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ATLANTA--(BUSINESS WIRE)--Nov 17, 2022--
American Software, Inc. (NASDAQ: AMSWA) today reported preliminary financial results for the second quarter of fiscal year 2023.
Key Second Quarter Financial Highlights:
Key Fiscal 2023 Year to Date Financial Highlights:
Key Second Quarter of Fiscal Year 2023 highlights:
Clients & Channels
Company & Technology
The overall financial condition of the Company remains strong, with cash and investments of approximately $106.8 million. During the second quarter of fiscal year 2023, the Company paid shareholder dividends of approximately $3.7 million.
“We were pleased to see our adjusted EBITDA margin expand sequentially and year-over-year to nearly 16% despite delayed project starts that impacted our revenue in Q2,” said Allan Dow, CEO and President of American Software. “Although we are adjusting our revenue guidance lower to account for these delays, we are increasing our adjusted EBITDA expectations to reflect the strong performance to date and a more measured pace of investment amid the current global economic environment.”
Fiscal Year 2023 Financial Outlook
About American Software, Inc.
Atlanta-based American Software, Inc. ( NASDAQ: AMSWA ), through its operating entity Logility delivers an innovative technical platform that enables enterprises to accelerate their digital supply chain transformation from product concept to client availability via the Logility® Digital Supply Chain Platform, a single platform spanning Product, Demand, Inventory, Supply, Sourcing, Deploy, Corporate Responsibility (ESG) and Network Optimization aligned with Integrated Business Planning.
Serving clients such as Big Lots, Carter’s, Destination XL, Hostess, Husqvarna Group, Jockey International, Johnson Controls, Parker Hannifin, Red Wing Shoe Company, Spanx, Trident Seafoods Corporation, and WEG; our solutions are marketed and sold through a direct sales team as well as an indirect global value-added reseller (“VAR”) distribution network.
Fueled by supply chain master data, allowing for the automation of critical business processes through the application of artificial intelligence and machine learning algorithms to a variety of internal and external data streams, the comprehensive Logility portfolio delivered in the cloud 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, network design and optimization (NDO), retail merchandise and assortment planning and allocation, product lifecycle management (PLM), sourcing management, vendor quality and compliance, and product traceability. For more information about Logility, please visit www.logility.com. Logility is a wholly-owned subsidiary and operating entity for American Software, Inc. (NASDAQ: AMSWA). You can learn more about American Software at www.amsoftware.com, or by calling (404) 364-7615 or emailing kliu@amsoftware.com.
Operating and Non-GAAP Financial Measures
The Company includes 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 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. EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest (loss)/income & other, net, and income tax expense. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest (loss)/income & other, net, income tax expense/(benefit) and non-cash stock-based compensation expense.
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 or performance to differ materially from what is anticipated by statements made herein. These factors include, but are not limited to, continuing U.S. and global economic uncertainty and the timing and degree of business recovery; the irregular pattern of the Company’s revenues; dependence on particular market segments or customers; competitive pressures; market acceptance of the Company’s products and services; technological complexity; undetected software errors; potential product liability or warranty claims; risks associated with new product development; the challenges and risks associated with integration of acquired product lines, companies and services; uncertainty about the viability and effectiveness of strategic alliances; the Company’s ability to satisfy in a timely manner all Securities and Exchange Commission (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; as well as a number of other risk factors that could affect the Company’s future performance. 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 SEC. For more information, contact: Kevin Liu, American Software, Inc., (626) 657-0013 or emailkliu@amsoftware.com.
Logility® is a registered trademark of Logility, Inc. Other products mentioned in this document are registered, trademarked or service marked by 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, | ||||||||||||||||||
2022 |
| 2021 |
| Pct Chg. |
| 2022 |
| 2021 |
| Pct Chg. | ||||||||||
| Revenues: | ||||||||||||||||||||
| Subscription fees | $ | 12,326 |
| $ | 10,361 | 19 | % | $ | 24,388 |
| $ | 20,149 |
| 21 | % | |||||
| License fees |
| 688 |
|
| 805 | (15 | %) |
| 1,008 |
|
| 1,297 |
| (22 | %) | |||||
| Professional services & other |
| 9,594 |
|
| 10,779 | (11 | %) |
| 19,603 |
|
| 20,308 |
| (3 | %) | |||||
| Maintenance |
| 8,830 |
|
| 9,266 | (5 | %) |
| 17,735 |
|
| 18,728 |
| (5 | %) | |||||
| Total Revenues |
| 31,438 |
|
| 31,211 | 1 | % |
| 62,734 |
|
| 60,482 |
| 4 | % | |||||
| Cost of Revenues: | ||||||||||||||||||||
| Subscription services |
| 4,059 |
|
| 3,404 | 19 | % |
| 7,677 |
|
| 6,628 |
| 16 | % | |||||
| License fees |
| 94 |
|
| 198 | (53 | %) |
| 183 |
|
| 357 |
| (49 | %) | |||||
| Professional services & other |
| 6,847 |
|
| 7,477 | (8 | %) |
| 14,151 |
|
| 14,487 |
| (2 | %) | |||||
| Maintenance |
| 1,577 |
|
| 1,746 | (10 | %) |
| 3,150 |
|
| 3,720 |
| (15 | %) | |||||
| Total Cost of Revenues |
| 12,577 |
|
| 12,825 | (2 | %) |
| 25,161 |
|
| 25,192 |
| 0 | % | |||||
| Gross Margin |
| 18,861 |
|
| 18,386 | 3 | % |
| 37,573 |
|
| 35,290 |
| 6 | % | |||||
| Operating expenses: | ||||||||||||||||||||
| Research and development |
| 4,364 |
|
| 4,278 | 2 | % |
| 8,818 |
|
| 8,702 |
| 1 | % | |||||
| Sales and marketing |
| 5,697 |
|
| 5,892 | (3 | %) |
| 11,609 |
|
| 12,012 |
| (3 | %) | |||||
| General and administrative |
| 6,001 |
|
| 5,476 | 10 | % |
| 11,766 |
|
| 10,010 |
| 18 | % | |||||
| Amortization of acquisition-related intangibles |
| 32 |
|
| 53 | (40 | %) |
| 56 |
|
| 106 |
| (47 | %) | |||||
| Total Operating Expenses |
| 16,094 |
|
| 15,699 | 3 | % |
| 32,249 |
|
| 30,830 |
| 5 | % | |||||
| Operating Earnings |
| 2,767 |
|
| 2,687 | 3 | % |
| 5,324 |
|
| 4,460 |
| 19 | % | |||||
| Interest (Loss)/Income & Other, Net |
| (145 | ) |
| 930 | nm |
| (26 | ) |
| 1,367 |
| nm | |||||||
| Earnings Before Income Taxes |
| 2,622 |
|
| 3,617 | (28 | %) |
| 5,298 |
|
| 5,827 |
| (9 | %) | |||||
| Income Tax Expense/(Benefit) |
| 541 |
|
| 303 | 79 | % |
| 1,084 |
|
| (434 | ) | nm | ||||||
| Net Earnings | $ | 2,081 |
| $ | 3,314 | (37 | %) | $ | 4,214 |
| $ | 6,261 |
| (33 | %) | |||||
| Earnings per common share: (1) | ||||||||||||||||||||
| Basic | $ | 0.06 |
| $ | 0.10 | (40 | %) | $ | 0.12 |
| $ | 0.19 |
| (37 | %) | |||||
| Diluted | $ | 0.06 |
| $ | 0.10 | (40 | %) | $ | 0.12 |
| $ | 0.18 |
| (33 | %) | |||||
| Weighted average number of common shares outstanding: | ||||||||||||||||||||
| Basic |
| 33,720 |
|
| 33,336 |
| 33,688 |
|
| 33,195 |
| |||||||||
| Diluted |
| 34,072 |
|
| 34,684 |
| 34,040 |
|
| 34,448 |
| |||||||||
| 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, | |||||||||||||||||||
2022 |
| 2021 |
| Pct Chg. |
| 2022 |
| 2021 |
| Pct Chg. | |||||||||||
| NON-GAAP Operating Earnings: | |||||||||||||||||||||
| Operating Earnings (GAAP Basis) | $ | 2,767 |
| $ | 2,687 |
| 3 | % | $ | 5,324 |
| $ | 4,460 |
| 19 | % | |||||
| Amortization of acquisition-related intangibles |
| 270 |
|
| 53 |
| 409 | % |
| 369 |
|
| 106 |
| 248 | % | |||||
| Stock-based compensation |
| 1,343 |
|
| 1,042 |
| 29 | % |
| 2,649 |
|
| 1,817 |
| 46 | % | |||||
| NON-GAAP Operating Earnings: |
| 4,380 |
|
| 3,782 |
| 16 | % |
| 8,342 |
|
| 6,383 |
| 31 | % | |||||
| Non-GAAP Operating Earnings, as a % of revenue |
| 14 | % |
| 12 | % |
| 13 | % |
| 11 | % | |||||||||
Second Quarter Ended |
| Six Months Ended | |||||||||||||||||||
October 31, |
| October 31, | |||||||||||||||||||
2022 |
| 2021 |
| Pct Chg. |
| 2022 |
| 2021 |
| Pct Chg. | |||||||||||
| NON-GAAP EBITDA: | |||||||||||||||||||||
| Net Earnings (GAAP Basis) | $ | 2,081 |
| $ | 3,314 |
| (37 | %) | $ | 4,214 |
| $ | 6,261 |
| (33 | %) | |||||
| Income Tax Expense/(Benefit) |
| 541 |
|
| 303 |
| 79 | % |
| 1,084 |
|
| (434 | ) | nm | ||||||
| Interest (Loss)/Income & Other, Net |
| 145 |
|
| (930 | ) | nm |
| 26 |
|
| (1,367 | ) | nm | |||||||
| Amortization of intangibles |
| 532 |
|
| 860 |
| (38 | %) |
| 1,088 |
|
| 1,816 |
| (40 | %) | |||||
| Depreciation |
| 301 |
|
| 179 |
| 68 | % |
| 513 |
|
| 353 |
| 45 | % | |||||
| EBITDA (earnings before interest, taxes, depreciation and amortization) |
| 3,600 |
|
| 3,726 |
| (3 | %) |
| 6,925 |
|
| 6,629 |
| 4 | % | |||||
| Stock-based compensation |
| 1,343 |
|
| 1,042 |
| 29 | % |
| 2,649 |
|
| 1,817 |
| 46 | % | |||||
| Adjusted EBITDA | $ | 4,943 |
| $ | 4,768 |
| 4 | % | $ | 9,574 |
| $ | 8,446 |
| 13 | % | |||||
| EBITDA, as a percentage of revenues |
| 11 | % |
| 12 | % |
| 11 | % |
| 11 | % | |||||||||
| Adjusted EBITDA, as a percentage of revenues |
| 16 | % |
| 15 | % |
| 15 | % |
| 14 | % | |||||||||
Second Quarter Ended |
| Six Months Ended | |||||||||||||||||||
October 31, |
| October 31, | |||||||||||||||||||
2022 |
| 2021 |
| Pct Chg. |
| 2022 |
| 2021 |
| Pct Chg. | |||||||||||
| NON-GAAP EARNINGS PER SHARE: | |||||||||||||||||||||
| Net Earnings (GAAP Basis) | $ | 2,081 |
| $ | 3,314 |
| (37 | %) | $ | 4,214 |
| $ | 6,261 |
| (33 | %) | |||||
| Amortization of acquisition-related intangibles (2) |
| 209 |
|
| 43 |
| 386 | % |
| 288 |
|
| 85 |
| 239 | % | |||||
| Stock-based compensation (2) |
| 1,041 |
|
| 836 |
| 25 | % |
| 2,066 |
|
| 1,456 |
| 42 | % | |||||
| Adjusted Net Earnings | $ | 3,331 |
| $ | 4,193 |
| (21 | %) | $ | 6,568 |
| $ | 7,802 |
| (16 | %) | |||||
| Adjusted non-GAAP diluted earnings per share | $ | 0.10 |
| $ | 0.12 |
| (17 | %) | $ | 0.19 |
| $ | 0.23 |
| (17 | %) | |||||
Second Quarter Ended |
| Six Months Ended | |||||||||||||||||||
October 31, |
| October 31, | |||||||||||||||||||
2022 |
| 2021 |
| Pct Chg. |
| 2022 |
| 2021 |
| Pct Chg. | |||||||||||
| NON-GAAP Earnings Per Share | |||||||||||||||||||||
| Net Earnings (GAAP Basis) | $ | 0.06 |
| $ | 0.10 |
| (40 | %) | $ | 0.12 |
| $ | 0.18 |
| (33 | %) | |||||
| Amortization of acquisition-related intangibles (2) |
| 0.01 |
|
| - |
| - |
|
| 0.01 |
|
| - |
| - |
| |||||
| Stock-based compensation (2) |
| 0.03 |
|
| 0.02 |
| 50 | % |
| 0.06 |
|
| 0.05 |
| 20 | % | |||||
| Adjusted Net Earnings |
| 0.10 |
| $ | 0.12 |
| (17 | %) |
| 0.19 |
| $ | 0.23 |
| (17 | %) | |||||
Second Quarter Ended |
| Six Months Ended | |||||||||||||||||||
October 31, |
| October 31, | |||||||||||||||||||
2022 |
| 2021 |
| Pct Chg. |
| 2022 |
| 2021 |
| Pct Chg. | |||||||||||
| Amortization of acquisition-related intangibles | |||||||||||||||||||||
| Cost of Subscription Services | $ | 238 |
| $ | - |
| - |
| $ | 313 |
| $ | - |
| - |
| |||||
| Operating expenses |
| 32 |
|
| 53 |
| (40 | %) |
| 56 |
|
| 106 |
| (47 | %) | |||||
| Total amortization of acquisition-related intangibles | $ | 270 |
| $ | 53 |
| 409 | % | $ | 369 |
| $ | 106 |
| 248 | % | |||||
| Stock-based compensation | |||||||||||||||||||||
| Cost of revenues | $ | 67 |
| $ | 68 |
| (1 | %) | $ | 108 |
| $ | 129 |
| (16 | %) | |||||
| Research and development |
| 143 |
|
| 99 |
| 44 | % |
| 292 |
|
| 167 |
| 75 | % | |||||
| Sales and marketing |
| 198 |
|
| 174 |
| 14 | % |
| 416 |
|
| 317 |
| 31 | % | |||||
| General and administrative |
| 935 |
|
| 701 |
| 33 | % |
| 1,833 |
|
| 1,204 |
| 52 | % | |||||
| Total stock-based compensation | $ | 1,343 |
| $ | 1,042 |
| 29 | % | $ | 2,649 |
| $ | 1,817 |
| 46 | % |
| (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 $0.06 and $0.12 for the three and six months ended October 31, 2022, respectively. Diluted per share for Class B shares under the two-class method are $0.10 and $0.19 for the three and six months ended October 31, 2021, respectively. |
| (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and six month periods ended October 31, 2022 of 22.5% and 22.0% and 19.8% for the three and six month periods ended October 31, 2021, respectively. |
| nm- not meaningful |
| AMERICAN SOFTWARE, INC. | |||||
| Consolidated Balance Sheet Information | |||||
| (In thousands) | |||||
| (Unaudited) | |||||
October 31, |
| April 30, | |||
2022 |
| 2022 | |||
| Cash and Cash Equivalents | $ | 83,962 | $ | 110,690 | |
| Short-term Investments |
| 22,805 |
| 16,826 | |
| Accounts Receivable: | |||||
| Billed |
| 24,127 |
| 20,619 | |
| Unbilled |
| 2,690 |
| 2,989 | |
| Total Accounts Receivable, net |
| 26,817 |
| 23,608 | |
| Prepaids & Other |
| 5,384 |
| 5,067 | |
| Current Assets |
| 138,968 |
| 156,191 | |
| PP&E, net |
| 5,847 |
| 3,654 | |
| Capitalized Software, net |
| 867 |
| 1,586 | |
| Goodwill |
| 29,558 |
| 25,888 | |
| Other Intangibles, net |
| 2,609 |
| 147 | |
| Deferred Sales Commissions - Non-current |
| 1,702 |
| 2,050 | |
| Lease Right of Use Assets |
| 646 |
| 935 | |
| Other Non-current Assets |
| 2,815 |
| 2,384 | |
| Total Assets | $ | 183,012 | $ | 192,835 | |
| Accounts Payable | $ | 2,485 | $ | 2,506 | |
| Accrued Compensation and Related costs |
| 3,723 |
| 6,918 | |
| Dividend Payable |
| 3,711 |
| 3,700 | |
| Operating Lease Obligation - Current |
| 441 |
| 541 | |
| Other Current Liabilities |
| 2,361 |
| 1,871 | |
| Deferred Revenues - Current |
| 36,008 |
| 41,953 | |
| Current Liabilities |
| 48,729 |
| 57,489 | |
| Operating Lease Obligation - Non-current |
| 250 |
| 461 | |
| Deferred Tax Liability - Non-current |
| - |
| 1,772 | |
| Other Long-term Liabilities |
| 465 |
| 137 | |
| Long-term Liabilities |
| 715 |
| 2,370 | |
| Total Liabilities |
| 49,444 |
| 59,859 | |
| Shareholders' Equity |
| 133,568 |
| 132,976 | |
| Total Liabilities & Shareholders' Equity | $ | 183,012 | $ | 192,835 |
| AMERICAN SOFTWARE, INC. | |||||||
| Condensed Consolidated Cashflow Information | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
Six Months Ended | |||||||
October 31, | |||||||
2022 |
| 2021 | |||||
| Net cash provided by operating activities | $ | (11,261 | ) | $ | 7,712 |
| |
| Purchases of property and equipment, net of disposals |
| (2,706 | ) |
| (615 | ) | |
| Purchase of business, net of cash acquired |
| (6,500 | ) |
| - |
| |
| Net cash used in investing activities |
| (9,206 | ) |
| (615 | ) | |
| Dividends paid |
| (7,406 | ) |
| (7,268 | ) | |
| Proceeds from exercise of stock options |
| 1,145 |
|
| 5,714 |
| |
| Net cash used in financing activities |
| (6,261 | ) |
| (1,554 | ) | |
| Net change in cash and cash equivalents |
| (26,728 | ) |
| 5,543 |
| |
| Cash and cash equivalents at beginning of period |
| 110,690 |
|
| 88,658 |
| |
| Cash and cash equivalents at end of period | $ | 83,962 |
| $ | 94,201 |
|
View source version on businesswire.com:https://www.businesswire.com/news/home/20221117006058/en/
CONTACT: Financial Information Press Contact:Vincent C. Klinges
Chief Financial Officer
American Software, Inc.
(404) 264-5477
KEYWORD: GEORGIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: LOGISTICS/SUPPLY CHAIN MANAGEMENT DATA MANAGEMENT TRANSPORT TECHNOLOGY SOFTWARE
SOURCE: American Software, Inc.
Copyright Business Wire 2022.
PUB: 11/17/2022 04:05 PM/DISC: 11/17/2022 04:06 PM
http://www.businesswire.com/news/home/20221117006058/en