Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Investor Presentation (June 2014)
22 slides from Agilysys's investor presentation, Jun 25, 2014
Slide 1: Investor Presentation June 2014
TECHNOLOGY | INNOVATION | SOLUTIONS Investor Presentation June 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 (3/31/2014) $13.40 Diluted Shares Outstanding 22.1M 52 Week High $15.50 Diluted Market Capitalization $296.1M 52 Week Low $9.83 Total Debt (at 3/31/2014) $0.0M Average Daily Volume (3
Slide 4: Our community, our team, 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 Increase Awareness Improve Operations Reduce Working Capital Value Creating CapEx Reduce Expense Grow Revenue Improve Capital Use Increase Profits Capital Efficient Profitable Growth
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: POS, Property Management, Document Management, Inventory, Workforce
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 62% 14% 7% 5% 3% 4% 5% Revenue Mix by Product InfoGenesis Lodging Management System Eatec Visual One DataMagine Stratton Warren System WMx 55% 21% 14% 10% Revenue Mix by Market Gaming Hotels, Resorts and Cruise Food Service Management Restaurants, U
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 and reflect the sale of RSG and UK entity ^ Non-GAAP measure, see reconciliation on slide 22 $88,085 $82,051 $94,008 $101,261 $0 $20,000 $40,000
Slide 15: Our Current Product Mix
TECHNOLOGY | INNOVATION | SOLUTIONS Our Current Product Mix 15 36% 49% 15% FY11* Product Revenue Support, Maintenance & Subscription Revenue Professional Services Revenue 34% 53% 13% FY14 Product Revenue Support, Maintenance & Subscription Revenue Professional Services Revenue * All historical numbe
Slide 16: Growing Recurring Revenue
TECHNOLOGY | INNOVATION | SOLUTIONS Growing Recurring Revenue 16 $43.1 $45.4 $49.1 $53.2 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 $55.0 $60.0 FY11 FY12 FY13 FY14 (in m ill io n s) Recurring Revenue • Recurring revenues comprised over 53% of the Company’s revenue in fiscal 2014
Slide 17: Strong Balance Sheet
TECHNOLOGY | INNOVATION | SOLUTIONS Strong Balance Sheet 17 Consolidated Balance Sheet (unaudited) in thousands March 31, 2014 March 31, 2013 Cash and cash equivalents $99,566 $82,444 Other current assets 30,288 63,852 Long-term assets 61,041 51,202 Total assets $190,895 $197,498 Current liabilities
Slide 18: Business Outlook
TECHNOLOGY | INNOVATION | SOLUTIONS Business Outlook – FY 15 • Revenue growth above the market rate of growth • Improve operating expense efficiency and effectiveness • Generate break even to slightly positive adjusted operating income • Invest the balance sheet in products and markets • Organic pro
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: FY14 and FY15 Releases
TECHNOLOGY | INNOVATION | SOLUTIONS FY14 and FY15 Releases • Visual One 8.51 • LMS 7.2 • InfoGenesis 4.4 • Insight™ Mobile Manager for LMS • InfoGenesis™ Mobile • Elevate • Analytics 2.0 20
Slide 21: Investment Highlights
TECHNOLOGY | INNOVATION | SOLUTIONS Investment Highlights 21 Focused Business with Significant Room for Growth • $4B in annual industry spend for current product portfolio • Gain share, expand product capabilities through focused investments, acquisitions • Support growth with world-class customer s
Slide 22: Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS Non-GAAP Reconciliation 22 2011 2012 2013 2014 Operating loss (21,989)$ (45,840)$ (9,307)$ (6,188)$ Share-based compensation expense 2,402 2,397 1,638 2,119 Amortization of intangibles 5,037 3,585 3,284 6,414 Asset impairments and related charges 959 9,681 120 327