Industry Summary Articles

American Software, Inc. reported preliminary financial results for the fourth quarter and for fiscal year 2019. Key fourth quarter financial highlights:

·         Subscription fees were $3.8million for the quarter ended April 30, 2019, a 47% increase compared to $2.6million for the same period last year, while software license revenues were $1.7million, a 42% decrease compared to $2.9 million for the same period last year, reflecting our continued transition to the SaaS engagement model.

·         Cloud Services Annual Contract Value (ACV) increased approximately 36% to $17.3 million as of the quarter ended April 30, 2019 compared to $12.7 million as of the same period of the prior year.

·         Total revenues for the quarter ended April 30, 2019 were $26.3 million, a decrease of 11% over the comparable period last year.

·         Recurring revenue streams for Maintenance and Subscription Cloud Services were 56% of total revenues in the quarter ended April 30, 2019 compared to 46% in the same period of the prior year.

·         Maintenance revenues for the quarter ended April 30, 2019 decreased 1% to$10.8 million compared to $10.9 million for the same period last year.

·         Professional services and other revenues for the quarter ended April 30, 2019 were $9.9 million compared to $12.9 million for the same period last year.

·         Operating earnings for the quarter ended April 30, 2019 decreased 59% to $1.0 million compared to $2.5 million for the same period last year.

·         GAAP net earnings for the quarter ended April 30, 2019 increased 48% to $1.9 million or $0.06 per fully diluted share compared to $1.3 million or $0.04 per fully diluted share for the same period last year.

·         Adjusted net earnings for the quarter ended April 30, 2019, which exclude non-cash stock-based compensation expense and amortization of acquisition-related intangibles, were $2.7 million or $0.09 per fully diluted share compared to $2.0 million or $0.06 per fully diluted share for the same period last year.

·         EBITDA decreased by 27% to $3.1 million for the quarter ended April 30, 2019 compared to $4.2 million for the same period last year.

·         Adjusted EBITDA decreased by 23% to $3.5 million for the quarter ended April 30, 2019 compared to $4.5 million for the quarter ended April 30, 2018. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest (expense)/income & other, net, income tax expense and non-cash stock-based compensation expense.

Key fiscal year 2019 financial highlights:

·         Subscription fees were $14.0 million for the twelvemonths ended April 30, 2019, a 58% increase compared to $8.9 million for the same period last year, while software license revenues were $7.1 million, a 54% decrease compared to $15.3 million for the same period last year, reflecting our continued transition to the SaaS engagement model.

·         Total revenues for the twelve months ended April 30, 2019 decreased by 4% to $108.7 million compared to $112.7 million for the same period last year.

·         Recurring revenue streams of Maintenance and Subscription Cloud Services were 55% of total revenues for the twelve month period ended April 30, 2019 compared to 47% in the same period of the prior year.

·         Maintenance revenues for the twelve months ended April 30, 2019 were $45.4 million, a 4% increase compared to $43.8 million for the same period last year.

·         Professional services and other revenues for the twelve months ended April 30, 2019 decreased 6% to $42.2 million compared to $44.7 million for the same period last year.

·         For the twelve months ended April 30, 2019, the Company reported operating earnings of approximately $5.3 million compared to $13.5 million for the same period last year, a 61% decrease.

·         EBITDA decreased by 34% to $13.0 million for the twelve months ended April 30, 2019 compared to $19.6 million for the same period last year.

·         Adjusted EBITDA decreased 30% to $14.8 million for the twelve months ended April 30, 2019 compared to $21.0 million for the twelve months ended April 30, 2018. 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.

The full release is available at https://www.amsoftware.com/wp-content/uploads/2019/06/ASI-Q4-FY19-press-release-FINAL-with-PL.pdf

To view the original press release, please click here.

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