American Software, Inc. reported preliminary financial results for the first quarter of fiscal year 2020.
Key first quarter financial highlights:
- Subscription fees were $4.5 million for the quarter ended July 31, 2019, a 41% increase compared to $3.2 million for the same period last year, while software license revenues were $1.8 million, a 4% increase compared to $1.7 million for the same period last year, reflecting our continued transition to the SaaS engagement model.
- Cloud Services Annual Contract Value (ACV) increased approximately 54% to $20.3 million as of the quarter ended July 31, 2019 compared to $13.2 million as of the same period of the prior year.
- Total revenues for the quarters ended July 31, 2019 and 2018 were $27.4 million for both periods.
- Recurring revenue streams for Maintenance and Subscription Cloud Services were 56% of total revenues in the quarter ended July 31, 2019 compared to 54% in the same period of the prior year.
- Maintenance revenues for the quarter ended July 31, 2019 decreased 4% to $11.0 million compared to $11.5 million for the same period last year.
- Professional services and other revenues for the quarter ended July 31, 2019 were $10.1 million, an 8% decrease when compared to $11.0 million for the same period last year.
- Operating earnings for the quarter ended July 31, 2019 increased 31% to $0.8 million compared to $0.6 million for the same period last year.
- GAAP net earnings for the quarter ended July 31, 2019 decreased 17% to $1.2 million or $0.04 per fully diluted share compared to $1.4 million or $0.04 per fully diluted share for the same period last year.
- Adjusted net earnings for the quarter ended July 31, 2019, which exclude non-cash stock-based compensation expense and amortization of acquisition-related intangibles, were $2.1 million or $0.06 per fully diluted share compared to $2.2 million or $0.07 per fully diluted share for the same period last year.
- EBITDA increased by 26% to $3.0 million for the quarter ended July 31, 2019 compared to $2.4 million for the same period last year.
- Adjusted EBITDA increased by 24% to $3.5 million for the quarter ended July 31, 2019 compared to $2.8 million for the quarter ended July 31, 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 expense.
The overall financial condition of the Company remains strong, with cash and investments of approximately $88.0 million and no debt as of July 31, 2019. During the first quarter of fiscal 2020, the Company paid shareholder dividends of approximately $3.4 million.
“We are pleased with our 41% growth in Subscription Fees and 54% increase in Cloud Services ACV as these key performance indicators continue to underscore our successful transition to a cloud-first company,” said Allan Dow, president of American Software. “Additionally, our recurring revenue streams of Maintenance and Subscription Cloud Services represented 56% of first quarter total revenues, giving our business and shareholders increased visibility with respect to future revenue. In addition to welcoming 16 new customers to our solution platform, we also expanded our footprint with a number of existing customers to help them better address the increasingly competitive labor market with new automation advantages, increased visibility, greater operational efficiency and more confident decision-making.”
“With a turbulent global economy impacted by ever-evolving trade talks, our portfolio of innovative supply chain optimization and retail planning solutions drive tangible benefits for our customer and positions our Company well for a strong fiscal year 2020,” continued Dow. “Artificial intelligence (AI) and machine learning (ML) are powering the ability for our solutions to further automate, accelerate and streamline business planning. It is an exciting time to be in the digital supply chain innovation business and we remain optimistic about the opportunities ahead.”
To view the original press release and additional financial highlights, please click here.
