MANH - Manhattan Associates Reports Record Third Quarter 2019 Revenue

October, 22 2019 04:05 PM Manhattan Associates Inc.

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.

678-597-6574

678-597-6988

mhumphries@manh.com

rfernandez@manh.com

Company Name:	Manhattan Associates Inc.
Stock Symbol:	MANH
Market:	NASDAQ
Website:	manh.com

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