Exhibit 99.1
| | | | |
— — — — — — | | JDA Software Group, Inc. NEWS RELEASE | | Contact Information at End of Release |
JDA Software Announces Second Quarter 2012 Results
Second Quarter Revenue Increases Over Prior-Year Period in Each Business
Company Completes Restatement and is Current With its Filings
Company Provides Outlook for Full Year 2012
Scottsdale, Ariz. — August 6, 2012 —JDA® Software Group, Inc. (NASDAQ: JDAS), The Supply Chain Company®, today announced financial results for the second quarter ended June 30, 2012. JDA reported second quarter revenue of $168.8 million, a 2 percent increase from the $165.5 million of revenue reported in the second quarter 2011. Adjusted EBITDA increased to $44.2 million in the second quarter 2012 from $42.3 million in the second quarter of 2011. JDA also reported adjusted non-GAAP earnings per share for the second quarter 2012 increased to $0.54, from $0.51 per share reported in the second quarter 2011. Adjusted non-GAAP earnings exclude amortization of acquired software technology and intangibles, restructuring charges, stock-based compensation and costs related to the revenue recognition investigation and restatement. GAAP net income attributable to common shareholders for second quarter 2012 was $10.6 million or $0.25 per diluted share, compared to $12.7 million or $0.30 per share in second quarter 2011.
“In the first half of 2012, JDA generated excellent cash flow and we delivered improved license growth in the second quarter – two factors that are key to the momentum we expect to continue to build in the second half of the year,” saidJDA Software President and Chief Executive Officer Hamish Brewer. “Importantly, we are also focused on creating sustainable, long-term growth by broadening JDA’s platform of customer solutions, including by launching a new product offering in the retail sector and expanding options with our cloud services.”
Software and Subscription
Software and subscription revenue increased 5 percent to $35.8 million in the second quarter 2012 from $34.1 million in the second quarter 2011, and increased 22 percent sequentially from $29.4 million in the first quarter 2012. The increase was primarily due to stronger sales in the company’s North America and Asia Pacific regions. JDA closed 57 software deals, including 11 deals in excess of $1 million in the second quarter, compared to 68 deals, including 10 over $1 million, in the prior year period. Additionally, the average sales price for the trailing 12 months ended June 30, 2012 increased to $775,000 from $691,000 for the trailing 12 months ended June 30, 2011, and $741,000 in the first quarter 2012.
Maintenance and Support Services
Maintenance revenue increased 1 percent to $66.8 million in the second quarter 2012 from $66.1 million in the second quarter 2011. This increase was due to a continued strong retention rate of 95.9 percent and the high level of attachment of maintenance contracts to new license deals. Maintenance gross margins also improved to 78.4 percent in the second quarter 2012 from 77.7 percent in the second quarter 2011.
JDA Software Announces Second Quarter 2012 Results
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Consulting Services
Consulting services revenue increased 1 percent to $66.1 million in the second quarter 2012 from $65.3 million in the second quarter 2011. Consulting services gross margins improved to 21.6 percent in the second quarter 2012 compared to 17.8 percent in the second quarter 2011 due to an increase in average billing rates and a decrease in non-billable hours. Sequentially, consulting gross margins decreased slightly from 22.1 percent in the first quarter 2012.
Other Financial Data
| | • | | Operating expenses as a percent of revenue continue to show a disciplined cost management focus. Product development expenses as a percent of revenue improved to 11.1 percent in the second quarter 2012 compared to 11.9 percent in the second quarter 2011, and 11.8 percent in the first quarter 2012. Sales and marketing expenses as a percent of revenue improved to 14.5 percent in the second quarter 2012 from 15.3 percent in the second quarter 2011, and 15.3 percent in the first quarter 2012. General and administrative expenses as a percent of revenue increased to 14.5 percent in the second quarter 2012 compared to 9.9 percent in the second quarter 2011, and improved sequentially from 15.3 percent in the first quarter 2012. |
| | • | | Costs associated with the revenue recognition investigation and restatement were $5.2 million in the first quarter of 2012 and $5.5 million in the second quarter of 2012, of which $3.6 million and $4.7 million was unpaid at the end of each quarter, respectively. These costs are included in General and administrative expenses. |
| | • | | Cash flow provided by operations was $29 million in the second quarter 2012 compared to $34 million in the second quarter 2011 and $49 million in the first quarter 2012. |
| | • | | Cash and cash equivalents, including restricted cash, increased to $366 million at June 30, 2012, from $295 million at December 31, 2011. The Company’s cash position, net of debt, at June 30, 2012 was $93 million. |
Second Quarter 2012 Highlights
The following presents a high-level summary of JDA’s regional software sales performance:
| | • | | JDA reported $26.0 million in software license and subscription revenues in its Americas region during the second quarter 2012, increasing from $22.4 million in the second quarter 2011. Companies signing new software licenses in second quarter 2012 include:Ace Hardware Corporation, CVS Corporation, Easy and O’Reilly Automotive/Ozark Auto. |
| | • | | Software license and subscription revenues in the Europe, Middle East and Africa (EMEA) region was $4.5 million in the second quarter 2012 compared to $8.6 million in the second quarter 2011.Pick n Pay was among the customers from the region signing new software licenses during the quarter. |
| | • | | JDA’s Asia-Pacific region software license and subscription revenues increased to $5.3 million in the second quarter 2012 compared to $3.1 million in the second quarter 2011. Wins in this region include: Coles Supermarkets, Philip Morris Japan K.K.and Wipro Consumer Care and Lighting Division. |
Six Months Ended June 30, 2012 Results
| | • | | Revenue for the six months ended June 30, 2012 decreased less than 1 percent to $331 million from $333 million for the six months ended June 30, 2011. Adjusted EBITDA decreased slightly to $83 million for the first six months of June 30, 2012 from $84 million in the first six months of 2011. |
| | • | | Adjusted non-GAAP earnings per share for the six months ended June 30, 2012 was $0.98 compared to $1.02 per share for the six months ended June 30, 2011. Adjusted non-GAAP earnings exclude amortization of acquired software technology and intangibles, restructuring charges, stock-based compensation and costs related to the revenue recognition investigation and restatement. Adjusted non-GAAP earnings for the six months ended June 30, 2011 also exclude a $37.5 million pre-tax credit associated with the favorable settlement of the patent infringement litigation. |
JDA Software Announces Second Quarter 2012 Results
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| | • | | The GAAP net income applicable to common shareholders for the six months ended June 30, 2012 was $15 million or $0.36 per share, compared to net income of $61 million or $1.43 per share for the six months ended June 30, 2011. |
| | • | | Cash flow from operations was $78 million for the six months ended June 30, 2012 compared to cash flow from operations of $93 million for the six months ended June 30, 2011. Excluding the $37.5 million received from a patent litigation settlement in the first half of 2011, operating cash flow increased due to improvements in working capital. |
2012 Full Year Outlook
JDA today also announced its financial outlook for the full year 2012. The full year 2012 outlook includes the following ranges of expectations:
| | |
Software revenue | | $140 million - $150 million |
Maintenance revenue | | Approximately $270 million |
Consulting revenue | | $265 million - $270 million |
Total revenue | | $675 million - $690 million |
| |
Adjusted EBITDA | | $175 million - $185 million |
Adjusted earnings per share | | $2.05 - $2.20 |
Adjusted EBITDA represents GAAP net income adjusted for amortization of intangibles, depreciation, interest expense, income tax provision, restructuring charges, share-based compensation, interest income and other significant non-routine operating and non-operating income and expense items. Adjusted earnings per share represents GAAP income before income taxes adjusted for amortization of intangibles, restructuring charges, share-based compensation and an adjusted income tax provision. Additionally, adjusted EBITDA and adjusted earnings per share exclude the costs associated with the revenue recognition investigation and restatement, which are expected to be approximately $17 million in 2012.
Additionally, JDA provided the following outlook for full year cash flow expectations:
| | |
| Adjusted cash flow from operations | | $130 million - $140 million |
| Less capital expenditures | | Approximately $20 million |
Adjusted Free cash flow | | $110 million -$120 million |
Adjusted cash flow from operations and adjusted free cash flow exclude the payments associated with the revenue recognition investigation and restatement.
Completion of Revenue Recognition Internal Investigation and Restatement of Financial Statements
Separately, today JDA filed its Annual Report on Form 10-K for the year ended December 31, 2011 containing restated selected financial data for the years 2007 through 2010, restated full financial statements and related information for the years 2009 and 2010, restated quarterly unaudited financial information for each quarter of 2010 and the first three quarters of 2011, and full financial statements for 2011. In addition, the company filed its Quarterly Reports on Form 10-Q for the first and second fiscal quarters of 2012. These reports contain unaudited quarterly information for the interim periods ended March 31, 2012 and June 30, 2012 and restated unaudited quarterly information for the corresponding interim periods in 2011. The restated results reflect a change in the timing of recorded revenue over the indicated periods. The internal investigation led by our Audit Committee found no indication of fraud or intentional wrongdoing. Additionally, the internal investigation did not reveal any issues with the existence of the recorded revenue or any impact to actual cash received or reported cash balances as of December 31, 2011, 2010 and 2009. With these filings, JDA believes it is in compliance with applicable requirements.
JDA Software Announces Second Quarter 2012 Results
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Investor and Financial Analyst Meeting Scheduled
The Company has scheduled an Investor and Financial Analyst Meeting for Tuesday, Sept. 18 in New York City. During this meeting, members of JDA’s executive leadership team will discuss the Company’s growth initiatives and key elements of its business, including global license sales, global services, retail and manufacturing license sales and cloud services. Registration information is available athttp://info.jda.com/forms/Financial-Analyst-Meeting.
Conference Call Information
JDA Software Group, Inc. will host a conference call at 5:00 p.m. Eastern time today to discuss earnings results for its second quarter ended June 30, 2012. To participate in the call, dial 1-877-941-4774 (United States) or 1-480-629-9760 (International) and ask the operator for the “JDA Software Group, Inc. Second Quarter 2012 Earnings Conference Call.” A live audio webcast of the conference call and detailed slide deck can be accessed by logging ontowww.jda.com in the Investor Relations section.
A replay of the conference call will begin on August 6, 2012 at 8:00 p.m. Eastern time and will end on September 3, 2012. Callers can access the replay by dialing 1-877-870-5176 (United States) or 1-858-384-5517 (International), and using the PIN number 4553721. To hear a replay of the call over the Internet, access JDA’s website atwww.jda.com.
About JDA Software Group
JDA® Software Group, Inc. (NASDAQ: JDAS), The Supply Chain Company®, is the leading provider of innovative supply chain management, merchandising and pricing excellence solutions worldwide. JDA empowers more than 6,000 companies of all sizes to make optimal decisions that improve profitability and achieve real results in the manufacturing, wholesale distribution, transportation, retail and services industries. With an integrated solutions offering that spans the entire supply chain from materials to the consumer, JDA leverages the powerful heritage and knowledge capital of acquired market leaders including i2 Technologies®, Manugistics®, E3®, Intactix® and Arthur®. JDA’s robust services offering, including complete solution lifecycle management via JDA Cloud Services, provides customers with leading-edge industry practices and supply chain expertise, lower total cost of ownership, long-term business value, and 24/7 functional and technical support. To learn more, visit jda.com or emailinfo@jda.com.
JDA Investor Relations Contact:
Mike Burnett, GVP, Treasury and Investor Relations
mike.burnett@jda.com
480-308-3392
JDA Corporate Communications Contact:
Beth Elkin, Vice President, Marketing and Corporate Communications
beth.elkin@jda.com
469-357-4225
JDA Software Announces Second Quarter 2012 Results
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JDA SOFTWARE GROUP, INC.
Q1 2012 FINANCIAL RESULTS
CONSOLIDATED STATEMENT OF OPERATIONS
($ in thousands, except per share data, unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended March 31, | | | % Increase
(Decrease) | |
| | | 2012 | | | % of
Revenues | | | 2011 | | | % of
Revenues | | |
REVENUES: | | | | | | | | | | | | | | | | | | | | |
Software licenses | | $ | 25,393 | | | | 16 | % | | $ | 35,644 | | | | 21 | % | | | -29 | % |
Subscriptions and other recurring revenues | | | 4,032 | | | | 2 | % | | | 4,994 | | | | 3 | % | | | -19 | % |
Maintenance services | | | 66,713 | | | | 41 | % | | | 64,782 | | | | 39 | % | | | 3 | % |
| | | | | | | | | | | | |
Product revenues | | | 96,138 | | | | 59 | % | | | 105,420 | | | | 63 | % | | | -9 | % |
| | | | | |
Consulting services | | | 60,489 | | | | 37 | % | | | 57,378 | | | | 34 | % | | | 5 | % |
Reimbursed expenses | | | 5,559 | | | | 3 | % | | | 4,720 | | | | 3 | % | | | 18 | % |
| | | | | | | | | | | | |
Services revenue | | | 66,048 | | | | 41 | % | | | 62,098 | | | | 37 | % | | | 6 | % |
| | | | | | | | | | | | |
Total Revenues | | | 162,186 | | | | 100 | % | | | 167,518 | | | | 100 | % | | | -3 | % |
| | | | | |
COST OF REVENUES: | | | | | | | | | | | | | | | | | | | | |
Cost of software licenses | | | 908 | | | | 1 | % | | | 949 | | | | 1 | % | | | -4 | % |
Amortization of acquired software technology | | | 1,702 | | | | 1 | % | | | 1,834 | | | | 1 | % | | | -7 | % |
Cost of maintenance services | | | 13,922 | | | | 9 | % | | | 13,986 | | | | 8 | % | | | 0 | % |
| | | | | | | | | | | | |
Cost of product revenues | | | 16,532 | | | | 10 | % | | | 16,769 | | | | 10 | % | | | -1 | % |
| | | | | |
Cost of consulting services | | | 45,902 | | | | 28 | % | | | 46,301 | | | | 28 | % | | | -1 | % |
Reimbursed expenses | | | 5,559 | | | | 3 | % | | | 4,720 | | | | 3 | % | | | 18 | % |
| | | | | | | | | | | | |
Cost of service revenue | | | 51,461 | | | | 32 | % | | | 51,021 | | | | 30 | % | | | 1 | % |
| | | | | | | | | | | | |
Total Cost of Revenues | | | 67,993 | | | | 42 | % | | | 67,790 | | | | 40 | % | | | 0 | % |
| | | | | | | | | | | | |
| | | | | |
GROSS PROFIT | | | 94,193 | | | | 58 | % | | | 99,728 | | | | 60 | % | | | -6 | % |
| | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | |
Product development | | | 19,120 | | | | 12 | % | | | 20,092 | | | | 12 | % | | | -5 | % |
Sales and marketing | | | 24,886 | | | | 15 | % | | | 26,240 | | | | 16 | % | | | -5 | % |
General and administrative | | | 24,819 | | | | 15 | % | | | 22,359 | | | | 13 | % | | | 11 | % |
Amortization of intangibles | | | 9,530 | | | | 6 | % | | | 9,718 | | | | 6 | % | | | -2 | % |
Restructuring charges | | | 2,219 | | | | 1 | % | | | 542 | | | | 0 | % | | | 309 | % |
Litigation settlement | | | — | | | | 0 | % | | | (37,500 | ) | | | -22 | % | | | N | M |
| | | |
| | | | | | | | | | | | |
Total Operating Expenses | | | 80,574 | | | | 50 | % | | | 41,451 | | | | 25 | % | | | 94 | % |
| | | | | | | | | | | | |
OPERATING INCOME | | | 13,619 | | | | 8 | % | | | 58,277 | | | | 35 | % | | | -77 | % |
Interest expense and amortization of loan fees | | | 6,417 | | | | 4 | % | | | 6,211 | | | | 4 | % | | | 3 | % |
Interest income and other, net | | | (292 | ) | | | 0 | % | | | (1,233 | ) | | | -1 | % | | | N | M |
| | | |
| | | | | | | | | | | | |
INCOME BEFORE INCOME TAXES | | | 7,494 | | | | 5 | % | | | 53,299 | | | | 32 | % | | | -86 | % |
Income tax provision | | | 2,795 | | | | 2 | % | | | 5,186 | | | | 3 | % | | | -46 | % |
| | | |
| | | | | | | | | | | | |
NET INCOME | | $ | 4,699 | | | | 3 | % | | $ | 48,113 | | | | 29 | % | | | -90 | % |
| | | | | | | | | | | | |
| | | | | |
EARNINGS PER SHARE: | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.11 | | | | | | | $ | 1.14 | | | | | | | | -90 | % |
Diluted | | $ | 0.11 | | | | | | | $ | 1.13 | | | | | | | | -90 | % |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 42,758 | | | | | | | | 42,133 | | | | | | | | 1 | % |
Diluted | | | 42,900 | | | | | | | | 42,607 | | | | | | | | 1 | % |
Note: Subtotals may not add due to rounding.
JDA Software Announces Second Quarter 2012 Results
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JDA SOFTWARE GROUP, INC.
Q2 2012 FINANCIAL RESULTS
CONSOLIDATED STATEMENT OF OPERATIONS
($ in thousands, except per share data, unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, | | | % Increase
(Decrease) | |
| | | 2012 | | | % of
Revenues | | | 2011 | | | % of
Revenues | | |
REVENUES: | | | | | | | | | | | | | | | | | | | | |
Software licenses | | $ | 32,040 | | | | 19 | % | | $ | 30,221 | | | | 18 | % | | | 6 | % |
Subscriptions and other recurring revenues | | | 3,754 | | | | 2 | % | | | 3,850 | | | | 2 | % | | | -2 | % |
Maintenance services | | | 66,815 | | | | 40 | % | | | 66,131 | | | | 40 | % | | | 1 | % |
| | | | | | | | | | | | |
Product revenues | | | 102,609 | | | | 61 | % | | | 100,202 | | | | 61 | % | | | 2 | % |
| | | | | |
Consulting services | | | 60,273 | | | | 36 | % | | | 58,808 | | | | 36 | % | | | 2 | % |
Reimbursed expenses | | | 5,875 | | | | 3 | % | | | 6,512 | | | | 4 | % | | | -10 | % |
| | | | | | | | | | | | |
Services revenue | | | 66,148 | | | | 39 | % | | | 65,320 | | | | 39 | % | | | 1 | % |
| | | | | | | | | | | | |
Total Revenues | | | 168,757 | | | | 100 | % | | | 165,522 | | | | 100 | % | | | 2 | % |
| | | | | |
COST OF REVENUES: | | | | | | | | | | | | | | | | | | | | |
Cost of software licenses | | | 1,527 | | | | 1 | % | | | 1,181 | | | | 1 | % | | | 29 | % |
Amortization of acquired software technology | | | 1,703 | | | | 1 | % | | | 1,833 | | | | 1 | % | | | -7 | % |
Cost of maintenance services | | | 14,412 | | | | 9 | % | | | 14,736 | | | | 9 | % | | | -2 | % |
| | | | | | | | | | | | |
Cost of product revenues | | | 17,642 | | | | 10 | % | | | 17,750 | | | | 11 | % | | | -1 | % |
| | | | | |
Cost of consulting services | | | 46,003 | | | | 27 | % | | | 47,209 | | | | 29 | % | | | -3 | % |
Reimbursed expenses | | | 5,875 | | | | 3 | % | | | 6,512 | | | | 4 | % | | | -10 | % |
| | | | | | | | | | | | |
Cost of service revenue | | | 51,878 | | | | 31 | % | | | 53,721 | | | | 32 | % | | | -3 | % |
| | | | | | | | | | | | |
Total Cost of Revenues | | | 69,520 | | | | 41 | % | | | 71,471 | | | | 43 | % | | | -3 | % |
| | | | | | | | | | | | |
| | | | | |
GROSS PROFIT | | | 99,237 | | | | 59 | % | | | 94,051 | | | | 57 | % | | | 6 | % |
| | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | |
Product development | | | 18,684 | | | | 11 | % | | | 19,762 | | | | 12 | % | | | -5 | % |
Sales and marketing | | | 24,481 | | | | 15 | % | | | 25,364 | | | | 15 | % | | | -3 | % |
General and administrative | | | 24,526 | | | | 15 | % | | | 16,314 | | | | 10 | % | | | 50 | % |
Amortization of intangibles | | | 9,530 | | | | 6 | % | | | 9,592 | | | | 6 | % | | | -1 | % |
Restructuring charges | | | 224 | | | | 0 | % | | | (31 | ) | | | 0 | % | | | N | M |
| | | |
| | | | | | | | | | | | |
Total Operating Expenses | | | 77,445 | | | | 46 | % | | | 71,001 | | | | 43 | % | | | 9 | % |
| | | | | | | | | | | | |
OPERATING INCOME | | | 21,792 | | | | 13 | % | | | 23,050 | | | | 14 | % | | | -5 | % |
Interest expense and amortization of loan fees | | | 6,537 | | | | 4 | % | | | 6,439 | | | | 4 | % | | | 2 | % |
Interest income and other, net | | | (1,647 | ) | | | -1 | % | | | (767 | ) | | | 0 | % | | | N | M |
| | | |
| | | | | | | | | | | | |
INCOME BEFORE INCOME TAXES | | | 16,902 | | | | 10 | % | | | 17,378 | | | | 10 | % | | | -3 | % |
Income tax provision | | | 6,297 | | | | 4 | % | | | 4,665 | | | | 3 | % | | | 35 | % |
| | | |
| | | | | | | | | | | | |
NET INCOME | | $ | 10,605 | | | | 6 | % | | $ | 12,713 | | | | 8 | % | | | -17 | % |
| | | | | | | | | | | | |
| | | | | |
EARNINGS PER SHARE: | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.25 | | | | | | | $ | 0.30 | | | | | | | | -17 | % |
Diluted | | $ | 0.25 | | | | | | | $ | 0.30 | | | | | | | | -17 | % |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 42,804 | | | | | | | | 42,354 | | | | | | | | 1 | % |
Diluted | | | 42,933 | | | | | | | | 42,740 | | | | | | | | 0 | % |
Note: Subtotals may not add due to rounding.
JDA Software Announces Second Quarter 2012 Results
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JDA SOFTWARE GROUP, INC.
YTD Q2 2012 FINANCIAL RESULTS
CONSOLIDATED STATEMENT OF OPERATIONS
($ in thousands, except per share data, unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, | | | % Increase
(Decrease) | |
| | | 2012 | | | % of
Revenues | | | 2011 | | | % of
Revenues | | |
REVENUES: | | | | | | | | | | | | | | | | | | | | |
Software licenses | | $ | 57,433 | | | | 17 | % | | $ | 65,865 | | | | 20 | % | | | -13 | % |
Subscriptions and other recurring revenues | | | 7,786 | | | | 2 | % | | | 8,844 | | | | 3 | % | | | -12 | % |
Maintenance services | | | 133,528 | | | | 40 | % | | | 130,913 | | | | 39 | % | | | 2 | % |
| | | | | | | | | | | | |
Product revenues | | | 198,747 | | | | 60 | % | | | 205,622 | | | | 62 | % | | | -3 | % |
| | | | | |
Consulting services | | | 120,762 | | | | 36 | % | | | 116,186 | | | | 35 | % | | | 4 | % |
Reimbursed expenses | | | 11,434 | | | | 3 | % | | | 11,232 | | | | 3 | % | | | 2 | % |
| | | | | | | | | | | | |
Services revenue | | | 132,196 | | | | 40 | % | | | 127,418 | | | | 38 | % | | | 4 | % |
| | | | | | | | | | | | |
Total Revenues | | | 330,943 | | | | 100 | % | | | 333,040 | | | | 100 | % | | | -1 | % |
| | | | | |
COST OF REVENUES: | | | | | | | | | | | | | | | | | | | | |
Cost of software licenses | | | 2,435 | | | | 1 | % | | | 2,130 | | | | 1 | % | | | 14 | % |
Amortization of acquired software technology | | | 3,405 | | | | 1 | % | | | 3,667 | | | | 1 | % | | | -7 | % |
Cost of maintenance services | | | 28,334 | | | | 9 | % | | | 28,722 | | | | 9 | % | | | -1 | % |
| | | | | | | | | | | | |
Cost of product revenues | | | 34,174 | | | | 10 | % | | | 34,519 | | | | 10 | % | | | -1 | % |
| | | | | |
Cost of consulting services | | | 91,905 | | | | 28 | % | | | 93,510 | | | | 28 | % | | | -2 | % |
Reimbursed expenses | | | 11,434 | | | | 3 | % | | | 11,232 | | | | 3 | % | | | 2 | % |
| | | | | | | | | | | | |
Cost of service revenue | | | 103,339 | | | | 31 | % | | | 104,742 | | | | 31 | % | | | -1 | % |
| | | | | | | | | | | | |
Total Cost of Revenues | | | 137,513 | | | | 42 | % | | | 139,261 | | | | 42 | % | | | -1 | % |
| | | | | | | | | | | | |
| | | | | |
GROSS PROFIT | | | 193,430 | | | | 58 | % | | | 193,779 | | | | 58 | % | | | 0 | % |
| | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | |
Product development | | | 37,804 | | | | 11 | % | | | 39,854 | | | | 12 | % | | | -5 | % |
Sales and marketing | | | 49,367 | | | | 15 | % | | | 51,604 | | | | 15 | % | | | -4 | % |
General and administrative | | | 49,345 | | | | 15 | % | | | 38,673 | | | | 12 | % | | | 28 | % |
Amortization of intangibles | | | 19,060 | | | | 6 | % | | | 19,310 | | | | 6 | % | | | -1 | % |
Restructuring charges | | | 2,443 | | | | 1 | % | | | 511 | | | | 0 | % | | | 378 | % |
Litigation settlement | | | — | | | | 0 | % | | | (37,500 | ) | | | -11 | % | | | N | M |
| | | |
| | | | | | | | | | | | |
Total Operating Expenses | | | 158,019 | | | | 48 | % | | | 112,452 | | | | 34 | % | | | 41 | % |
| | | | | | | | | | | | |
OPERATING INCOME | | | 35,411 | | | | 11 | % | | | 81,327 | | | | 24 | % | | | -56 | % |
Interest expense and amortization of loan fees | | | 12,954 | | | | 4 | % | | | 12,650 | | | | 4 | % | | | 2 | % |
Interest income and other, net | | | (1,939 | ) | | | -1 | % | | | (2,000 | ) | | | -1 | % | | | N | M |
| | | |
| | | | | | | | | | | | |
INCOME BEFORE INCOME TAXES | | | 24,396 | | | | 7 | % | | | 70,677 | | | | 21 | % | | | -65 | % |
Income tax provision | | | 9,092 | | | | 3 | % | | | 9,851 | | | | 3 | % | | | -8 | % |
| | | |
| | | | | | | | | | | | |
NET INCOME | | $ | 15,304 | | | | 5 | % | | $ | 60,826 | | | | 18 | % | | | -75 | % |
| | | | | | | | | | | | |
| | | | | |
EARNINGS PER SHARE: | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.36 | | | | | | | $ | 1.44 | | | | | | | | -75 | % |
Diluted | | $ | 0.36 | | | | | | | $ | 1.43 | | | | | | | | -75 | % |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 42,781 | | | | | | | | 42,244 | | | | | | | | 1 | % |
Diluted | | | 42,911 | | | | | | | | 42,674 | | | | | | | | 1 | % |
Note: Subtotals may not add due to rounding.
JDA Software Announces Second Quarter 2012 Results
Page 8
JDA SOFTWARE GROUP, INC.
Q1 2012 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES(1)
($ in thousands, except per share data, unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended March 31, | | | % Increase
(Decrease) | |
| | | 2012
GAAP | | | Adj. | | | 2012
Non-GAAP | | | 2011
GAAP | | | Adj. | | | 201 1
Non-GAAP | | | Non-GAAP | |
TOTAL COST OF REVENUES | | $ | 67,993 | | | $ | (2,332 | ) | | $ | 65,661 | | | $ | 67,790 | | | $ | (2,665 | ) | | $ | 65,125 | | | | 1 | % |
Stock-based compensation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of maintenance services | | | 13,922 | | | | (172 | ) | | | 13,750 | | | | 13,986 | | | | (167 | ) | | | 13,819 | | | | | |
Cost of consulting services | | | 45,902 | | | | (458 | ) | | | 45,444 | | | | 46,301 | | | | (664 | ) | | | 45,637 | | | | | |
| | | | | | | |
Amortization: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of acquired software technology | | | 1,702 | | | | (1,702 | ) | | | — | | | | 1,834 | | | | (1,834 | ) | | | — | | | | | |
| | | | | | | |
TOTAL OPERATING EXPENSES | | $ | 80,574 | | | $ | (19,244 | ) | | $ | 61,330 | | | $ | 41,451 | | | $ | 22,498 | | | $ | 63,949 | | | | -4 | % |
Stock-based compensation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product development | | | 19,120 | | | | (456 | ) | | | 18,664 | | | | 20,092 | | | | (692 | ) | | | 19,400 | | | | | |
Sales and marketing | | | 24,886 | | | | (713 | ) | | | 24,173 | | | | 26,240 | | | | (1,441 | ) | | | 24,799 | | | | | |
General and administrative | | | 24,819 | | | | (1,090 | ) | | | 23,729 | | | | 22,359 | | | | (2,609 | ) | | | 19,750 | | | | | |
| | | | | | | |
Amortization of intangibles | | | 9,530 | | | | (9,530 | ) | | | — | | | | 9,718 | | | | (9,718 | ) | | | — | | | | | |
Restructuring charges | | | 2,219 | | | | (2,219 | ) | | | — | | | | 542 | | | | (542 | ) | | | — | | | | | |
Investigation and restatement
costs(2) | | | 5,236 | | | | (5,236 | ) | | | — | | | | — | | | | — | | | | — | | | | | |
Litigation settlement | | | — | | | | — | | | | — | | | | (37,500 | ) | | | 37,500 | | | | — | | | | | |
| | | | | | | |
OPERATING INCOME | | $ | 13,619 | | | $ | 21,576 | | | $ | 35,195 | | | $ | 58,277 | | | $ | (19,833 | ) | | $ | 38,444 | | | | -8 | % |
| | | | | | | |
OPERATING MARGIN % | | | 8 | % | | | | | | | 22 | % | | | 35 | % | | | | | | | 23 | % | | | -1 | % |
| | | | | | | |
INCOME TAX EFFECTS(3) | | $ | 2,795 | | | $ | 7,380 | | | $ | 10,175 | | | $ | 5,186 | | | $ | 6,527 | | | $ | 11,713 | | | | -13 | % |
| | | | | | | |
NET INCOME | | $ | 4,699 | | | | | | | $ | 18,895 | | | $ | 48,113 | | | | | | | $ | 21,753 | | | | -13 | % |
| | | | | | | |
DILUTED EARNINGS PER SHARE | | $ | 0.11 | | | | | | | $ | 0.44 | | | $ | 1.13 | | | | | | | $ | 0.51 | | | | -14 | % |
| | | | | | | |
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | | | 42,900 | | | | | | | | 42,900 | | | | 42,607 | | | | | | | | 42,607 | | | | 1 | % |
| | | | | | | |
| | | 2012
Non-Adjusted | | | Adj. | | | 2012
Adjusted | | | 2011
Non-Adjusted | | | Adj. | | | 2011
Adjusted | | | | |
Net income | | $ | 4,699 | | | | | | | | | | | $ | 48,113 | | | | | | | | | | | | | |
Income tax provision | | | 2,795 | | | | | | | | | | | | 5,186 | | | | | | | | | | | | | |
Interest expense and amortization of loan fees | | | 6,417 | | | | | | | | | | | | 6,211 | | | | | | | | | | | | | |
Amortization of acquired software technology | | | 1,702 | | | | | | | | | | | | 1,834 | | | | | | | | | | | | | |
Amortization of intangibles | | | 9,530 | | | | | | | | | | | | 9,718 | | | | | | | | | | | | | |
Depreciation | | | 3,668 | | | | | | | | | | | | 3,364 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
EBITDA | | $ | 28,811 | | | | | | | | | | | $ | 74,426 | | | | | | | | | | | | | |
| | | | | | | |
Restructuring charges | | | | | | $ | 2,219 | | | | | | | | | | | $ | 542 | | | | | | | | | |
Stock-based compensation | | | | | | | 2,889 | | | | | | | | | | | | 5,573 | | | | | | | | | |
Interest income and other, net | | | | | | | (292 | ) | | | | | | | | | | | (1,233 | ) | | | | | | | | |
Investigation and restatement costs | | | | | | | 5,236 | | | | | | | | | | | | — | | | | | | | | | |
Litigation settlement | | | | | | | — | | | | | | | | | | | | (37,500 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
EBITDA | | $ | 28,811 | | | $ | 10,052 | | | $ | 38,863 | | | $ | 74,426 | | | $ | (32,618 | ) | | $ | 41,808 | | | | -7 | % |
| | | | | | | |
EBITDA MARGIN % | | | 18 | % | | | | | | | 24 | % | | | 44 | % | | | | | | | 25 | % | | | | |
| (1) | This presentation includes Non-GAAP measures. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement consolidated financial statements prepared under GAAP. Management’s presentation of non-GAAP financial measures is intended to be supplemental in nature and should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. |
| (2) | Investigation and restatement costs are included in the General and administrative line on the Consolidated Statement of Operations |
| (3) | Non-GAAP income tax effect calculated by using the Federal statutory rate of 35%. |
JDA Software Announces Second Quarter 2012 Results
Page 9
JDA SOFTWARE GROUP, INC.
Q2 2012 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES(1)
($ in thousands, except per share data, unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, | | | % Increase
(Decrease) | |
| | | 2012
GAAP | | | Adj. | | | 2012
Non-GAAP | | | 2011
GAAP | | | Adj. | | | 201 1
Non-GAAP | | | Non-GAAP | |
TOTAL COST OF REVENUES | | $ | 69,520 | | | $ | (2,030 | ) | | $ | 67,490 | | | $ | 71,471 | | | $ | (2,526 | ) | | $ | 68,945 | | | | -2 | % |
Stock-based compensation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of maintenance services | | | 14,412 | | | | (111 | ) | | | 14,301 | | | | 14,736 | | | | (174 | ) | | | 14,562 | | | | | |
Cost of consulting services | | | 46,003 | | | | (216 | ) | | | 45,787 | | | | 47,209 | | | | (519 | ) | | | 46,690 | | | | | |
Amortization: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of acquired software technology | | | 1,703 | | | | (1,703 | ) | | | — | | | | 1,833 | | | | (1,833 | ) | | | — | | | | | |
| | | | | | | |
TOTAL OPERATING EXPENSES | | $ | 77,445 | | | $ | (16,601 | ) | | $ | 60,844 | | | $ | 71,001 | | | $ | (13,350 | ) | | $ | 57,651 | | | | 6 | % |
Stock-based compensation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product development | | | 18,684 | | | | (75 | ) | | | 18,609 | | | | 19,762 | | | | (544 | ) | | | 19,218 | | | | | |
Sales and marketing | | | 24,481 | | | | (385 | ) | | | 24,096 | | | | 25,364 | | | | (1,419 | ) | | | 23,945 | | | | | |
General and administrative | | | 24,526 | | | | (888 | ) | | | 23,638 | | | | 16,314 | | | | (1,826 | ) | | | 14,488 | | | | | |
| | | | | | | |
Amortization of intangibles | | | 9,530 | | | | (9,530 | ) | | | — | | | | 9,592 | | | | (9,592 | ) | | | — | | | | | |
Restructuring charges | | | 224 | | | | (224 | ) | | | — | | | | (31 | ) | | | 31 | | | | — | | | | | |
Investigation and restatement costs(2) | | | 5,499 | | | | (5,499 | ) | | | — | | | | — | | | | — | | | | — | | | | | |
| | | | | | | |
OPERATING INCOME | | $ | 21,792 | | | $ | 18,631 | | | $ | 40,423 | | | $ | 23,050 | | | $ | 15,876 | | | $ | 38,926 | | | | 4 | % |
| | | | | | | |
OPERATING MARGIN % | | | 13 | % | | | | | | | 24 | % | | | 14 | % | | | | | | | 24 | % | | | 0 | % |
| | | | | | | |
INCOME TAX EFFECTS(3) | | $ | 6,297 | | | $ | 6,140 | | | $ | 12,437 | | | $ | 4,665 | | | $ | 6,974 | | | $ | 11,639 | | | | 7 | % |
| | | | | | | |
NET INCOME | | $ | 10,605 | | | | | | | $ | 23,096 | | | $ | 12,713 | | | | | | | $ | 21,615 | | | | 7 | % |
| | | | | | | |
DILUTED EARNINGS PER SHARE | | $ | 0.25 | | | | | | | $ | 0.54 | | | $ | 0.30 | | | | | | | $ | 0.51 | | | | 6 | % |
| | | | | | | |
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | | | 42,933 | | | | | | | | 42,933 | | | | 42,740 | | | | | | | | 42,740 | | | | 0 | % |
| | | | | | | |
| | | 2012
Non-Adjusted | | | Adj. | | | 2012
Adjusted | | | 2011
Non-Adjusted | | | Adj. | | | 2011
Adjusted | | | | |
Net income | | $ | 10,605 | | | | | | | | | | | $ | 12,713 | | | | | | | | | | | | | |
Income tax provision | | | 6,297 | | | | | | | | | | | | 4,665 | | | | | | | | | | | | | |
Interest expense and amortization of loan fees | | | 6,537 | | | | | | | | | | | | 6,439 | | | | | | | | | | | | | |
Amortization of acquired software technology | | | 1,703 | | | | | | | | | | | | 1,833 | | | | | | | | | | | | | |
Amortization of intangibles | | | 9,530 | | | | | | | | | | | | 9,592 | | | | | | | | | | | | | |
Depreciation | | | 3,793 | | | | | | | | | | | | 3,405 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
EBITDA | | $ | 38,465 | | | | | | | | | | | $ | 38,647 | | | | | | | | | | | | | |
Restructuring charges | | | | | | $ | 224 | | | | | | | | | | | $ | (31 | ) | | | | | | | | |
Stock-based compensation | | | | | | | 1,675 | | | | | | | | | | | | 4,482 | | | | | | | | | |
Interest income and other, net | | | | | | | (1,647 | ) | | | | | | | | | | | (767 | ) | | | | | | | | |
Investigation and restatement costs | | | | | | | 5,499 | | | | | | | | | | | | — | | | | | | | | | |
EBITDA | | $ | 38,465 | | | $ | 5,751 | | | $ | 44,216 | | | $ | 38,647 | | | $ | 3,684 | | | $ | 42,331 | | | | 4 | % |
| | | | | | | |
EBITDA MARGIN % | | | 23 | % | | | | | | | 26 | % | | | 23 | % | | | | | | | 26 | % | | | | |
| (1) | This presentation includes Non-GAAP measures. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement consolidated financial statements prepared under GAAP. Management’s presentation of non-GAAP financial measures is intended to be supplemental in nature and should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. |
| (2) | Investigation and restatement costs are included in the General and administrative line on the Consolidated Statement of Operations |
| (3) | Non-GAAP income tax effect calculated by using the Federal statutory rate of 35%. |
JDA Software Announces Second Quarter 2012 Results
Page 10
JDA SOFTWARE GROUP, INC.
YTD Q2 2012 FINANCIAL RESULTS
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES(1)
($ in thousands, except per share data, unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended June 30, | | | % Increase
(Decrease) | |
| | | 2012
GAAP | | | Adj. | | | 2012
Non-GAAP | | | 2011
GAAP | | | Adj. | | | 2011
Non-GAAP | | | Non-GAAP | |
TOTAL COST OF REVENUES | | $ | 137,513 | | | $ | (4,363 | ) | | $ | 133,150 | | | $ | 139,261 | | | $ | (5,191 | ) | | $ | 134,070 | | | | -1 | % |
Stock-based compensation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of maintenance services | | | 28,334 | | | | (283 | ) | | | 28,051 | | | | 28,722 | | | | (341 | ) | | | 28,381 | | | | | |
Cost of consulting services | | | 91,905 | | | | (675 | ) | | | 91,230 | | | | 93,510 | | | | (1,183 | ) | | | 92,327 | | | | | |
| | | | | | | |
Amortization: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of acquired software technology | | | 3,405 | | | | (3,405 | ) | | | — | | | | 3,667 | | | | (3,667 | ) | | | — | | | | | |
| | | | | | | |
TOTAL OPERATING EXPENSES | | $ | 158,019 | | | $ | (35,844 | ) | | $ | 122,175 | | | $ | 112,452 | | | $ | 9,148 | | | $ | 121,600 | | | | 0 | % |
Stock-based compensation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product development | | | 37,804 | | | | (531 | ) | | | 37,273 | | | | 39,854 | | | | (1,236 | ) | | | 38,618 | | | | | |
Sales and marketing | | | 49,367 | | | | (1,098 | ) | | | 48,269 | | | | 51,604 | | | | (2,860 | ) | | | 48,744 | | | | | |
General and administrative | | | 49,345 | | | | (1,977 | ) | | | 47,368 | | | | 38,673 | | | | (4,435 | ) | | | 34,238 | | | | | |
| | | | | | | |
Amortization of intangibles | | | 19,060 | | | | (19,060 | ) | | | — | | | | 19,310 | | | | (19,310 | ) | | | — | | | | | |
Restructuring charges | | | 2,443 | | | | (2,443 | ) | | | — | | | | 511 | | | | (511 | ) | | | — | | | | | |
Investigation and restatement
costs(2) | | | 10,735 | | | | (10,735 | ) | | | — | | | | — | | | | — | | | | — | | | | | |
Litigation settlement | | | — | | | | — | | | | — | | | | (37,500 | ) | | | 37,500 | | | | — | | | | | |
| | | | | | | |
OPERATING INCOME | | $ | 35,411 | | | $ | 40,207 | | | $ | 75,618 | | | $ | 81,327 | | | $ | (3,957 | ) | | $ | 77,370 | | | | -2 | % |
| | | | | | | |
OPERATING MARGIN % | | | 11 | % | | | | | | | 23 | % | | | 24 | % | | | | | | | 23 | % | | | 0 | % |
| | | | | | | |
INCOME TAX EFFECTS(3) | | $ | 9,092 | | | $ | 13,519 | | | $ | 22,611 | | | $ | 9,851 | | | $ | 13,501 | | | $ | 23,352 | | | | -3 | % |
| | | | | | | |
NET INCOME | | $ | 15,304 | | | | | | | $ | 41,992 | | | $ | 60,826 | | | | | | | $ | 43,368 | | | | -3 | % |
| | | | | | | |
DILUTED EARNINGS PER SHARE | | $ | 0.36 | | | | | | | $ | 0.98 | | | $ | 1.43 | | | | | | | $ | 1.02 | | | | -4 | % |
| | | | | | | |
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | | | 42,911 | | | | | | | | 42,911 | | | | 42,674 | | | | | | | | 42,674 | | | | 1 | % |
| | | | | | | |
| | | 2012
Non-Adjusted | | | Adj. | | | 2012
Adjusted | | | 2011
Non-Adjusted | | | Adj. | | | 2011
Adjusted | | | | |
Net income | | $ | 15,304 | | | | | | | | | | | $ | 60,826 | | | | | | | | | | | | | |
Income tax provision | | | 9,092 | | | | | | | | | | | | 9,851 | | | | | | | | | | | | | |
Interest expense and amortization of loan fees | | | 12,954 | | | | | | | | | | | | 12,650 | | | | | | | | | | | | | |
Amortization of acquired software technology | | | 3,405 | | | | | | | | | | | | 3,667 | | | | | | | | | | | | | |
Amortization of intangibles | | | 19,060 | | | | | | | | | | | | 19,310 | | | | | | | | | | | | | |
Depreciation | | | 7,461 | | | | | | | | | | | | 6,769 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
EBITDA | | $ | 67,276 | | | | | | | | | | | $ | 113,073 | | | | | | | | | | | | | |
| | | | | | | |
Restructuring charges | | | | | | $ | 2,443 | | | | | | | | | | | $ | 511 | | | | | | | | | |
Stock-based compensation | | | | | | | 4,564 | | | | | | | | | | | | 10,055 | | | | | | | | | |
Interest income and other, net | | | | | | | (1,939 | ) | | | | | | | | | | | (2,000 | ) | | | | | | | | |
Investigation and restatement costs | | | | | | | 10,735 | | | | | | | | | | | | — | | | | | | | | | |
Litigation settlement | | | | | | | — | | | | | | | | | | | | (37,500 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EBITDA | | $ | 67,276 | | | $ | 15,803 | | | $ | 83,079 | | | $ | 113,073 | | | $ | (28,934 | ) | | $ | 84,139 | | | | -1 | % |
| | | | | | | |
EBITDA MARGIN % | | | 20 | % | | | | | | | 25 | % | | | 34 | % | | | | | | | 25 | % | | | | |
| (1) | This presentation includes Non-GAAP measures. In evaluating the Company's performance, management uses certain non-GAAP financial measures to supplement consolidated financial statements prepared under GAAP. Management's presentation of non-GAAP financial measures is intended to be supplemental in nature and should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. |
| (2) | Investigation and restatement costs are included in the General and administrative line on the Consolidated Statement of Operations |
| (3) | Non-GAAP income tax effect calculated by using the Federal statutory rate of 35%. |
JDA Software Announces Second Quarter 2012 Results
Page 11
JDA SOFTWARE GROUP, INC.
Q2 2012 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands, unaudited)
| | | | | | | | | | | | |
| | | June 30,
2012 | | | March 31,
2012 | | | December 31,
2011 | |
ASSETS | | | | | | | | | | | | |
| | | |
Current Assets: | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 362,430 | | | $ | 337,382 | | | $ | 285,512 | |
Restricted cash | | | 3,314 | | | | 3,315 | | | | 8,733 | |
Accounts receivable, net | | | 126,368 | | | | 131,953 | | | | 114,778 | |
Deferred tax assets—current portion | | | 36,540 | | | | 33,412 | | | | 32,063 | |
Prepaid expenses and other current assets | | | 24,240 | | | | 27,117 | | | | 24,584 | |
| | | | | | | | | | | | |
Total Current Assets | | | 552,892 | | | | 533,179 | | | | 465,670 | |
| | | | | | | | | | | | |
| | | |
Non-Current Assets: | | | | | | | | | | | | |
Restricted cash | | | 662 | | | | 712 | | | | 652 | |
Property and equipment, net | | | 52,831 | | | | 52,158 | | | | 52,541 | |
Goodwill | | | 231,377 | | | | 231,377 | | | | 231,377 | |
Other intangibles, net | | | 119,417 | | | | 130,650 | | | | 141,882 | |
Deferred tax assets—long-term portion | | | 248,796 | | | | 256,344 | | | | 258,271 | |
Other non-current assets | | | 19,668 | | | | 20,491 | | | | 20,565 | |
| | | | | | | | | | | | |
Total Non-Current Assets | | | 672,751 | | | | 691,732 | | | | 705,288 | |
| | | |
| | | | | | | | | | | | |
TOTAL ASSETS | | $ | 1,225,643 | | | $ | 1,224,911 | | | $ | 1,170,958 | |
| | | | | | | | | | | | |
| | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | |
| | | |
Current Liabilities: | | | | | | | | | | | | |
Accounts payable | | $ | 10,375 | | | $ | 8,378 | | | $ | 7,740 | |
Accrued expenses and other liabilities | | | 71,381 | | | | 76,226 | | | | 73,111 | |
Deferred revenue—current portion | | | 140,284 | | | | 142,636 | | | | 108,217 | |
| | | | | | | | | | | | |
Total Current Liabilities | | | 222,040 | | | | 227,240 | | | | 189,068 | |
| | | | | | | | | | | | |
| | | |
Non-Current Liabilities: | | | | | | | | | | | | |
Long-term debt | | | 273,484 | | | | 273,347 | | | | 273,210 | |
Accrued exit and disposal obligations | | | 3,130 | | | | 3,595 | | | | 3,926 | |
Liability for uncertain tax positions | | | 4,119 | | | | 4,144 | | | | 4,098 | |
Deferred revenue—long-term portion | | | 5,399 | | | | 7,402 | | | | 8,115 | |
Other non-current liabilities | | | 5,170 | | | | 3,360 | | | | 1,368 | |
| | | | | | | | | | | | |
Total Non-Current Liabilities | | | 291,302 | | | | 291,848 | | | | 290,717 | |
| | | |
| | | | | | | | | | | | |
TOTAL LIABILITIES | | $ | 513,342 | | | $ | 519,088 | | | $ | 479,785 | |
| | | | | | | | | | | | |
| | | |
Stockholders’ Equity: | | | | | | | | | | | | |
Common stock | | | 450 | | | | 450 | | | | 449 | |
Additional paid-in capital | | | 577,935 | | | | 576,260 | | | | 571,593 | |
Retained earnings | | | 169,855 | | | | 159,250 | | | | 154,551 | |
Accumulated other comprehensive income | | | (2,360 | ) | | | 3,119 | | | | (2,454 | ) |
Treasury stock | | | (33,579 | ) | | | (33,256 | ) | | | (32,966 | ) |
| | | | | | | | | | | | |
Total Stockholders’ Equity | | | 712,301 | | | | 705,823 | | | | 691,173 | |
| | | |
| | | | | | | | | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 1,225,643 | | | $ | 1,224,911 | | | $ | 1,170,958 | |
| | | | | | | | | | | | |
JDA Software Announces Second Quarter 2012 Results
Page 12
JDA SOFTWARE GROUP, INC.
Q1 2012 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
($ in thousands, unaudited)
| | | | | | | | |
| | | Three Months Ended March 31, | |
| | | 2012 | | | 2011 | |
Cash Flows From Operating Activities: | | | | | | | | |
Net income | | $ | 4,699 | | | $ | 48,113 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 14,900 | | | | 14,916 | |
Provision for doubtful accounts | | | 2 | | | | — | |
Amortization of loan fees | | | 616 | | | | 501 | |
Net loss (gain) on disposal of property and equipment | | | (18 | ) | | | (5 | ) |
Stock-based compensation | | | 2,889 | | | | 5,573 | |
Deferred income taxes | | | 579 | | | | 4,591 | |
Changes in assets and liabilities, net of effects from business acquisition: | | | | | | | | |
Accounts receivable | | | (16,180 | ) | | | (33,197 | ) |
Prepaid expenses and other assets | | | (2,871 | ) | | | (6,528 | ) |
Accounts payable | | | 466 | | | | (9,322 | ) |
Accrued expenses and other liabilities | | | 8,122 | | | | 2,594 | |
Deferred revenue | | | 35,662 | | | | 31,980 | |
| | | | | | | | |
Net cash provided by operating activities | | $ | 48,866 | | | $ | 59,216 | |
| | | | | | | | |
| | |
Cash Flow From Investing Activities: | | | | | | | | |
Change in restricted cash | | | 5,358 | | | | 458 | |
Purchase of property and equipment | | | (3,000 | ) | | | (2,997 | ) |
Proceeds from disposal of property and equipment | | | 139 | | | | 26 | |
| | | | | | | | |
Net cash provided by (used in) investing activities | | $ | 2,497 | | | $ | (2,513 | ) |
| | | | | | | | |
| | |
Cash Flow From Financing Activities: | | | | | | | | |
Issuance of common stock—equity plans | | | 1,780 | | | | 2,678 | |
Purchase of treasury stock and other, net | | | (290 | ) | | | (3,222 | ) |
Debt issuance costs | | | — | | | | (1,656 | ) |
| | | | | | | | |
Net cash provided by (used in) financing activities | | $ | 1,490 | | | $ | (2,200 | ) |
| | | | | | | | |
| | |
Effect of exchange rates on cash and cash equivalents | | | (983 | ) | | | 1,059 | |
| | | | | | | | |
Net increase in cash and cash equivalents | | $ | 51,870 | | | $ | 55,562 | |
| | | | | | | | |
Cash and Cash Equivalents, Beginning of Period | | $ | 285,512 | | | $ | 171,618 | |
| | | | | | | | |
Cash and Cash Equivalents, End of Period | | $ | 337,382 | | | $ | 227,180 | |
| | | | | | | | |
JDA Software Announces Second Quarter 2012 Results
Page 13
JDA SOFTWARE GROUP, INC.
Q2 2012 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
($ in thousands, unaudited)
| | | | | | | | |
| | | Three Months Ended June 30, | |
| | | 2012 | | | 2011 | |
Cash Flows From Operating Activities: | | | | | | | | |
Net income | | $ | 10,605 | | | $ | 12,713 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 15,026 | | | | 14,830 | |
Amortization of loan fees | | | 617 | | | | 607 | |
Net loss (gain) on disposal of property and equipment | | | 127 | | | | 25 | |
Stock-based compensation | | | 1,675 | | | | 4,482 | |
Deferred income taxes | | | 4,418 | | | | 2,374 | |
Changes in assets and liabilities, net of effects from business acquisition: | | | | | | | | |
Accounts receivable | | | 4,807 | | | | 11,285 | |
Prepaid expenses and other assets | | | 2,957 | | | | 1,750 | |
Accounts payable | | | 1,311 | | | | (2,579 | ) |
Accrued expenses and other liabilities | | | (6,928 | ) | | | (9,554 | ) |
Deferred revenue | | | (5,757 | ) | | | (2,035 | ) |
| | | | | | | | |
Net cash provided by operating activities | | $ | 28,858 | | | $ | 33,898 | |
| | | | | | | | |
| | |
Cash Flow From Investing Activities: | | | | | | | | |
Change in restricted cash | | | 51 | | | | (2,714 | ) |
Purchase of property and equipment | | | (1,836 | ) | | | (1,818 | ) |
Proceeds from disposal of property and equipment | | | 216 | | | | 24 | |
| | | | | | | | |
Net cash used in investing activities | | $ | (1,569 | ) | | $ | (4,508 | ) |
| | | | | | | | |
| | |
Cash Flow From Financing Activities: | | | | | | | | |
Issuance of common stock—equity plans | | | — | | | | 820 | |
Purchase of treasury stock and other, net | | | (323 | ) | | | (1,305 | ) |
Conversion of warrants | | | — | | | | 671 | |
Debt issuance costs | | | — | | | | (45 | ) |
| | | | | | | | |
Net cash (used in) provided by financing activities | | $ | (323 | ) | | $ | 141 | |
| | | | | | | | |
| | |
Effect of exchange rates on cash and cash equivalents | | | (1,918 | ) | | | 47 | |
| | | | | | | | |
Net increase in cash and cash equivalents | | $ | 25,048 | | | $ | 29,578 | |
| | | | | | | | |
Cash and Cash Equivalents, Beginning of Period | | $ | 337,382 | | | $ | 227,180 | |
| | | | | | | | |
Cash and Cash Equivalents, End of Period | | $ | 362,430 | | | $ | 256,758 | |
| | | | | | | | |
JDA Software Announces Second Quarter 2012 Results
Page 14
JDA SOFTWARE GROUP, INC.
YTD Q2 2012 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
($ in thousands, unaudited)
| | | | | | | | |
| | | Six Months Ended June 30, | |
| | | 2012 | | | 2011 | |
Cash Flows From Operating Activities: | | | | | | | | |
Net income | | $ | 15,304 | | | $ | 60,826 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 29,926 | | | | 29,746 | |
Provision for doubtful accounts | | | 2 | | | | — | |
Amortization of loan fees | | | 1,233 | | | | 1,108 | |
Net loss (gain) on disposal of property and equipment | | | 109 | | | | 20 | |
Stock-based compensation | | | 4,564 | | | | 10,055 | |
Deferred income taxes | | | 4,997 | | | | 6,965 | |
Changes in assets and liabilities, net of effects from business acquisition: | | | | | | | | |
Accounts receivable | | | (11,373 | ) | | | (21,912 | ) |
Prepaid expenses and other assets | | | 86 | | | | (4,778 | ) |
Accounts payable | | | 1,777 | | | | (11,901 | ) |
Accrued expenses and other liabilities | | | 1,194 | | | | (6,960 | ) |
Deferred revenue | | | 29,905 | | | | 29,945 | |
| | | | | | | | |
Net cash provided by operating activities | | $ | 77,724 | | | $ | 93,114 | |
| | | | | | | | |
| | |
Cash Flow From Investing Activities: | | | | | | | | |
Change in restricted cash | | | 5,409 | | | | (2,256 | ) |
Purchase of property and equipment | | | (4,836 | ) | | | (4,815 | ) |
Proceeds from disposal of property and equipment | | | 355 | | | | 50 | |
| | | | | | | | |
Net cash provided by (used in) investing activities | | $ | 928 | | | $ | (7,021 | ) |
| | | | | | | | |
| | |
Cash Flow From Financing Activities: | | | | | | | | |
Issuance of common stock—equity plans | | | 1,780 | | | | 3,498 | |
Purchase of treasury stock and other, net | | | (613 | ) | | | (4,527 | ) |
Conversion of warrants | | | — | | | | 671 | |
Debt issuance costs | | | — | | | | (1,701 | ) |
| | | | | | | | |
Net cash provided by (used in) financing activities | | $ | 1,167 | | | $ | (2,059 | ) |
| | | | | | | | |
| | |
Effect of exchange rates on cash and cash equivalents | | | (2,901 | ) | | | 1,106 | |
| | | | | | | | |
Net increase in cash and cash equivalents | | $ | 76,918 | | | $ | 85,140 | |
| | | | | | | | |
Cash and Cash Equivalents, Beginning of Period | | $ | 285,512 | | | $ | 171,618 | |
| | | | | | | | |
Cash and Cash Equivalents, End of Period | | $ | 362,430 | | | $ | 256,758 | |
| | | | | | | | |
JDA Software Announces Second Quarter 2012 Results
Page 15
JDA SOFTWARE GROUP, INC.
Q2 2012 FINANCIAL RESULTS
SUPPLEMENTAL DATA
($ in thousands, unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2011 | | | | | 2012 | |
| | Q1 | | | Q2 | | | Q3 | | | Q4 | | | TOTAL | | | | | Q1 | | | Q2 | | | YTD TOTAL | |
REVENUES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Software licenses | | $ | 35,644 | | | $ | 30,221 | | | $ | 34,726 | | | $ | 39,626 | | | $ | 140,217 | | | | | $ | 25,393 | | | $ | 32,040 | | | $ | 57,433 | |
Subscriptions and other recurring revenues | | | 4,994 | | | | 3,850 | | | | 3,738 | | | | 4,181 | | | | 16,763 | | | | | | 4,032 | | | | 3,754 | | | | 7,786 | |
Maintenance services | | | 64,782 | | | | 66,131 | | | | 67,632 | | | | 67,240 | | | | 265,785 | | | | | | 66,713 | | | | 66,815 | | | | 133,528 | |
| | | | | | | | | | |
Product revenues | | | 105,420 | | | | 100,202 | | | | 106,096 | | | | 111,047 | | | | 422,765 | | | | | | 96,138 | | | | 102,609 | | | | 198,747 | |
| | | | | | | | | |
Consulting services | | | 57,378 | | | | 58,808 | | | | 60,970 | | | | 67,890 | | | | 245,046 | | | | | | 60,489 | | | | 60,273 | | | | 120,762 | |
Reimbursed expenses | | | 4,720 | | | | 6,512 | | | | 6,033 | | | | 6,167 | | | | 23,432 | | | | | | 5,559 | | | | 5,875 | | | | 11,434 | |
| | | | | | | | | | |
Services revenue | | | 62,098 | | | | 65,320 | | | | 67,003 | | | | 74,057 | | | | 268,478 | | | | | | 66,048 | | | | 66,148 | | | | 132,196 | |
| | | | | | | | | | |
Total Revenues | | $ | 167,518 | | | $ | 165,522 | | | $ | 173,099 | | | $ | 185,104 | | | $ | 691,243 | | | | | $ | 162,186 | | | $ | 168,757 | | | $ | 330,943 | |
| | | | | | | | | | |
| | | | | | | | | |
AS REPORTED REVENUE GROWTH RATES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Software licenses | | | 89% | | | | 27% | | | | 100% | | | | 26% | | | | 53% | | | | | | -29% | | | | 6% | | | | -13% | |
Subscriptions and other recurring revenues | | | 16% | | | | -34% | | | | -35% | | | | -21% | | | | -21% | | | | | | -19% | | | | -2% | | | | -12% | |
Maintenance services | | | 13% | | | | 9% | | | | 6% | | | | 4% | | | | 8% | | | | | | 3% | | | | 1% | | | | 2% | |
Product revenues | | | 31% | | | | 11% | | | | 22% | | | | 10% | | | | 18% | | | | | | -9% | | | | 2% | | | | -3% | |
| | | | | | | | | |
Consulting services | | | 33% | | | | 9% | | | | -3% | | | | 22% | | | | 14% | | | | | | 5% | | | | 2% | | | | 4% | |
Reimbursed expenses | | | 66% | | | | 43% | | | | -4% | | | | 0% | | | | 18% | | | | | | 18% | | | | -10% | | | | 2% | |
Services revenue | | | 35% | | | | 12% | | | | -3% | | | | 20% | | | | 14% | | | | | | 6% | | | | 1% | | | | 4% | |
Total Revenues | | | 33% | | | | 11% | | | | 11% | | | | 14% | | | | 16% | | | | | | -3% | | | | 2% | | | | -1% | |
| | | | | | | | | | |
| | | | | | | | | |
SOFTWARE LICENSE AND SUBSCRIPTION REVENUES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Americas | | $ | 24,214 | | | $ | 22,371 | | | $ | 29,387 | | | $ | 24,782 | | | $ | 100,754 | | | | | $ | 17,816 | | | $ | 25,971 | | | $ | 43,787 | |
EMEA | | | 11,927 | | | | 8,619 | | | | 7,358 | | | | 14,414 | | | | 42,318 | | | | | | 9,603 | | | | 4,536 | | | | 14,139 | |
ASPAC | | | 4,497 | | | | 3,081 | | | | 1,719 | | | | 4,611 | | | | 13,908 | | | | | | 2,006 | | | | 5,287 | | | | 7,293 | |
| | | | | | | | | | |
Total Software Revenues | | $ | 40,638 | | | $ | 34,071 | | | $ | 38,464 | | | $ | 43,807 | | | $ | 156,980 | | | | | $ | 29,425 | | | $ | 35,794 | | | $ | 65,219 | |
| | | | | | | | | | |
| | | | | | | | | |
New sales | | $ | 6,096 | | | $ | 9,540 | | | $ | 7,693 | | | $ | 8,323 | | | $ | 31,652 | | | | | $ | 11,476 | | | $ | 3,221 | | | $ | 14,697 | |
Install-base sales | | | 34,542 | | | | 24,531 | | | | 30,771 | | | | 35,484 | | | | 125,328 | | | | | | 17,949 | | | | 32,573 | | | | 50,522 | |
| | | | | | | | | | |
Total Software Revenues | | $ | 40,638 | | | $ | 34,071 | | | $ | 38,464 | | | $ | 43,807 | | | $ | 156,980 | | | | | $ | 29,425 | | | $ | 35,794 | | | $ | 65,219 | |
| | | | | | | | | | |
| | | | | | | | | |
As % of Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
New sales | | | 15% | | | | 28% | | | | 20% | | | | 19% | | | | 20% | | | | | | 39% | | | | 9% | | | | 22% | |
Install-base sales | | | 85% | | | | 72% | | | | 80% | | | | 81% | | | | 80% | | | | | | 61% | | | | 91% | | | | 78% | |
| | | | | | | | | | |
Total Software Revenues | | | 100% | | | | 100% | | | | 100% | | | | 100% | | | | 100% | | | | | | 100% | | | | 100% | | | | 100% | |
| | | | | | | | | | |
| | | | | | | | | |
GROSS PROFIT MARGINS BY LINE OF
BUSINESS(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Software | | | 93.2% | | | | 91.2% | | | | 92.9% | | | | 93.8% | | | | 92.8% | | | | | | 91.1% | | | | 91.0% | | | | 91.0% | |
Maintenance | | | 78.4% | | | | 77.7% | | | | 79.8% | | | | 79.9% | | | | 79.0% | | | | | | 79.1% | | | | 78.4% | | | | 78.8% | |
Services | | | 17.8% | | | | 17.8% | | | | 24.6% | | | | 33.7% | | | | 23.9% | | | | | | 22.1% | | | | 21.6% | | | | 21.8% | |
Overall Gross Profit Margin | | | 59.5% | | | | 56.8% | | | | 61.3% | | | | 64.7% | | | | 60.7% | | | | | | 58.1% | | | | 58.8% | | | | 58.4% | |
| | | | | | | | | |
MISCELLANEOUS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average sales price (ASP)(2)—TTM | | $ | 708 | | | $ | 691 | | | $ | 843 | | | $ | 802 | | | | | | | | | $ | 741 | | | $ | 775 | | | | | |
Large deal count (greater than $1M)(2) —TTM | | | 24 | | | | 27 | | | | 34 | | | | 37 | | | | | | | | | | 35 | | | | 36 | | | | | |
Maintenance Retention | | | 98.5% | | | | 96.7% | | | | 95.7% | | | | 95.5% | | | | | | | | | | 97.2% | | | | 95.9% | | | | | |
| | | | | | | | | | |
| | | | | | | | | |
FREE CASH FLOW(3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
GAAP Operating Cash Flow | | $ | 59,216 | | | $ | 33,898 | | | $ | 36,927 | | | $ | (20,210) | | | $ | 109,831 | | | | | $ | 48,866 | | | $ | 28,858 | | | $ | 77,724 | |
Capital Expenditures | | | (2,997) | | | | (1,818) | | | | (2,810) | | | | (11,819) | | | | (19,444) | | | | | | (3,000) | | | | (1,836) | | | | (4,836) | |
| | | | | | | | | | |
Free Cash Flow(4) | | $ | 56,219 | | | $ | 32,080 | | | $ | 34,117 | | | $ | (32,029) | | | $ | 90,387 | | | | | $ | 45,866 | | | $ | 27,022 | | | $ | 72,888 | |
| | | | | | | | | | |
% Growth over prior year | | | | | | | | | | | | | | | | | | | | | | | | | -18% | | | | -16% | | | | -17% | |
| | | | | | | | | |
Free Cash Flow | | $ | 56,219 | | | $ | 32,080 | | | $ | 34,117 | | | $ | (32,029) | | | $ | 90,387 | | | | | $ | 45,866 | | | $ | 27,022 | | | $ | 72,888 | |
Litigation settlements | | | (37,500) | | | | — | | | | — | | | | 54,000 | | | | 16,500 | | | | | | — | | | | — | | | | — | |
Investigation and restatement costs | | | — | | | | — | | | | — | | | | — | | | | — | | | | | | 5,236 | | | | 5,499 | | | | 10,735 | |
| | | | | | | | | | |
Adjusted Free Cash Flow | | $ | 18,719 | | | $ | 32,080 | | | $ | 34,117 | | | $ | 21,971 | | | $ | 106,887 | | | | | $ | 51,102 | | | $ | 32,521 | | | $ | 83,623 | |
| | | | | | | | | | |
| (1)�� | Gross Profit Margins are calculated using line of business Revenue, less line of business Cost of Revenue, divided by line of business Revenue. |
| (2) | Trailing twelve months |
| (3) | This presentation includes Non-GAAP measures. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement consolidated financial statements prepared under GAAP. Management’s presentation of non-GAAP financial measures is intended to be supplemental in nature and should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. |
| (4) | Q1 2011 results included $37.5 million from favorable patent litigation settlement. Q4 2011 includes $54.0 million, net cash paid for the settlement with Dillard's. Q1 and Q2 2012 results include, $5.2 million and $5.5 million, respectively, of investigation and restatement costs. |
JDA Software Announces Second Quarter 2012 Results
Page 16
JDA SOFTWARE GROUP, INC.
QUARTERLY 2010 FINANCIAL RESULTS
CONSOLIDATED STATEMENT OF OPERATIONS
($ in thousands, except per share data, unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | 2010 | |
| | Q1 | | | Q2 | | | Q3 | | | Q4 | | | Full Year | |
| | | | |
REVENUES: | | | | | | | | | | | | | | | | | | | | |
Software licenses | | $ | 18,890 | | | $ | 23,839 | | | $ | 17,326 | | | $ | 31,435 | | | $ | 91,490 | |
Subscriptions and other recurring revenues | | | 4,287 | | | | 5,806 | | | | 5,758 | | | | 5,292 | | | | 21,143 | |
Maintenance services | | | 57,112 | | | | 60,525 | | | | 63,741 | | | | 64,399 | | | | 245,777 | |
| | | | |
Product revenues | | | 80,289 | | | | 90,170 | | | | 86,825 | | | | 101,126 | | | | 358,410 | |
| | | | | |
Consulting services | | | 43,148 | | | | 53,831 | | | | 62,883 | | | | 55,608 | | | | 215,470 | |
Reimbursed expenses | | | 2,845 | | | | 4,566 | | | | 6,276 | | | | 6,175 | | | | 19,862 | |
| | | | |
Services revenue | | | 45,993 | | | | 58,397 | | | | 69,159 | | | | 61,783 | | | | 235,332 | |
| | | | |
Total Revenues | | | 126,282 | | | | 148,567 | | | | 155,984 | | | | 162,909 | | | | 593,742 | |
| | | | | |
COST OF REVENUES: | | | | | | | | | | | | | | | | | | | | |
Cost of software licenses | | | 1,008 | | | | 909 | | | | 1,103 | | | | 1,236 | | | | 4,256 | |
Amortization of acquired software technology | | | 1,576 | | | | 1,803 | | | | 1,833 | | | | 1,835 | | | | 7,047 | |
Cost of maintenance services | | | 12,347 | | | | 13,973 | | | | 12,932 | | | | 13,286 | | | | 52,538 | |
| | | | |
Cost of product revenues | | | 14,931 | | | | 16,685 | | | | 15,868 | | | | 16,357 | | | | 63,841 | |
| | | | | |
Cost of consulting services | | | 36,432 | | | | 43,396 | | | | 45,786 | | | | 45,429 | | | | 171,043 | |
Reimbursed expenses | | | 2,845 | | | | 4,566 | | | | 6,276 | | | | 6,175 | | | | 19,862 | |
| | | | |
Cost of service revenue | | | 39,277 | | | | 47,962 | | | | 52,062 | | | | 51,604 | | | | 190,905 | |
| | | | |
Total Cost of Revenues | | | 54,208 | | | | 64,647 | | | | 67,930 | | | | 67,961 | | | | 254,746 | |
| | | | |
GROSS PROFIT | | | 72,074 | | | | 83,920 | | | | 88,054 | | | | 94,948 | | | | 338,996 | |
| | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | |
Product development | | | 17,978 | | | | 19,436 | | | | 17,328 | | | | 17,981 | | | | 72,723 | |
Sales and marketing | | | 21,125 | | | | 24,460 | | | | 20,258 | | | | 25,498 | | | | 91,341 | |
General and administrative | | | 17,730 | | | | 19,726 | | | | 17,472 | | | | 17,184 | | | | 72,112 | |
Amortization of intangibles | | | 8,566 | | | | 9,915 | | | | 9,966 | | | | 9,968 | | | | 38,415 | |
Restructuring charges | | | 8,466 | | | | 3,840 | | | | 4,172 | | | | 4,453 | | | | 20,931 | |
Acquisition-related charges | | | 6,743 | | | | 865 | | | | 473 | | | | 34 | | | | 8,115 | |
Litigation settlement | | | — | | | | — | | | | — | | | | 14,000 | | | | 14,000 | |
| | | | |
Total Operating Expenses | | | 80,608 | | | | 78,242 | | | | 69,669 | | | | 89,118 | | | | 317,637 | |
| | | | |
OPERATING INCOME | | | (8,534 | ) | | | 5,678 | | | | 18,385 | | | | 5,830 | | | | 21,359 | |
Interest expense and amortization of loan fees | | | 6,086 | | | | 6,182 | | | | 6,169 | | | | 6,321 | | | | 24,758 | |
Interest income and other, net | | | (1,189 | ) | | | 544 | | | | (378 | ) | | | (455 | ) | | | (1,478 | ) |
| | | | |
INCOME BEFORE INCOME TAXES | | | (13,431 | ) | | | (1,048 | ) | | | 12,594 | | | | (36 | ) | | | (1,921 | ) |
Income tax provision | | | (3,141 | ) | | | (617 | ) | | | 3,731 | | | | (4,035 | ) | | | (4,062 | ) |
| | | | |
NET INCOME | | $ | (10,290 | ) | | $ | (431 | ) | | $ | 8,863 | | | $ | 3,999 | | | $ | 2,141 | |
| | | | |
| | | | | |
EARNINGS PER SHARE: | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | (0.26 | ) | | $ | (0.01 | ) | | $ | 0.21 | | | $ | 0.10 | | | $ | 0.05 | |
Diluted | | $ | (0.26 | ) | | $ | (0.01 | ) | | $ | 0.21 | | | $ | 0.09 | | | $ | 0.05 | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 39,343 | | | | 41,672 | | | | 41,774 | | | | 41,868 | | | | 41,173 | |
Diluted | | | 39,343 | | | | 42,265 | | | | 42,234 | | | | 42,280 | | | | 41,710 | |
JDA Software Announces Second Quarter 2012 Results
Page 17
JDA SOFTWARE GROUP, INC.
QUARTERLY 2011 FINANCIAL RESULTS
CONSOLIDATED STATEMENT OF OPERATIONS
($ in thousands, except per share data, unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | 2011 | |
| | Q1 | | | Q2 | | | Q3 | | | Q4 | | | Full Year | |
| | | | |
REVENUES: | | | | | | | | | | | | | | | | | | | | |
Software licenses | | $ | 35,644 | | | $ | 30,221 | | | $ | 34,726 | | | $ | 39,626 | | �� | $ | 140,217 | |
Subscriptions and other recurring revenues | | | 4,994 | | | | 3,850 | | | | 3,738 | | | | 4,181 | | | | 16,763 | |
Maintenance services | | | 64,782 | | | | 66,131 | | | | 67,632 | | | | 67,240 | | | | 265,785 | |
| | | | |
Product revenues | | | 105,420 | | | | 100,202 | | | | 106,096 | | | | 111,047 | | | | 422,765 | |
| | | | | |
Consulting services | | | 57,378 | | | | 58,808 | | | | 60,970 | | | | 67,890 | | | | 245,046 | |
Reimbursed expenses | | | 4,720 | | | | 6,512 | | | | 6,033 | | | | 6,167 | | | | 23,432 | |
| | | | |
Services revenue | | | 62,098 | | | | 65,320 | | | | 67,003 | | | | 74,057 | | | | 268,478 | |
| | | | |
Total Revenues | | | 167,518 | | | | 165,522 | | | | 173,099 | | | | 185,104 | | | | 691,243 | |
| | | | | |
COST OF REVENUES: | | | | | | | | | | | | | | | | | | | | |
Cost of software licenses | | | 949 | | | | 1,181 | | | | 1,009 | | | | 1,019 | | | | 4,158 | |
Amortization of acquired software technology | | | 1,834 | | | | 1,833 | | | | 1,726 | | | | 1,702 | | | | 7,095 | |
Cost of maintenance services | | | 13,986 | | | | 14,736 | | | | 13,654 | | | | 13,515 | | | | 55,891 | |
| | | | |
Cost of product revenues | | | 16,769 | | | | 17,750 | | | | 16,389 | | | | 16,236 | | | | 67,144 | |
| | | | | |
Cost of consulting services | | | 46,301 | | | | 47,209 | | | | 44,505 | | | | 42,962 | | | | 180,977 | |
Reimbursed expenses | | | 4,720 | | | | 6,512 | | | | 6,033 | | | | 6,167 | | | | 23,432 | |
| | | | |
Cost of service revenue | | | 51,021 | | | | 53,721 | | | | 50,538 | | | | 49,129 | | | | 204,409 | |
| | | | |
Total Cost of Revenues | | | 67,790 | | | | 71,471 | | | | 66,927 | | | | 65,365 | | | | 271,553 | |
| | | | |
GROSS PROFIT | | | 99,728 | | | | 94,051 | | | | 106,172 | | | | 119,739 | | | | 419,690 | |
| | | | | |
OPERATING EXPENSES: | | | | | | | | | | | | | | | | | | | | |
Product development | | | 20,092 | | | | 19,762 | | | | 18,747 | | | | 18,297 | | | | 76,898 | |
Sales and marketing | | | 26,240 | | | | 25,364 | | | | 25,756 | | | | 26,768 | | | | 104,128 | |
General and administrative | | | 22,359 | | | | 16,314 | | | | 15,815 | | | | 18,005 | | | | 72,493 | |
Amortization of intangibles | | | 9,718 | | | | 9,592 | | | | 9,562 | | | | 9,549 | | | | 38,421 | |
Restructuring charges | | | 542 | | | | (31 | ) | | | 768 | | | | 643 | | | | 1,922 | |
Litigation settlement | | | (37,500 | ) | | | — | | | | — | | | | 39,000 | | | | 1,500 | |
| | | | |
Total Operating Expenses | | | 41,451 | | | | 71,001 | | | | 70,648 | | | | 112,262 | | | | 295,362 | |
| | | | |
OPERATING INCOME | | | 58,277 | | | | 23,050 | | | | 35,524 | | | | 7,477 | | | | 124,328 | |
Interest expense and amortization of loan fees | | | 6,211 | | | | 6,439 | | | | 6,435 | | | | 6,415 | | | | 25,500 | |
Interest income and other, net | | | (1,233 | ) | | | (767 | ) | | | (641 | ) | | | (1,150 | ) | | | (3,791 | ) |
| | | | |
INCOME BEFORE INCOME TAXES | | | 53,299 | | | | 17,378 | | | | 29,730 | | | | 2,212 | | | | 102,619 | |
Income tax provision (benefit) | | | 5,186 | | | | 4,665 | | | | 11,443 | | | | (1,363 | ) | | | 19,931 | |
| | | | |
NET INCOME | | $ | 48,113 | | | $ | 12,713 | | | $ | 18,287 | | | $ | 3,575 | | | $ | 82,688 | |
| | | | |
| | | | | |
EARNINGS PER SHARE: | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 1.14 | | | $ | 0.30 | | | $ | 0.43 | | | $ | 0.08 | | | $ | 1.95 | |
Diluted | | $ | 1.13 | | | $ | 0.30 | | | $ | 0.43 | | | $ | 0.08 | | | $ | 1.93 | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 42,133 | | | | 42,354 | | | | 42,511 | | | | 42,644 | | | | 42,412 | |
Diluted | | | 42,607 | | | | 42,740 | | | | 42,795 | | | | 42,897 | | | | 42,761 | |
JDA Software Announces Second Quarter 2012 Results
Page 18
JDA SOFTWARE GROUP, INC.
2012 GUIDANCE
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
($ in millions except per share data, unaudited)
| | | | | | | | |
| | | Outlook for the Year Ending | |
| | | December 31, 2012 | |
| | | Low | | | High | |
Net Income | | $ | 36 | | | $ | 41 | |
Income tax provision | | | 21 | | | | 24 | |
Interest expense and amortization of loan fees | | | 26 | | | | 26 | |
Amortization of acquired software technology | | | 7 | | | | 7 | |
Amortization of intangibles | | | 38 | | | | 38 | |
Depreciation | | | 15 | | | | 15 | |
| | | | | | | | |
EBITDA | | $ | 143 | | | $ | 151 | |
Restructuring charges | | | 2 | | | | 2 | |
Stock-based compensation | | | 15 | | | | 17 | |
Interest income and other, net | | | (2 | ) | | | (2 | ) |
Investigation and restatement costs | | | 17 | | | | 17 | |
| | | | | | | | |
Adjusted EBITDA | | $ | 175 | | | $ | 185 | |
| | |
Income Before Taxes | | $ | 57 | | | $ | 65 | |
Amortization of acquired software technology | | | 7 | | | | 7 | |
Amortization of intangibles | | | 38 | | | | 38 | |
Restructuring charges | | | 2 | | | | 2 | |
Stock-based compensation | | | 15 | | | | 17 | |
Investigation and restatement costs | | | 17 | | | | 17 | |
| | | | | | | | |
Adjusted Income Before Income Taxes | | $ | 136 | | | $ | 146 | |
Adjusted Income Tax Expense | | | 48 | | | | 51 | |
| | | | | | | | |
Adjusted Net Income | | $ | 88 | | | $ | 95 | |
| | | | | | | | |
Adjusted Non-GAAP Diluted EPS | | $ | 2.05 | | | $ | 2.20 | |
| | | | | | | | |
| | |
Shares used to compute non-GAAP diluted earnings per share | | | 43 | | | | 43 | |
Note: Subtotals may not add due to rounding.
JDA Software Announces Second Quarter 2012 Results
Page 19
“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally accompanied by words such as “believe,” “should,” “would,” “project,” “estimate,” “anticipate,” “intend,” “plan,” “will,” “can,” “may,” and “expect” and other words with forward-looking connotations. All forward-looking statements are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in, or predicted by, any forward-looking statements. These factors and risks include, but are not limited to, financial, operational and legal risks and uncertainties detailed from time to time in the Company’s filings with the SEC. JDA is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Information
This press release and the related conference call contain non-GAAP financial measures. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement consolidated financial statements prepared under GAAP. Management’s presentation of non-GAAP financial measures is intended to be supplemental in nature and should not be considered in isolation or as a substitute for the most directly comparable GAAP measures.
Use and Economic Substance of Non-GAAP Financial Measures Used by JDA
The Company uses non-GAAP measures of performance, including adjusted net income, EBITDA (earnings before interest, taxes, depreciation and amortization) and earnings per share, in its public statements. Management uses, and chooses to disclose, these non-GAAP financial measures because (i) such measures provide an additional analytical tool to clarify the Company’s results from operations and help the Company to identify underlying trends in its results of operations; (ii) the Company uses non-GAAP earnings measures, including EBITDA, as a measure of profitability because such measures help the Company compare its performance on a consistent basis across time periods; and (iii) these non-GAAP measures are employed by the Company’s management in its own evaluation of performance and are utilized in financial and operational decision making processes, such as budget planning and forecasting. The Company also internally uses adjusted EBITDA measures for determining (a) compliance with certain financial covenants in its credit agreement and (b) executive and employee compensation. Set forth below are additional reasons why specific items are excluded from the Company’s non-GAAP financial measures:
| | • | | Amortization charges for acquired software technology are excluded because they result from prior acquisitions, rather than ongoing operations, and absent additional acquisitions, are expected to decline over time. |
| | • | | Amortization charges for other intangibles are excluded because they are non-cash expenses, and while tangible and intangible assets support our business, we do not believe the related amortization costs are directly attributable to the operating performance of our business. |
| | • | | Restructuring charges are significant non-routine expenses that cannot be predicted and typically relate to a change in our business model or to a change in our estimate of the costs to complete a plan to exit an activity of an acquired company. The exclusion of these charges promotes period-to-period comparisons and transparency. Such charges are primarily related to severance costs and/or the disposition of excess facilities driven by the changes to our business model. |
| | • | | Stock-based compensation is not an expense that typically requires or will require cash settlement by the Company. |
| | • | | Litigation settlement costs related to inherited i2 litigation and the investigation and restatement costs are significant non-routine expenses. Exclusion of these costs promotes period-to-period comparisons and transparency as we do not believe these costs are directly attributable to the operating performance of our business. |
JDA Software Announces Second Quarter 2012 Results
Page 20
Material Limitations (and Compensation thereof) Associated with the Use of Non-GAAP Financial Measures
Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company’s GAAP results. In the future, the Company expects to continue reporting non-GAAP financial measures excluding items described above and the Company expects to continue to incur expenses similar to the non-GAAP adjustments described above. Accordingly, exclusion of these and other similar items in our non-GAAP presentation should not be construed as an inference that these costs are unusual, infrequent or non-recurring.
Some of the limitations in relying on non-GAAP financial measures are:
| | • | | Amortization of acquired technology and intangibles, though not directly affecting our current cash position, represent the loss in value as the technology in our industry evolves, is advanced or is replaced over time. The expense associated with this loss in value is not included in the non-GAAP net income presentation and therefore does not reflect the full economic effect of the ongoing cost of maintaining our current technological position in our competitive industry which is addressed through our research and development program. |
| | • | | The Company may engage in acquisition transactions in the future. In addition, we incur other restructuring charges from time to time when necessary to adjust our business model. Restructuring related charges may therefore continue to be incurred and should not be viewed as non-recurring. |
| | • | | Stock-based compensation is an important component of our incentive compensation arrangements and will be reflected as expenses in our GAAP results for the foreseeable future. |
| | • | | Other companies, including other companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure. |
We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP financial measures only supplementally. We also provide reconciliations of each non-GAAP financial measure to our most directly comparable GAAP measure, and we encourage investors to review carefully those reconciliations.
Usefulness of Non-GAAP Financial Measures to Investors
The Company believes that the presentation of these non-GAAP financial measures is warranted for several reasons. First, such non-GAAP financial measures provide investors and management an additional analytical tool for understanding the Company’s financial performance by excluding the impact of items which may obscure trends in the core operating performance of the business. Second, since the Company has historically reported non-GAAP results to the investment community, the Company believes the inclusion of non-GAAP numbers provides consistency and enhances investors’ ability to compare the Company’s performance across financial reporting periods.
JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, Ariz. 85260
