Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Investor Presentation (September 2018)
30 slides from Agilysys's investor presentation, Sep 12, 2018
Slide 1: Investor Presentation September 2018
Investor Presentation September 2018
Slide 2: Forward-looking Statements & Non-GAAP Financial Information
Forward-looking Statements & Non-GAAP Financial Information TECHNOLOGY | INNOVATION | SOLUTIONS Forward-Looking Language This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward- loo
Slide 3: Who We Are / What We Do
WHO WE ARE / WHAT WE DO
Slide 4: Agilysys Mission
Agilysys Mission TECHNOLOGY | INNOVATION | SOLUTIONS HELP OUR CUSTOMERS IMPROVE GUEST EXPERIENCE AND LOYALTY WHATEVER IT TAKES, INCLUDING INTEGRATION WITH 3rd PARTY PARTNERS WITH DEDICATION TO PAST, PRESENT & FUTURE CUSTOMER INVESTMENTS IN OUR PRODUCTS AND SERVICES 4
Slide 5: Agilysys Overview
Agilysys Overview TECHNOLOGY | INNOVATION | SOLUTIONS • Agilysys is a Technology Solutions Company Exclusively SaaS/On-Prem Reservations Focused on the Hospitality Industry Solutions Analytics Guest • Our Solutions Are Mission Critical to Core Hospitality Operations Optimization Value - These System
Slide 6: We Provide Industry Leading Hospitality Solutions
We Provide Industry Leading Hospitality Solutions TECHNOLOGY | INNOVATION | SOLUTIONS PROPERTY POINT-OF-SALE MANAGEMENT 61% of Revenue 27% of Revenue F&B Solutions Lodging Solutions ~48k end points at 6/30/18 ~264k rooms at 6/30/18 +18% since 6/30/17 +6% since 6/30/17 9% of Revenue DOCUMENT INVENTOR
Slide 7: Agilysys Products
Agilysys Products TECHNOLOGY | INNOVATION | SOLUTIONS Well-Established rGuest Food & Beverage Lodging Cross-Functional 7
Slide 8: What Sets Agilysys Apart
What Sets Agilysys Apart TECHNOLOGY | INNOVATION | SOLUTIONS Pure Hospitality Hospitality is all We Do Because our Business is 100% Focused on this Industry Comprehensive Solutions Agilysys has the Broadest Software Offerings with the Deepest Functionality in the Market Obsessively Customer Centric
Slide 9: What Makes Agilysys Solutions Different?
What Makes Agilysys Solutions Different? TECHNOLOGY | INNOVATION | SOLUTIONS Average Customer Life Staff From Line Level Roles Within Greater Than 10 Years Industries We Serve World Class Customer Best Practice Solution Service Capabilities ContinuousCompetitive End-to-End Guest ImprovementStrengths
Slide 10: We Serve Leading Hospitality Brands
We Serve Leading Hospitality Brands TECHNOLOGY | INNOVATION | SOLUTIONS Gaming – 54% of Revenue Hotels, Resorts and Cruise – 25% of Revenue FoodFood Service – 19% of Revenue Restaurants, Universities, Stadia and Healthcare – 2% of Revenue Note: Revenue contribution figures represent percentage for t
Slide 11: Strategic Initiatives
Strategic Initiatives TECHNOLOGY | INNOVATION | SOLUTIONS INCREASED PRODUCT DEVELOPMENT VELOCITY GREATER PROCESS EFFICIENCIES INNOVATION AND EXECUTION GOALS EMPLOYEE & LEADERSHIP DEVELOPMENT PROFITABLE REVENUE GROWTH INTERNATIONAL EXPANSION 11
Slide 12: Recent Achievements
Recent Achievements Fiscal 2017 Q4 began a focus on cost control and TECHNOLOGY | INNOVATION | SOLUTIONS aligning Achievements Under New Management Team: resources to position Agilysys • Three Consecutive Quarters of Sequential Revenue Growth for consistent profitable growth • Record Revenue Achieve
Slide 13: Hospitality Market
Hospitality Market TECHNOLOGY | INNOVATION | SOLUTIONS ARR Market Opportunity ARR Product Opportunity $4.8 Billion $4.8 Billion SA $0.35B 7% APAC $1.36B PMS 28% $1.61B NA 34% $1.72B POS 37% $3.18B 66% EMEA $1.36B 28% Agilysys Revenue ~ $127.5M* *Trailing twelve months ended June 30, 2018. 13
Slide 14: Growing Need for Agilysys Products
Growing Need for Agilysys Products TECHNOLOGY | INNOVATION | SOLUTIONS • Guests Increasingly Demand “New” Tech • New Guest Experience Solutions: Mobile, Self-Service, Preference-Based, Social-Aware • Competition for Our Customers to Get Ahead of the Technology Curve • Few Vendors Focused Solely on H
Slide 15: Go To Market Strategy
Go To Market Strategy TECHNOLOGY | INNOVATION | SOLUTIONS OBSESSIVELY CUSTOMER CENTRIC IN EVERY MARKET WE SERVE ENGINEERING DRIVEN COMPANY 116% ~30% FY19 increase in YTD developer improvement capacity since in customer Jan 2017 retention vs. FY18 15
Slide 16: Growth in Engineering Capacity
Growth in Engineering Capacity TECHNOLOGY | INNOVATION | SOLUTIONS Jan 1, 2017 Aug 31, 2018 Growth R&D 229 435 90% Developers 134 290 116% Total Headcount 725 860 19% R&D/HC 32% 51% Developers/HC 18% 34% Contractors 102 23 16
Slide 17: India Development Center
India Development Center TECHNOLOGY | INNOVATION | SOLUTIONS • 34,000 Square Feet • 330 Employee Capacity • 295 Out of 310 Current Employees are Technical Staff Chennai 17
Slide 18: Senior Management Leading New Growth Vision
Senior Management Leading New Growth Vision TECHNOLOGY | INNOVATION | SOLUTIONS RAMESH SRINIVASAN - President and Chief Executive Officer Ramesh is an accomplished CEO with leadership and turnaround success across multiple industries resulting in rapid and sustainable long-term growth and significan
Slide 19: Senior Management Leading New Growth Vision
Senior Management Leading New Growth Vision TECHNOLOGY | INNOVATION | SOLUTIONS KYLE C. BADGER - Senior Vice President, General Counsel and Secretary Kyle leads our global legal and human resources teams, and brings over 22 years of legal experience representing public and private companies in gener
Slide 20: Financial Overview
FINANCIAL OVERVIEW Agilysys, .
Slide 21: Evolving Business, Evolving P&L
Evolving Business, Evolving P&L TECHNOLOGY | INNOVATION | SOLUTIONS Financial Metrics and Valuation (*TTM) Business Metrics (as of 6/30/18) Share Price (9/7/18) $15.57 Direct POS End Points Managed ~48k Diluted Shares Outstanding 23.1M Y/Y Growth 18% Diluted Market Capitalization $359.7M Direct Hote
Slide 22: Strong Balance Sheet
Strong Balance Sheet TECHNOLOGY | INNOVATION | SOLUTIONS Consolidated Balance Sheet (in thousands) March 31, 2018 June 30, 2018 Cash, Cash Equivalents and Marketable Securities $39,943 $35,076 Other Current Assets 23,981 32,765 Long-Term Assets 93,283 94,387 Total Assets $157,207 $162,228 Current Li
Slide 23: Historical Financial Results - Trailing Twelve Months
Historical Financial Results - Trailing Twelve Months TECHNOLOGY | INNOVATION | SOLUTIONS Revenue - GAAP Net Loss - GAAP $130,000 $127,678 $127,360 $127,502 ($1,000) $125,000 Record ($6,000) ($3,765) Revenue $120,366 Quarter ($7,128) $120,000 (Q1’19) ($11,000) ($8,350) ($11,721) $115,000 ($16,000) F
Slide 24: Non-GAAP Profitability Metrics - Quarterly
Non-GAAP Profitability Metrics - Quarterly TECHNOLOGY | INNOVATION | SOLUTIONS Adjusted EBITDA – Non-GAAP^ Adjusted Earnings from Operations–Non GAAP^ $3,500 $3,061 $3,113 $564 $500 $237 $2,500 $2,310 ($500) $2,069 $1,640 ($1,500) ($1,158) $1,500 Q3-FY18 ($1,909) ($2,500) included $700K of $500 cape
Slide 25: Estimated 10% - 20% Four-Year Revenue Growth CAGR
Estimated 10% - 20% Four-Year Revenue Growth CAGR TECHNOLOGY | INNOVATION | SOLUTIONS Revenue Possibilities 290 270 250 230 210 190 170 150 130 FY18 FY19 FY20 FY21 FY22 20% CAGR 15% CAGR 10% CAGR Targeting AOE of between 10%-20% of Revenue by FY2021 (begins April 2020) 25
Slide 26: Appendix
APPENDIX
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation TECHNOLOGY | INNOVATION | SOLUTIONS AGILYSYS, INC. RECONCILIATION OF NET LOSS TO ADJUSTED EARNINGS FROM OPERATIONS (UNAUDITED) Twelve Months Ended March 31 (In thousands) TTM* 2018 2017 2016 Net loss $ (7,128) $ (8,350) $ (11,721) $ (3,765) Income tax expense (benefit) (3,379
Slide 28: Cash Flow
Cash Flow TECHNOLOGY | INNOVATION | SOLUTIONS TTM* FY18 FY17 FY16 Operating activities Loss from continuing operations $ (7,128) $ (8,350) $ (11,721) $ (3,765) Non cash adjustments, restructuring, legal settlements 16,227 16,586 14,110 7,741 Changes in assets & liabilities (3,104) (1,362) 1,044 3,24
Slide 29: Agilysys Global Footprint
Agilysys Corporate Headquarters Agilysys Global Footprint • Alpharetta, Georgia Agilysys US Offices • Las Vegas, Nevada • Santa Barbara, California • Bellevue, Washington Agilysys EMEA Office Windsor, UK • United Kingdom Seattle, WA Las Vegas, NV Agilysys APAC Offices Santa Barbara, CA Alpharetta, G
Slide 30: Contact
Contact: Tony Pritchett Richard Land / Norberto Aja Chief Financial Officer JCIR (770) 810-7941 (212) 835-8500 InvestorRelations@agilysys.com agys@jcir.com 30