Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Investor Day (September 2013)
47 slides from Agilysys's investor day presentation, Sep 10, 2013
Slide 1: Analyst Day September 10, 2013
TECHNOLOGY | INNOVATION | SOLUTIONS Analyst Day September 10, 2013
Slide 2: Analyst day agenda and goals
TECHNOLOGY | INNOVATION | SOLUTIONS Analyst day agenda and goals • Vision and strategy • Market overview and growth opportunities • Financial review • Product development • Product demos • Q&A 2
Slide 3: Forward-looking Statements & Non-GAAP Financial Information
TECHNOLOGY | INNOVATION | SOLUTIONS Forward-looking Statements & Non-GAAP Financial Information 3 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 4: Senior Management Team, Vision and Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS SENIOR MANAGEMENT TEAM, VISION AND STRATEGY Jim Dennedy 4
Slide 5: Vision & Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS Vision & Strategy • Vision: Leader in transforming the guest service experience. • Provide market leading, technology enabled solutions. • Increase shareholder value by improving operating and financial performance, while profitably growing the business. • Invest
Slide 6: Agilysys Senior Management Team
TECHNOLOGY | INNOVATION | SOLUTIONS Agilysys Senior Management Team 6 Jim Dennedy, CEO Janine Seebeck, CFO Larry Steinberg, CTO Kyle Badger, General Counsel Tony Ross, VP of Sales Beth Levario, VP of Professional Services Neil Waite, VP of Support Beth McClure, Director of Marketing Theresa Putnal,
Slide 7: Strategic Objectives
TECHNOLOGY | INNOVATION | SOLUTIONS Strategic Objectives 7 Strategic Expansion Technology Differentiated Markets Highest Value Solutions Value Accretive Growth Greater Recruitment Increased Wallet Share Improved Experience Objectives to Increase Shareholder Value Competitive Advantages for Our Custo
Slide 8: Profitable Growth Strategy Execution
TECHNOLOGY | INNOVATION | SOLUTIONS Profitable Growth Strategy Execution 8 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 Ef
Slide 9: Market Overview and Growth Opportunities
TECHNOLOGY | INNOVATION | SOLUTIONS MARKET OVERVIEW AND GROWTH OPPORTUNITIES Jim Dennedy/Tony Ross 9
Slide 10: What We Do
TECHNOLOGY | INNOVATION | SOLUTIONS What We Do Inventory & Procurement Property Management Document Management Point-of-Sale Activities Management Workforce Management 10
Slide 11: Product Based Revenue Mix
TECHNOLOGY | INNOVATION | SOLUTIONS Product Based Revenue Mix 11 InfoGenesis – 62% Eatec – 11% Lodging Management System – 8% DataMagine – 8% Visual One – 6% Stratton Warren System – 5%
Slide 12: Market Based Revenue Mix
TECHNOLOGY | INNOVATION | SOLUTIONS Market Based Revenue Mix 12 Casino (Corporate) – 33% Hotels/Resorts – 21% Casino (Tribal) – 14% Foodservice – 12% Cruise – 5% Other* – 15% * Higher education, stadiums and arenas, restaurants and healthcare
Slide 13: Geographic Revenue Split
TECHNOLOGY | INNOVATION | SOLUTIONS Geographic Revenue Split 13 Domestic– 90% International – 10% * Revenue mix based upon FY13 results
Slide 14: Global Footprint
TECHNOLOGY | INNOVATION | SOLUTIONS Global Footprint 14 Principal Location Seattle Las Vegas Santa Barbara UK Hong Kong Singapore Country with Installation Reseller Eden Prairie Atlanta
Slide 15: Key Differentiators
TECHNOLOGY | INNOVATION | SOLUTIONS Key Differentiators 15 Universal Competitive Strengths Stability Scalability The best hospitality knowledge coupled with the best technology talent Customer engagement Offline capabilities
Slide 16: Key In Market Products Differentiators
TECHNOLOGY | INNOVATION | SOLUTIONS Key In Market Products Differentiators 16 Point-of-Sale 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 • Full
Slide 17: Products/Markets Matrix
TECHNOLOGY | INNOVATION | SOLUTIONS Products/Markets Matrix 17 SOL U TIO N INDUSTRY Casino Resorts Hotels/ Resorts Foodservice Management Cruise Higher Ed Healthcare Restaurants Point-of-Sale Property Management Systems Labor Management Systems Inventory & Procurement Systems Document Management Sol
Slide 18: Significant Room for Growth
TECHNOLOGY | INNOVATION | SOLUTIONS Stadiums/Arenas Cruise Lines Higher Education Foodservice Hotels/Resorts Significant Room for Growth 18 $4B in annual spending on existing software services and recurring software maintenance for current product portfolio Casinos Pinnacle Entertainment Casino Del
Slide 19: Total Addressable Market
TECHNOLOGY | INNOVATION | SOLUTIONS Total Addressable Market • Projected product roadmap opens to total addressable market • Expected 5-7% annual growth for industry (commissioned IHL and STR study) 19 $12B+ Market Opportunity $4B Addressed Market AGYS
Slide 20: M&A Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS M&A Strategy • Focus is on software enabled solutions for hospitality markets • TimeManagement (WMx) • Preferred workforce management solution • New source of revenue with modest customer overlap • Eliminates the need for a separate time clock following integratio
Slide 21: Intermission
TECHNOLOGY | INNOVATION | SOLUTIONS INTERMISSION 21
Slide 22: Financial Review
TECHNOLOGY | INNOVATION | SOLUTIONS FINANCIAL REVIEW Janine Seebeck 22
Slide 23: Historical Financial Results
TECHNOLOGY | INNOVATION | SOLUTIONS TTM Q114* FY13* Historical Financial Results 23 FY12* FY11* 94,101 86,375 98,362 100,473 70,000 80,000 90,000 100,000 110,000 Revenue AOI^ Adjusted EPS^ (14,397) (14,390) (1,763) 59 (20,000) (10,000) - 10,000 $(0.59) $(0.67) $(0.09) $(0.00) $(1.00) $(0.50) $- (23,
Slide 24: How We Do Business Today – Product Mix
TECHNOLOGY | INNOVATION | SOLUTIONS How We Do Business Today – Product Mix 24 TTM thru1QFY14* FY11* 37% 34% 32% 34% 36% 38% 48% 51% 46% 48% 50% 52% 15% 15% 0% 10% 20% Product Revenue Support, Maintenance and Subscription Revenue Professional Services Revenue * All historical numbers are unaudited, a
Slide 25: Growing Recurring Revenue Business
TECHNOLOGY | INNOVATION | SOLUTIONS Growing Recurring Revenue Business $45.1 $47.6 $50.2 $51.2 $42.0 $43.0 $44.0 $45.0 $46.0 $47.0 $48.0 $49.0 $50.0 $51.0 $52.0 FY11 FY12 FY13 TTMQ114 (in m illion s ) Recurring Revenue • Recurring revenues comprised over 50% of the company’s fiscal 2013 revenue • Se
Slide 26: Strong Balance Sheet
TECHNOLOGY | INNOVATION | SOLUTIONS Strong Balance Sheet 26 As Reported June 30, 2013 As Reported Assets Held for Sale Pro Forma Adjustments* Pro Forma June 30, 2013 Cash and cash equivalents 70,611 - 32,573 103,184 Other current assets 52,539 28,672 23,867 Long-term assets 58,392 2,156 56,236 Total
Slide 27: Capital Discipline
TECHNOLOGY | INNOVATION | SOLUTIONS Capital Discipline 27 Reduce Working Capital Value Creating CapEx Reduce Expense Grow Revenue Improve Capital Use Increase Profits Capital Efficient
Slide 28: Business Outlook
TECHNOLOGY | INNOVATION | SOLUTIONS Business Outlook – FY 14 • Generate organic revenue growth in excess of the market rate of growth • Fiscal 2013 revenue grew approximately 14% vs. the market which grew approximately 7% • Improve profitability • Generate positive cash flow from operations • Invest
Slide 29: Product Development
TECHNOLOGY | INNOVATION | SOLUTIONS PRODUCT DEVELOPMENT Larry Steinberg 29
Slide 30: Investment Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS Investment Strategy 30 Where we are making investments Across in-market products Next generation platforms Enhancing partner eco system SaaS New innovation
Slide 31: Technical Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS Technical Strategy 31 Maintain current strengths Open standards Engineering and product efficiencies Elasticity and efficiency Multi-tenant SaaS Enablement New UX paradigms
Slide 32: Product Strategy
TECHNOLOGY | INNOVATION | SOLUTIONS Product Strategy 32 • Deep research • Industry experts Roadmap strategy High value focus areas Protect & expand • Leverage strengths • Drive customer efficiency and revenue • Value proposition
Slide 33: Product Demonstrations
TECHNOLOGY | INNOVATION | SOLUTIONS PRODUCT DEMONSTRATIONS Maris Berzins / Rehan Jaddi 33
Slide 34: InfoGenesis Mobile
TECHNOLOGY | INNOVATION | SOLUTIONS InfoGenesis™ Mobile Human Workflow Optimization Conversational ordering Ideal form factor Intuitive design Enhance the guest interaction; don’t disrupt it 34
Slide 35: InfoGenesis Mobile Key Features
TECHNOLOGY | INNOVATION | SOLUTIONS InfoGenesis Mobile Key Features 35 Separate multi-pass and single pass workflow support Credit card authorization support Room charge authorization, guest inquiry and tender Choice group support Seat and covers support Table assignment Offline support Bluetooth® p
Slide 36: Insight Mobile Manager
TECHNOLOGY | INNOVATION | SOLUTIONS Insight™ Mobile Manager Fully integrated into PMS Intuitive design Key performance indicators Revenue impacts at a glance 36
Slide 37: Insight Mobile Manager Key Features
TECHNOLOGY | INNOVATION | SOLUTIONS Insight Mobile Manager Key Features 37 Allows hoteliers to view key property operating metrics quickly and easily from a mobile device Fully integrated with Agilysys Lodging Management System utilizing the same login credentials User-focused design means we plan f
Slide 38: Closing Remarks and Q&A
TECHNOLOGY | INNOVATION | SOLUTIONS CLOSING REMARKS AND Q&A 38
Slide 39: Investment Highlights
TECHNOLOGY | INNOVATION | SOLUTIONS Investment Highlights 39 •$4B in annual industry spend for current product portfolio •Increase market share and product capabilities through focused investments, acquisitions and leading customer service Significant Room for Growth •Ability to leverage large insta
Slide 40: Appendices
TECHNOLOGY | INNOVATION | SOLUTIONS APPENDICES 40
Slide 41: Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS Non-GAAP Reconciliation 41 2011 2012 2013 TTM Q1 2014 Operating loss (22,636)$ (46,395)$ (9,996)$ (7,050)$ Share-based compensation expense 2,402 2,440 1,670 1,885 Amortization of intangibles 5,037 3,585 3,284 3,223 Asset impairments and related charges 959 9,681
Slide 42: Presenters – James Dennedy
TECHNOLOGY | INNOVATION | SOLUTIONS Presenters James Dennedy President and Chief Executive Officer James Dennedy was appointed to the company’s board of directors in June 2009. He served on the audit committee and on the company’s special committee that oversaw the sale of TSG. Prior to his appointm
Slide 43: Presenters – Janine Seebeck
TECHNOLOGY | INNOVATION | SOLUTIONS Presenters Janine Seebeck Senior Vice President, Chief Financial Officer and Treasurer Janine Seebeck is Agilysys' senior vice president, chief financial officer and treasurer, with responsibilities for the company’s financial and treasury functions, including fin
Slide 44: Presenters – Larry Steinberg
TECHNOLOGY | INNOVATION | SOLUTIONS Presenters Larry Steinberg Senior Vice President and Chief Technology Officer Larry Steinberg was named senior vice president and chief technology officer in 2012. Prior to joining Agilysys, Steinberg was a development manager for Microsoft, where he focused on au
Slide 45: Presenters – Tony Ross
TECHNOLOGY | INNOVATION | SOLUTIONS Presenters Tony Ross Vice President of Sales Tony Ross is Agilysys' vice president of sales. Ross joined Agilysys in 1993 and has served as regional sales manager and director of sales. Prior to joining Agilysys, Ross held positions at Rockwell International Missi
Slide 46: Presenters – Maris Berzins
TECHNOLOGY | INNOVATION | SOLUTIONS Presenters Maris Berzins Vice President of Development, Applications Maris Berzins is the VP of Development, Applications. Prior to joining Agilysys, Mr. Berzins was the VP of Product for Kiha software, a developer of mobile applications and services that, using s
Slide 47: Presenters – Rehan Jaddi
TECHNOLOGY | INNOVATION | SOLUTIONS Presenters Rehan Jaddi Vice President of Development for Enterprise Solutions Rehan Jaddi is vice president of development for enterprise solutions at Agilysys, where he is responsible for software development and delivery strategy for the company’s property manag