Net income up 40.0 percent as revenues rise
17.6 percent
Tyler Technologies, Inc. (NYSE: TYL) today announced financial
results for the first quarter ended March 31, 2014.
First Quarter Financial Highlights:
- Total revenue was $112.6 million in the
first quarter of 2014, up 17.6 percent from $95.8 million in the
first quarter of 2013.
- Recurring software revenue from
maintenance and subscriptions was $70.7 million for the quarter, an
increase of 18.9 percent compared to the first quarter of 2013, and
comprised 62.8 percent of first quarter 2014 revenue.
- Royalty revenue from Microsoft
Dynamics® AX, which is included in software licenses and royalties,
was $659,000 compared to $891,000 for the first quarter of
2013.
- Operating income for the quarter was
$19.9 million, an increase of 37.3 percent from the first quarter
of 2013.
- Net income for the quarter was $11.9
million, or $0.33 per diluted share, up 40.0 percent compared to
$8.5 million, or $0.25 per diluted share, for the first quarter of
2013.
- Cash flow from operations for the
quarter was $16.6 million, compared to $17.1 million for the first
quarter of 2013.
- Non-GAAP operating income for the
quarter was $25.0 million, up 33.3 percent from $18.7 million for
the first quarter of 2013.
- Adjusted EBITDA for the quarter was
$26.9 million, up 32.7 percent compared to $20.2 million for the
first quarter of 2013.
- Non-GAAP net income for the quarter was
$15.4 million, or $0.43 per diluted share, up 34.6 percent compared
to $11.5 million, or $0.34 per diluted share, for the first quarter
of 2013.
- Total backlog was $540.3 million at
March 31, 2014, up 39.8 percent from $386.6 million at March 31,
2013. Software-related backlog (excluding appraisal services) was
$508.8 million, an increase of 41.0 percent compared to $360.9
million at March 31, 2013.
“We followed our solid performance in 2013 with very strong
results in the first quarter of 2014,” said John S. Marr Jr.,
Tyler’s president and chief executive officer. “Revenues grew
organically by almost 18 percent, with software license revenues up
more than 27 percent. Subscription revenues increased 52 percent
over last year as e-filing revenues more than tripled, with the
increase driven by our statewide e-filing contract in Texas. The
growth in software license and subscription revenues contributed to
margin expansion, as we achieved non-GAAP gross margin expansion of
80 basis points. In addition, leverage from SG&A and R&D
expenses, which grew at substantially lower rates than revenues,
enabled us to drive our non-GAAP operating margin up 270 basis
points to 22.2 percent.
“While bookings for the quarter were essentially flat with the
first quarter of last year, last year’s first quarter bookings
included an unusually high number of multi-year SaaS contract
renewals. For the trailing 12 months our bookings are up
approximately 36 percent. Entering the second quarter, our pipeline
of new-business opportunities, including a significant number of
unsigned awards, is at an all-time high. Our competitive position
across our product lines remains extremely strong and our win rates
continue to improve. Our outlook for the balance of 2014 is
positive, and our revenues and earnings guidance for the year has
been revised upward to reflect that outlook.
“Most important, we continue to execute at a very high-level
operationally, delivering quality solutions and services to all our
clients. We look forward to building on that success while creating
meaningful returns for our clients, shareholders and employees, and
investing in opportunities for future growth,” continued Mr.
Marr.
Guidance for 2014
As of April 23, 2014, Tyler Technologies is providing the
following guidance for the full year 2014:
- Total revenues are expected to be in
the range of $470 million to $478 million.
- Diluted earnings per share are expected
to be approximately $1.39 to $1.46.
- Non-GAAP diluted earnings per share are
expected to be approximately $1.83 to $1.90.
- Pretax non-cash, share-based
compensation expense is expected to be approximately $15.0
million.
- The effective tax rate is expected to
be between approximately 39.0 percent and 41.0 percent.
- Capital expenditures are expected to be
between $12.0 million and $13.0 million, and total depreciation and
amortization expense is expected to be between $15.0 million and
$15.5 million, including approximately $6.5 million of amortization
of acquisition intangibles.
Conference Call
Tyler Technologies will hold a conference call on Thursday,
April 24, at 10:00 a.m. ET to discuss the company’s results. The
company is offering participants the opportunity to register in
advance for the conference through the following link:
http://dpregister.com/10043689. Registered participants will
receive an email with a calendar reminder and a dial-in number and
PIN that will allow them immediate access to the call.
Participants who do not wish to pre-register for the call may
dial in using 877-270-2148 (U.S. callers) or 412-902-6510
(international callers), and ask for the “Tyler Technologies” call.
A replay will be available two hours after completion of the call
through May 1, 2014. To access the replay, please dial 877-344-7529
(U.S. callers) or 412-317-0088 (international callers) and
reference passcode 10043689.
The live webcast and archived replay can also be accessed at
www.tylertech.com.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of
end-to-end information management solutions and services for local
governments. Tyler partners with clients to empower the public
sector — cities, counties, schools and other government entities —
to become more efficient, more accessible and more responsive to
the needs of citizens. Tyler’s client base includes more than
11,000 local government offices in all 50 states, Canada, the
Caribbean, the United Kingdom and other international locations.
Forbes named Tyler one of “America’s Best Small Companies” seven
times and the company has been included four times on the Barron’s
400 Index, a measure of the most promising companies in America.
More information about Plano-based Tyler Technologies can be found
at www.tylertech.com.
Non-GAAP Financial Measures
Tyler Technologies has provided in this press release financial
measures that have not been prepared in accordance with generally
accepted accounting principles (GAAP) and are therefore considered
non-GAAP financial measures. This information includes non-GAAP
gross profit, non-GAAP gross margin, non-GAAP operating income,
non-GAAP operating margin, non-GAAP net income, non-GAAP earnings
per diluted share, EBITDA and adjusted EBITDA. We use these
non-GAAP financial measures internally in analyzing our financial
results and believe they are useful to investors, as a supplement
to GAAP measures, in evaluating Tyler’s ongoing operational
performance. Tyler believes the use of these non-GAAP financial
measures provides an additional tool for investors to use in
evaluating ongoing operating results and trends and in comparing
our financial results with other companies in our industry, many of
which present similar non-GAAP financial measures. Non-GAAP
financial measures discussed above exclude share-based compensation
expense, employer portion of payroll taxes on employee stock
transactions, and expenses associated with amortization of
intangibles arising from business combinations. We use these
measures and believe they are useful to investors because they
provide additional insight in comparing results from period to
period.
Non-GAAP financial measures should be considered in addition to,
and not as a substitute for, or superior to, financial information
prepared in accordance with GAAP. The non-GAAP measures used by
Tyler Technologies may be different from non-GAAP measures used by
other companies. Investors are encouraged to review the
reconciliation of these non-GAAP measures to their most directly
comparable GAAP financial measures, which has been provided in the
financial statement tables included below in this press
release.
Forward-looking Statements
This document contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 that are not historical
in nature and typically address future or anticipated events,
trends, expectations or beliefs with respect to our financial
condition, results of operations or business. Forward-looking
statements often contain words such as “believes,” “expects,”
“anticipates,” “foresees,” “forecasts,” “estimates,” “plans,”
“intends,” “continues,” “may,” “will,” “should,” “projects,”
“might,” “could” or other similar words or phrases. Similarly,
statements that describe our business strategy, outlook,
objectives, plans, intentions or goals also are forward-looking
statements. We believe there is a reasonable basis for our
forward-looking statements, but they are inherently subject to
risks and uncertainties and actual results could differ materially
from the expectations and beliefs reflected in the forward-looking
statements. We presently consider the following to be among the
important factors that could cause actual results to differ
materially from our expectations and beliefs: (1) changes in the
budgets or regulatory environments of our customers, primarily
local and state governments, that could negatively impact
information technology spending; (2) our ability to protect client
information from security breaches and provide uninterrupted
operations of data centers; (3) material portions of our business
require the Internet infrastructure to be adequately maintained;
(4) our ability to achieve our financial forecasts due to various
factors, including project delays by our customers, reductions in
transaction size, fewer transactions, delays in delivery of new
products or releases or a decline in our renewal rates for service
agreements; (5) general economic, political and market conditions;
(6) technological and market risks associated with the development
of new products or services or of new versions of existing or
acquired products or services; (7) our ability to successfully
complete acquisitions and achieve growth or operational synergies
through the integration of acquired businesses, while avoiding
unanticipated costs and disruptions to existing operations; (8)
competition in the industry in which we conduct business and the
impact of competition on pricing, customer retention and pressure
for new products or services; (9) the ability to attract and retain
qualified personnel and dealing with the loss or retirement of key
members of management or other key personnel; and (10) costs of
compliance and any failure to comply with government and stock
exchange regulations. A detailed discussion of these factors and
other risks that affect our business are described in our filings
with the Securities and Exchange Commission, including the detailed
“Risk Factors” contained in our most recent annual report on Form
10-K. We expressly disclaim any obligation to publicly update or
revise our forward-looking statements.
TYLER TECHNOLOGIES, INC. CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (Amounts in thousands, except per share data)
(Unaudited) Three Months Ended March 31,
2014 2013 Revenues: Software licenses and royalties
$
11,232 $ 8,830 Subscriptions
20,507 13,473 Software
services
24,307 20,461 Maintenance
50,240 46,050
Appraisal services
4,851 5,591 Hardware and other
1,489 1,394 Total revenues
112,626 95,799
Cost of revenues: Software licenses and royalties
531
426 Acquired software
481 549 Software services, maintenance
and subscriptions
54,999 46,382 Appraisal services
3,311 3,799 Hardware and other
774 798
Total cost of revenues
60,096 51,954 Gross profit
52,530 43,845 Selling, general and administrative
expenses
25,367 22,646 Research and development expense
6,172 5,598 Amortization of customer and trade name
intangibles
1,129 1,131 Operating income
19,862 14,470 Other expense, net
259
338 Income before income taxes
19,603 14,132 Income tax
provision
7,720 5,639 Net income
$
11,883 $ 8,493 Earnings per common
share: Basic
$ 0.36 $ 0.27 Diluted
$
0.33 $ 0.25 Weighted average common shares
outstanding: Basic
32,916 31,403 Diluted
35,500
33,948 TYLER TECHNOLOGIES, INC. RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts in thousands, except
per share data) (Unaudited) Three Months Ended
March 31,
2014 2013
Reconciliation of non-GAAP gross profit and margin GAAP gross
profit
$ 52,530 $ 43,845 Non-GAAP adjustments: Add:
Share-based compensation expense included in cost of revenues
513 336 Add: Amortization of acquired software
481 549 Non-GAAP gross profit
$
53,524 $ 44,730 Non-GAAP gross margin
47.5 % 46.7 %
Reconciliation of non-GAAP operating income and margin GAAP
operating income
$ 19,862 $ 14,470 Non-GAAP
adjustments: Add: Share-based compensation expense
3,462
2,575 Add: Employer portion of payroll tax related to employee
stock transactions
24 - Add: Amortization of acquired
software
481 549 Add: Amortization of customer and trade
name intangibles
1,129 1,131
Non-GAAP adjustments subtotal
$ 5,096 $ 4,255
Non-GAAP operating income
$ 24,958 $
18,725 Non-GAAP operating margin
22.2
% 19.5 % Reconciliation of non-GAAP net
income and earnings per share GAAP net income
$
11,883 $ 8,493 Non-GAAP adjustments: Add: Total non-GAAP
adjustments to operating income
5,096 4,255 Less: Tax impact
related to non-GAAP adjustments
(1,540 )
(1,279 ) Non-GAAP net income
$ 15,439 $
11,469 Non-GAAP earnings per diluted share
$
0.43 $ 0.34 Detail of
share-based compensation expense Cost of software services,
maintenance and subscriptions
$ 513 $ 336 Selling,
general and administrative expenses
2,949
2,239 Total share-based compensation expense
$
3,462 $ 2,575 Reconciliation of
adjusted EBITDA GAAP net income
$ 11,883 $ 8,493
Amortization of customer and trade name intangibles
1,129
1,131 Depreciation and other amortization included in cost of
revenues, SG&A and other expenses
2,527 2,191 Interest
expense included in other expense, net
143 210 Income tax
provision
7,720 5,639 EBITDA
$ 23,402 $ 17,664 Share-based
compensation expense
3,462 2,575
Adjusted EBITDA
$ 26,864 $ 20,239
TYLER TECHNOLOGIES, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (Amounts in thousands) (Unaudited)
March 31, December 31,
2014 2013 ASSETS
Current assets: Cash and cash equivalents
$ 97,145 $
78,876 Accounts receivable, net
82,334 106,570 Other current
assets
20,381 24,030 Deferred income taxes
7,759 7,759 Total current assets
207,619
217,235 Accounts receivable, long-term portion
526
588 Property and equipment, net
66,222 64,844 Non-current
investments available-for-sale
1,280 1,288 Other
assets: Goodwill and other intangibles, net
158,387 159,997
Other
207 536 Total assets
$
434,241 $ 444,488 LIABILITIES AND
SHAREHOLDERS' EQUITY Current liabilities: Accounts payable
and accrued liabilities
$ 22,084 $ 35,372 Deferred
revenue
139,298
156,738 Total current liabilities
161,382
192,110 Deferred income taxes
6,155 6,059
Shareholders' equity
266,704 246,319
Total liabilities and shareholders' equity
$ 434,241
$ 444,488 TYLER TECHNOLOGIES, INC. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited) Three months ended March 31,
2014 2013 Cash flows from
operating activities: Net income
$ 11,883 $ 8,493
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization
3,656 3,322 Share-based
compensation expense
3,462 2,575 Excess tax benefit from
exercise of share-based arrangements
(2,158 ) (1,523
) Changes in operating assets and liabilities
(283
) 4,217 Net cash provided by operating
activities
16,560 17,084
Cash flows from investing activities: Proceeds from sales of
investments
8 25 Additions to property and equipment
(3,630 ) (5,089 ) Decrease in other
300
239 Net cash used by investing activities
(3,322 ) (4,825 ) Cash flows
from financing activities: Decrease in net borrowings on revolving
line of credit
- (18,000 ) Contributions from employee stock
purchase plan
849 670 Proceeds from exercise of stock
options
2,024 1,637 Excess tax benefit from exercise of
share-based arrangements
2,158 1,523
Net cash provided (used) by financing activities
5,031 (14,170 ) Net increase (decrease)
in cash and cash equivalents
18,269 (1,911 ) Cash and cash
equivalents at beginning of period
78,876
6,406 Cash and cash equivalents at end of
period
$ 97,145 $ 4,495
Tyler Technologies, Inc.Brian K. Miller, 972-713-3720Executive
Vice President - CFObrian.miller@tylertech.com
Grafico Azioni Tyler Technologies (NYSE:TYL)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Tyler Technologies (NYSE:TYL)
Storico
Da Lug 2023 a Lug 2024