Enghouse Systems Limited · TSX:ENGH
Enghouse Systems — Q3 2015 Earnings Presentation
24 slides from Enghouse Systems's earnings presentation, 2015
Slide 1: Software engineered for results – Q3 FY15
Software engineered for results eo Enghouse Systems Q3 FY 15
Slide 2: Forward-Looking Statements Disclaimer
Forward-Looking Statements Disclaimer Certain statements made in this presentation and the related materials may contain forward-looking statements, which are not historical facts, but are based on certain assumptions and reflect Enghouse’s current expectations. These forward-looking statements are
Slide 3: Snapshot
Snapshot HQ in Canada + 27 countries Toronto Stock Exchange Dual Growth – organic & TSX:ESL acquisitions Enghouse Interactive Enghouse Networks Enghouse Transportation Contact center software Telecom software Transportation software 1350+ employees Revenue Consistently profitable 3
Slide 4: Strategy
Strategy Build a larger, more diverse enterprise software and services company through: – Growing our interaction management solutions business • Interactive Management Group – Growing our network solutions and transportation management software businesses • Asset Management Group – Consistently gen
Slide 5: Interactive - Sector Dynamics
Interactive - Sector Dynamics Contact Center is at the front line of customer interaction, driving technology upgrades on premise and in the cloud IP migration, multi media routing and email driving technology refresh Mobile computing/workforce driving significant multi-channel requirements Trend to
Slide 6: Interactive Portfolio
Interactive Portfolio Leading customer interaction solutions, in the cloud, hosted or on-premise to address specific market requirements Consoles 10-50 seats Channel GTM and OEM On-premises Mid-Market 10-500 seats Channel GTM On-premises or hosted private cloud Enterprise 50-1000’s of
Slide 7: Interactive Portfolio
Interactive Portfolio Leading solutions to maximize the value of customer interaction MULTI-CHANNEL CONTACT CENTER Contact Center Enterprise · Contact Center Service Provider · Communication Center w/Microsoft Lync · Contact Center OnDemand · Outbound Dialer ATTENDANT/OPERATOR CONSOLE Intuition Atte
Slide 8: Networks - Sector Dynamics
Networks - Sector Dynamics BSS/OSS market was valued at $17B in 2011 and is expected to grow to $48.5B in 2018, a CAGR of 16% from 2012-2018 (Source – Transparency market Research) Highly fragmented, open for more industry consolidation among 400+ vendors Industry growth fueled by wireless subscribe
Slide 9: Networks Portfolio
Networks Portfolio Technology solutions to optimize performance for next generation network operators FRAUD MANAGEMENT Real-time Predictive Analysis · Profiling · Dashboard · Business Rules Engine GEOGRAPHIC INFORMATION SYSTEM Network Planning · Rollout · Design · Engineering · Visual Intelligence I
Slide 10: Transportation - Sector Dynamics
Transportation - Sector Dynamics Fragmented and competitive market. New technologies driving growth in systems and tangible cost benefits / savings Evolving tablet and smart phone technologies replacing traditional Mobile Data Terminals (MDT’s). LTE networks to provide interoperability across geogra
Slide 11: Transportation Portfolio
Transportation Portfolio Software based transportation and workforce management solutions for the public, private and public safety sectors TRANSIT OPERATIONS Fixed Route & Para-transit Scheduling · Dispatch · Workflow /Driver Management COMMUNICATIONS Fixed Route & Para-transit IVR · Web Based Trip
Slide 12: Annual Results
ANNUAL RESULTS Software engineered for results eo Enghouse Systems
Slide 13: Fiscal Year Results (ending Oct 31)
Fiscal Year Results (ending Oct 31) TOTAL REVENUE RECURRING REVENUE $115m $220m $92m $180m $72m $136m $123m $59m $94m $47m 50% 48% 52% 51% 52% FY10 FY11 FY 12 FY 13 FY 14 FY10 FY11 FY 12 FY 13 FY 14 ADJUSTED EBITDA DIVIDEND PER SHARE PER SHARE (based on date of record) $0.36 $2.09 $0.29 $1.69 $0.23
Slide 14: Revenue Split FY14
Revenue Split FY 14 REVENUE BREAKDOWN REVENUE BY GEOGRAPHY Hardware 3% CANADA 4% APAC Services 7% US 12% License 33% 33% EMEA 34% Hosted/Mtce 52% UK 22% REVENUE BY BUSINESS GROUP Asset Management Group $51m ‐ 23% Interactive Management Group $169m – 77% 14
Slide 15: 9 Months - FY15
9 MONTHS - FY 15 eo Enghouse Systems Software engineered for results
Slide 16: 9 months - FY15
9 months - FY 15 9 months 9 months FY 15 FY 14 Revenue - increase of ~29% over FY 14 $203.0m $157.9m Revenue by Segment Interactive Management Group $136.7m $126.3m Asset Management Group $66.3m $31.6m License revenue $62.5m $52.8m Recurring revenue - increase of ~ 20% over FY 14 $99.7m $82.8m R & D
Slide 17: 9 months - FY15
9 months - FY 15 9 months 9 months FY 15 FY 14 Quarterly dividend - per common share, based on date of record $0.32 $0.26 Cash spent on dividend $8.4m $6.8m Cash spent on acquisitions (net of cash acquired) $27.3m $21.5m Cash & Investments balance - beginning of period $84.9m $90.3m Cash & Investmen
Slide 18: Q3 FY15
Q3 FY 15 eo Enghouse Systems Software engineered for results
Slide 19: Q3 FY15
Q3 FY 15 Q3 FY 15 Q3 FY 14 Revenue - increase of ~ 28% over Q3 FY 14 $71.3m $55.5m Revenue by Segment Interactive Management Group $48.1m $44.6m Asset Management Group $23.2m $10.9m License revenue $21.8m $18.2m Recurring revenue - increase of ~ 15% over Q3FY 14 $33.8m $29.4m R & D expense as a % re
Slide 20: Q3 FY15
Q3 FY 15 Q3 FY 15 Q3 FY 14 Quarterly dividend - per common share, based on date of record $0.12 $0.10 Cash spent on dividend $3.2m $2.6m Cash spent on acquisitions (net of cash acquired) $6.8m $8.0m Cash & Investments balance - beginning of period $88.5m $101.0m Cash & Investments balance - end of p
Slide 21: Quarterly Results
Quarterly Results REVENUE RECURRING REVENUE $ millions $ millions $80 $40 $70 $35 $60 $30 $50 $25 $40 $20 $30 $15 $20 $10 $10 $5 $0 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 12 FY 13 FY 14 FY 15 FY 12 FY 13 FY 14 FY 15 ADJUSTED EBITDA DIVID
Slide 22: Acquisition Strategy
Acquisition Strategy Established track record of value creation through acquisitions To consistently generate positive operating cash flows to fund further growth and drive shareholder value Economic factors favorable for acquisitions especially for small-cap companies Target companies in the $5m -
Slide 23: Recent Acquisitions
Recent Acquisitions IT SONIX JINNY CDRATOR March, 2014 AKTAVARA Aug, 2014 March, 2015 Q2 FY 14 Sept, 2015 BASSET Q4 FY 14 Q2 FY 15 REITEK VOXTRON Q4 FY 15 July, 2014 Oct, 2014 May, 2015 GERMANY Q3 FY 14 Q4 FY 14 Q3 FY 15 IRELAND DENMARK SWEDEN SWEDEN BELGIUM ITALY 23
Slide 24: Thank You!
THANK You! Software engineered for results eo Enghouse Systems