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CST: 17/08/2019 22:23:24   

Manhattan Associates Reports Record Second Quarter 2019 Revenue

25 Days ago

Company raises full-year Revenue and EPS guidance

ATLANTA, July 23, 2019 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported record total revenue of $154.3 million for the second quarter ended June 30, 2019, applying the new revenue recognition standard retrospectively. GAAP diluted earnings per share for Q2 2019 was $0.32 compared to $0.42 in Q2 2018. Non-GAAP adjusted diluted earnings per share for Q2 2019 was $0.42 compared to $0.47 in Q2 2018.

“Q2 was another solid growth quarter for Manhattan Associates posting record total revenue and exceeding our earnings expectations on strong demand,” said Manhattan Associates president and CEO Eddie Capel. “In a turbulent global macro, our suite of Manhattan Active™ omnichannel, inventory and supply chain solutions continued to drive solid revenue momentum positioning us well for the balance of 2019. We remain focused on enabling our clients to accelerate growth and Push Possible®, while investing significantly in innovation to achieve long-term sustainable growth in 2019 and beyond,” added Mr. Capel.

SECOND QUARTER 2019 FINANCIAL SUMMARY:

  • Consolidated total revenue was $154.3 million in Q2 2019, compared to $141.9 million in Q2 2018. License revenue was $11.7 million in Q2 2019, compared to $13.0 million in Q2 2018. Cloud subscription revenue was $9.0 million in Q2 2019, compared to $5.4 million in Q2 2018. Service revenue was $94.0 million in in Q2 2019, compared to $82.3 million in Q2 2018.
  • GAAP diluted earnings per share was $0.32 in Q2 2019 compared to $0.42 in Q2 2018.
  • Adjusted diluted earnings per share, a non-GAAP measure, was $0.42 in Q2 2019, compared to $0.47 in Q2 2018.
  • GAAP operating income was $27.6 million in Q2 2019, compared to $35.7 million in Q2 2018.
  • Adjusted operating income, a non-GAAP measure, was $36.2 million in Q2 2019, compared to $40.7 million in Q2 2018.
  • Cash flow from operations was $37.2 million in Q2 2019, compared to $16.8 million in Q2 2018. Days Sales Outstanding was 59 days at June 30, 2019, compared to 65 days at March 31, 2019.
  • Cash and investments totaled $119.4 million at June 30, 2019, compared to $104.9 million at March 31, 2019.
  • During the three months ended June 30, 2019, the Company repurchased 301,984 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $20.0 million. In July 2019, our Board authorized the Company to repurchase up to an aggregate of $50 million of the Company’s common stock.

SIX MONTH 2019 FINANCIAL SUMMARY:

  • Consolidated revenue for the six months ended June 30, 2019, was $302.7 million, compared to $272.4 million for the six months ended June 30, 2018. License revenue was $24.1 million for the six months ended June 30, 2019, compared to $20.5 million for the six months ended June 30, 2018. Cloud subscription revenue was $16.9 million for the six months ended June 30, 2019, compared to $9.8 million for the six months ended June 30, 2018. Service revenue was $182.6 million for the six months ended June 30, 2019, compared to $161.0 million, for the six months ended June 30, 2018.
  • GAAP diluted earnings per share for the six months ended June 30, 2019 was $0.64, compared to $0.75 for the six months ended June 30, 2018.  
  • Adjusted diluted earnings per share, a non-GAAP measure, was $0.83 for the six months ended June 30, 2019, compared to $0.84 for the six months ended June 30, 2018.
  • GAAP operating income was $55.9 million for the six months ended June 30, 2019, compared to $63.5 million for the six months ended June 30, 2018.
  • Adjusted operating income, a non-GAAP measure, was $71.7 million for the six months ended June 30, 2019, compared to $73.0 million for the six months ended June 30, 2018. 
  • Cash flow from operations was $72.4 million in the six months ended June 30, 2019, compared to $68.1 million in the six months ended June 30, 2018.
  • During the six months ended June 30, 2019, the Company repurchased 765,664 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $44.9 million.

2019 GUIDANCE

Manhattan Associates provides the following updated revenue, operating margin and diluted earnings per share guidance for the full year 2019:

    Guidance Range - 2019 Full Year
  ($'s in millions, except operating margin and EPS) $ Range     % Growth Range  
                               
  Total revenue - current guidance $ 598     $ 604     7 %   8 %  
                               
  Total revenue - previous guidance $ 582     $ 592     4 %   6 %  
                               
  Operating Margin:                            
  GAAP operating margin - current guidance   15.6 %     15.9 %              
  Equity-based compensation   5.4 %     5.4 %              
  Adjusted operating margin(1) - current guidance   21.0 %     21.2 %              
                               
  GAAP operating margin - previous guidance   15.6 %     15.8 %              
  Equity-based compensation   5.4 %     5.4 %              
  Adjusted operating margin(1) - previous guidance   21.0 %     21.2 %              
                               
  Diluted earnings per share (EPS):                            
  GAAP EPS - current guidance $ 1.08     $ 1.12     -32 %   -29 %  
  Equity-based compensation, net of tax   0.38       0.38                
  Adjusted EPS(1) - current guidance $ 1.46     $ 1.50     -18 %   -16 %  
                               
  GAAP EPS - previous guidance $ 1.05     $ 1.09     -34 %   -31 %  
  Equity-based compensation, net of tax   0.37       0.37                
  Adjusted EPS(1) - previous guidance $ 1.42     $ 1.46     -21 %   -18 %  
                               
                               
  (1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based  
  compensation and acquisition-related costs, and the related income tax effects of these items if applicable.  
                               

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.

CONFERENCE CALL

The Company’s conference call regarding its second quarter financial results will be held today, July 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 ­­­­­­­­2188038 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’ third 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 and six months ended June 30, 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 enactment 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.

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers. 

Manhattan Associates designs, builds and delivers leading edge cloud and on-premise solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.

This press release contains “forward-looking statements” relating to Manhattan Associates, Inc.  Forward-looking statements in this press release include, without limitation, the information set forth under “2019 Guidance,” statements we make about market adoption of our cloud-based solution and other statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate,” and similar expressions.  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: uncertainty about the global economy, risks related from transitioning our business from a traditional perpetual license software company (generally hosted by our customers on their own premises and equipment) to a subscription-based software-as-a service/cloud-based model, disruption in the retail sector, the possible effect of new U.S. tariffs on imports from other countries (and possible responsive tariffs on U.S. exports by other countries) on international commerce, delays in product development, competitive pressures, software errors, information security breaches and the risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. 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.


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)

    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Revenue:                                
Cloud subscriptions   $ 9,009     $ 5,377     $ 16,868     $ 9,846  
Software license     11,721       12,973       24,135       20,528  
Maintenance     37,323       36,993       73,422       73,390  
Services     93,951       82,267       182,582       161,024  
Hardware     2,337       4,261       5,738       7,652  
Total revenue     154,341       141,871       302,745       272,440  
Costs and expenses:                                
Cost of software license     623       2,096       1,215       3,404  
Cost of cloud subscriptions, maintenance and services     70,955       56,985       137,533       113,471  
Research and development     21,997       18,176       43,210       35,235  
Sales and marketing     14,520       13,809       29,301       26,693  
General and administrative     16,805       12,885       31,855       25,685  
Depreciation and amortization     1,859       2,235       3,773       4,437  
Total costs and expenses     126,759       106,186       246,887       208,925  
Operating income     27,582       35,685       55,858       63,515  
Other (loss) income, net     (71 )     986       (442 )     1,707  
Income before income taxes     27,511       36,671       55,416       65,222  
Income tax provision     6,586       9,003       13,519       14,902  
Net income   $ 20,925     $ 27,668     $ 41,897     $ 50,320  
                                 
Basic earnings per share   $ 0.32     $ 0.42     $ 0.65     $ 0.75  
Diluted earnings per share   $ 0.32     $ 0.42     $ 0.64     $ 0.75  
                                 
Weighted average number of shares:                                
Basic     64,623       66,429       64,765       66,987  
Diluted     65,093       66,535       65,148       67,132  
                                 


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Reconciliation of Selected GAAP to Non-GAAP Measures
(in thousands, except per share amounts)

    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
                                 
Operating income   $ 27,582     $ 35,685     $ 55,858     $ 63,515  
Equity-based compensation (a)     8,462       4,927       15,644       9,270  
Purchase amortization (c)     107       108       215       215  
Adjusted operating income (Non-GAAP)   $ 36,151     $ 40,720     $ 71,717     $ 73,000  
                                 
                                 
Income tax provision   $ 6,586     $ 9,003     $ 13,519     $ 14,902  
Equity-based compensation (a)     2,073       1,207       3,833       2,271  
Tax benefit (deficiency) of stock awards vested (b)     154       (19 )     58       730  
Purchase amortization (c)     26       26       53       53  
U.S. Tax Cuts and Jobs Act impact (d)     -       -       -       348  
Adjusted income tax provision (Non-GAAP)   $ 8,839     $ 10,217     $ 17,463     $ 18,304  
                                 
                                 
Net income   $ 20,925     $ 27,668     $ 41,897     $ 50,320  
Equity-based compensation (a)     6,389       3,720       11,811       6,999  
Tax (deficiency) benefit of stock awards vested (b)     (154 )     19       (58 )     (730 )
Purchase amortization (c)     81       82       162       162  
U.S. Tax Cuts and Jobs Act impact (d)     -       -       -       (348 )
Adjusted net income (Non-GAAP)   $ 27,241     $ 31,489     $ 53,812     $ 56,403  
                                 
                                 
Diluted EPS   $ 0.32     $ 0.42     $ 0.64     $ 0.75  
Equity-based compensation (a)     0.10       0.06       0.18       0.10  
Tax (deficiency) benefit of stock awards vested (b)     -       -       -       (0.01 )
Purchase amortization (c)     -       -       -       -  
U.S. Tax Cuts and Jobs Act impact (d)     -       -       -       -  
Adjusted diluted EPS (Non-GAAP)   $ 0.42     $ 0.47     $ 0.83     $ 0.84  
                                 
Fully diluted shares     65,093       66,535       65,148       67,132  

(a)     Adjusted results exclude all equity-based compensation, to facilitate comparison with our peers and for the other reasons explained in our Current Report on Form 8-K filed today with the SEC. Equity-based compensation is included in the following GAAP operating expense lines for the three and six months ended June 30, 2019, and 2018:

    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
                                 
Cost of services   $ 2,448     $ 1,556     $ 4,545     $ 2,673  
Research and development     1,603       1,140       2,979       2,061  
Sales and marketing     976       347       1,795       905  
General and administrative     3,435       1,884       6,325       3,631  
Total equity-based compensation   $ 8,462     $ 4,927     $ 15,644     $ 9,270  

(b)     Adjustments represent the excess tax benefits and tax deficiencies of the stock awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible for an award of equity instruments on our tax return is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we excluded equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also excluded the related tax benefit (expense) generated upon their vesting.

(c)     Adjustments represent purchased intangibles amortization from a prior acquisition. We exclude that amortization from adjusted results to facilitate comparison with our peers, to facilitate comparisons of the results of our core operations from period to period and for the other reasons explained in our Current Report on Form 8-K filed with the SEC.

(d)     In the fourth quarter of 2017, we recorded a provisional net one-time tax of $2.8 million due to the enactment of the Tax Cuts and Jobs Act in December 2017. We calculated that amount based on a reasonable estimate of the income tax effects, primarily from a tax on accumulated foreign earnings and the remeasurement of deferred tax assets. We adjusted our estimate by $0.3 million during the six months ended June 30, 2018.



MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)

    June 30, 2019     December 31, 2018  
    (unaudited)          
ASSETS                
Current assets:                
Cash and cash equivalents   $ 119,401     $ 99,126  
Short-term investments     -       1,440  
Accounts receivable, net of allowance of $1,678 and $2,589, respectively     100,291       100,108  
Prepaid expenses and other current assets     19,865       14,708  
Total current assets     239,557       215,382  
                 
Property and equipment, net     14,512       14,318  
Operating lease right-of-use assets     39,701       -  
Goodwill, net     62,239       62,240  
Deferred income taxes     5,174       5,442  
Other assets     11,000       9,768  
Total assets   $ 372,183     $ 307,150  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
Current liabilities:                
Accounts payable   $ 17,272     $ 18,181  
Accrued compensation and benefits     34,130       29,485  
Accrued and other liabilities     18,448       12,161  
Deferred revenue     98,195       81,894  
Income taxes payable     1,087       3,543  
Total current liabilities     169,132       145,264  
                 
Operating lease liabilities, long-term     35,800       -  
Other non-current liabilities     12,564       14,739  
                 
Shareholders' equity:                
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2019 and 2018     -       -  
Common stock, $0.01 par value; 200,000,000 shares authorized; 64,322,067 and 64,860,419 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively     643       649  
Retained earnings     170,668       163,359  
Accumulated other comprehensive loss     (16,624 )     (16,861 )
Total shareholders' equity     154,687       147,147  
Total liabilities and shareholders' equity   $ 372,183     $ 307,150  
                 


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)

    Six Months Ended June 30,  
    2019     2018  
    (unaudited)     (unaudited)  
Operating activities:                
Net income   $ 41,897     $ 50,320  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     3,773       4,437  
Equity-based compensation     15,644       9,270  
Gain on disposal of equipment     (121 )     (37 )
Deferred income taxes     272       803  
Unrealized foreign currency loss (gain)     156       (1,359 )
Changes in operating assets and liabilities:                
     Accounts receivable, net     (312 )     (7,913 )
     Other assets     (6,144 )     (5,217 )
     Accounts payable, accrued and other liabilities     4,238       15,846  
     Income taxes     (3,145 )     (14,300 )
     Deferred revenue     16,149       16,244  
Net cash provided by operating activities     72,407       68,094  
                 
Investing activities:                
Purchase of property and equipment     (3,305 )     (4,055 )
Net maturities (purchases) of investments     1,439       (5,196 )
Net cash used in investing activities     (1,866 )     (9,251 )
                 
Financing activities:                
Purchase of common stock     (50,238 )     (103,714 )
Net cash used in financing activities     (50,238 )     (103,714 )
                 
Foreign currency impact on cash     (28 )     (1,617 )
                 
Net change in cash and cash equivalents     20,275       (46,488 )
Cash and cash equivalents at beginning of period     99,126       125,522  
Cash and cash equivalents at end of period   $ 119,401     $ 79,034  
                 


MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

1.    GAAP and Adjusted earnings per share by quarter are as follows:

  2018     2019  
  1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     YTD  
GAAP Diluted EPS $ 0.33     $ 0.42     $ 0.43     $ 0.40     $ 1.58     $ 0.32     $ 0.32     $ 0.64  
Adjustments to GAAP:                                                              
Equity-based compensation   0.05       0.06       0.06       0.06       0.23       0.08       0.10       0.18  
Tax benefit of stock awards vested   (0.01 )     -       -       -       (0.01 )     -       -       -  
Purchase amortization   -       -       -       -       -       -       -       -  
U.S. Tax Cuts and Jobs Act impact   (0.01 )     -       -       -       -       -       -       -  
Adjusted Diluted EPS $ 0.37     $ 0.47     $ 0.49     $ 0.46     $ 1.79     $ 0.41     $ 0.42     $ 0.83  
Fully Diluted Shares   67,736       66,535       65,901       65,526       66,434       65,204       65,093       65,148  

2.    Revenues and operating income by reportable segment are as follows (in thousands):

  2018     2019  
  1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     YTD  
Revenue:  
Americas $ 104,615     $ 112,945     $ 113,886     $ 114,040     $ 445,486     $ 114,873     $ 121,778     $ 236,651  
EMEA   19,164       21,356       21,181       23,043       84,744       26,288       25,043       51,331  
APAC   6,790       7,570       7,284       7,283       28,927       7,243       7,520       14,763  
  $ 130,569     $ 141,871     $ 142,351     $ 144,366     $ 559,157     $ 148,404     $ 154,341     $ 302,745  
                                                               
GAAP Operating Income:  
Americas $ 20,318     $ 26,589     $ 26,200     $ 24,422     $ 97,529     $ 18,051     $ 16,826     $ 34,877  
EMEA   5,475       6,252       7,413       7,297       26,437       7,734       8,057       15,791  
APAC   2,037       2,844       2,483       2,557       9,921       2,491       2,699       5,190  
  $ 27,830     $ 35,685     $ 36,096     $ 34,276     $ 133,887     $ 28,276     $ 27,582     $ 55,858  
                                                               
Adjustments (pre-tax):  
Americas:                                                              
Equity-based compensation $ 4,343     $ 4,927     $ 5,303     $ 5,291     $ 19,864     $ 7,182     $ 8,462     $ 15,644  
Purchase amortization   107       108       107       108       430       108       107       215  
  $ 4,450     $ 5,035     $ 5,410     $ 5,399     $ 20,294     $ 7,290     $ 8,569     $ 15,859  
                                                               
                                                               
Adjusted non-GAAP Operating Income:  
Americas $ 24,768     $ 31,624     $ 31,610     $ 29,821     $ 117,823     $ 25,341     $ 25,395     $ 50,736  
EMEA   5,475       6,252       7,413       7,297       26,437       7,734       8,057       15,791  
APAC   2,037       2,844       2,483       2,557       9,921       2,491       2,699       5,190  
  $ 32,280     $ 40,720     $ 41,506     $ 39,675     $ 154,181     $ 35,566     $ 36,151     $ 71,717  

3.    Impact of Currency Fluctuation

The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):

  2018     2019  
  1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     YTD  
Revenue $ 2,781     $ 1,699     $ (581 )   $ (1,068 )   $ 2,831     $ (2,419 )   $ (1,906 )   $ (4,325 )
Costs and expenses   2,328       831       (1,177 )     (1,774 )     208       (2,686 )     (1,696 )     (4,382 )
Operating income   453       868       596       706       2,623       267       (210 )     57  
Foreign currency gains (losses) in other income   366       705       1,431       (1,185 )     1,317       (590 )     (377 )     (967 )
  $ 819     $ 1,573     $ 2,027     $ (479 )   $ 3,940     $ (323 )   $ (587 )   $ (910 )

Manhattan Associates has a large research and development center in Bangalore, India.  The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands):

  2018     2019  
  1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     YTD  
Operating income $ (360 )   $ 359     $ 828     $ 1,066     $ 1,893     $ 981     $ 438     $ 1,419  
Foreign currency gains (losses) in other income   210       1,120       1,572       (1,074 )     1,828       (182 )     (127 )     (309 )
Total impact of changes in the Indian Rupee $ (150 )   $ 1,479     $ 2,400     $ (8 )   $ 3,721     $ 799     $ 311     $ 1,110  

4.    Other income includes the following components (in thousands):

  2018     2019  
  1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     YTD  
Interest income $ 347     $ 241     $ 201     $ 278     $ 1,067     $ 231     $ 178     $ 409  
Foreign currency gains (losses)   366       705       1,431       (1,185 )     1,317       (590 )     (377 )     (967 )
Other non-operating income (expense)   8       40       (94 )     6       (40 )     (12 )     128       116  
Total other income (loss) $ 721     $ 986     $ 1,538     $ (901 )   $ 2,344     $ (371 )   $ (71 )   $ (442 )

5.    Capital expenditures are as follows (in thousands):

  2018     2019                  
  1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     YTD  
Capital expenditures $ 2,174     $ 1,881     $ 1,481     $ 1,770     $ 7,306     $ 616     $ 2,689     $ 3,305  

6.    Stock Repurchase Activity (in thousands):

  2018     2019  
  1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     YTD  
Shares purchased under publicly-announced buy-back program   1,158       1,082       389       519       3,148       464       302       766  
Shares withheld for taxes due upon vesting of restricted stock   111       1       3       -       115       106       1       107  
Total shares purchased   1,269       1,083       392       519       3,263       570       303       873  
                                                               
Total cash paid for shares purchased under publicly-announced buy-back program $ 49,972     $ 47,876     $ 20,669     $ 24,757     $ 143,274     $ 24,927     $ 19,993     $ 44,920  
Total cash paid for shares withheld for taxes due upon vesting of restricted stock   5,843       23       175       7       6,048       5,233       85       5,318  
Total cash paid for shares repurchased $ 55,815     $ 47,899     $ 20,844     $ 24,764     $ 149,322     $ 30,160     $ 20,078     $ 50,238  

7.     Remaining Performance Obligations

Under the new revenue recognition standard, we now disclose revenue we expect to recognize from our remaining performance obligations.  Our reported performance obligations primarily represent cloud subscriptions with a non-cancelable term greater than one year (including cloud deferred revenue as well as amounts we will invoice and recognize as revenue from our performance of cloud services in future periods).  Our deferred revenue on the balance sheet primarily relates to our maintenance contracts, which are typically one year in duration and are not included in the remaining performance obligations.  Below are our remaining performance obligations as of the end of each period (in thousands):

  March 31,
2018
  June 30,
2018
  September 30,
2018
  December 31,
2018
  March 31,
2019
  June 30,
2019
Remaining Performance Obligations $ 33,999     $ 58,434     $ 64,175     $ 76,990     $ 100,532     $ 120,403  
                                               


Contact:   Dennis Story   Rick Fernandez
    Chief Financial Officer   Senior Manager, Corporate Communications
    Manhattan Associates, Inc.   Manhattan Associates, Inc.
    770-955-7070   678-597-6988
    dstory@manh.com   rfernandez@manh.com

 

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