Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Q3 FY2010 Earnings Presentation
18 slides from Agilysys's earnings presentation, Feb 11, 2010
Slide 1: Agilysys, Inc. (Nasdaq: AGYS) February 2010
Agilysys, Inc. (Nasdaq: AGYS) February 2010
Slide 2: Forward looking statements & non-GAAP financial information
Forward looking statements & non-GAAP financial information Forward-Looking Language This presentation contains certain management expectations, which may constitute forward-looking information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchang
Slide 3: Agilysys: overview
Agilysys: overview Formed: 1963 Ticker symbol: AGYS (NASDAQ) Market capitalization: $200+ million Capital structure as of 9/30/09: Debt-free w/$24M cash Fiscal 2009* sales: $731 million Markets served as % of revenue: 98% North America 2% Asia and Europe Employees: 1,200 Corporate HQ: Solon, Ohio Qu
Slide 4: Agilysys: strengths
Agilysys: strengths One of the largest resellers and system integrators in North America (#1 Sun & top five IBM, HP & EMC reseller in North America) Best in class software products for hospitality industry Industry leader Diversified business Streamlined cost structure One of the most diverse resell
Slide 5: Agilysys: evolution
Agilysys: evolution 2003 2004 2005 2006 2007 2008 Today TSG RSG HSG Continues to grow HP and IBM solution provider business Establishes EMC relationship and signs EMC agreement May 2005: Acquires CTS: Enhances offering of comprehensive storage solutions Apr 2007: Acquires Stack Computer Jul 2007: Ac
Slide 6: Agilysys: go-to-market
Agilysys: go-to-market Business segments Financial Profile Primary markets Capabilities and solutions Hospitality solutions Independent software vendor/ developer Rev. TTM1: $85M Adj. EBITDA1,2: $13.8M Hotel casinos Full-service hotels Destination resorts Conference centers Condominiums Restaurants
Slide 7: Agilysys: revenue mix
Agilysys: revenue mix Hardware Software Services East 456.9 85.3 120.6 Hardware Software Services East 62.3 6 37.5 Hardware Software Services East 375.8 63.4 30.6 Agilysys Revenue Mix HSG Revenue Mix RSG Revenue Mix TSG Revenue Mix Hardware Software Services Recurring Svcs. East 16.7 16.1 24.3 28.7
Slide 8: HSG: solutions
HSG: solutions Primary Secondary
Slide 9: RSG: solutions
RSG: solutions Services Enterprise hardware - RSG supplies IBM System i, System p and System x servers as well as IBM and EMC storage solutions Point-of-sale - RSG sells IBM POS terminals, which are "retail-hardened" to enhance uptime and longevity Peripherals - RSG is one of the largest resellers o
Slide 10: TSG: solutions
TSG: solutions Enterprise class products targeted toward complex and powerful server and storage solutions Require significant investments in customer facing sales, technical solutions architects, delivery systems engineers, vendor certifications and extensive training TSG provides a broad range of
Slide 11: Q3 review: consolidated results
Q3 review: consolidated results Hardware revenue increased 12%, services decreased 39% and software decreased 1% from prior year SG&A, excluding depr. & amort., decreased $3.9M primarily due to lower professional fees and T&E Adjusted EBITDA, excluding charges, decreased $5.5M primarily due to lower
Slide 12: FY10 fiscal-to-date review: consolidated results
FY10 fiscal-to-date ("FTD") review: consolidated results Revenue declined 12.3% HSG revenue decreased 18.8% RSG revenue decreased 16.2% TSG revenue decreased 10.0% SG&A, excl. depr. & amort., decreased by $24.1M primarily due to significant cost saving initiatives Other income increased $6.0M primar
Slide 13: Quarterly revenue
Quarterly revenue Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Sep '09 Dec '09 EBITDA 117 118.7 161.4 111 89.8 109 159 Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Sep '09 Dec '09 Organic 25 23.4 27.9 23.6 16 23 22.5 HSG Revenue ($Mil.) TSG Revenue ($Mil.) Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Sep '09 Dec '
Slide 14: Q3 review: summary balance sheet performance
Q3 review: summary balance sheet performance Cash at Dec. 31st was $24.4M - a decrease of $23.8M from 9/30/09 largely due to: Paying vendor $16.6M to take advantage of early-pay discount Seasonal investment in working capital related to higher sales Cash at Dec. 31st does not include $2.4M distribut
Slide 15: Outlook
Outlook IT capital spending environment has stabilized compared to early 2009 IT growth outlook remains uncertain for calendar year 2010 Expect corporate customers to remain cautious in early calendar 2010 waiting further indications of economic recovery Remain focused on managing costs and working
Slide 16: EBITDA Reconciliation
Agilysys, Inc. (Nasdaq: AGYS) EBITDA Reconciliation
Slide 17: Reconciliation of net income/(loss) to adjusted EBITDA
Reconciliation of net income/(loss) to adjusted EBITDA
Slide 18: Reconciliation of segment TTM operating income to adjusted EBITDA
Reconciliation of segment TTM operating income to adjusted EBITDA HSG Segment RSG Segment TSG Segment