Agilysys, Inc. · NASDAQ:AGYS
Agilysys — Investor Presentation (June 2017)
25 slides from Agilysys's investor presentation, Jun 20, 2017
Slide 1: Investor Presentation June 2017
Investor Presentation June 2017
Slide 2: Forward-looking Statements & Non-GAAP Financial Information
TECHNOLOGY | INNOVATION | SOLUTIONS Forward-looking Statements & Non-GAAP Financial Information 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-look
Slide 3: Who We Are and What We Do
WHO WE ARE AND WHAT WE DO Agilysys. .
Slide 4: We Provide Leading Hospitality Solutions
TECHNOLOGY | INNOVATION | SOLUTIONS We Provide Leading Hospitality Solutions Lodging Solutions ~250k rooms at 3/31/17, +4% since 3/31/16 F&B Solutions ~40k end points at 3/31/17, +12% since 3/31/16 POINT-OF-SALE 57% of Revenue 23% of Revenue DOCUMENT MANAGEMENT 10% of Revenue INVENTORY & PROCUREMENT
Slide 5: We Serve Leading Hospitality Brands
TECHNOLOGY | INNOVATION | SOLUTIONS Gaming Hotels, Resorts and Cruise Food Service Restaurants, Universities, Stadia and Healthcare We Serve Leading Hospitality Brands 5 Note: Revenue contribution figures represent percentage of revenue for the twelve months ended March 31, 2017 51% 21% 17% 11% Reve
Slide 6: Our Solutions Support The Full Guest Experience
TECHNOLOGY | INNOVATION | SOLUTIONS Our Solutions Support The Full Guest Experience Dining Experience Lodging Experience HOTEL Discover Imagine Book Arrive Depart Reflect and Share Enjoy Pay Consume Inspire Guest Customers are shopping for memorable experiences When expectations are met, a virtuous
Slide 7: Addressing the Guest Experience Lifecycle
TECHNOLOGY | INNOVATION | SOLUTIONS Addressing the Guest Experience Lifecycle Optimize Operations, Reduce Costs Personalized Service, Increase Lifetime Value Guest Recruitment, Increase Sales Wallet Share Growth, Improve Profitability 7
Slide 8: Agilysys Products
TECHNOLOGY | INNOVATION | SOLUTIONS Agilysys Products rGuest Well-Established Partner Food & Beverage Lodging Cross- Functional 8
Slide 9: Agilysys Competitive Position
TECHNOLOGY | INNOVATION | SOLUTIONS Agilysys Competitive Position Hardware Centric • Significant revenue from hardware Software Centric • Majority of revenue from software Point Solutions • Represents all or majority of revenue • Some related modules Hospitality Suite • POS & PMS • Broad solution co
Slide 10: What Makes Agilysys Different?
TECHNOLOGY | INNOVATION | SOLUTIONS What Makes Agilysys Different? Market-leading hospitality knowledge coupled with top technology talent Competitive Strengths Scalability Support deployments from single lane café (POS) to 100K+ room enterprise (PMS) on a single instance Scalability & Enterprise St
Slide 11: Strategic & Tactical Initiatives
TECHNOLOGY | INNOVATION | SOLUTIONS Strategic & Tactical Initiatives • Achieving added leverage from our significant competitive advantages and resources. • Increasing investments in crucial growth areas without any significant impact on overall spend in percentage of revenue terms. Expect to increa
Slide 12: Business Transformation & Customer Service
TECHNOLOGY | INNOVATION | SOLUTIONS Business Transformation & Customer Service • Business Transformation • Driving efficiency & cost savings • High performance execution • Innovation in all areas • Focus on Great Customer Service • The heart of everything we do • Spending more face time with custome
Slide 13: India Development Center
TECHNOLOGY | INNOVATION | SOLUTIONS India Development Center 13 Delhi Chennai Kolkata Mumbai Pune Bengaluru Hyderabad Kanpur Ahmedabad IDC • 17,000 Square Feet • 160 Employee Capacity • ~60-70 New Hires by July 31 • Full Capacity EOY FY18 • Other Tenants • Amazon, Cisco, Citi, GE
Slide 14: Financial Overview
FINANCIAL OVERVIEW Agilysys. .
Slide 15: Evolving Business, Evolving P&L: Financial Metrics and Valuation
TECHNOLOGY | INNOVATION | SOLUTIONS Evolving Business, Evolving P&L Financial Metrics and Valuation Share Price (6/16/17) $9.61 Diluted Shares Outstanding 22.6M Diluted Market Capitalization $217M Cash (as of 3/31/17) $49.3M Debt (as of 3/31/17) $0.2M Enterprise Value $168M Revenue $127.7M Gross Pro
Slide 16: Diversified Revenue Base
TECHNOLOGY | INNOVATION | SOLUTIONS Diversified Revenue Base 51% 21% 17% 11% Gaming Hotels & Resorts Food Service RUSH 38% 30% 20% 12% Support Products Professional Services Subscription 94% 6% Iconic rGuest Revenue by Market Vertical* Revenue by Type* Revenue by Solution Type* *For the fiscal year
Slide 17: Strong Balance Sheet
TECHNOLOGY | INNOVATION | SOLUTIONS Strong Balance Sheet Consolidated Balance Sheet (in thousands) March 31, 2016 March 31, 2017 Cash, cash equivalents and marketable securities $60,608 $49,255 Other current assets 34,893 24,265 Long-term assets 89,656 93,785 Total assets $185,157 $167,305 Current l
Slide 18: Historical Financial Results
TECHNOLOGY | INNOVATION | SOLUTIONS Historical Financial Results All numbers in thousands, except per share data *FY14 results reflect the sale of RSG and UK entity as discontinued operations ^ Non-GAAP measure, see reconciliation on slide 19 $101,261 $103,514 $120,366 $127,678 $0 $20,000 $40,000 $6
Slide 19: Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS Non-GAAP Reconciliation 19 2017 2016 2015 2014 Net loss (11,721)$ (3,765)$ (11,497)$ (2,895)$ Income tax expense (benefit) 236 6 (1,054) (2,491) Loss before taxes (11,485) (3,759) (12,551) (5,386) Depreciation of fixed assets 2,409 2,199 2,225 2,074 Amortization o
Slide 20: Spend and Spend as % of Revenue
TECHNOLOGY | INNOVATION | SOLUTIONS Spend and Spend as % of Revenue $10,000 $15,000 $20,000 $25,000 $30,000 FY14 FY15 FY16 FY17 Spend for PD, S&M, and G&A (GAAP) Product Development Sales and Marketing General and Administrative 10% 15% 20% 25% 30% FY14 FY15 FY16 FY17 Spend as a % of Revenue for PD,
Slide 21: Cash Flow
TECHNOLOGY | INNOVATION | SOLUTIONS Cash Flow FY17 FY16 FY15 FY14 Operating activities (Loss) income from continuing operations (11,721)$ (3,765)$ (11,497)$ (2,895)$ Non cash adjustments, restructuring, legal settlements 14,110$ 7,741$ 10,117$ 10,024$ Changes in assets & liabilities 1,044$ 3,242$ (8
Slide 22: Great Market Opportunity
TECHNOLOGY | INNOVATION | SOLUTIONS Great Market Opportunity Type Terminal s Rooms Terminals Rooms Terminal s Rooms Terminals Rooms Terminal s Rooms aming $10 $10 $20 $20 $40 $30 $5 $5 $90 $100 HRC $200 $500 $300 $600 $200 $400 $20 $50 $700 $1,500 FSM High End $10 $20 $20 $5 $50 Food Services $700 $
Slide 23: Revenue Possibilities
TECHNOLOGY | INNOVATION | SOLUTIONS $128 $148 $168 $188 $208 $228 $248 $268 $288 FY17 FY18 FY19 FY20 FY21 Mill io n s Revenue Possibilities 20% CAGR 15% CAGR 10% CAGR Estimated 10%-20% Four-Year Revenue Growth CAGR Adjusted Earnings from Operations 10%-15% of Revenue in FY2020 is Possible 23
Slide 24: Fiscal 2018 Outlook
TECHNOLOGY | INNOVATION | SOLUTIONS Fiscal 2018 Outlook • Revenue of approximately $136 - $140 million compared to fiscal 2017 revenue of $127.7 million • Expect bookings will continue to favor subscription-type contracts • Gross margin is expected to be in the low-50% range • Reflects the impact of
Slide 25: Thank You
TECHNOLOGY | INNOVATION | SOLUTIONS Thank You 25