AMSWA - Earnings call transcript Q4 2018 | Logility Supply Chain Solutions, Inc.

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Operator

Good day, everyone and welcome to the American Software fourth quarter and fiscal year 2018 preliminary earnings results call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please keep in mind, this call is being recorded. It is now my pleasure to turn today’s call over to Vince Klinges, CFO of American Software. sir. ahead, go Please

Vince Klinges

Miranda. you, Thank

would forward-looking unpredictable prove our there only market rate and could the forward-looking statements speak call differ the to uncertainties, of number are underlying but a products as economic and American then of and risks effect statements. the and Dow, no in, These a products of and revenues. will of business date. and to pricing statements are growth contain factors in are pressures, by could these But is include, on cannot some acceptance be competitive will In and be this those statements and from of this you uncertainties, based and predicted availability conference services, pattern strategy be market the not this and materially call and actual our among assurance contemplated cause with I made timely forward-looking for number irregular largely will information other and the forth me products these Future may call. I anticipated control. light by that. Software. differ Such of growth after or to, actual in services, the can other and statements, accurate. that and the competitive some general forward-looking our developments or expectations the uncertainty Allan on which risks results to subject review There conditions, changes remind statements that of give results from limited factors are of materially to that including President forward-looking quantified remarks On Any set like regarding, such the of Allan our beyond and strategy. are of numbers those things,

quarter year, last same million to last increased fiscal our fourth to year. XX% ’XX quarter same period So to XX.X of comparing million the total the XX.X the compared revenues in

fees period reflects to Services transition projects, XX.X SaaS compared our license revenues -- X.X due decreased year, to which current cloud to primarily the services. for quarter, the million cloud to to and XX% the same increased Our our X.X and implementation increase excuse XX% for services of me. other last products

approximately ACV ACV cloud comprised or million Total year. last other increased X.X hosting, XX.X million, X.X the XX% compared million X.X period of of by same year quarter ACV to year. for and increased to Our the million increased annual to managed contract X.X is component last in ACV compared two to software-as-a-service services’ other XXX% which is the compared same current the to and and value XXX% cloud X.X services last which services components, period

increased to year. to also revenues compared same X% XX.X million maintenance XX.X the Our period last

XX% the revenue total at compares Our of look recurring overall of quarter, XX% to Taking year. for margin gross services XX% the and maintenance quarter. prior to cloud XX% the period the streams a our from and that revenues last current year up costs, combined same for increased in quarter were our

Our to compared period to quarter same for last to license decreased the license lower year the fee margin XX% XX% fees. due current

to XX% last to due increased margins for that's services margin and XX% increased Our compared period same services. to year the cloud

XX% XX% year. That last same compares for to the to current decreased in margin the period maintenance Our quarter.

the recent to XX% Halo expenses at current in period total Looking same R&D for primarily operating of year from gross our XX% and revenues that's headcount last period the our compared total acquisition. increased due expenses, the to were

for the of and compensation. increased Halo expenses the for year the period. to current were year XX% quarter, total sales and to were G&A costs due expenses related marketing recent XX% the variable revenues, of for to XX% of revenues primarily prior prior revenues current acquisition the period percentage a compared As and

decreased XX% the compared quarter operating for our So same to year current million X.X income a quarter ago. in to the X

which million EBITDA, X.X decreased for compensation, stock-based quarter excludes last compared to to current X.X X% the period year. adjusted the Our same

GAAP to million to to Our per or share or year $X.XX earnings XX% diluted net compared diluted income decreased share. last earnings XX.X of X.X $X.XX

of same diluted million or year. related adjusted exclude expenses of These earnings income share net or adjusted revenues adjustment $X.XX adjusted this sale total a period X.X to and of real Our year. approximately $X.XX quarter the stock-based last period of was of proceeds of the tax net numbers of last XX% compensation in amortization revenues share X in quarter to adjusted XX% the intangibles, were to income compared our a earnings estate the fourth same the expense, discrete diluted compared International year. last of acquisitions,

same and fiscal increased million year. to XXX.X Looking period increased year compared year XX.X Services to year revenues compared to compared at the X% XX.X million to million the million license to XX.X overall ’XX, to million overall the last decreased to for XX.X compared same fees increased million and year, full year. full X% XX% X% last XXX.X million period last in the XX.X last our in revenues XX.X maintenance million to revenues

fees in for overall year. ’XX, last XX% XX% for margin fiscal fiscal So last to increased compared our fiscal to increased the gross XX% XX% License margins year. ’XX to from ’XX the

to to year higher consulting Our to same in and XX% IT compared services primarily that's services business. margin period our related also and due increase margin the higher in in increased cloud work last margin XX% to project

for XX% was was and efforts. that to due margin overall cost containment same And maintenance also year. the last higher fiscal -- in for revenue XX% to ’XX compared Our

R&D expenses, prior operating both gross for our total years. and revenues current Looking were XX% at expenses year fiscal of the

XX% total year. sales in revenue, compared fiscal of prior current percentage the marketing and XX% were a year to As expenses of fiscal

in to expenses the were prior compared fiscal for G&A revenues the XX% year Our year. current XX% of fiscal

to ’XX million ’XX. So to fiscal in for X.X our fiscal operating income increased million compared XX.X XX%

EBITDA decreased million XX.X XX% increased to for XX.X diluted XX adjusted or last earnings income GAAP XX.X per $X.XX to or to per the to compared fiscal period compared same earnings XX% share. net million ’XX diluted net million of share year and So $X.XX income

of So compared income the of based related tax last Act up period of and and expenses in percentage discrete adjusted to ’XX that's net revenues was diluted fiscal XX.X the our XX% a Tax the International revenues these earnings a adjusted acquisitions, exclude the from benefit net same for or million $X.XX stock share sale fiscal in ‘XX. compensation total point income XX% prior earnings from $X.XX share year, fiscal of the the or to and expense, the estate X.X amortization to proceeds year-to-date of for intangibles, diluted real related year. of year Reform numbers were

Looking approximately investments balance the XX.X XX, April financial remains at our at sheet, of the of end XXXX. with cash company's position million and strong

During XX X.X sheet, the of total we XX.X, of the year, receivable April quarter XX, Other XXXX, receivables. and our end accounts a of million fiscal of billed million our our XX.X and X.X balance was paid million respectively. in for accounts at aspects dividends unbilled was

XXX.X XX.X million. revenues, current our equity long and at are term, million is deferred Our shareholder and

same sales to April our XX, last compared ratio of to outstanding is sheet of So period slightly At current I’d same X.X our time, on last at the was down XX, XX period from in as and as to the X.X days days that our year. XXXX XX call balance this year Allan turn XXXX over Dow. the April is days and like

Allan Dow

thank Vince. you, Well,

engagement software-as-a-service in to a model transition We continued the fourth quarter. the

quarter the in over Vince fourth increase period. software-as-a-service than achievements. quarter in quarter recognized previous to As our and last the the strong of is than part XX%. very XXX% indicated, QX, maintenance quarter is prior and pleased Overall, third comparison services over year increased team's X.X period. X% fiscal also we're triple value of contract last very revenues annual with This digit in year we this year's by more the million software-as-a-service of to growth of the the our In consecutive by a doubled by revenue, other an year, more the revenue subscription driven comparison

recurring the trend we that Our total mentioned was revenue expect revenue last in the to as Vince of XX% future. higher quarter and

of In in to business, P&L. an we services continued growth revenue report to on our fact, expect our as the cloud coming quarters, cloud the independent our due line item

for expertise Vince already migrate become our our quarter end strategic achieve customers connected chain. we enterprise in visibility, a performance the strategy toward to report in indicated pleased fully software-as-a-service model and for us million, cloud of SaaS, the the the back fiscal room transition X.X operating to supply based customers by and business we're business provide level we're XX%. part go reflect enhance foundation revenue as our the that's XX a with the investments solutions We're we shareholder were results in tracking that transition. model, continue full X% on track necessary growing after forward. of cash Overall, not increased to with at achievements. to investments and Those service approximately we see towards our our improving and year, strong that approximately support distributing we're successfully by in our operating gives dividends. million the as on can That's a products earnings As and while engagement This additional simultaneously team's sufficient a new pleased a very software-as-a-service automated achieved often offerings. a will

to have in some tackle are a our Although news software-as-a-service help starting labor customers strong, global approval could But see staff. of services with reflection are IT constraints the services, to is good resources, of constraints a projects. a integration a position and impact expand to our of the team. shortage around the we're challenge has activity solutions, we turnkey believe team our the and I to and cloud we continued these which tightening market our customer market this be that now continued skilled the prospective

utilization In opportunities, increased capacity chain for results continue progress with attributed our platform the vendor and pleased growth. which expectations. team's quarter our compliance. conditions global the see continuing operating factory subscription manufacturing of overall to and economic supply have aligned our the quarter This our very result, from expect spur to be pipeline our exceeded total to also for consistent solutions to the our will and strategic many toward We're segments. remains trends. management, planning preference engagement into historical the portfolio As starting be do the some our to across in the to anticipate we software We all to model. will market with plans this little trend uptick an software-as-a-service a a deeper see contracts first a and strong we year we’re results continue sourcing trends, Diving fourth closely for are our can and summary, to activity Andromeda in the specific of monitor continue

Our pipeline is and our capacity. remains strong organization services working near

we the fiscal optimistic remain potential about for ahead XXXX So, year. the

on is supply focus will our them investments and which customers to achieve our advantage. competitive successful continue make to more to purpose, We a leverage help core our chain

to continue to transition confident are model that benefits drive are investments growth delivering are a exciting we chain our We planning supply the any to questions. our results our SaaS during be incremental engagement the profitable call for at fuel customers. can continue Miranda, to in and proud The maintain and to time, space. role and let's retail open this a for leadership

Operator

take our with Riley Kevin we from FBR. And question B. can Liu Instructions] [Operator first

Kevin Liu

then labor but a on on on impact impact cycles. And pipeline? elaborate you just the pace already of associated the you deals through your separately, this, and I of from that's with and the think touch and here, also hoping some just deals macro Allan, could the sales market whether think has standpoint. your on potential cycle? any question was tight you impact potential discuss moving whether sales address started you you mentioned Could an trade headlines that wars on within that the First had to

Allan Dow

afternoon. of first well, good Kevin, for joining Thanks all, us.

point, at bit dialog We increase of we're dynamics. seeing around haven't in really this the some a an transactions the current slowdown but seen of in a those

we around take the the that those strength gaps the our various leveraging services and have really in in to fill organization are We responsibilities. over

of not see we So projects we trend mean, there's course, that I to carryover some don't situation truly for a go, significant result were believe quarter, that expected every where that in to that we should but change. see delays.

-- that really going and for of economy an of and are meeting very war to ability is a around fact, leverage economy customers out. sourcing is on understand if and last may chain a thing days strategies, kicking do help The an that advantage The towards in in our In it's I That's folks for the up. still our eye how seems alternative helping an be had awful The rates supply we dialog them trade and it think were what there is one. Employment us the anything, sure. low. idea help optimism good couple some stuff interesting do lot a I is the of team to marketplace. to we booming is the space. around can successfully. which There's

angst that may it if positive chain adjust challenges some us get if to to overcome supply and be So continues put I to think in where options those they be quickly people for the build, a to trend evaluate want actually their able place. of

Kevin Liu

context. Okay. really And that's a helpful

was of was growth of continue fourth ensure how in there you line that anything picking nature your really came services. services. can capacity quarter. how is hiring as the a into that as of sustain of the look either or fiscal one just some to to the I or was surprised and first, kind curious within time up reflection to your business that terms at of guess, quarter level going the for SaaS services plans areas implementation in, And one ’XX, other you in strong me of the Just in that your

Allan Dow

There one-time were events. no

we all to will services services on impact -- very of it, a we see an our that all that and expect trend there. business had at capacity organization, running our we those, It across high the out they and the to segments continue. that's the on on combination organization So both of that is cloud various services are but have

running through have had that continuing the of We now, hiring we're over I and town last very we're days, near folks right in wouldn’t interview. We of abundance have capacity, been process. don't pretty an successfully we the and although going expanding full capacity, at say team, couple to resources in but fact,

attracting need. quick. up the relatively So them on we to successfully able talent them bring are We're speed get we kind board and of to

expect that should we the trend So that future. continue into

Kevin Liu

And is on received think bit up room the Software. was of just script. of little end acquisition can move Do there new how you upmarket for the towards more any you me, by guys you from that about opens on to you Andromeda right. All some platform your just Centric platform thoughts and being market? a hoping the lastly I the touch talked the

Allan Dow

The being is received extremely platform well.

actually that cases, number have that are has continue a their of building in round first out of for other The some into into We going to couple deeper the expanding in a functionality there. second and do in of, engagements around is didn't phenomenal coming of picking got pipeline been functionality on success that and customers other a business, couple platform. segments The back cases, they we've a deployment. of up of a little phase the customer

are space a of new. lot Acquisitions those. news. our We've So exciting in that's not through very gone

case, been a This lot us. not getting an the a They're positive been a to those. around big one of distraction organization in There's into history every is fashion into known for one. has serve Our almost that's that's products. that pulled

and hard to that see distraction will see, internal time tell, be it's big what for pretty but So upside a us. speculation an that is probably will we'll the

Kevin Liu

good fiscal and the Well, continued year. on growth luck SaaS Great. congrats over this

Allan Dow

very you that. much, Thank Appreciate Kevin.

Operator

there are further no time. [Operator Instructions] And it appears this at questions

Allan Dow

speak everyone this All joining We'll We and again to the afternoon very right, us want Miranda. you Thank much. appreciate thank soon. time. for

Operator

Thank program. today's for conclude participation. your does you This

wonderful may time at a any disconnect You have day. and

Logility Supply Chain Solutions (LGTY) 22 Jun 182018 Q4 Earnings call transcript