BLUE BELL, Pa., Nov. 14,
2017 /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, 2017,
through the filing on November 14,
2017 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,
|
|
2017
|
|
2016
|
Net
revenues
|
$
|
8,638
|
|
$
|
8,062
|
Gross
profit
|
$
|
4,831
|
|
$
|
4,744
|
Operating
income
|
$
|
1,527
|
|
$
|
1,367
|
Income before
provision for income taxes
|
$
|
1,423
|
|
$
|
1,247
|
Net income
|
$
|
1,114
|
|
$
|
1,213
|
Earnings per share
attributed to common stockholders – basic
|
$
|
0.09
|
|
$
|
0.10
|
Earnings per share
attributed to common stockholders – diluted
|
$
|
0.09
|
|
$
|
0.10
|
Weighted average
shares outstanding – basic
|
|
11,816
|
|
|
11,699
|
Weighted average
shares outstanding – diluted
|
|
11,871
|
|
|
11,795
|
Michael Jamieson, MAM's President
and Chief Executive Officer commented, "Fiscal year 2018 is off to
a solid start with results that were in-line with our expectations.
We also continued to focus our efforts on progressing on our key
development projects, including VAST Online and Autocat+."
"Our team achieved a significant milestone in October with the
first installation of VAST Online at a Goodyear dealer location as
part of our pilot test program," continued Jamieson. "We are
pleased with the feedback that we've received so far from our
customer. With this being the first location to go live we
will continue to monitor it closely while preparing for the
roll-out at additional locations."
First Quarter Highlights:
- Net revenues of $8.6 million were
up 7.1% compared to $8.1 million for
the same period last year. On a constant currency basis, revenues
were up 7.4% over the same period last year.
- Recurring revenues were 82.0% of total revenues compared to
79.5% of total revenues for the same period last year.
- Total Software as a Service (SaaS) revenues increased 29%
year-over-year and 7.5% sequentially.
- Operating income was $1.5
million, or 17.7% of revenues, versus $1.4 million, or 17.0% of revenues, for the same
period last year.
- Adjusted EBITDA* was $1.8
million, or 20.4% of revenues, versus $1.6 million, or 19.6% of revenues, for the same
period last year.
- Net income was $1.1 million as
compared to $1.2 million in the same
period last year.
First Quarter Financial Results:
Net revenues were $8.6 million for
the quarter ended September 30, 2017
versus $8.1 million for the same
period last year, an increase of $576,000 or 7.1%. On a constant currency basis,
revenue was up 7.4% over the same period last year.
Recurring revenue for the quarter was $7.1 million, or 82% of total revenue, an
increase of $673,000 or 10.5%, over
$6.4 million, or 79.5% of total
revenue, for the first quarter last year. Sequentially, recurring
revenue increased $225,000, or 3.2%,
compared to $6.9 million in the
fiscal fourth quarter of 2017.
Total Software as a Service (SaaS) revenue for the quarter was
$2.6 million, an increase of
$580,000, or 29%, year-over-year and
an increase of $179,000, or 7.5%,
sequentially when compared to the fourth quarter of fiscal 2017.
The increase in the SaaS revenue was primarily attributable to a
24.3% increase in Autowork Online (SaaS) revenue for the quarter to
$1.5 million, and a 36.5% increase in
Autopart Online (SaaS) revenue for the quarter to $1.1 million.
Total Data as a Service (DaaS) revenue for the quarter was
$2.3 million, an increase of
$72,000, or 3.2%, year over year, and
$114,000, or 5.1%, sequentially when
compared to the fiscal fourth quarter of 2017.
Gross profit for the quarter was $4.8
million, or 55.9% of total revenue, an increase of
$87,000 compared to $4.7 million, or 58.8% of total revenue, for the
same period last year.
Operating expenses for the quarter decreased by $74,000 to $3.3
million, a decrease of 2.2% as compared to $3.4 million for the same period last year. An
increase in Research and Development expenses to support growth was
offset by lower Sales and Marketing expenses and General and
Administrative expenses.
Operating income for the quarter increased by $160,000, or 11.7%, to $1.5 million, as compared to $1.4 million for the same period last year.
Other expense for the quarter decreased by $16,000, or 13.3%, to $104,000, as compared to $120,000 for the same period last year.
Provision for income taxes increased to $0.3 million, or an effective tax rate of 22%,
for the quarter, as compared to $34,000, or an effective tax rate of 3%, for the
same period last year. The increase in the effective tax rate was
primarily due to the partial release of our valuation allowance
last year.
Net income for the quarter was $1.1
million, or $0.09 per basic
and diluted share, compared to net income of $1.2 million, or $0.10 per basic and diluted share, for the same
period last year.
Balance Sheet and Other Financial Highlights
- As of September 30, 2017, the
Company had $2.4 million in cash and
cash equivalents.
- The Company spent $0.7 million
during the quarter ended September 30,
2017 on capital expenditures and capitalized software
development.
- As of September 30, 2017, the
Company had $7.8 million of debt
outstanding under its term loan and nothing outstanding under its
$2.75 million revolving
facility.
- Stockholders' equity increased from $9.7
million at June 30, 2017, to
$11.2 million at September 30, 2017.
- As of September 30, 2017, there
were 12.3 million shares of common stock outstanding.
Business Outlook
The Company reaffirmed its expectations for fiscal year 2018
Adjusted EBITDA* in the range of $5.5
million to $6.0 million, on a constant currency basis.
Conference Call Information
The Company has scheduled a conference call for Wednesday, November 15, 2017, at 9 a.m. ET to review the results. Investors and
interested parties can access the conference call by dialing:
- United States:
1-800-289-0438
- UK/international: 1-323-794-2423
- U.K. toll free: 0800 358 6377
A replay will be available until November
29, 2017 by calling 1-844-512-2921 (United States) or 1-412-317-6671
(UK/international). Please use pin number 6378993 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 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 net income (loss) to Adjusted EBITDA 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 share and per share data)
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
2017
|
|
2017
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,438
|
|
$
|
1,260
|
Accounts receivable,
net of allowance of $341 and $332, respectively
|
|
4,049
|
|
|
4,644
|
Inventories
|
|
215
|
|
|
154
|
Prepaid expenses and
other current assets
|
|
1,420
|
|
|
1,489
|
Income tax
receivable
|
|
-
|
|
|
168
|
Total Current
Assets
|
|
8,122
|
|
|
7,715
|
|
|
|
|
|
|
Property and
Equipment, Net
|
|
527
|
|
|
511
|
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
Goodwill
|
|
8,364
|
|
|
8,191
|
Intangible assets,
net
|
|
637
|
|
|
639
|
Software development
costs, net
|
|
8,283
|
|
|
7,634
|
Deferred income
taxes
|
|
1,495
|
|
|
1,679
|
Other long-term
assets
|
|
332
|
|
|
283
|
TOTAL
ASSETS
|
$
|
27,760
|
|
$
|
26,652
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts
payable
|
$
|
1,146
|
|
$
|
1,334
|
Accrued expenses and
other liabilities
|
|
1,298
|
|
|
1,137
|
Accrued payroll and
related expenses
|
|
1,392
|
|
|
1,605
|
Current portion of
long-term debt
|
|
1,792
|
|
|
1,734
|
Current portion of
deferred revenue
|
|
1,439
|
|
|
1,477
|
Sales tax
payable
|
|
782
|
|
|
761
|
Income tax
payable
|
|
634
|
|
|
506
|
Total Current
Liabilities
|
|
8,483
|
|
|
8,554
|
|
|
|
|
|
|
Long-Term
Liabilities
|
|
|
|
|
|
Deferred revenue, net
of current portion
|
|
872
|
|
|
772
|
Deferred income
taxes
|
|
704
|
|
|
682
|
Long-term debt, net
of current portion
|
|
5,939
|
|
|
6,386
|
Other long-term
liabilities
|
|
600
|
|
|
583
|
Total
Liabilities
|
|
16,598
|
|
|
16,977
|
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,
12,328 shares issued and 12,323 shares outstanding at
September 30,
2017, and 12,313 shares issued and 12,308 shares outstanding
at
June 30, 2017
|
|
1
|
|
|
1
|
Additional paid-in
capital
|
|
14,288
|
|
|
14,180
|
Accumulated other
comprehensive loss
|
|
(3,018)
|
|
|
(3,283)
|
Accumulated
deficit
|
|
(93)
|
|
|
(1,207)
|
Treasury stock at
cost, 5 shares at September 30, 2017 and at
June 30, 2017
|
|
(16)
|
|
|
(16)
|
Total
Stockholders' Equity
|
|
11,162
|
|
|
9,675
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
27,760
|
|
$
|
26,652
|
|
|
|
|
|
|
MAM SOFTWARE
GROUP, INC.
Condensed
Consolidated Statements of Comprehensive Income
(Unaudited)
(In thousands,
except share and per share data)
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
September
30,
|
|
2017
|
|
2016
|
Net
revenues
|
$
|
8,638
|
|
$
|
8,062
|
Cost of
revenues
|
|
3,807
|
|
|
3,318
|
Gross
Profit
|
|
4,831
|
|
|
4,744
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
Research and
development
|
|
1,003
|
|
|
895
|
Sales and
marketing
|
|
753
|
|
|
910
|
General and
administrative
|
|
1,490
|
|
|
1,510
|
Depreciation and
amortization
|
|
58
|
|
|
62
|
Total Operating
Expenses
|
|
3,304
|
|
|
3,377
|
|
|
|
|
|
|
Operating
Income
|
|
1,527
|
|
|
1,367
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
Interest expense,
net
|
|
(104)
|
|
|
(120)
|
Total other income
(expense), net
|
|
(104)
|
|
|
(120)
|
|
|
|
|
|
|
Income before
provision for income taxes
|
|
1,423
|
|
|
1,247
|
|
|
|
|
|
|
Provision for income
taxes
|
|
309
|
|
|
34
|
|
|
|
|
|
|
Net
Income
|
$
|
1,114
|
|
$
|
1,213
|
|
|
|
|
|
|
Earnings per share
attributed to common stockholders – basic
|
$
|
0.09
|
|
$
|
0.10
|
Earnings per share
attributed to common stockholders – diluted
|
$
|
0.09
|
|
$
|
0.10
|
|
|
|
|
|
|
Weighted average
common shares outstanding – basic
|
|
11,816
|
|
|
11,699
|
Weighted average
common shares outstanding – diluted
|
|
11,871
|
|
|
11,795
|
|
|
|
|
|
|
Net
Income
|
$
|
1,114
|
|
$
|
1,213
|
Foreign currency
translation income (loss)
|
|
265
|
|
|
(476)
|
Total
Comprehensive Income
|
$
|
1,379
|
|
$
|
737
|
MAM SOFTWARE
GROUP, INC.
Condensed
Consolidated Statements of Cash Flows
(Unaudited)
(In
thousands)
|
|
|
|
For the Three
Months Ended
|
|
September 30,
|
|
2017
|
|
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net income
|
$
|
1,114
|
|
$
|
1,213
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Bad debt
expense
|
|
12
|
|
|
120
|
Depreciation and
amortization
|
|
142
|
|
|
128
|
Amortization
of debt issuance costs
|
|
11
|
|
|
12
|
Deferred income
taxes
|
|
184
|
|
|
2
|
Stock-based
compensation expense
|
|
97
|
|
|
84
|
|
|
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
652
|
|
|
(592)
|
Prepaid expenses and
other assets
|
|
(7)
|
|
|
213
|
Income tax
receivable
|
|
169
|
|
|
357
|
Accounts
payable
|
|
(205)
|
|
|
24
|
Accrued expenses and
other liabilities
|
|
(87)
|
|
|
(347)
|
Income tax
payable
|
|
126
|
|
|
-
|
Deferred
revenues
|
|
32
|
|
|
196
|
NET CASH PROVIDED
BY OPERATING ACTIVITIES
|
|
2,240
|
|
|
1,410
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(42)
|
|
|
(24)
|
Capitalized software
development costs
|
|
(630)
|
|
|
(749)
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
(672)
|
|
|
(773)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Proceeds from
long-term debt
|
|
-
|
|
|
250
|
Repayment of
long-term debt
|
|
(400)
|
|
|
(655)
|
Common stock
surrendered to pay for tax withholding
|
|
-
|
|
|
(149)
|
NET CASH USED IN
FINANCING ACTIVITIES
|
|
(400)
|
|
|
(554)
|
|
|
|
|
|
|
|
Effect of exchange
rate changes
|
|
10
|
|
|
(241)
|
Net change in cash
and cash equivalents
|
|
1,178
|
|
|
(158)
|
Cash and cash
equivalents at beginning of period
|
|
1,260
|
|
|
491
|
Cash and cash
equivalents at end of period
|
$
|
2,438
|
|
$
|
333
|
The Accompanying Notes Are an Integral Part of
these Condensed Consolidated Financial Statements
F-4
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,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
Net income
(GAAP)
|
$
|
1,114
|
$
|
1,213
|
Interest expense,
net
|
|
104
|
|
120
|
Provision for income
taxes
|
|
309
|
|
34
|
Depreciation and
amortization
|
|
142
|
|
128
|
Non-cash stock
compensation
|
|
97
|
|
84
|
Adjusted EBITDA
(Non-GAAP)
|
$
|
1,766
|
$
|
1,579
|
|
|
|
|
|
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SOURCE MAM Software Group, Inc.