American Software Reports Third Quarter of Fiscal Year 2021 Results

first_img 14,326 32,485 (16 Total stock-based compensation %) Pinterest 476 ATLANTA–(BUSINESS WIRE)–Feb 24, 2021– American Software, Inc. (NASDAQ: AMSWA) today reported preliminary financial results for the third quarter of fiscal year 2021. Key Third Quarter Financial Highlights:Subscription fees were $7.5 million for the quarter ended January 31, 2021, a 29% increase compared to $5.8 million for the same period last year, while Software license revenues were $0.5 million, an 86% decrease compared to $3.7 million for the same period last year, reflecting our continued transition to the Software as a Service (SaaS) engagement model.Cloud Services Annual Contract Value (ACV) increased approximately 24% to $31.6 million as of the quarter ended January 31, 2021 compared to $25.5 million as of the same period of the prior year.Total revenues for the quarter ended January 31, 2021 decreased 10% to $27.7 million, compared to $30.6 million for the same period of the prior year.Recurring revenue streams for Maintenance and Cloud Services were 64% of total revenues in the quarter ended January 31, 2021 compared to 54% in the same period of the prior year.Maintenance revenues for the quarter ended January 31, 2021 decreased 6% to $10.2 million compared to $10.8 million for the same period last year.Professional services and other revenues for the quarter ended January 31, 2021 decreased 8% to $9.5 million compared to $10.3 million for the same period last year.Operating earnings for the quarter ended January 31, 2021 decreased 67% to $0.9 million compared to $2.8 million for the same period last year.GAAP net earnings for the quarter ended January 31, 2021 decreased 30% to $2.3 million or $0.07 per fully diluted share compared to $3.3 million or $0.10 per fully diluted share for the same period last year.Adjusted net earnings for the quarter ended January 31, 2021, which excludes non-cash stock-based compensation expense and amortization of acquisition-related intangibles, decreased 26% to $3.0 million or $0.09 per fully diluted share compared to $4.0 million or $0.12 per fully diluted share for the same period last year.EBITDA decreased by 54% to $2.2 million for the quarter ended January 31, 2021 compared to $4.7 million for the same period last year.Adjusted EBITDA decreased by 45% to $2.9 million for the quarter ended January 31, 2021 compared to $5.3 million for the same period last year. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest (expense)/income & other, net, income tax expense and non-cash stock-based compensation expense. Key Fiscal 2021 Year to Date Financial Highlights:Subscription fees were $20.8 million for the nine months ended January 31, 2021, a 32% increase compared to $15.8 million for the same period last year, while Software license revenues were $1.8 million, a 73% decrease compared to $6.5 million for the same period last year, reflecting our continued transition to the SaaS engagement model.Total revenues for the nine months ended January 31, 2021 decreased 4% to $82.8 million compared to $86.2 million for the same period last year.Recurring revenue streams for Maintenance and Cloud Services were 62% of total revenues for the nine-month period ended January 31, 2021 compared to 56% in the same period of the prior year.Maintenance revenues for the nine months ended January 31, 2021 were $30.7 million, a 6% decrease compared to $32.7 million for the same period last year.Professional services and other revenues for the nine months ended January 31, 2021 decreased 6% to $29.6 million compared to $31.3 million for the same period last year.For the nine months ended January 31, 2021, the Company reported operating earnings of approximately $2.5 million compared to $4.5 million for the same period last year, a 45% decrease.GAAP net earnings were approximately $5.0 million or $0.15 per fully diluted share for the nine months ended January 31, 2021, a 19% decrease compared to $6.2 million or $0.19 per fully diluted share for the same period last year.Adjusted net earnings for the nine months ended January 31, 2021, which excludes stock-based compensation expense and amortization of acquisition-related intangibles, decreased 16% to $7.3 million or $0.22 per fully diluted share, compared to $8.6 million or $0.27 per fully diluted share for the same period last year.EBITDA decreased by 36% to $6.9 million for the nine months ended January 31, 2021 compared to $10.8 million for the same period last year.Adjusted EBITDA decreased 28% to $8.8 million for the nine months ended January 31, 2021 compared to $12.3 million for the nine months ended January 31, 2020. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense and non-cash stock-based compensation. The overall financial condition of the Company remains strong, with cash and investments of approximately $100.8 million and no debt as of January 31, 2021. During the third quarter of fiscal year 2021, the Company paid shareholder dividends of approximately $3.6 million. “Third quarter fiscal year 2021 saw continued adoption of our cloud services offerings with a 29% growth in Subscription Fees and a 24% increase in Annual Contract Value, reflecting the increasing momentum across the industry towards cloud-based supply chain transformation solutions,” said Allan Dow, CEO and president of American Software. “The impact of unforeseen risks over the last 12 months such as COVID-19 has driven increased interest in supply chain transformation initiatives, helping develop a strong pipeline for our innovative digital supply chain platform for the fourth quarter 2021 and beyond.” “This past quarter also brought renewed attention to the responsibility of supply chains to help ensure the ethical treatment of workers around the world following actions taken by the United States Customs and Border Protection to seize imports suspected of containing materials produced with forced labor,” continued Dow. “The release of our digital supply chain traceability solution highlights our commitment to help companies ensure transparency across their supply chains and exceed their corporate social responsibility goals.” Additional highlights for the third quarter of fiscal year 2021 include: Customers & ChannelsNotable new and existing customers placing orders with the Company in the third quarter include: Ansell Limited, Bruni Glass S.p.A., C&A Mexico, Cariuma Central Pte. Ltd., Color Image Apparel, Inc., Diversey, Inc., Dixon Valve & Coupling Company, LLC, Dyehard Fan Supply, LLC, Husqvarna AB, John Paul Richard, Rhone Apparel, Spanx, Stony Apparel Corp, The Echo Design Group, Topson Downs of California, Inc., Huhtamaki, Inc., Savant Technologies LLC, Sopal SA, Kyjen Company LLC, McIlhenny Company, and Tencate Geosynthetics. 8 %) (Unaudited) Consolidated Statements of Operations Information 5,002 8,362 1,411 126,692 1,510 564 32,651 Pct Chg. 5,173 %) 2,182 1,516 % $ 7,486 Twitter 5,802 2021 $ License fees %) (71 %) 763 $ 130 6,519 3,695 $ (461 511 4,413 Nine Months Ended %) 0.10 $ 2021 (8 Operating Lease Obligation – Current $ Stock-based compensation (2) $ 2020 $ (25 (Unaudited) (44 103 %) 1,309 $ (10,696 $ 2021 2020 (30 % 7,837 % (4 nm 0.10 Subscription services $ 1,976 (82 (9 0.07 30,600 $ 2021 January 31, 25 % 26 $ Operating Lease Obligation – Non-current 159 (62 %) Less: capitalized development 22,632 $ (50 Total Revenues 2021 14,890 Cash and cash equivalents at end of period 1,510 Amortization of acquisition-related intangibles Provision for doubtful accounts $ $ 5,608 2020 1 1,582 Net Earnings (GAAP Basis) (10 8 %) (54 44 0.02 $ %) 1,901 Operating expenses 17,442 13,278 %) 703 Amortization of acquisition-related intangibles 7,764 (78 $ Research and development 37 $ 5,519 47,250 0.10 Total amortization of acquisition-related intangibles 258 0.04 25 4,459 $ (604 Logility, Inc., a wholly owned subsidiary of the Company, invited attendees of the 2020 NextGen Supply Chain Conference to attend the session “Pushing the Efficient Inventory Frontier at The Kraft Heinz Company,” led by David Villalpando, senior analyst, logistics analytics at The Kraft Heinz Company. Company and TechnologyLogility and New Generation Computing, Inc. (NGC), a wholly owned subsidiary of the Company, announced the availability of a digital traceability solution which allows brand owners and retailers to document the chain of custody from component origin to importer of record. During the quarter, United States Customs and Border Protection announced a region-wide withhold release order on cotton products and tomato products produced in China’s Xinjiang Uyghur Autonomous Region. This new solution ensures that companies can prove their imports are free from suspect materials.Logility announced the company won IDC’s SaaS CSAT Award for Supply Chain Management Customer Satisfaction. Logility scored significantly higher than its peers’ average in areas such as low total cost of ownership (TCO), user experience, high availability, industry specialization, out-of-the-box availability, and availability of training. The announcement highlights relentless passion to deliver the highest level of customer service and to ensure its customers around the world can rely on the supply chain innovations the company brings to the market.Logility invited attendees to the webcast, “Thriving Through a Period of Disruption.” The discussion included industry experts David Maloney, editorial director, Supply Chain Quarterly, and Mac McGary, executive vice president, Logility. The live webcast explored how resilient planning helps protect organizations through disruptions and optimizes supply chains for a stronger outlook.NGC president Mark Burstein was accepted as a member of the Forbes Technology Council, an invitation-only community of leading technology executives. As a member of the Forbes Technology Council, Burstein shares his expertise on the intersection of supply chain technology in regular contributions to Forbes.NGC was named a leading retail software company in the RIS Software LeaderBoard for 2021. NGC was named among the top 20 vendors in 17 categories, including top three rankings in nine categories such as Overall Performance, Customer Satisfaction for Apparel Vendors, Return on Investment and Total Cost of Operation.Demand Management, Inc., a wholly owned subsidiary of Logility, was named one of Food Logistics ’ FL100+ Top Software and Technology Providers for 2020. This marked the company’s twelfth time receiving the award.Logility announced and invited attendees to the webcast, “Roadmap to Overcoming Five Obstacles to Achieving Multi-Echelon Inventory Optimization.” The discussion featured industry experts Martijn Lofvers, founder and chief trendwatcher, Supply Chain Media; Jonathan Jackman, vice president, EMEA, Logility; and Gokhan Usanmaz, product owner, innovation, Logility. This live event explored how Multi-Echelon Inventory Optimization (MEIO) can help improve customer service levels while removing excess and obsolete inventory. About American Software, Inc. Atlanta-based American Software, Inc. ( NASDAQ: AMSWA ), through its operating entities delivers an innovative technical platform with AI-powered capabilities for supply chain management and advanced retail planning that is accelerating digital supply chain optimization from product concept to customer availability. Logility, Inc., is helping large enterprise companies transform their supply chain operations to gain a competitive advantage. Recognized for its high-touch approach to customer service, rapid implementations and industry-leading return on investment (ROI), Logility customers include Big Lots, Husqvarna Group, Parker Hannifin, Sonoco Products and Red Wing Shoe Company. Demand Management, Inc. delivers affordable, easy-to-use supply chain planning solutions designed to increase forecast accuracy, improve customer service and reduce inventory to maximize profits and lower costs. Demand Management serves customers such as Siemens Healthcare, AutomationDirect.com and Newfoundland Labrador Liquor Corporation. New Generation Computing, Inc. powers the digital supply chain to enable apparel brand owners and retailers to maximize revenue and profit by accelerating lead times, streamlining product development, and optimizing sourcing and distribution. NGC customers include Brooks Brothers, Carter’s, Destination XL, Fanatics, Foot Locker, Jockey International, Lacoste and Spanx. The comprehensive American Software supply chain and retail planning 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, retail merchandise and assortment planning and allocation, product lifecycle management (PLM), sourcing management, vendor quality and compliance, and product traceability. For more information about American Software, please visit www.amsoftware.com, call (404) 364-7615 or email [email protected] Operating and Non-GAAP Financial Measures The Company includes operating measures (ACV) and other 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 ACV, 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. ACV is a forward-looking operating measure used by management to better understand cloud services (SaaS and other related cloud services) revenue trends within the Company’s business, as it reflects the Company’s current estimate of revenue to be generated under existing customer contracts in the forward 12-month period. EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, and income tax expense. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense 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 email [email protected] $ %) (1 ) (2,697 ) Other Current Liabilities 6,892 167,424 Nine Months Ended (5,961 564 %) 32 Pct Chg. Amortization of acquisition-related intangibles (2) %) 2021 6 774 0.09 2,819 3,597 32,260 0.12 Stock-based compensation 102 – 159 2021 (7 Proceeds from exercise of stock options %) (14 38,523 57 (6 Capitalized computer software development costs Long-term Liabilities Net change in cash and cash equivalents 1,696 96 $ 86,721 Third Quarter Ended %) 25 (30 23 Maintenance %) ) 8 2,819 % %) %) 2021 33,107 %) 79,814 2,215 %) 94 % TAGS  %) % 2021 20,815 $ 232 $ % 2020 (30 (22 12,279 8,625 (3 (In thousands, except per share data, unaudited) 61,288 589 136 %) 315 1,836 46 10,172 2,311 2020 6,197 $ 2,451 (83 General and administrative (67 %) ) %) (6 Pct Chg. 2020 56 %) $ (30 %) $ January 31, %) 0.20 Operating Income (GAAP Basis) 86,721 – % %) $ 1,767 (89 %) $ 0.15 Capitalized Software, net 11 0.16 NON-GAAP EBITDA: $ % – Income Tax Expense 1,878 31,611 PP&E, net 935 $ (604 1,119 55 2,722 % 25 Third Quarter Ended (25 Cost of license January 31, 2021 %) (2) – Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2021 of 16.2% and 14.2% and 13.5% and 13.3% for the three and nine month periods ended January 31, 2020, respectively. Accounts Receivable: 15 Pct Chg. NON-GAAP Operating Earnings: 30,709 (45 7,178 %) %) $ %) 488 2,451 $ 4,459 14,087 %) 1,894 32,668 ) (70 %) January 31, $ 10,308 559 Adjusted non-GAAP diluted earnings per share 703 Net Earnings 0.22 ) %) %) Total Operating Expenses (32 NON-GAAP Operating Earnings: 564 465 4,337 %) 5,070 Stock-based compensation Consolidated Balance Sheet Information 6,907 Non-GAAP Operating Earnings, as a % of revenue Pct Chg. 2,053 %) ) $ 31,271 %) 1,635 56 10,769 (978 6,684 Goodwill 1,289 (30 7,258 Total Liabilities & Shareholders’ Equity 3,286 Net cash used in financing activities 29 AMERICAN SOFTWARE, INC. nm- not meaningful $ (67 718 ) 6,197 Current Assets Net Earnings (GAAP Basis) 13,833 1,510 $ Income Tax Expense ) % Third Quarter Ended Other Non-current Assets % Nine Months Ended % 3,547 477 (1,432 3,286 %) %) EBITDA, as a percentage of revenues % (89 171,293 %) (2 AMERICAN SOFTWARE, INC. Gross Margin Cost of Revenues: January 31, 3,373 (37 (6 5,029 119,422 %) 6,197 987 %) $ 15,261 0.01 %) 617 % 2,897 EBITDA (earnings before interest, taxes, depreciation and amortization) Revenues: 4,735 511 % (86 (31 $ Pct Chg. (47 4,475 (7 25 % % 2,311center_img 26 % (6 (2,555 % Net cash provided by operating activities Net Earnings (GAAP Basis) $ (2,697 (38 $ (19 27,683 Pct Chg. %) 718 (20 % Short-term Investments Total Assets 53 2,177 4,701 Basic (71 (233 % (7 Depreciation January 31, AMERICAN SOFTWARE, INC. 14 %) 4,047 975 703 (8 % 0.04 2020 %) Pct Chg. 7,285 4,659 Basic 0.09 $ 2020 0.27 1,901 (4 %) WhatsApp 3 10 January 31, 13,112 6,161 80 (1,065 %) $ 1,941 $ 232 – %) 14,052 Earnings Before Income Taxes January 31, Local NewsBusiness 1,631 (2,215 288 Stock-based compensation (2) Adjusted Net Earnings Weighted average number of common shares outstanding: 2,980 %) (6 ) Nine Months Ended 171,293 1,901 Third Quarter Ended 3,286 %) Nine Months Ended 125,666 $ 32,628 (2,722 (19 82,842 % %) 43 (2 $ $ Cost of revenues ) (21 257 21 Earnings per common share: (1) 2020 %) 3,797 2020 38,943 1,424 % $ (71 $ Pct Chg. % %) 0.02 0.15 Pct Chg. 0.19 935 29,551 Sales and marketing %) $ $ 51,871 %) 23 Accrued Compensation and Related costs 10,795 0.22 25,888 100 %) $ Adjusted Net Earnings 15,202 Adjusted EBITDA License fees (4 %) 2020 36 (19 NON-GAAP Earnings Per Share (In thousands, except per share data, unaudited) (45 (19 477 Third Quarter Ended 96 Stock-based compensation January 31, 35 $ General and administrative 2021 (In thousands) 46 0.05 %) 92 43 $ 1,734 413 19,758 (36 315 2,367 % 2020 %) 120,350 43,414 57 167,424 Cash and Cash Equivalents 159 (45 Cash and cash equivalents at beginning of period 0.27 January 31, 2,425 0.07 31,955 Professional services & other (70 5,265 % $ NON-GAAP EARNINGS PER SHARE: 15,752 22,712 By Digital AIM Web Support – April 6, 2021 9,495 % Operating Earnings Dividends paid $ (In thousands) $ (31 2021 Amortization of intangibles %) 3,062 10 8,767 January 31, 5,037 $ 0.01 % 42,791 117 % 1,723 3,660 (73 Net cash used in investing activities 2 $ 86,193 26 NON-GAAP MEASURES OF PERFORMANCE 978 5,037 ) 1,093 – % 22,582 1,039 0.12 56 6,674 $ (6 $ 5,037 Facebook January 31, (1 January 31, 6 WhatsApp 25,888 13,933 (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 $0.07 and $0.16 for the three and nine months ended January 31, 2021, respectively. Diluted per share for Class B shares under the two-class method are $0.10 and $0.20 for the three and nine months ended January 31, 2020, respectively. ) nm- not meaningful 5,834 Accounts Payable 3,969 Adjusted EBITDA, as a percentage of revenues (45 April 30, $ Operating expenses: % 6,711 Pct Chg. 34,227 Interest Income & Other, Net 375 $ ) %) Billed 14,623 0.19 Unbilled 104 5,551 Current Liabilities 273 0.07 Prepaids & Other Deferred Sales Commissions – Non-current 2,311 530 $ 47,458 Lease Right of Use Assets – $ AMERICAN SOFTWARE, INC. (19 2021 Research and development 506 12 5,708 2020 Purchases of property and equipment, net of disposals Other Intangibles, net Diluted $ 44,319 1,842 Deferred Tax Liability – Non-current 41,868 31 $ 1,132 View source version on businesswire.com:https://www.businesswire.com/news/home/20210224005924/en/ CONTACT: Financial Information Press Contact: Vincent C. Klinges Chief Financial Officer American Software, Inc. (404) 264-5477 KEYWORD: UNITED STATES NORTH AMERICA GEORGIA INDUSTRY KEYWORD: SUPPLY CHAIN MANAGEMENT DATA MANAGEMENT RETAIL TECHNOLOGY OTHER TECHNOLOGY SOFTWARE SOURCE: American Software, Inc. Copyright Business Wire 2021. PUB: 02/24/2021 04:05 PM/DISC: 02/24/2021 04:05 PM http://www.businesswire.com/news/home/20210224005924/en 3,976 Nine Months Ended % %) 17 %) Pct Chg. (26 %) 27 1,643 During the quarter, SaaS subscription and/or software license agreements were signed with customers located in the following 11 countries: Australia, France, Ireland, Italy, Mexico, New Zealand, Singapore, Sweden, Tunisia, United Kingdom, and United States. % Shareholders’ Equity Dividend Payable 1,289 Amortization of acquisition-related intangibles (806 5,194 % Other Long-term Liabilities (2 643 Deferred Revenues – Current 32,023 Investments – Non-current %) 53 Third Quarter Ended 1,954 % 2,885 $ (30 (53 2020 113 (28 Amortization of acquisition-related intangibles (2) – 11 16,246 47,074 25,007 January 31, % Subscription fees %) %) 12,422 1,057 Total Accounts Receivable, net 12 154 6,635 Total Liabilities Interest Income & Other, Net $ 2021 ) 2,572 %) Total Cost of Revenues %) (13 Diluted $ %) (6 $ $ 701 Professional services & other (339 (30 (71 Nine Months Ended 7,521 (3,036 $ 33,293 17,804 ) American Software Reports Third Quarter of Fiscal Year 2021 Results ) 33 8,793 1,432 Condensed Consolidated Cashflow Information %) 136 3,368 13,158 Sales and marketing 260 $ ) 79,814 14,161 (44 Maintenance %) (10,392 68,809 %) (21 Facebook Twitter Pinterest 3,698 Previous articleArctos NorthStar Acquisition Corp. 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