Cover Page
Cover Page - shares | 9 Months Ended | |
Jan. 31, 2022 | Mar. 02, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-12456 | |
Entity Registrant Name | AMERICAN SOFTWARE, INC. | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-1098795 | |
Entity Address, Address Line One | 470 East Paces Ferry Road, N.E. | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30305 | |
City Area Code | 404 | |
Local Phone Number | 261-4381 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Trading Symbol | AMSWA | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000713425 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Accelerated Filer | |
Class A Common Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 31,736,063 | |
Class B Common Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,821,587 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jan. 31, 2022 | Apr. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 98,355 | $ 88,658 |
Investments | 16,463 | 16,006 |
Trade accounts receivable, less allowance for doubtful accounts of $443 at January 31, 2022 and $430 at April 30, 2021: | ||
Billed | 24,164 | 24,438 |
Unbilled | 3,255 | 2,201 |
Prepaid expenses and other current assets | 6,474 | 5,320 |
Total current assets | 148,711 | 136,623 |
Property and equipment, net of accumulated depreciation of $31,040 at January 31, 2022 and $30,581 at April 30, 2021 | 3,720 | 3,428 |
Capitalized software, net of accumulated amortization of $41,293 at January 31, 2022 and $38,826 at April 30, 2021 | 2,301 | 4,767 |
Goodwill | 25,888 | 25,888 |
Other intangibles, net of accumulated amortization of $13,175 at January 31, 2022 and $13,015 at April 30, 2021 | 201 | 360 |
Lease right of use assets | 1,093 | 1,454 |
Deferred sales commissions—noncurrent | 2,122 | 2,474 |
Other assets | 2,014 | 2,163 |
Total assets | 186,050 | 177,157 |
Current liabilities: | ||
Accounts payable | 3,158 | 1,732 |
Accrued compensation and related costs | 5,242 | 6,129 |
Dividends payable | 3,689 | 3,615 |
Operating lease obligations | 604 | 739 |
Other current liabilities | 1,123 | 1,307 |
Deferred revenue | 38,095 | 37,142 |
Total current liabilities | 51,911 | 50,664 |
Deferred income taxes | 2,460 | 2,627 |
Long-term operating lease obligations | 566 | 821 |
Other long-term liabilities | 234 | 654 |
Total liabilities | 55,171 | 54,766 |
Shareholders’ equity: | ||
Additional paid-in capital | 169,740 | 159,492 |
Retained deficit | (17,114) | (15,287) |
Class A treasury stock, 4,588,632 shares at January 31, 2022 and April 30, 2021, at cost | (25,559) | (25,559) |
Total shareholders’ equity | 130,879 | 122,391 |
Commitments and contingencies | ||
Total liabilities and shareholders’ equity | 186,050 | 177,157 |
Class A Common Shares | ||
Shareholders’ equity: | ||
Common stock value | 3,630 | 3,563 |
Class B Common Shares | ||
Shareholders’ equity: | ||
Common stock value | $ 182 | $ 182 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jan. 31, 2022USD ($)$ / sharesshares | Apr. 30, 2021USD ($)$ / sharesshares | |
Allowance for doubtful accounts receivable | $ | $ 443 | $ 430 |
Property and equipment, accumulated depreciation | $ | 31,040 | 30,581 |
Capitalized software, accumulated amortization | $ | 41,293 | 38,826 |
Other intangibles, accumulated amortization | $ | $ 13,175 | $ 13,015 |
Share conversion ratio | 1 | 1 |
Class A Common Shares | ||
Common stock, par value (in usd per share) | $ / shares | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 36,307,695 | 35,629,566 |
Common stock, shares outstanding | 36,307,695 | 35,629,566 |
Common stock, shares outstanding, net | 31,719,063 | 31,040,934 |
Common stock, shares issued, net | 31,719,063 | 31,040,934 |
Class A treasury stock (in shares) | 4,588,632 | 4,588,632 |
Class B Common Shares | ||
Common stock, par value (in usd per share) | $ / shares | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 1,821,587 | 1,821,587 |
Common stock, shares outstanding | 1,821,587 | 1,821,587 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Revenues: | |||||
Revenues | $ 32,422 | $ 27,683 | $ 92,904 | $ 82,842 | |
Cost of revenues: | |||||
Cost of revenues | 13,472 | 12,422 | 38,664 | 38,523 | |
Gross margin | 18,950 | 15,261 | 54,240 | 44,319 | |
Research and development | 4,602 | 4,242 | 13,304 | 12,674 | |
Sales and marketing | 5,222 | 5,029 | 17,234 | 15,202 | |
General and administrative | 5,834 | 5,002 | 15,844 | 13,833 | |
Amortization of acquisition-related intangibles | 53 | 53 | 159 | 159 | |
Total operating expenses | 15,711 | 14,326 | 46,541 | 41,868 | |
Operating income | 3,239 | 935 | 7,699 | 2,451 | |
Other income\(loss): | |||||
Interest income | 97 | 90 | 287 | 313 | |
Other, net | (5) | 1,342 | 1,172 | 2,409 | |
Earnings before income taxes | 3,331 | 2,367 | 9,158 | 5,173 | |
Income tax expense\(benefit) | 391 | 56 | (43) | 136 | |
Net earnings | $ 2,940 | $ 2,311 | $ 9,201 | $ 5,037 | |
Earnings per common share | |||||
Basic (in usd per share) | [1] | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 |
Cash dividends declared per common share (in usd per share) | $ 0.11 | $ 0.11 | $ 0.33 | $ 0.33 | |
Shares used in the calculation of earnings per common share | |||||
Basic (in shares) | 33,490,000 | 32,628,000 | 33,293,000 | 32,485,000 | |
Diluted (in shares) | 34,578,000 | 33,293,000 | 34,325,000 | 33,107,000 | |
Class A Common Shares | |||||
Earnings per common share | |||||
Basic (in usd per share) | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 | |
Diluted (in usd per share) | [1] | $ 0.09 | $ 0.07 | $ 0.27 | $ 0.15 |
Shares used in the calculation of earnings per common share | |||||
Basic (in shares) | 31,668,000 | 30,806,000 | 31,471,000 | 30,663,000 | |
Diluted (in shares) | 34,578,000 | 33,293,000 | 34,325,000 | 33,107,000 | |
Class B Common Shares | |||||
Earnings per common share | |||||
Basic (in usd per share) | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 | |
Diluted (in usd per share) | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 | |
Shares used in the calculation of earnings per common share | |||||
Basic (in shares) | 1,822,000 | 1,822,000 | 1,822,000 | 1,822,000 | |
Diluted (in shares) | 1,822,000 | 1,822,000 | 1,822,000 | 1,822,000 | |
Subscription fees | |||||
Revenues: | |||||
Revenues | $ 10,856 | $ 7,486 | $ 31,005 | $ 20,815 | |
Cost of revenues: | |||||
Cost of revenues | 3,431 | 3,062 | 10,059 | 8,767 | |
License | |||||
Revenues: | |||||
Revenues | 992 | 530 | 2,289 | 1,767 | |
Cost of revenues: | |||||
Cost of revenues | 240 | 288 | 597 | 1,516 | |
Professional services and other | |||||
Revenues: | |||||
Revenues | 11,443 | 9,495 | 31,751 | 29,551 | |
Cost of revenues: | |||||
Cost of revenues | 8,012 | 7,178 | 22,499 | 22,632 | |
Maintenance | |||||
Revenues: | |||||
Revenues | 9,131 | 10,172 | 27,859 | 30,709 | |
Cost of revenues: | |||||
Cost of revenues | $ 1,789 | $ 1,894 | $ 5,509 | $ 5,608 | |
[1] | Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A shares are shown above. Diluted earnings per share for Class B shares under the two-class method are $0.09 and $0.07 for the three months ended January 31, 2022 and 2021 and $0.28 and $0.16 for the nine months ended January 31, 2022 and 2021. See Note D to the Condensed Consolidated Financial Statements. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Class A Common Shares | Class B Common Shares | Common stockClass A Common Shares | Common stockClass B Common Shares | Additional paid-in capital | Retained deficit | Treasury stock | ||
Beginning balance (in shares) at Apr. 30, 2020 | 35,000,649 | 1,821,587 | ||||||||
Beginning balance at Apr. 30, 2020 | $ 119,422 | $ 3,500 | $ 182 | $ 150,312 | $ (9,013) | $ (25,559) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Proceeds from stock options exercised (in shares) | 462,321 | 462,321 | ||||||||
Proceeds from stock options exercised | $ 4,735 | $ 46 | 4,689 | |||||||
Stock-based compensation | 1,901 | 1,901 | ||||||||
Net earnings | 5,037 | 5,037 | ||||||||
Dividends declared | [1] | (10,745) | (10,745) | |||||||
Ending balance (in shares) at Jan. 31, 2021 | 35,462,970 | 1,821,587 | ||||||||
Ending balance at Jan. 31, 2021 | 120,350 | $ 3,546 | $ 182 | 156,902 | (14,721) | (25,559) | ||||
Beginning balance (in shares) at Oct. 31, 2020 | 35,277,846 | 1,821,587 | ||||||||
Beginning balance at Oct. 31, 2020 | 119,053 | $ 3,528 | $ 182 | 154,335 | (13,433) | (25,559) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Proceeds from stock options exercised (in shares) | 185,124 | |||||||||
Proceeds from stock options exercised | 1,882 | $ 18 | 1,864 | |||||||
Stock-based compensation | 703 | 703 | ||||||||
Net earnings | 2,311 | 2,311 | ||||||||
Dividends declared | [1] | (3,599) | (3,599) | |||||||
Ending balance (in shares) at Jan. 31, 2021 | 35,462,970 | 1,821,587 | ||||||||
Ending balance at Jan. 31, 2021 | 120,350 | $ 3,546 | $ 182 | 156,902 | (14,721) | (25,559) | ||||
Beginning balance (in shares) at Apr. 30, 2021 | 35,629,566 | 1,821,587 | 35,629,566 | 1,821,587 | ||||||
Beginning balance at Apr. 30, 2021 | $ 122,391 | $ 3,563 | $ 182 | 159,492 | (15,287) | (25,559) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Proceeds from stock options exercised (in shares) | 678,129 | 678,129 | [1] | |||||||
Proceeds from stock options exercised | [1] | $ 7,405 | $ 67 | 7,338 | ||||||
Stock-based compensation | 2,910 | 2,910 | ||||||||
Net earnings | 9,201 | 9,201 | ||||||||
Dividends declared | [1] | (11,028) | (11,028) | |||||||
Ending balance (in shares) at Jan. 31, 2022 | 36,307,695 | 1,821,587 | 36,307,695 | 1,821,587 | ||||||
Ending balance at Jan. 31, 2022 | 130,879 | $ 3,630 | $ 182 | 169,740 | (17,114) | (25,559) | ||||
Beginning balance (in shares) at Oct. 31, 2021 | 36,174,808 | 1,821,587 | ||||||||
Beginning balance at Oct. 31, 2021 | 128,847 | $ 3,617 | $ 182 | 166,969 | (16,362) | (25,559) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Proceeds from stock options exercised (in shares) | [1] | 132,887 | ||||||||
Proceeds from stock options exercised | [1] | 1,691 | $ 13 | 1,678 | ||||||
Stock-based compensation | 1,093 | 1,093 | ||||||||
Net earnings | 2,940 | 2,940 | ||||||||
Dividends declared | [1] | (3,692) | (3,692) | |||||||
Ending balance (in shares) at Jan. 31, 2022 | 36,307,695 | 1,821,587 | 36,307,695 | 1,821,587 | ||||||
Ending balance at Jan. 31, 2022 | $ 130,879 | $ 3,630 | $ 182 | $ 169,740 | $ (17,114) | $ (25,559) | ||||
[1] | Amounts adjusted for rounding |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Cash flows from operating activities: | ||
Net earnings | $ 9,201 | $ 5,037 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 3,170 | 4,441 |
(Gain) on sale of fixed assets | (36) | 0 |
Stock-based compensation expense | 2,910 | 1,901 |
Net gain on investments | (1,073) | (1,945) |
Deferred income taxes | (167) | (325) |
Changes in operating assets and liabilities: | ||
Purchases of trading securities | (215) | (779) |
Proceeds from maturities and sales of trading securities | 831 | 3,534 |
Accounts receivable, net | (780) | 5,248 |
Prepaid expenses and other assets | (653) | 922 |
Accounts payable and other liabilities | (91) | (1,897) |
Deferred revenue | 953 | (2,204) |
Net cash provided by operating activities | 14,050 | 13,933 |
Cash flows from investing activities: | ||
Capitalized computer software development costs | 0 | (604) |
Purchases of property and equipment, net of disposals | (801) | (461) |
Net cash used in investing activities | (801) | (1,065) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 7,405 | 4,735 |
Dividends paid | (10,957) | (10,696) |
Net cash used in financing activities | (3,552) | (5,961) |
Net change in cash and cash equivalents | 9,697 | 6,907 |
Cash and cash equivalents at beginning of period | 88,658 | 79,814 |
Cash and cash equivalents at end of period | 98,355 | 86,721 |
Supplemental disclosures of noncash operating, investing and financing activities: | ||
Income taxes, net of refunds | 180 | 485 |
Accrual of dividends payable | $ 3,689 | $ 3,597 |
Presentation and Summary of Sig
Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Presentation and Summary of Significant Accounting Policies | Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required for complete consolidated financial statements. In the opinion of our management, these Condensed Consolidated Financial Statements contain all normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position at January 31, 2022, results of operations for the three and nine months ended January 31, 2022 and 2021, consolidated statements of shareholders’ equity for the three and nine months ended January 31, 2022 and 2021 and cash flows for the nine months ended January 31, 2022 and 2021. The Company’s results for the three months ended January 31, 2022 are not necessarily indicative of the results expected for the full year. You should read these statements in conjunction with our audited consolidated financial statements and management’s discussion and analysis and results of operations included in our Annual Report on Form 10-K (the “Annual Report”) for the fiscal year ended April 30, 2021. The terms “fiscal 2022” and “fiscal 2021” refer to our fiscal years ending April 30, 2022 and 2021, respectively. The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. Note 1 in the Notes to the Consolidated Financial Statements for fiscal 2021 contained in the Annual Report describes the significant accounting policies that we have used in preparing our consolidated financial statements. On an ongoing basis, we evaluate our estimates, including, but not limited to, those related to revenue/reserves and allowances. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our actual results could differ materially from these estimates under different assumptions or conditions. Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of American Software, Inc. (“American Software”) and its wholly-owned subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. Recent Accounting Pronouncements . In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance eliminates certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating taxes for each quarter and the recognition of deferred tax liabilities for outside basis differences. This guidance also simplifies aspects of the accounting for franchise taxes and changes in tax laws or rates, as well as clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 was effective for the Company beginning May 1, 2021 and would require us to recognize a cumulative effect adjustment to the opening balance of reinvested earnings, if applicable. The adoption of ASU 2019-12 did not have a material impact on the Company's condensed consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We recognize revenue when we transfer control of the promised goods or services to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We derive our revenue from software licenses; maintenance services; consulting, implementation and training services; and Software-as-a-Service (“SaaS”), which includes a subscription to our software as well as maintenance, hosting and managed services. The Company determines revenue recognition through the following steps: Step 1 – Identification of the Contract with the Customer Step 2 – Identification of Promised Goods and Services and Evaluation of Whether the Promised Goods and Services are Distinct Performance Obligations Step 3 – Determination of the Transaction Price Step 4 – Allocation of the Transaction Price to Distinct Performance Obligations Step 5 – Attribution of Revenue for Each Distinct Performance Obligation Nature of Products and Services. Subscription Fees . Subscription fees include SaaS revenue for the right to use the software for a limited period of time in an environment hosted by the Company in either a public or privately managed data center. The customer accesses and uses the software on an as-needed basis over the Internet or via a dedicated line; however, the customer has no right to take delivery of the software without incurring a significant penalty. The underlying arrangements typically include a single fee for the service that is billed monthly, quarterly or annually. The Company’s SaaS solutions represent a series of distinct services that are substantially the same and have the same pattern of transfer to the customer. Revenue from a SaaS solution is generally recognized ratably over the term of the arrangement. Licenses . Our software licenses provide the customer with a right to use the software as it exists at the time of purchase. We recognize revenue for distinct software licenses once the license period has begun and we have made the software available to the customer. Our perpetual software licenses are sold with maintenance which services are described below in the Maintenance section. Professional Services and Other. Our services revenue consists of fees generated from consulting, implementation and training services, including reimbursements of out-pocket expenses in connection with our services. Services are typically optional to our customers, and are distinct from our software. Fees for our services are separately priced and are generally billed on an hourly basis, and revenue is recognized over time as the services are performed. We believe the output method of hours worked provides the best depiction of the transfer of our services since the customer is receiving the benefit from our services as the work is performed. The total amount of expense reimbursement included in professional services and other revenue was approximately $28,000 and $69,000 for the three and nine months ended January 31, 2022 and $0 and $16,000 for the three and nine months ended January 31, 2021, respectively. Maintenance. Revenue is derived from maintenance under which we provide customers with telephone consulting, product updates and releases of new versions of products previously purchased by the customer on a when and if available basis, as well as error reporting and correction services. Maintenance for perpetual licenses is renewable, generally on an annual basis, at the option of the customer. Maintenance terms typically range from one Indirect Channel Revenue. We record revenue from sales made through the indirect sales channels on a gross basis, because we control the goods or services and act as the principal in the transaction. In reaching this determination, we evaluated sales through our indirect channel on a case-by-case basis and considered a number of factors including indicators of control such as the party having the primary responsibility to provide specified goods or services and the party having discretion in establishing prices. Sales Taxes. We account for sales taxes collected from customers on a net basis. Significant Judgments. Many of our contracts include multiple performance obligations. Our products and services generally do not require a significant amount of integration or interdependency; therefore, our products and services are generally not combined. We allocate the transaction price for each contract to each performance obligation based on the relative standalone selling price (SSP) for each performance obligation within each contract. We use judgment in determining the SSP for products and services. For substantially all performance obligations, other than on-premise licenses, we are able to establish SSP based on the observable prices of products or services sold separately in comparable circumstances to similar customers. We typically establish an SSP range for our products and services which is reassessed on a periodic basis or when facts and circumstances change. Historically our on-premise licenses have not been sold on a standalone basis, as the vast majority of all customers elect to purchase on-premise license maintenance and support contracts at the time of an on-premise license purchase. We are unable to establish the SSP for our on-premise licenses based on observable prices, as the same products are sold for a broad range of prices (that is, the selling price is highly variable) and a representative SSP is not discernible from past transactions or other observable evidence. As a result, the SSP for an on-premise license included in a contract with multiple performance obligations is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSPs, with any residual amount of transaction price allocated to on-premise license revenue. Maintenance and support contracts are generally priced as a percentage of the net fees paid by the customer to access the on-premise license. Contract Balances. Timing of invoicing to customers may differ from timing of revenue recognition and these timing differences result in unbilled accounts receivables or contract liabilities (deferred revenue) on the Company’s condensed consolidated balance sheets. Fees for our software licenses are generally due within 30 days of contract execution. We have an established history of collecting under the terms of our software license contracts without providing refunds or concessions to our customers. SaaS solutions and maintenance are typically billed in advance on a monthly, quarterly, or annual basis. Services are typically billed as performed. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include significant financing component. The primary purpose of our invoicing terms is to provide customers with predictable ways to purchase our software and services, not to provide or receive financing. Additionally, we are applying the practical expedient to exclude any financing component from consideration for any contracts with payment terms of one year or less since we rarely offer terms extending beyond one year. The consideration in our customer contracts is fixed. We have an unconditional right to consideration for all goods and services transferred to our customers. That unconditional right to consideration is reflected in billed and unbilled accounts receivable in the accompanying condensed consolidated balance sheets in accordance with ASC Topic 606. Deferred revenue consists of amounts collected prior to having completed the performance of maintenance, SaaS, hosting, and managed services. We typically invoice customers for cloud subscription and support fees in advance on a monthly, quarterly or annual basis, with payment due at the start of the cloud subscription or support term. During the three months ended January 31, 2022, we recognized $17.5 million of revenue that was included in the deferred revenue balance as of October 31, 2021. During the nine months ended January 31, 2022, we recognized $34.4 million of revenue that was included in the deferred revenue balance as of April 30, 2021. January 31, April 30, (in thousands) Deferred revenue, current 38,095 37,142 Deferred revenue, long-term* 105 540 Total deferred revenue $ 38,200 $ 37,682 * included in other long-term liabilities on the accompanying condensed consolidated balance sheets. Remaining Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under Topic 606. The transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied by transferring the promised good or service to the customer. The Company identifies and tracks the performance obligations at contract inception so that the Company can monitor and account for the performance obligations over the life of the contract. Remaining performance obligations represent the transaction price of orders for which products have not been delivered or services have not been performed. As of January 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $129 million. The Company expects to recognize revenue on approximately 46% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. Disaggregated Revenue. The Company disaggregates revenue from contracts with customers by geography, as it believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company’s revenue by geography is as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) (in thousands) Revenue: Domestic $ 27,334 $ 23,668 $ 77,958 $ 70,467 International 5,088 4,015 14,946 12,375 $ 32,422 $ 27,683 $ 92,904 $ 82,842 Contract Costs. The Company capitalizes the incremental costs of obtaining a contract with a customer if the Company expects to recover those costs. The incremental costs of obtaining a contract are those that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, a sales commission). The Company capitalizes the costs incurred to fulfill a contract only if those costs meet all of the following criteria: a. The costs relate directly to a contract or to an anticipated contract that the Company can specifically identify. b. The costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future. c. The costs are expected to be recovered. Certain sales commissions incurred by the Company were determined to be incremental costs to obtain the related contracts, which are deferred and amortized ratably over the economic benefit period. These deferred commission costs are classified as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred commissions are included in prepaid expenses and other current assets and deferred sales commissions—noncurrent, respectively, in the Company’s Condensed Consolidated Balance Sheets. Total deferred commissions at January 31, 2022 and April 30, 2021 were $3.5 million and $3.9 million, respectively. Amortization of sales commissions was $0.5 million and $1.5 million for the three and nine months ended January 31, 2022, respectively, and $0.5 million and $1.4 million for the three and nine months ended January 31, 2021, respectively, which is included in "Sales and marketing" expense in the accompanying Condensed Consolidated Statements of Operations. No impairment losses were recognized during the periods. |
Declaration of Dividend Payable
Declaration of Dividend Payable | 9 Months Ended |
Jan. 31, 2022 | |
Dividends [Abstract] | |
Declaration of Dividend Payable | Declaration of Dividend Payable On November 17, 2021, our Board of Directors declared a quarterly cash dividend of $0.11 per share of our Class A and Class B common stock. The cash dividend was paid on February 18, 2022 to Class A and Class B shareholders of record at the close of business on February 4, 2022. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The Company has two classes of common stock. Class B common shares are convertible into Class A common shares at any time, on a one-for-one basis. Under the Company’s Articles of Incorporation, if dividends are declared, holders of Class A common shares shall receive a $0.05 dividend per share prior to the Class B common shares receiving any dividend and holders of Class A common shares shall receive a dividend at least equal to Class B common shares dividends on a per share basis. As a result, the Company has computed the earnings per share in compliance with the Earnings Per Share Topic of the FASB ASC, which requires companies that have multiple classes of equity securities to use the “two-class” method in computing earnings per share. For the Company’s basic earnings per share calculation, the Company uses the “two-class” method. Basic earnings per share are calculated by dividing net earnings attributable to each class of common stock by the weighted average number of shares outstanding. All undistributed earnings are allocated evenly between Class A and B common shares in the earnings per share calculation to the extent that earnings equal or exceed $0.05 per share. This allocation is based on management’s judgment after considering the dividend rights of the two-classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B shares to Class A shares. If Class B shares convert to Class A shares during the period, the distributed net earnings for Class B shares is calculated using the weighted average common shares outstanding during the period. Diluted earnings per share is calculated similarly to basic earnings per share, except that the calculation includes the dilutive effect of the assumed exercise of options issuable under the Company’s stock incentive plans. For the Company’s diluted earnings per share calculation for Class A shares, the Company uses the “if-converted” method. This calculation assumes that all Class B common shares are converted into Class A common shares and, as a result, assumes there are no holders of Class B common shares to participate in undistributed earnings. For the Company’s diluted earnings per share calculation for Class B shares, the Company uses the “two-class” method. This calculation does not assume that all Class B common shares are converted into Class A common shares. In addition, this method assumes the dilutive effect of Class A stock options were converted to Class A shares and the undistributed earnings are allocated evenly to both Class A and B shares including Class A shares issued pursuant to those converted stock options. This allocation is based on management’s judgment after considering the dividend rights of the two-classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B shares into Class A shares. The following tables set forth the computation of basic earnings per common share and diluted earnings per common share (in thousands except for per share amounts): Basic earnings per common share: Three Months Ended Nine Months Ended Class A Class B Class A Class B Distributed earnings $ 0.11 $ 0.11 $ 0.33 $ 0.33 Undistributed losses (0.02) (0.02) (0.05) (0.05) Total $ 0.09 $ 0.09 $ 0.28 $ 0.28 Distributed earnings $ 3,488 $ 201 $ 10,426 $ 602 Undistributed losses (708) (41) (1,727) (100) Total $ 2,780 $ 160 $ 8,699 $ 502 Basic weighted average common shares outstanding 31,668 1,822 31,471 1,822 Three Months Ended Nine Months Ended Class A Class B Class A Class B Distributed earnings $ 0.11 $ 0.11 $ 0.33 $ 0.33 Undistributed losses (0.04) (0.04) (0.17) (0.17) Total $ 0.07 $ 0.07 $ 0.16 $ 0.16 Distributed earnings $ 3,396 $ 201 $ 10,142 $ 602 Undistributed losses (1,214) (72) (5,387) (320) Total $ 2,182 $ 129 $ 4,755 $ 282 Basic weighted average common shares outstanding 30,806 1,822 30,663 1,822 Diluted EPS for Class A Common Shares Using the If-Converted Method Three Months Ended January 31, 2022 Undistributed Class A EPS* Per Basic $ 2,780 31,668 $ 0.09 Common Stock Equivalents — 1,088 — 2,780 32,756 0.09 Class B Common Share Conversion* 160 1,822 — Diluted EPS for Class A Common Shares $ 2,940 34,578 $ 0.09 Nine Months Ended January 31, 2022 Undistributed Class A EPS* Per Basic $ 8,699 31,471 $ 0.28 Common Stock Equivalents — 1,032 — 8,699 32,503 0.27 Class B Common Share Conversion 502 1,822 — Diluted EPS for Class A Common Shares $ 9,201 34,325 $ 0.27 Three Months Ended January 31, 2021 Undistributed Class A EPS* Per Basic $ 2,182 30,806 $ 0.07 Common Stock Equivalents — 665 — 2,182 31,471 0.07 Class B Common Share Conversion 129 1,822 — Diluted EPS for Class A Common Shares $ 2,311 33,293 $ 0.07 Nine Months Ended January 31, 2021 Undistributed Class A EPS* Per Basic $ 4,755 30,663 $ 0.16 Common Stock Equivalents — 622 — 4,755 31,285 0.15 Class B Common Share Conversion 282 1,822 — Diluted EPS for Class A Common Shares $ 5,037 33,107 $ 0.15 Diluted EPS for Class B Common Shares Using the Two-Class Method Three Months Ended January 31, 2022 Undistributed Class B EPS* Per Basic $ 160 1,822 $ 0.09 Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares 2 — — Diluted EPS for Class B Common Shares $ 162 1,822 $ 0.09 Nine Months Ended January 31, 2022 Undistributed Class B EPS* Per Basic $ 502 $ 1,822 $ 0.28 Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares 4 — — Diluted EPS for Class B Common Shares $ 506 1,822 $ 0.28 Three Months Ended January 31, 2021 Undistributed Class B EPS* Per Basic $ 129 1,822 $ 0.07 Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares 2 — — Diluted EPS for Class B Common Shares $ 131 1,822 $ 0.07 Nine Months Ended January 31, 2021 Undistributed Class B EPS* Per Basic $ 282 $ 1,822 $ 0.16 Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares 6 — — Diluted EPS for Class B Common Shares $ 288 1,822 $ 0.16 _______________ *Amounts adjusted for rounding For the three and nine months ended January 31, 2022, we excluded options to purcha se 890,783 and 858,210, Class A Common Shares, respectively, and for the three and nine months ended January 31, 2021, we excluded options to purchase 775,087 and 1,669,870 Class A Common Shares, respectively, from the computation of diluted earnings per Class A Common Shares. We excluded these option share amounts because the exercise prices of those options were greater than the average market price of the Class A Common Shares during the applicable period. As of January 31, 2022, we had a total of 4,743,104 options outstanding and as of January 31, 2021, we had a total of 4,405,329 options outstanding. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jan. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation During the nine months ended January 31, 2022 and 2021, we granted options for 1,438,500 and 1,340,000 shares of Class A common stock, respectively. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. The forfeiture rates are estimated using historical data. We recorded stock option compensation cost of approximately $1.1 million and $0.7 million and income tax benefits of approximately $326,682 and $232,882 from option exercises during the three months ended January 31, 2022 and 2021, respectively. We recorded stock option compensation cost of approximately $2.9 million and $1.9 million and income tax benefits of approximately $1.9 million and $0.5 million from option exercises during the nine months ended January 31, 2022 and 2021, respectively. We record stock-based compensation expense on a straight-line basis over the vesting period directly to additional paid-in capital. During the nine months ended January 31, 2022 and 2021, we issued 678,129 and 462,321 shares of Class A common stock, respectively, resulting from the exercise of stock options. The total intrinsic value of options exercised during the nine months ended January 31, 2022 and 2021 based on market value at the exercise dates was approximately $9.1 million and $2.8 million, respectively. As of January 31, 2022, unrecognized compensation cost related to unvested stock option awards approximated $13.1 million, which we expect to recognize over a weighted average period of two years. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We measure our investments based on a fair value hierarchy disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. A number of factors affect market price observability, including the type of asset or liability and its characteristics. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1—Quoted prices for identical instruments in active markets. • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following is a general description of the valuation methodologies we use for financial assets and liabilities measured at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. Cash Equivalents —Cash equivalents include investments in government obligation based money-market funds, other money market instruments and interest-bearing deposits with initial terms of three months or less. The fair value of cash equivalents approximates its carrying value due to the short-term nature of these instruments. Marketable Securities —Marketable securities utilizing Level 1 inputs include active exchange-traded equity securities and equity index funds, and most U.S. government debt securities, as these securities all have quoted prices in active markets. Marketable securities utilizing Level 2 inputs include municipal bonds. We value these securities using market-corroborated pricing or other models that use observable inputs such as yield curves. The following tables present our assets and liabilities that we measured at fair value on a recurring basis as of January 31, 2022 and April 30, 2021, and indicate the fair value hierarchy of the valuation techniques we used to determine such fair value (in thousands): January 31, 2022 Quoted Prices Significant Significant Balance Cash equivalents $ 89,285 $ — $ — $ 89,285 Marketable securities 16,463 — — 16,463 Total $ 105,748 $ — $ — $ 105,748 April 30, 2021 Quoted Prices Significant Significant Balance Cash equivalents 81,720 — — 81,720 Marketable securities 15,332 674 — 16,006 Total 97,052 674 — 97,726 |
Stock Repurchases
Stock Repurchases | 9 Months Ended |
Jan. 31, 2022 | |
Equity [Abstract] | |
Stock Repurchases | Stock RepurchasesOn August 19, 2002, our Board of Directors authorized the repurchase of up to an additional 2.0 million shares of our Class A common stock. We have made and will make these repurchases through open market purchases at prevailing market prices. The timing of any repurchase will depend upon market conditions, the market price of our Class A common stock and management’s assessment of our liquidity and cash flow needs. Under this repurchase plan, we have repurchased 1,053,679 shares of Class A common stock at a cost of approximately $6.2 million, which had no impact on fiscal 2022. As of January 31, 2022, under all repurchase plans previously authorized, including this most recent plan, we have repurchased a total of 4,588,632 shares of common stock at a cost of approximately $25.6 million. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Jan. 31, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Comprehensive IncomeWe have not included condensed consolidated statements of comprehensive income in the accompanying unaudited Condensed Consolidated Financial Statements since comprehensive income and net earnings presented in the accompanying Condensed Consolidated Statements of Operations would be substantially the same. |
Industry Segments
Industry Segments | 9 Months Ended |
Jan. 31, 2022 | |
Segment Reporting [Abstract] | |
Industry Segments | Industry Segments FASB ASC 280, Segment Reporting , establishes standards for reporting information about operating segments. Operating segments are defined as components of a public entity about which separate financial information is available that is evaluated regularly by the chief operating decision makers (“CODMs”), or decision making group, in deciding how to allocate resources and in assessing performance. Our CODMs are our Chief Executive Officer and President and our Chief Financial Officer. While our CODMs are apprised of a variety of financial metrics and information, we manage our business primarily on a segment basis, with the CODMs evaluating performance based upon segment operating profit or loss that includes an allocation of common expenses, but excludes certain unallocated corporate expenses, which are included in the Other segment. Our CODMs review the operating results of our three segments, assess performance and allocate resources in a manner that is consistent with the changing market dynamics that we have experienced. The three operating segments are: (1) Supply Chain Management (“SCM”), (2) Information Technology Consulting (“IT Consulting”) and (3) Other. The SCM segment consists of Logility, Inc. ("Logility") and Demand Management Inc. ("DMI"). Both operating companies leverage a single platform spanning eight supply chain process areas, including demand optimization, inventory optimization, supply optimization, retail optimization, product lifecycle management, sourcing management, corporate responsibility, product compliance, automated order processing and integrated business planning. The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm, which provides consulting, software development, systems integration services, maintenance and support services. The Other segment consists of (i) American Software ERP, which provides purchasing and materials management, customer order processing, financial, e-commerce and traditional manufacturing solutions, and (ii) unallocated corporate overhead expenses. All of our revenue is derived from external customers. We do not have any inter-segment revenue. Our income taxes and dividends are paid at a consolidated level. Consequently, it is not practical to show these items by operating segment. In the following table, we have broken down the intersegment transactions applicable to the three and nine months ended January 31, 2022 and 2021 (in thousands): Three Months Ended January 31, Nine Months Ended January 31, 2022 2021 2022 2021 Revenue: Supply Chain Management $ 26,061 $ 22,646 $ 75,692 $ 66,679 IT Consulting 5,842 4,543 15,544 14,602 Other 519 494 1,668 1,561 $ 32,422 $ 27,683 $ 92,904 $ 82,842 Operating income\(loss): Supply Chain Management $ 7,458 $ 4,713 $ 19,531 $ 12,800 IT Consulting 506 83 1,005 292 Other (4,725) (3,861) (12,837) (10,641) $ 3,239 $ 935 $ 7,699 $ 2,451 Capital expenditures: Supply Chain Management $ 57 $ 152 $ 672 $ 236 IT Consulting — — — — Other 165 146 165 225 $ 222 $ 298 $ 837 $ 461 Capitalized software: Supply Chain Management $ — $ 233 $ — $ 604 IT Consulting — — — — Other — — — — $ — $ 233 $ — $ 604 Depreciation and amortization: Supply Chain Management $ 907 $ 1,149 $ 2,889 $ 4,150 IT Consulting — — — 2 Other 93 98 281 289 $ 1,000 $ 1,247 $ 3,170 $ 4,441 Earnings\(loss) before income taxes: Supply Chain Management $ 7,458 $ 4,803 $ 19,377 $ 13,023 IT Consulting 506 83 1,005 290 Other (4,633) (2,519) (11,224) (8,140) $ 3,331 $ 2,367 $ 9,158 $ 5,173 |
Major Customers
Major Customers | 9 Months Ended |
Jan. 31, 2022 | |
Segment Reporting [Abstract] | |
Major Customers | Major CustomersNo single customer accounted for more than 10% of total revenue for the three and nine months ended January 31, 2022 and 2021. |
Contingencies
Contingencies | 9 Months Ended |
Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesWe generally indemnify our customers against damages and costs resulting from third-party claims of patent, copyright or trademark infringement associated with use of our products. Historically, we have not been required to make any payments under such indemnifications. However, we continue to monitor the conditions that are subject to indemnification to identify whether it is probable that a loss has occurred, and would recognize any such losses when those losses are estimable. In addition, we warrant to our customers that our software products operate substantially in accordance with their documentation. Historically, we have incurred no costs related to software product warranties and we do not expect to incur such costs in the future, and as such we have made no accruals for software product warranty costs. Additionally, we are involved in various claims arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on our financial position or results of operations. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Jan. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn February 16, 2022, our Board of Directors declared a quarterly cash dividend of $0.11 per share of our Class A and Class B common stock. The cash dividend is payable on May 20, 2022 to Class A and Class B shareholders of record at the close of business on May 6, 2022. |
Presentation and Summary of S_2
Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jan. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required for complete consolidated financial statements. In the opinion of our management, these Condensed Consolidated Financial Statements contain all normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position at January 31, 2022, results of operations for the three and nine months ended January 31, 2022 and 2021, consolidated statements of shareholders’ equity for the three and nine months ended January 31, 2022 and 2021 and cash flows for the nine months ended January 31, 2022 and 2021. The Company’s results for the three months ended January 31, 2022 are not necessarily indicative of the results expected for the full year. You should read these statements in conjunction with our audited consolidated financial statements and management’s discussion and analysis and results of operations included in our Annual Report on Form 10-K (the “Annual Report”) for the fiscal year ended April 30, 2021. The terms “fiscal 2022” and “fiscal 2021” refer to our fiscal years ending April 30, 2022 and 2021, respectively. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of American Software, Inc. (“American Software”) and its wholly-owned subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements . In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance eliminates certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating taxes for each quarter and the recognition of deferred tax liabilities for outside basis differences. This guidance also simplifies aspects of the accounting for franchise taxes and changes in tax laws or rates, as well as clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 was effective for the Company beginning May 1, 2021 and would require us to recognize a cumulative effect adjustment to the opening balance of reinvested earnings, if applicable. The adoption of ASU 2019-12 did not have a material impact on the Company's condensed consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract Balances | January 31, April 30, (in thousands) Deferred revenue, current 38,095 37,142 Deferred revenue, long-term* 105 540 Total deferred revenue $ 38,200 $ 37,682 * included in other long-term liabilities on the accompanying condensed consolidated balance sheets. |
Schedule of Revenue by Geography | The Company’s revenue by geography is as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 (in thousands) (in thousands) Revenue: Domestic $ 27,334 $ 23,668 $ 77,958 $ 70,467 International 5,088 4,015 14,946 12,375 $ 32,422 $ 27,683 $ 92,904 $ 82,842 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic Earnings Per Common Share | The following tables set forth the computation of basic earnings per common share and diluted earnings per common share (in thousands except for per share amounts): Basic earnings per common share: Three Months Ended Nine Months Ended Class A Class B Class A Class B Distributed earnings $ 0.11 $ 0.11 $ 0.33 $ 0.33 Undistributed losses (0.02) (0.02) (0.05) (0.05) Total $ 0.09 $ 0.09 $ 0.28 $ 0.28 Distributed earnings $ 3,488 $ 201 $ 10,426 $ 602 Undistributed losses (708) (41) (1,727) (100) Total $ 2,780 $ 160 $ 8,699 $ 502 Basic weighted average common shares outstanding 31,668 1,822 31,471 1,822 Three Months Ended Nine Months Ended Class A Class B Class A Class B Distributed earnings $ 0.11 $ 0.11 $ 0.33 $ 0.33 Undistributed losses (0.04) (0.04) (0.17) (0.17) Total $ 0.07 $ 0.07 $ 0.16 $ 0.16 Distributed earnings $ 3,396 $ 201 $ 10,142 $ 602 Undistributed losses (1,214) (72) (5,387) (320) Total $ 2,182 $ 129 $ 4,755 $ 282 Basic weighted average common shares outstanding 30,806 1,822 30,663 1,822 |
Diluted Earnings Per Share for Class A Common Shares Using If-Converted Method | Diluted EPS for Class A Common Shares Using the If-Converted Method Three Months Ended January 31, 2022 Undistributed Class A EPS* Per Basic $ 2,780 31,668 $ 0.09 Common Stock Equivalents — 1,088 — 2,780 32,756 0.09 Class B Common Share Conversion* 160 1,822 — Diluted EPS for Class A Common Shares $ 2,940 34,578 $ 0.09 Nine Months Ended January 31, 2022 Undistributed Class A EPS* Per Basic $ 8,699 31,471 $ 0.28 Common Stock Equivalents — 1,032 — 8,699 32,503 0.27 Class B Common Share Conversion 502 1,822 — Diluted EPS for Class A Common Shares $ 9,201 34,325 $ 0.27 Three Months Ended January 31, 2021 Undistributed Class A EPS* Per Basic $ 2,182 30,806 $ 0.07 Common Stock Equivalents — 665 — 2,182 31,471 0.07 Class B Common Share Conversion 129 1,822 — Diluted EPS for Class A Common Shares $ 2,311 33,293 $ 0.07 Nine Months Ended January 31, 2021 Undistributed Class A EPS* Per Basic $ 4,755 30,663 $ 0.16 Common Stock Equivalents — 622 — 4,755 31,285 0.15 Class B Common Share Conversion 282 1,822 — Diluted EPS for Class A Common Shares $ 5,037 33,107 $ 0.15 |
Diluted Earnings Per Share for Class B Common Shares Using Two-Class Method | Diluted EPS for Class B Common Shares Using the Two-Class Method Three Months Ended January 31, 2022 Undistributed Class B EPS* Per Basic $ 160 1,822 $ 0.09 Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares 2 — — Diluted EPS for Class B Common Shares $ 162 1,822 $ 0.09 Nine Months Ended January 31, 2022 Undistributed Class B EPS* Per Basic $ 502 $ 1,822 $ 0.28 Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares 4 — — Diluted EPS for Class B Common Shares $ 506 1,822 $ 0.28 Three Months Ended January 31, 2021 Undistributed Class B EPS* Per Basic $ 129 1,822 $ 0.07 Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares 2 — — Diluted EPS for Class B Common Shares $ 131 1,822 $ 0.07 Nine Months Ended January 31, 2021 Undistributed Class B EPS* Per Basic $ 282 $ 1,822 $ 0.16 Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares 6 — — Diluted EPS for Class B Common Shares $ 288 1,822 $ 0.16 _______________ *Amounts adjusted for rounding |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our assets and liabilities that we measured at fair value on a recurring basis as of January 31, 2022 and April 30, 2021, and indicate the fair value hierarchy of the valuation techniques we used to determine such fair value (in thousands): January 31, 2022 Quoted Prices Significant Significant Balance Cash equivalents $ 89,285 $ — $ — $ 89,285 Marketable securities 16,463 — — 16,463 Total $ 105,748 $ — $ — $ 105,748 April 30, 2021 Quoted Prices Significant Significant Balance Cash equivalents 81,720 — — 81,720 Marketable securities 15,332 674 — 16,006 Total 97,052 674 — 97,726 |
Industry Segments (Tables)
Industry Segments (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Operating Profit or Loss | In the following table, we have broken down the intersegment transactions applicable to the three and nine months ended January 31, 2022 and 2021 (in thousands): Three Months Ended January 31, Nine Months Ended January 31, 2022 2021 2022 2021 Revenue: Supply Chain Management $ 26,061 $ 22,646 $ 75,692 $ 66,679 IT Consulting 5,842 4,543 15,544 14,602 Other 519 494 1,668 1,561 $ 32,422 $ 27,683 $ 92,904 $ 82,842 Operating income\(loss): Supply Chain Management $ 7,458 $ 4,713 $ 19,531 $ 12,800 IT Consulting 506 83 1,005 292 Other (4,725) (3,861) (12,837) (10,641) $ 3,239 $ 935 $ 7,699 $ 2,451 Capital expenditures: Supply Chain Management $ 57 $ 152 $ 672 $ 236 IT Consulting — — — — Other 165 146 165 225 $ 222 $ 298 $ 837 $ 461 Capitalized software: Supply Chain Management $ — $ 233 $ — $ 604 IT Consulting — — — — Other — — — — $ — $ 233 $ — $ 604 Depreciation and amortization: Supply Chain Management $ 907 $ 1,149 $ 2,889 $ 4,150 IT Consulting — — — 2 Other 93 98 281 289 $ 1,000 $ 1,247 $ 3,170 $ 4,441 Earnings\(loss) before income taxes: Supply Chain Management $ 7,458 $ 4,803 $ 19,377 $ 13,023 IT Consulting 506 83 1,005 290 Other (4,633) (2,519) (11,224) (8,140) $ 3,331 $ 2,367 $ 9,158 $ 5,173 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | Apr. 30, 2021 | |
Revenue Recognition [Line Items] | |||||
Amounts received for reimbursement of travel and other out-of-pocket expenses | $ 28,000 | $ 0 | $ 69,000 | $ 16,000 | |
Deferred revenue recognized | 17,500,000 | 34,400,000 | |||
Total deferred commissions | 38,200,000 | 38,200,000 | $ 37,682,000 | ||
Impairment losses | 0 | 0 | $ 0 | 0 | |
Minimum | |||||
Revenue Recognition [Line Items] | |||||
Contractual period of maintenance contract | 1 year | ||||
Maximum | |||||
Revenue Recognition [Line Items] | |||||
Contractual period of maintenance contract | 3 years | ||||
Sales Commissions | |||||
Revenue Recognition [Line Items] | |||||
Total deferred commissions | 3,500,000 | $ 3,500,000 | $ 3,900,000 | ||
Amortization of sales commissions | $ 500,000 | $ 500,000 | $ 1,500,000 | $ 1,400,000 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Balances (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Apr. 30, 2021 |
Contract Balances: | ||
Deferred revenue, current | $ 38,095 | $ 37,142 |
Deferred revenue, long-term | 105 | 540 |
Total deferred revenue | $ 38,200 | $ 37,682 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Jan. 31, 2022USD ($) |
Revenue from Contract with Customer [Abstract] | |
Transaction price allocated to remaining performance obligations | $ 129 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining revenue to be recognized | 46.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Revenues: | ||||
Revenues | $ 32,422 | $ 27,683 | $ 92,904 | $ 82,842 |
Domestic | ||||
Revenues: | ||||
Revenues | 27,334 | 23,668 | 77,958 | 70,467 |
International | ||||
Revenues: | ||||
Revenues | $ 5,088 | $ 4,015 | $ 14,946 | $ 12,375 |
Declaration of Dividend Payab_2
Declaration of Dividend Payable (Details) - $ / shares | Nov. 17, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 |
Dividends [Abstract] | |||||
Cash dividends declared per common share (in usd per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.33 | $ 0.33 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 31, 2022shares | Jan. 31, 2021shares | Jan. 31, 2022$ / sharesshares | Jan. 31, 2021shares | Apr. 30, 2021 | |
Earnings Per Share [Line Items] | |||||
Share conversion ratio | 1 | 1 | |||
Options to purchase excluded (in shares) | 890,783 | 775,087 | 858,210 | 1,669,870 | |
Options to purchase outstanding (in shares) | 4,743,104 | 4,405,329 | 4,743,104 | 4,405,329 | |
Class A Common Shares | |||||
Earnings Per Share [Line Items] | |||||
Dividends preference (in usd per share) | $ / shares | $ 0.05 |
Earnings Per Common Share - Bas
Earnings Per Common Share - Basic Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Total (in usd per share) | [1] | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 |
Basic weighted aveage common shares outstanding (in shares) | 33,490,000 | 32,628,000 | 33,293,000 | 32,485,000 | |
Class A Common Shares | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Distributed earnings (in usd per share) | $ 0.11 | $ 0.11 | $ 0.33 | $ 0.33 | |
Undistributed losses (in usd per share) | (0.02) | (0.04) | (0.05) | (0.17) | |
Total (in usd per share) | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 | |
Distributed earnings | $ 3,488 | $ 3,396 | $ 10,426 | $ 10,142 | |
Undistributed losses | (708) | (1,214) | (1,727) | (5,387) | |
Total | $ 2,780 | $ 2,182 | $ 8,699 | $ 4,755 | |
Basic weighted aveage common shares outstanding (in shares) | 31,668,000 | 30,806,000 | 31,471,000 | 30,663,000 | |
Class B Common Shares | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Distributed earnings (in usd per share) | $ 0.11 | $ 0.11 | $ 0.33 | $ 0.33 | |
Undistributed losses (in usd per share) | (0.02) | (0.04) | (0.05) | (0.17) | |
Total (in usd per share) | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 | |
Distributed earnings | $ 201 | $ 201 | $ 602 | $ 602 | |
Undistributed losses | (41) | (72) | (100) | (320) | |
Total | $ 160 | $ 129 | $ 502 | $ 282 | |
Basic weighted aveage common shares outstanding (in shares) | 1,822,000 | 1,822,000 | 1,822,000 | 1,822,000 | |
[1] | Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A shares are shown above. Diluted earnings per share for Class B shares under the two-class method are $0.09 and $0.07 for the three months ended January 31, 2022 and 2021 and $0.28 and $0.16 for the nine months ended January 31, 2022 and 2021. See Note D to the Condensed Consolidated Financial Statements. |
Earnings Per Common Share - Dil
Earnings Per Common Share - Diluted Earnings per Share for Class A Common Shares Using If-Converted Method (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Basic weighted aveage common shares outstanding (in shares) | 33,490,000 | 32,628,000 | 33,293,000 | 32,485,000 | |
Diluted, Class A Common Shares (in shares) | 34,578,000 | 33,293,000 | 34,325,000 | 33,107,000 | |
Basic EPS (in usd per share) | [1] | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 |
Class A Common Shares | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Undistributed & distributed earnings | $ 2,780 | $ 2,182 | $ 8,699 | $ 4,755 | |
Undistributed & distributed earnings, class B conversion | 160 | 129 | 502 | 282 | |
Net earnings | $ 2,940 | $ 2,311 | $ 9,201 | $ 5,037 | |
Basic weighted aveage common shares outstanding (in shares) | 31,668,000 | 30,806,000 | 31,471,000 | 30,663,000 | |
Common Stock Equivalents (in shares) | 1,088,000 | 665,000 | 1,032,000 | 622,000 | |
Weighted average shares including common stock equivalents, diluted (in shares) | 32,756,000 | 31,471,000 | 32,503,000 | 31,285,000 | |
Class B Conversion (in shares) | 1,822,000 | 1,822,000 | 1,822,000 | 1,822,000 | |
Diluted, Class A Common Shares (in shares) | 34,578,000 | 33,293,000 | 34,325,000 | 33,107,000 | |
Basic EPS (in usd per share) | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 | |
Diluted EPS (in usd per share) | [1] | $ 0.09 | $ 0.07 | $ 0.27 | $ 0.15 |
[1] | Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A shares are shown above. Diluted earnings per share for Class B shares under the two-class method are $0.09 and $0.07 for the three months ended January 31, 2022 and 2021 and $0.28 and $0.16 for the nine months ended January 31, 2022 and 2021. See Note D to the Condensed Consolidated Financial Statements. |
Earnings Per Common Share - D_2
Earnings Per Common Share - Diluted Earnings per Share for Class B Common Shares Using Two-Class Method (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Basic weighted aveage common shares outstanding (in shares) | 33,490,000 | 32,628,000 | 33,293,000 | 32,485,000 | |
Diluted EPS for class B common shares (in shares) | 34,578,000 | 33,293,000 | 34,325,000 | 33,107,000 | |
Basic EPS (in usd per share) | [1] | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 |
Class B Common Shares | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Undistributed & distributed earnings | $ 160 | $ 129 | $ 502 | $ 282 | |
Reallocation of undistributed earnings/losses from Class A Common Shares to Class B Common Shares | 2 | 2 | 4 | 6 | |
Net earnings | $ 162 | $ 131 | $ 506 | $ 288 | |
Basic weighted aveage common shares outstanding (in shares) | 1,822,000 | 1,822,000 | 1,822,000 | 1,822,000 | |
Diluted EPS for class B common shares (in shares) | 1,822,000 | 1,822,000 | 1,822,000 | 1,822,000 | |
Basic EPS (in usd per share) | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 | |
Diluted EPS (in usd per share) | $ 0.09 | $ 0.07 | $ 0.28 | $ 0.16 | |
[1] | Basic per share amounts are the same for Class A and Class B shares. Diluted per share amounts for Class A shares are shown above. Diluted earnings per share for Class B shares under the two-class method are $0.09 and $0.07 for the three months ended January 31, 2022 and 2021 and $0.28 and $0.16 for the nine months ended January 31, 2022 and 2021. See Note D to the Condensed Consolidated Financial Statements. |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||||
Option to purchase common stock (in shares) | 1,438,500 | 1,340,000 | ||
Stock-based compensation expense | $ 1,100,000 | $ 700,000 | $ 2,910,000 | $ 1,901,000 |
Income tax excess benefit | 326,682 | $ 232,882 | $ 1,900,000 | $ 500,000 |
Stock options exercised (in shares) | 678,129 | 462,321 | ||
Total intrinsic value of options exercised | $ 9,100,000 | $ 2,800,000 | ||
Unrecognized compensation cost related to unvested stock option | $ 13,100,000 | $ 13,100,000 | ||
Weighted average period for unrecognized compensation cost | 2 years |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Apr. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 89,285 | $ 81,720 |
Marketable securities | 16,463 | 16,006 |
Total | 105,748 | 97,726 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 89,285 | 81,720 |
Marketable securities | 16,463 | 15,332 |
Total | 105,748 | 97,052 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 674 |
Total | 0 | 674 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Total | $ 0 | $ 0 |
Stock Repurchases (Details)
Stock Repurchases (Details) - Class A Common Shares - USD ($) $ in Millions | 233 Months Ended | |
Jan. 31, 2022 | Aug. 19, 2002 | |
Equity, Class of Treasury Stock [Line Items] | ||
Common stock shares repurchased (in shares) | 4,588,632 | |
Cost of common stock repurchased | $ 25.6 | |
Shares Stock Repurchase Plan, August 19, 2002 | ||
Equity, Class of Treasury Stock [Line Items] | ||
Approved number of shares to be repurchased (in shares) | 2,000,000 | |
Common stock shares repurchased (in shares) | 1,053,679 | |
Cost of common stock repurchased | $ 6.2 |
Industry Segments - Additional
Industry Segments - Additional Information (Details) | 9 Months Ended |
Jan. 31, 2022segmentsupplyChain | |
Segment Reporting [Abstract] | |
Number of major operating segments | segment | 3 |
Number of supply chain process areas | supplyChain | 8 |
Industry Segments - Segment Inf
Industry Segments - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 32,422 | $ 27,683 | $ 92,904 | $ 82,842 |
Operating income\(loss) | 3,239 | 935 | 7,699 | 2,451 |
Capital expenditures | 222 | 298 | 837 | 461 |
Capitalized software | 0 | 233 | 0 | 604 |
Depreciation and amortization | 1,000 | 1,247 | 3,170 | 4,441 |
Earnings\(loss) before income taxes | 3,331 | 2,367 | 9,158 | 5,173 |
Supply Chain Management | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 26,061 | 22,646 | 75,692 | 66,679 |
Operating income\(loss) | 7,458 | 4,713 | 19,531 | 12,800 |
Capital expenditures | 57 | 152 | 672 | 236 |
Capitalized software | 0 | 233 | 0 | 604 |
Depreciation and amortization | 907 | 1,149 | 2,889 | 4,150 |
Earnings\(loss) before income taxes | 7,458 | 4,803 | 19,377 | 13,023 |
IT Consulting | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 5,842 | 4,543 | 15,544 | 14,602 |
Operating income\(loss) | 506 | 83 | 1,005 | 292 |
Capital expenditures | 0 | 0 | 0 | 0 |
Capitalized software | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 2 |
Earnings\(loss) before income taxes | 506 | 83 | 1,005 | 290 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 519 | 494 | 1,668 | 1,561 |
Operating income\(loss) | (4,725) | (3,861) | (12,837) | (10,641) |
Capital expenditures | 165 | 146 | 165 | 225 |
Capitalized software | 0 | 0 | 0 | 0 |
Depreciation and amortization | 93 | 98 | 281 | 289 |
Earnings\(loss) before income taxes | $ (4,633) | $ (2,519) | $ (11,224) | $ (8,140) |
Subsequent Event (Details)
Subsequent Event (Details) - $ / shares | Feb. 16, 2022 | Nov. 17, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 |
Subsequent Event [Line Items] | ||||||
Cash dividends declared per common share (in usd per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.33 | $ 0.33 | |
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividends declared per common share (in usd per share) | $ 0.11 |