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Press release content from Business Wire. The AP news staff was not involved in its creation.

American Software Reports First Quarter of Fiscal Year 2022 Results

August 25, 2021 GMT

ATLANTA--(BUSINESS WIRE)--Aug 25, 2021--

American Software, Inc. (NASDAQ: AMSWA) today reported preliminary financial results for the first quarter of fiscal year 2022.

Key First Quarter Financial Highlights:

  • Subscription fees were $9.8 million for the quarter ended July 31, 2021, a 54% increase compared to $6.4 million for the same period last year, and Software license revenues were $0.5 million compared to $0.8 million for the same period last year, reflecting our continued transition to the Software as a Service (SaaS) engagement model.
  • Cloud Services Annual Contract Value (ACV) increased approximately 49% to $40.9 million for the quarter ended July 31, 2021 compared to $27.5 million during the same period of the prior year.
  • Total revenues for the quarter ended July 31, 2021 increased 7% to $29.3 million, compared to $27.2 million for the same period of the prior year.
  • Recurring revenue streams for Maintenance and Cloud Subscriptions were 66% of total revenues in the quarter ended July 31, 2021 compared to 61% in the same period of the prior year.
  • Maintenance revenues for the quarter ended July 31, 2021 decreased 8% to $9.5 million compared to $10.3 million for the same period last year.
  • Professional services and other revenues for the quarter ended July 31, 2021 decreased 3% to $9.5 million compared to $9.8 million for the same period last year.
  • Operating earnings for the quarter ended July 31, 2021 increased 100% to $1.8 million compared to $0.9 million for the same period last year.
  • GAAP net earnings for the quarter ended July 31, 2021 increased 45% to $2.9 million or $0.09 per fully diluted share compared to $2.0 million or $0.06 per fully diluted share for the same period last year.
  • Adjusted net earnings for the quarter ended July 31, 2021, which excludes non-cash stock-based compensation expense and amortization of acquisition-related intangibles, increased 28% to $3.6 million or $0.11 per fully diluted share compared to $2.8 million or $0.09 per fully diluted share for the same period last year.
  • EBITDA increased by 13% to $2.9 million for the quarter ended July 31, 2021 compared to $2.6 million for the same period last year.
  • Adjusted EBITDA increased by 18% to $3.7 million for the quarter ended July 31, 2021 compared to $3.1 million for the same period last year. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax (benefit) / expense and non-cash stock-based compensation expense.

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The overall financial condition of the Company remains strong, with cash and investments of approximately $108.1 million, an increase of approximately $15.1 million when compared to July 31, 2020, and no debt as of July 31, 2021. During the first quarter of fiscal year 2022, the Company paid shareholder dividends of approximately $3.6 million.

“Our fiscal year 2022 is off to a solid start with a 49% increase in Cloud Services ACV when compared to last year,” said Allan Dow, CEO and president of American Software. “We continue to see increasing adoption of cloud-based supply chain transformation solutions, resulting in accelerating backlog growth as measured by our Remaining Performance Obligations (RPO), which increased 63% to $122 million in the first quarter when compared to last year. Our pipeline remains robust, leaving us well positioned to exhibit continued revenue growth over the remainder of the year.”

Key first quarter of fiscal year 2022 highlights:

Customers & Channels

  • Notable new and existing customers placing orders with the Company in the first quarter include:, Berlin Packaging, Destination XL Group, Inc., Electrical Home-Aids Pty Limited (Godfrey’s), Fantastic Furniture Pty Ltd, Herbalife International of America, Inc., Omega Pharma International Nv, TBC DE Mexico S.A. DE C.V., Trinseo S.A., and WEG Equipamentos Elétricos S.A.
  • During the quarter, SaaS subscription and/or software license agreements were signed with customers located in the following 8 countries: Australia, Belgium, Brazil, Canada, Ireland, Mexico, United Kingdom, and United States.
  • Logility, Inc. and Demand Management, Inc., wholly owned subsidiaries of the Company, were recognized for Supply & Demand Chain Executive’s 2021 Top Supply Chain Projects. Logility was recognized as a result of recent work with customer, Berlin Packaging.
  • During the quarter, Logility announced a live webcast that featured a panel of experts highlighting how advanced supply chain planning unites the extended enterprise. The webinar featured experts including Angie Taylor, vice president and chief commercial officer, Plastic Packaging Technologies; Joshua Greenbaum, Enterprise Applications Consulting (EAC) founder; and Shawn Reynolds, executive vice president, marketing, Logility.

Company and Technology

  • Logility and Demand Management, each announced their recognition as a 2021 Inbound Logistics Top 100 Logistics IT Providers. This was Logility’s 24th consecutive year being honored, and Demand Management’s 12th time.
  • Also during the quarter, Logility announced its partnership with Tata Technologies to provide digital transformation solutions for the global supply chain. The collaboration offers solutions to its customers across Automotive, Industrial Heavy Machinery, Aerospace, Industrial, and Medical devices verticals to help them achieve agility and improved resilience in the new normal.
  • Logility announced that Clarkston Consulting, a provider of management and technology consulting services, is now a member of its global partner ecosystem to help customers accelerate their digital supply chain transformation.
  • Logility announced its partnership with Microsoft to make its comprehensive suite of solutions available through Microsoft Azure. Now, Azure customers can gain access to the Logility® Digital Supply Chain Platform, which allows these organizations to leverage new opportunities, respond to changing market dynamics and more profitably manage their complex global businesses.

About American Software, Inc.

Atlanta-based American Software, Inc. ( NASDAQ: AMSWA ), through its operating entities, delivers an innovative technical platform with AI-powered capabilities for supply chain management and advanced retail planning that is accelerating digital supply chain optimization from product concept to customer availability. Logility, Inc. is helping large enterprise companies transform their supply chain operations to gain a competitive advantage. Recognized for its high-touch approach to customer service, rapid implementations and industry-leading return on investment (ROI), Logility customers include Big Lots, Husqvarna Group, Parker Hannifin, Sonoco Products and Red Wing Shoe Company. Demand Management, Inc. delivers affordable, easy-to-use supply chain planning solutions designed to increase forecast accuracy, improve customer service and reduce inventory to maximize profits and lower costs. Demand Management serves customers such as Siemens Healthcare, AutomationDirect.com and Newfoundland Labrador Liquor Corporation. New Generation Computing, Inc. powers the digital supply chain to enable apparel brand owners and retailers to maximize revenue and profit by accelerating lead times, streamlining product development, and optimizing sourcing and distribution. NGC customers include Brooks Brothers, Carter’s, Destination XL, Fanatics, Foot Locker, Jockey International, Lacoste and Spanx. The comprehensive American Software supply chain and retail planning portfolio delivered in the cloud includes advanced analytics, supply chain visibility, demand, inventory and replenishment planning, Sales and Operations Planning (S&OP), Integrated Business Planning (IBP), supply and inventory optimization, manufacturing planning and scheduling, retail merchandise and assortment planning and allocation, product lifecycle management (PLM), sourcing management, vendor quality and compliance, and product traceability. For more information about American Software, please visit www.amsoftware.com, call (404) 364-7615 or email kliu@amsoftware.com.

Operating and Non-GAAP Financial Measures

The Company includes operating measures (ACV) and other non-GAAP financial measures (EBITDA, adjusted EBITDA, adjusted net earnings and adjusted net earnings per share) in the summary financial information provided with this press release as supplemental information relating to its operating results. This financial information is not in accordance with, or an alternative for, GAAP-compliant financial information and may be different from the operating or non-GAAP financial information used by other companies. The Company believes that this presentation of ACV, EBITDA, adjusted EBITDA, adjusted net earnings and adjusted net earnings per share provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations. ACV is a forward-looking operating measure used by management to better understand cloud services (SaaS and other related cloud services) revenue trends within the Company’s business, as it reflects the Company’s current estimate of revenue to be generated under existing customer contracts in the forward 12-month period. EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, and income tax (benefit)/expense. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax (benefit)/expense and non-cash stock-based compensation expense.

Forward Looking Statements

This press release contains forward-looking statements that are subject to substantial risks and uncertainties. There are a number of factors that could cause actual results or performance to differ materially from what is anticipated by statements made herein. These factors include, but are not limited to, continuing U.S. and global economic uncertainty and the timing and degree of business recovery; the irregular pattern of the Company’s revenues; dependence on particular market segments or customers; competitive pressures; market acceptance of the Company’s products and services; technological complexity; undetected software errors; potential product liability or warranty claims; risks associated with new product development; the challenges and risks associated with integration of acquired product lines, companies and services; uncertainty about the viability and effectiveness of strategic alliances; the Company’s ability to satisfy in a timely manner all Securities and Exchange Commission (SEC) required filings and the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the rules and regulations adopted under that Section; as well as a number of other risk factors that could affect the Company’s future performance. For further information about risks the Company could experience as well as other information, please refer to the Company’s current Form 10-K and other reports and documents subsequently filed with the SEC. For more information, contact: Kevin Liu, American Software, Inc., (626) 657-0013 or email kliu@amsoftware.com.

Logility® is a registered trademark of Logility, Inc. Other products mentioned in this document are registered, trademarked or service marked by their respective owners.

 

AMERICAN SOFTWARE, INC.

Consolidated Statements of Operations Information

(In thousands, except per share data, unaudited)

 

First Quarter Ended

July 31,

 

2021

 

 

2020

 

Pct Chg.

Revenues:

Subscription fees

$

9,788

 

$

6,363

 

54

%

License fees

 

492

 

 

787

 

(37

%)

Professional services & other

 

9,529

 

 

9,814

 

(3

%)

Maintenance

 

9,462

 

 

10,314

 

(8

%)

Total Revenues

 

29,271

 

 

27,278

 

7

%

 

Cost of Revenues:

Subscription services

 

3,224

 

 

2,759

 

17

%

License fees

 

159

 

 

675

 

(76

%)

Professional services & other

 

7,010

 

 

7,830

 

(10

%)

Maintenance

 

1,974

 

 

1,773

 

11

%

Total Cost of Revenues

 

12,367

 

 

13,037

 

(5

%)

Gross Margin

 

16,904

 

 

14,241

 

19

%

Operating expenses:

Research and development

 

4,424

 

 

4,340

 

2

%

Less: capitalized development

 

-

 

 

(245

)

(100

%)

Sales and marketing

 

6,120

 

 

4,744

 

29

%

General and administrative

 

4,534

 

 

4,464

 

2

%

Amortization of acquisition-related intangibles

 

53

 

 

53

 

0

%

 

Total Operating Expenses

 

15,131

 

 

13,356

 

13

%

Operating Earnings

 

1,773

 

 

885

 

100

%

Interest Income & Other, Net

 

437

 

 

1,332

 

(67

%)

Earnings Before Income Taxes

 

2,210

 

 

2,217

 

0

%

Income Tax (Benefit)/Expense

 

(737

)

 

183

 

nm

Net Earnings

$

2,947

 

$

2,034

 

45

%

Earnings per common share: (1)

Basic

$

0.09

 

$

0.06

 

50

%

Diluted

$

0.09

 

$

0.06

 

50

%

 

Weighted average number of common shares outstanding:

Basic

 

33,053

 

 

32,339

 

Diluted

 

33,946

 

 

32,932

 

 

nm- not meaningful

 

AMERICAN SOFTWARE, INC.

NON-GAAP MEASURES OF PERFORMANCE

(In thousands, except per share data, unaudited)

 

First Quarter Ended

July 31,

 

2021

 

 

2020

 

Pct Chg.

NON-GAAP Operating Earnings:

Operating Earnings (GAAP Basis)

$

1,773

 

$

885

 

100

%

Amortization of acquisition-related intangibles

 

53

 

 

312

 

(83

%)

Stock-based compensation

 

775

 

 

546

 

42

%

NON-GAAP Operating Earnings:

 

2,601

 

 

1,743

 

49

%

 

Non-GAAP Operating Earnings, as a % of revenue

 

9

%

 

6

%

 

First Quarter Ended

July 31,

 

2021

 

 

2020

 

Pct Chg.

NON-GAAP EBITDA:

Net Earnings (GAAP Basis)

$

2,947

 

$

2,034

 

45

%

Income Tax (Benefit)/Expense

 

(737

)

 

183

 

(503

%)

Interest Income & Other, Net

 

(437

)

 

(1,332

)

(67

%)

Amortization of intangibles

 

956

 

 

1,530

 

(38

%)

Depreciation

 

174

 

 

150

 

16

%

EBITDA (earnings before interest, taxes, depreciation and amortization)

 

2,903

 

 

2,565

 

13

%

 

Stock-based compensation

 

775

 

 

546

 

42

%

Adjusted EBITDA

$

3,678

 

$

3,111

 

18

%

 

EBITDA, as a percentage of revenues

 

10

%

 

9

%

 

Adjusted EBITDA, as a percentage of revenues

 

13

%

 

11

%

 

 

First Quarter Ended

July 31,

 

2021

 

 

2020

 

Pct Chg.

NON-GAAP EARNINGS PER SHARE:

Net Earnings (GAAP Basis)

$

2,947

 

$

2,034

 

45

%

Amortization of acquisition-related intangibles (2)

 

42

 

 

286

 

(85

%)

Stock-based compensation (2)

 

621

 

 

501

 

24

%

Adjusted Net Earnings

$

3,610

 

$

2,821

 

28

%

 

Adjusted non-GAAP diluted earnings per share

$

0.11

 

$

0.09

 

22

%

 

First Quarter Ended

July 31,

 

2021

 

 

2020

 

Pct Chg.

NON-GAAP Earnings Per Share

Net Earnings (GAAP Basis)

$

0.09

 

$

0.06

 

50

%

Amortization of acquisition-related intangibles (2)

 

-

 

 

0.01

 

nm

Stock-based compensation (2)

 

0.02

 

 

0.02

 

0

%

Adjusted Net Earnings

 

0.11

 

$

0.09

 

22

%

 
 

First Quarter Ended

July 31,

 

2021

 

 

2020

 

Pct Chg.

Amortization of acquisition-related intangibles

Cost of license

$

-

 

$

258

 

(100

%)

Operating expenses

 

53

 

 

53

 

0

%

Total amortization of acquisition-related intangibles

$

53

 

$

311

 

(83

%)

 

Stock-based compensation

Cost of revenues

$

61

 

$

43

 

42

%

Research and development

 

68

 

 

25

 

172

%

Sales and marketing

 

143

 

 

66

 

117

%

General and administrative

 

503

 

 

412

 

22

%

Total stock-based compensation

$

775

 

$

546

 

42

%

(1) - Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A and Class B shares under the two-class method are $0.09 and $0.06 for the three months ended July 31, 2021 and 2020, respectively.

(2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three month period ended July 31, 2021 of 19.9%. Tax affected using the effective tax rate including a discrete item related to excess tax benefit for stock options for the three month period ended July 31, 2020 of 8.3%.

nm- not meaningful

 

 

AMERICAN SOFTWARE, INC.

Consolidated Balance Sheet Information

(In thousands)

(Unaudited)

 

 

 

July 31,

 

April 30,

 

 

 

 

 

2021

 

 

2021

 

 

 

Cash and Cash Equivalents

$

91,854

$

88,658

 

Short-term Investments

 

16,280

 

16,006

 

Accounts Receivable:

 

Billed

 

22,872

 

24,438

 

Unbilled

 

2,001

 

2,201

 

Total Accounts Receivable, net

 

24,873

 

26,639

 

Prepaids & Other

 

6,957

 

5,320

 

Current Assets

 

139,964

 

136,623

 

 

PP&E, net

 

3,556

 

3,428

 

Capitalized Software, net

 

3,864

 

4,767

 

Goodwill

 

25,888

 

25,888

 

Other Intangibles, net

 

307

 

360

 

Deferred Sales Commissions - Non-current

 

2,335

 

2,474

 

Lease Right of Use Assets

 

1,271

 

1,454

 

Other Non-current Assets

 

2,271

 

2,163

 

Total Assets

$

179,456

$

177,157

 

 

Accounts Payable

$

2,028

$

1,732

 

Accrued Compensation and Related costs

 

4,121

 

6,129

 

Dividend Payable

 

3,659

 

3,615

 

Operating Lease Obligation - Current

 

693

 

739

 

Other Current Liabilities

 

1,710

 

1,307

 

Deferred Revenues - Current

 

36,921

 

37,142

 

Current Liabilities

 

49,132

 

50,664

 

 

Operating Lease Obligation - Non-current

 

674

 

821

 

Deferred Tax Liability - Non-current

 

2,602

 

2,627

 

Other Long-term Liabilities

 

514

 

654

 

Long-term Liabilities

 

3,790

 

4,102

 

 

Total Liabilities

 

52,922

 

54,766

 

 

Shareholders' Equity

 

126,534

 

122,391

 

 

 

 

Total Liabilities & Shareholders' Equity

$

179,456

$

177,157

 

 

AMERICAN SOFTWARE, INC.

Condensed Consolidated Cashflow Information

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

First Quarter Ended

 

 

 

 

 

July 31,

 

 

 

 

 

 

2021

 

 

 

2020

 

 

 

 

Net cash provided by operating activities

$

3,034

 

$

1,479

 

 

Capitalized computer software development costs

 

-

 

 

(245

)

Purchases of property and equipment, net of disposals

 

(302

)

 

(118

)

 

Net cash used in investing activities

 

(302

)

 

(363

)

 

Dividends paid

 

(3,615

)

 

(3,547

)

Proceeds from exercise of stock options

 

4,079

 

 

2,383

 

 

Net cash provided by / (used in) financing activities

 

464

 

 

(1,164

)

 

Net change in cash and cash equivalents

 

3,196

 

 

(48

)

Cash and cash equivalents at beginning of period

 

88,658

 

 

79,814

 

 

Cash and cash equivalents at end of period

$

91,854

 

$

79,766

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20210825005726/en/

CONTACT: Vincent C. Klinges

Chief Financial Officer

American Software, Inc.

(404) 264-5477

KEYWORD: UNITED STATES NORTH AMERICA GEORGIA

INDUSTRY KEYWORD: OTHER MANUFACTURING TECHNOLOGY OTHER RETAIL TRANSPORT SPECIALTY MANUFACTURING SOFTWARE LOGISTICS/SUPPLY CHAIN MANAGEMENT RETAIL

SOURCE: American Software, Inc.

Copyright Business Wire 2021.

PUB: 08/25/2021 04:05 PM/DISC: 08/25/2021 04:06 PM

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