By BARNSLEY, England, Jan. 29, 2014 /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 fiscal quarter ended December 31, 2013, through the filing on January 29, 2014 of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission:
(In thousands, For The Three Months For The Six Months
except share Ended Ended
--------------------- -------------------
and per share data) December 31,
December 31,
------------
2013 2012 2013 2012
---- ---- ---- ----
Revenues $7,362 $6,754 $14,923 $13,237
Gross profit $3,974 $3,928 $8,220 $7,701
Operating income $549 $1,047 $1,406 $1,961
Income before
provision for
income taxes $543 $966 $1,373 $1,719
Net income $393 $784 $1,085 $1,408
Earnings per
share
attributed to
common
stockholders -
basic $0.03 $0.06 $0.08 $0.11
Earnings per
share
attributed to
common
stockholders -
diluted $0.03 $0.06 $0.08 $0.11
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"We made solid progress in our efforts to develop cloud-based revenue streams and expand into ancillary markets, and this progress resulted in continued top-line growth and our 15(th) consecutive profitable quarter," said Michael Jamieson, MAM Software Group President and Chief Executive Officer. "Total revenues were up 9% to $7.36 million, and most of this increase was due to sales growth from our cloud-based solutions. Continued growth in our recurring revenues also contributed to the increase, as recurring revenue reached 72% of total revenue during the quarter. This was a productive quarter, which included the official launch of Manage Online - an innovative, cloud-based shop management system - in a collaboration with ALLDATA LLC."
Second Quarter Highlights
-- Comparing the three months ended December 31, 2013 to the same period
last year, total year-over-year quarterly revenue increased by $608,000
or 9% to $7.36 million from $6.75 million; and quarter-over-quarter
revenue decreased by $199,000 or 3%; and
-- Total year-over-year quarterly recurring revenue increased by $585,000
or 12% to $5.33 million from $4.75 million, and quarter-over-quarter
recurring revenue increased by $134,000 or 3%; and
-- Recurring revenue was 72% of total revenue for the quarter ended
December 31, 2013 versus 70% for the same quarter last year; and
-- Comparing the three months ended December 31, 2013 to the same three
months last year, total Software as a Service (SaaS) year-over-year
quarterly revenue increased $297,000 or 74% to $698,000 and
quarter-over-quarter revenue increased by $56,000 or 9%;
-- Autowork Online (SaaS) year-over-year quarterly revenue increased
$142,000 or 41% to $487,000 and quarter-over-quarter revenue had no
increase, and
-- Autopart Online (SaaS) year-over-year quarterly revenue increased
$155,000 or 275% to $211,000 and quarter-over-quarter revenue
increased by $55,000 or 35%.
-- Total Data as a Service (DaaS) year-over-year quarterly revenue
increased $145,000 or 10% to $1.65 million and quarter-over-quarter
revenue increased by $19,000 or 1%.
Second Quarter Financial Review
The Company's revenue was $7.36 million for the quarter ended December 31, 2013 versus $6.75 million for same period last year, an increase of $608,000 or 9%. Operating income for the quarter decreased by $498,000 to $549,000, a decrease of 48% when compared to the $1.05 million operating income for the same period last year. Net income for the quarter this year decreased by $391,000 to $393,000 versus $784,000, a decrease of 50% over the same period a year ago. Basic earnings per share were $0.03 versus $0.06 per share, and diluted earnings per share were $0.03 versus $0.06 per share for the same period a year ago.
Gross profit for the quarter was $3.97 million or 54% versus $3.93 million or 58% for the same period last year. The decrease in gross profit was the result of lower perpetual license revenue as the Company transitions its business to a Software as a Service (SaaS) model.
The Company's revenue from its U.S. and U.K. operations this quarter was $1.98 million and $5.38 million respectively, compared to $2.12 million and $4.64 million during the same period last year. U.S. recurring revenue increased $198,000 or 16% to $1.43 million this quarter, from $1.23 million for the same period last year. U.K. recurring revenue increased $387,000 or 11% to $3.91 million this quarter, from $3.52 million for same period last year.
Year-to-Date Highlights
-- Total year-over-year revenue for the six months ended December 31, 2013
increased $1.69 million or 13% to $14.92 million when compared to the
same period last year.
-- Total year-over-year recurring revenue increased by $1.15 million or 12%
to $10.53 million from $9.38 million; and
-- Recurring revenue was 71% of total revenue for the six month period,
versus 70% for the same period last year; and
-- Comparing the six months period this year to the same period last year,
total Software as a Service (SaaS) year-over-year revenue increased by
$561,000 or 72% to $1.34 million;
-- Autowork Online (SaaS) year-over-year revenue increased by $296,000
or 44% to $973,000, and
-- Autopart Online (SaaS) year-over-year revenue increased by $265,000
or 258% to $367,000.
-- Total Data as a Service (DaaS) year-over-year revenue increased by
$241,000 or 8% to $3.27 million.
-- Trailing 12 month adjusted EBITDA (non-GAAP) of $5.18 million after
substantial global investments in personnel and sales and marketing
expenditures.
-- A $1.12 million or 28% increase in cash to $5.18 million after capital
expenditures of $391,000. The Company has no debt outstanding.
-- Stockholders' equity increase of $2.31 million or 16% to $16.93 million.
-- System backlog of $1.45 million.
Year-to-Date Financial Review
The Company's revenue was $14.92 million for the six months ended December 31, 2013 versus $13.24 million for the same period last year, an increase of $1.69 million or 13%. Operating income for the six month period decreased by $555,000 to $1.41 million, a decrease of 28% when compared to the $1.96 million operating income for the same period last year. Net income for the six month period decreased by $323,000 to $1.09 million versus $1.41 million, a decrease of 23% over the same period a year ago. Basic earnings per share was $0.08 versus $0.11 per share, and diluted earnings per share were $0.08 versus $0.11 per share, for the same period a year ago.
Gross profit for the six month period was $8.22 million or 55% versus $7.70 million or 58% for the same period last year. The increase in gross profit was the result of increased recurring revenue and perpetual license revenue when compared to the previous year.
The Company's revenue from its U.S. and U.K. operations was $4.25 million and $10.68 million respectively, compared to $4.04 million and $9.19 million during the same six month period last year. U.S. recurring revenue increased $426,000 or 18% to $2.84 million for the six month period, from $2.41 million for the same period last year. U.K. recurring revenue increased $723,000 or 10% to $7.69 million for period from $6.97 million for the same six month period last year.
Second Quarter and Year-to-Date Business Update
Commenting on the second quarter of fiscal 2014, Michael Jamieson, MAM Software Group President and Chief Executive Officer, said:
"During this quarter, we have continued to make progress towards our strategic goals, building on the results achieved in fiscal 2013. We have maintained investment as we transition our business to a cloud solutions provider. This migration, which involves Software as a Service and Data as a Service offerings, has been successful on a variety of levels. We are pleased with the development and performance of our various cloud-based solutions, and we are encouraged by the response from customers. Our customer retention rate for the quarter, at 98%, was consistent with what we've experienced since introducing cloud-based delivery, confirming that our clients are deriving value from the platform. Attracting new customers to our SaaS solutions remains a priority and we're currently able to recoup our customer acquisition costs (CAC) in six months.
"Our launch of Manage Online in a collaboration with ALLDATA LLC is an accomplishment we're proud of. We believe that this relationship with one of the most recognized brand names in the industry will help to further elevate the MAM brand and meaningfully contribute to our company's growth.
"For the balance of the 2014 fiscal year we anticipate further investment in our sales, marketing and professional services departments. The investments we are making in 2014 should contribute to increased growth and profitability in fiscal 2015.
"For the first time in the Company's history, MAM has no debt and a cash position of $5.18 million," said Charles F. Trapp, Executive Vice President and Chief Financial Officer. "Continued strong recurring revenue, solid growth from our newer cloud-based offerings, and careful expense management helped us offset currency fluctuation impacts and deliver another profitable quarter. We continued to generate cash, eliminated our debt, and also invested in certain growth initiatives that we expect to drive the future performance of our company. As we continue to execute on our strategic goals, based on the outlook at the midway point in our fiscal year, we currently anticipate ending our fiscal year with an EBITDA of approximately $5 million for fiscal 2014."
The Company also reiterated that that it currently has $2.69 million left on its previously approved stock buyback program, which it intends to use selectively as circumstances and market conditions warrant. As of January 30, 2014, MAM had 14.48 million shares of common stock outstanding.
Conference Call Information
The Company has scheduled a conference call for Thursday, January 30, 2014, at 9:00am ET to review the results. Investors and interested parties can access the conference call by dialing 1-877-941-4774 in the United States and 1-480-629-9760 in the United Kingdom and other toll/international locations. A replay will be available until February 6, 2014 by calling 1-877-870-5176 (United States) or 1-858-384-5517 (toll/UK/international). Please use pin number 4663487 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 on-premise and cloud-based business 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.
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)
December 31, June 30,
2013 2013
----
ASSETS (Unaudited)
Current Assets
Cash and cash
equivalents $5,179 $4,061
Accounts
receivable,
net of
allowance of
$126 and $114 3,825 3,511
Inventories 267 199
Prepaid
expenses and
other current
assets 1,632 1,976
----- -----
Total Current
Assets 10,903 9,747
Property and
Equipment, Net 723 689
Other Assets
Goodwill 9,534 8,983
Amortizable
intangible
assets, net 380 640
Software
development
costs, net 1,432 1,248
Other long-
term assets 34 34
--- ---
TOTAL ASSETS $23,006 $21,341
======= =======
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Current
Liabilities
Accounts
payable $1,253 $1,400
Accrued
expenses and
other
liabilities 1,684 1,952
Payroll and
other taxes 723 718
Debt - 312
Current portion
of deferred
revenue 738 742
Sales tax
payable 783 769
Income tax
payable 417 352
--- ---
Total Current
Liabilities 5,598 6,245
Long-Term
Liabilities
Deferred
revenue, net
of current
portion 213 154
Deferred income
taxes 45 79
Other 217 241
--- ---
Total
Liabilities 6,073 6,719
----- -----
Commitments and
Contingencies
Stockholders'
Equity
Preferred
stock: Par
value $0.0001
per share;
2,000,000
shares
authorized,
none issued
and
outstanding - -
Common stock:
Par value outstanding at
$0.0001 per December 31,
share; 2013 and
18,000,000 14,813,172
shares shares issued
authorized, and 14,139,491
15,168,118 shares issued
shares issued and
and 14,494,437 outstanding at
shares 2 2
Additional
paid-in
capital 31,907 31,548
Accumulated
other
comprehensive
loss (301) (1,168)
Accumulated
deficit (12,929) (14,014)
Treasury stock
at cost,
673,681 shares
at December
31, 2013 and
June 30, 2013 (1,746) (1,746)
------ ------
Total
Stockholders'
Equity 16,933 14,622
------ ------
TOTAL
LIABILITIES
AND
STOCKHOLDERS'
EQUITY $23,006 $21,341
======= =======
MAM SOFTWARE GROUP, INC.
Condensed Consolidated Statements of Income and Comprehensive Income
(In thousands, except share and per share data)
For the Six Months
Ended
For the Three Months
Ended
December 31, December 31,
------------ ------------
2013 2012 2013 2012
---- ---- ---- ----
Revenues $7,362 $6,754 $14,923 $13,237
Cost of revenues 3,388 2,826 6,703 5,536
----- ----- ----- -----
Gross profit 3,974 3,928 8,220 7,701
----- ----- ----- -----
Operating expenses
Research and
development 913 844 1,751 1,705
Sales and marketing 1,160 821 2,313 1,633
General and
administrative 1,103 932 2,235 1,828
Depreciation and
amortization 249 284 515 574
--- --- --- ---
Total operating
expenses 3,425 2,881 6,814 5,740
----- ----- ----- -----
Operating income 549 1,047 1,406 1,961
Other income (expense)
Interest expense (6) (39) (33) (80)
Gain on settlement of
liabilities - - - 13
Gain on settlement of
derivative liabilities - - - 73
Change in fair value of
derivative liabilities - (42) - (248)
--- --- --- ----
Total other expense,
net (6) (81) (33) (242)
--- --- --- ----
Income before provision
for income taxes 543 966 1,373 1,719
Provision for income
taxes 150 182 288 311
--- --- --- ---
Net income 393 784 1,085 1,408
Foreign currency
translation income 301 1 835 296
--- --- --- ---
Total comprehensive
income $694 $785 $1,920 $1,704
==== ==== ====== ======
Earnings per share
attributed to common
stockholders:
Basic $0.03 $0.06 $0.08 $0.11
===== ===== ===== =====
Diluted $0.03 $0.06 $0.08 $0.11
===== ===== ===== =====
Weighted average shares
outstanding:
Basic 12,788,839 12,762,864 12,764,425 12,865,765
========== ========== ========== ==========
Diluted 12,870,154 12,982,406 12,846,094 13,048,538
========== ========== ========== ==========
MAM SOFTWARE GROUP, INC.
Calculation of Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization (Non-GAAP)
(unaudited, includes non-cash compensation and change in fair value of derivative liabilities.)
For the For the
Three Six Trailing Twelve
Months Months
Ended Ended Months Ended
December December
31, 31, December 31,
(in thousands) 2013 2012 2013 2012 2013
---- ---- ---- ---- ----
Net income
(GAAP) $393 $784 $1,085 $1,408 $2,690
Interest
expense 6 39 33 80 99
Taxes 150 182 288 311 700
Depreciation
and
amortization 249 284 515 574 1,090
Non-cash
equity
compensation 149 73 328 185 557
Gain on
settlement of
derivative
liabilities - - - (73) (58)
Gain on
settlement of
liabilities - - - (13) -
One time
expense - - 82 - 82 (i)
- - - - -
Change in fair
value of
derivative
liabilities - 42 - 248 23
Adjusted
EBITDA
(Non-GAAP) $947 $1,404 $2,331 $2,720 $5,183
(i) Includes one time expenses for recruiting
SOURCE MAM Software Group, Inc.
