Manhattan Associates, Inc. (NASDAQ:MANH) Files An 8-K Results of Operations and Financial ConditionItem 2.02Results of Operations and Financial Condition.
On July 20, 2017, Manhattan Associates, Inc. (the “Company”) issued a press release providing its financial results for the three and six months ended June30, 2017. A copy of this press release is attached as Exhibit 99.1. to General Instruction B.2 of Form 8-K, this exhibit is “furnished” and not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.
Non-GAAP Financial Measures in the Press Release
The press release includes, as additional information regarding our operating results, our adjusted operating income, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share (collectively, “adjusted results”), which exclude the impact of equity-based compensation, acquisition-related costs and a restructuring charge, and the related income tax effects of these items. We have developed our internal reporting, compensation and planning systems using these additional financial measures.
These various measures are not in accordance with, or alternatives for, financial measures calculated in accordance with generally accepted accounting principles in the United States (“GAAP”) and may be different from similarly titled non-GAAP financial measures used by other companies.Non-GAAP financial measures should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP.
Non-GAAP measures used in the press release exclude the impact of the items described above for the following reasons:
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Equity-based compensation expense typically does not require cash settlement by the Company. We do not include this expense and the related income tax effects when assessing our operating performance, and believe our peers also typically present non-GAAP results that exclude equity-based compensation expense. |
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From time to time, we incur acquisition-related costs consisting primarily of (i) accounting and legal expenses, whether or not we ultimately consummate a proposed acquisition, (ii) certain unusual costs, such as employee retention benefits, resulting from pre-acquisition arrangements, and (iii) amortization of acquisition-related intangible assets.These costs are difficult to predict and, if and when incurred, generally are not expenses associated with our core operations.We exclude these costs and the related income tax effects from our internal assessments of our operating performance, and believe our peers also typically present non-GAAP results that exclude similar acquisition-related costs. |
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We do not believe that the restructuring charge related to a reduction in our workforce recorded in the second quarter of 2017 is a common cost that results from normal operating activities; rather, we believe that it relates to the headwinds in the retail sector and a realignment of our capacity with demand forecasts. We have excluded the charge from our internal assessment of our operating performance and non-GAAP results. |
We believe reporting adjusted results facilitates investors’ understanding of our historical operating trends, because it provides supplemental measurement information in evaluating the operating results of our business. We also believe that adjusted results provide a basis for comparisons to other companies in the industry and enable investors to evaluate our operating performance in a manner
consistent with our internal basis of measurement.Management refers to adjusted results in making operating decisions because we believe they provide meaningful supplemental information regarding our operational performance and our ability to invest in research and development and fund acquisitions and capital expenditures. In addition, adjusted results facilitate management’s internal comparisons to our historical operating results and comparisons to competitors’ operating results.
Further, we rely on adjusted results as primary measures to review and assess the operating performance of our Company and our management team in connection with our executive compensation and bonus plans. Since most of our employees are not directly involved with decisions surrounding acquisitions, restructurings and other items that are not central to our core operations, we do not believe it is appropriate or fair to have their incentive compensation affected by these items.
Item 9.01Financial Statements and Exhibits.
(d)Exhibits.
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Exhibit |
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Number |
Description |
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99.1 |
Press Release, dated July 20, 2017 |
MANHATTAN ASSOCIATES INC ExhibitEX-99.1 2 manh-ex991_6.htm EX-99.1 manh-ex991_6.htm Exhibit 99.1 Contact: Dennis Story Rick Fernandez Chief Financial Officer Senior Manager,…To view the full exhibit click here
About Manhattan Associates, Inc. (NASDAQ:MANH)
Manhattan Associates, Inc. (Manhattan) is a developer and provider of supply chain commerce solutions. The Company has three geographical segments: the Americas, Europe, Middle East and Africa (EMEA), and the Asia Pacific (APAC). It is engaged in developing, selling, deploying, servicing and maintaining software solutions designed to manage supply chains, inventory and omni-channel operations for retailers, wholesalers, manufacturers, logistics providers and other organizations. Its solutions consist of software, services, and hardware, which coordinate people, workflows, assets, events, and tasks across the functions. Its solutions enable coordinating the actions, data exchange, and communication of participants in supply chain ecosystems, such as manufacturers, suppliers, distributors, transportation providers, channels (such as catalogers, store retailers and Web outlets), and consumers. The Company offers its solutions in three areas: supply chain, Omni-channel and inventory.