American Software, Inc. reported preliminary financial results for the fourth quarter and fiscal year 2022.
Key Fourth Quarter Financial Highlights:
- Subscription fees were $11.1 million for the quarter ended April 30, 2022, a 37% increase compared to $8.1 million for the same period last year, and software license revenues were up 153% to $3.1 million compared to $1.2 million for the same period last year.
- Cloud Services Annual Contract Value (ACV) increased approximately 26% to $48.2 million for the quarter ended April 30, 2022 compared to $38.3 million during the same period of the prior year.
- Total revenues for the quarter ended April 30, 2022 increased 21% to $34.6 million, compared to $28.6 million for the same period of the prior year.
- Recurring revenue streams for Maintenance and Cloud Subscriptions were $19.8 million or 57% of total revenues in the quarter ended April 30, 2022 compared to $17.3 million or 60% in the same period of the prior year.
- Maintenance revenues for the quarter ended April 30, 2022 decreased 5% to $8.8 million compared to $9.2 million for the same period last year.
- Professional services and other revenues for the quarter ended April 30, 2022 increased 16% to $11.7 million compared to $10.1 million for the same period last year. For the Supply Chain business, professional services revenues for the quarter ended April 30, 2022 increased by 11% to $6.0 million when compared to $5.4 million in the same period prior year.
- Operating earnings for the quarter ended April 30, 2022 increased 186% to $5.5 million compared to $1.9 million for the same period last year.
- GAAP net earnings for the quarter ended April 30, 2022 increased 17% to $3.6 million or $0.10 per fully diluted share compared to $3.1 million or $0.09 per fully diluted share for the same period last year.
- Adjusted net earnings for the quarter ended April 30, 2022, which excludes non-cash stock-based compensation expense and amortization of acquisition-related intangibles, increased 22% to $4.4 million or $0.13 per fully diluted share compared to $3.6 million or $0.11 per fully diluted share for the same period last year.
- EBITDA increased by 109% to $6.4 million for the quarter ended April 30, 2022 compared to $3.1 million for the same period last year.
- Adjusted EBITDA increased by 101% to $7.5 million for the quarter ended April 30, 2022 compared to $3.7 million for the same period last year. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest (loss)/income & other, net, income tax expense and non-cash stock-based compensation expense.
Key Fourth Quarter of Fiscal Year 2022 highlights:
Customers & Channels
- Notable new and existing customers placing orders with the Company in the fourth quarter include: Ariela & Associates International, Bemis Manufacturing Company, Bondi Sands Australia Pty Ltd., Diversey, Inc., Polar Electro OY, Timex Group USA, Inc., Vista Outdoors, Workwear Outfitters, LLC.
- During the quarter, SaaS subscription and/or software license agreements were signed with customers located in the following 9 countries: Australia, Belgium, Canada, Denmark, France, Mexico, Sweden, United Kingdom and United States.
- Logility, Inc., a wholly owned subsidiary of American Software, Inc., continues to grow its market share in the apparel industry with the addition of Next Level Apparel® and stichd to its customer community.
- Next Level Apparel – one of the leading wholesale producers and sellers of premium quality blank apparel in the United States – implemented the Logility®Digital Supply Chain Platform to modernize its demand and inventory planning processes.
- stichd, a Netherlands-based product licensing company and division of PUMA, specializes in the design, production and distribution of high-quality bodywear, legwear, swimwear, and fanwear. The company selected Logility to support its ambitious growth strategy.
Key Fiscal 2022 Year to Date Financial Highlights:
- Subscription fees were $42.1 million for the twelve months ended April 30, 2022, a 46% increase compared to $28.9 million for the same period last year, while Software license revenues were $5.4 million compared to $3.0 million for the same period last year.
- Total revenues for the twelve months ended April 30, 2022 increased 14% to $127.6 million compared to $111.4 million for the same period last year.
- Recurring revenue streams for Maintenance and Cloud Services were $78.7 million and $68.8 million or 62% of total revenues for the twelve-month periods ended April 30, 2022 and 2021, respectively.
- Maintenance revenues for the twelve months ended April 30, 2022 were $36.6 million, a 8% decrease compared to $40.0 million for the same period last year.
- Professional services and other revenues for the twelve months ended April 30, 2022 increased 10% to $43.5 million compared to $39.6 million for the same period last year.
- For the twelve months ended April 30, 2022, the Company reported operating earnings of approximately $13.2 million compared to $4.4 million for the same period last year, a 202% increase.
- GAAP net earnings were approximately $12.8 million or $0.37 per fully diluted share for the twelve months ended April 30, 2022, a 58% increase compared to $8.1 million or $0.24 per fully diluted share for the same period last year.
- Adjusted net earnings for the twelve months ended April 30, 2022, which exclude stock-based compensation expense and amortization of acquisition-related intangibles, increased 48% to $16.0 million or $0.47 per fully diluted share, compared to $10.8 million or $0.33 per fully diluted share for the same period last year.
- EBITDA increased by 73% to $17.3 million for the twelve months ended April 30, 2022 compared to $10.0 million for the same period last year.
- Adjusted EBITDA increased 70% to $21.3 million for the twelve months ended April 30, 2022 compared to $12.5 million for the twelve months ended April 30, 2021. 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 overall financial condition of the Company remains strong, with cash and investments of approximately $127.5 million, an increase of approximately $22.9 million when compared to April 30, 2021. During the fourth quarter of fiscal year 2022, the Company paid shareholder dividends of approximately $3.7 million.
“With continued strain on the global supply chain, this past year truly underscored the need companies have for more accurate demand forecasting, inventory optimization and resilient sourcing strategies. We continue to answer this call, focusing our efforts on delivering innovative solutions to market challenges and providing our customers with greater visibility into their supply chains from end to end,” said Allan Dow, CEO and President of American Software. “We provided dynamic solution updates to our customer community, driving greater efficiency, cost savings and opportunities to improve sustainability.”
“Our revenue growth accelerated to 21% in the fourth quarter of fiscal year 2022 and our Cloud revenue increased 37% increase when compared to the same period last year. We are excited that our fiscal year 2022 revenue grew 14% when compared to the prior year to a Company record of $127.6 million,” continued Dow. “As our revenue is increasingly being driven by recurring subscription and maintenance revenues, we are pleased to institute annual financial targets for our fiscal year 2023.”
Fiscal Year 2023 Financial Outlook
- Total revenues of $132.5 million to $135.0 million, including total recurring revenues of $86.5 million to $89.0 million.
- Adjusted EBITDA of $16.0 million to $18.0 million based on investments for growth and employee retention.
Company and Technology
- Allan Dow was recognized by Food Logistics as a 2022 Rock Star of the Supply Chain. The annual award program recognizes influential individuals in the industry whose achievements, hard work and vision have shaped the global cold food supply chain.
- Logility also announced its latest software release, which supports elevated planning across the product life cycle, from concept to delivery. Logility 21.03 builds on the platform’s comprehensive supply chain planning capabilities with additional functionality to enable transparency throughout the product life cycle. These enhancements further Logility’s mission to help its customers optimize their supply chains and commit to their sustainability goals.
