BARNSLEY, England, Nov. 14, 2016 /PRNewswire/ -- MAM Software Group,
Inc. (NASDAQ Capital Market: MAMS) (the "Company" or "MAM"), a
leading global provider of on-premise and cloud-based business
management solutions for the auto parts, tire and vertical
distribution industries, announced the following financial results
in accordance with U.S. generally accepted accounting principles
("GAAP") for its first fiscal quarter ended September 30, 2016, through the filing on
November 14, 2016 of its Quarterly
Report on Form 10-Q with the Securities and Exchange
Commission:
(In thousands,
except per share data)
|
For The Three
Months Ended
September 30,
|
|
2016
|
|
2015
|
Revenues
|
$
|
8,062
|
|
$
|
7,995
|
Gross
profit
|
$
|
4,744
|
|
$
|
4,281
|
Operating
income
|
$
|
1,367
|
|
$
|
1,024
|
Income before
provision for income taxes
|
$
|
1,247
|
|
$
|
1,014
|
Net income
|
$
|
1,213
|
|
$
|
830
|
Earnings per share
attributed to common stockholders – basic
|
$
|
0.10
|
|
$
|
0.06
|
Earnings per share
attributed to common stockholders – diluted
|
$
|
0.10
|
|
$
|
0.06
|
Weighted average
shares outstanding – basic
|
|
11,699
|
|
|
13,395
|
Weighted average
shares outstanding – diluted
|
|
11,795
|
|
|
13,490
|
Michael Jamieson, MAM's President
and Chief Executive Officer, commented, "The new perpetual software
license deals we were recently awarded by multiple North American
customers drove an increase in our revenues and profitability
during the first quarter. Clearly, the investments in product we
made during fiscal 2016 are proving to be beneficial to our
commercial market performance. While the improvement in revenues
and profitability in the first quarter is encouraging, our plans
for additional investments for support staff and in R&D in
fiscal 2017 remain intact, as does our outlook for the full fiscal
year. These investments and the successful completion of our 2017
key initiatives, we believe, will position us for double-digit
growth in revenue and profitability beginning in fiscal 2018."
"Management of key, large-scale and complex development and
implementation projects, including VAST Online, continues according
to plans developed and monitored in conjunction with our
customers," continued Jamieson. "I am pleased with the progress we
are making as we move into the coming quarters when we expect to
achieve significant milestones with these projects."
First Quarter Highlights:
- Revenues of $8.1 million were up
0.8% compared to $8.0 million for the
same period last year. On a constant currency basis, revenues were
up 12.4% over the same period last year.
- Recurring revenues were 79.5% of total revenues compared to
79.1% of total revenues for the same period last year.
- Total Software as a Service (SaaS) revenues increased 29.2%
year-over-year. On a constant currency basis, SaaS revenues
increased $738,000, or 47.7%,
year-over-year.
- Operating income was $1.4
million, or 16.9% of revenues, versus $1.0 million, or 12.8% of revenues, for the same
period last year.
- Adjusted EBITDA* was $1.6
million, or 19.6% of revenues, versus $1.2 million, or 15.2% of revenues, for the same
period last year.
- Net income was $1.2 million as
compared to $830,000 in the same
period last year.
First Quarter Financial Results:
Revenue was $8.1 million for the
quarter ended September 30, 2016
versus $8.0 million for the same
period last year, an increase of $67,000 or 0.8%.
- On a constant currency basis, revenue was up 12.4% over the
same period last year.
- Recurring revenue for the quarter was $6.4 million, or 79.5% of total revenue, an
increase of $85,000 or 1.4%, over
$6.3 million, or 79.1% of total
revenue for the first quarter last year.
- Total Software as a Service (SaaS) revenue for the quarter was
$2.0 million, an increase of
$452,000, or 29.2%, year-over-year.
The increase in the SaaS revenue was primarily attributable to a
24.3% increase in Autowork Online (SaaS) revenue for the quarter to
$1.2 million, and a 37.6% increase in
Autopart Online (SaaS) revenue for the quarter to $775,000.
- Total Data as a Service (DaaS) revenue for the quarter was
$2.3 million, a decrease of
$254,000, or (10.1)%, year over year.
On a constant currency basis, DaaS revenue increased $40,000, or 1.6%, year over year.
Gross profit for the quarter was $4.7
million, or 58.8% of total revenue, an increase of
$463,000 compared to $4.3 million, or 53.5% of total revenue, for the
same period last year. The increase in gross profit margins was
primarily the result of an increase in higher margin nonrecurring
revenues primarily related to Autopart software license deals and
increased ALLDATA user counts, pricing, and customization.
Operating expenses for the quarter increased by $120,000 to $3.4
million, an increase of 3.7% as compared to the $3.3 million for the same period last year. The
increase was primarily the result of increases in R&D expenses
primarily to support new client development, annual incentive
plans, allowance for bad debts, and changes within the accounting
and financing organization, partially offset by decreased Sales and
Marketing expenses related to the timing of US trade show expenses
and lower overall headcount.
Operating income for the quarter increased by $343,000, or 33.5%, to $1.4 million, as compared to $1.0 million, for the same period last year.
Other expense for the quarter of $120,000 was the result of increased interest
expense on borrowings used to fund a public tender offer completed
in the second fiscal quarter of 2016, and compares to $10,000 for the same period last year.
Net income for the quarter increased by $383,000, or 46.1%, to $1.2 million, or $0.10 per basic and diluted share, compared to
net income of $830,000, or
$0.06 per basic and diluted share,
for the same period last year.
Balance Sheet and Other Financial Highlights
- The Company finished the quarter with $333,000 in cash after capital expenditures and
capitalized software development costs of $773,000.
- As of September 30, 2016, the
Company had $1.25 million of debt
outstanding under its $2.5 million
revolving credit facility and $8.1
million outstanding under its term loan.
- Stockholders' equity increased from $5.0
million at June 30, 2016 to
$5.8 million at September 30, 2016.
- As of September 30, 2016, MAM
Software had 12.3 million shares of common stock outstanding.
Business Outlook
The Company reaffirmed its expectations for fiscal year 2017
Adjusted EBITDA* of $4.1 million to $4.6
million.
Conference Call Information
The Company has scheduled a conference call for Tuesday, November 15, 2016, at 9 a.m. ET to review the results. Investors and
interested parties can access the conference call by dialing:
- Toll-Free: 888-632-5012
- Toll/International: 913-312-1460
- UK Toll-Free: 0 808 101 1402
A replay will be available until November
29, 2016 by calling 844-512-2921 (United States) or 1-412-317-6671
(toll/UK/international). Please use pin number 6029167 for the
replay.
A live webcast as well as a replay of the call will be
accessible at the investor relations section of the Company's
website, www.mamsoftware.com. The replay will be active for 60 days
following the conference call.
About MAM Software Group, Inc.
MAM Software is a leading global provider of cloud-based
business and on-premise management solutions for the auto parts,
tire and vertical distribution industries. The company provides a
portfolio of innovative software (SaaS and packaged), data (DaaS),
and integration (iPaaS) services that enable businesses to
intelligently manage core business processes, control costs and
generate new profit opportunities. MAM's integrated platforms
provide a wealth of rich functionality including: point-of-sale,
inventory, purchasing, reporting, data and e-commerce. Wholesale,
retail and installer business across North America, the U.K. and Ireland rely on MAM solutions, backed by
dedicated teams of experienced service and support professionals.
For further information, please visit
http://www.mamsoftware.com.
*Adjusted EBITDA is defined as earnings before interest, taxes,
depreciation and amortization adjusted to exclude non-cash equity
compensation, and other special non-recurring charges. A
reconciliation of adjusted EBITDA to net income (loss) can be found
at the end of the following tables. Adjusted EBITDA is commonly
used by management and investors as an indicator of operating
performance and liquidity. Adjusted EBITDA is not considered a
measure of financial performance under GAAP and it should not be
considered as an alternative to net income (loss), or other
financial statement data presented in accordance with GAAP in our
consolidated financial statements.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Readers are cautioned not to place undue reliance on these
forward-looking statements. Actual results may differ materially
from those indicated by these forward-looking statements as a
result of risks and uncertainties impacting the Company's business
including, increased competition; the ability of the Company to
expand its operations through either acquisitions or internal
growth, to attract and retain qualified professionals, and to
expand commercial relationships; technological obsolescence;
general economic conditions; and other risks detailed from time to
time in the Company's filings with the Securities and Exchange
Commission.
MAM SOFTWARE
GROUP, INC.
Condensed
Consolidated Balance Sheets
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
|
2016
|
|
|
2016
|
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
333
|
|
|
$
|
491
|
|
Accounts receivable,
net of allowance of $451 and $359, respectively
|
|
|
5,016
|
|
|
|
4,627
|
|
Inventories
|
|
|
235
|
|
|
|
221
|
|
Prepaid expenses and
other current assets
|
|
|
1,207
|
|
|
|
1,495
|
|
Income tax
receivable
|
|
|
178
|
|
|
|
535
|
|
Total Current
Assets
|
|
|
6,969
|
|
|
|
7,369
|
|
|
|
|
|
|
|
|
|
|
Property and
Equipment, Net
|
|
|
551
|
|
|
|
581
|
|
|
|
|
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
8,177
|
|
|
|
8,363
|
|
Intangible assets,
net
|
|
|
697
|
|
|
|
739
|
|
Software development
costs, net
|
|
|
5,853
|
|
|
|
5,234
|
|
Other long-term
assets
|
|
|
93
|
|
|
|
68
|
|
TOTAL
ASSETS
|
|
$
|
22,340
|
|
|
$
|
22,354
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,618
|
|
|
$
|
1,618
|
|
Accrued expenses and
other liabilities
|
|
|
1,471
|
|
|
|
1,811
|
|
Payroll and other
taxes
|
|
|
1,001
|
|
|
|
1,188
|
|
Current portion of
long-term debt
|
|
|
1,882
|
|
|
|
1,879
|
|
Current portion of
deferred revenue
|
|
|
1,015
|
|
|
|
939
|
|
Sales tax
payable
|
|
|
705
|
|
|
|
750
|
|
Income tax
payable
|
|
|
31
|
|
|
|
1
|
|
Total Current
Liabilities
|
|
|
7,723
|
|
|
|
8,186
|
|
|
|
|
|
|
|
|
|
|
Long-Term
Liabilities
|
|
|
|
|
|
|
|
|
Deferred revenue, net
of current portion
|
|
|
371
|
|
|
|
273
|
|
Deferred income
taxes
|
|
|
518
|
|
|
|
535
|
|
Long-term debt, net
of current portion
|
|
|
7,412
|
|
|
|
7,808
|
|
Other long-term
liabilities
|
|
|
546
|
|
|
|
533
|
|
Total
Liabilities
|
|
|
16,570
|
|
|
|
17,335
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Preferred stock: Par
value $0.0001 per share; 2,000 shares authorized, none issued and
outstanding
|
|
|
-
|
|
|
|
-
|
|
Common stock: Par
value $0.0001 per share; 18,000 shares authorized, 13,134 shares
issued and 12,344 shares outstanding at September 30, 2016 and
13,199 shares issued and 12,409 shares outstanding at June 30,
2016
|
|
|
1
|
|
|
|
1
|
|
Additional paid-in
capital
|
|
|
16,176
|
|
|
|
16,162
|
|
Accumulated other
comprehensive loss
|
|
|
(3,461)
|
|
|
|
(2,985)
|
|
Accumulated
deficit
|
|
|
(4,572)
|
|
|
|
(5,785)
|
|
Treasury stock at
cost, 790 shares at September 30, 2016 and 790 shares at June 30,
2016
|
|
|
(2,374)
|
|
|
|
(2,374)
|
|
Total
Stockholders' Equity
|
|
|
5,770
|
|
|
|
5,019
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
22,340
|
|
|
$
|
22,354
|
|
MAM SOFTWARE
GROUP, INC.
Condensed
Consolidated Statements of Comprehensive Income
(Unaudited)
(In thousands,
except per share data)
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
|
September
30,
|
|
|
|
2016
|
|
|
2015
|
|
Net
revenues
|
|
$
|
8,062
|
|
|
$
|
7,995
|
|
Cost of
revenues
|
|
|
3,318
|
|
|
|
3,714
|
|
Gross
Profit
|
|
|
4,744
|
|
|
|
4,281
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
895
|
|
|
|
830
|
|
Sales and
marketing
|
|
|
910
|
|
|
|
1,071
|
|
General and
administrative
|
|
|
1,510
|
|
|
|
1,267
|
|
Depreciation and
amortization
|
|
|
62
|
|
|
|
89
|
|
Total Operating
Expenses
|
|
|
3,377
|
|
|
|
3,257
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
1,367
|
|
|
|
1,024
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(120)
|
|
|
|
(10)
|
|
Total other
expense, net
|
|
|
(120)
|
|
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
Income before
provision for income taxes
|
|
|
1,247
|
|
|
|
1,014
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
34
|
|
|
|
184
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
1,213
|
|
|
$
|
830
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributed to common stockholders – basic
|
|
$
|
0.10
|
|
|
$
|
0.06
|
|
Earnings per share
attributed to common stockholders - diluted
|
|
$
|
0.10
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding – basic
|
|
|
11,699
|
|
|
|
13,395
|
|
Weighted average
common shares outstanding – diluted
|
|
|
11,795
|
|
|
|
13,490
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
1,213
|
|
|
$
|
830
|
|
Foreign currency
translation loss
|
|
|
(476)
|
|
|
|
(605)
|
|
Total
Comprehensive Income
|
|
$
|
737
|
|
|
$
|
225
|
|
MAM SOFTWARE
GROUP, INC.
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
(In
thousands)
|
|
|
|
For the Three
Months Ended
|
|
|
|
September
30,
|
|
|
|
2016
|
|
|
2015
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,213
|
|
|
|
830
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Bad debt
expense
|
|
|
120
|
|
|
|
34
|
|
Depreciation and
amortization
|
|
|
128
|
|
|
|
153
|
|
Amortization of debt
discount and debt issuance costs
|
|
|
12
|
|
|
|
-
|
|
Deferred income
taxes
|
|
|
2
|
|
|
|
(1)
|
|
Stock-based
compensation expense
|
|
|
84
|
|
|
|
41
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(592)
|
|
|
|
354
|
|
Inventories
|
|
|
(19)
|
|
|
|
(9)
|
|
Prepaid expenses and
other assets
|
|
|
232
|
|
|
|
458
|
|
Income tax
receivable
|
|
|
357
|
|
|
|
-
|
|
Accounts
payable
|
|
|
24
|
|
|
|
(795)
|
|
Accrued expenses and
other liabilities
|
|
|
(154)
|
|
|
|
(693)
|
|
Payroll and other
taxes
|
|
|
(193)
|
|
|
|
277
|
|
Deferred
revenue
|
|
|
196
|
|
|
|
(36)
|
|
NET CASH PROVIDED
BY OPERATING ACTIVITIES
|
|
|
1,410
|
|
|
|
613
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(24)
|
|
|
|
(14)
|
|
Capitalized software
development costs
|
|
|
(749)
|
|
|
|
(633)
|
|
Business acquisition,
net of cash acquired
|
|
|
-
|
|
|
|
(453)
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
|
(773)
|
|
|
|
(1,100)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Repurchase of common
stock for treasury
|
|
|
-
|
|
|
|
(161)
|
|
Proceeds from
long-term debt
|
|
|
250
|
|
|
|
-
|
|
Repayment of
long-term debt
|
|
|
(655)
|
|
|
|
-
|
|
Cash paid for common
stock surrendered
|
|
|
(149)
|
|
|
|
-
|
|
NET CASH USED IN
FINANCING ACTIVITIES
|
|
|
(554)
|
|
|
|
(161)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes
|
|
|
(241)
|
|
|
|
(321)
|
|
Net change in cash
and cash equivalents
|
|
|
(158)
|
|
|
|
(969)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
491
|
|
|
|
6,793
|
|
Cash and cash
equivalents at end of period
|
|
$
|
333
|
|
|
|
5,824
|
|
MAM SOFTWARE
GROUP, INC.
Calculation of Adjusted Earnings before Interest,
Taxes, Depreciation, and Amortization (Non-GAAP)
(Unaudited) (in thousands)
|
|
|
|
For the
Three
|
|
|
Months
Ended September 30,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Net Income
(GAAP)
|
$
|
1,213
|
$
|
830
|
Interest expense,
net
|
|
120
|
|
10
|
Provision for income
taxes
|
|
34
|
|
184
|
Depreciation and
amortization
|
|
128
|
|
153
|
Non-cash stock
compensation
|
|
84
|
|
41
|
Adjusted EBITDA
(Non-GAAP)
|
$
|
1,579
|
$
|
1,218
|
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SOURCE MAM Software Group, Inc.