Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Investor Presentation (May 2019)
31 slides from Agilysys's investor presentation, May 30, 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 2019
Slide 2: Forward-looking Statements & Non-GAAP Financial Information
Forward-looking Statements & Non-GAAP Financial Information TECHNOLOGY | INNOVATION | SOLUTIONS Forward-Looking Language This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward- loo
Slide 3: Agilysys Overview
Agilysys Overview TECHNOLOGY | INNOVATION | SOLUTIONS • Agilysys is a Technology Software Solutions Company Subscription Reservations and Exclusively Focused on the Hospitality Industry On Prem Analytics Guest • Our Solutions Are Mission Critical to Core Hospitality Operations Optimization Value - T
Slide 4: We Serve Leading Hospitality Brands
We Serve Leading Hospitality Brands TECHNOLOGY | INNOVATION | SOLUTIONS Gaming – 56% of Revenue Hotels, Resorts and Cruise – 26% of Revenue FoodFood Service – 17% of Revenue Restaurants, Universities, Stadia and Healthcare – 1% of Revenue Note: Revenue contribution figures represent percentage for t
Slide 5: Agilysys Products
Agilysys Products TECHNOLOGY | INNOVATION | SOLUTIONS Well-Established rGuest Emerging POINT OF SALE (POS) PROPERTY MANAGEMENT (PMS) OTHER 5
Slide 6: Go To Market Strategy
Go To Market Strategy TECHNOLOGY | INNOVATION | SOLUTIONS OBSESSIVELY CUSTOMER CENTRIC IN EVERY MARKET WE SERVE ENGINEERING DRIVEN COMPANY ~10%* R&D Team FY19 YOY ~40%* Increase Strength** Improvement in in YOY Jan 2017 – 230 Customer International Mar 2019 – 500 Retention Bookings Dec 2019 – 650 vs
Slide 7: Agilysys Mission
Agilysys Mission TECHNOLOGY | INNOVATION | SOLUTIONS HELP OUR CUSTOMERS IMPROVE GUEST EXPERIENCE AND LOYALTY WHATEVER IT TAKES, INCLUDING INTEGRATION WITH 3rd PARTY PARTNERS WITH DEDICATION TO PAST, PRESENT & FUTURE CUSTOMER INVESTMENTS IN OUR PRODUCTS AND SERVICES 7
Slide 8: What Sets Agilysys Apart
What Sets Agilysys Apart TECHNOLOGY | INNOVATION | SOLUTIONS Pure Hospitality Hospitality is all We Do Because our Business is 100% Focused on this Industry Comprehensive Solutions Agilysys has the Broadest Software Offerings with the Deepest Functionality in the Market Obsessively Customer Centric
Slide 9: Hospitality Addressable Market
Hospitality Addressable Market TECHNOLOGY | INNOVATION | SOLUTIONS ARR Market Opportunity ARR Product Opportunity $4.8 Billion $4.8 Billion SA $0.35B 7% APAC $1.36B PMS 28% $1.61B NA 34% $1.72B POS 37% $3.18B 66% EMEA $1.36B 28% Agilysys Revenue ~ $140.8M* *Fiscal year ended March 31, 2019. 9
Slide 10: Achievements Under New Management Team
Achievements Under New Management Team TECHNOLOGY | INNOVATION | SOLUTIONS • Six Consecutive Quarters of Sequential Revenue Growth January 2017 (Q4 - FY17) we began a • Four Consecutive Quarters of Record Revenue focus on cost control and aligning • Expect Approximately 11% Year-Over-Year Revenue Gr
Slide 11: Creating Value with New Leadership and Strategy
Creating Value with New Leadership and Strategy TECHNOLOGY | INNOVATION | SOLUTIONS 23 22 21 Announced 20 First Ever Positive AOE 19 Tony Quarter Pritchett 18 Promoted to CFO 17 Ramesh Srinivasan Heather Foster 16 Joins as Sridhar Joins as VP of CEO Laveti Marketing 15 Joins as R&D VP 14 13 IDC Esta
Slide 12: India Development Center
India Development Center TECHNOLOGY | INNOVATION | SOLUTIONS • Currently Doubling Capacity To: • 68,000 Square Feet • 660 Employee Capacity • Approximately 90% of Current Chennai Employees are Technical Staff 12
Slide 13: Long Term Financial Targets
Long Term Financial Targets TECHNOLOGY | INNOVATION | SOLUTIONS 12/31/17 Current EV/Rev EV/Rev 1.9 3.4 Targeting Four-Year Revenue Growth CAGR of between 10% - 20% and Adjusted EBITDA of between 10%-20% of Revenue by FY2021 (begins April 2020) 13
Slide 14: Financial Overview
FINANCIAL OVERVIEW Agilysys, ,
Slide 15: Evolving Business, Evolving P&L
Evolving Business, Evolving P&L TECHNOLOGY | INNOVATION | SOLUTIONS Financial Metrics and Valuation* Business Metrics (as of 03/31/19) Share Price (5/23/19) $22.33 Direct POS End Points Managed ~54k Diluted Shares Outstanding 23.1M Y/Y Growth 16% Diluted Market Capitalization $514.8M Direct Hotel Ro
Slide 16: We Provide Industry Leading Hospitality Solutions
We Provide Industry Leading Hospitality Solutions TECHNOLOGY | INNOVATION | SOLUTIONS PROPERTY POINT-OF-SALE MANAGEMENT 63% of Revenue 25% POS Solutions of Revenue PMS Solutions ~54k end points at 03/31/19 ~271k rooms at 03/31/19 +16% since 03/31/18 9% +5% since 03/31/18 of Revenue DOCUMENT INVENTOR
Slide 17: Strong Balance Sheet
Strong Balance Sheet TECHNOLOGY | INNOVATION | SOLUTIONS Consolidated Balance Sheet (in thousands) March 31, 2018 March 31, 2019 Cash, Cash Equivalents and Marketable Securities $39,943 $40,771 Other Current Assets 23,981 38,237 Long-Term Assets 93,283 84,583 Total Assets $157,207 $163,591 Current L
Slide 18: Historical Financial Results
Historical Financial Results TECHNOLOGY | INNOVATION | SOLUTIONS Revenue - GAAP Net Loss - GAAP $145,000 $140,842 ($1,000) $140,000 $135,000 ($6,000) ($3,765) $130,000 $127,678 $127,360 ($11,000) ($8,350) $125,000 $120,366 ($11,721) $120,000 ($13,164) ($16,000) $115,000 FY16 FY17 FY18 FY19 FY16 FY17
Slide 19: Revenue - Quarterly
Revenue - Quarterly TECHNOLOGY | INNOVATION | SOLUTIONS Total Revenue $37,000 $36,618 $36,014 $36,000 $35,000 $34,203 $33,865 $34,007 $34,000 $33,448 $33,000 $32,056 $32,000 $31,310 $31,000 $30,602 $30,129 $30,000 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 All numbers in thousands.
Slide 20: Profitability Metrics - Quarterly Adjusted Earnings from Operations
Profitability Metrics - Quarterly TECHNOLOGY | INNOVATION | SOLUTIONS Adjusted Earnings from Operations – Non GAAP^ $1,995 $2,000 $1,858 $1,000 $564 $684 $237 $0 ($1,000) ($1,158) ($1,440) ($2,000) ($1,909) ($3,000) ($3,475) ($4,000) ($3,779) Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'
Slide 21: Profitability Metrics - Quarterly Adjusted EBITDA
Profitability Metrics - Quarterly TECHNOLOGY | INNOVATION | SOLUTIONS Adjusted EBITDA – Non GAAP^ $3,500 $3,113 $2,965 $3,061 $3,000 $2,641 $2,500 $2,310 $2,392 $2,069 $2,135 $2,000 $1,640 $1,500 No Software Capitalization $1,000 from Q2 FY19 onwards $500 $0 ($500) ($234) Q3'17 Q4'17 Q1'18 Q2'18 Q3'
Slide 22: Profitability Metrics - Quarterly Adjusted EBITDA less Capitalized Software
Profitability Metrics - Quarterly TECHNOLOGY | INNOVATION | SOLUTIONS Adjusted EBITDA less Capitalized Software Development Costs – Non GAAP^ $3,000 $2,584 $2,392 $2,135 $2,000 $1,415 $981 $1,000 $274 $0 ($177) ($385) ($1,000) No Software ($1,350) Capitalization ($2,000) from Q2 FY19 onwards ($3,000
Slide 23: Appendix
APPENDIX
Slide 24: Senior Management Leading New Growth Vision
Senior Management Leading New Growth Vision TECHNOLOGY | INNOVATION | SOLUTIONS RAMESH SRINIVASAN - President and Chief Executive Officer Ramesh is an accomplished CEO with leadership and turnaround success across multiple industries resulting in rapid and sustainable long-term growth and significan
Slide 25: Senior Management Leading New Growth Vision
Senior Management Leading New Growth Vision TECHNOLOGY | INNOVATION | SOLUTIONS KYLE BADGER - Senior Vice President, General Counsel and Secretary Kyle leads the global legal and human resources teams, and brings over 22 years of legal experience representing public and private companies in general
Slide 26: Senior Management Leading New Growth Vision
Senior Management Leading New Growth Vision TECHNOLOGY | INNOVATION | SOLUTIONS ROB JACKS – Chief Information Officer Rob was promoted to CIO in December 2018 and is responsible for advancing Agilysys’ internal systems and information technology processes. Rob has a reputation as a transformational
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation TECHNOLOGY | INNOVATION | SOLUTIONS AGILYSYS, INC. RECONCILIATION OF NET LOSS TO ADJUSTED EARNINGS FROM OPERATIONS (UNAUDITED) Twelve Months Ended March 31 (In thousands) 2019 2018 2017 2016 Net loss $ (13,164) $ (8,350) $ (11,721) $ (3,765) Income tax expense (benefit) 221 (
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation TECHNOLOGY | INNOVATION | SOLUTIONS RECONCILIATION OF NET LOSS TO ADJUSTED EARNINGS FROM OPERATIONS (UNAUDITED) Three Months Ended March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, (In thousands) 2019 2018 2018
Slide 29: Cash Flow
Cash Flow TECHNOLOGY | INNOVATION | SOLUTIONS FY19 FY18 FY17 FY16 Operating activities Loss from continuing operations $ (13,164) $ (8,350) $ (11,721) $ (3,765) Non cash adjustments, restructuring, legal settlements 22,219 16,586 14,110 7,741 Changes in assets & liabilities (1,814) (1,362) 1,044 3,2
Slide 30: Agilysys Global Footprint
Agilysys Corporate Headquarters Agilysys Global Footprint • Alpharetta, Georgia Agilysys US Offices • Las Vegas, Nevada • Santa Barbara, California • Bellevue, Washington Agilysys EMEA Office Windsor, UK • United Kingdom Seattle, WA Las Vegas, NV Agilysys APAC Offices Santa Barbara, CA Alpharetta, G
Slide 31: Contact
Contact: Tony Pritchett Chief Financial Officer (770) 810-7941 Richard Land / Norberto Aja InvestorRelations@agilysys.com JCIR (212) 835-8500 Dave Wood agys@jcir.com VP of Finance (770) 810-7920 InvestorRelations@agilysys.com 31