Slide 1: Fiscal 2010 Unaudited Second Quarter Results
Agilysys, Inc. (Nasdaq: AGYS) Fiscal 2010 Unaudited Second Quarter Results November 4, 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: Q2 review: highlights
Q2 review: highlights IT capital budgets began to loosen in Sept. quarter - revenue grew 20% sequentially - Q2 is typically flat to down from Q1 Q2's sequential revenue growth yielded meaningful improvement in EBITDA, demonstrating effectiveness of previous cost cutting initiatives Additional $9M of
Slide 4: Consolidated results
Q2 review: consolidated results Hardware revenue decreased 4%, services decreased 33% and software increased 14% from prior year SG&A, excluding depr. & amort., decreased $9.1M Comp and benefits decreased $5.6M, which included $0.4M in severance in Q2 FY10 Bad debt expense decreased $1.3M Profession
Slide 5: Hospitality (HSG)
Q2 review: Hospitality ("HSG") Revenue was flat year-over-year as hospitality IT spend remains depressed Commercial gaming demand primarily relates to acquisitions of existing properties Food service and cruise markets have been stable Gross margin decreased due to higher proportion of hardware sale
Slide 6: Retail (RSG)
Q2 review: Retail ("RSG") Revenue was down 20% due to lower hardware sales and implementation services related to large roll-outs Gross margin decreased due to hardware pricing pressure SG&A, excl. depr. & amort., decreased $1.9M Payroll costs decreased $0.8M Outside services decreased $0.4M Bad deb
Slide 7: Technology (TSG)
Q2 review: Technology ("TSG") Sales declined 8.1% year-over-year, but increased 21% sequentially Decline slowed as some companies begin to spend to address capacity, refresh, and virtualization needs Uncertainty as to timing of Oracle's pending acquisition of Sun is having some effect on demand and
Slide 8: Corporate
Q2 review: Corporate Gross profit decreased $0.6M due to recording miscellaneous pricing adjustments in business segments SG&A, excl. depr. & amort., decreased $4.8M due to FY09 cost-saving actions Payroll related costs were down $2.2M Outside services and professional fees decreased $0.9M T&E decre
Slide 9: FY10 fiscal-to-date review: consolidated results
FY10 fiscal-to-date ("FTD") review: consolidated results Revenue declined 18.5% HSG decreased 18.5% as commercial gaming market remains challenging RSG decreased 28.9% due to absence of several large transactions in FY10 and lower retail spend on IT TSG decreased 15.6% as spend on infrastructure sol
Slide 10: Summary balance sheet performance
Q2 review: summary balance sheet performance Cash at Sept. 30th was $48.2M - a decrease of $2.8M from 6/30/09 A/R consumed $20.2M of cash Inventory consumed $1.6M of cash A/P generated $16.5M of cash Received $0.7M distribution from investment in Reserve Fund's Primary Fund Days sales outstanding im
Slide 11: Quarterly revenue
Quarterly revenue Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Sep '09 EBITDA 117 118.7 161.4 111 89.8 109 Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Sep '09 Organic 25 23.4 27.9 23.6 16 23 HSG Revenue ($Mil.) TSG Revenue ($Mil.) Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Sep '09 Organic 38 29.3 34.8 20 24.4 2
Slide 12: Outlook
Outlook Improved visibility for fiscal Q3 - IT capital spending environment remains uncertain for calendar year 2010 Expect sequential improvement in fiscal Q3 revenue due to seasonal IT capital spend Remain focused on managing costs and working capital to drive cash flow Expect financial performanc
Slide 13: Fiscal 2010 Unaudited Second Quarter Results
Agilysys, Inc. (Nasdaq: AGYS) Fiscal 2010 Unaudited Second Quarter Results November 4, 2009
Slide 14: Reconciliation of net income/(loss) to adjusted EBITDA
Reconciliation of net income/(loss) to adjusted EBITDA