MANA Manatron (MM)

Highlights: - Net revenue growth of 15.1% for the full year - Software license fees for FY 07 increased by nearly 100% to $5.3 million vs. FY 06 - Gross margin grew to 53% for the quarter compared to 31% for FY 06 - Operating income was $1.2 million for FY 07, a positive swing of over $8 million compared to the operating loss of $6.9 million for FY 06 - Cash and short-term investments increased $3.4 million to $7.6 million at year-end after paying down acquisition related debt of nearly $3 million and repurchasing $490,000 of Manatron stock during FY 07 - New GRM(R) contracts totaling $5.8 million were signed during the fourth quarter KALAMAZOO, Mich., June 28 /PRNewswire-FirstCall/ -- Manatron, Inc. (NASDAQ:MANA) the nation's leading provider of property tax solutions for state and local governments, announced its financial results for the fourth quarter and full year of fiscal 2007, which ended on April 30, 2007. For the fourth quarter, the Company reported net revenues of $10.1 million, a slight increase over the net revenues of $9.9 million that were recognized in the prior year fourth quarter. This marked the fourth consecutive quarter in which revenues exceeded $10 million. The Company's gross margin grew to $5.4 million, or 53.1 percent of net revenues in the fourth quarter, compared to $3.1 million or 31.4 percent of net revenues for the same period in fiscal 2006. Operating income improved to $311,000 for the quarter, a positive swing of $2.6 million versus the operating loss of $2.3 million that was reported for fourth quarter of the prior fiscal year. Net income after taxes was $328,000, or $0.06 per diluted share, compared to a net loss of $1.6 million or $(0.33) per diluted share for the three months ended April 30, 2006. For the full year, the Company reported net revenues of $41.8 million, which is a 15.1 percent increase over the net revenues of $36.3 million that were posted in fiscal 2006. Gross margin improved to $20.4 million, or 48.9 percent of net revenues, compared to $11.1 million, or 30.6 percent of net revenues in the prior year. Operating income improved to $1.2 million for the year, representing a positive swing of $8.1 million over the operating loss of $6.9 million that was reported last year. Net income was $946,000 or $0.19 per diluted share for the year ended April 30, 2007 compared to a net loss of $4.3 million or $(0.97) per diluted share for fiscal 2006. "Our financial performance during every quarter of fiscal 2007 showed marked improvement over the prior year," said Paul Sylvester, Manatron's Chief Executive Officer. "While much of this was due to a reduction in our payroll cost as a result of the restructuring we initiated a little over a year ago, the ASIX acquisition, further penetration of our GRM(R) software in the market and solid momentum in Ohio were major contributors to our progress in fiscal 2007. We have clearly moved forward toward our goal of positioning Manatron as the nation's leading provider of property tax solutions." "Our turn-key GRM(R) suite of software, built on Microsoft's .Net platform, continues to gain market acceptance as a standard for excellence and is benefitting from a more substantial and vocal list of reference accounts," added Bill McKinzie, Manatron's President and Chief Operating Officer. "In the last two fiscal years, we have announced over $15 million of new GRM(R) business in Kansas, Minnesota, Nevada, South Carolina and Tennessee. GRM(R) is scheduled to go live in six new states during fiscal 2008, which will significantly increase the number of satisfied clients using our new software and better equip us to enter new markets and expand our share of existing markets in the years ahead." Backlog for software license fees and services at the end of the fourth quarter was $21 million compared to $23 million at April 30, 2006. The Company reported that this number is exclusive of recurring revenue from software maintenance, hardware maintenance, e-government subscriptions, and printing and processing contracts, which currently approximates $21.7 million on an annualized basis. "Our backlog is lower than the prior year primarily because of a decrease in our appraisal service contracts and backlog during the past year," Mr. Sylvester continued. "We did meet our sales plan for fiscal 2007, signing $20.6 million of new contracts, which was an 8.5 percent increase over the $19.0 million that we signed in fiscal 2006. Over $5 million of the current year backlog amount relates to our recently announced GRM(R) contracts with Sedgwick County, Kansas, Wyandotte County, Kansas and Beaufort County, South Carolina. As a result, we expect to continue our current momentum in fiscal 2008." The Company finished the year with working capital of $5.1 million, $7.6 million in cash and short-term investments and no bank debt. Shareholders' equity was $24.5 million compared to $23.0 million as of April 30, 2006. Manatron also made payments of approximately $3 million on its seller-financed notes payable associated with previous acquisitions leaving a $2.2 million balance due at year end. The Company also repurchased 61,000 shares of its common stock totaling $490,000 for the year. Teleconference Information Management will discuss the results in a conference call, scheduled for 4:15 p.m. Eastern Time, on Thursday, June 28, 2007. Anyone interested in participating should call 888-694-4641 if calling within the United States or 973-582-2734 if calling internationally. There will be a playback available until July 5, 2007. To listen to the playback, please call 877-519-4471 if calling within the United States or 973-341-3080 if calling internationally. Please use pin number 8937213 for the replay. This call is being web cast by ViaVid Broadcasting and can be accessed at Manatron's website at http://www.manatron.com/. The web cast may also be accessed at ViaVid's website at http://www.viavid.net/. The web cast can be accessed until July 28, 2007 on either site. To access the web cast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player please visit: http://www.microsoft.com/windows/windowsmedia/en/download/default.asp. About Manatron, Inc.: Manatron is focused on providing software and services to enable state and local governments in North America to completely, fairly and efficiently assess real and personal property, and to bill and collect the related property taxes in their jurisdictions. The Company's software manages the entire property life cycle, which includes deed recording, land records, GIS (Geographic Information System) integration, valuation, assessment administration, personal property, business licenses, cashiering, tax billing and collection, delinquents and tax sales, and e- government. Manatron's revenues are primarily generated from software license fees, software maintenance fees, professional services, and sales of hardware and supplies. Professional services consist of data conversions, installation, training, project management, hardware maintenance, forms processing and printing, consulting and appraisal services. Manatron is headquartered in Portage, Michigan and has offices in Florida, Georgia, Illinois, Indiana, Minnesota, Ohio, Pennsylvania, and Washington. Manatron currently serves approximately 1,300 customers in 30 states and two Canadian territories. More information about Manatron, Inc. is available at the Company's site on the World Wide Web at http://www.manatron.com/. About GRM(R): GRM(R) is Manatron's fully integrated property management suite of software designed to manage and support the entire property life cycle, which includes deed recording, land records, GIS (Geographic Information System) integration, valuation, assessment administration, personal property, business licenses, cashiering, tax billing and collection, delinquents and tax sales, and e-government. Manatron GRM automates the operational, information and planning needs for Assessors, Auditors, Treasurers, Tax Collectors, Recorders and other state and local governmental officials so that they can completely, fairly and efficiently assess real and personal property and bill and collect the related property taxes in their jurisdictions. More information on this product is available at http://www.manatron.com/solutions/GRM.aspx. Safe Harbor Statement: The information provided in this news release may include forward-looking statements relating to future events, such as the development of new products, the commencement of production, or the future financial performance of the Company. Actual results may differ from such projections and are subject to certain risks including, without limitation, risks arising from: changes in the rate of growth of the local government market, increased competition in the industry, delays in developing and commercializing new products, adequacy of financing and other factors described in the Company's most recent annual report on Form 10-K filed with the Securities and Exchange Commission, which can be reviewed at http://www.sec.gov/. MANATRON, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS April 30, April 30, 2007 2006 (Audited) (Audited) ASSETS CURRENT ASSETS: Cash and equivalents $7,057,403 $3,714,685 Short-term investments 495,146 495,146 Accounts receivable, net 5,498,816 7,556,313 Income tax receivable 346,075 2,062,248 Revenues earned in excess of billings on long-term contracts 4,813,083 6,151,346 Unbilled retainages on long-term contracts 745,409 1,105,320 Notes receivable 256,874 450,565 Inventories 86,059 146,800 Deferred tax assets 1,002,412 1,273,651 Other current assets 387,312 485,525 Total current assets 20,688,589 23,441,599 NET PROPERTY AND EQUIPMENT 2,264,969 2,618,588 OTHER ASSETS: Notes receivable, less current portions 98,770 272,261 Computer software development costs, net of 3,699,498 2,610,216 accumulated amortization Goodwill 12,022,385 12,022,385 Intangible assets, net of accumulated amortization 2,240,763 3,202,935 Other, net 318,678 253,980 Total other assets 18,380,094 18,361,777 Total assets $41,333,652 $44,421,964 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $676,435 $898,301 Current portion of notes payable 1,500,000 2,700,000 Billings in excess of revenues earned on long-term contracts 1,198,357 3,373,271 Billings for future services 9,275,681 8,369,114 Accrued liabilities 2,926,399 3,419,286 Total current liabilities 15,576,872 18,759,972 DEFERRED INCOME TAXES 587,000 284,963 LONG-TERM PORTION OF NOTES PAYABLE 653,193 2,334,228 SHAREHOLDERS' EQUITY: Common stock 17,066,189 16,538,483 Retained earnings 7,450,398 6,504,318 Total shareholders' equity 24,516,587 23,042,801 Total liabilities and shareholders' equity $41,333,652 $44,421,964 MANATRON, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Year Ended April 30, April 30, (Unaudited) (Audited) 2007 2006 2007 2006 NET REVENUES $10,080,141 $9,909,583 $41,795,564 $36,324,396 COST OF REVENUES 4,728,732 6,795,931 21,366,969 25,194,840 Gross profit 5,351,409 3,113,652 20,428,595 11,129,556 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 5,040,696 4,853,308 19,217,163 17,491,957 RESTRUCTURING CHARGE -- (532,421) -- (532,421) Income (loss) from operations 310,713 (2,272,077) 1,211,432 (6,894,822) OTHER INCOME (EXPENSE), NET 95,338 (29,170) 185,439 177,908 Income (loss) before provision (credit) for 406,051 (2,301,247) 1,396,871 (6,716,914) income taxes PROVISION (CREDIT) FOR INCOME TAXES 78,191 (722,815) 450,791 (2,400,255) NET INCOME (LOSS) $327,860 $(1,578,432) $946,080 $(4,316,659) BASIC EARNINGS (LOSS) PER SHARE $.07 $(.33) $.19 $(.97) DILUTED EARNINGS (LOSS) PER SHARE $.06 $(.33) $.19 $(.97) BASIC WEIGHTED AVERAGE SHARES OUTSTANDING 4,899,412 4,808,776 4,896,086 4,463,838 DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 5,162,094 4,808,776 5,005,747 4,463,838 DATASOURCE: Manatron, Inc. CONTACT: Paul Sylvester, Co-Chairman and CEO of Manatron, Inc., +1-269-567-2900, ; or Cameron Donahue of Hayden Communications, Inc., +1-651-653-1854, , for Manatron, Inc. Web site: http://www.manatron.com/

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