MICROS Reports Fiscal 2013 Results

Record Fiscal Year Revenue, Net Income And EPS

22 Aug, 2013, 16:02 ET from MICROS Systems, Inc.

COLUMBIA, Md., Aug. 22, 2013 /PRNewswire/ -- MICROS Systems, Inc. (Nasdaq: MCRS), a leading supplier of information systems to the food and beverage, hotel and retail industries today announced the results for its fiscal year 2013 fourth quarter and fiscal year ending June 30, 2013. 

FINANCIAL HIGHLIGHTS

  • Revenue for the fiscal 2013 fourth quarter was $328.6 million, an increase of $26.1 million, or 8.6%, over the same period last year.
  • Revenue for the fiscal 2013 year was $1.268 billion, an increase of $160.6 million, or 14.5%, over the same period last year.
  • GAAP net income for the quarter was $42.0 million, a decrease of $6.2 million, or 12.9%, over the same period last year.
  • GAAP net income for the fiscal year was $171.4 million, an increase of $4.4 million, or 2.7%, over the same period last year.
  • GAAP diluted earnings per share (EPS) for the quarter was $0.53, a decrease of $0.06, or 10.2%, over the same period last year.
  • GAAP diluted EPS for the fiscal year was $2.12, an increase of $0.09, or 4.4%, over the same period last year.
  • Non-GAAP financial results, excluding the effect of charges for stock options, amortization of Torex intangibles, restructuring of Torex, and a one-time gain on the sale of auction rate securities are as follows:
    • Non-GAAP net income for the quarter was $48.9 million, a decrease of $6.8 million, or 12.2%, over the same period last year.
    • Non-GAAP net income for the fiscal year was $191.9 million, an increase of $9.3 million, or 5.1%, over the same period last year.
    • Non-GAAP diluted EPS for the quarter was $0.62, a decrease of $0.06, or 8.8%, over the same period last year.
    • Non-GAAP diluted EPS for the fiscal year $2.38, an increase of $0.16, or 7.2%, over the same period last year.

The fiscal year revenue, net income and EPS, on GAAP and Non-GAAP results are fiscal year records for MICROS.

Peter A. Altabef, MICROS's CEO, stated, "We are pleased that we achieved a record year of revenue, net income and earnings per share while continuing our strong investment in talent, product and infrastructure."

MICROS's financial guidance for fiscal 2014 is for revenue of $1.295 billion to $1.320 billion and Non-GAAP EPS of $2.46 to $2.50.

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.

All information in this release is as of August 22, 2013.  MICROS undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in MICROS's expectations.

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.

Contact:

Peter J. Rogers, Jr.

Executive Vice President, Investor Relations

443-285-8059

progers@micros.com

The MICROS logo is a registered trademark of MICROS Systems, Inc.

 

 

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited - in thousands, except per share amounts)

Three Months Ended

Twelve Months Ended

June 30,

June 30,

2013

2012

2013

2012

Revenue:

Hardware

$      74,125

$      69,039

$    269,651

$    237,920

Software

36,688

37,216

143,034

142,617

Service

217,796

196,271

855,400

726,994

Total revenue

328,609

302,526

1,268,085

1,107,531

Cost of sales:

Hardware

47,382

45,254

175,248

152,242

Software

5,743

5,788

22,178

20,779

Service

102,365

86,094

406,429

319,705

Stock option expense

94

52

338

195

Total cost of sales

155,584

137,188

604,193

492,921

Gross margin

173,025

165,338

663,892

614,610

Selling, general and administrative expenses

86,182

71,574

317,035

296,815

Research and development expenses

19,101

14,176

70,962

50,792

Depreciation and amortization

4,439

4,465

16,770

15,848

Stock option expense

4,742

3,900

20,764

16,306

Torex amortization expense

1,386

329

5,803

329

Torex restructuring charge

3,095

0

5,548

0

Total operating expenses

118,945

94,444

436,882

380,090

Income from operations

54,080

70,894

227,010

234,520

Non-operating income (expense):

Interest income, net

1,034

1,603

4,258

6,788

Credit based impairment charge (realized gain on sale of auction rate securities)

0

(4,000)

3,494

(4,000)

Other non-operating expense, net

(637)

(320)

(957)

(117)

Total non-operating income (loss), net

397

(2,717)

6,795

2,671

Income before taxes

54,477

68,177

233,805

237,191

Income tax provision 

12,332

20,098

61,958

70,090

Net income

42,145

48,079

171,847

167,101

Less:  Net (income) loss attributable to noncontrolling interest

(140)

139

(429)

(118)

Net Income attributable to MICROS Systems, Inc. (GAAP)

$      42,005

$      48,218

$    171,418

$    166,983

Net Income per diluted common share attributable to MICROS Systems, Inc.

$           0.53

$           0.59

$           2.12

$           2.03

Weighted-average number of shares outstanding - diluted

79,192

82,283

80,772

82,238

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.

$      42,005

$      48,218

$    171,418

$    166,983

Add back:

Stock option expense

    Selling, general and administrative expenses

4,358

3,539

19,124

15,067

    Research and development expenses

384

361

1,640

1,239

    Cost of sales

94

52

338

195

4,836

3,952

21,102

16,501

Credit based impairment charge (realized gain on sale of auction rate securities)

0

4,000

(3,494)

4,000

Torex amortization expense

1,386

329

5,803

329

Torex restructuring charge

3,095

0

5,548

0

Total add back

9,317

8,281

28,959

20,830

Subtract tax effect on:

Stock option expense

1,495

819

6,721

5,163

Torex amortization expense

47

0

224

0

Torex restructuring charge

871

0

1,512

0

Non-GAAP Net Income attributable to MICROS Systems, Inc.

$      48,909

$      55,680

$    191,920

$    182,650

Non-GAAP Net Income per Diluted Common Share attributable to MICROS Systems, Inc.

$           0.62

$           0.68

$           2.38

$           2.22

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, 2013

June 30, 2012

ASSETS

Current assets:

     Cash and cash equivalents and short-term investments

$         634,069

$         582,038

     Accounts receivable, net

228,455

235,433

     Inventory

49,273

44,278

    Income taxes receivable

12,771

122

     Deferred income taxes

15,022

17,004

     Prepaid expenses and other current assets

44,648

37,221

           Total current assets

984,238

916,096

Long-term investments

-

34,456

Property, plant and equipment, net

44,127

35,435

Deferred income taxes, non-current

50,186

50,326

Goodwill

432,950

444,117

Intangible assets, net

37,754

45,024

Purchased and internally developed software costs, net

32,543

33,980

Other assets

7,240

6,586

Total Assets

$      1,589,038

$     1,566,020

LIABILITIES AND EQUITY

Current liabilities:

     Bank lines of credit

$              1,757

$                    -

     Accounts payable

73,099

69,978

     Accrued expenses and other current liabilities

155,491

174,214

     Income taxes payable

11,002

1,788

     Deferred revenue

177,236

169,989

         Total current liabilities

418,585

415,969

Income taxes payable, non-current

35,019

34,722

Deferred income taxes, non-current

1,157

2,554

Other non-current liabilities

16,007

16,644

         Total liabilities

470,768

469,889

Commitments and contingencies

Equity:

  MICROS Systems, Inc. shareholders' equity:

     Common stock

1,918

2,008

     Capital in excess of par

-

107,662

     Retained earnings

1,136,763

1,000,822

     Accumulated other comprehensive loss

(23,625)

(17,847)

          Total MICROS Systems, Inc. shareholders' equity

1,115,056

1,092,645

  Noncontrolling interest

3,214

3,486

Total Equity

1,118,270

1,096,131

Total Liabilities and Equity

$      1,589,038

$     1,566,020

 

 

MICROS SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - in thousands)

 Fiscal Year Ended June 30, 

2013

2012

Cash flows from operating activities:

Net income

$        171,847

$        167,101

Adjustments to reconcile net income to net cash provided by operating activities:

    Depreciation and amortization

22,573

16,177

    Share-based compensation

21,102

16,501

    Amortization of capitalized software

5,208

7,148

    Provision for losses on accounts receivable

3,563

7,137

    Gain on sales of long-term investments

(4,094)

-

    Other-than-temporary impairment losses on investments, net

600

4,000

    Provision for (benefit from) deferred income taxes

(2,702)

(3,436)

    Net (gain) loss on disposal of property, plant and equipment

-

642

    Other

-

336

    Changes in operating assets and liabilities (net of impact of acquisitions):

        Decrease (increase) in accounts receivable

2,430

(40,095)

        Increase in inventory

(5,302)

(1,751)

        Increase in prepaid expenses and other assets

(7,833)

(1,790)

        Increase in accounts payable

3,163

2,507

        (Decrease) increase in accrued expenses and other current liabilities

(13,682)

2,551

        Decrease in income taxes assets and liabilities

(2,587)

(1,755)

        Increase in deferred revenue

9,239

4,676

Net cash flows provided by operating activities

203,525

179,949

Cash flows from investing activities:

Proceeds from maturities of investments

56,620

158,819

Proceeds from sales of investments

42,119

19,655

Purchases of investments

(186,371)

(78,816)

Purchases of property, plant and equipment

(23,282)

(17,468)

Internally developed software costs

(4,290)

(7,197)

Net cash paid for acquisitions, net of cash acquired

(4)

(258,940)

Other

157

67

Net cash flows used in investing activities

(115,051)

(183,880)

Cash flows from financing activities:

Repurchases of common stock

(176,603)

(59,199)

Proceeds from stock option exercises

9,056

14,933

Proceeds from advance on line of credit

4,014

-

Realized tax benefits from stock option exercises

3,323

4,717

Principal payments on line of credit

(2,061)

-

Cash paid for acquisition of non-controlling interest

(846)

(4,212)

Other

9

(123)

Net cash flows used in financing activities

(163,108)

(43,884)

Effect of exchange rate changes on cash and cash equivalents

(2,129)

(50,658)

Net decrease in cash and cash equivalents

(76,763)

(98,473)

Cash and cash equivalents at beginning of year

562,786

661,259

Cash and cash equivalents at end of year

$        486,023

$        562,786

SOURCE MICROS Systems, Inc.



RELATED LINKS

http://www.micros.com