Slide 1: Fiscal 2010 Unaudited Third Quarter Results
Agilysys, Inc. (Nasdaq: AGYS) Fiscal 2010 Unaudited Third Quarter Results February 3, 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: Q3 review: highlights
Q3 review: highlights Revenue grew 41% sequentially due to stabilizing demand environment - year-over-year revenue was down 2% Gross margin declined to 23.3% from 26.3% in fiscal Q3 2009 due to higher hardware content and lower services SG&A declined $7.0M primarily due to full-realization of previo
Slide 4: Q3 review: consolidated results
Q3 review: consolidated results Hardware revenue increased 13%, 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 $4.3M primarily due to lower
Slide 5: Q3 review: Hospitality (HSG)
Three Months Ended December 31 2009 2008 % Net sales $22.5 $27.9 (19.4%) Cost of goods sold $8.2 $12.8 (35.9%) Gross profit $14.3 $15.1 (5.3%) 63.6% 54.1% SG&A (excl. depr. & amort.) $9.4 $11.1 (16.0%) Depreciation & amortization $0.8 $0.8 (5.0%) Asset impairment charges $0.1 $0.0 nm Operating incom
Slide 6: Q3 review: Retail (RSG)
Three Months Ended December 31 2009 2008 % Net sales $37.7 $34.8 8.3% Cost of goods sold $30.3 $25.9 16.9% Gross profit $7.4 $8.9 (16.6%) 19.7% 25.6% SG&A (excl. depr. & amort.) $4.4 $4.7 (6.6%) Depreciation & amortization $0.1 $0.0 nm Operating income $2.9 $4.2 Depreciation & amortization $0.1 $0.0
Slide 7: Q3 review: Technology (TSG)
Q3 review: Technology (“TSG”) Three Months Ended December 31 2009 2008 % Net sales $160.1 $161.4 (0.8%) Cost of goods sold $130.5 $127.6 2.3% Gross profit $29.6 $33.8 (12.4%) 18.5% 20.9% SG&A (excl. depr. & amort.) $19.1 $17.9 6.9% Depreciation & amortization $0.8 $4.1 (80.2%) Operating income $9.6
Slide 8: Q3 review: Corporate
Q3 review: Corporate Three Months Ended December 31 2009 2008 $ Net sales $0.0 $0.0 $0.0 Cost of goods sold $0.0 ($1.2) $1.2 Gross profit $0.0 $1.2 ($1.2) SG&A (excl. depr. & amort.) $4.8 $7.9 ($3.1) Depreciation & amortization $1.2 $1.0 $0.2 Asset impairment charges $0.1 $0.0 $0.1 Restructuring cha
Slide 9: FY10 fiscal-to-date review: consolidated results
FY10 fiscal-to-date (“FTD”) review: consolidated results Nine Months Ended December 30 2009 2008 % Net sales $506.0 $575.3 (12.0%) Cost of goods sold $379.0 $419.1 (9.6%) Gross profit $127.1 $156.2 (18.7%) 25.1% 27.2% SG&A (excl. depr. & amort.) $113.0 $137.1 (17.6%) Depreciation & amortization2 $11
Slide 10: 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 $2.4M distribut
Slide 11: Quarterly revenue
Quarterly revenue Jun ’08 Sep ’08 Dec ’08 Mar ’09 Jun ’09 Sep ’09 Dec ’09 EBITDA 117 118.7 161.4 111 89.8 109 160 Jun ’08 Sep ’08 Dec ’08 Mar ’09 Jun ’09 Sep ’09 Dec ’09 Organic 25 23.4 27.9 23.6 16 23 22.5 HSG Revenue ($Mil.) TSG Revenue ($Mil.) Jun ’08 Sep ’08 Dec ’08 Mar ’09 Jun ’09 Sep ’09 Dec ’
Slide 12: 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 13: Fiscal 2010 Unaudited Third Quarter Results
Agilysys, Inc. (Nasdaq: AGYS) Fiscal 2010 Unaudited Third Quarter Results February 3, 2010
Slide 14: Adjusted EBITDA reconciliation
Three Months Ended Nine Months Ended (In thousands) December 31, December 31, 2009 2008 2009 2008 Net income (loss) $ 14,895 $ (3,720) $ 5,335 $ (170,346) Plus: Interest expense, net 246 579 664 569 Other (income)/expense, net (4,921) 1,175 (5,311) 695 Income tax (benefit) expense (345) (1,402) 658