above, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.
The Company’s conference call regarding its first quarter financial results will be held today, April 23, 2019, at 4:30 p.m. Eastern Time. We invite investors to a live webcast of the conference call through the Investor Relations section of Manhattan Associates’ website at www.manh.com. To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software.
Those who cannot listen to the live broadcast may access a replay shortly after the call by dialing +1.855.859.2056 in the U.S. and Canada, or +1.404.537.3406 outside the U.S., and entering the conference identification number 1797903 or via the web at www.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates’ second quarter 2019 earnings release.
GAAP VERSUS NON-GAAP PRESENTATION
The Company provides adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share in this press release as additional information regarding the Company’s historical and projected operating results. These measures are not in accordance with – or alternatives to – GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare the Company’s results and guidance, because the measures provide supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the three months ended March 31, 2019.
Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation, acquisition-related costs and the amortization of these costs, and (from time to time) restructuring charges – all net of income tax effects, and the impact of the Tax Cuts and Jobs Act. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.