Investor Presentation June 2015 Forward-looking Statements & - - PowerPoint PPT Presentation

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Investor Presentation June 2015 Forward-looking Statements & - - PowerPoint PPT Presentation

TECHNOLOGY | INNOVATION | SOLUTIONS Investor Presentation June 2015 Forward-looking Statements & Non-GAAP Financial Information TECHNOLOGY | INNOVATION | SOLUTIONS Forward-Looking Language This presentation and all publicly


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SLIDE 1

TECHNOLOGY | INNOVATION | SOLUTIONS

Investor Presentation

June 2015

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SLIDE 2

TECHNOLOGY | INNOVATION | SOLUTIONS

Forward-looking Statements & Non-GAAP Financial Information

  • 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 from time to time make, "forward-looking statements" within the meaning

  • f the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be

identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods, including statements on the slides in this presentation titled “Total Addressable Market,” “Business Outlook,” and “Investment Highlights.” Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on management’s current expectations, intentions or beliefs and are subject to a number of factors, assumptions and uncertainties that could cause actual results to differ materially from those described in the forward-looking

  • statements. Factors that could cause or contribute to such differences or that might otherwise impact the business include the

risk factors set forth in Item 1A of the company’s Annual Report for the fiscal year ended March 31, 2015. Copies are available from the SEC or the Agilysys website. We undertake no obligation to update any such factor or to publicly announce the results

  • f any revisions to any forward-looking statements contained herein whether as a result of new information, future events or
  • therwise.

Use of Non-GAAP Financial Information To supplement the unaudited condensed consolidated financial statements presented in accordance with U.S. GAAP in this presentation, certain non-GAAP financial measures as defined by the SEC rules are used. These non-GAAP financial measures include adjusted EBITDA from continuing operations, adjusted operating income (loss) from continuing operations, adjusted income (loss) from continuing operations, and adjusted cash provided by continuing operations. Management believes that such information can enhance investors' understanding of the company's ongoing operations. See the tables on slide 20 & 21 for reconciliations to the comparable GAAP measures.

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SLIDE 3

TECHNOLOGY | INNOVATION | SOLUTIONS

Key Financial Statistics

  • Adjusted EBITDA ^

Market Stats

Stock Price (6/12/15) $9.30

Diluted Shares Outstanding

22.3M 52 Week High $14.52

Diluted Market Capitalization

$207M 52 Week Low $8.72

Total Debt (at 3/31/2015)

$0.2M Average Daily Volume (3 months) 37,089

Cash & Marketable Securities

(at 3/31/2015)

$75.1M Basic Shares Outstanding 22.3M

Enterprise Value

$133M

Financial Metrics & Valuation (FY15)

Revenue

$103.5M

Adjusted EBTIDA^

$1.2M

EPS from Continuing Ops.

($0.51)

EV/Revenue

1.3x

($9.3) $1.8 $6.5 $1.2

($20.0) ($10.0) $0.0 $10.0 FY12 FY13 FY14 FY15

^Non-GAAP measure, see reconciliation on slide 20 & 21 All historical numbers reflect the sale of RSG and UK entity

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SLIDE 4

TECHNOLOGY | INNOVATION | SOLUTIONS

Agilysys Builds Lasting Connections

  • Team

Customers / Guests Community Investors

Connecting

Our customers with their guests Our customers with our team Our team with their communities

Lasting Connections

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SLIDE 5

TECHNOLOGY | INNOVATION | SOLUTIONS TECHNOLOGY | INNOVATION | SOLUTIONS

Established In-Market Product Offerings: Interfaced, Not Common Platform

Workforce Management

(Staff)

2% of Revenue

Property Management

(Book, Arrive, Order)

28% of Revenue

Property Management

(Book, Arrive, Order)

28% of Revenue

Property Management

(Book, Arrive, Order)

28% of Revenue

Point-of-Sale

(Order)

56% of Revenue

Inventory & Procurement

(Procure)

11% of Revenue

Document Management

(Order, Procure)

3% of Revenue

Note: Revenue contribution figures represent percentage of fiscal year ended March 31, 2015.

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SLIDE 6

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SLIDE 13

TECHNOLOGY | INNOVATION | SOLUTIONS

Total Addressable Market is Growing

C

$12B+ Market Opportunity

$4B Addressed Market

AGYS

Product roadmap significantly expands total addressable market Industry growth expected at 5-7% annually (commissioned IHL and STR study)

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SLIDE 14

TECHNOLOGY | INNOVATION | SOLUTIONS

Significant Room for Growth in Markets We Serve

C

$4B in annual spending on existing software services and recurring software maintenance for current product portfolio

49% 24% 18% 9%

Revenue Mix by Market (FY15)

Gaming

Pinnacle Entertainment Sands Casino & Resort The Cosmopolitan of Las Vegas Valley View Casino & Hotel Caesars Palace Casino Del Sol Boyd Gaming Ho-Chunk Gaming Oxford Casino Maryland Live! Casino

Hotels, Resorts, and Cruise

The Broadmoor Colorado Springs The Breakers Palm Beach The SeaPines Resort Black Rock Oceanfront Resort Royal Caribbean International The Landmark London Pinehurst Vail Resorts Royal Lahaina Resort Norwegian Cruise Lines

Food Service

Compass Group Benchmarc Restaurants by Marc Murphy Sugar Factory BRguest Hospitality Savor

Restaurants, Universities, Stadia and Healthcare

Yale University Vanderbilt University California State University at Fullerton – Auxiliary Services Corporation

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SLIDE 15

TECHNOLOGY | INNOVATION | SOLUTIONS

Historical Financial Results

C

All numbers in thousands, except per share data *All historical numbers reflect the sale of RSG and UK entity ^ Non-GAAP measure, see reconciliation on slide 20 & 21

$82,051 $94,008 $101,261 $103,514

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000

FY12 FY13 FY14 FY15

Revenue *

($1,909) $3,235 $876

($5,000) ($3,000) ($1,000) $1,000 $3,000 $5,000

FY13 FY14 FY15

Adjusted Cash from Continuing Operations^

($9,311) $1,836 $6,450 $1,174

($15,000) ($10,000) ($5,000) $0 $5,000 $10,000

FY12 FY13 FY14 FY15

Adjusted EBITDA^

($37,493) ($6,214) ($2,895) ($11,497)

($50,000) ($40,000) ($30,000) ($20,000) ($10,000) $0

FY12 FY13 FY14 FY15

Loss from Continuing Operations *

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SLIDE 16

TECHNOLOGY | INNOVATION | SOLUTIONS

Recurring Revenue Contribution Focus

C*

FY11 FY12 FY13 FY14 FY15

48.9% 55.3% 52.2% 52.5% 54.1% 36.2% 28.9% 33.0% 34.2% 30.8% 14.9% 15.8% 14.8% 13.3% 15.1% Product Mix (as % of total revenue)

Recurring Revenue (support, maintenance & subscription) Product Revenue Professional Services Revenue

  • Recurring revenues

comprised 54% of the Company’s FY15 revenue versus 49% in FY11

  • Leveraging growing market

share and installed product base to offer an increased level of recurring services

  • Expanding SaaS-based

product offerings to create an ongoing customer relationship and foster enhanced recurring revenues

SaaS revenues up 11% in fiscal 2015 vs fiscal 2014

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SLIDE 17

TECHNOLOGY | INNOVATION | SOLUTIONS

Strong Balance Sheet

C0

Consolidated Balance Sheet (unaudited) in thousands

March 31, 2015 March 31, 2014 Cash, cash equivalents and marketable securities $75,067 $99,566 Other current assets 29,950 30,288 Long-term assets 76,508 61,041 Total assets $181,525 $190,895 Current liabilities $50,610 $48,143 Other liabilities 6,727 9,879 Total liabilities $57,337 $58,022 Shareholders’ equity 124,188 132,873 Total liabilities and shareholders’ equity $181,525 $190,895

Cash and liquid investments of $75 million Fully valued federal net operating losses of approximately $170M

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SLIDE 18

TECHNOLOGY | INNOVATION | SOLUTIONS

FY16 Outlook

Revenue Outlook

Flat to slightly above fiscal 2015 result of $103.5M

Gross margin

Expected to be consistent with fiscal 2015 in high 50% range

Adjusted EBITDA

Will show incrementally greater profitability over fiscal 2015 adjusted EBITDA of $1.2M

Year-end cash of approximately $50 million

Reflects ongoing investment in transition to a SaaS company and in rGuest platform development

C=

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SLIDE 20

TECHNOLOGY | INNOVATION | SOLUTIONS

Non-GAAP Reconciliation

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SLIDE 21

TECHNOLOGY | INNOVATION | SOLUTIONS

Non-GAAP Reconciliation

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