Ohio | 000-5734 | 34-0907152 | ||
(State or other jurisdiction | (Commission File Number) | (IRS Employer Identification No.) | ||
of incorporation) |
425 Walnut Street, Suite 1800 Cincinnati, Ohio | 45202 | |
(Address of principal executive offices) | (ZIP Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.01 | Completion of Acquisition or Disposition of Assets. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description | |
99.1 | Press release dated July 2, 2013. | |
99.2 | Unaudited pro forma condensed consolidated balance sheet of Agilysys, Inc. as of March 31, 2013 and unaudited pro forma condensed consolidated statements of operations for the years ended March 31, 2013, 2012 and 2011, including the notes hereto. |
AGILYSYS, INC. | ||||
By: | /s/Robert R. Ellis | |||
Robert R. Ellis | ||||
Senior Vice President, Chief Financial Officer, | ||||
Chief Operating Officer and Treasurer |
Exhibit No. | Description | |
99.1 | Press release dated July 2, 2013. | |
99.2 | Unaudited pro forma condensed consolidated balance sheet of Agilysys, Inc. as of March 31, 2013 and unaudited pro forma condensed consolidated statements of operations for the years ended March 31, 2013, 2012 and 2011, including the notes hereto. |
Investor Contact: | |
Robb Ellis | Richard Land, Norberto Aja, Jim Leahy |
Chief Operating Officer and Chief Financial Officer | JCIR |
Agilysys, Inc. | 212-835-8500 or agys@jcir.com |
770-810-7800 or investorrelations@agilysys.com |
Sale of | |||||||||||||||
RSG | Pro Forma | ||||||||||||||
(In thousands, except share data) | As Reported | Business | Adjustments | Pro Forma | |||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 82,931 | $ | — | $ | 32,573 | (b) | $ | 115,504 | ||||||
Accounts receivable, net | 45,626 | 27,721 | (a) | — | 17,905 | ||||||||||
Inventories | 12,239 | 11,159 | (a) | — | 1,080 | ||||||||||
Prepaid expenses | 4,081 | 913 | (a) | — | 3,168 | ||||||||||
Other current assets | 884 | 214 | (a) | — | 670 | ||||||||||
Total current assets | 145,761 | 40,007 | 32,573 | 138,327 | |||||||||||
Property and equipment, net | 15,543 | 1,689 | (a) | — | 13,854 | ||||||||||
Goodwill | 14,128 | — | — | 14,128 | |||||||||||
Intangible assets, net | 17,288 | 409 | (a) | — | 16,879 | ||||||||||
Other non-current assets | 4,244 | 64 | (a) | — | 4,180 | ||||||||||
Total assets | $ | 196,964 | $ | 42,169 | $ | 32,573 | $ | 187,368 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts payable | $ | 30,177 | $ | 19,750 | (a) | $ | — | $ | 10,427 | ||||||
Deferred revenue | 25,676 | 5,830 | (a) | — | 19,846 | ||||||||||
Accrued and other current liabilities | 17,481 | 6,950 | (a) | 2,406 | (c) | 12,937 | |||||||||
Capital lease obligations – current | 306 | 248 | (a) | — | 58 | ||||||||||
Total current liabilities | 73,640 | 32,778 | 2,406 | 43,268 | |||||||||||
Deferred income taxes – non-current | 4,002 | — | — | 4,002 | |||||||||||
Capital lease obligations – non-current | 381 | 353 | (a) | — | 28 | ||||||||||
Other non-current liabilities | 5,085 | 446 | (a) | — | 4,639 | ||||||||||
Shareholders’ equity | 113,856 | — | 21,575 | (c) | 135,431 | ||||||||||
Total liabilities and shareholders’ equity | $ | 196,964 | $ | 33,577 | $ | 23,981 | $ | 187,368 |
Sale of | |||||||||||||||
RSG | Pro Forma | ||||||||||||||
(In thousands, except per share data) | As Reported | Business | Adjustments | Pro Forma | |||||||||||
Net revenue: | |||||||||||||||
Products | $ | 123,798 | $ | 90,281 | (d) | $ | — | $ | 33,517 | ||||||
Support, maintenance and subscription services | 77,145 | 28,003 | (d) | 1,094 | (e) | 50,236 | |||||||||
Professional services | 35,197 | 20,622 | (d) | 34 | (e) | 14,609 | |||||||||
Total net revenue | 236,140 | 138,906 | (d) | 1,128 | 98,362 | ||||||||||
Cost of goods sold: | |||||||||||||||
Products | 96,618 | 77,971 | (d) | — | 18,647 | ||||||||||
Support, maintenance and subscription services | 27,760 | 18,351 | (d) | 1,094 | (e) | 10,503 | |||||||||
Professional services | 21,592 | 14,654 | (d) | 34 | (e) | 6,972 | |||||||||
Total cost of goods sold | 145,970 | 110,976 | (d) | 1,128 | 36,122 | ||||||||||
Gross profit | 90,170 | 27,930 | (d) | — | 62,240 | ||||||||||
Operating expenses: | |||||||||||||||
Product development | 32,680 | 5,668 | (d) | — | 27,012 | ||||||||||
Sales and marketing | 21,664 | 6,917 | (d) | — | 14,747 | ||||||||||
General and administrative | 27,601 | 2,869 | (d) | 2,974 | (f) | 21,758 | |||||||||
Depreciation of fixed assets | 2,674 | 518 | (d) | — | 2,156 | ||||||||||
Amortization of intangibles | 3,382 | 98 | (d) | — | 3,284 | ||||||||||
Asset impairment and related charges | 120 | — | — | 120 | |||||||||||
Legal settlements | 1,664 | — | — | 1,664 | |||||||||||
Restructuring, severance and other charges | 1,496 | 1 | (d) | — | 1,495 | ||||||||||
Operating (loss) income | (1,111 | ) | 11,859 | (d) | (2,974 | ) | (9,996 | ) | |||||||
Other (income) expenses : | |||||||||||||||
Interest income | (14 | ) | — | — | (14 | ) | |||||||||
Interest expense | 346 | — | 80 | (g) | 266 | ||||||||||
Other expenses, net | 139 | — | 2 | (g) | 137 | ||||||||||
(Loss) income before income taxes | (1,582 | ) | 11,859 | (d) | (3,056 | ) | (10,385 | ) | |||||||
Income tax (benefit) expense | (284 | ) | 2,410 | (d) | 712 | (h) | (3,406 | ) | |||||||
Net (loss) income from continuing operations | $ | (1,298 | ) | $ | 9,449 | (d) | $ | (3,768 | ) | $ | (6,979 | ) | |||
Basic and diluted weighted average shares outstanding | 21,880 | 21,880 | |||||||||||||
Net loss per share – basic and diluted: | |||||||||||||||
Loss from continuing operations | $ | (0.06 | ) | $ | (0.32 | ) |
Sale of | |||||||||||||
RSG | Pro Forma | ||||||||||||
(In thousands, except per share data) | As Reported | Business | Adjustments | Pro Forma | |||||||||
Net revenue: | |||||||||||||
Products | 105,601 | 79,993 | (d) | — | 25,608 | ||||||||
Support, maintenance and subscription services | 72,711 | 25,938 | (d) | 839 | (e) | 47,612 | |||||||
Professional services | 30,577 | 17,422 | (d) | — | (e) | 13,155 | |||||||
Total net revenue | 208,889 | 123,353 | (d) | 839 | 86,375 | ||||||||
Cost of goods sold: | |||||||||||||
Products | 83,550 | 69,097 | (d) | — | 14,453 | ||||||||
Support, maintenance and subscription services | 25,706 | 16,203 | (d) | 839 | (e) | 10,342 | |||||||
Professional services | 19,797 | 12,732 | (d) | — | (e) | 7,065 | |||||||
Total cost of goods sold | 129,053 | 98,032 | (d) | 839 | 31,860 | ||||||||
Gross profit | 79,836 | 25,321 | (d) | — | 54,515 | ||||||||
Operating expenses: | |||||||||||||
Product development | 30,309 | 5,820 | (d) | — | 24,489 | ||||||||
Sales and marketing | 24,006 | 8,351 | (d) | — | 15,655 | ||||||||
General and administrative | 32,889 | 3,496 | (d) | 1,115 | (f) | 28,278 | |||||||
Depreciation of fixed assets | 4,602 | 627 | (d) | — | 3,975 | ||||||||
Amortization of intangibles | 3,686 | 101 | (d) | — | 3,585 | ||||||||
Asset impairment and related charges | 9,681 | — | — | 9,681 | |||||||||
Restructuring, severance and other charges | 15,853 | 606 | (d) | — | 15,247 | ||||||||
Operating (loss) income | (41,190 | ) | 6,320 | (d) | (1,115 | ) | (46,395 | ) | |||||
Other (income) expenses : | |||||||||||||
Interest income | (103 | ) | — | — | (103 | ) | |||||||
Interest expense | 978 | — | 34 | (g) | 944 | ||||||||
Other expenses, net | 181 | — | 9 | (g) | 172 | ||||||||
(Loss) income before income taxes | (42,246 | ) | 6,320 | (d) | (1,158 | ) | (47,408 | ) | |||||
Income tax (benefit) expense | (8,007 | ) | — | 1,892 | (h) | (9,899 | ) | ||||||
(Loss) income from continuing operations | (34,239 | ) | 6,320 | (d) | (3,050 | ) | (37,509 | ) | |||||
Income from discontinued operations, net of taxes | 11,456 | — | — | 11,456 | |||||||||
Net (loss) income | (22,783 | ) | 6,320 | (d) | (3,050 | ) | (26,053 | ) | |||||
Basic and diluted weighted average shares outstanding | 22,432 | 22,432 | |||||||||||
Net (loss) income per share – basic and diluted: | |||||||||||||
Loss from continuing operations | $ | (1.53 | ) | $ | (1.67 | ) | |||||||
Income from discontinued operations | 0.51 | 0.51 | |||||||||||
Net loss per share | (1.02 | ) | (1.16 | ) |
Sale of | |||||||||||||
RSG | Pro Forma | ||||||||||||
(In thousands, except per share data) | As Reported | Business | Adjustments | Pro Forma | |||||||||
Net revenue: | |||||||||||||
Products | 104,769 | 69,463 | (d) | — | 35,306 | ||||||||
Support, maintenance and subscription services | 70,729 | 26,146 | (d) | 470 | (e) | 45,053 | |||||||
Professional services | 27,183 | 13,539 | (d) | 97 | (e) | 13,741 | |||||||
Total net revenue | 202,681 | 109,148 | (d) | 567 | 94,100 | ||||||||
Cost of goods sold: | |||||||||||||
Products | 80,090 | 59,500 | (d) | — | 20,590 | ||||||||
Support, maintenance and subscription services | 25,507 | 16,911 | (d) | 470 | (e) | 9,066 | |||||||
Professional services | 21,445 | 11,383 | (d) | 97 | (e) | 10,159 | |||||||
Total cost of goods sold | 127,042 | 87,794 | (d) | 567 | 39,815 | ||||||||
Gross profit | 75,639 | 21,354 | (d) | — | 54,285 | ||||||||
Operating expenses: | |||||||||||||
Product development | 27,531 | 4,997 | (d) | — | 22,534 | ||||||||
Sales and marketing | 22,212 | 7,654 | (d) | — | 14,558 | ||||||||
General and administrative | 37,121 | 4,709 | (d) | 2,537 | (f) | 29,875 | |||||||
Depreciation of fixed assets | 3,914 | 361 | (d) | — | 3,553 | ||||||||
Amortization of intangibles | 5,122 | 85 | (d) | — | 5,037 | ||||||||
Asset impairment and related charges | 959 | — | — | 959 | |||||||||
Restructuring, severance and other charges | 405 | — | — | 405 | |||||||||
Operating (loss) income | (21,625 | ) | 3,548 | (d) | (2,537 | ) | (22,636 | ) | |||||
Other (income) expenses : | |||||||||||||
Interest income | (73 | ) | — | — | (73 | ) | |||||||
Interest expense | 1,297 | — | 16 | (g) | 1,281 | ||||||||
Other (income) expenses, net | (2,294 | ) | — | 33 | (g) | (2,327 | ) | ||||||
(Loss) income before income taxes | (20,555 | ) | 3,548 | (d) | (2,586 | ) | (21,517 | ) | |||||
Income tax expense | 2,420 | — | — | 2,420 | |||||||||
(Loss) income from continuing operations | (22,975 | ) | 3,548 | (d) | (2,586 | ) | (23,937 | ) | |||||
Loss from discontinued operations, net of taxes | (32,500 | ) | — | — | (32,500 | ) | |||||||
Net (loss) income | (55,475 | ) | 3,548 | (d) | (2,586 | ) | (56,437 | ) | |||||
Basic and diluted weighted average shares outstanding | 22,785 | 22,785 | |||||||||||
Net loss per share – basic and diluted: | |||||||||||||
Loss from continuing operations | $ | (1.01 | ) | $ | (1.05 | ) | |||||||
Loss from discontinued operations | (1.43 | ) | (1.43 | ) | |||||||||
Net loss per share | (2.44 | ) | (2.48 | ) |
(a) | Represents the unaudited amounts of RSG assets and liabilities which will be sold to Buyer as if the RSG sale had occurred on March 31, 2013. |
(b) | Reflects estimated proceeds to be received at the closing of the RSG sale. The sale price of $34.52 million was reduced by approximately $1.95 million of expenses for the transaction-related costs. The unaudited condensed consolidated pro forma statements of operations do not reflect the recognition of these expenses as they are non-recurring in nature; however, these expenses will be reflected in Agilysys' historical financial statements when the RSG sale is consummated. Additionally, there is potential for a working capital adjustment. Pursuant to the asset purchase agreement, any difference in net working capital balance at the time of closing will be adjusted accordingly. |
(c) | Reflects the excess of the estimated proceeds identified under (b) over the following: |
The net book value of RSG net assets sold of $8.6 million at March 31, 2013, less pro forma adjustment for tax liabilities. | |
Agilysys is in a net operating loss carry forward position which is offset by a full valuation allowance. Tax expense will be offset with a valuation allowance and no payable will be recognized. |
(d) | The elimination of operating results of RSG in the unaudited statements of operations for RSG for fiscal years ended March 31, 2013, 2012 and 2011. |
(e) | Reflects gross up of intersegment revenue and cost of goods sold that are eliminated on a consolidated basis. |
(f) | Reflects costs associated with certain financial and information technology services to be provided on a transitional basis for up to seven months commencing immediately following the closing for the benefit of the Buyer and in accordance with the terms and subject to the conditions of the Transition Services Agreement (“TSA”). As these costs will be reimbursed by the Buyer during the transition period and not remain with Agilysys once this TSA has completed, this adjustment removes the costs associated with these services from the historical financial statements. |
(g) | Reflects interest and other expense associated with contracts which are transferring to the Buyer in accordance with the terms of the asset purchase agreement and will not remain with Agilysys. This adjustment removes the costs from the historical financial statements. |
(h) | Reflects the pro forma allocation of income tax expense to RSG calculated at the statutory federal rate of 35% and adjusted for permanent tax differences for fiscal years ended March 31, 2013, 2012 and 2011. The intraperiod tax allocation rules were applied to each pro forma year in calculating the allocation of income tax expense. Fiscal year ended March 31, 2011 did not require any pro forma allocation of income tax expense upon application of the intraperiod tax allocation rules. |
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