Epicor Software Corporation announced that based on its preliminary financial data, the Company expects total revenue for fiscal 2012 to be in the range of $866 to $870 million, compared to fiscal 2011 pro forma total revenue of $847 million, an increase of 2-3% from fiscal 2011. The Company expects Adjusted EBITDA to be in the range of $220 to $222 million for fiscal 2012 representing a 14% increase over the prior year Pro Forma Adjusted EBITDA of $194 million which was driven by increased revenue, as well as synergies achieved from the 2011 merger of Activant and Epicor. The Company expects the net loss for fiscal year 2012 to range from $36 million to $42 million as compared to a net loss of $56 million from Inception to September 30, 2011. In addition, the Company expects net debt to be approximately $1.2B as of September 30, 2012, yielding a net leverage ratio of approximately 5.4x.
Americas revenues grew approximately 4% in fiscal 2012 as compared to the prior year, with solid performance in both high-end Retail and ERP while low-end Retail continues to be challenged from weakness in the construction and housing markets. International revenues declined approximately 2%, however, Asia Pacific grew significantly year over year offset by a decline in EMEA due to the ongoing challenging economy. Next-generation Epicor ERP (formerly Epicor 9) revenue growth was in line with the overall business, and is expected to accelerate in fiscal 2013. Lastly, maintenance revenues grew steadily with renewal rates stable in the mid-90%.
Based on Solarsoft’s financial results, Epicor expects to achieve additional annual revenues of $85 million and EBITDA of $25 million from Solarsoft, which includes $3 million of expected synergies from the acquisition. On a pro forma combined company basis, fiscal 2012 revenues including Solarsoft would have been $953 million, Adjusted EBITDA would have been $246 million and net leverage would have
been 5.5x.
“Despite the challenging economic environment, particularly in Europe, we believe our strong performance in fiscal 2012 demonstrates that our product offerings continue to gain market share,” said Qureshi. “We continue to expand the reach of our enterprise business solutions for manufacturers, distributors, retailers and service organizations globally, selling into more markets than ever before, and as a result sales pipelines are strong. Epicor’s growth is driven by our deep understanding of the industries we serve and clear focus on customer satisfaction that drives business inspiration and innovation. Our recently launched ‘Business Inspired’ brand and messaging fully supports our customer- centric focus and core values—to deliver solutions and services that increase customer productivity and efficiency, freeing them to focus on growth and differentiation and inspiring new possibilities for their businesses.”
All results should be considered preliminary pending Epicor’s filing of its annual report on Form 10-K. Epicor is also scheduled to host a conference call in mid-December to discuss its fiscal 2012 fourth quarter and full year financial results. A news release will be distributed at a later date with further information and call details.
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