MICROS Systems, Inc. (MCRS) F4Q 2011 Earnings Call August 25, 2011 4:45 p.m. ET Executives Tom Giannopoulos - Chairman, President & Chief Executive Officer Peter Rogers, Jr. - Executive Vice President, Investor Relations and Business Development Cynthia Russo - Executive Vice President, Chief Financial Officer Thomas Patz - Executive Vice President, Strategic Initiatives, and General Counsel Analysts Daniel Perlin - RBC Capital Markets Terry Tillman - Raymond James Ross Macmillan - Jefferies & Co. Gil Luria - Wedbush Securities Bhavan Suri - William Blair & Company Brad Reback - Oppenheimer Mayank Tandon - Needham & Company Keith Housum - Northcoast Research Presentation Operator
MICROS undertakes no duty to update any forward-looking statements to conform to actual results or changes in MICROS expectations. Other risks and uncertainties associated with MICROS business are identified in the management’s discussion and analysis of financial condition, results of operations and business and investment risk sections of MICROS SEC filings. Tom?Tom Giannopoulos Okay, thanks, Peter. Our financial results for the quarter and the fiscal year were excellent under any circumstances but especially when you consider the global events turmoil of the past 18 months. We had an outstanding year and for the fiscal year of course we had double digit revenue growth. 10.2% from $9.14 million last year to $1.007 billion. We had record gross margin at 55.58% versus last year’s 54.93%. A record income from operations at $225 million, which is plus 25.3% from last year’s $180 million which was also 19.7% last year versus 22.41% this year. Record income before taxes at 229 – all these numbers of course are non-GAAP numbers, $229.6 million or 22.7% versus last year’s $185.273 million and the growth there between the 185 and 229 is 23.97%. Record net income at 15.7%, $158 million, versus last year’s $127 million, at that’s a 24.5% growth year-to-year. A record EPS, $1.92 versus $1.57, a 22.3% growth. Record cash at $826.5 million, and that’s an increase of $221.3 million from last year. This is cash in investments. Our market value for the fiscal year increased by $1.46 billion. That’s June to June. And our stock price in the fiscal year of 2011 reached an all time high of $52.92 on April 27, 2011. For Q4 specifically, this fiscal year when compared to last year the results were equally as impressive. Revenue growth of 10.4% from $248 million to $274 million, gross margin ratio improvement from 54.9% to 56.51%. Income from operations, growth of 25.38% from $54 million to $67 million. And income from operations ratio growth from 21.83% to 24.78%. All these are impressive numbers for our fiscal year and the quarter. I will ask Cindy to give you the details on the additional numbers.
Cynthia RussoThanks, Tom. The highlights for the balance sheet for the quarter and the year are as follows. MICROS had $826.5 million of cash and investments June 30. This is an increase of $23.7 million from our last announcement and an increase of $221.3 million or 36.6% from the beginning of the fiscal year. The cash break-out between international subsidiaries and our domestic segment remains at 58% international, 42% domestic. During the year the company generated $199.6 million of cash from operations and $183.3 million of free cash flow. Purchases of property, plant and equipment amount $10.7 million, while MICROS capitalized $5.6 million in the year for its next generation software offering. The net sales of investments increased cash growth $70.7 million, simply due to the timing of our investment maturities. On the financing end, the company received $35.8 million from the exercise of stock options and the related tax benefit and spent $33.4 million on the repurchase of common stock. During the fiscal year we purchased a total of 708,000 shares of which 444,000 were purchased in the fourth quarter. Thus far in Q1 MICROS has purchased 429,000 shares of common stock at an average price of $43.76 per share. Days sales outstanding at quarter end were 59.7 days compared to 62.2 days last quarter. International DSOs were 70.7 days while domestic DSOs were 47.5. Our inventory balance of 38.1 million is an increased of 2.4 million from the prior quarter. In addition to an increased due to exchange, the balance also reflects our shipments of the new Workstation 2015 released in August 2011. Read the rest of this transcript for free on seekingalpha.com