Posts Record Cloud Revenue & RPO Bookings

ATLANTA, Feb. 02, 2021 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $147.1 million for the fourth quarter ended December 31, 2020. GAAP diluted earnings per share for Q4 2020 was $0.32 compared to $0.26 for Q4 2019. Non-GAAP adjusted diluted earnings per share for Q4 2020 was $0.45 compared to $0.40 in Q4 2019.

“Manhattan Associates ended the year strong posting fourth quarter results that exceeded our expectations,” said Manhattan Associates president and CEO Eddie Capel. “Global demand and bookings momentum for our Cloud solutions is robust, positioning us well for 2021 and beyond.”

“The combination of favorable secular trends and the COVID-19 pandemic has helped emphasize the power of adaptable supply chain and omnichannel commerce solutions.” Mr. Capel continued, “this affirms our industry thought leadership and has accelerated the convergence of our cloud strategy with the needs of the market.”

“We are enthusiastic about the trajectory of our cloud transition and ability to drive customer success. With macro volatility elevated, we remain committed to prudently managing the business and investing in innovation to drive long-term, sustainable growth,” Mr. Capel concluded.

FOURTH QUARTER 2020 FINANCIAL SUMMARY:

  • Consolidated total revenue was $147.1 million for Q4 2020, compared to $152.9 million for Q4 2019.
    • Cloud subscription revenue was $23.0 million for Q4 2020, compared to $15.7 million for Q4 2019.
    • License revenue was $9.6 million for Q4 2020, compared to $9.2 million for Q4 2019.
    • Services revenue was $70.9 million for Q4 2020, compared to $86.3 million for Q4 2019.
  • GAAP diluted earnings per share was $0.32 for Q4 2020, compared to $0.26 for Q4 2019.
  • Adjusted diluted earnings per share, a non-GAAP measure, was $0.45 for Q4 2020, compared to $0.40 for Q4 2019.
  • GAAP operating income was $28.2 million for Q4 2020, compared to $25.1 million for Q4 2019.
  • Adjusted operating income, a non-GAAP measure, was $37.6 million for Q4 2020, compared to $33.4 million for Q4 2019.
  • Cash flow from operations was $38.0 million for Q4 2020, compared to $34.6 million for Q4 2019. Days Sales Outstanding was 68 days at December 31, 2020, compared to 65 days at September 30, 2020.
  • Cash and investments totaled $204.7 million at December 31, 2020, compared to $166.3 million at September 30, 2020.
  • In April 2020, our Board of Directors suspended our share repurchase program because of COVID-19-related considerations. Accordingly, during Q4 2020, the Company did not repurchase any shares of Manhattan Associates common stock under our share repurchase program.

FULL YEAR 2020 FINANCIAL SUMMARY:

  • Consolidated revenue for the twelve months ended December 31, 2020, was $586.4 million, compared to $617.9 million for the twelve months ended December 31, 2019.
    • Cloud subscription revenue was $79.8 million for the twelve months ended December 31, 2020, compared to $46.8 million for the twelve months ended December 31, 2019.
    • License revenue was $38.3 million for the twelve months ended December 31, 2020, compared to $48.9 million for the twelve months ended December 31, 2019. 
    • Services revenue was $303.6 million for the twelve months ended December 31, 2020, compared to $360.5 million for the twelve months ended December 31, 2019.
  • GAAP diluted earnings per share for the twelve months ended December 31, 2020, was $1.36, compared to $1.32 for the twelve months ended December 31, 2019.  
  • Adjusted diluted earnings per share, a non-GAAP measure, was $1.76 for the twelve months ended December 31, 2020, compared to $1.74 for the twelve months ended December 31, 2019.
  • GAAP operating income was $114.1 million for the twelve months ended December 31, 2020, compared to $115.9 million for the twelve months ended December 31, 2019.
  • Adjusted operating income, a non-GAAP measure, was $147.8 million for the twelve months ended December 31, 2020, compared to $148.2 million for the twelve months ended December 31, 2019. 
  • Cash flow from operations was $140.9 million for the twelve months ended December 31, 2020, compared to $146.9 million for the twelve months ended December 31, 2019.
  • During the twelve months ended December 31, 2020, the Company repurchased 337,007 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $25.0 million. Those repurchases occurred during Q1 only due to the suspension of our share repurchase program in April 2020; at its January 28, 2021, meeting, the Board lifted that suspension and reauthorized the repurchase of up to $50 million of shares during 2021.

2021 GUIDANCE

Manhattan Associates provides the following revenue, operating margin and diluted earnings per share guidance for the full year 2021:

   
  Guidance Range - 2021 Full Year 
 ($'s in millions, except operating margin and EPS)$ Range  % Growth Range 
                
 Total revenue$595  $625  1% 7% 
                
 Operating Margin:              
 GAAP operating margin 13.7%  15.0%       
 Equity-based compensation 6.8%  6.5%       
 Adjusted operating margin(1) 20.5%  21.5%       
                
 Diluted earnings per share (EPS):              
 GAAP EPS$0.96  $1.11  -29% -18% 
 Equity-based compensation 0.57   0.57        
 Excess tax benefit on stock vesting(2) (0.09)  (0.09)       
 Adjusted EPS(1)$1.44  $1.59  -18% -10% 
                
 (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. 
 (2) Excess tax benefit on stock vesting expected to occur primarily in the first quarter of 2021. 
                

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. See our cautionary note regarding “forward-looking statements” below. We note in particular that the severity, duration and ultimate impact of the COVID-19 pandemic are difficult to predict at this time. In addition, those statements 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 the investor relations section of the Manhattan Associates website at ir.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 fourth quarter and twelve months ended December 31, 2020, financial results will be held today, February 2, 2021, at 4:30 p.m. Eastern Time. The Company will also discuss its business and expectations for the year and next quarter in additional detail during the call. We invite investors to a live webcast of the conference call through the Investor Relations section of the Manhattan Associates website at ir.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 9296408 or via the web at ir.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates’ first quarter 2021 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 twelve months ended December 31, 2020.

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. 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 “2021 Guidance,” any statements about the future effect of the COVID-19 pandemic on our business, customers or the global economy, our business prospects following the pandemic, 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 of those 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 those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: the risk that the duration and severity of the COVID-19 pandemic, and its ultimate effects on the global economy, our customers and our business, may be worse than expected; risks related to transitioning our business from a traditional perpetual license software company (generally hosted by our customers on their own premises and equipment) to a subscription/cloud-based software-as-a service 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 and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products’ technology and customer implementations; and the other risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, 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
December 31,		  Year Ended
December 31,		 
 2020  2019  2020  2019 
 (unaudited)  (unaudited)         
Revenue:               
Cloud subscriptions$23,003  $15,721  $79,830  $46,831 
Software license 9,635   9,234   38,284   48,855 
Maintenance 38,801   38,045   147,748   149,230 
Services 70,915   86,308   303,569   360,516 
Hardware 4,728   3,621   16,941   12,517 
Total revenue 147,082   152,929   586,372   617,949 
Costs and expenses:               
Cost of software license 1,221   663   2,894   2,626 
Cost of cloud subscriptions, maintenance and services 65,611   71,190   266,993   282,341 
Research and development 20,563   21,784   84,276   87,608 
Sales and marketing 13,562   15,434   47,758   56,860 
General and administrative 15,778   16,512   61,444   64,603 
Depreciation and amortization 2,150   2,277   8,946   7,987 
Total costs and expenses 118,885   127,860   472,311   502,025 
Operating income 28,197   25,069   114,061   115,924 
Other (loss) income, net (656)  (215)  (285)  153 
Income before income taxes 27,541   24,854   113,776   116,077 
Income tax provision 7,001   8,096   26,536   30,315 
Net income$20,540  $16,758  $87,240  $85,762 
                
Basic earnings per share$0.32  $0.26  $1.37  $1.33 
Diluted earnings per share$0.32  $0.26  $1.36  $1.32 
                
Weighted average number of shares:               
Basic 63,527   63,822   63,538   64,397 
Diluted 64,484   64,807   64,333   65,103 




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

  Three Months Ended
December 31,		  Year Ended
December 31,		 
  2020  2019  2020  2019 
                 
Operating income $28,197  $25,069  $114,061  $115,924 
Equity-based compensation (a)  9,287   8,195   33,355   31,841 
Purchase amortization (c)  105   107   429   430 
Adjusted operating income (Non-GAAP) $37,589  $33,371  $147,845  $148,195 
                 
                 
Income tax provision $7,001  $8,096  $26,536  $30,315 
Equity-based compensation (a)  1,132   (1,166)  3,679   4,627 
Tax benefit of stock awards vested (b)  (31)  10   3,830   156 
Purchase amortization (c)  24   28   105   107 
Adjusted income tax provision (Non-GAAP) $8,126  $6,968  $34,150  $35,205 
                 
                 
Net income $20,540  $16,758  $87,240  $85,762 
Equity-based compensation (a)  8,155   9,361   29,676   27,214 
Tax benefit of stock awards vested (b)  31   (10)  (3,830)  (156)
Purchase amortization (c)  81   79   324   323 
Adjusted net income (Non-GAAP) $28,807  $26,188  $113,410  $113,143 
                 
                 
Diluted EPS $0.32  $0.26  $1.36  $1.32 
Equity-based compensation (a)  0.13   0.14   0.46   0.42 
Tax benefit of stock awards vested (b)  -   -   (0.06)  - 
Purchase amortization (c)  -   -   -   - 
Adjusted diluted EPS (Non-GAAP) $0.45  $0.40  $1.76  $1.74 
                 
Fully diluted shares  64,484   64,807   64,333   65,103 

(a)   Adjusted results exclude all equity-based compensation to facilitate comparison with our peers and because it typically does not require cash settlement. As explained in our Current Report on Form 8-K filed today with the SEC, we do not include this expense when assessing our operating performance. We do not receive a GAAP tax benefit for a portion of our equity-based compensation, mainly due to Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives. The Tax Cuts and Jobs Act further increased those limitations. Thus, in the fourth quarter of 2019, we changed from applying an overall effective rate in our tax adjustment to using the actual tax benefit for equity-based compensation included in our GAAP results after considering the impact of non-deductible equity-based compensation.

  Three Months Ended
December 31,		  Year Ended
December 31,		 
  2020  2019  2020  2019 
                 
Cost of services $2,850  $2,346  $10,156  $9,298 
Research and development  1,884   1,565   6,810   6,126 
Sales and marketing  976   878   3,454   3,311 
General and administrative  3,577   3,406   12,935   13,106 
Total equity-based compensation $9,287  $8,195  $33,355  $31,841 

(b)   Adjustments represent the excess tax benefits and tax deficiencies of the equity awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible on our tax return for an equity award 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.




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

  December 31,
2020		  December 31,
2019		 
         
ASSETS        
Current Assets:        
Cash and cash equivalents $204,705  $110,678 
Short-term investments  -   - 
Accounts receivable, net of allowance of $3,497 and $2,826 at December 31, 2020 and December 31, 2019, respectively  109,202   100,937 
Prepaid expenses and other current assets  20,134   20,426 
Total current assets  334,041   232,041 
         
Property and equipment, net  17,903   22,725 
Operating lease right-of-use assets  31,470   35,896 
Goodwill, net  62,252   62,237 
Deferred income taxes  5,760   6,814 
Other assets  13,986   12,566 
Total assets $465,412  $372,279 
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
Current liabilities:        
Accounts payable $17,805  $20,561 
Accrued compensation and benefits  41,962   45,991 
Accrued and other liabilities  21,181   19,325 
Deferred revenue  114,164   94,371 
Income taxes payable  1,874   1,348 
Total current liabilities  196,986   181,596 
         
Operating lease liabilities, long-term  27,843   32,416 
Other non-current liabilities  21,686   15,989 
         
Shareholders' equity:        
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or
outstanding at December 31, 2020 and December 31, 2019		  -   - 
Common stock, $.01 par value; 200,000,000 shares authorized; 63,527,186 and
63,456,986 shares issued and outstanding at December 31, 2020 and
December 31, 2019, respectively		  635   635 
Retained earnings  236,524   159,490 
Accumulated other comprehensive loss  (18,262)  (17,847)
Total shareholders' equity  218,897   142,278 
Total liabilities and shareholders' equity $465,412  $372,279 




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

  Year Ended December 31,
 
  2020  2019 
         
Operating activities:        
Net income $87,240  $85,762 
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization  8,946   7,987 
Equity-based compensation  33,355   31,841 
Loss (Gain) on disposal of equipment  21   (429)
Deferred income taxes  1,036   (1,406)
Unrealized foreign currency loss (gain)  897   (708)
Changes in operating assets and liabilities:        
    Accounts receivable, net  (6,592)  (1,065)
    Other assets  (971)  (8,924)
    Accounts payable, accrued and other liabilities  (3,097)  20,812 
    Income taxes  1,886   1,180 
    Deferred revenue  18,164   11,858 
Net cash provided by operating activities  140,885   146,908 
         
Investing activities:        
Purchases of property and equipment  (2,730)  (15,193)
Net maturities of short-term investments  -   1,439 
Net cash used in investing activities  (2,730)  (13,754)
         
Financing activities:        
Purchase of common stock  (43,561)  (121,487)
Net cash used in financing activities  (43,561)  (121,487)
         
Foreign currency impact on cash  (567)  (115)
         
Net change in cash and cash equivalents  94,027   11,552 
Cash and cash equivalents at beginning of period  110,678   99,126 
Cash and cash equivalents at end of period $204,705  $110,678 




MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

1.   Corporate Response to COVID-19:

Regarding the impact of the novel coronavirus disease (“COVID-19”) pandemic, we remain cautious about the global recovery, which we expect to be slow and protracted. In 2020, we experienced solid demand for our cloud-based supply chain and omnichannel commerce solutions and our competitive win rates remain strong. In May, we launched Manhattan Active® Warehouse Management, the next generation of Warehouse Management solutions. We have rearchitected our warehouse management solution from the ground up as a cloud-native, microservices based, versionless application. The reception has been positive and pipeline opportunities continue to build. Our solutions are mission critical, supporting large and complex global supply chains. While we are experiencing strong demand and expect continued growth for our Cloud solutions, sales cycles could be extended as customers and prospects continue to evaluate our industry leading, modern solutions, including Manhattan Active Warehouse Management. Our Professional Services revenue for the year ended December 31, 2020, is approximately 16% lower, and excluding billed travel, approximately 13% lower than the year ended December 31, 2019, as clients delayed projects due to COVID-19. We have had no notable cancellations in 2020. For 2021, we expect Services revenue to grow fueled by Cloud revenue growth. We expect Q1 2021 Services revenue to decrease against an all-time record Q1 2020 comparison. While COVID-19 could create some near-term fluctuations, we are forecasting for improving year over year services growth for the remaining balance of 2021.

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

 2019  2020 
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
GAAP Diluted EPS$0.32  $0.32  $0.42  $0.26  $1.32  $0.35  $0.30  $0.39  $0.32  $1.36 
Adjustments to GAAP:                                       
Equity-based compensation 0.08   0.10   0.09   0.14   0.42   0.10   0.10   0.13   0.13   0.46 
Tax benefit of stock awards vested -  -  -  -   -   (0.06)  -   -   -   (0.06)
Purchase amortization -   -   -   -   -   -   -   -   -   - 
Adjusted Diluted EPS$0.41  $0.42  $0.51  $0.40  $1.74  $0.40  $0.40  $0.51  $0.45  $1.76 
Fully Diluted Shares 65,204   65,093   64,992   64,807   65,103   64,342   64,126   64,427   64,484   64,333 

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

 2019  2020 
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Revenue: 
Americas$114,873  $121,778  $132,028  $121,155  $489,834  $123,146  $107,368  $121,168  $114,257  $465,939 
EMEA26,288  25,043  22,978  23,964  98,273  24,313  21,558  21,721  25,990  93,582 
APAC7,243  7,520  7,269  7,810  29,842  6,444  6,704  6,868  6,835  26,851 
 $148,404  $154,341  $162,275  $152,929  $617,949  $153,903  $135,630  $149,757  $147,082  $586,372 
                              
GAAP Operating Income: 
Americas$18,051  $16,826  $26,310  $17,437  $78,624  $16,282  $18,984  $27,296  $18,547  $81,109 
EMEA7,734  8,057  6,371  4,772  26,934  6,313  5,515  5,319  7,490  24,637 
APAC2,491  2,699  2,316  2,860  10,366  1,601  2,193  2,361  2,160  8,315 
 $28,276  $27,582  $34,997  $25,069  $115,924  $24,196  $26,692  $34,976  $28,197  $114,061 
                              
Adjustments (pre-tax): 
Americas:                             
Equity-based
compensation		$7,182  $8,462  $8,002  $8,195  $31,841  $7,564  $7,492  9,012  $9,287  $33,355 
Purchase amortization108  107  108  107  430  107  110  107  105  429 
 $7,290  $8,569  $8,110  $8,302  $32,271  $7,671  $7,602  $9,119  $9,392  $33,784 
                              
Adjusted non-GAAP Operating Income: 
Americas$25,341  $25,395  $34,420  $25,739  $110,895  $23,953  $26,586  $36,415  $27,939  $114,893 
EMEA7,734  8,057  6,371  4,772  26,934  6,313  5,515  5,319  7,490  24,637 
APAC2,491  2,699  2,316  2,860  10,366  1,601  2,193  2,361  2,160  8,315 
 $35,566  $36,151  $43,107  $33,371  $148,195  $31,867  $34,294  $44,095  $37,589  $147,845 
                              

4.   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):

 2019  2020 
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Revenue$(2,419) $(1,906) $(1,352) $(670) $(6,347) $(988) $(777) $1,165  $1,946  $1,346 
Costs and expenses (2,686)  (1,696)  (988)  (346)  (5,716)  (996)  (1,430)  291   918   (1,217)
Operating income 267   (210)  (364)  (324)  (631)  8   653   874   1,028   2,563 
Foreign currency gains (losses) in other income (590)  (377)  298   (325)  (994)  1,348   (193)  (913)  (639)  (397)
 $(323) $(587) $(66) $(649) $(1,625) $1,356  $460  $(39) $389  $2,166 

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):

 2019  2020 
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Operating income$981  $438  $51  $(140) $1,330  $308  $895  $601  $445  $2,249 
Foreign currency gains (losses) in other income (182)  (127)  437   284   412   1,450   262   (1,165)  (381)  166 
Total impact of changes in the Indian Rupee$799  $311  $488  $144  $1,742  $1,758  $1,157  $(564) $64  $2,415 

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

 2019  2020 
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Interest income$231  $178  $191  $115  $715  $68  $28  $8  $(6) $98 
Foreign currency gains
(losses)		 (590)  (377)  298   (325)  (994)  1,348   (193)  (913)  (639)  (397)
Other non-operating
income (expense)		 (12)  128   321   (5)  432   4   7   14   (11)  14 
Total other income (loss)$(371) $(71) $810  $(215) $153  $1,420  $(158) $(891) $(656) $(285)

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

 2019  2020 
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Capital expenditures$616  $2,689  $8,053  $3,835  $15,193  $1,245  $507  $176  $802  $2,730 

7.   Stock Repurchase Activity (in thousands):

 2019  2020 
 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
Shares purchased under publicly announced buy-back program 464   302   429   445   1,640   337   -   -   -   337 
Shares withheld for taxes due upon vesting of restricted stock 106   1   4   1   112   219   2   4   -   225 
Total shares purchased 570   303   433   446   1,752   556   2   4   -   562 
                                        
Total cash paid for shares purchased under publicly announced buy-back program$24,927  $19,993  $35,955  $34,992  $115,867  $25,000  $-  $-  $-  $25,000 
Total cash paid for shares withheld for taxes due upon vesting of restricted stock 5,233   85   266   36   5,620   18,032   123   368   38   18,561 
Total cash paid for shares repurchased$30,160  $20,078  $36,221  $35,028  $121,487  $43,032  $123  $368  $38  $43,561 

8.   Remaining Performance Obligations

Under the revenue recognition standard that became effective in 2018, 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, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020
Remaining Performance Obligations$100,532 $120,403 $152,043 $171,665 $202,793 $225,470 $257,287 $308,761



Contact: Michael Bauer Rick Fernandez
  Senior Director,  
Investor Relations		 Director, 
Corporate Communications
  Manhattan Associates, Inc. Manhattan Associates, Inc.
  678-597-7538 678-597-6988
  mbauer@manh.com rfernandez@manh.com

 


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