American software reports third quarter of fiscal year 2023 results
Atlanta--(business wire)--american software, inc. (nasdaq: amswa) today reported preliminary financial results for the third quarter of fiscal year 2023. key third quarter financial highlights: subscription fees were $13.0 million for the quarter ended january 31, 2023, a 20% increase compared to $10.9 million for the same period last year, and software license revenues were $1.0 million for both the current and prior period last year. total revenues for the quarter ended january 31, 2023 decreased 4% to $31.0 million, compared to $32.4 million for the same period of the prior year, principally due to a decline in services revenue. recurring revenue streams for maintenance and cloud subscriptions were $21.7 million or 70% of total revenues in the quarter ended january 31, 2023 compared to $20.0 million or 62% in the same period of the prior year. maintenance revenues for the quarter ended january 31, 2023 decreased 5% to $8.6 million compared to $9.1 million for the same period last year reflecting the shift to cloud revenue as a client preference. professional services and other revenues for the quarter ended january 31, 2023 decreased 27% to $8.3 million compared to $11.4 million for the same period last year. the decline was primarily driven by a 39% decrease in non-core project revenue in our it consulting business unit. for the supply chain business, professional services revenues for the quarter ended january 31, 2023 decreased by 15% to $4.6 million when compared to $5.4 million in the same period prior year due to an unusually slow holiday period. operating earnings for the quarter ended january 31, 2023 were $3.0 million compared to $3.2 million for the same period last year. gaap net earnings for the quarter ended january 31, 2023 increased 14% to $3.3 million or $0.10 per fully diluted share compared to $2.9 million or $0.09 per fully diluted share for the same period last year. adjusted net earnings for the quarter ended january 31, 2023, which excludes non-cash stock-based compensation expense and amortization of acquisition-related intangibles, increased 18% to $4.5 million or $0.13 per fully diluted share compared to $3.8 million or $0.11 per fully diluted share for the same period last year. ebitda decreased by 12% to $3.7 million for the quarter ended january 31, 2023 compared to $4.2 million for the same period last year. adjusted ebitda was $5.0 million for the quarter ended january 31, 2023 compared to $5.3 million for the same period last year. adjusted ebitda represents gaap net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense and non-cash stock-based compensation expense. key fiscal 2023 year to date financial highlights: subscription fees were $37.4 million for the nine months ended january 31, 2023, a 21% increase compared to $31.0 million for the same period last year, while software license revenues were $2.0 million compared to $2.3 million for the same period last year. total revenues for the nine months ended january 31, 2023 were $93.7 million compared to $92.9 million for the same period last year. recurring revenue streams for maintenance and cloud services were $63.8 million and $58.9 million or 68% and 63% of total revenues for the nine-month periods ended january 31, 2023 and 2021, respectively. maintenance revenues for the nine months ended january 31, 2023 were $26.4 million, a 5% decrease compared to $27.9 million for the same period last year. professional services and other revenues for the nine months ended january 31, 2023 decreased 12% to $27.9 million compared to $31.8 million for the same period last year. for the nine months ended january 31, 2023, the company reported operating earnings of approximately $8.3 million compared to $7.7 million for the same period last year, an 8% increase. gaap net earnings were approximately $7.6 million or $0.22 per fully diluted share for the nine months ended january 31, 2023, an 18% decrease compared to $9.2 million or $0.27 per fully diluted share for the same period last year. adjusted net earnings for the nine months ended january 31, 2023, which exclude stock-based compensation expense and amortization of acquisition-related intangibles, decreased 4% to $11.1 million or $0.33 per fully diluted share, compared to $11.6 million or $0.34 per fully diluted share for the same period last year. ebitda was $10.7 million for the nine months ended january 31, 2023 compared to $10.9 million for the same period last year. adjusted ebitda increased 6% to $14.6 million for the nine months ended january 31, 2023 compared to $13.8 million for the nine months ended january 31, 2022. adjusted ebitda represents gaap net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense/(benefit) and non-cash stock-based compensation. key third quarter of fiscal year 2023 highlights: clients & channels notable new and existing customers placing orders with the company in the third quarter include: holly frontier corporation, indorama ventures oxides, llc., johnstone supply, inc., mom enterprises, llc, mustad netherlands b.v., and sandvik mining & construction tools ab. during the quarter, saas subscription and software license agreements were signed with customers located in the following six countries: australia, mexico, the netherlands, sweden, the united kingdom, and the united states. we signed new channel partnership agreements with bisonaire (germany) and anamind (india) to bolster logility’s presence in our regions. company & technology announced in november, sustainability-driven self-tanning brand bondi sands ramped up its recent implementation of logility® digital supply chain platform. in december, logility was named a 2022 top software and technology provider by food logistics for its work with oregon dairy manufacturer tillamook. in january, logility was named in the top 20 on the 2023 ris software leaderboard based on factors including return on investment, innovation, total cost of operation, service, and customer satisfaction. in january, logility bolstered its leadership team with the appointment of paul greifenberger as evp of america sales and lisa henriott as svp of product marketing. the overall financial condition of the company remains strong, with cash and investments of approximately $105 million. during the third quarter of fiscal year 2023, the company paid shareholder dividends of approximately $3.7 million. “we were pleased to see our subscription revenue growth return to 20% and recurring revenues reach 70% of our total revenues for the quarter,” said allan dow, ceo and president of american software. “considering the impact of economic uncertainty on our non-core services revenue and as we are continuing to see delays in new project starts, we are slightly lowering our guidance for total and recurring revenue. however, we are maintaining our adjusted ebitda expectations to reflect the strong performance to date and prudent management of expenses.” fiscal year 2023 financial outlook total revenues of $123.5 million to $125.5 million, including total recurring revenues of $84.5 million to $85.5 million. adjusted ebitda of $18.0 million to $20.0 million. about american software, inc. atlanta-based american software, inc. (nasdaq: amswa), through its operating entity logility delivers an innovative technical platform that enables enterprises to accelerate their digital supply chain transformation from product concept to client availability via the logility® digital supply chain platform, a single platform spanning product, demand, inventory, supply, sourcing, deploy, corporate responsibility (esg) and network optimization aligned with integrated business planning. serving clients such as big lots, carter’s, destination xl, hostess, husqvarna group, jockey international, johnson controls, parker hannifin, red wing shoe company, spanx, dole fresh vegetables, inc., and fender musical instrument co, our solutions are marketed and sold through a direct sales team as well as an indirect global value-added reseller (“var”) distribution network. fueled by supply chain master data, allowing for the automation of critical business processes through the application of artificial intelligence and machine learning algorithms to a variety of internal and external data streams, the comprehensive logility portfolio delivered in the cloud includes advanced analytics , supply chain visibility, demand, inventory and replenishment planning, sales and operations planning (s&op), integrated business planning (ibp), supply and inventory optimization, manufacturing planning and scheduling, network design and optimization (ndo), retail merchandise and assortment planning and allocation, product lifecycle management (plm), sourcing management, vendor quality and compliance, and product traceability. for more information about logility, please visit www.logility.com. logility is a wholly-owned subsidiary and operating entity for american software, inc. (nasdaq: amswa). you can learn more about american software at www.amsoftware.com, or by calling (404) 364-7615 or emailing kliu@amsoftware.com. operating and non-gaap financial measures the company includes non-gaap financial measures (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 the operating or non-gaap financial information used by other companies. the company believes that this presentation of 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. ebitda represents gaap net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, and income tax expense. adjusted ebitda represents gaap net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense/(benefit) and non-cash stock-based compensation expense. 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 or performance to differ materially from what is anticipated by statements made herein. these factors include, but are not limited to, continuing u.s. and global economic uncertainty and the timing and degree of business recovery; the irregular pattern of the company’s revenues; dependence on particular market segments or customers; competitive pressures; market acceptance of the company’s products and services; technological complexity; undetected software errors; potential product liability or warranty claims; risks associated with new product development; the challenges and risks associated with integration of acquired product lines, companies and services; uncertainty about the viability and effectiveness of strategic alliances; the company’s ability to satisfy in a timely manner all securities and exchange commission (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; as well as a number of other risk factors that could affect the company’s future performance. 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 sec. for more information, contact: kevin liu, american software, inc., (626) 657-0013 or email kliu@amsoftware.com. logility® is a registered trademark of logility, inc. other products mentioned in this document are registered, trademarked or service marked by their respective owners. 2023 2022 pct chg. 2023 2022 pct chg. $ 13,003 $ 10,856 20 % $ 37,391 $ 31,005 21 % 1,017 992 3 % 2,025 2,289 (12 %) 8,342 11,443 (27 %) 27,945 31,751 (12 %) 8,649 9,131 (5 %) 26,384 27,859 (5 %) 31,011 32,422 (4 %) 93,745 92,904 1 % 4,005 3,431 17 % 11,682 10,059 16 % 358 240 49 % 541 597 (9 %) 6,303 8,012 (21 %) 20,454 22,499 (9 %) 1,607 1,789 (10 %) 4,757 5,509 (14 %) 12,273 13,472 (9 %) 37,434 38,664 (3 %) 18,738 18,950 (1 %) 56,311 54,240 4 % 4,402 4,602 (4 %) 13,220 13,304 (1 %) 5,325 5,222 2 % 16,934 17,234 (2 %) 6,030 5,834 3 % 17,796 15,844 12 % 25 53 (53 %) 81 159 (49 %) 15,782 15,711 0 % 48,031 46,541 3 % 2,956 3,239 (9 %) 8,280 7,699 8 % 1,334 92 nm 1,308 1,459 (10 %) 4,290 3,331 29 % 9,588 9,158 5 % 950 391 143 % 2,034 (43 ) nm $ 3,340 $ 2,940 14 % $ 7,554 $ 9,201 (18 %) $ 0.10 $ 0.09 11 % $ 0.22 $ 0.28 (21 %) $ 0.10 $ 0.09 11 % $ 0.22 $ 0.27 (19 %) 33,759 33,490 33,711 33,293 33,965 34,578 34,006 34,325 2023 2022 pct chg. 2023 2022 pct chg. $ 2,956 $ 3,239 (9 %) $ 8,280 $ 7,699 8 % 233 53 340 % 601 159 278 % 1,294 1,093 18 % 3,943 2,910 35 % 4,483 4,385 2 % 12,824 10,768 19 % 14 % 14 % 14 % 12 % 2023 2022 pct chg. 2023 2022 pct chg. $ 3,340 $ 2,940 14 % $ 7,554 $ 9,201 (18 %) 950 391 143 % 2,034 (43 ) nm (1,334 ) (92 ) nm (1,308 ) (1,459 ) (10 %) 495 810 (39 %) 1,582 2,626 (40 %) 292 191 53 % 805 544 48 % 3,743 4,240 (12 %) 10,667 10,869 (2 %) 1,294 1,093 18 % 3,943 2,910 35 % $ 5,037 $ 5,333 (6 %) $ 14,610 $ 13,779 6 % 12 % 13 % 11 % 12 % 16 % 16 % 16 % 15 % 2023 2022 pct chg. 2023 2022 pct chg. $ 3,340 $ 2,940 14 % $ 7,554 $ 9,201 (18 %) 182 41 344 % 470 126 273 % 1,012 848 19 % 3,094 2,304 34 % $ 4,534 $ 3,829 18 % $ 11,118 $ 11,631 (4 %) $ 0.13 $ 0.11 18 % $ 0.33 $ 0.34 (3 %) 2023 2022 pct chg. 2023 2022 pct chg. $ 0.10 $ 0.09 11 % $ 0.22 $ 0.27 (19 %) - - - $ 0.02 - - $ 0.03 0.02 50 % $ 0.09 0.07 29 % $ 0.13 $ 0.11 18 % 0.33 $ 0.34 (3 %) 2023 2022 pct chg. 2023 2022 pct chg. $ 208 $ - - $ 521 $ - - 25 53 (53 %) 81 159 (49 %) $ 233 $ 53 340 % $ 602 $ 159 279 % $ 70 $ 59 19 % $ 178 $ 188 (5 %) 145 106 37 % 437 273 60 % 152 145 5 % 568 462 23 % 927 783 18 % 2,760 1,987 39 % $ 1,294 $ 1,093 18 % $ 3,943 $ 2,910 35 % (1) - basic per share amounts are the same for class a and class b shares. diluted per share amounts for class a shares are shown above. diluted per share for class b shares under the two-class method are $0.10 and $0.22 for the three and nine months ended january 31, 2023, respectively. diluted per share for class b shares under the two-class method are $0.09 and $0.28 for the three and nine months ended january 31, 2022, respectively. (2) - tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended january 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended january 31, 2022, respectively. 2023 2022 $ 80,606 $ 110,690 23,847 16,826 32,183 20,619 2,352 2,989 34,535 23,608 5,575 5,067 144,563 156,191 484 - 6,502 3,654 605 1,586 29,558 25,888 2,376 147 1,544 2,050 544 935 3,888 2,384 $ 190,064 $ 192,835 $ 4,007 $ 2,506 3,027 6,918 3,715 3,700 440 541 2,805 1,871 40,706 41,953 54,700 57,489 144 461 - 1,772 224 137 368 2,370 55,068 59,859 134,996 132,976 $ 190,064 $ 192,835 2023 2022 $ (10,466 ) $ 14,050 (3,655 ) (801 ) (6,500 ) - (10,155 ) (801 ) (11,117 ) (10,957 ) 1,654 7,405 (9,463 ) (3,552 ) (30,084 ) 9,697 110,690 88,658 $ 80,606 $ 98,355
