American Software Reports First Quarter of Fiscal Year 2025 Results
Subscription Fee Growth of 7% and Adjusted EBITDA Margin of 18% in Q1
“Our Q1 performance was consistent with our internal expectations and reflected disciplined cost management in a skittish selling environment,” said
Fiscal Year 2025 Financial Outlook from Continuing Operations(a):
-
Total revenues of
$104.0 million to$108.0 million , including total recurring revenues of$87.0 million to$89.0 million . -
Adjusted EBITDA of
$15.0 million to$16.4 million .
Key First Quarter Financial Highlights from Continuing Operations:
-
Subscription fees were
$14.8 million for the quarter endedJuly 31, 2024 , a 7% increase compared to$13.8 million for the same period last year. -
Total revenues for the quarter ended
July 31, 2024 increased 1% to$26.2 million , compared to$25.9 million for the same period of the prior year, principally due to an increase in subscription and services revenue. -
Recurring revenue streams for Maintenance and Subscriptions were
$22.1 million or 84% of total revenues in the quarter endedJuly 31, 2024 compared to$21.9 million or 85% of total revenues in the same period of the prior year. -
Maintenance revenues for the quarter ended
July 31, 2024 decreased 11% to$7.3 million compared to$8.2 million for the same period last year partially due to the divestiture of the Transportation group in November, 2023 and client conversions to the cloud. -
Professional services and other revenues for the quarter ended
July 31, 2024 increased 5% to$3.9 million for the quarter endedJuly 31, 2024 compared to$3.7 million for the same period last year. The increase was primarily driven by higher seasonal project work. -
Software license revenues were
$0.2 million for the quarter endedJuly 31, 2024 compared to$0.3 million in the same period last year, continuing the focus on cloud services sales. -
Operating earnings for the quarter ended
July 31, 2024 increased 32% to$1.8 million compared to$1.4 million for the same period last year. -
GAAP net earnings from continuing operations for the quarter ended
July 31, 2024 were$2.1 million or$0.06 per fully diluted share compared to$2.6 million or$0.08 per fully diluted share for the same period last year. -
Adjusted net earnings from continuing operations for the quarter ended
July 31, 2024 , which excludes non-cash stock-based compensation expense and amortization of acquisition-related intangibles, were$4.1 million or$0.12 per fully diluted share compared to$4.0 million or$0.12 per fully diluted share for the same period last year. -
EBITDA from continuing operations was
$3.0 million for the quarter endedJuly 31, 2024 compared to$2.1 million for the same period last year. -
Adjusted EBITDA from continuing operations increased 26% to
$4.6 million for the quarter endedJuly 31, 2024 compared to$3.7 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.
The overall financial condition of the Company remains strong, with cash and investments of approximately
Key First Quarter of Fiscal Year 2024 highlights:
Clients & Channels
-
Notable new and existing customers placing orders with the Company in the first quarter include:
Bob’sDiscount Furniture, Inc. ,Carl Zeiss AG ,Kingfisher Information Technology Services (UK) Ltd. ,NFI Interactive Logistics, LLC ,Roland Foods LLC andWalter Surface Technologies, Inc.
-
During the quarter, SaaS subscription and software license agreements were signed with customers located in the following countries: Canada,
Germany ,Mexico andthe United States .
Company & Technology
-
In May,
Logility , the operating subsidiary ofAmerican Software, Inc. , launched additional cutting-edge generative AI capabilities continuing to expand its generative AI (GenAI) capabilities across the Logility® Digital Supply Chain Platform, to empower organizations with the tools they need to unlock their data and make their supply chains more efficient, resilient, and competitive. In collaboration withDeloitte Canada ,Logility is addressing specific supply chain planning challenges in demand, supply, inventory, and order fulfillment to accelerate the expansion of these capabilities. Logility’s AI-first approach to supply chain planning with GenAI is tailor-made to help meet the demands and needs of the industry, empowering leaders to use technology designed to make timely, data-driven decisions in a highly competitive marketplace.
-
Reynolds Consumer Products, a
Logility client, delivered a popular session at the Gartner Supply Chain Symposium inOrlando entitled “Beyond S&OP – The Journey to Integrated S&OE at Reynolds Consumer Products.” With Logility’s integrated solutions, Reynolds achieved remarkable outcomes such as a 20% improvement in forecast accuracy and drastically reduced inventory and freight costs.
-
Gartner recognized
Logility as a Leader in the 2024 Gartner Magic Quadrant for Supply Chain Planning Solutions during Gartner’s premier supply chain management conference. This recognition was based on the company’s vision and execution capabilities highlighting the AI-driven approach to boosting agility and precision in supply chain management.
-
Worldly, a sustainability insights and data platform, and
Logility announced their collaboration in June, to support compliant digital supply chains.Logility leverages Worldly’s comprehensive source of Environmental, Social, and Governance (ESG) data used by over 40,000 brands, retailers, and manufacturers to inform its innovative vendor management, traceability, and corporate responsibility applications. Driven by consumer demand, regulation, and corporate ESG initiatives, organizations increasingly require transparency across their global supply chains. Joint clients ofLogility and Worldly manage over 3,500 tier one suppliers and over 10,000 tier two, tier three and tier four suppliers around the globe.
-
Logility was featured in a TechTalk entitled "Revolutionizing Supply Chains: Inside Logility’s AI Success Story,” also in June. In this episode,Scott Tillman , Senior Vice President of Innovation atLogility , explained the company’s groundbreaking approach to integrating artificial intelligence into supply chain operations. He further detailed howLogility's digital supply chain platform leverages AI to recognize patterns and improve forecast accuracy, helping clients reduce inventory by 20% and unlock significant working capital.
-
Logility announced LogiCon24. OnSeptember 24, 2024 this exclusive virtual event will bring together industry leaders, futurists, and peers to discuss the future of supply chains. It’s a great opportunity to gain insights, network, and stay ahead of the curve. Sign up at https://hubs.la/Q02KRJTC0
(a) |
During the second quarter of fiscal year 2024, we divested our non-core information technology staffing firm, The Proven Method and its results are included in discontinuing operations. |
About
With over 550 clients in 80 countries,
Operating and Non-GAAP Financial Measures
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
Logility® is a registered trademark of
|
|||||||||||
Consolidated Statements of Operations Information | |||||||||||
(In thousands, except per share data, unaudited) | |||||||||||
First Quarter Ended | |||||||||||
|
|||||||||||
|
2024 |
|
|
2023 |
|
Pct Chg. | |||||
Revenues from continuing operations: | |||||||||||
Subscription fees |
$ |
14,791 |
|
$ |
13,764 |
|
7 |
% |
|||
License fees |
|
241 |
|
|
289 |
|
(17 |
%) |
|||
Professional services & other |
|
3,870 |
|
|
3,686 |
|
5 |
% |
|||
Maintenance |
|
7,290 |
|
|
8,163 |
|
(11 |
%) |
|||
Total Revenues |
|
26,192 |
|
|
25,902 |
|
1 |
% |
|||
Cost of Revenues from continuing operations: | |||||||||||
Subscription services |
|
4,694 |
|
|
4,217 |
|
11 |
% |
|||
License fees |
|
44 |
|
|
72 |
|
(39 |
%) |
|||
Professional services & other |
|
2,696 |
|
|
3,060 |
|
(12 |
%) |
|||
Maintenance |
|
1,290 |
|
|
1,695 |
|
(24 |
%) |
|||
Total Cost of Revenues |
|
8,724 |
|
|
9,044 |
|
(4 |
%) |
|||
Gross Margin |
|
17,468 |
|
|
16,858 |
|
4 |
% |
|||
Operating expenses from continuing operations: | |||||||||||
Research and development |
|
4,364 |
|
|
4,249 |
|
3 |
% |
|||
Sales and marketing |
|
5,636 |
|
|
5,731 |
|
(2 |
%) |
|||
General and administrative |
|
5,433 |
|
|
5,461 |
|
(1 |
%) |
|||
Amortization of acquisition-related intangibles |
|
191 |
|
|
25 |
|
664 |
% |
|||
Total Operating Expenses |
|
15,624 |
|
|
15,466 |
|
1 |
% |
|||
Operating Earnings from continuing operations |
|
1,844 |
|
|
1,392 |
|
32 |
% |
|||
Interest Income & Other, Net |
|
1,135 |
|
|
1,887 |
|
(40 |
%) |
|||
Earnings from continuing operations Before Income Taxes |
|
2,979 |
|
|
3,279 |
|
(9 |
%) |
|||
Income Tax Expense |
|
925 |
|
|
664 |
|
39 |
% |
|||
Net Earnings from continuing operations |
$ |
2,054 |
|
$ |
2,615 |
|
(21 |
%) |
|||
(Loss)/Earnings from discontinuing operations, Net of Income Taxes (1) |
$ |
- |
|
$ |
134 |
|
- |
|
|||
Net Earnings |
$ |
2,054 |
|
$ |
2,749 |
|
(25 |
%) |
|||
Earnings per common share from continuing operations: (2) | |||||||||||
Basic |
$ |
0.06 |
|
$ |
0.08 |
|
(25 |
%) |
|||
Diluted |
$ |
0.06 |
|
$ |
0.08 |
|
(25 |
%) |
|||
Earnings per common share from discontinuing operations: (2) | |||||||||||
Basic |
$ |
- |
|
$ |
- |
|
- |
|
|||
Diluted |
$ |
- |
|
$ |
- |
|
- |
|
|||
Earnings per common share: (2) | |||||||||||
Basic |
$ |
0.06 |
|
$ |
0.08 |
|
(25 |
%) |
|||
Diluted |
$ |
0.06 |
|
$ |
0.08 |
|
(25 |
%) |
|||
Weighted average number of common shares outstanding: | |||||||||||
Basic |
|
33,284 |
|
|
34,155 |
|
|||||
Diluted |
|
33,298 |
|
|
34,160 |
|
|||||
nm- not meaningful | |||||||||||
|
|||||||||||
NON-GAAP MEASURES OF PERFORMANCE | |||||||||||
(In thousands, except per share data, unaudited) | |||||||||||
First Quarter Ended | |||||||||||
|
|||||||||||
|
2024 |
|
|
2023 |
|
Pct Chg. | |||||
NON-GAAP Operating Earnings: | |||||||||||
Operating Earnings from continuing operations (GAAP Basis) |
$ |
1,844 |
|
$ |
1,392 |
|
32 |
% |
|||
Amortization of acquisition-related intangibles |
|
849 |
|
|
233 |
|
264 |
% |
|||
Stock-based compensation |
|
1,586 |
|
|
1,546 |
|
3 |
% |
|||
NON-GAAP Operating Earnings from continuing operations: |
|
4,279 |
|
|
3,171 |
|
35 |
% |
|||
Non-GAAP Operating Earnings from continuing operations, as a % of revenue |
|
16 |
% |
|
12 |
% |
|||||
First Quarter Ended | |||||||||||
|
|||||||||||
|
2024 |
|
|
2023 |
|
Pct Chg. | |||||
NON-GAAP EBITDA: | |||||||||||
Net Earnings from continuing operations (GAAP Basis) |
$ |
2,054 |
|
$ |
2,615 |
|
(21 |
%) |
|||
Income Tax Expense |
|
925 |
|
|
664 |
|
39 |
% |
|||
Interest Income & Other, Net |
|
(1,135 |
) |
|
(1,887 |
) |
(40 |
%) |
|||
Amortization of intangibles |
|
860 |
|
|
371 |
|
132 |
% |
|||
Depreciation |
|
328 |
|
|
360 |
|
(9 |
%) |
|||
EBITDA from continuing operations (earnings before interest, taxes, depreciation and amortization) |
|
3,032 |
|
|
2,123 |
|
43 |
% |
|||
Stock-based compensation |
|
1,586 |
|
|
1,546 |
|
3 |
% |
|||
Adjusted EBITDA from continuing operations |
$ |
4,618 |
|
$ |
3,669 |
|
26 |
% |
|||
EBITDA from continuing operations, as a percentage of revenues |
|
12 |
% |
|
8 |
% |
|||||
Adjusted EBITDA, from continuing operations, as a percentage of revenues |
|
18 |
% |
|
14 |
% |
|||||
First Quarter Ended | |||||||||||
|
|||||||||||
|
2024 |
|
|
2023 |
|
Pct Chg. | |||||
NON-GAAP Earnings Per Share | |||||||||||
Net Earnings from continuing operations (GAAP Basis) |
$ |
2,054 |
|
$ |
2,615 |
|
(21 |
%) |
|||
Amortization of acquisition-related intangibles (3) |
|
704 |
|
|
186 |
|
278 |
% |
|||
Stock-based compensation (3) |
|
1,316 |
|
|
1,232 |
|
7 |
% |
|||
Adjusted Net Earnings from continuing operations |
$ |
4,074 |
|
$ |
4,033 |
|
1 |
% |
|||
Adjusted non-GAAP diluted earnings per share from continuing operations |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
0 |
% |
|
First Quarter Ended | |||||||||||
|
|||||||||||
|
2024 |
|
|
2023 |
|
Pct Chg. | |||||
NON-GAAP Earnings Per Share | |||||||||||
Net Earnings from continuing operations (GAAP Basis) |
$ |
0.06 |
|
$ |
0.08 |
|
(25 |
%) |
|||
Amortization of acquisition-related intangibles (3) |
|
0.02 |
|
|
0.01 |
|
100 |
% |
|||
Stock-based compensation (3) |
|
0.04 |
|
|
0.04 |
|
0 |
% |
|||
Adjusted Net Earnings from continuing operations |
$ |
0.12 |
|
$ |
0.13 |
|
(8 |
%) |
|||
First Quarter Ended | |||||||||||
|
|||||||||||
|
2024 |
|
|
2023 |
|
Pct Chg. | |||||
Amortization of acquisition-related intangibles | |||||||||||
Cost of Subscription Services |
$ |
658 |
|
$ |
208 |
|
216 |
% |
|||
Operating expenses |
|
191 |
|
|
25 |
|
664 |
% |
|||
Total amortization of acquisition-related intangibles |
$ |
849 |
|
$ |
233 |
|
264 |
% |
|||
Stock-based compensation | |||||||||||
Cost of revenues |
$ |
89 |
|
$ |
78 |
|
14 |
% |
|||
Research and development |
|
182 |
|
|
173 |
|
5 |
% |
|||
Sales and marketing |
|
316 |
|
|
347 |
|
(9 |
%) |
|||
General and administrative |
|
999 |
|
|
948 |
|
5 |
% |
|||
Total stock-based compensation |
$ |
1,586 |
|
$ |
1,546 |
|
3 |
% |
|||
(1) For more information, please see note F related to discontinuing operations in the Company’s unaudited condensed consolidated financial statements filed on |
|||||||||||
(2) - 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. Continuing operations diluted per share for Class B shares under the two-class method are |
|||||||||||
(3) -Continuing and discontinuing operations are tax affected using the effective tax rate excluding discrete items in the following table. | |||||||||||
Three Months Ended 2024 |
Three Months Ended 2023 |
||||||||||
Continuing Operations |
|
17.0 |
% |
|
20.2 |
% |
|||||
Discontinuing Operations |
nm |
|
23.9 |
% |
|||||||
Consolidated Operations |
|
17.0 |
% |
|
20.4 |
% |
|||||
nm- not meaningful |
|
|||||||||
Consolidated Balance Sheet Information | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
|
|
||||||||
|
2024 |
|
|
2024 |
|
||||
Cash and Cash Equivalents |
$ |
53,917 |
|
$ |
59,512 |
|
|||
Short-term Investments |
|
38,038 |
|
|
24,261 |
|
|||
Accounts Receivable: | |||||||||
Billed |
|
16,852 |
|
|
28,043 |
|
|||
Unbilled |
|
774 |
|
|
296 |
|
|||
Total Accounts Receivable, net |
|
17,626 |
|
|
28,339 |
|
|||
Prepaid expenses and other current assets |
|
6,004 |
|
|
6,584 |
|
|||
Total Current Assets |
|
115,585 |
|
|
118,696 |
|
|||
PP&E, net |
|
5,362 |
|
|
5,554 |
|
|||
|
|
2 |
|
|
11 |
|
|||
|
|
45,782 |
|
|
45,782 |
|
|||
Other Intangibles, net |
|
9,718 |
|
|
10,567 |
|
|||
Deferred Tax Asset |
|
8,490 |
|
|
7,588 |
|
|||
Other Non-current Assets |
|
4,004 |
|
|
4,246 |
|
|||
Total Assets |
$ |
188,943 |
|
$ |
192,444 |
|
|||
Accounts Payable |
$ |
1,250 |
|
$ |
1,248 |
|
|||
Accrued Compensation and Related costs |
|
2,888 |
|
|
2,805 |
|
|||
Dividend Payable |
|
3,662 |
|
|
3,657 |
|
|||
Other Current Liabilities |
|
6,424 |
|
|
5,012 |
|
|||
Deferred Revenues |
|
42,803 |
|
|
47,621 |
|
|||
Current Liabilities |
|
57,027 |
|
|
60,343 |
|
|||
Other Long-term Liabilities |
|
1,462 |
|
|
1,620 |
|
|||
Total Liabilities |
|
58,489 |
|
|
61,963 |
|
|||
Shareholders' Equity |
|
130,454 |
|
|
130,481 |
|
|||
Total Liabilities & Shareholders' Equity |
$ |
188,943 |
|
$ |
192,444 |
|
|||
|
|||||||||
Condensed Consolidated Cashflow Information | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
|
|||||||||
|
2024 |
|
|
2023 |
|
||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
(1,799 |
) |
$ |
7,026 |
|
|||
Cash provided by operating activities of discontinued operations |
|
- |
|
|
142 |
|
|||
Net cash provided by operating activities |
|
(1,799 |
) |
|
7,168 |
|
|||
Purchases of property and equipment, net of disposals |
|
(136 |
) |
|
(467 |
) |
|||
Net cash used in investing activities |
|
(136 |
) |
|
(467 |
) |
|||
Dividends paid |
|
(3,660 |
) |
|
(3,756 |
) |
|||
Proceeds from exercise of stock options |
|
- |
|
|
246 |
|
|||
Net cash used in financing activities of continuing operations |
|
(3,660 |
) |
|
(3,510 |
) |
|||
|
|
- |
|
|
- |
|
|||
Net cash used in financing activities |
|
(3,660 |
) |
|
(3,510 |
) |
|||
Net change in cash and cash equivalents |
|
(5,595 |
) |
|
3,191 |
|
|||
Cash and cash equivalents at beginning of period |
|
59,512 |
|
|
90,696 |
|
|||
Cash and cash equivalents at end of period |
$ |
53,917 |
|
$ |
93,887 |
|
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240822188583/en/
Financial Information Press Contact:
Chief Financial Officer
(404) 264-5477
Source: