Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the third quarter ended September 30, 2013.
Third Quarter Financial Highlights:
- Total revenue was $107.0 million in the third quarter of 2013, up 14.0 percent from $93.8 million in the third quarter of 2012. Organic revenue growth was 11.5 percent and acquisitions accounted for 2.5 percent growth.
- Recurring software revenue from maintenance and subscriptions was $64.5 million for the quarter, an increase of 15.6 percent compared to the third quarter of 2012, and comprised 60.3 percent of third quarter 2013 revenue.
- Operating income for the quarter was $17.9 million, a decrease of 4.3 percent from the third quarter of 2012.
- Net income for the quarter was $11.0 million, or $0.32 per diluted share, compared to $10.8 million, or $0.33 per diluted share, for the third quarter of 2012.
- Cash flow from operations for the quarter was $42.1 million, up 24.5 percent compared to $33.8 million for the third quarter of 2012.
- Non-GAAP operating income for the quarter was $23.1 million, up 3.7 percent from $22.3 million for the third quarter of 2012.
- Adjusted EBITDA for the quarter was $24.2 million, an increase of 2.9 percent, compared to $23.5 million for the third quarter of 2012.
- Non-GAAP net income for the quarter was $14.7 million, or $0.42 per diluted share, compared to $13.2 million, or $0.40 per diluted share, for the third quarter of 2012.
- Total backlog was $541.0 million at September 30, 2013, up 51.2 percent from $357.9 million at September 30, 2012. Software-related backlog (excluding appraisal services) was $517.6 million, an increase of 57.7 percent compared to $328.2 million at September 30, 2012. Backlog at September 30, 2013 included $71.5 million related to Tyler’s TexFile contract for an e-filing system for Texas courts, which was amended from a transaction-based arrangement to a fixed-price agreement.
“Tyler’s third quarter results were solid, with double-digit growth in all of our software-related revenue lines,” said John S. Marr Jr., Tyler’s president and chief executive officer. “Subscription revenues continue to be our fastest-growing line, increasing more than 34 percent as we added clients for our SaaS solutions and our e-filing offerings. However, as expected, our margins declined from last year as we incurred costs related to implementing the TexFile contract, as well as accelerated hiring to ensure we are well-positioned to deliver our current backlog and anticipated business. We expect that these costs will continue to pressure margins in the fourth quarter.
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