MICROS Systems (MCRS)
Q4 2013 Earnings Call
August 22, 2013 4:45 pm ET
Peter J. Rogers - Executive Vice President of Investor Relations & Business Development
Peter A. Altabef - Chief Executive Officer, President and Director
Cynthia A. Russo - Chief Financial Officer, Principal Accounting officer and Executive Vice President
Mayank Tandon - Needham & Company, LLC, Research Division
Daniel R. Perlin - RBC Capital Markets, LLC, Research Division
Terrell Frederick Tillman - Raymond James & Associates, Inc., Research Division
Arvind Rajamohan - Stifel, Nicolaus & Co., Inc., Research Division
Keith M. Housum - Northcoast Research
Brian Murphy - Sidoti & Company, LLC
Previous Statements by MCRS
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I would now like to turn the call over to Peter Rogers. Please go ahead, sir.
Peter J. Rogers
Thank you, Patra [ph]. Good afternoon, ladies and gentlemen. On behalf of the entire MICROS team assembled today, let me thank you for joining us to discuss our fiscal 2013 full year and fourth quarter results. I'm here today with Peter Altabef, our President and CEO; Cynthia Russo, our CFO; and Thomas Patz, our Chief Legal Counsel and EVP of Strategic Initiatives. I will start by reading our Safe Harbor statement and turn the call over to Peter for his comments.
Safe Harbor statements. Some of the comments today are forward-looking statements that involve risks and uncertainties, such as the uncertainties of product demand and market acceptance; the impact of competitor products and pricing on margins; the ability to obtain on acceptable terms the right to incorporate in MICROS' products and services, technology patented by others; environmental and health-related events; unanticipated tax liabilities; and the effects of terrorist activity and armed conflict.
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 and results of operations, and Business and Investment Risk sections of MICROS' SEC filings. Additionally, we will post our financial fact and data sheets in the Investor Relations sections of our website, www.micros.com, after this call. We'll also file our fiscal 2013 10-K this evening. Peter?
Peter A. Altabef
Thank you, Peter, and good afternoon, everyone. Let me start with a high-level review of our results before providing some color on what we are seeing in our businesses and then discuss our fiscal 2014 guidance. We finished fiscal year 2013 with revenue of $1.268 billion, an increase of $160.6 million over fiscal 2012, a growth rate of 14.5%.
Our fiscal 2013 non-GAAP net income was $191.9 million, an increase of $9.3 million over fiscal 2012, a growth rate of 5.1%. Our fiscal year 2013 non-GAAP EPS was $2.38, an increase of $0.16 over fiscal 2012, a growth rate of 7.2%.
Our revenue grew faster than our net income and EPS. The difference is primarily attributable to our acquisition of Torex, which has lower-profit margins than core MICROS. The fiscal year results are all records for MICROS.
For the fourth fiscal quarter, our revenue non-GAAP net income and non-GAAP EPS were $328.6 million, $48.9 million and $0.62, respectively. These results are in line with the guidance we provided in our April conference call. Particularly given the still challenging macro environment, our performance reflects the fact that we have built a balanced global business. Our multiple verticals and geographies provide a natural hedge against short-term volatility in any one area. Reflective of our global reach, in fiscal 2013, international represented 60.7% of our revenue while the U.S./Canada region represented 39.3%.
Geographically, the Europe/Africa/Middle East region referred to as EAME, grew 39.8% on a fiscal year basis and 24.4% quarter-over-quarter. Organically, EAME declined 1.8% on a fiscal year basis and grew 2.2% on a quarter-over-quarter basis. The Asia-Pacific region grew 10.7% on a fiscal year basis and 28.1% quarter-over-quarter. Latin America grew 11.8% on a fiscal year basis and 8.1% quarter-over-quarter. The U.S./Canada region declined 4.5% on a fiscal year basis and 8.6% quarter-over-quarter.
At first glance, the U.S./Canada quarter-to-quarter results leave much to be desired, but U.S./Canada had very strong numbers a year ago, so we had a difficult comparison. U.S./Canada results for the fourth quarter showed a sequential increase over the third fiscal quarter of $7.2 million, a growth rate of 5.9%; and as you'll hear in my commentary, there are good things happening in the U.S./Canada region in fiscal 2014. We expect all regions to grow organically in 2014.
In terms of our verticals, let me start with the food and beverage vertical, which we previously referred to as restaurants. This vertical's revenue grew 2.9% on a fiscal year basis and 5.4% quarter-over-quarter, and we are seeing increased demand in fiscal 2014.
For example, we are pleased that SONIC has selected MICROS as its strategic enterprise solution partner. The rollout will start in SONIC's corporate stores and in new openings and then extend to its franchise locations. SONIC has over 3,500 locations. SONIC is a new client, and we're thrilled to welcome them to the MICROS family. Del Frisco's restaurants is another new client win, where we were selected for their more than 30 high-end table service restaurants. Auntie Anne's Pretzels added our SaaS-based iCare loyalty solution globally to enhance our e7 platform. In addition, Compass Group North America signed with us for deployment of Simphony in their multiple food service divisions, and Simphony continues to gain momentum with over 10,800 sites installed.