Logility Supply Chain Solutions, Inc. (“Logility” or the “Company”), a leader in AI-first supply chain planning software, reported its third quarter fiscal year 2025 financial results.
Proposed Transaction with Aptean, Inc. (“Aptean”)
On January 24, 2025, Logility announced that Aptean, a global provider of mission-critical enterprise software solutions, had entered into a definitive agreement (the “Merger Agreement”) to acquire Logility. Under the terms of the Merger Agreement, Aptean will acquire all of Logility’s outstanding common stock for $14.30 per share in an all-cash transaction. The transaction is expected to close in the second quarter of 2025, subject to customary closing conditions, including approval of the transaction by Logility’s shareholders and receipt of certain regulatory approvals. Additional details and information about the terms and conditions of the Merger Agreement and the transactions contemplated by the Merger Agreement are available in the Current Report on Form 8-K filed with the SEC on January 28, 2025.
Due to the pending transaction with Aptean, Logility will not be hosting an earnings conference call to review its results for the quarter and will not be providing a financial outlook. For further detail and discussion of our financial performance, please refer to our Form 10-Q for the quarter ended January 31, 2025, which will be filed with the SEC at a later date.
Key Third Quarter Financial Highlights from Continuing Operations:
- Subscription fees were $14.8 million for the quarter ended January 31, 2025, a 5% increase compared to $14.1 million for the same period of the prior year.
- Recurring revenue streams for Maintenance and Subscription fees were $21.6 million or 87% of total revenues in the quarter ended January 31, 2025 compared to $21.8 million or 86% of total revenues in the same period of the prior year.
- Total revenues for the quarter ended January 31, 2025 decreased 2% to $25.0 million, compared to $25.5 million for the same period of the prior year, principally due to a decrease in services and maintenance revenue.
- Maintenance revenues for the quarter ended January 31, 2025 decreased 12% to $6.8 million compared to $7.7 million for the same period last year due to client conversions to the cloud and churn.
- Professional services and other revenues for the quarter ended January 31, 2025 decreased 21% to $2.7 million for the quarter ended January 31, 2025 compared to $3.4 million for the same period last year. The decline was primarily caused by outsourcing of some services to systems integrators and lower project work for internal staff.
- Software license revenues were $0.7 million for the quarter ended January 31, 2025 compared to $0.3 million in the same period last year.
- Operating (loss)/earnings for the quarter ended January 31, 2025 were a loss of ($3.5) million compared to a gain of $0.8 million for the same period last year due to one-time charges for the Starboard acquisition-related items and the Aptean transaction.
- U.S. Generally Accepted Accounting Principle (“GAAP”) net loss from continuing operations for the quarter ended January 31, 2025 was ($2.8) million or ($0.08) per fully diluted share compared to net income of $4.2 million or $0.12 per fully diluted share for the same period last year.
- Adjusted net earnings from continuing operations for the quarter ended January 31, 2025, which excludes non-cash stock-based compensation expense, amortization of acquisition-related intangibles, Starboard acquisition-related costs and Aptean transaction related costs were $4.7 million or $0.14 per fully diluted share compared to $6.3 million or $0.19 per fully diluted share for the same period last year.
- EBITDA from continuing operations was a loss of ($2.4) million for the quarter ended January 31, 2025 compared to earnings of $2.4 million for the same period last year due to one-time charges for the Starboard acquisition-related items and the Aptean transaction.
- Adjusted EBITDA from continuing operations increased 7% to $4.3 million for the quarter ended January 31, 2025 compared to $4.0 million for the same period last year. Adjusted EBITDA represents GAAP net earnings/(loss) adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense, non-cash stock-based compensation expense, Starboard acquisition-related costs, and Aptean transaction related costs.
Key Fiscal 2025 Year to Date Financial Highlights from Continuing Operations:
- Subscription fees were $44.1 million for the nine months ended January 31, 2025, a 7% increase compared to $41.2 million for the same period last year, while Software license revenues were $1.0 million compared to $0.8 million for the same period last year.
- Recurring revenue streams for Maintenance and Subscription fees were $65.3 million and $65.2 million or 85% of total revenues for the nine-month periods ended January 31, 2025 and 2024.
- Total revenues for the nine months ended January 31, 2025 were $76.5 million compared to $77.1 million for the same period last year.
- Maintenance revenues for the nine months ended January 31, 2025 were $21.2 million, a 12% decrease compared to $24.0 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 nine months ended January 31, 2025 decreased 8% to $10.2 million compared to $11.1 million for the same period last year.
- For the nine months ended January 31, 2025, the Company reported earnings (loss) from continuing operations of approximately ($0.6) million compared to earnings of $3.4 million for the same period last year.
- GAAP net earnings from continuing operations were approximately $1.0 million or $0.03 per fully diluted share for the nine months ended January 31, 2025 compared to $7.4 million or $0.22 per fully diluted share for the same period last year.
- Adjusted net earnings from continuing operations for the nine months ended January 31, 2025, which exclude stock-based compensation expense, amortization of acquisition-related intangibles, Starboard acquisition-related costs and merger related costs were $9.2 million or $0.28 per fully diluted share, compared to $13.3 million or $0.39 per fully diluted share for the same period last year.
- EBITDA from continuing operations was $2.9 million for the nine months ended January 31, 2025 compared to $7.1 million for the same period last year.
- Adjusted EBITDA from continuing operations increased 10% to $13.0 million for the nine months ended January 31, 2025 compared to $11.8 million for the nine months ended January 31, 2024. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense, non-cash stock-based compensation, Starboard earnout costs and Aptean transaction-related costs.
The overall financial condition of the Company remains strong, with cash and investments of approximately $79.3 million. During the third quarter of fiscal year 2025, the Company paid shareholder dividends of approximately $3.7 million.
