Slide 1: Agilysys, Inc. (Nasdaq: AGYS) September 2009
Agilysys, Inc. (Nasdaq: AGYS) September 2009
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 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 reselle
Slide 4: Agilysys: business overview
Agilysys: business overview Business segments Financial Profile Primary markets Capabilities and solutions Hospitality solutions Independent software vendor/ developer Rev. FY091: $99.6M Adj. EBITDA2,3: $14.3M Hotel casinos Full-service hotels Destination resorts Conference centers Condominiums Rest
Slide 5: Agilysys: evolution
Agilysys: evolution 2003 2004 2005 2006 2007 2008 Today TSG RSG HSG Continues to grow HP and IBM solution provider business Establishes EMC relationship and signs EMC agreement May 2005: Acquires CTS: Enhances offering of comprehensive storage solutions Apr 2007: Acquires Stack Computer Jul 2007: Ac
Slide 6: Agilysys: revenue mix
Agilysys: revenue mix Hardware Software Services East 508.7 77 145 Hardware Software Services East 20.5 19.8 59.7 Hardware Software Services East 58.7 3.9 37.5 Hardware Software Services East 81.9 12.3 5.8 Agilysys FY09 Revenue Mix HSG FY09 Revenue Mix RSG FY09 Revenue Mix TSG FY09 Revenue Mix
Slide 7: Agilysys: software and services mix
Agilysys: software and services mix Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Software & services mix as % of total 0.294 0.253 0.244 0.266 0.285 0.289 0.306 0.339 0.325 Software & services revenue 36.9 49 60.6 51.4 51.2 49.5 68.5 52.8 42.3 Software and Services Mix ($Mil.) Soft
Slide 8: AGYS: trailing twelve months (TTM)
AGYS: trailing twelve months ("TTM") Jun '08 Sep Dec Mar Jun '09 EBITDA 7.1 11.9 19.2 19.7 15.2 EBITDA Margin 0.009 0.015 0.025 0.027 0.022 Jun '08 Sep Dec Mar Jun '09 Organic 814.3 792 768.6 730.7 681 Adjusted EBITDA excl. charges2 ($Mil.) Additional notes Excludes results from TSG's Asian operatio
Slide 9: Q1 review: summary balance sheet performance
Q1 review: summary balance sheet performance Cash at June 30th was $51.0M - an increase of $14.8M from 3/31/09 A/R generated $47.0M of cash Inventory generated $6.8M of cash A/P generated $48.3M of cash due to termination of floor plan financing agreement Floor plan financing payments consumed $74.2
Slide 10: HSG: solutions
HSG: solutions Primary Secondary
Slide 11: HSG: trailing twelve months
HSG: trailing twelve months Adjusted EBITDA1 ($ Mil.) Revenue ($ Mil.) Jun '08 Sep Dec Mar Jun '09 EBITDA 10.1 9.7 10.9 14.3 10.6 EBITDA Margin 0.104 0.101 0.112 0.143 0.116 Jun '08 Sep Dec Mar Jun '09 Organic 96.2 96.1 96.6 99.6 91 (1) Excludes asset impairment charge
Slide 12: 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 13: RSG: trailing twelve months
Revenue ($ Mil.) Jun '08 Sep Dec Mar Jun '09 EBITDA 8.9 7.4 9.1 8 5.6 EBITDA Margin 0.06 0.051 0.073 0.066 0.052 Jun '08 Sep Dec Mar Jun '09 Organic 147.6 143.7 125.4 122.2 108 RSG: trailing twelve months Adjusted EBITDA1 ($ Mil.) (1) Excludes asset impairment charge
Slide 14: 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 15: TSG: trailing twelve months
TSG: trailing twelve months Revenue ($ Mil.) Jun '08 Sep Dec Mar Jun '09 EBITDA 28.2 36 38.5 36.1 34.3 EBITDA Margin 0.049 0.065 0.07 0.071 0.071 Jun '08 Sep Dec Mar Jun '09 Organic 570.5 552.7 546.6 508.9 482 Adjusted EBITDA1 ($ Mil.) (1) Excludes asset impairment and restructuring charges
Slide 16: FY10 positioning, outlook and dividend
FY10 positioning, outlook and dividend Well Positioned for FY10 Company eliminated over $35M in annualized cost in FY09 New organization structure provides streamlined decision making and reduced overhead Cost structure is aligned with current demand outlook New credit facility enhances strong worki
Slide 17: Financial Data
Agilysys, Inc. (Nasdaq: AGYS) Financial Data
Slide 18: Q1 review: consolidated results
Q1 review: consolidated results Hardware revenue decreased 32%, services revenue decreased 26% and software declined 1% from prior year SG&A, excluding depr. & amort., decreased $11.1M Comp and benefits decreased $10.0M T&E decreased $1.0M Professional fees decreased $0.6M Bad debt expense decreased
Slide 19: FY09 review: consolidated results
FY09 review: consolidated results Revenue declined 3.9% - pro forma for full year acquisitions, revenue declined 12.2% Gross profit increased over $20M on declining revenue due to higher mix of software and services revenue and rebates SG&A, excl. depr. & amort., increased by $6.2M due to: Approxima
Slide 20: Q1 review: Hospitality (HSG)
Q1 review: Hospitality ("HSG") Revenue decreased 35% Demand in commercial gaming market remained soft and hardware product sales slowed Increased sales of hosted software Gross margin increased slightly due to higher proportion of software and services SG&A, excluding depr. & amort., decreased by $1
Slide 21: FY09 review: HSG financial performance
FY09 review: HSG financial performance Revenue was essentially flat after adjusting for FY08 acquisitions Gross margin increased significantly due to higher mix of software and services SG&A, excluding depr. & amort., increased by $6.0M due primarily to full-year impact of FY08 acquisitions SG&A inc
Slide 22: Q1 review: Retail (RSG)
Q1 review: Retail ("RSG") Revenue was consistent with our expectations given absence of several large customer roll- outs in Q1 FY09 Revenue decreased 36% primarily due to lower volumes of point-of-sale hardware and implementation services Gross margin remained flat due to relatively higher mix of h
Slide 23: FY09 review: RSG financial performance
FY09 review: RSG financial performance Revenue decreased 5.8% primarily due to absence of large, one-time hardware sale in FY08 Diverse revenue base across grocery, chain drug and discount retail Gross profit grew by over $3.1M on lower revenue due to higher proprietary services mix SG&A, excl. depr
Slide 24: Q1 review: Technology (TSG)
Q1 review: Technology ("TSG") Soft demand for IT infrastructure solutions, especially hardware, contributed to 23% decline in revenue Market was weaker than expected Oracle pending acquisition of Sun muted historical seasonal growth in Sun product line Gross margin expanded in quarter due to higher
Slide 25: FY09 review: TSG financial performance
FY09 review: TSG financial performance Revenue was down almost than 18% when pro forma for full-year Innovativ results in FY08 Demand for IT infrastructure solutions was soft throughout year Gross profit was higher on lower sales due to higher rebates and product mix SG&A, excl. depr. & amort., decr
Slide 26: Q1 review: Corporate
Q1 review: Corporate Gross profit decreased $2.6M due to non- recurring, miscellaneous pricing adjustments SG&A, excl. depr. & amort., decreased $6.0M due to FY09 cost saving actions Payroll related costs were down $4.3M T&E decreased $0.4M Outside services and professional fees decreased $0.6M Corp
Slide 27: Reconciliation of net loss to adjusted EBITDA
Reconciliation of net loss to adjusted EBITDA
Slide 28: Reconciliation of adjusted EBITDA to net income
Reconciliation of adjusted EBITDA to net income