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 2.02 | Results of Operations and Financial Condition; and | |
Item 7.01 | Regulation FD Disclosure |
Item 9.01 | Financial Statements and Exhibits |
Exhibit Number | Description | |
99.1 | Press release issued by Agilysys, Inc. dated August 7, 2014, announcing its results for the first quarter ended June 30, 2014. |
AGILYSYS, INC. | ||
By: | /s/Janine K. Seebeck | |
Janine K. Seebeck | ||
Senior Vice President, Chief Financial Officer, | ||
and Treasurer |
Exhibit Number | Description | |
99.1 | Press release issued by Agilysys, Inc. dated August 7, 2014, announcing its results for the first quarter ended June 30, 2014. |
• | Total net revenue of $23.7 million is comparable to total net revenue in the prior-year period. |
• | Recurring revenues (which are comprised of support, maintenance and subscription services) were a first quarter record $13.8 million, an increase of 7.3% over the same period in fiscal 2014. |
• | Gross margin was 62% in the fiscal 2015 first quarter, compared to 66% in the prior-year period. |
• | Adjusted operating loss (non-GAAP) from continuing operations (excluding stock-based compensation, amortization of intangibles and other one-time items) was $(0.4) million, compared to adjusted operating income from continuing operations of $1.7 million in the year-ago period (see reconciliation below). |
• | Adjusted loss (non-GAAP) from continuing operations was $(0.4) million, or $(0.02) per diluted share, compared to adjusted income of $1.6 million, or $0.07 per diluted share, last year (see reconciliation below). |
• | Net loss in the period was $(2.2) million, or $(0.10) per diluted share, compared to net income of $1.3 million, or $0.06, in the prior-year period, which included net income from discontinued operations of $0.5 million, or $0.02 per diluted share. |
(In thousands, except per share data) | Three Months Ended | |||||
June 30, | ||||||
2014 | 2013 | |||||
Net revenue: | ||||||
Products | $ 6,052 | $ 7,506 | ||||
Support, maintenance and subscription services | 13,819 | 12,874 | ||||
Professional services | 3,875 | 3,320 | ||||
Total net revenue | 23,746 | 23,700 | ||||
Cost of goods sold: | ||||||
Products | 3,499 | 3,623 | ||||
Support, maintenance and subscription services | 3,130 | 2,269 | ||||
Professional services | 2,443 | 2,171 | ||||
Total cost of goods sold | 9,072 | 8,063 | ||||
Gross profit | 14,674 | 15,637 | ||||
Operating expenses: | ||||||
Product development | 5,865 | 6,232 | ||||
Sales and marketing | 3,885 | 2,967 | ||||
General and administrative | 5,117 | 4,629 | ||||
Depreciation of fixed assets | 614 | 481 | ||||
Amortization of intangibles | 1,783 | 794 | ||||
Restructuring, severance and other charges | 370 | 55 | ||||
Legal settlements | 149 | — | ||||
Operating (loss) income | (3,109) | 479 | ||||
Other (income) expenses : | ||||||
Interest income | (53) | (13) | ||||
Interest expense | 13 | 61 | ||||
Other income, net | (45) | (28) | ||||
(Loss) income before income taxes | (3,024) | 459 | ||||
Income tax benefit | (795) | (330) | ||||
(Loss) income from continuing operations | (2,229) | 789 | ||||
Income from discontinued operations, net of taxes | — | 527 | ||||
Net (loss) income | $ (2,229) | $ 1,316 | ||||
Basic weighted average shares outstanding | 22,324 | 22,022 | ||||
Net (loss) income per share – basic: | ||||||
(Loss) income per share from continuing operations | $ (0.10) | $ 0.04 | ||||
Income per share from discontinued operations | — | 0.02 | ||||
Net (loss) income per share | $ (0.10) | $ 0.06 | ||||
Diluted weighted average shares outstanding | 22,324 | 22,292 | ||||
Net (loss) income per share – diluted: | ||||||
(Loss) income per share from continuing operations | $ (0.10) | $ 0.04 | ||||
Income per share from discontinued operations | — | 0.02 | ||||
Net (loss) income per share | $ (0.10) | $ 0.06 | ||||
(In thousands, except share data) | June 30, | March 31, | ||||
2014 | 2014 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 77,862 | $ 99,566 | ||||
Marketable securities | 10,136 | — | ||||
Accounts receivable, net of allowance of $1,399 and $1,101, respectively | 22,302 | 23,615 | ||||
Inventories | 905 | 481 | ||||
Prepaid expenses | 2,934 | 3,300 | ||||
Other current assets | 717 | 2,892 | ||||
Total current assets | 114,856 | 129,854 | ||||
Property and equipment, net | 11,818 | 12,251 | ||||
Goodwill | 17,158 | 17,158 | ||||
Intangible assets, net | 10,306 | 10,626 | ||||
Capitalized software development, net | 20,787 | 17,221 | ||||
Other non-current assets | 3,765 | 3,785 | ||||
Total assets | $ 178,690 | $ 190,895 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ 9,636 | $ 11,073 | ||||
Deferred revenue | 21,995 | 22,795 | ||||
Accrued and other current liabilities | 7,227 | 14,232 | ||||
Capital lease obligations – current | 141 | 43 | ||||
Total current liabilities | 38,999 | 48,143 | ||||
Deferred income taxes – non-current | 3,406 | 3,422 | ||||
Capital lease obligations – non-current | 180 | 292 | ||||
Other non-current liabilities | 5,116 | 6,165 | ||||
Shareholders’ equity: | ||||||
Common shares, without par value, at $0.30 stated value; authorized 80,000,000 shares; 31,606,831 issued; and 22,617,213 and 22,467,970 shares outstanding at June 30, 2014 and March 31, 2014, respectively | 9,482 | 9,482 | ||||
Treasury shares (8,989,618 and 9,138,861 shares at June 30, 2014 and March 31, 2014, respectively) | (2,697) | (2,741) | ||||
Capital in excess of stated value | (13,102) | (13,409) | ||||
Retained earnings | 137,446 | 139,675 | ||||
Accumulated other comprehensive loss | (140 | ) | (134) | |||
Total shareholders’ equity | 130,989 | 132,873 | ||||
Total liabilities and shareholders’ equity | $ 178,690 | $ 190,895 | ||||
Three Months Ended | ||||||
(In thousands) | June 30, | |||||
2014 | 2013 | |||||
Operating activities: | ||||||
Net (loss) income | $ (2,229) | $ 1,316 | ||||
Less: Income from discontinued operations | — | 527 | ||||
(Loss) income from continuing operations | (2,229) | 789 | ||||
Adjustments to reconcile net (loss) income from continuing operations to net cash used in operating activities: | ||||||
Restructuring, severance and other charges | 370 | 55 | ||||
Payments for restructuring, severance and other charges | (717) | (354) | ||||
Legal settlements | 149 | — | ||||
Payments for legal settlements | (1,645) | (87) | ||||
Depreciation | 614 | 481 | ||||
Amortization of intangibles | 2,072 | 734 | ||||
Share-based compensation | 365 | 365 | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | 1,316 | (631) | ||||
Inventories | (423) | 294 | ||||
Prepaids | 392 | 100 | ||||
Accounts payable | (1,956) | (1,410) | ||||
Deferred revenue | (805) | (2,119) | ||||
Accrued and other liabilities | (4,616) | (3,395) | ||||
Income taxes payable | (929) | (385) | ||||
Other changes, net | (145) | (29) | ||||
Net cash used in operating activities from continuing operations | (8,187) | (5,592) | ||||
Net cash used in operating activities from discontinued operations | — | (872) | ||||
Net cash used in operating activities | (8,187) | (6,464) | ||||
Investing activities: | ||||||
Capital expenditures | (1,231) | (1,377) | ||||
Capitalized software development costs | (3,953) | (1,857) | ||||
Proceeds from sale of business units | 282 | — | ||||
Proceeds from company owned life insurance policies, net | 1,985 | — | ||||
Cash paid for acquisitions, net | — | (1,750) | ||||
Investments in marketable securities | (10,240) | — | ||||
Net cash used in investing activities from continuing operations | (13,157) | (4,984) | ||||
Net cash used in investing activities from discontinued operations | — | (147) | ||||
Net cash used in investing activities | (13,157) | (5,131) | ||||
Financing activities: | ||||||
Repurchases of shares to satisfy employee tax withholding and option price | (373) | (571) | ||||
Principal payment under long-term obligations | (13) | (23) | ||||
Net cash used in financing activities from continuing operations | (386) | (594) | ||||
Net cash used in financing activities from discontinued operations | — | (80) | ||||
Net cash used in financing activities | (386) | (674) | ||||
Effect of exchange rate changes on cash | 26 | (51) | ||||
Cash flows used in continuing operations | (21,704) | (11,221) | ||||
Cash flows used in discontinued operations: | — | (1,099) | ||||
Net decrease in cash | (21,704) | (12,320) | ||||
Cash and cash equivalents at beginning of period | 99,566 | 82,931 | ||||
Cash and cash equivalents at end of period | $ 77,862 | $ 70,611 | ||||
Less cash presented in current assets of discontinued operations on balance sheet | — | 749 | ||||
Cash and cash equivalents at end of period - continuing operations | $ 77,862 | $ 69,862 | ||||
(In thousands, except per share data) | Three Months Ended | ||||
June 30, | |||||
2014 | 2013 | ||||
Operating (loss) income | $ (3,109) | $ 479 | |||
Share-based compensation expense | 365 | 365 | |||
Amortization of intangibles | 1,783 | 794 | |||
Restructuring, severance and other charges | 370 | 55 | |||
Legal settlements | 149 | — | |||
Adjusted operating (loss) income from continuing operations (a) | (442) | 1,693 | |||
Other (income) expenses, net | (85) | 20 | |||
Cash income tax expense (b) | 18 | 39 | |||
Adjusted (loss) income from continuing operations (a) | $ (375) | $ 1,634 | |||
Weighted average shares outstanding: | |||||
Basic | 22,324 | 22,022 | |||
Diluted | 22,324 | 22,292 | |||
Adjusted (loss) income per share from continuing operations (a): | |||||
Basic | $ (0.02) | $ 0.07 | |||
Diluted | $ (0.02) | $ 0.07 | |||
(a) Non-GAAP financial measure | |||||
(b) Taxes calculated based upon our estimated cash tax payments, exclusive of payments related to AMT, for the three months ended June 30, 2014 and 2013. |
Three Months Ended | ||||
(In thousands) | June 30, | |||
2014 | 2013 | |||
Operating activities: | ||||
Net cash used in continuing operations | $ (8,187) | $ (5,592) | ||
Non-recurring cash items: | ||||
Restructuring, severance and other payments | 717 | 354 | ||
Payments for legal settlements | 1,645 | 87 | ||
Adjusted cash used in continuing operations (a) | $ (5,825) | $ (5,151) | ||
(a) Non-GAAP financial measure |
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