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CST: 22/11/2019 02:41:18   

Manhattan Associates Reports Record Third Quarter 2019 Revenue

30 Days ago

Company raises full-year Revenue and EPS guidance

ATLANTA, Oct. 22, 2019 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported record total revenue of $162.3 million for the third quarter ended September 30, 2019, applying the new revenue recognition standard retrospectively. GAAP diluted earnings per share for Q3 2019 was $0.42 compared to $0.43 in Q3 2018. Non-GAAP adjusted diluted earnings per share for Q3 2019 was $0.51 compared to $0.49 in Q3 2018.

“Due to robust demand across all of our core solutions, Manhattan Associates posted strong organic growth in the quarter, resulting in an all-time record revenue quarter. Cloud, License and Services revenue momentum exceeded our expectations driving exceptional operating results in our ongoing Cloud transition,” said Manhattan Associates president and CEO Eddie Capel. “Our suite of Manhattan Active® omnichannel, inventory and supply chain solutions continues to drive solid pipeline and revenue momentum positioning us well for the balance of 2019 and beyond. Based on our outlook for the remainder of the year, we are raising our 2019 full-year revenue and earnings guidance.”

“While appropriately cautious regarding global geopolitical and economic volatility, we continue to be optimistic on the market opportunity ahead, with supply chain complexity and retail evolution in our target markets bringing continued need for our solutions. Positive customer feedback and strong competitive win rates, combined with continued product advancements, are enabling our clients to Push Possible® with their commerce supply chains,” added Mr. Capel.

THIRD QUARTER 2019 FINANCIAL SUMMARY:

  • Consolidated total revenue was $162.3 million in Q3 2019, compared to $142.4 million in Q3 2018. License revenue was $15.5 million in Q3 2019, compared to $11.5 million in Q3 2018. Cloud subscription revenue was $14.2 million in Q3 2019, compared to $6.5 million in Q3 2018. Service revenue was $91.6 million in Q3 2019, compared to $84.1 million in Q3 2018.
  • GAAP diluted earnings per share was $0.42 in Q3 2019 compared to $0.43 in Q3 2018.
  • Adjusted diluted earnings per share, a non-GAAP measure, was $0.51 in Q3 2019, compared to $0.49 in Q3 2018.
  • GAAP operating income was $35.0 million in Q3 2019, compared to $36.1 million in Q3 2018.
  • Adjusted operating income, a non-GAAP measure, was $43.1 million in Q3 2019, compared to $41.5 million in Q3 2018.
  • Cash flow from operations was $39.9 million for Q3 2019, compared to $35.2 million for Q3 2018. Days Sales Outstanding was 61 days at September 30, 2019, compared to 59 days at June 30, 2019.
  • Cash and investments totaled $113.6 million at September 30, 2019, compared to $119.4 million at June 30, 2019.
  • During the three months ended September 30, 2019, the Company repurchased 429,539 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $36.0 million. In October 2019, our Board authorized the Company to repurchase up to an aggregate of $50 million of the Company’s common stock.

NINE MONTH 2019 FINANCIAL SUMMARY:

  • Consolidated total revenue for the nine months ended September 30, 2019, was $465.0 million, compared to $414.8 million for the nine months ended September 30, 2018. License revenue was $39.6 million for the nine months ended September 30, 2019, compared to  $32.1 million for the nine months ended September 30, 2018. Cloud subscription revenue was $31.1 million for the nine months ended September 30, 2019, compared to $16.3 million for the nine months ended September 30, 2018. Service revenue was $274.2 million for the nine months ended September 30, 2019, compared to $245.2 million, for the nine months ended September 30, 2018
  • GAAP diluted earnings per share for the nine months ended September 30, 2019, was $1.06, compared to $1.18 for the nine months ended September 30, 2018.  
  • Adjusted diluted earnings per share a non-GAAP measure, was $1.34 for the nine months ended September 30, 2019, compared to $1.33 for the nine months ended September 30, 2018.
  • GAAP operating income was $90.9 million for the nine months ended September 30, 2019, compared to $99.6 million for the nine months ended September 30, 2018.
  • Adjusted operating income a non-GAAP measure, was $114.8 million for the nine months ended September 30, 2019, compared to $114.5 million for the nine months ended September 30, 2018. 
  • Cash flow from operations was $112.3 million for the nine months ended September 30, 2019, compared to $103.3 million for the nine months ended September 30, 2018.
  • During the nine months ended September 30, 2019, the Company repurchased 1,195,203 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $80.9 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 $ 610     $ 614     9%     10%
                             
Total revenue - previous guidance $ 598     $ 604     7%     8%
                             
Operating Margin:                            
GAAP operating margin - current guidance   17.7 %     17.9 %              
Equity-based compensation   5.3 %     5.3 %              
Adjusted operating margin(1) - current guidance   23.0 %     23.2 %              
                             
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 $ 1.26     $ 1.27     -20%     -20%
Equity-based compensation, net of tax   0.37       0.38                
Adjusted EPS(1) - current guidance $ 1.63     $ 1.65     -9%     -8%
                             
GAAP EPS - previous guidance $ 1.08     $ 1.12     -32%     -29%
Equity-based compensation, net of tax   0.38       0.38                
Adjusted EPS(1) - previous guidance $ 1.46     $ 1.50     -18%     -16%
                             
                             
(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 third quarter financial results will be held today, October 22, 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 ­­­­­­­­2677286 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’ fourth 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 nine months ended September 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 September 30,     Nine Months Ended September 30,
    2019     2018     2019     2018
    (unaudited)     (unaudited)     (unaudited)     (unaudited)
Revenue:                              
Cloud subscriptions   $ 14,242     $ 6,455     $ 31,110     $ 16,301
Software license     15,486       11,526       39,621       32,054
Maintenance     37,763       37,177       111,185       110,567
Services     91,626       84,136       274,208       245,160
Hardware     3,158       3,057       8,896       10,709
Total revenue     162,275       142,351       465,020       414,791
Costs and expenses:                              
Cost of software license     748       1,211       1,963       4,615
Cost of cloud subscriptions, maintenance and services     73,618       59,975       211,151       173,446
Research and development     22,614       18,453       65,824       53,688
Sales and marketing     12,125       10,726       41,426       37,419
General and administrative     16,236       13,711       48,091       39,396
Depreciation and amortization     1,937       2,179       5,710       6,616
Total costs and expenses     127,278       106,255       374,165       315,180
Operating income     34,997       36,096       90,855       99,611
Other income, net     810       1,538       368       3,245
Income before income taxes     35,807       37,634       91,223       102,856
Income tax provision     8,700       9,179       22,219       24,081
Net income   $ 27,107     $ 28,455     $ 69,004     $ 78,775
                               
Basic earnings per share   $ 0.42     $ 0.43     $ 1.07     $ 1.18
Diluted earnings per share   $ 0.42     $ 0.43     $ 1.06     $ 1.18
                               
Weighted average number of shares:                              
Basic     64,247       65,658       64,591       66,539
Diluted     64,992       65,901       65,112       66,717


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

    Three Months Ended September 30,     Nine Months Ended September 30,  
    2019     2018     2019     2018  
                                 
Operating income   $ 34,997     $ 36,096     $ 90,855     $ 99,611  
Equity-based compensation (a)     8,002       5,303       23,646       14,573  
Purchase amortization (c)     108       107       323       322  
Adjusted operating income (Non-GAAP)   $ 43,107     $ 41,506     $ 114,824     $ 114,506  
                                 
                                 
Income tax provision   $ 8,700     $ 9,179     $ 22,219     $ 24,081  
Equity-based compensation (a)     1,960       1,299       5,793       3,570  
Tax (deficiency) benefit of stock awards vested (b)     88       41       146       771  
Purchase amortization (c)     26       26       79       79  
U.S. Tax Cuts and Jobs Act impact (d)     -       -       -       348  
Adjusted income tax provision (Non-GAAP)   $ 10,774     $ 10,545     $ 28,237     $ 28,849  
                                 
                                 
Net income   $ 27,107     $ 28,455     $ 69,004     $ 78,775  
Equity-based compensation (a)     6,042       4,004       17,853       11,003  
Tax (deficiency) benefit of stock awards vested (b)     (88 )     (41 )     (146 )     (771 )
Purchase amortization (c)     82       81       244       243  
U.S. Tax Cuts and Jobs Act impact (d)     -       -       -       (348 )
Adjusted net income (Non-GAAP)   $ 33,143     $ 32,499     $ 86,955     $ 88,902  
                                 
                                 
Diluted EPS   $ 0.42     $ 0.43     $ 1.06     $ 1.18  
Equity-based compensation (a)     0.09       0.06       0.27       0.16  
Tax (deficiency) benefit of stock awards vested (b)     -       -       -       (0.01 )
Purchase amortization (c)     -       -       -       -  
U.S. Tax Cuts and Jobs Act impact (d)     -       -       -       (0.01 )
Adjusted diluted EPS (Non-GAAP)   $ 0.51     $ 0.49     $ 1.34     $ 1.33  
                                 
Fully diluted shares     64,992       65,901       65,112       66,717  

(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 nine months ended September 30, 2019, and 2018:     

  

    Three Months Ended September 30,     Nine Months Ended September 30,
    2019     2018     2019     2018
                               
Cost of services   $ 2,407     $ 1,531     $ 6,952     $ 4,204
Research and development     1,582       1,074       4,561       3,135
Sales and marketing     638       591       2,433       1,496
General and administrative     3,375       2,107       9,700       5,738
Total equity-based compensation   $ 8,002     $ 5,303     $ 23,646     $ 14,573

(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 nine months ended September 30, 2018.


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

 

    September 30, 2019     December 31, 2018  
    (unaudited)          
ASSETS                
Current assets:                
Cash and cash equivalents   $ 113,618     $ 99,126  
Short-term investments     -       1,440  
Accounts receivable, net of allowance of $2,611 and $2,589, respectively     108,397       100,108  
Prepaid expenses and other current assets     19,580       14,708  
Total current assets     241,595       215,382  
                 
Property and equipment, net     20,959       14,318  
Operating lease right-of-use assets     37,178       -  
Goodwill, net     62,233       62,240  
Deferred income taxes     6,747       5,442  
Other assets     11,585       9,768  
Total assets   $ 380,297     $ 307,150  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
Current liabilities:                
Accounts payable   $ 21,190     $ 18,181  
Accrued compensation and benefits     40,023       29,485  
Accrued and other liabilities     19,334       12,161  
Deferred revenue     97,302       81,894  
Income taxes payable     4,645       3,543  
Total current liabilities     182,494       145,264  
                 
Operating lease liabilities, long-term     33,929       -  
Other non-current liabilities     12,224       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; 63,900,528 and 64,860,419 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively     639       649  
Retained earnings     169,560       163,359  
Accumulated other comprehensive loss     (18,549 )     (16,861 )
Total shareholders' equity     151,650       147,147  
Total liabilities and shareholders' equity   $ 380,297     $ 307,150  


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

    Nine Months Ended September 30,  
    2019     2018  
    (unaudited)     (unaudited)  
Operating activities:                
Net income   $ 69,004     $ 78,775  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     5,710       6,616  
Equity-based compensation     23,646       14,573  
(Gain) loss on disposal of equipment     (436 )     56  
Deferred income taxes     (1,331 )     (244 )
Unrealized foreign currency gain     (570 )     (1,373 )
Changes in operating assets and liabilities:                
Accounts receivable, net     (9,178 )     (1,995 )
Other assets     (7,042 )     (5,296 )
Accounts payable, accrued and other liabilities     16,271       11,059  
Income taxes     576       (7,488 )
Deferred revenue     15,696       8,635  
Net cash provided by operating activities     112,346       103,318  
                 
Investing activities:                
Purchase of property and equipment     (11,358 )     (5,536 )
Net maturities (purchases) of investments     1,439       (5,196 )
Net cash used in investing activities     (9,919 )     (10,732 )
                 
Financing activities:                
Purchase of common stock     (86,459 )     (124,558 )
Net cash used in financing activities     (86,459 )     (124,558 )
                 
Foreign currency impact on cash     (1,476 )     (3,801 )
                 
Net change in cash and cash equivalents     14,492       (35,773 )
Cash and cash equivalents at beginning of period     99,126       125,522  
Cash and cash equivalents at end of period   $ 113,618     $ 89,749  


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     3rd Qtr     YTD
GAAP Diluted EPS $ 0.33     $ 0.42     $ 0.43     $ 0.40     $ 1.58     $ 0.32     $ 0.32     $ 0.42     $ 1.06
Adjustments to GAAP:                                                                    
Equity-based compensation   0.05       0.06       0.06       0.06       0.23       0.08       0.10       0.09       0.27
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     $ 0.51     $ 1.34
Fully Diluted Shares   67,736       66,535       65,901       65,526       66,434       65,204       65,093       64,992       65,112

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     3rd Qtr     YTD  
Revenue:  
Americas $ 104,615     $ 112,945     $ 113,886     $ 114,040     $ 445,486     $ 114,873     $ 121,778     $ 132,028     $ 368,679  
EMEA   19,164       21,356       21,181       23,043       84,744       26,288       25,043       22,978       74,309  
APAC   6,790       7,570       7,284       7,283       28,927       7,243       7,520       7,269       22,032  
  $ 130,569     $ 141,871     $ 142,351     $ 144,366     $ 559,157     $ 148,404     $ 154,341     $ 162,275     $ 465,020  
                                                                       
GAAP Operating Income:  
Americas $ 20,318     $ 26,589     $ 26,200     $ 24,422     $ 97,529     $ 18,051     $ 16,826     $ 26,310     $ 61,187  
EMEA   5,475       6,252       7,413       7,297       26,437       7,734       8,057       6,371       22,162  
APAC   2,037       2,844       2,483       2,557       9,921       2,491       2,699       2,316       7,506  
  $ 27,830     $ 35,685     $ 36,096     $ 34,276     $ 133,887     $ 28,276     $ 27,582     $ 34,997     $ 90,855  
                                                                       
Adjustments (pre-tax):  
Americas:                                                                      
Equity-based
  compensation
$ 4,343     $ 4,927     $ 5,303     $ 5,291     $ 19,864     $ 7,182     $ 8,462     $ 8,002     $ 23,646  
Purchase amortization   107       108       107       108       430       108       107       108       323  
  $ 4,450     $ 5,035     $ 5,410     $ 5,399     $ 20,294     $ 7,290     $ 8,569     $ 8,110     $ 23,969  
                                                                       
                                                                       
Adjusted non-GAAP Operating Income:  
Americas $ 24,768     $ 31,624     $ 31,610     $ 29,821     $ 117,823     $ 25,341     $ 25,395     $ 34,420     $ 85,156  
EMEA   5,475       6,252       7,413       7,297       26,437       7,734       8,057       6,371       22,162  
APAC   2,037       2,844       2,483       2,557       9,921       2,491       2,699       2,316       7,506  
  $ 32,280     $ 40,720     $ 41,506     $ 39,675     $ 154,181     $ 35,566     $ 36,151     $ 43,107     $ 114,824  

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     3rd Qtr     YTD  
Revenue $ 2,781     $ 1,699     $ (581 )   $ (1,068 )   $ 2,831     $ (2,419 )   $ (1,906 )   $ (1,352 )   $ (5,677 )
Costs and expenses   2,328       831       (1,177 )     (1,774 )     208       (2,686 )     (1,696 )     (988 )     (5,370 )
Operating income   453       868       596       706       2,623       267       (210 )     (364 )     (307 )
Foreign currency gains
  (losses) in other income
  366       705       1,431       (1,185 )     1,317       (590 )     (377 )     298       (669 )
  $ 819     $ 1,573     $ 2,027     $ (479 )   $ 3,940     $ (323 )   $ (587 )   $ (66 )   $ (976 )

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     3rd Qtr     YTD  
Operating income $ (360 )   $ 359     $ 828     $ 1,066     $ 1,893     $ 981     $ 438     $ 51     $ 1,470  
Foreign currency gains
  (losses) in
  other income
  210       1,120       1,572       (1,074 )     1,828       (182 )     (127 )     437       128  
Total impact of
  changes in the
  Indian Rupee
$ (150 )   $ 1,479     $ 2,400     $ (8 )   $ 3,721     $ 799     $ 311     $ 488     $ 1,598  

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     3rd Qtr     YTD  
Interest income $ 347     $ 241     $ 201     $ 278     $ 1,067     $ 231     $ 178     $ 191     $ 600  
Foreign currency gains (losses)   366       705       1,431       (1,185 )     1,317       (590 )     (377 )     298       (669 )
Other non-operating
  income (expense)
  8       40       (94 )     6       (40 )     (12 )     128       321       437  
Total other income (loss) $ 721     $ 986     $ 1,538     $ (901 )   $ 2,344     $ (371 )   $ (71 )   $ 810     $ 368  

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

  2018     2019                        
  1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     YTD
Capital expenditures $ 2,174     $ 1,881     $ 1,481     $ 1,770     $ 7,306     $ 616     $ 2,689     $ 8,053     $ 11,358

6.   Stock Repurchase Activity (in thousands):

  2018     2019  
  1st Qtr     2nd Qtr     3rd Qtr     4th Qtr     Full Year     1st Qtr     2nd Qtr     3rd Qtr     YTD  
Shares purchased under publicly-announced buy-back program   1,158       1,082       389       519       3,148       464       302       429       1,195  
Shares withheld for taxes due upon vesting of restricted stock   111       1       3       -       115       106       1       4       111  
Total shares purchased   1,269       1,083       392       519       3,263       570       303       433       1,306  
                                                                       
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     $ 35,955     $ 80,875  
Total cash paid for shares withheld for taxes due upon vesting of restricted stock   5,843       23       175       7       6,048       5,233       85       266       5,584  
Total cash paid for shares repurchased $ 55,815     $ 47,899     $ 20,844     $ 24,764     $ 149,322     $ 30,160     $ 20,078     $ 36,221     $ 86,459  

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
    September 30,
2019
Remaining Performance Obligations $ 33,999     $ 58,434     $ 64,175     $ 76,990     $ 100,532     $ 120,403     $ 152,043


Contact:   Matt Humphries, CFA   Rick Fernandez
    Senior Director,
Investor Relations
  Senior Manager, 
Corporate Communications
    Manhattan Associates, Inc.   Manhattan Associates, Inc.
    678-597-6574   678-597-6988
    mhumphries@manh.com   rfernandez@manh.com


 

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