Descartes Reports Fiscal 2013 Third Quarter Financial Results
Record Operating Performance Driven by 15% Increase in Year-Over-Year Revenues
WATERLOO, Ontario, Nov. 29, 2012 (GLOBE NEWSWIRE) -- The Descartes Systems Group Inc. (Nasdaq:DSGX) (TSX:DSG) announced its financial results for the fiscal 2013 third quarter (Q3FY13) ended October 31, 2012. All financial results referenced are in United States (US) currency and, unless otherwise indicated, are determined in accordance with US Generally Accepted Accounting Principles (GAAP).
Q3FY13 Financial Results
As described in more detail below, key financial highlights for Descartes in Q3FY13 included:
- Revenues of $32.7 million, up 15% from $28.5 million in the third quarter of fiscal 2012 (Q3FY12) and up 7% from $30.5 million in the previous quarter (Q2FY13);
- Services revenues of $29.7 million, up 13% from $26.2 million in Q3FY12 and up 1% from $29.3 million in Q2FY13;
- Gross margin of 68%, up from 67% in Q3FY12 and 65% in Q2FY13;
- Net income of $3.1 million, up 15% from $2.7 million in Q3FY12 and up 24% from $2.5 million in Q2FY13;
- Earnings per share on a diluted basis of $0.05, up 25% from $0.04 in both Q3FY12 and Q2FY13;
- Days-sales-outstanding (DSO) for Q3FY13 were 59 days, up from 53 days in Q3FY12 and 55 days in Q2FY13;
- Adjusted EBITDA of $9.9 million, up 16% from $8.5 million in Q3FY12 and up 6% from $9.3 million in Q2FY13. Adjusted EBITDA as a percentage of revenues was 30%, consistent with 30% in both Q3FY12 and Q2FY13; and
- Adjusted EBITDA per diluted share of $0.16, up 16% from $0.13 in Q3FY12 and up 7% from $0.15 in Q2FY13.
Adjusted EBITDA and Adjusted EBITDA per diluted share are non-GAAP financial measures provided as a complement to financial results presented in accordance with GAAP. We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization (for which we include amortization of intangible assets, deferred compensation, stock-based compensation and related fees and taxes) and other charges (for which we include acquisition-related expenses and restructuring charges). These items are considered by management to be outside Descartes' ongoing operational results. We define Adjusted EBITDA per diluted share as Adjusted EBITDA divided by the number of diluted shares used to calculate the GAAP measure of earnings per share. A reconciliation of Adjusted EBITDA and Adjusted EBITDA per diluted share to net income and earnings per share determined in accordance with GAAP, respectively, is provided later in this release.
The following table summarizes Descartes' results in the categories specified below over the past 5 fiscal quarters (unaudited; dollar amounts, other than per share amounts, in millions):
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