Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Investor Presentation (February 2014)
22 slides from Agilysys's investor presentation, Feb 25, 2014
Slide 1: Investor Presentation February 2014
TECHNOLOGY | INNOVATION | SOLUTIONS Investor Presentation February 2014
Slide 2: Forward-looking Statements & Non-GAAP Financial Information
TECHNOLOGY | INNOVATION | SOLUTIONS Forward-looking Statements & Non-GAAP Financial Information 2 Forward-Looking Language This presentation and all publicly available documents, including the documents incorporated herein and therein by reference, contain, and our officers and representatives may f
Slide 3: Key Financial Statistics
TECHNOLOGY | INNOVATION | SOLUTIONS Key Financial Statistics 3 •Improving Financial Results Market Stats Stock Price (1/31/2014) $13.10 Diluted Shares Outstanding 22.1M 52 Week High $15.19 Diluted Market Capitalization $289.5M 52 Week Low $8.84 Total Debt (at 12/31/2013) $0.0M Average Daily Volume (
Slide 4: Purpose: Lasting Connections
TECHNOLOGY | INNOVATION | SOLUTIONS Our community Our team Purpose 4 Lasting Connections Our customers & their guests Connecting Our customers with their guests Our customers with our team Our team with their communities Our investors
Slide 5: Strategic Objectives
TECHNOLOGY | INNOVATION | SOLUTIONS Competitive Advantages for Our Customers Objectives to Increase Shareholder Value Strategic Objectives 5 Strategic Expansion Technology Differentiated Markets Highest Value Solutions Value Accretive Growth Greater Recruitment Increased Wallet Share Improved Experi
Slide 6: Strategy Execution
TECHNOLOGY | INNOVATION | SOLUTIONS Strategy Execution 6 Develop Our People Improve Capabilities Add More Value Increase Awareness Grow Revenue Improve Operations Reduce Working Capital Value Creating CapEx Reduce Expense Grow Revenue Improve Capital Use Increase Profits Capital Efficient Profitable
Slide 7: What We Do
TECHNOLOGY | INNOVATION | SOLUTIONS What We Do 7 Inventory & Procurement Property Management Document Management Point-of-Sale Activities Management Workforce Management
Slide 8: Key Product Differentiators
TECHNOLOGY | INNOVATION | SOLUTIONS Key Product Differentiators 8 Universal Competitive Strengths Stability Scalability The best hospitality knowledge coupled with the best technology talent Customer engagement Offline capabilities
Slide 9: Product Suite Features
TECHNOLOGY | INNOVATION | SOLUTIONS Point-of-Sale Property Management Document Management Inventory & Procurement Workforce Management • Audit log and electronic journal • POS generic authorization • Campus and gift card support • Combination packages and prix fixe menus • Fully integrated suite • G
Slide 10: Revenue Mix
TECHNOLOGY | INNOVATION | SOLUTIONS Revenue Mix 10 63% 11% 7% 6% 4% 4% 5% Revenue Mix by Product InfoGenesis Lodging Management System Eatec Visual One DataMagine Stratton Warren System WMx 35% 18% 14% 25% 4% 4% Revenue Mix by Market Casino (Corporate) Hotels/Resorts Casino (Tribal) Foodservice* Cru
Slide 11: Total Addressable Market
TECHNOLOGY | INNOVATION | SOLUTIONS Total Addressable Market 11 $12B+ Market Opportunity $4B Addressed Market AGYS Projected product roadmap opens to total addressable market Expected 5-7% annual growth for industry (commissioned IHL and STR study)
Slide 12: Significant Room for Growth
TECHNOLOGY | INNOVATION | SOLUTIONS Significant Room for Growth 12 $4B in annual spending on existing software services and recurring software maintenance for current product portfolio Casinos Stadiums/Arenas Pinnacle Entertainment Casino Del Sol Sands Casino & Resort Boyd Gaming The Cosmopolitan of
Slide 13: M&A Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS M&A Strategy • Focus is on software enabled solutions for hospitality markets • Keys to success for M&A • Talent – management capacity and industry-leading talent • Technology – extend our solutions and expand our offerings • Markets – greater share from current a
Slide 14: Historical Financial Results
TECHNOLOGY | INNOVATION | SOLUTIONS Historical Financial Results 14 All numbers in thousands, except per share data * All historical numbers are unaudited, as filed in our Form 8-K, July 8, 2013 ^ Non-GAAP measure, see reconciliation on slide 22 $94,100 $86,375 $98,362 $100,637 $75,000 $80,000 $85,0
Slide 15: Our Current Product Mix
TECHNOLOGY | INNOVATION | SOLUTIONS Our Current Product Mix 15 37% 48% 15% FY11* Product Revenue Support, Maintenance & Subscription Revenue Professional Services Revenue 33% 53% 14% TTM F3Q14* Product Revenue Support, Maintenance & Subscription Revenue Professional Services Revenue * All historical
Slide 16: Growing Recurring Revenue
TECHNOLOGY | INNOVATION | SOLUTIONS Growing Recurring Revenue 16 $45.1 $47.6 $50.2 $53.0 $40.0 $42.5 $45.0 $47.5 $50.0 $52.5 $55.0 FY11 FY12 FY13 TTM F3Q14 (in m ill io n s) Recurring Revenue • Recurring revenues comprised over 52% of the Company’s revenue in the first nine months of fiscal 2014 • S
Slide 17: Strong Balance Sheet
TECHNOLOGY | INNOVATION | SOLUTIONS Strong Balance Sheet 17 Consolidated Balance Sheet (unaudited) in thousands December 31, 2013 March 31, 2013 Cash and cash equivalents $96,357 $82,931 Other current assets 31,619 63,446 Long-term assets 59,783 51,203 Total assets $187,759 $197,580 Current liabilit
Slide 18: Business Outlook
TECHNOLOGY | INNOVATION | SOLUTIONS Business Outlook – FY 14 • Revenue growth in line with or slightly below the market rate of growth • Improve operating expense efficiency and effectiveness • Generate positive adjusted cash flow from operations • Invest the balance sheet in products and markets •
Slide 19: Product Investment Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS Hospitality industry investments Across in-market products Next generation platforms Enhancing partner ecosystem SaaS New innovation Product Investment Strategy 19
Slide 20: YTD Releases
TECHNOLOGY | INNOVATION | SOLUTIONS YTD Releases • Visual One 8.51 • LMS 7.2 • InfoGenesis 4.4 • Insight™ Mobile Manager for LMS • InfoGenesis™ Mobile • Elevate • Analytics 20
Slide 21: Investment Highlights
TECHNOLOGY | INNOVATION | SOLUTIONS Investment Highlights 21 Focused Business with Significant Room for Growth • $4B in annual industry spend for current product portfolio • Gain share, expand product capabilities through focused investments, acquisitions • Support growth with world-class customer s
Slide 22: Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS Non-GAAP Reconciliation 22 2011 2012 2013 3Q2014 TTM2014 Operating loss (22,636)$ (46,395)$ (10,098)$ (4,052)$ (7,426)$ Share-based compensation expense 2,402 2,440 1,670 1,543 2,207 Amortization of intangibles 5,037 3,585 3,284 3,953 4,759 Asset impairments and r