Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Investor Presentation (August 2019)
30 slides from Agilysys's investor presentation, Aug 7, 2019
Slide 1: Investor Presentation August 2019
Investor Presentation August 2019
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: Agilysys Overview
Agilysys Overview TECHNOLOGY | INNOVATION | SOLUTIONS • Agilysys is a Technology Software Solutions Company Subscription Reservations and Exclusively Focused on the Hospitality Industry On Prem Analytics Guest • Our Solutions Are Mission Critical to Core Hospitality Operations Optimization Value - T
Slide 4: We Serve Leading Hospitality Brands
We Serve Leading Hospitality Brands TECHNOLOGY | INNOVATION | SOLUTIONS Gaming – 56% of Revenue Hotels, Resorts and Cruise – 26% of Revenue FoodFood Service – 17% of Revenue Restaurants, Universities, Stadia and Healthcare – 1% of Revenue Note: Revenue contribution figures represent percentage for t
Slide 5: Enabling the Guest Journey
Enabling the Guest Journey TECHNOLOGY | INNOVATION | SOLUTIONS Online Survey Golf Omni Channel Kiosk Employee Spa Activities Discover Arrive/Plan Order Experience Procure Reserve/Book Suggest Pay Analyze Market Gaming Hotels & Resorts Cruises Food Service Stadiums & Arenas Delivering a Comprehensive
Slide 6: We Provide Industry Leading Hospitality Solutions
We Provide Industry Leading Hospitality Solutions TECHNOLOGY | INNOVATION | SOLUTIONS PROPERTY POINT-OF-SALE MANAGEMENT 65% of Revenue 24% Food and Beverage Solutions of Revenue Lodging Solutions ~55k end points at 06/30/19 ~273k rooms at 06/30/19 +14% since 06/30/18 9% +4% since 06/30/18 of Revenue
Slide 7: Go To Market Strategy
Go To Market Strategy TECHNOLOGY | INNOVATION | SOLUTIONS OBSESSIVELY CUSTOMER CENTRIC IN EVERY MARKET WE SERVE ENGINEERING DRIVEN COMPANY R&D Team >95% ~40%* Increase Strength** Customer in TTM Jan 2017 – 230 Retention International Jun 2019 – 540 Annually Bookings Dec 2019 – 650 *Note: All data is
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: Hospitality Market ARR Market Opportunity
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 ~ $145.2M* *Trailing twelve months ended June 30, 2019. 9
Slide 10: Achievements Under New Management Team
Achievements Under New Management Team TECHNOLOGY | INNOVATION | SOLUTIONS January 2017 (Q4 - • Seven Consecutive Quarters of Sequential Revenue Growth FY17) we began a focus on cost control • Five Consecutive Quarters of Record Revenue and aligning resources to position • Expect Approximately 11% Y
Slide 11: Creating Value with New Leadership and Strategy
Creating Value with New Leadership and Strategy TECHNOLOGY | INNOVATION | SOLUTIONS 25 24 23 22 21 20 Tony Pritchett 19 Promoted Ramesh to CFO 18 Don Srinivasan DeMarinis Joins as 17 Sridhar Joins as CEO Laveti SVP of Sales 16 Joins as 15 R&D VP 14 13 IDC Established, Managed Locally Jeba Kingsley 1
Slide 12: India Development Center
India Development Center TECHNOLOGY | INNOVATION | SOLUTIONS • Currently Doubling Capacity To: • 68,000 Square Feet • 660 Employee Capacity • Approximately 90% of Current Chennai Employees are Technical Staff 12
Slide 13: Long Term Financial Targets
Long Term Financial Targets TECHNOLOGY | INNOVATION | SOLUTIONS 12/31/17 Current EV/Rev EV/Rev 1.9 3.8 Targeting Four-Year Revenue Growth CAGR of between 10% - 20% and Adjusted EBITDA of between 10%-20% of Revenue by FY2021 (begins April 2020) 13
Slide 14: Financial Overview
FINANCIAL OVERVIEW 14
Slide 15: Evolving Business, Evolving P&L
Evolving Business, Evolving P&L TECHNOLOGY | INNOVATION | SOLUTIONS Financial Metrics and Valuation* Business Metrics (as of 06/30/19) Share Price (7/31/19) $24.53 Direct POS End Points Managed ~55k Diluted Shares Outstanding 23.2M Y/Y Growth 14% Diluted Market Capitalization $569.4M Direct Hotel Ro
Slide 16: Strong Balance Sheet
Strong Balance Sheet TECHNOLOGY | INNOVATION | SOLUTIONS Consolidated Balance Sheet (in thousands) March 31, 2019 June 30, 2019 Cash, Cash Equivalents and Marketable Securities $40,771 $37,233 Other Current Assets 38,237 36,216 Long-Term Assets 84,583 93,999 Total Assets $163,591 $167,448 Current Li
Slide 17: Historical Financial Results
Historical Financial Results TECHNOLOGY | INNOVATION | SOLUTIONS Revenue - GAAP Net Loss - GAAP $150,000 $145,224 ($1,000) $145,000 $140,842 $140,000 ($6,000) $135,000 $130,000 $127,678 $127,360 ($11,000) ($8,350) $125,000 ($11,721) $120,000 ($13,164) ($13,003) ($16,000) $115,000 FY17 FY18 FY19 TTM*
Slide 18: Revenue - Quarterly
Revenue - Quarterly TECHNOLOGY | INNOVATION | SOLUTIONS Total Revenue $39,000 $38,389 $38,000 $37,000 $36,618 $36,014 $36,000 $35,000 $34,203 $33,865 $34,007 $34,000 $33,000 $32,056 $32,000 $31,310 $31,000 $30,602 $30,129 $30,000 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 All number
Slide 19: Profitability Metrics - Quarterly Adjusted Earnings from Operations
Profitability Metrics - Quarterly TECHNOLOGY | INNOVATION | SOLUTIONS Adjusted Earnings from Operations – Non GAAP^ $3,000 $2,664 $1,995 $1,858 $2,000 $1,000 $564 $684 $237 $0 ($1,000) ($1,158) ($2,000) ($1,909) ($3,000) ($3,475) ($4,000) ($3,779) ($5,000) Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q
Slide 20: Profitability Metrics - Quarterly Adjusted EBITDA
Profitability Metrics - Quarterly TECHNOLOGY | INNOVATION | SOLUTIONS Adjusted EBITDA – Non GAAP^ $3,500 $3,235 $3,061 $3,113 $3,000 $2,641 $2,500 $2,310 $2,392 $2,069 $2,135 $2,000 $1,640 $1,500 No Software Capitalization $1,000 from Q2 FY19 onwards $500 $0 ($500) ($234) Q4'17 Q1'18 Q2'18 Q3'18 Q4'
Slide 21: Adjusted EBITDA less Capitalized Software Development Costs
Profitability Metrics - Quarterly TECHNOLOGY | INNOVATION | SOLUTIONS Adjusted EBITDA less Capitalized Software Development Costs – Non GAAP^ $4,000 $3,235 $3,000 $2,584 $2,392 $2,135 $2,000 $1,415 $981 $1,000 $274 $0 ($177) No ($1,000) Software Capitalization ($1,350) from ($2,000) Q2 FY19 onwards
Slide 22: Appendix
APPENDIX
Slide 23: 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 24: Senior Management Leading New Growth Vision
Senior Management Leading New Growth Vision TECHNOLOGY | INNOVATION | SOLUTIONS KYLE BADGER - Senior Vice President, General Counsel and Secretary Kyle leads the global legal and human resources teams, and brings over 22 years of legal experience representing public and private companies in general
Slide 25: Senior Management Leading New Growth Vision
Senior Management Leading New Growth Vision TECHNOLOGY | INNOVATION | SOLUTIONS ROB JACKS – Chief Information Officer Rob was promoted to CIO in December 2018 and is responsible for advancing Agilysys’ internal systems and information technology processes. Rob has a reputation as a transformational
Slide 26: 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* 2019 2018 2017 Net loss $ (13,003) $ (13,164) $ (8,350) $ (11,721) Income tax expense (benefit) 295
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation TECHNOLOGY | INNOVATION | SOLUTIONS RECONCILIATION OF NET LOSS TO ADJUSTED EARNINGS FROM OPERATIONS (UNAUDITED) Three Months Ended June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, (In thousands) 2019 2019 2018 2018
Slide 28: Cash Flow
Cash Flow TECHNOLOGY | INNOVATION | SOLUTIONS TTM* FY19 FY18 FY17 Operating activities Loss from continuing operations $ (13,003) $ (13,164) $ (8,350) $ (11,721) Non cash adjustments, restructuring, legal settlements 22,406 22,219 16,586 14,110 Changes in assets & liabilities (2,712) (1,814) (1,362)
Slide 29: Agilysys Corporate Headquarters and 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: Dave Wood Richard Land / Norberto Aja VP, Corporate Strategy and Investor Relations JCIR (770) 810-7920 (212) 835-8500 InvestorRelations@agilysys.com agys@jcir.com 30