# EDGAR Filing Document

**Accession Number:** 0000713425
**File Stem:** 0001157523-23-000348
**Filing Date:** 2023-2
**Character Count:** 43050
**Document Hash:** 3d3e9906c6af5a78ccfe0706b0773f83
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001157523-23-000348.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001157523-23-000348

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230223

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AMERICAN SOFTWARE INC
- **CENTRAL INDEX KEY:** 0000713425
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **IRS NUMBER:** 581098795
- **STATE OF INCORPORATION:** GA
- **FISCAL YEAR END:** 0430

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-12456
- **FILM NUMBER:** 23659594

**BUSINESS ADDRESS:**
- **STREET 1:** 470 E PACES FERRY RD NE
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30305
- **BUSINESS PHONE:** 4042614381

**MAIL ADDRESS:**
- **STREET 1:** 470 EAST PACES FERRY ROAD NE
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30305

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

------

### FORM 8-K

#### CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 23, 2023

### AMERICAN SOFTWARE, INC.
(Exact Name of Registrant as Specified in Charter)

Commission File Number 000-12456

<u>Georgia</u> <br> <u>58-1098795</u> <br>(State or Other Jurisdiction (I.R.S. Employer <br> of Incorporation) Identification No.)

<u>470 East Paces Ferry Road, NE, Atlanta, Georgia 30305</u>

(Address of principal executive offices)

<u>(404) 261-4381</u>

Registrant's telephone number, including area code

<u>Not Applicable</u>

(Former Name or former address, if changed since last report)

---

| | |
|:---|:---|
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
| ☐<br>| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐<br>| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐<br>| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐<br>| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |

---

**Securities registered pursuant to**

**Section 12(b) of the Act:**

*Title of each class* <br> *Trading Symbol* <br> *Name of each exchange on which registered* <br>Common Stock AMSWA NASDAQ Global Select Market

---

| | |
|:---|:---|
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
| ☐<br>| Emerging Growth Company |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financing accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financing accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |

---

------

**ITEM 2.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RESULTS OF OPERATIONS AND FINANCIAL CONDITION**

On February 23, 2023, American Software, Inc. (the "Company") issued a press release announcing its preliminary financial results for the third quarter of fiscal year 2023 ended January 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report.

The information in this Current Report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be "filed" for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any previous or future filings by the Company under the Exchange Act or the Securities Act of 1933, as amended.

#### Operating and Non-GAAP Financial Measures in the Press Release
The Company includes non-GAAP financial measures (EBITDA, adjusted EBITDA, adjusted net earnings and adjusted net earnings per share) in the summary financial information provided with this press release as supplemental information relating to its operating results. This financial information is not in accordance with, or an alternative for, GAAP-compliant financial information and may be different from the operating or non-GAAP financial information used by other companies. The Company believes that this presentation of EBITDA, adjusted EBITDA, adjusted net earnings and adjusted net earnings per share provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations. EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, and income tax expense. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense/(benefit) and non-cash stock-based compensation expense.

**ITEM 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL STATEMENTS AND EXHIBITS**

(d) Exhibits.

Exhibit

NumberDescription

[99.1](a53342138ex99_1.htm)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Press Release of American Software, Inc., February 23, 2023.](a53342138ex99_1.htm)

------

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| **Date: February 23, 2023**  | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** |
|  | (Registrant) | (Registrant) |
|  | By: | /s/ Vincent C. Klinges |
|  | Name:&nbsp;&nbsp;&nbsp;&nbsp; Vincent C. Klinges | Name:&nbsp;&nbsp;&nbsp;&nbsp; Vincent C. Klinges |
|  | Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer  | Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer  |

---

## Exhibit 99.1

**Exhibit 99.1**<br>

**** 

<br> # **American Software Reports Third Quarter of Fiscal Year 2023 Results** 
 ***Subscription Fee Growth of 20% and Adjusted EBITDA Margin of 16%***

ATLANTA--(BUSINESS WIRE)--February 23, 2023--American Software, Inc. (NASDAQ: AMSWA) today reported preliminary financial results for the third quarter of fiscal year 2023.

 **Key Third Quarter Financial Highlights:**

* Subscription fees were $13.0 million for the quarter ended January 31, 2023, a 20% increase compared to $10.9 million for the same period last year, and software license revenues were $1.0 million for both the current and prior period last
 year. 

* Total revenues for the quarter ended January 31, 2023 decreased 4% to $31.0 million, compared to $32.4 million for the same period of the prior year, principally due to a decline in services revenue. 

* Recurring revenue streams for Maintenance and Cloud Subscriptions were $21.7 million or 70% of total revenues in the quarter ended January 31, 2023 compared to $20.0 million or 62% in the same period of the prior year. 

* Maintenance revenues for the quarter ended January 31, 2023 decreased 5% to $8.6 million compared to $9.1 million for the same period last year reflecting the shift to cloud revenue as a client preference. 

* Professional services and other revenues for the quarter ended January 31, 2023 decreased 27% to $8.3 million compared to $11.4 million for the same period last year. The decline was primarily driven by a 39% decrease in non-core project
 revenue in our IT Consulting business unit. For the Supply Chain business, professional services revenues for the quarter ended January 31, 2023 decreased by 15% to $4.6 million when compared to $5.4 million in the same period prior year due
 to an unusually slow holiday period. 

* Operating earnings for the quarter ended January 31, 2023 were $3.0 million compared to $3.2 million for the same period last year. 

* GAAP net earnings for the quarter ended January 31, 2023 increased 14% to $3.3 million or $0.10 per fully diluted share compared to $2.9 million or $0.09 per fully diluted share for the same period last year. 

* Adjusted net earnings for the quarter ended January 31, 2023, which excludes non-cash stock-based compensation expense and amortization of acquisition-related intangibles, increased 18% to $4.5 million or $0.13 per fully diluted share
 compared to $3.8 million or $0.11 per fully diluted share for the same period last year. 

* EBITDA decreased by 12% to $3.7 million for the quarter ended January 31, 2023 compared to $4.2 million for the same period last year. 

* Adjusted EBITDA was $5.0 million for the quarter ended January 31, 2023 compared to $5.3 million for the same period last year. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest
 income & other, net, income tax expense and non-cash stock-based compensation expense. 

------

 **Key Fiscal 2023 Year to Date Financial Highlights:**

* Subscription fees were $37.4 million for the nine months ended January 31, 2023, a 21% increase compared to $31.0 million for the same period last year, while Software license revenues were $2.0 million compared to $2.3 million for the
 same period last year. 

* Total revenues for the nine months ended January 31, 2023 were $93.7 million compared to $92.9 million for the same period last year. 

* Recurring revenue streams for Maintenance and Cloud Services were $63.8 million and $58.9 million or 68% and 63% of total revenues for the nine-month periods ended January 31, 2023 and 2021, respectively. 

* Maintenance revenues for the nine months ended January 31, 2023 were $26.4 million, a 5% decrease compared to $27.9 million for the same period last year. 

* Professional services and other revenues for the nine months ended January 31, 2023 decreased 12% to $27.9 million compared to $31.8 million for the same period last year. 

* For the nine months ended January 31, 2023, the Company reported operating earnings of approximately $8.3 million compared to $7.7 million for the same period last year, an 8% increase. 

* GAAP net earnings were approximately $7.6 million or $0.22 per fully diluted share for the nine months ended January 31, 2023, an 18% decrease compared to $9.2 million or $0.27 per fully diluted share for the same period last year. 

* Adjusted net earnings for the nine months ended January 31, 2023, which exclude stock-based compensation expense and amortization of acquisition-related intangibles, decreased 4% to $11.1 million or $0.33 per fully diluted share, compared
 to $11.6 million or $0.34 per fully diluted share for the same period last year. 

* EBITDA was $10.7 million for the nine months ended January 31, 2023 compared to $10.9 million for the same period last year. 

* Adjusted EBITDA increased 6% to $14.6 million for the nine months ended January 31, 2023 compared to $13.8 million for the nine months ended January 31, 2022. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of
 intangibles, depreciation, interest income & other, net, income tax expense/(benefit) and non-cash stock-based compensation. 

------

 **Key Third Quarter of Fiscal Year 2023 highlights:**

 **Clients & Channels**

* Notable new and existing customers placing orders with the Company in the third quarter include: Holly Frontier Corporation, Indorama Ventures Oxides, LLC., Johnstone Supply, Inc., Mom Enterprises, LLC, Mustad Netherlands B.V., and Sandvik
 Mining & Construction Tools AB. 

* During the quarter, SaaS subscription and software license agreements were signed with customers located in the following six countries: Australia, Mexico, the Netherlands, Sweden, the United Kingdom, and the United States. 

* We signed new channel partnership agreements with Bisonaire (Germany) and Anamind (India) to bolster Logility's presence in our regions. 

 **Company & Technology**

* Announced in November, sustainability-driven self-tanning brand Bondi Sands ramped up its recent implementation of Logility® Digital Supply Chain Platform. 

* In December, Logility was named a <u>2022 Top Software and Technology Provider by Food Logistics</u> for its work with Oregon dairy manufacturer Tillamook. 

* In January, Logility was named in the top 20 on the 2023 RIS Software Leaderboard based on factors including return on investment, innovation, total cost of operation, service, and customer satisfaction. 

* In January, Logility bolstered its leadership team with the appointment of Paul Greifenberger as EVP of America Sales and Lisa Henriott as SVP of Product Marketing. 

The overall financial condition of the Company remains strong, with cash and investments of approximately $105 million. During the third quarter of fiscal year 2023, the Company paid shareholder dividends of approximately $3.7 million.

"We were pleased to see our subscription revenue growth return to 20% and recurring revenues reach 70% of our total revenues for the quarter," said Allan Dow, CEO and President of American Software. "Considering the impact of economic uncertainty on our non-core services revenue and as we are continuing to see delays in new project starts, we are slightly lowering our guidance for total and recurring revenue. However, we are maintaining our adjusted EBITDA expectations to reflect the strong performance to date and prudent management of expenses."

------

 **Fiscal Year 2023 Financial Outlook**

* Total revenues of $123.5 million to $125.5 million, including total recurring revenues of $84.5 million to $85.5 million. 

* Adjusted EBITDA of $18.0 million to $20.0 million. 

 **About American Software, Inc.**

Atlanta-based American Software, Inc. (**NASDAQ: AMSWA**), through its operating entity Logility delivers an innovative technical platform that enables enterprises to accelerate their digital supply chain transformation from product concept to client availability via the Logility® Digital Supply Chain Platform, a single platform spanning Product, Demand, Inventory, Supply, Sourcing, Deploy, Corporate Responsibility (ESG) and Network Optimization aligned with Integrated Business Planning.

Serving clients such as Big Lots, Carter's, Destination XL, Hostess, Husqvarna Group, Jockey International, Johnson Controls, Parker Hannifin, Red Wing Shoe Company, Spanx, Dole Fresh Vegetables, Inc., and Fender Musical Instrument Co, our solutions are marketed and sold through a direct sales team as well as an indirect global value-added reseller ("VAR") distribution network.

Fueled by supply chain master data, allowing for the automation of critical business processes through the application of artificial intelligence and machine learning algorithms to a variety of internal and external data streams, the comprehensive Logility portfolio delivered in the cloud includes advanced analytics , supply chain visibility, demand, inventory and replenishment planning, Sales and Operations Planning (S&OP), Integrated Business Planning (IBP), supply and inventory optimization, manufacturing planning and scheduling, network design and optimization (NDO), retail merchandise and assortment planning and allocation, product lifecycle management (PLM), sourcing management, vendor quality and compliance, and product traceability. For more information about Logility, please visit www.logility.com. Logility is a wholly-owned subsidiary and operating entity for American Software, Inc. (NASDAQ: AMSWA). You can learn more about American Software at www.amsoftware.com, or by calling (404) 364-7615 or emailing kliu@amsoftware.com.

 **Operating and Non-GAAP Financial Measures**

The Company includes non-GAAP financial measures (EBITDA, adjusted EBITDA, adjusted net earnings and adjusted net earnings per share) in the summary financial information provided with this press release as supplemental information relating to its operating results. This financial information is not in accordance with, or an alternative for, GAAP-compliant financial information and may be different from the operating or non-GAAP financial information used by other companies. The Company believes that this presentation of EBITDA, adjusted EBITDA, adjusted net earnings and adjusted net earnings per share provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations. EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, and income tax expense. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense/(benefit) and non-cash stock-based compensation expense.

 **Forward Looking Statements**

This press release contains forward-looking statements that are subject to substantial risks and uncertainties. There are a number of factors that could cause actual results or performance to differ materially from what is anticipated by statements made herein. These factors include, but are not limited to, continuing U.S. and global economic uncertainty and the timing and degree of business recovery; the irregular pattern of the Company's revenues; dependence on particular market segments or customers; competitive pressures; market acceptance of the Company's products and services; technological complexity; undetected software errors; potential product liability or warranty claims; risks associated with new product development; the challenges and risks associated with integration of acquired product lines, companies and services; uncertainty about the viability and effectiveness of strategic alliances; the Company's ability to satisfy in a timely manner all Securities and Exchange Commission (SEC) required filings and the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the rules and regulations adopted under that Section; as well as a number of other risk factors that could affect the Company's future performance. For further information about risks the Company could experience as well as other information, please refer to the Company's current Form 10-K and other reports and documents subsequently filed with the SEC. For more information, contact: Kevin Liu, American Software, Inc., (626) 657-0013 or email kliu@amsoftware.com.

Logility® is a registered trademark of Logility, Inc. Other products mentioned in this document are registered, trademarked or service marked by their respective owners.

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** |
| **Consolidated Statements of Operations Information** | **Consolidated Statements of Operations Information** | **Consolidated Statements of Operations Information** | **Consolidated Statements of Operations Information** | **Consolidated Statements of Operations Information** | **Consolidated Statements of Operations Information** | **Consolidated Statements of Operations Information** |
| **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** |
|  | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** |
|  | **2023**  | **2022**  | **Pct Chg.**  | **2023**  | **2022**  | **Pct Chg.**  |
| Revenues: |  |  |  |  |  |  |
| Subscription fees | $13003  | $10856  | 20% | $37391  | $31005  | 21% |
| License fees | 1017  | 992  | 3% | 2025  | 2289  | (12 %) |
| Professional services & other | 8342  | 11443  | (27 %) | 27945  | 31751  | (12 %) |
| Maintenance | 8649  | 9131  | (5 <br> %)  | 26384  | 27859  | (5 <br> %)  |
| Total Revenues | 31011  | 32422  | (4 <br> %)  | 93745  | 92904  | 1 <br> %  |
| Cost of Revenues: |  |  |  |  |  |  |
| Subscription services | 4005  | 3431  | 17% | 11682  | 10059  | 16% |
| License fees | 358  | 240  | 49% | 541  | 597  | (9 %) |
| Professional services & other | 6303  | 8012  | (21 %) | 20454  | 22499  | (9 %) |
| Maintenance | 1607  | 1789  | (10 <br> %)  | 4757  | 5509  | (14 <br> %)  |
| Total Cost of Revenues | 12273  | 13472  | (9 <br> %)  | 37434  | 38664  | (3 <br> %)  |
| Gross Margin | 18738  | 18950  | (1 <br> %)  | 56311  | 54240  | 4 <br> %  |
| Operating expenses: |  |  |  |  |  |  |
| Research and development | 4402  | 4602  | (4 %) | 13220  | 13304  | (1 %) |
| Sales and marketing | 5325  | 5222  | 2% | 16934  | 17234  | (2 %) |
| General and administrative | 6030  | 5834  | 3% | 17796  | 15844  | 12% |
| Amortization of acquisition-related intangibles | 25  | 53  | (53 %) | 81  | 159  | (49 %) |
| Total Operating Expenses | 15782  | 15711  | 0 <br> %  | 48031  | 46541  | 3 <br> %  |
| Operating Earnings | 2956  | 3239  | (9 <br> %)  | 8280  | 7699  | 8 <br> %  |
| Interest Income & Other, Net | 1334  | 92  | nm  | 1308  | 1459  | (10 <br> %)  |
| Earnings Before Income Taxes | 4290  | 3331  | 29% | 9588  | 9158  | 5% |
| Income Tax Expense/(Benefit) | 950  | 391  | 143 <br> %  | 2034  | (43 )  | nm  |
| Net Earnings | $3340  | $2940  | 14 <br> %  | $7554  | $9201  | (18 <br> %)  |
| **Earnings per common share: (1)** |  |  |  |  |  |  |
| Basic | $0.10  | $0.09  | 11 <br> %  | $0.22  | $0.28  | (21 <br> %)  |
| Diluted | $0.10  | $0.09  | 11 <br> %  | $0.22  | $0.27  | (19 <br> %)  |
| **Weighted average number of common shares outstanding:** |  |  |  |  |  |  |
| Basic | 33759  | 33490  |  | 33711  | 33293  |  |
| Diluted | 33965  | 34578  |  | 34006  | 34325  |  |
| *nm- not meaningful* |  |  |  |  |  |  |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** |
| **NON-GAAP MEASURES OF PERFORMANCE** | **NON-GAAP MEASURES OF PERFORMANCE** | **NON-GAAP MEASURES OF PERFORMANCE** | **NON-GAAP MEASURES OF PERFORMANCE** | **NON-GAAP MEASURES OF PERFORMANCE** | **NON-GAAP MEASURES OF PERFORMANCE** | **NON-GAAP MEASURES OF PERFORMANCE** | **NON-GAAP MEASURES OF PERFORMANCE** | **NON-GAAP MEASURES OF PERFORMANCE** | **NON-GAAP MEASURES OF PERFORMANCE** | **NON-GAAP MEASURES OF PERFORMANCE** |
| **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** | **(In thousands, except per share data, unaudited)** |
|  | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** |
|  | **2023**  | **2023**  | **2022**  | **2022**  | **Pct Chg.**  | **2023**  | **2023**  | **2022**  | **2022**  | **Pct Chg.**  |
| **NON-GAAP Operating Earnings:** |  |  |  |  |  |  |  |  |  |  |
| **Operating Earnings (GAAP Basis)** | $| 2956  | $| 3239  | (9 %) | $| 8280  | $| 7699  | 8% |
| Amortization of acquisition-related intangibles |  | 233  |  | 53  | 340% |  | 601  |  | 159  | 278% |
| Stock-based compensation |  | 1294  |  | 1093  | 18 <br> %  |  | 3943  |  | 2910  | 35 <br> %  |
| **NON-GAAP Operating Earnings:** |  | 4483  |  | 4385  | 2 <br> %  |  | 12824  |  | 10768  | 19 <br> %  |
| **Non-GAAP Operating Earnings, as a % of revenue** |  | 14 <br> %  |  | 14 <br> %  |  |  | 14 <br> %  |  | 12 <br> %  |  |
|  | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** |
|  | **2023**  | **2023**  | **2022**  | **2022**  | **Pct Chg.**  | **2023**  | **2023**  | **2022**  | **2022**  | **Pct Chg.**  |
| **NON-GAAP EBITDA:** |  |  |  |  |  |  |  |  |  |  |
| **Net Earnings (GAAP Basis)** | $| 3340  | $| 2940  | 14% | $| 7554  | $| 9201  | (18 %) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income Tax Expense/(Benefit) |  | 950  |  | 391  | 143% |  | 2034  |  | (43 ) | nm  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest Income & Other, Net |  | (1334 ) |  | (92 ) | nm  |  | (1308 ) |  | (1459 ) | (10 %) |
| Amortization of intangibles |  | 495  |  | 810  | (39 %) |  | 1582  |  | 2626  | (40 %) |
| Depreciation |  | 292  |  | 191  | 53 <br> %  |  | 805  |  | 544  | 48 <br> %  |
| **EBITDA (earnings before interest, taxes, depreciation and amortization)** |  | 3743  |  | 4240  | (12 <br> %)  |  | 10667  |  | 10869  | (2 <br> %)  |
| Stock-based compensation |  | 1294  |  | 1093  | 18 <br> %  |  | 3943  |  | 2910  | 35 <br> %  |
| **Adjusted EBITDA** | $ | 5037  | $ | 5333  | (6 <br> %)  | $ | 14610  | $ | 13779  | 6 <br> %  |
| **EBITDA, as a percentage of revenues** |  | 12 <br> %  |  | 13 <br> %  |  |  | 11 <br> %  |  | 12 <br> %  |  |
| **Adjusted EBITDA, as a percentage of revenues** |  | 16 <br> %  |  | 16 <br> %  |  |  | 16 <br> %  |  | 15 <br> %  |  |
|  | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** |
|  | **2023**  | **2023**  | **2022**  | **2022**  | **Pct Chg.**  | **2023**  | **2023**  | **2022**  | **2022**  | **Pct Chg.**  |
| **NON-GAAP EARNINGS PER SHARE:** |  |  |  |  |  |  |  |  |  |  |
| **Net Earnings (GAAP Basis)** | $| 3340  | $| 2940  | 14% | $| 7554  | $| 9201  | (18 %) |
| Amortization of acquisition-related intangibles (2) |  | 182  |  | 41  | 344% |  | 470  |  | 126  | 273% |
| Stock-based compensation (2) |  | 1012  |  | 848  | 19 <br> %  |  | 3094  |  | 2304  | 34 <br> %  |
| **Adjusted Net Earnings** | $ | 4534  | $ | 3829  | 18 <br> %  | $ | 11118  | $ | 11631  | (4 <br> %)  |
| **Adjusted non-GAAP diluted earnings per share** | $ | 0.13  | $ | 0.11  | 18 <br> %  | $ | 0.33  | $ | 0.34  | (3 <br> %)  |
|  | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** |
|  | **2023**  | **2023**  | **2022**  | **2022**  | **Pct Chg.**  | **2023**  | **2023**  | **2022**  | **2022**  | **Pct Chg.**  |
| **NON-GAAP Earnings Per Share** |  |  |  |  |  |  |  |  |  |  |
| **Net Earnings (GAAP Basis)** | $| 0.10  | $| 0.09  | 11% | $| 0.22  | $| 0.27  | (19 %) |
| Amortization of acquisition-related intangibles (2) |  | -  |  | -  | -  | $| 0.02  |  | -  | -  |
| Stock-based compensation (2) | $ | 0.03  |  | 0.02  | 50 <br> %  | $ | 0.09  |  | 0.07  | 29 <br> %  |
| **Adjusted Net Earnings** | $ | 0.13  | $ | 0.11  | 18 <br> %  |  | 0.33  | $ | 0.34  | (3 <br> %)  |
|  | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Third Quarter Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** | **January 31,** |
|  | **2023**  | **2023**  | **2022**  | **2022**  | **Pct Chg.**  | **2023**  | **2023**  | **2022**  | **2022**  | **Pct Chg.**  |
| **Amortization of acquisition-related intangibles** |  |  |  |  |  |  |  |  |  |  |
| Cost of Subscription Services | $| 208  | $| -  | -  | $| 521  | $| -  | -  |
| Operating expenses |  | 25  |  | 53  | (53 <br> %)  |  | 81  |  | 159  | (49 <br> %)  |
| **Total amortization of acquisition-related intangibles** | $ | 233  | $ | 53  | 340 <br> %  | $ | 602  | $ | 159  | 279 <br> %  |
| **Stock-based compensation** |  |  |  |  |  |  |  |  |  |  |
| Cost of revenues | $| 70  | $| 59  | 19% | $| 178  | $| 188  | (5 %) |
| Research and development |  | 145  |  | 106  | 37% |  | 437  |  | 273  | 60% |
| Sales and marketing |  | 152  |  | 145  | 5% |  | 568  |  | 462  | 23% |
| General and administrative |  | 927  |  | 783  | 18 <br> %  |  | 2760  |  | 1987  | 39 <br> %  |
| **Total stock-based compensation** | $ | 1294  | $ | 1093  | 18 <br> %  | $ | 3943  | $ | 2910  | 35 <br> %  |
| (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 per share for Class B shares under the two-class method are $0.10 and $0.22 for the three and nine months ended January 31, 2023, respectively. Diluted per share for Class B shares under the two-class method are $0.09 and $0.28 for the three and nine months ended January 31, 2022, respectively.  | (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 per share for Class B shares under the two-class method are $0.10 and $0.22 for the three and nine months ended January 31, 2023, respectively. Diluted per share for Class B shares under the two-class method are $0.09 and $0.28 for the three and nine months ended January 31, 2022, respectively.  | (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 per share for Class B shares under the two-class method are $0.10 and $0.22 for the three and nine months ended January 31, 2023, respectively. Diluted per share for Class B shares under the two-class method are $0.09 and $0.28 for the three and nine months ended January 31, 2022, respectively.  | (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 per share for Class B shares under the two-class method are $0.10 and $0.22 for the three and nine months ended January 31, 2023, respectively. Diluted per share for Class B shares under the two-class method are $0.09 and $0.28 for the three and nine months ended January 31, 2022, respectively.  | (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 per share for Class B shares under the two-class method are $0.10 and $0.22 for the three and nine months ended January 31, 2023, respectively. Diluted per share for Class B shares under the two-class method are $0.09 and $0.28 for the three and nine months ended January 31, 2022, respectively.  | (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 per share for Class B shares under the two-class method are $0.10 and $0.22 for the three and nine months ended January 31, 2023, respectively. Diluted per share for Class B shares under the two-class method are $0.09 and $0.28 for the three and nine months ended January 31, 2022, respectively.  | (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 per share for Class B shares under the two-class method are $0.10 and $0.22 for the three and nine months ended January 31, 2023, respectively. Diluted per share for Class B shares under the two-class method are $0.09 and $0.28 for the three and nine months ended January 31, 2022, respectively.  | (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 per share for Class B shares under the two-class method are $0.10 and $0.22 for the three and nine months ended January 31, 2023, respectively. Diluted per share for Class B shares under the two-class method are $0.09 and $0.28 for the three and nine months ended January 31, 2022, respectively.  | (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 per share for Class B shares under the two-class method are $0.10 and $0.22 for the three and nine months ended January 31, 2023, respectively. Diluted per share for Class B shares under the two-class method are $0.09 and $0.28 for the three and nine months ended January 31, 2022, respectively.  | (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 per share for Class B shares under the two-class method are $0.10 and $0.22 for the three and nine months ended January 31, 2023, respectively. Diluted per share for Class B shares under the two-class method are $0.09 and $0.28 for the three and nine months ended January 31, 2022, respectively.  | (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 per share for Class B shares under the two-class method are $0.10 and $0.22 for the three and nine months ended January 31, 2023, respectively. Diluted per share for Class B shares under the two-class method are $0.09 and $0.28 for the three and nine months ended January 31, 2022, respectively.  |
| (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended January 31, 2022, respectively.  | (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended January 31, 2022, respectively.  | (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended January 31, 2022, respectively.  | (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended January 31, 2022, respectively.  | (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended January 31, 2022, respectively.  | (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended January 31, 2022, respectively.  | (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended January 31, 2022, respectively.  | (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended January 31, 2022, respectively.  | (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended January 31, 2022, respectively.  | (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended January 31, 2022, respectively.  | (2) - Tax affected using the effective tax rate excluding a discrete item related to excess tax benefit for stock options for the three and nine month periods ended January 31, 2023 of 21.8% and 21.9% and 22.4% and 20.8% for the three and nine month periods ended January 31, 2022, respectively.  |
| *nm- not meaningful* | *nm- not meaningful* | *nm- not meaningful* | *nm- not meaningful* | *nm- not meaningful* | *nm- not meaningful* | *nm- not meaningful* | *nm- not meaningful* | *nm- not meaningful* | *nm- not meaningful* | *nm- not meaningful* |

---

------

---

| | | |
|:---|:---|:---|
| **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** |
| **Consolidated Balance Sheet Information** | **Consolidated Balance Sheet Information** | **Consolidated Balance Sheet Information** |
| **(In thousands)** | **(In thousands)** | **(In thousands)** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | **January 31,** | **April 30,** |
|  | **2023**  | **2022**  |
| Cash and Cash Equivalents | $80606  | $110690  |
| Short-term Investments | 23847  | 16826  |
| Accounts Receivable: |  |  |
| Billed | 32183  | 20619  |
| Unbilled | 2352  | 2989  |
| Total Accounts Receivable, net | 34535  | 23608  |
| Prepaids & Other | 5575  | 5067  |
| Current Assets | 144563  | 156191  |
| Investments - Non-current | 484  | -  |
| PP&E, net | 6502  | 3654  |
| Capitalized Software, net | 605  | 1586  |
| Goodwill | 29558  | 25888  |
| Other Intangibles, net | 2376  | 147  |
| Deferred Sales Commissions - Non-current | 1544  | 2050  |
| Lease Right of Use Assets | 544  | 935  |
| Other Non-current Assets | 3888  | 2384  |
| Total Assets | $190064  | $192835  |
| Accounts Payable | $4007  | $2506  |
| Accrued Compensation and Related costs | 3027  | 6918  |
| Dividend Payable | 3715  | 3700  |
| Operating Lease Obligation - Current | 440  | 541  |
| Other Current Liabilities | 2805  | 1871  |
| Deferred Revenues - Current | 40706  | 41953  |
| Current Liabilities | 54700  | 57489  |
| Operating Lease Obligation - Non-current | 144  | 461  |
| Deferred Tax Liability - Non-current | -  | 1772  |
| Other Long-term Liabilities | 224  | 137  |
| Long-term Liabilities | 368  | 2370  |
| Total Liabilities | 55068  | 59859  |
| Shareholders' Equity | 134996  | 132976  |
| Total Liabilities & Shareholders' Equity | $190064  | $192835  |

---

---

| | | |
|:---|:---|:---|
| **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** | **AMERICAN SOFTWARE, INC.** |
| **Condensed Consolidated Cashflow Information** | **Condensed Consolidated Cashflow Information** | **Condensed Consolidated Cashflow Information** |
| **(In thousands)** | **(In thousands)** | **(In thousands)** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **January 31,** | **January 31,** |
|  | **2023**  | **2022**  |
| **Net cash provided by operating activities** | $(10466 ) | $14050  |
| Purchases of property and equipment, net of disposals | (3655 ) | (801 ) |
| Purchase of business, net of cash acquired | (6500 ) | -  |
| **Net cash used in investing activities** | (10155 ) | (801 ) |
| Dividends paid | (11117 ) | (10957 ) |
| Proceeds from exercise of stock options | 1654  | 7405  |
| **Net cash used in financing activities** | (9463 ) | (3552 ) |
| Net change in cash and cash equivalents | (30084 ) | 9697  |
| Cash and cash equivalents at beginning of period | 110690  | 88658  |
| **Cash and cash equivalents at end of period** | $80606  | $98355  |

---

## Contacts
Financial Information Press Contact: <br>Vincent C. Klinges <br> Chief Financial Officer <br> American Software, Inc. <br> (404) 264-5477