MANHATTAN ASSOCIATES INC - FORM 8-K/A - EX-99.1

Attached files

Attached files

MANHATTAN ASSOCIATES INC Reports

Also read

file	filename
8-K/A - FORM 8-K/A - MANHATTAN ASSOCIATES INC	d671187d8ka.htm

Exhibit 99.1

LOGO

Manhattan Associates Reports Record Fourth Quarter and Full Year 2013 Performance

ATLANTA – February 4, 2014 – Leading Supply Chain Commerce Solutions provider Manhattan Associates, Inc. (NASDAQ: MANH) today reported, on a post stock split adjusted basis, record non-GAAP adjusted diluted earnings per share for the fourth quarter ended December 31, 2013 of $0.24 compared to $0.18 in Q4 2012, on license revenue of $17.3 million and total revenue of $107.6 million. GAAP diluted earnings per share for Q4 2013 was $0.22 compared to $0.16 in Q4 2012.

“We’re very pleased with our 2013 fourth quarter and full year financial performance and operating metrics. As important, we significantly strengthened the company and improved our market position,” said Eddie Capel, Manhattan Associates President and CEO. “In the new omni-channel world of Supply Chain Commerce, we continue to make substantial investments in our people, products and technology to deliver innovation that meets the demands of this emerging market and extends our leadership role. Despite continuing uncertainties in the global macro environment, we expect to continue to strive to enhance our market position and improve our financial results throughout 2014.”

FOURTH QUARTER 2013 FINANCIAL SUMMARY:

•

On December 19, 2013, our Board of Directors approved a four-for-one stock split of the Company’s Common Stock, effected in the form of a stock dividend. All references made to shares or per share amounts have been restated to reflect the effect of this four-for-one stock split for all periods presented.

•

Adjusted diluted earnings per share, a non-GAAP measure, was $0.24 in Q4 2013, compared to $0.18 in Q4 2012.

•

GAAP diluted earnings per share was $0.22 in Q4 2013, compared to $0.16 in Q4 2012.

LOGO

•

Consolidated total revenue was $107.6 million in Q4 2013, compared to $95.4 million in Q4 2012. License revenue was $17.3 million in Q4 2013, compared to $14.4 million in Q4 2012.

•

Adjusted operating income, a non-GAAP measure, was $26.7 million in Q4 2013, compared to $21.7 million in Q4 2012.

•

GAAP operating income was $24.7 million in Q4 2013, compared to $19.1 million in Q4 2012.

•

Cash flow from operations was $23.0 million in Q4 2013, compared to $23.9 million in Q4 2012. Days Sales Outstanding was 61 days at December 31, 2013, compared to 58 days at September 30, 2013.

•

Cash and investments at December 31, 2013 was $133.0 million, compared to $125.9 million at September 30, 2013 and $103.0 million at December 31, 2012.

•

During the three months ended December 31, 2013, the Company repurchased 536,816 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total investment of $15.3 million. In January 2014, the Board of Directors approved raising the Company’s share repurchase authority to an aggregate of $50.0 million of the Company’s outstanding common stock.

FULL YEAR 2013 FINANCIAL SUMMARY:

•

Adjusted diluted earnings per share, a non-GAAP measure, was $0.92 for the twelve months ended December 31, 2013, compared to $0.71 for the twelve months ended December 31, 2012.

•

GAAP diluted earnings per share for the twelve months ended December 31, 2013 was $0.86, compared to $0.64 for the twelve months ended December 31, 2012.

•

Consolidated total revenue for the twelve months ended December 31, 2013 was $414.5 million, compared to $376.2 million for the twelve months ended December 31, 2012. License revenue was $62.4 million for the twelve months ended December 31, 2013, compared to $61.5 million for the twelve months ended December 31, 2012.

•

Adjusted operating income, a non-GAAP measure, was $108.6 million for the twelve months ended December 31, 2013, compared to $88.4 million for the twelve months ended December 31, 2012.

LOGO

•

GAAP operating income was $101.3 million for the twelve months ended December 31, 2013, compared to $80.1 million for the twelve months ended December 31, 2012.

•

During the twelve months ended December 31, 2013, the Company repurchased 2,831,520 shares of Manhattan Associates common stock under the share repurchase program authorized by the Board of Directors, for a total investment of $59.2 million.

SALES ACHIEVEMENTS:

•

Closing 5 contracts of $1.0 million or more in recognized license revenue during the fourth quarter of 2013, resulting in a total of 14 contracts of $1.0 million or more in recognized license revenue for the full year 2013.

•

Completing software license wins with new customers such as: Arcadia Group, Body Central Stores, Desigual, Elof Hansson Bygg-Gross, Kintetsu World Express South Africa, Orchestra-Premaman, National DCP, Scandinavskiy Dom, Santens Service, Woodcraft Supply, Zhejiang Geely Automobile, and Zohoor Alreef.

•

Expanding relationships with existing customers such as: AcuSport, Alidi, Assuramed, Belk, Cornerstone Brands, Devanlay SA (Lacoste), DOME, Dubois Chemical, eStore Logistics, Express Scripts, Heineken Enterprise, GENCO Holdings, Gopher Sport, HEB Grocery, HVHC, Integracolor, John Christner Trucking, Legacy Supply Chain Services, The Lehigh Group and Leslie-Locke, Monoprice, Movianto, MTD Products, Nestlé Nespresso, Northern Safety, O’Key, Performance Team Freight Systems, Phillips-Van Heusen, Servicios Empresariales Zimag, Simplehuman, Speed Commerce, Speed Global Services, Super Retail Group, Team Hardinger Transportation and Warehousing, True Religion Brand Jeans, Toys R Us, and Uhrenholt.

LOGO

2014 GUIDANCE

Manhattan Associates provides the following revenue and diluted earnings per share guidance for the full year 2014:


	Guidance Range—2014 Full Year
*($’ s in millions, except EPS)*	$ Range				% Growth Range
Total revenue	$	450	$	455		9	%	10	%
*Diluted earnings per share (EPS):*
Adjusted EPS⁽¹⁾—post stock split	$	1.01	$	1.03		10	%	12	%
GAAP EPS—post stock split	$	0.94	$	0.96		10	%	12	%

⁽¹⁾	Adjusted EPS is a Non-GAAP measure which excludes the impact of equity-based compensation

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, especially in the current uncertain economic environment. 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). Beginning the close of business on March 15, 2014, Manhattan Associates will observe a “Quiet Period” during which Manhattan Associates and its representatives will not comment concerning previously published financial expectations. Prior to the start of the Quiet Period, the public can continue to rely on the expectations published in this 2014 Guidance section as being Manhattan Associates’ current expectation on matters covered, unless Manhattan Associates publishes a notice stating otherwise. During the Quiet Period, previously published expectations should be considered historical only, speaking only as of or prior to the Quiet Period, and Manhattan Associates disclaims any obligation to update any previously published financial expectations during the Quiet Period. The Quiet Period will extend until publication of Manhattan Associates’ next quarterly earnings release, currently scheduled for the third full week of April 2014.

CONFERENCE CALL

The Company’s conference call regarding its fourth quarter and twelve months ended December 31, 2013 financial results will be held today, February 4, 2014, at 4:30 p.m. Eastern Time. Investors are invited to listen 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.

LOGO

For those who cannot listen to the live broadcast, a replay can be accessed shortly after the call by dialing +1.800.585.8367 in the U.S. and Canada, or +1.404.537.3406 outside the U.S., and entering the conference identification number 71205458 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’ first quarter 2014 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

The Company provides adjusted operating income, adjusted net income and adjusted diluted earnings per share in this press release as additional information regarding the Company’s operating results. These measures are not in accordance with – or an alternative to – GAAP, and may be different from non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share measures used by other companies. The Company believes that 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 important supplemental information in evaluating the operating results of its business, as distinct from results that include items that are not indicative of ongoing operating results, and because the Company’s competitors and 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 quarter and year ended December 31, 2013.

The non-GAAP adjusted operating income, adjusted net income and adjusted diluted earnings per share exclude the impact of acquisition-related costs and the amortization thereof and equity-based compensation – all net of income tax effects. Reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments are included in the supplemental information attached to this release.

LOGO

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates brings companies closer to their customers. We design, build and deliver market-leading Supply Chain Commerce Solutions that drive top line growth by converging front-end sales with back-end supply chain execution and efficiency. Our software, platform technology and unmatched experience help our customers around the world adapt to the challenges of the omni-channel 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 the information set forth under “2014 Guidance.” 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; delays in product development; competitive pressures; software errors; and the additional risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. 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.

###

LOGO

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,
	2013			2012		2013		2012
	(unaudited)			(unaudited)
Revenue:
Software license	$	17,267		$	14,398	$	62,416	$	61,494
Services		77,786			72,294		315,901		283,872
Hardware and other		12,546			8,667		36,201		30,882

Total revenue		107,599			95,359		414,518		376,248
Costs and expenses:
Cost of license		2,564			2,487		8,724		7,838
Cost of services		36,297			34,040		142,236		128,686
Cost of hardware and other		10,142			6,797		30,191		25,213
Research and development		11,135			10,951		44,549		44,704
Sales and marketing		11,374			10,805		44,559		45,622
General and administrative		9,952			9,668		37,147		38,474
Depreciation and amortization		1,468			1,497		5,825		5,638

Total costs and expenses		82,932			76,245		313,231		296,175

Operating income		24,667			19,114		101,287		80,073
Other income (loss), net		(118	)		534		1,822		965

Income before income taxes		24,549			19,648		103,109		81,038
Income tax provision		7,703			7,178		35,813		29,185

Net income	$	16,846		$	12,470	$	67,296	$	51,853


Basic earnings per share	$	0.22		$	0.16	$	0.88	$	0.66
Diluted earnings per share	$	0.22		$	0.16	$	0.86	$	0.64
Weighted average number of shares:
Basic		76,032			77,636		76,664		78,640
Diluted		77,256			79,652		77,932		81,084

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,
	2013		2012		2013		2012
Operating income	$	24,667	$	19,114	$	101,287	$	80,073
Equity-based compensation ^(b)		2,076		2,543		7,325		8,338
Purchase amortization ^(c)		1		1		6		6

Adjusted operating income (Non-GAAP)	$	26,744	$	21,658	$	108,618	$	88,417

Income tax provision	$	7,703	$	7,178	$	35,813	$	29,185
Equity-based compensation ^(b)		729		942		2,602		3,028
Purchase amortization ^(c)		—		—		2		2

Adjusted income tax provision (Non-GAAP)	$	8,432	$	8,120	$	38,417	$	32,215

Net income	$	16,846	$	12,470	$	67,296	$	51,853
Equity-based compensation ^(b)		1,347		1,601		4,723		5,310
Purchase amortization ^(c)		1		1		4		4

Adjusted net income (Non-GAAP)	$	18,194	$	14,072	$	72,023	$	57,167

Diluted EPS ^(a)	$	0.22	$	0.16	$	0.86	$	0.64
Equity-based compensation ^(a,b)		0.02		0.02		0.06		0.07
Purchase amortization ^(a,c)		—		—		—		—

Adjusted diluted EPS (Non-GAAP) ^(a)	$	0.24	$	0.18	$	0.92	$	0.71

Fully diluted shares		77,256		79,652		77,932		81,084

(a)

(b)	To be consistent with other companies in the software industry, we began to report adjusted results excluding all equity-based compensation. The equity-based compensation is included in the following GAAP operating expense lines for the three and twelve months ended December 31, 2013 and 2012:


	Three Months Ended December 31,				Year Ended December 31,
	2013		2012		2013		2012
Cost of services	$	354	$	334		1,235	$	824
Research and development		274		424		1,110		1,558
Sales and marketing		364		553		975		2,220
General and administrative		1,084		1,232		4,005		3,736

Total equity-based compensation	$	2,076	$	2,543		7,325	$	8,338

(c)

Adjustments represent purchased intangibles amortization from prior acquisitions. Such amortization is commonly excluded from GAAP net income by companies in our industry and we therefore exclude these amortization costs to provide more relevant and meaningful comparisons of our operating results to that of our competitors.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)


	December 31, 2013			December 31, 2012
ASSETS
Current Assets:
Cash and cash equivalents	$	124,375		$	96,737
Short-term investments		8,581			6,310
Accounts receivable, net of allowance of $3,156 and $6,235 in 2013 and 2012, respectively		71,136			62,102
Deferred income taxes		7,300			7,787
Prepaid expenses and other current assets		7,346			8,571

Total current assets		218,738			181,507
Property and equipment, net		14,342			15,650
Goodwill, net		62,272			62,265
Deferred income taxes		427			732
Other assets		2,049			1,659

Total assets	$	297,828		$	261,813

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	11,555		$	10,229
Accrued compensation and benefits		19,465			16,720
Accrued and other liabilities		12,225			12,233
Deferred revenue		53,812			47,935
Income taxes payable		7,131			4,024

Total current liabilities		104,188			91,141
Other non-current liabilities		12,054			9,163
Shareholders’ equity:
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2013 and 2012		—			—
Common stock, $.01 par value; 100,000,000 shares authorized;76,374,180 and 78,483,868 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively		764			785
Retained earnings		188,604			165,427
Accumulated other comprehensive loss		(7,782	)		(4,703	)

Total shareholders’ equity		181,586			161,509

Total liabilities and shareholders’ equity	$	297,828		$	261,813

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)


	Year Ended December 31,
	2013			2012
Operating activities:
Net income	$	67,296		$	51,853
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,825			5,638
Equity-based compensation		7,325			8,338
Loss (gain) on disposal of equipment		31			(46	)
Tax benefit of stock awards exercised/vested		6,980			9,901
Excess tax benefits from equity-based compensation		(6,637	)		(7,531	)
Deferred income taxes		3,165			5,388
Unrealized foreign currency loss		205			427
Changes in operating assets and liabilities:
Accounts receivable, net		(9,174	)		(5,446	)
Other assets		697			281
Accounts payable, accrued and other liabilities		3,164			(162	)
Income taxes		4,500			8,831
Deferred revenue		6,010			(2,201	)

Net cash provided by operating activities		89,387			75,271

Investing activities:
Purchase of property and equipment		(4,740	)		(7,873	)
Net (purchases) maturities of investments		(3,065	)		864

Net cash used in investing activities		(7,805	)		(7,009	)

Financing activities:
Purchase of common stock		(64,199	)		(103,155	)
Proceeds from issuance of common stock from options exercised		5,754			32,082
Excess tax benefits from equity-based compensation		6,637			7,531

Net cash used in financing activities		(51,808	)		(63,542	)

Foreign currency impact on cash		(2,136	)		(163	)

Net change in cash and cash equivalents		27,638			4,557
Cash and cash equivalents at beginning of period		96,737			92,180

Cash and cash equivalents at end of period	$	124,375		$	96,737

MANHATTAN ASSOCIATES, INC.

SUPPLEMENTAL INFORMATION

1. GAAP and Adjusted earnings per share:

On December 19, 2013, our Board of Directors approved a four-for-one stock split of the Company’s Common Stock, effected in the form of a stock dividend. All references made to shares or per share amounts have been restated to reflect the effect of this four-for-one stock split for all periods presented.

GAAP and Adjusted earnings per share (Post-Split) by quarter are as follows:


	2012										2013
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
GAAP Diluted EPS	$	0.14	$	0.17	$	0.17	$	0.16	$	0.64	$	0.17	$	0.22	$	0.25	$	0.22	$	0.86
Adjustments to GAAP:
Equity-based compensation		0.01		0.02		0.02		0.02		0.07		0.02		0.02		0.01		0.02		0.06
Purchase amortization		—		—		—		—		—		—		—		—		—		—

Adjusted Diluted EPS	$	0.15	$	0.19	$	0.19	$	0.18	$	0.71	$	0.19	$	0.24	$	0.26	$	0.24	$	0.92
Fully Diluted Shares		82,548		81,404		80,520		79,652		81,084		78,740		78,036		77,552		77,256		77,932


GAAP and Adjusted earnings per share (Pre-Split) by quarter are as follows:

	2012										2013
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
GAAP Diluted EPS	$	0.55	$	0.70	$	0.69	$	0.63	$	2.56	$	0.68	$	0.89	$	1.02	$	0.87	$	3.45

Adjusted Diluted EPS	$	0.60	$	0.76	$	0.75	$	0.71	$	2.82	$	0.74	$	0.96	$	1.05	$	0.94	$	3.70

Fully Diluted Shares		20,637		20,351		20,130		19,913		20,271		19,685		19,509		19,388		19,314		19,483


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

	2012										2013
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Revenue:
Americas	$	73,195	$	77,094	$	79,657	$	77,646	$	307,592	$	79,820	$	83,600	$	87,977	$	86,947	$	338,344
EMEA		12,407		12,334		10,589		11,808		47,138		11,431		11,964		12,686		14,333		50,414
APAC		5,879		4,139		5,595		5,905		21,518		5,350		6,952		7,139		6,319		25,760

	$	91,481	$	93,567	$	95,841	$	95,359	$	376,248	$	96,601	$	102,516	$	107,802	$	107,599	$	414,518

GAAP Operating Income:
Americas	$	13,685	$	18,130	$	17,718	$	15,984	$	65,517	$	16,964	$	21,256	$	25,613	$	19,618	$	83,451
EMEA		2,580		2,944		2,707		1,494		9,725		1,753		2,736		2,633		3,166		10,288
APAC		1,675		268		1,252		1,636		4,831		944		2,195		2,526		1,883		7,548

	$	17,940	$	21,342	$	21,677	$	19,114	$	80,073	$	19,661	$	26,187	$	30,772	$	24,667	$	101,287

Adjustments (pre-tax):
Americas:
Equity-based compensation	$	1,660	$	1,977	$	2,158	$	2,543	$	8,338	$	1,907	$	2,133	$	1,209	$	2,076	$	7,325
Purchase amortization		2		1		2		1		6		2		1		2		1		6

	$	1,662	$	1,978	$	2,160	$	2,544	$	8,344	$	1,909	$	2,134	$	1,211	$	2,077	$	7,331

Adjusted non-GAAP Operating Income:
Americas	$	15,347	$	20,108	$	19,878	$	18,528	$	73,861	$	18,873	$	23,390	$	26,824	$	21,695	$	90,782
EMEA		2,580		2,944		2,707		1,494		9,725		1,753		2,736		2,633		3,166		10,288
APAC		1,675		268		1,252		1,636		4,831		944		2,195		2,526		1,883		7,548

	$	19,602	$	23,320	$	23,837	$	21,658	$	88,417	$	21,570	$	28,321	$	31,983	$	26,744	$	108,618


3. Our services revenue consists of fees generated from professional services and customer support and software enhancements related to our software products as follows (in thousands):

	2012										2013
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Professional services	$	46,621	$	45,497	$	47,082	$	46,042	$	185,242	$	49,151	$	52,492	$	57,690	$	51,490		210,823
Customer support and software enhancements		23,749		23,825		24,804		26,252		98,630		25,736		25,711		27,335		26,296		105,078

Total services revenue	$	70,370	$	69,322	$	71,886	$	72,294	$	283,872	$	74,887	$	78,203	$	85,025	$	77,786	$	315,901


4. Hardware and other revenue includes the following items (in thousands):

	2012										2013
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Hardware revenue	$	3,054	$	5,740	$	4,234	$	5,242	$	18,270	$	4,175	$	4,285	$	3,904	$	8,557	$	20,921
Billed travel		2,470		3,160		3,557		3,425		12,612		3,294		3,892		4,105		3,989		15,280

Total hardware and other revenue	$	5,524	$	8,900	$	7,791	$	8,667	$	30,882	$	7,469	$	8,177	$	8,009	$	12,546	$	36,201

5. 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):


	2012															2013
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Full Year			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			YTD
Revenue	$	(136	)	$	(1,251	)	$	(958	)	$	(128	)	$	(2,473	)	$	(182	)	$	(150	)	$	(329	)	$	(63	)	$	(724	)
Costs and expenses		(848	)		(2,067	)		(1,845	)		(422	)		(5,182	)		(541	)		(262	)		(877	)		(902	)		(2,582	)

Operating income		712			816			887			294			2,709			359			112			548			839			1,858
Foreign currency (losses) gains in other income		(370	)		571			(564	)		231			(132	)		(179	)		972			313			(445	)		661

	$	342		$	1,387		$	323		$	525		$	2,577		$	180		$	1,084		$	861		$	394		$	2,519

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):


	2012												2013
	1st Qtr			2nd Qtr		3rd Qtr			4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Operating income	$	704		$	1,193	$	1,161			348	$	3,406	$	440	$	173	$	733	$	900	$	2,246
Foreign currency (losses) gains in other income		(144	)		724		(500	)		282		362		4		931		204		3		1,142

Total impact of changes in the Indian Rupee	$	560		$	1,917	$	661		$	630	$	3,768	$	444	$	1,104	$	937	$	903	$	3,388

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


	2012													2013
	1st Qtr			2nd Qtr		3rd Qtr			4th Qtr		Full Year			1st Qtr			2nd Qtr		3rd Qtr			4th Qtr			YTD
Interest income	$	264		$	228	$	278		$	292	$	1,062		$	326		$	271	$	263		$	307		$	1,167
Foreign currency (losses) gains		(370	)		571		(564	)		231		(132	)		(179	)		972		313			(445	)		661
Other non-operating (expense) income		(18	)		3		39			11		35			4			—		(30	)		20			(6	)

Total other (loss) income	$	(124	)	$	802	$	(247	)	$	534	$	965		$	151		$	1,243	$	546		$	(118	)	$	1,822

7. Total equity-based compensation is as follows (in thousands except per share amounts):


	2012										2013
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Stock options	$	120	$	140	$	138	$	223	$	621	$	148	$	11	$	11	$	20	$	190
Restricted stock		1,540		1,837		2,020		2,320		7,717		1,759		2,122		1,198		2,056		7,135

Total equity-based compensation		1,660		1,977		2,158		2,543		8,338		1,907		2,133		1,209		2,076		7,325
Income tax provision		598		711		777		942		3,028		671		751		451		729		2,602

Net income	$	1,062	$	1,266	$	1,381	$	1,601	$	5,310	$	1,236	$	1,382	$	758	$	1,347	$	4,723

Diluted earnings per share	$	0.01	$	0.02	$	0.02	$	0.02	$	0.07	$	0.02	$	0.02	$	0.01	$	0.02	$	0.06
Diluted earnings per share—stock options	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00
Diluted earnings per share—restricted stock	$	0.01	$	0.01	$	0.02	$	0.02	$	0.06	$	0.01	$	0.02	$	0.01	$	0.02	$	0.06

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


	2012										2013
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Capital expenditures	$	1,796	$	1,454	$	1,086	$	3,537	$	7,873	$	598	$	1,035	$	1,568	$	1,539	$	4,740

9. Stock Repurchase Activity (in thousands):


	2012										2013
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Full Year		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Shares purchased under publicly-announced buy-back program		2,611		1,386		1,676		2,106		7,779		903		785		607		537		2,832
Shares withheld for taxes due upon vesting of restricted stock		264		11		19		18		312		281		1		13		5		300

Total shares purchased		2,875		2,443		1,695		2,124		8,091		1,184		786		620		542		3,132
Total cash paid for shares purchased under publicly-announced buy-back program	$	30,647	$	16,616	$	21,202	$	31,223	$	99,688	$	15,929	$	14,409	$	13,533	$	15,332	$	59,203
Total cash paid for shares withheld for taxes due upon vesting of restricted stock		2,840		132		230		265		3,467		4,545		19		280		152		4,996

Total cash paid for shares repurchased	$	33,487	$	16,748	$	21,432	$	31,488	$	103,155	$	20,474	$	14,428	$	13,813	$	15,484	$	64,199

Contact:

Dennis Story

Beverly McDonald

Chief Financial Officer

Senior Director, Corporate Marketing

Manhattan Associates, Inc.

Manhattan Associates, Inc.

dstory@manh.com

bmcdonald@manh.com