MICROS SYSTEMS, INC. COLUMBIA, Md., Aug. 21, 2014 /PRNewswire/ -- MICROS Systems, Inc. (Nasdaq: MCRS), a leading supplier of information systems to the food & beverage, hotel and retail industries, today announced the results for its fiscal 2014 fourth quarter and year ending June 30, 2014.
FINANCIAL HIGHLIGHTS
-- Revenue for the quarter was $396.1 million, an increase of $67.5
million, or 20.6%, versus the year ago period.
-- Revenue for the fiscal year was $1.405 billion, an increase of $137.3
million, or 10.8%, versus the year ago period.
-- GAAP net income for the quarter was $56.0 million, an increase of $14.0
million, or 33.4%, versus the year ago period.
-- GAAP net income for the fiscal year was $182.0 million, an increase of
$10.6 million, or 6.2%, versus the year ago period.
-- GAAP diluted earnings per share (EPS) for the quarter was $0.74 per
share, an increase of $0.21, or 39.6%, versus the year ago period.
-- GAAP diluted EPS for the fiscal year was $2.37, an increase of $0.25, or
11.8%, versus the year ago period.
-- Non-GAAP financial results, excluding the effect of charges for stock
options, Oracle transaction related expenses, a litigation charge and
accrued interest, amortization of Torex intangibles, restructuring of
Torex, and gain on the sale and settlement of auction rate securities,
are as follows:
-- Non-GAAP net income for the quarter was $63.5 million, an increase
of $14.6 million, or 29.9%, versus the year ago period.
-- Non-GAAP net income for the fiscal year was $205.3 million, an
increase of $13.4 million, or 7.0%, versus the year ago period.
-- Non-GAAP diluted EPS for the quarter was $0.84, an increase of
$0.22, or 35.5%, versus the year ago period.
-- Non-GAAP diluted EPS for the fiscal year was $2.67, an increase of
$0.29, or 12.2%, versus the year ago period.
MICROS's quarterly and fiscal year revenue, net income (GAAP and Non-GAAP) and EPS (GAAP and Non-GAAP) were Company records.
MICROS will not be hosting a conference call in conjunction with these results. For more information, or to access the financial results, please visit www.micros.com/InvestorRelations/
MICROS's stock is traded through NASDAQ under the symbol MCRS. Some of the statements contained herein not based on historic facts are forward-looking statements that involve risks and uncertainties MICROS is subject to, among others, the following uncertainties and risks: product demand and market acceptance; impact of competitive products and pricing on margins; product development delays and technological difficulties; controlling expenses as MICROS continues to expand; the ability to obtain on acceptable terms the right to incorporate in MICROS's products and services technology patented by others; the risk that there are actual or perceived security vulnerabilities in MICROS's products; adverse results in legal disputes resulting in liabilities that exceed reserves; unanticipated tax liabilities; the effects of terrorist activity and armed conflict; the effects of major environmental disasters; weakening in general economic conditions that adversely affect demand for computer hardware or software; and currency fluctuations.
For further information regarding risks and uncertainties associated with MICROS's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business and Investment Risks" sections of MICROS's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting MICROS's investor relations department at 443-285-8059 or at MICROS's website at http://www.micros.com/InvestorRelations/
Contact: Peter J. Rogers, Jr.
Executive Vice President, Investor Relations
443-285-8059
progers@micros.com
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)
Three Months Ended Fiscal Year Ended
June 30, June 30,
-------- --------
2014 2013 2014 2013
---- ---- ---- ----
Revenue:
Hardware $103,271 $74,125 $319,520 $269,651
Software 48,155 36,688 166,516 143,034
Service 244,719 217,796 919,361 855,400
-------
Total revenue 396,145 328,609 1,405,397 1,268,085
------- ------- --------- ---------
Cost of sales:
Hardware 64,957 47,382 204,351 175,248
Software 5,233 5,743 24,752 22,178
Service 115,930 102,365 439,816 406,429
Stock option expense 108 94 374 338
Total cost of sales 186,228 155,584 669,293 604,193
------- ------- ------- -------
Gross margin 209,917 173,025 736,104 663,892
Selling, general and administrative expenses 96,582 86,182 347,411 317,035
Research and development expenses 20,712 19,101 79,997 70,962
Depreciation and amortization 5,026 4,439 18,685 16,770
Stock option expense 5,554 4,742 21,683 20,764
Oracle transaction related expenses 2,050 - 2,050 -
Torex amortization expense 809 1,386 3,401 5,803
Torex restructuring charge 1,251 3,095 1,467 5,548
Litigation charge 0 0 2,800 0
Total operating expenses 131,984 118,945 477,494 436,882
------- ------- ------- -------
Income from operations 77,933 54,080 258,610 227,010
Non-operating income (expense):
Interest income, net 957 1,034 3,501 4,258
Interest expense - litigation charge - - (900) 0
Gain on settlement/sale - auction rate securities 0 0 338 3,494
Other non-operating income (expense), net 373 (637) (173) (957)
---
Total non-operating income , net 1,330 397 2,766 6,795
----- --- ----- -----
Income before taxes 79,263 54,477 261,376 233,805
Income tax provision 23,116 12,332 79,197 61,958
------ ------ ------ ------
Net income 56,147 42,145 182,179 171,847
Less: Net income attributable to noncontrolling interest (113) (140) (165) (429)
---- ---- ---- ----
Net Income attributable to MICROS Systems, Inc. (GAAP) $56,034 $42,005 $182,014 $171,418
======= ======= ======== ========
Net Income per diluted common share attributable to $0.74 $0.53 $2.37 $2.12
MICROS Systems, Inc.
===
Weighted-average number of shares outstanding - diluted 75,986 79,192 76,803 80,772
====== ====== ====== ======
Reconciliation of GAAP Net Income and EPS attributable to MICROS Systems, Inc. to
Non-GAAP Net Income and EPS attributable to MICROS Systems, Inc.
----------------------------------------------------------------
Net Income attributable to MICROS Systems, Inc. $56,034 $42,005 $182,014 $171,418
Add back:
Stock option expense
Selling, general and administrative expenses 5,095 4,358 19,652 19,124
Research and development expenses 459 384 2,031 1,640
Cost of sales 108 94 374 338
---
5,662 4,836 22,057 21,102
Oracle transaction related expenses 2,050 - 2,050 -
Litigation charge, including accrued interest expense - - 3,700 0
Torex amortization expense 809 1,386 3,401 5,803
Torex restructuring charge 1,251 3,095 1,467 5,548
Gain on settlement/sale - auction rate securities 0 0 (338) (3,494)
Total add back 9,772 9,317 32,337 28,959
-----
Subtract tax effect on:
Oracle transaction related expenses 266 - 266 -
Stock option expense 1,697 1,495 6,912 6,721
Litigation charge, including accrued interest expense - - 1,410 0
Torex amortization expense 23 47 90 224
Torex restructuring charge 297 871 347 1,512
---
Non-GAAP Net Income attributable to MICROS Systems, Inc. $63,523 $48,909 $205,326 $191,920
======= ======= ======== ========
Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc. $0.84 $0.62 $2.67 $2.38
===== ===== ===== =====
We believe the inclusion of the above non-GAAP measure will be useful to investors because it will enhance the comparability of our
current period results to prior periods' results without comparable charges. We also believe inclusion of this measure will enhance
comparability of our results to results of our competitors and to the analysts' forecasts because the analysts typically forecast
excluding the effect of share-based payment charge and above one time charges, the non-GAAP measure. In addition, our
management uses this measure to evaluate our operating performance and compare our results to our competitors. Management also
uses this measure as a metric to measure performance under our executive compensation program.
The Company notes that non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles.
Instead, they are based on subjective determinations by management designed to supplement our GAAP financial measures. They are
subject to a number of important limitations and should be considered only in conjunction with our consolidated financial statements
prepared in accordance with GAAP. Among the limitations on the use of the non-GAAP measure are the following:
- The exclusion of non-GAAP items can have a significant impact on reported GAAP net income and diluted net income per share.
- Other companies may calculate non-GAAP net income and non-GAAP net income per share differently than MICROS does, limiting
the usefulness of those measures for comparative purposes.
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - in thousands)
June 30, June 30,
2014 2013
---- ----
ASSETS
Current assets:
Cash and cash equivalents and
short-term investments $699,808 $634,069
Accounts receivable, net 287,616 228,455
Inventory 57,583 49,273
Income taxes receivable 1,619 12,771
Deferred income taxes 13,715 15,022
Prepaid expenses and other
current assets 46,129 44,648
------ ------
Total current assets 1,106,470 984,238
Property, plant and equipment,
net 57,966 44,127
Deferred income taxes, non-
current 44,661 50,186
Goodwill 458,820 432,950
Intangible assets, net 35,140 37,754
Purchased and internally
developed software costs, net 40,669 32,543
Other assets 8,918 7,240
----- -----
Total Assets $1,752,644 $1,589,038
========== ==========
LIABILITIES AND EQUITY
Current liabilities:
Bank lines of credit $ - $1,757
Accounts payable 78,231 73,099
Accrued expenses and other
current liabilities 180,973 155,491
Income taxes payable 8,198 11,002
Deferred revenue 193,897 177,236
------- -------
Total current liabilities 461,299 418,585
Income taxes payable, non-
current 45,429 35,019
Deferred income taxes, non-
current 543 1,157
Other non-current liabilities 15,915 16,007
------ ------
Total liabilities 523,186 470,768
Commitments and contingencies
Equity:
MICROS Systems, Inc.
stockholders' equity:
Common stock 1,871 1,918
Retained earnings 1,203,030 1,136,763
Accumulated other
comprehensive income (loss) 21,298 (23,625)
------ -------
Total MICROS Systems, Inc.
stockholders' equity 1,226,199 1,115,056
Noncontrolling interest 3,259 3,214
----- -----
Total Equity 1,229,458 1,118,270
--------- ---------
Total Liabilities and Equity $1,752,644 $1,589,038
========== ==========
MICROS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - in thousands)
Fiscal Year Ended
June 30,
--------
2014 2013
---- ----
Cash flows from operating activities:
Net income $182,179 $171,847
Adjustments to reconcile net income to net cash provided by
operating activities:
22,086 22,573
Depreciation and amortization
22,057 21,102
Share-based compensation
6,483 5,208
Amortization of capitalized software
1,540 3,563
Provision for losses on accounts receivable
- -
Litigation reserve, including interest expense
- (4,094)
Gain on sales of auction rate securities
- 600
Other-than-temporary impairment losses on investments, net
7,310 (2,702)
Provision for (benefit from) deferred income taxes
28 -
Net (gain) loss on disposal of property, plant and equipment
106 -
Other
Changes in operating assets and liabilities (net of impact of
acquisitions):
(53,237) 2,430
(Increase) decrease in accounts receivable
(6,982) (5,302)
Increase in inventory
1,191 (7,833)
Decrease (increase) in prepaid expenses and other assets
3,198 3,163
Increase in accounts payable
24,061 (13,682)
Increase (decrease) in accrued expenses and other current
liabilities
17,951 (2,587)
Increase (decrease) in income taxes assets and liabilities
11,490 9,239
Increase in deferred revenue
Net cash flows provided by operating activities 239,461 203,525
--------------
Cash flows from investing activities:
Proceeds from maturities of investments 187,636 56,620
Proceeds from sales of auction rate securities - 42,119
Purchases of investments (110,984) (186,371)
Purchases of property, plant and equipment (31,627) (23,282)
Internally developed and purchased software costs (12,448) (4,290)
Other (1,415) 153
Net cash flows provided by (used in) investing activities 31,162 (115,051)
--------------
Cash flows from financing activities:
Repurchases of common stock (215,721) (176,603)
Proceeds from stock option exercises 74,026 9,056
Proceeds from advance on line of credit 539 4,014
Realized tax benefits from stock option exercises 3,763 3,323
Principal payments on line of credit (1,893) (2,061)
Cash paid for acquisition of non-controlling interest - (846)
Other (189) 9
Net cash flows used in financing activities (139,475) (163,108)
--------------
Effect of exchange rate changes on cash and cash equivalents 9,200 (2,129)
----- ------
Net increase (decrease) in cash and cash equivalents 140,348 (76,763)
Cash and cash equivalents at beginning of year 486,023 562,786
Cash and cash equivalents at end of year $626,371 $486,023
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SOURCE MICROS Systems, Inc.
