Slide 1: Agilysys, Inc. June 2009
Agilysys, Inc. (Nasdaq: AGYS) June 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: $14.3M Hotel casinos Full-service hotels Destination resorts Conference centers Condominiums Rest
Slide 5: Agilysys: evolution
Agilysys: evolution 2003 2004 2005 2006 2007 2008 Today TSG RSG HSG Continues to grow HP and IBM solution provider business Establishes EMC relationship and signs EMC agreement May 2005: Acquires CTS: Enhances offering of comprehensive storage solutions Apr 2007: Acquires Stack Computer Jul 2007: Ac
Slide 6: Agilysys: revenue mix
Agilysys: revenue mix Hardware Software Services East 508.7 77 145 Hardware Software Services East 20.5 19.8 59.7 Hardware Software Services East 58.7 3.9 37.5 Hardware Software Services East 81.9 12.3 5.8 Agilysys FY09 Revenue Mix HSG FY09 Revenue Mix RSG FY09 Revenue Mix TSG FY09 Revenue Mix
Slide 7: Agilysys: software and services mix
Agilysys: software and services mix Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Software & services mix as % of total 0.294 0.253 0.244 0.266 0.285 0.289 0.306 0.339 Software & services revenue 36.9 49 60.6 51.4 51.2 49.5 68.5 52.8 Software and Services Mix ($Mil.) Software and services
Slide 8: AGYS: trailing twelve months (TTM)
AGYS: trailing twelve months ("TTM") Mar '08 Jun Sep Dec Mar '09 EBITDA 5.7 7.1 11.9 19.2 19.7 EBITDA Margin 0.0075 0.009 0.015 0.025 0.027 Mar '08 Jun Sep Dec Mar '09 Organic 760.2 814.3 792 768.6 730.7 Adjusted EBITDA excl. charges2 ($Mil.) Additional notes Excludes results from TSG's Asian operat
Slide 9: FY09 review: summary balance sheet performance
FY09 review: summary balance sheet performance Cash at year-end was $36.2M - a decrease of $36.2 million from 12/31/08 A/R generated $19.7M of cash A/P generated $16.5M of cash Floor plan financing payments consumed $71.7M of cash Days sales outstanding deteriorated from 69 days at 12/31/08 to 88 da
Slide 10: HSG: solutions
HSG: solutions Primary Secondary
Slide 11: HSG: financial performance
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 includes $2.9M
Slide 12: HSG: trailing twelve months
HSG: trailing twelve months Adjusted EBITDA1 ($ Mil.) Revenue ($ Mil.) Mar '08 Jun Sep Dec Mar '09 EBITDA 9 10.1 9.7 10.9 14.3 EBITDA Margin 0.106 0.104 0.101 0.112 0.143 Mar '08 Jun Sep Dec Mar '09 Organic 84.8 96.2 96.1 96.6 99.6 (1) Excludes asset impairment charge
Slide 13: 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 14: RSG: financial performance
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 $3.1M on lower revenue due to higher proprietary services mix SG&A, excl. depr. & amort.,
Slide 15: RSG: trailing twelve months
Revenue ($ Mil.) Mar '08 Jun Sep Dec Mar '09 EBITDA 6.1 8.9 7.4 9.1 8 EBITDA Margin 0.047 0.06 0.051 0.073 0.066 Mar '08 Jun Sep Dec Mar '09 Organic 129.7 147.6 143.7 125.4 122.2 RSG: trailing twelve months Adjusted EBITDA1 ($ Mil.) (1) Excludes asset impairment charge
Slide 16: 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 17: TSG: financial performance
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., decreased by $2.
Slide 18: TSG: trailing twelve months
TSG: trailing twelve months Revenue ($ Mil.) Mar '08 Jun Sep Dec Mar '09 EBITDA 28.8 28.2 36 38.5 36.1 EBITDA Margin 0.053 0.049 0.065 0.07 0.071 Mar '08 Jun Sep Dec Mar '09 Organic 545.6 570.5 552.7 546.6 508.9 Adjusted EBITDA1 ($ Mil.) (1) Excludes asset impairment and restructuring charges
Slide 19: FY10 positioning & guidance
FY10 positioning & guidance 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 working capital
Slide 20: Reconciliation of adjusted EBITDA to net income
Reconciliation of adjusted EBITDA to net income