ATLANTA, Ga., July 24, 2018 (GLOBE NEWSWIRE) -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ:MANH) today reported GAAP diluted earnings per share for the second quarter ended June 30, 2018, of $0.42 compared to $0.45 in Q2 2017, on license revenue of $13.0 million, cloud subscriptions revenue of $5.4 million and total revenue of $141.9 million. Non-GAAP adjusted diluted earnings per share for Q2 2018 was $0.47 compared to $0.50 in Q2 2017.

“Q2 was another good quarter for our company with the underlying business fundamentals strengthening,” said Manhattan Associates president and CEO Eddie Capel. “Q2 total revenue and earnings per share performance improved over Q1 and were slightly ahead of our expectations. Based on our outlook for the remainder of the year, we are raising our 2018 full-year guidance for total revenue and earnings.”

“While cautious regarding global geopolitical and economic volatility, we continue to be very bullish on the market opportunity ahead and are investing significant capital into transformative industry leading innovation. Our transition to Cloud continues as planned, and at our Momentum customer conference in May, we unveiled exciting product advancements, enabling our clients to Push Possible™ with their commerce supply chains,” added Mr. Capel.

SECOND QUARTER 2018 FINANCIAL SUMMARY:

-- We have reclassified certain line items in prior period financial statements to conform to the current period presentation in the consolidated statements of income because of our business transition to cloud subscriptions. -- GAAP diluted earnings per share was $0.42 in Q2 2018 compared to $0.45 in Q2 2017. -- Adjusted diluted earnings per share, a non-GAAP measure, was $0.47 in Q2 2018, compared to $0.50 in Q2 2017. -- Consolidated total revenue was $141.9 million in Q2 2018, compared to $154.1 million in Q2 2017. License revenue was $13.0 million in Q2 2018, compared to $20.1 million in Q2 2017. Cloud subscription revenue was $5.4 million in Q2 2018, compared to $2.4 million in Q2 2017. -- GAAP operating income was $35.7 million in Q2 2018, compared to $49.3 million in Q2 2017. -- Adjusted operating income, a non-GAAP measure, was $40.7 million in Q2 2018, compared to $55.2 million in Q2 2017. -- Cash flow from operations was $16.8 million in Q2 2018, compared to $11.3 million in Q2 2017. Days Sales Outstanding was 64 days at June 30, 2018, compared to 59 days at March 31, 2018. -- Cash and investments totaled $83.4 million at June 30, 2018, compared to $119.0 million at March 31, 2018. -- During the three months ended June 30, 2018, the Company repurchased 1,082,660 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $47.9 million. In July 2018, our Board authorized the Company to repurchase up to an aggregate of $50 million of the Company’s common stock.

SIX MONTH 2018 FINANCIAL SUMMARY:

-- We have reclassified certain line items in prior period financial statements to conform to the current period presentation in the consolidated statements of income because of our business transition to cloud subscriptions. -- GAAP diluted earnings per share for the six months ended June 30, 2018 was $0.75, compared to $0.85 for the six months ended June 30, 2017. -- Adjusted diluted earnings per share, a non-GAAP measure, was $0.84 for the six months ended June 30, 2018, compared to $0.92 for the six months ended June 30, 2017. -- Consolidated revenue for the six months ended June 30, 2018, was $272.4 million, compared to $297.6 million for the six months ended June 30, 2017. License revenue was $20.5 million for the six months ended June 30, 2018, compared to $41.3 million for the six months ended June 30, 2017. Cloud subscription revenue was $9.8 million for the six months ended June 30, 2018, compared to $3.9 million for the six months ended June 30, 2017. -- GAAP operating income was $63.5 million for the six months ended June 30, 2018, compared to $91.0 million for the six months ended June 30, 2017. -- Adjusted operating income, a non-GAAP measure, was $73.0 million for the six months ended June 30, 2018, compared to $101.5 million for the six months ended June 30, 2017. -- Cash flow from operations was $68.1 million in the six months ended June 30, 2018, compared to $72.6 million in the six months ended June 30, 2017. -- During the six months ended June 30, 2018, the Company repurchased 2,240,356 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $97.8 million.

NEW PRESENTATION OF CONSOLIDATED STATEMENTS OF INCOME

We have reclassified certain line items in prior period financial statements to conform to the current period presentation in the consolidated statements of income because of our business transition to cloud subscriptions. These reclassifications include: all revenue line items; cost of license; cost of cloud subscriptions, maintenance and services; and cost of hardware. These reclassifications did not affect total revenue, operating income or net income. For further detail, please see note 7 in the supplemental financial information accompanying this press release.

2018 GUIDANCE

Manhattan Associates provides the following updated revenue, operating margin and diluted earnings per share guidance for the full year 2018:

Guidance Range - 2018 Full Year ($'s in millions, except operating margin and EPS) $ Range % Growth Range ---------------- - ----------------- Total revenue - current guidance $ 548 $ 560 -8 % -6 % Total revenue - previous guidance $ 546 $ 558 -8 % -6 % Operating Margin: GAAP operating margin - current guidance 21.1 % 21.4 % -10.1 % -9.8 % Equity-based compensation 3.7 % 3.6 % Adjusted operating margin(1) - current guidance 24.8 % 25.0 % -9.7 % -9.5 % - ---- - - ---- - GAAP operating margin - previous guidance 20.0 % 20.4 % -11.2 % -10.8 % Equity-based compensation 4.0 % 3.9 % - ---- - - ---- - Adjusted operating margin(1) - previous guidance 24.0 % 24.3 % -10.5 % -10.2 % - ---- - - ---- - Diluted earnings per share (EPS): GAAP EPS - current guidance $ 1.32 $ 1.36 -21 % -19 % Equity-based compensation, net of tax 0.25 0.25 Adjusted EPS(1) - current guidance $ 1.57 $ 1.61 -16 % -14 % - ---- - - ---- - GAAP EPS - previous guidance $ 1.23 $ 1.27 -27 % -24 % Equity-based compensation, net of tax 0.25 0.25 - ---- - - ---- - Adjusted EPS(1) - previous guidance $ 1.48 $ 1.52 -21 % -19 % - ---- - - ---- - (1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based compensation and acquisition-related costs, and the related income tax effects of these items if applicable. -------------------------------------------------- - ---- - - ---- - ------ ------

Manhattan Associates currently intends to publish, in each quarterly earnings release, certain expectations with respect to future financial performance. Those statements, including the guidance provided above, are forward looking. Actual results may differ materially. Those statements, including the guidance provided above, do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release.

Manhattan Associates will make its earnings release and published expectations available on its website ( www.manh.com ). Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance above, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.

CONFERENCE CALL

The Company’s conference call regarding its second quarter financial results will be held today, July 24, 2018, at 4:30 p.m. Eastern Time. We invite investors to a live webcast of the conference call through the Investor Relations section of Manhattan Associates' website at www.manh.com. To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software.

Those who cannot listen to the live broadcast may access a replay shortly after the call by dialing +1.855.859.2056 in the U.S. and Canada, or +1.404.537.3406 outside the U.S., and entering the conference identification number ­­­­­­­­6059039 or via the web at www.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates’ third quarter 2018 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

The Company provides adjusted operating income and margin, adjusted income tax provision, adjusted net income, adjusted diluted earnings per share, adjusted cost of services, and adjusted cost of cloud subscriptions, maintenance and services in this press release as additional information regarding the Company’s historical and projected operating results. These measures are not in accordance with – or alternatives to – GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare the Company’s results and guidance, because the measures provide supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the three and six months ended June 30, 2018.

Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share exclude the impact of equity-based compensation, acquisition-related costs and the amortization of these costs, and a restructuring charge – all net of income tax effects, and the impact of the Tax Cuts and Jobs Act. Adjusted cost of services and adjusted cost of cloud subscriptions, maintenance and services exclude the impact of equity-based compensation. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.

ABOUT MANHATTAN ASSOCIATES

Manhattan Associates is a technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.

Manhattan Associates designs, builds and delivers leading edge cloud and on-premise solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.

This press release contains “forward-looking statements” relating to Manhattan Associates, Inc. Forward-looking statements in this press release include, without limitation, the information set forth under “2018 Guidance,” statements we make about market adoption of our cloud-based solution and other statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate,” and similar expressions. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: uncertainty about the global economy, risks related from transitioning our business from a traditional perpetual license software company (generally hosted by our customers on their own premises and equipment) to a subscription-based software-as-a service/cloud-based model, disruption in the retail sector, the possible effect of new U.S. tariffs on imports from other countries (and possible responsive tariffs on U.S. exports by other countries) on international commerce, delays in product development, competitive pressures, software errors, information security breaches and the risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (in thousands, except per share amounts) Three Months Ended Six Months Ended June June 30, 30, --------------------- --------------------- 2018 2017 2018 2017 --------- --------- --------- --------- (unaudited (unaudited (unaudited (unaudited ) ) ) ) Revenue: Software license $ 12,973 $ 20,064 $ 20,528 $ 41,341 Cloud subscriptions 5,377 2,378 9,846 3,874 Maintenance 36,993 35,959 73,390 69,335 Services 82,267 85,327 161,024 165,108 Hardware 4,261 10,413 7,652 17,972 - ------- - ------- - ------- - ------- Total revenue 141,871 154,141 272,440 297,630 Costs and expenses: Cost of license 2,096 1,438 3,404 2,790 Cost of cloud subscriptions, maintenance and services 56,985 53,109 113,471 108,008 Cost of hardware - 7,766 - 13,136 Research and development 18,176 14,102 35,235 28,327 Sales and marketing 13,809 11,732 26,693 23,521 General and administrative 12,885 11,387 25,685 23,259 Depreciation and amortization 2,235 2,326 4,437 4,588 Restructuring charge - 3,022 - 3,022 - ------- - ------- - ------- - ------- Total costs and expenses 106,186 104,882 208,925 206,651 - ------- - ------- - ------- - ------- Operating income 35,685 49,259 63,515 90,979 Other income (loss), net 986 (68 ) 1,707 (439 ) - ------- - ------- - ------- - ------- Income before income taxes 36,671 49,191 65,222 90,540 Income tax provision 9,003 18,047 14,902 31,172 - ------- - ------- - ------- - ------- Net income $ 27,668 $ 31,144 $ 50,320 $ 59,368 - ------- - ------- - ------- - ------- Basic earnings per share $ 0.42 $ 0.45 $ 0.75 $ 0.85 Diluted earnings per share $ 0.42 $ 0.45 $ 0.75 $ 0.85 Weighted average number of shares: Basic 66,429 69,227 66,987 69,610 Diluted 66,535 69,421 67,132 69,844

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Reconciliation of Selected GAAP to Non-GAAP Measures (in thousands, except per share amounts) Three Months Ended Six Months Ended June June 30, 30, -------------------- - --------------------- - 2018 2017 2018 2017 -------- - -------- - -------- - --------- - Operating income $ 35,685 $ 49,259 $ 63,515 $ 90,979 Equity-based compensation (a) 4,927 2,796 9,270 7,268 Purchase amortization (c) 108 108 215 215 Restructuring charge (d) - 3,022 - 3,022 - ------ - - ------ - - ------ - - ------- - Adjusted operating income (Non-GAAP) $ 40,720 $ 55,185 $ 73,000 $ 101,484 - ------ - - ------ - - ------ - - ------- - Income tax provision $ 9,003 $ 18,047 $ 14,902 $ 31,172 Equity-based compensation (a) 1,207 1,021 2,271 2,653 Tax benefit of stock awards vested (b) (19 ) (93 ) 730 1,875 Purchase amortization (c) 26 40 53 79 Restructuring charge (d) - 1,103 - 1,103 U.S. Tax Cuts and Jobs Act impact (e) - - 348 - - ------ - - ------ - - ------ - - ------- - Adjusted income tax provision (Non-GAAP) $ 10,217 $ 20,118 $ 18,304 $ 36,882 - ------ - - ------ - - ------ - - ------- - Net income $ 27,668 $ 31,144 $ 50,320 $ 59,368 Equity-based compensation (a) 3,720 1,775 6,999 4,615 Tax benefit of stock awards vested (b) 19 93 (730 ) (1,875 ) Purchase amortization (c) 82 68 162 136 Restructuring charge (d) - 1,919 - 1,919 U.S. Tax Cuts and Jobs Act impact (e) - - (348 ) - - ------ - - ------ - - ------ - - ------- - Adjusted net income (Non-GAAP) $ 31,489 $ 34,999 $ 56,403 $ 64,163 - ------ - - ------ - - ------ - - ------- - - Diluted EPS $ 0.42 $ 0.45 $ 0.75 $ 0.85 Equity-based compensation (a) 0.06 0.03 0.10 0.07 Tax benefit of stock awards vested (b) - - (0.01 ) (0.03 ) Purchase amortization (c) - - - - Restructuring charge (d) - 0.03 - 0.03 Adjusted diluted EPS (Non-GAAP) $ 0.47 $ 0.50 $ 0.84 $ 0.92 - ------ - - ------ - - ------ - - ------- - Fully diluted shares 66,535 69,421 67,132 69,844

(a) Adjusted results exclude all equity-based compensation, to facilitate comparison with our peers and for the other reasons explained in our Current Report on Form 8-K filed with the SEC on the date hereof. Equity-based compensation is included in the following GAAP operating expense lines for the three and six months ended June 30, 2018 and 2017:

Three Months Six Months Ended Ended June 30, June 30, ----------------- ----------------- 2018 2017 2018 2017 ------- ------- ------- ------- Cost of services $ 1,556 $ 580 $ 2,673 $ 1,721 Research and development 1,140 434 2,061 1,154 Sales and marketing 347 393 905 1,060 General and administrative 1,884 1,389 3,631 3,333 - ----- - ----- - ----- - ----- Total equity-based compensation $ 4,927 $ 2,796 $ 9,270 $ 7,268 - ----- - ----- - ----- - -----

(b) Adjustments represent the excess tax benefits and tax deficiencies of the stock awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible for an award of equity instruments on our tax return is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we excluded equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also excluded the related tax benefit (expense) generated upon their vesting.

(c) Adjustments represent purchased intangibles amortization from a prior acquisition. We exclude that amortization from adjusted results to facilitate comparison with our peers, to facilitate comparisons of the results of our core operations from period to period and for the other reasons explained in our Current Report on Form 8-K filed with the SEC.

(d) In May 2017, we eliminated about 100 positions due to the headwinds in the retail sector and to align our services capacity with demand. That action did not impair or alter our strategic investment plans in innovation and sales and marketing to increase market share and extend our competitive advantage. As a result of that initiative, we recorded a charge of approximately $3.0 million in the second quarter of 2017. The charge primarily consisted of employee severance and employee transition and outplacement costs. We do not believe that the charge was a cost resulting from normal operating activities. Consequently, we excluded that charge from adjusted non-GAAP results.

(e) In the fourth quarter of 2017, we recorded a provisional net one-time tax of $2.8 million because of the enactment of the Tax Cuts and Jobs Act (the Act) in December 2017. We calculated that amount based on a reasonable estimate of the income tax effects, primarily from a tax on accumulated foreign earnings and the remeasurement of deferred tax assets. We adjusted our provisional estimate by $0.3 million during the six months ended June 30, 2018.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands, except share and per share data) June 30, December 2018 31, 2017 --------- --------- (unaudited ) ASSETS Current assets: Cash and cash equivalents $ 79,034 $ 125,522 Short-term investments 4,392 - Accounts receivable, net of allowance of $2,753 and $2,692, respectively 99,112 92,231 Prepaid expenses and other current assets 22,192 10,320 - ------- - ------- Total current assets 204,730 228,073 Property and equipment, net 15,323 15,493 Goodwill, net 62,244 62,248 Deferred income taxes 606 1,877 Other assets 9,592 7,304 - ------- - ------- Total assets $ 292,495 $ 314,995 - ------- - ------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 21,192 $ 14,028 Accrued compensation and benefits 25,393 15,826 Accrued and other liabilities 11,029 12,105 Deferred revenue 90,413 75,068 Income taxes payable - 7,228 - ------- - ------- Total current liabilities 148,027 124,255 Other non-current liabilities 15,226 15,784 Shareholders' equity: Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or - - outstanding in 2018 and 2017 Common stock, $0.01 par value; 200,000,000 shares authorized; 65,759,735 and 67,776,138 shares issued and outstanding at June 30, 2018 and December 31, 2017, 658 678 respectively Retained earnings 143,994 186,117 Accumulated other comprehensive loss (15,410 ) (11,839 ) - ------- - ------- Total shareholders' equity 129,242 174,956 - ------- - ------- Total liabilities and shareholders' equity $ 292,495 $ 314,995 - ------- - -------

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (in thousands) Six Months Ended June 30, ----------------------- 2018 2017 ---------- --------- (unaudited) (unaudited ) Operating activities: Net income $ 50,320 $ 59,368 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,437 4,588 Equity-based compensation 9,270 7,268 (Gain) loss on disposal of equipment (37 ) 9 Deferred income taxes 803 1,966 Unrealized foreign currency (gain) loss (1,359 ) 42 Changes in operating assets and liabilities: Accounts receivable, net (7,913 ) 5,243 Other assets (5,217 ) (2,985 ) Accounts payable, accrued and other liabilities 15,846 (2,117 ) Income taxes (14,300 ) (9,336 ) Deferred revenue 16,244 8,549 - -------- - ------- Net cash provided by operating activities 68,094 72,595 - -------- - ------- Investing activities: Purchase of property and equipment (4,055 ) (2,703 ) Net purchases of investments (5,196 ) (9,457 ) Net cash used in investing activities (9,251 ) (12,160 ) - -------- - ------- Financing activities: Purchase of common stock (103,714 ) (81,620 ) Net cash used in financing activities (103,714 ) (81,620 ) - -------- - ------- Foreign currency impact on cash (1,617 ) 2,274 - -------- - ------- Net change in cash and cash equivalents (46,488 ) (18,911 ) Cash and cash equivalents at beginning of period 125,522 95,615 - -------- - ------- Cash and cash equivalents at end of period $ 79,034 $ 76,704 - -------- - -------

MANHATTAN ASSOCIATES, INC.SUPPLEMENTAL INFORMATION

1. GAAP and Adjusted earnings per share by quarter are as follows:

2017 2018 ----------------------------------------------------- - ------------------------------- - 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full 1st Qtr 2nd Qtr YTD Year -------- - -------- -------- -------- -------- - -------- - -------- -------- - GAAP Diluted EPS $ 0.40 $ 0.45 $ 0.47 $ 0.36 $ 1.68 $ 0.33 $ 0.42 $ 0.75 Adjustments to GAAP: Equity-based 0.04 0.03 0.03 0.05 0.15 0.05 0.06 0.10 compensation Tax benefit of (0.03 ) - - - (0.03 ) (0.01 ) - (0.01 ) stock awards vested Purchase - - - - - - - - amortization Restructuring - 0.03 - - 0.03 - - - charge U.S. Tax Cuts and - - - 0.04 0.04 (0.01 ) - - Jobs Act impact - ------ - - ------ - ------ - ------ - ------ - - ------ - - ------ - ------ - Adjusted Diluted $ 0.42 $ 0.50 $ 0.51 $ 0.45 $ 1.87 $ 0.37 $ 0.47 $ 0.84 EPS - ------ - - ------ - ------ - ------ - ------ - - ------ - - ------ - ------ - Fully Diluted 70,247 69,421 69,135 68,791 69,424 67,736 66,535 67,132 Shares

2. Revenues and operating income by reportable segment are as follows (in thousands):

2017 2018 ----------------------------------------------------------- --------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD --------- --------- --------- - --------- - --------- --------- --------- --------- Revenue: Americas $ 113,115 $ 123,658 $ 124,833 $ 115,543 $ 477,149 $ 104,615 $ 112,945 $ 217,560 EMEA 23,360 22,028 18,453 21,508 85,349 19,164 21,356 40,520 APAC 7,014 8,455 9,597 7,035 32,101 6,790 7,570 14,360 - ------- - ------- - ------- - - ------- - - ------- - ------- - ------- - ------- $ 143,489 $ 154,141 $ 152,883 $ 144,086 $ 594,599 $ 130,569 $ 141,871 $ 272,440 - ------- - ------- - ------- - - ------- - - ------- - ------- - ------- - ------- GAAP Operating Income: Americas $ 28,713 $ 35,717 $ 39,295 $ 32,968 $ 136,693 $ 20,318 $ 26,589 $ 46,907 EMEA 10,754 9,995 7,128 7,952 35,829 5,475 6,252 11,727 APAC 2,253 3,547 4,673 2,650 13,123 2,037 2,844 4,881 - ------- - ------- - ------- - - ------- - - ------- - ------- - ------- - ------- $ 41,720 $ 49,259 $ 51,096 $ 43,570 $ 185,645 $ 27,830 $ 35,685 $ 63,515 - ------- - ------- - ------- - - ------- - - ------- - ------- - ------- - ------- Adjustments (pre-tax): Americas: Equity-based $ 4,472 $ 2,796 $ 3,773 $ 5,188 $ 16,229 $ 4,343 $ 4,927 $ 9,270 compensation Purchase 107 108 108 107 430 107 108 215 amortization Restructuring - 2,908 (77 ) (18 ) 2,813 - - - charge - ------- - ------- - ------- - - ------- - - ------- - ------- - ------- - ------- $ 4,579 $ 5,812 $ 3,804 $ 5,277 $ 19,472 $ 4,450 $ 5,035 $ 9,485 - ------- - ------- - ------- - - ------- - - ------- - ------- - ------- - ------- EMEA: Restructuring - 114 - (6 ) 108 - - - charge Adjusted non-GAAP Operating Income: Americas $ 33,292 $ 41,529 $ 43,099 $ 38,245 $ 156,165 $ 24,768 $ 31,624 $ 56,392 EMEA 10,754 10,109 7,128 7,946 35,937 5,475 6,252 11,727 APAC 2,253 3,547 4,673 2,650 13,123 2,037 2,844 4,881 - ------- - ------- - ------- - - ------- - - ------- - ------- - ------- - ------- $ 46,299 $ 55,185 $ 54,900 $ 48,841 $ 205,225 $ 32,280 $ 40,720 $ 73,000 - ------- - ------- - ------- - - ------- - - ------- - ------- - ------- - -------

3. Impact of Currency Fluctuation

The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):

2017 2018 ----------------------------------------------------- - --------------------------- 1st Qtr 2nd Qtr 3rd 4th Qtr Full 1st Qtr 2nd Qtr YTD Qtr Year -------- - -------- - ------ - ------- - -------- - ------- ------- ------- Revenue $ (1,547 ) $ (1,219 ) $ 536 $ 1,820 $ (410 ) $ 2,781 $ 1,699 $ 4,480 Costs and expenses (789 ) (396 ) 723 1,485 1,023 2,328 831 3,159 - ------ - - ------ - - ---- - - ----- - - ------ - - ----- - ----- - ----- Operating income (758 ) (823 ) (187 ) 335 (1,433 ) 453 868 1,321 Foreign currency (losses) (646 ) (348 ) (81 ) (771 ) (1,846 ) 366 705 1,071 gains in other income - ------ - - ------ - - ---- - - ----- - - ------ - - ----- - ----- - ----- $ (1,404 ) $ (1,171 ) $ (268 ) $ (436 ) $ (3,279 ) $ 819 $ 1,573 $ 2,392 - ------ - - ------ - - ---- - - ----- - - ------ - - ----- - ----- - -----

Manhattan Associates has a large research and development center in Bangalore, India. The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands):

2017 2018 ------------------------------------------------ - 1st 2nd 3rd 4th Full 1st 2nd Qtr YTD Qtr Qtr Qtr Qtr Year Qtr ------ - ------ - ------ - ------ - -------- - ------ - ------- ------- - Operating income $ (70 ) $ (326 ) $ (338 ) $ (345 ) $ (1,079 ) $ (360 ) $ 359 $ (1 ) Foreign currency (losses) gains in (320 ) (190 ) 71 (43 ) (482 ) 210 1,120 1,330 other income - ---- - - ---- - - ---- - - ---- - - ------ - - ---- - - ----- - ----- - Total impact of changes in the $ (390 ) $ (516 ) $ (267 ) $ (388 ) $ (1,561 ) $ (150 ) $ 1,479 $ 1,329 Indian Rupee - ---- - - ---- - - ---- - - ---- - - ------ - - ---- - - ----- - ----- -

4. Other income includes the following components (in thousands):

2017 2018 ----------------------------------------------- - ----------------------- 1st 2nd 3rd 4th Full 1st 2nd YTD Qtr Qtr Qtr Qtr Year Qtr Qtr ------ - ------ - ----- - ------ - -------- - ----- ----- ------- Interest income $ 293 $ 264 $ 314 $ 303 $ 1,174 $ 347 $ 241 $ 588 Foreign currency (losses) gains (646 ) (348 ) (81 ) (771 ) (1,846 ) 366 705 1,071 Other non-operating (18 ) 16 (26 ) (112 ) (140 ) 8 40 48 (expense) income - ---- - - ---- - - --- - - ---- - - ------ - - --- - --- - ----- Total other (loss) income $ (371 ) $ (68 ) $ 207 $ (580 ) $ (812 ) $ 721 $ 986 $ 1,707 - ---- - - ---- - - --- - - ---- - - ------ - - --- - --- - -----

5. Capital expenditures are as follows (in thousands):

2017 2018 --------------------------------------------- --------------------------- 1st 2nd Qtr 3rd Qtr 4th Qtr Full 1st Qtr 2nd Qtr YTD Qtr Year ----- ------- ------- ------- ------- ------- ------- ------- Capital expenditures $ 789 $ 1,914 $ 1,194 $ 2,302 $ 6,199 $ 2,174 $ 1,881 $ 4,055 - --- - ----- - ----- - ----- - ----- - ----- - ----- - -----

6. Stock Repurchase Activity (in thousands):

2017 2018 ------------------------------------------------- ------------------------------- 1st Qtr 2nd Qtr 3rd 4th Qtr Full Year 1st Qtr 2nd Qtr YTD Qtr -------- -------- ---- -------- --------- -------- -------- --------- Shares purchased under publicly announced 1,004 535 - 1,156 2,695 1,158 1,082 2,240 buy-back program Shares withheld for taxes due upon vesting of 131 1 2 1 135 111 1 112 restricted stock - ------ - ------ - -- - ------ - ------- - ------ - ------ - ------- Total shares purchased 1,135 536 2 1,157 2,830 1,269 1,083 2,352 - ------ - ------ - -- - ------ - ------- - ------ - ------ - ------- Total cash paid for shares purchased under $ 49,978 $ 24,974 $ - $ 49,953 $ 124,905 $ 49,972 $ 47,876 $ 97,848 publicly announced buy-back program Total cash paid for shares withheld for taxes 6,641 27 80 54 6,802 5,843 23 5,866 due upon vesting of restricted stock - ------ - ------ - -- - ------ - ------- - ------ - ------ - ------- Total cash paid for $ 56,619 $ 25,001 $ 80 $ 50,007 $ 131,707 $ 55,815 $ 47,899 $ 103,714 shares repurchased - ------ - ------ - -- - ------ - ------- - ------ - ------ - -------

7. Because of our business transition to Cloud Subscriptions, we have revised our presentations of revenue and related cost line items in our consolidated statements of income. We have reclassified certain line items in prior period financial statements to conform to the current period presentation in the consolidated statements of income. These reclassifications include: all revenue line items; cost of license; cost of cloud subscriptions, maintenance and services; and cost of hardware. These reclassifications did not affect total revenues, operating income or net income. The following table reflects the comparison between the former and new presentation (in thousands):

2016 2017 2018 --------- --------------------------------------------------------- --------------------------------- Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD --------- --------- --------- --------- --------- --------- --------- --------- --------- Former Presentation: Software $ 84,996 $ 22,773 $ 22,442 $ 18,794 $ 17,900 $ 81,909 $ 12,024 $ 18,350 $ 30,374 license Services 467,286 108,833 116,828 115,555 110,394 451,610 111,701 118,504 230,205 Hardware and 52,275 11,883 14,871 18,534 15,792 61,080 6,844 5,017 11,861 other - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- $ 604,557 $ 143,489 $ 154,141 $ 152,883 $ 144,086 $ 594,599 $ 130,569 $ 141,871 $ 272,440 - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- Cost of $ 10,820 $ 2,240 $ 2,355 $ 2,830 $ 3,169 $ 10,594 $ 3,982 $ 5,534 $ 9,516 license Cost of 197,475 49,743 47,751 44,750 43,053 185,297 50,348 49,475 99,823 services Cost of hardware and 41,584 9,638 12,207 15,492 12,505 49,842 3,464 4,072 7,536 other - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- $ 249,879 $ 61,621 $ 62,313 $ 63,072 $ 58,727 $ 245,733 $ 57,794 $ 59,081 $ 116,875 - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- New Presentation: Software $ 79,213 $ 21,277 $ 20,064 $ 16,260 $ 14,712 $ 72,313 $ 7,555 $ 12,973 $ 20,528 license Cloud subscriptions 5,783 1,496 2,378 2,534 3,188 9,596 4,469 5,377 9,846 (a) Maintenance 133,848 33,376 35,959 36,338 37,325 142,998 36,397 36,993 73,390 Services 351,785 79,781 85,327 84,211 77,183 326,502 78,757 82,267 161,024 Hardware 33,928 7,559 10,413 13,540 11,678 43,190 3,391 4,261 7,652 - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- $ 604,557 $ 143,489 $ 154,141 $ 152,883 $ 144,086 $ 594,599 $ 130,569 $ 141,871 $ 272,440 - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- Cost of $ 6,818 $ 1,352 $ 1,438 $ 1,316 $ 1,377 $ 5,483 $ 1,308 $ 2,096 $ 3,404 license Cost of cloud subscriptions, maintenance 219,635 54,899 53,109 51,103 48,934 208,045 56,486 56,985 113,471 and services (b) Cost of 23,426 5,370 7,766 10,653 8,416 32,205 - - - hardware - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- $ 249,879 $ 61,621 $ 62,313 $ 63,072 $ 58,727 $ 245,733 $ 57,794 $ 59,081 $ 116,875 - ------- - ------- - ------- - ------- - ------- - ------- - ------- - ------- - -------

Reconciliation of GAAP to Non-GAAP Measures: 2016 2017 2018 --------- - --------------------------------------------------------- - --------------------------------- - Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD --------- - -------- - -------- - -------- - -------- - --------- - -------- - -------- - --------- - Former Presentation: Cost of $ 197,475 $ 49,743 $ 47,751 $ 44,750 $ 43,053 $ 185,297 $ 50,348 $ 49,475 $ 99,823 services Equity-based compensation (3,794 ) (1,141 ) (580 ) (875 ) (1,398 ) (3,994 ) (1,117 ) (1,556 ) (2,673 ) (c) - ------- - - ------ - - ------ - - ------ - - ------ - - ------- - - ------ - - ------ - - ------- - Adjusted Cost $ 193,681 $ 48,602 $ 47,171 $ 43,875 $ 41,655 $ 181,303 $ 49,231 $ 47,919 $ 97,150 of services New Presentation: Cost of cloud subscriptions, maintenance $ 219,635 $ 54,899 $ 53,109 $ 51,103 $ 48,934 $ 208,045 $ 56,486 $ 56,985 $ 113,471 and services (b) Equity-based compensation (3,794 ) (1,141 ) (580 ) (875 ) (1,398 ) (3,994 ) (1,117 ) (1,556 ) (2,673 ) (c) - ------- - - ------ - - ------ - - ------ - - ------ - - ------- - - ------ - - ------ - - ------- - Adjusted Cost of cloud subscriptions, $ 215,841 $ 53,758 $ 52,529 $ 50,228 $ 47,536 $ 204,051 $ 55,369 $ 55,429 $ 110,798 maintenance and services (a) Cloud subscriptions includes software as a service (“SaaS”) and arrangements that provide customers the right to use our software within a cloud-based environment that we manage where the customer does not have the right to take possession of the software without significant penalties. (b) Cost of cloud subscriptions, maintenance and services consists primarily of salaries and other personnel-related expenses of employees dedicated to cloud subscriptions; maintenance services; and professional and technical services as well as hosting fees. (c) Adjusted results exclude all equity-based compensation to facilitate comparison with our competitors and peers and for the other reasons explained in our Current Report on Form 8-K filed with the SEC on the date of this release.

8. We adopted the new revenue recognition standard, FASB ASC Topic 606, Revenue from Contracts with Customers, in the first quarter of 2018. The new standard provides accounting guidance for all revenue arising from contracts with customers and affects substantially all entities. We adopted the standard using the modified retrospective method with the cumulative effect of initially adopting the standard recorded as an adjustment to retained earnings as of January 1, 2018. We recorded historical hardware sales prior to the adoption of ASC606 on a gross basis, as we were the principal in the transaction in accordance with ASC 605-45. Under the new standard, we are an agent in the transaction as we do not physically control the hardware we sell. Accordingly, we recognize our hardware revenue net of related cost, which reduces both hardware revenue and cost of sales as compared to our accounting prior to 2018. We recognize and present our hardware revenue net of related cost under the new standard prospectively. For comparison purposes only, had we implemented ASC 606 using the full retrospective method, we would have presented hardware revenue net of expense in our 2017 quarterly financial results below:

2016 2017 2018 --------- - ---------------------------------------------------------- - ---------------------------------- - Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr YTD --------- - -------- - -------- - --------- - -------- - --------- - -------- - --------- - --------- - Presentation of Hardware Revenue - Pre ASC 606 adoption: Revenue Hardware $ 33,928 $ 7,559 $ 10,413 $ 13,540 $ 11,678 $ 43,190 $ 11,224 $ 16,252 $ 27,476 Revenue Cost of Revenue Cost of (23,426 ) (5,370 ) (7,766 ) (10,653 ) (8,416 ) (32,205 ) (7,833 ) (11,991 ) (19,824 ) Hardware - ------- - - ------ - - ------ - - ------- - - ------ - - ------- - - ------ - - ------- - - ------- - Hardware Revenue, $ 10,502 $ 2,189 $ 2,647 $ 2,887 $ 3,262 $ 10,985 $ 3,391 $ 4,261 $ 7,652 net - ------- - - ------ - - ------ - - ------- - - ------ - - ------- - - ------ - - ------- - - ------- - Proforma Presentation of Hardware Revenue - Post ASC 606 Using Full Retrospective Method: Hardware $ 10,502 $ 2,189 $ 2,647 $ 2,887 $ 3,262 $ 10,985 $ 3,391 $ 4,261 $ 7,652 Revenue

Contact: Dennis Story Rick Fernandez Chief Financial Officer Senior Manager, Corporate Communications Manhattan Associates, Inc. Manhattan Associates, Inc. 770-955-7070 678-597-6988 dstory@manh.com rfernandez@manh.com