Key fourth quarter financial highlights:
- Total revenues for the quarter ended April 30, 2016 were $28.9 million, an increase of 5% over the comparable period last year.
- Software license revenues for the quarter ended April 30, 2016 were $6.6 million, an increase of 30% compared to the same period last year.
- Services and other revenues for the quarter ended April 30, 2016 decreased 6% to $12.0 million compared to $12.8 million for the same period last year.
- Maintenance revenues for the quarter ended April 30, 2016 increased 5% to $10.3 million compared to $9.8 million for the same period last year.
- Operating earnings for the quarter ended April 30, 2016 were $3.9 million, an increase of 13% compared to the same period last year.
- GAAP net earnings for the quarter ended April 30, 2016 increased 32% to $3.4 million or $0.12 per fully diluted share compared to $2.6 million or $0.09 per fully diluted share for the same period last year.
- Adjusted net earnings for the quarter ended April 30, 2016, which excludes stock–based compensation expense, amortization of acquisition–related intangibles and discrete tax adjustments were $3.3 million or $0.11 per fully diluted share compared to $2.9 million or $0.10 per fully diluted share for the same period last year, which excluded stock–based compensation expense, amortization of acquisition–related intangibles and discrete tax adjustments in the prior year.
- EBITDA increased 6% to $5.3 million for the quarter ended April 30, 2016 compared to $5.0 million for the quarter ended April 30, 2015.
- Adjusted EBITDA increased 6% to $5.6 million for the quarter ended April 30, 2016 compared to $5.3 million for the quarter ended April 30, 2015. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense, stock–based compensation, and other significant non–routine operating and non–operating income and expense items, if applicable.
- Cloud Services Annual Contract Value (ACV) increased approximately 37% to $3.8 million for the quarter ended April 30, 2016 compared to $2.8 million for the same period of the prior year. The ACV is comprised of software–as–a–service (SaaS) ACV of $1.9 million compared to approximately $1.4 million during the same period last year and other cloud services ACV of $1.9 million compared to $1.4 million during the same period last year.
Key fiscal year 2016 financial highlights:
- Total revenues for the twelve months ended April 30, 2016 were $113.9 million, an 11% increase over the prior year.
- Software license fees for the twelve month period were $22.0 million, a 32% increase compared to the prior year.
- Services and other revenues for the twelve months ended April 30, 2016 increased 8% to $51.1 million compared to $47.2 million for the prior year.
- Maintenance revenues for the twelve months ended April 30, 2016 were $40.7 million, a 5% increase compared to $38.9 million for the prior year.
- For the twelve months ended April 30, 2016, the Company reported operating earnings of approximately $13.5 million, a 45% increase over the prior year.
- GAAP net earnings were approximately $10.2 million or $0.35 per fully diluted share for the twelve months ended April 30, 2016, a 26% increase compared to $8.1 million or $0.28 per fully diluted share for the prior year.
- Adjusted net earnings for the twelve months ended April 30, 2016, which excludes stock–based compensation expense, amortization of acquisition–related intangibles and discrete tax adjustments increased 28% to $10.5 million or $0.36 per fully diluted share, compared to $8.2 million or $0.29 per fully diluted share for the same period last year, which excluded stock–based compensation expenses and acquisition–related amortization of intangibles and discrete tax adjustments.
- Adjusted EBITDA increased 24% to $20.7 million for the twelve months ended April 30, 2016 compared to $16.7 million for the twelve months ended April 30, 2015. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense, stock–based compensation, and other significant non–routine operating and non–operating income and expense items, if applicable.
The Company is including Annual Contract Value (ACV), EBITDA, adjusted EBITDA, adjusted net earnings and adjusted net earnings per share in the summary financial information provided with this press release as supplemental information relating to its operating results. This financial information is not in accordance with, or an alternative for, GAAP–compliant financial information and may be different from non–GAAP net earnings and non–GAAP per share measures used by other companies. The Company believes that this presentation of ACV, EBITDA, adjusted EBITDA, adjusted net earnings and adjusted net earnings per share provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations. The ACV is a forward–looking operating measure used by management to better understand cloud services (SaaS and other related cloud services) revenue growth trends within the Company’s business as it reflects the Company’s current estimate of revenue to be generated under the existing client contracts in the forward 12–month period.
The overall financial condition of the Company remains strong, with cash and investments of approximately $77.9 million and no debt as of April 30, 2016. During the fourth quarter and fiscal 2016, the Company paid approximately $2.9 million and $11.5 million in dividends, respectively. On May 12, 2016, we announced that its Board of Directors declared a quarterly dividend of $0.11 per share, which represents a 10 percent increase over the previous quarterly dividend rate of $0.10 per share. The dividend is payable to the Class A and Class B Common Shareholders of record at the close of business on August 5, 2016. The dividend will be paid on or about August 19, 2016.
www.amsoftware.com, call (800) 726–2946 or email: ask@amsoftware.com.
Forward–Looking Statements
This press release contains forward–looking statements that are subject to substantial risks and uncertainties. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made herein. These factors include, but are not limited to, changes in general economic conditions, technology and the market for the Company’s products and services, including economic conditions within the e–commerce markets; the timely availability and market acceptance of these products and services; the Company’s ability to satisfy in a timely manner all SEC required filings and the requirements of Section 404 of the Sarbanes–Oxley Act of 2002 and the rules and regulations adopted under that Section; the challenges and risks associated with integration of acquired product lines and companies; the effect of competitive products and pricing; the uncertainty of the viability and effectiveness of strategic alliances; and the irregular pattern of the Company’s revenues. For further information about risks the Company could experience as well as other information, please refer to the Company’s current Form 10–K and other reports and documents subsequently filed with the Securities and Exchange Commission. For more information, contact: Vincent C. Klinges, Chief Financial Officer, American Software, Inc., (404) 264–5477 or fax: (404) 237–8868.
Logility is a registered trademark and Logility Voyager Solutions is a trademark of Logility, Inc.; Demand Solutions is a registered trademark of Demand Management, Inc.; and NGC and New Generation Computing are registered trademarks of New Generation Computing, Inc. Other products mentioned in this document are registered, trademarked or service marked by their respective owners.
