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 5, 2015, announcing its results for the first quarter and period ended June 30, 2015. |
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 5, 2015, announcing its results for the first quarter and period ended June 30, 2015. |
• | Total net revenue was $27.5 million, compared to total net revenue of $23.7 million in the comparable prior-year period. |
• | Recurring revenues (which are comprised of support, maintenance and subscription services) were $14.9 million, or 54% of total net revenue, compared to $13.8 million, or 58% of total net revenue, for the same period in fiscal 2015. SaaS revenues for the first quarter increased 23% year over year and comprised 15.5% of total recurring revenues, compared to 13.6% of total recurring revenues in the first quarter of fiscal 2015. |
• | Gross margin was 59.7% in the fiscal 2016 first quarter, compared to 61.8% in the prior-year period. |
• | Adjusted EBITDA (non-GAAP) was $1.2 million, compared to Adjusted EBITDA of $0.5 million in the same period last year (see reconciliation below). |
• | Net loss in the fiscal 2016 first quarter was $(0.2) million, or $(0.01) per diluted share, compared to a net loss $(2.2) million, or $(0.10) per diluted share, in the prior-year period. |
(In thousands, except per share data) | Three Months Ended June 30, | |||||||
2015 | 2014 | |||||||
Net revenue: | ||||||||
Products | $ | 8,811 | $ | 6,052 | ||||
Support, maintenance and subscription services | 14,899 | 13,819 | ||||||
Professional services | 3,781 | 3,875 | ||||||
Total net revenue | 27,491 | 23,746 | ||||||
Cost of goods sold: | ||||||||
Products | 4,922 | 3,499 | ||||||
Support, maintenance and subscription services | 3,495 | 3,130 | ||||||
Professional services | 2,675 | 2,443 | ||||||
Total cost of goods sold | 11,092 | 9,072 | ||||||
Gross profit | 16,399 | 14,674 | ||||||
Gross profit margin | 59.7 | % | 61.8 | % | ||||
Operating expenses: | ||||||||
Product development | 6,268 | 5,865 | ||||||
Sales and marketing | 4,461 | 3,885 | ||||||
General and administrative | 5,177 | 5,117 | ||||||
Depreciation of fixed assets | 518 | 614 | ||||||
Amortization of intangibles | 298 | 1,783 | ||||||
Restructuring, severance and other charges | (46 | ) | 370 | |||||
Legal settlements | — | 149 | ||||||
Operating loss | (277 | ) | (3,109 | ) | ||||
Other (income) expense: | ||||||||
Interest income | (44 | ) | (53 | ) | ||||
Interest expense | 8 | 13 | ||||||
Other income, net | (32 | ) | (45 | ) | ||||
Loss before income taxes | (209 | ) | (3,024 | ) | ||||
Income tax benefit | (24 | ) | (795 | ) | ||||
Net loss | $ | (185 | ) | $ | (2,229 | ) | ||
Weighted average shares outstanding - basic | 22,220 | 22,324 | ||||||
Net loss per share – basic: | ||||||||
Net loss per share | $ | (0.01 | ) | $ | (0.1 | ) | ||
Weighted average shares outstanding - diluted | 22,220 | 22,324 | ||||||
Net loss per share – diluted: | ||||||||
Net loss per share | $ | (0.01 | ) | $ | (0.10 | ) |
(In thousands, except share data) | June 30, 2015 | March 31, 2015 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 66,034 | $ | 75,067 | |||
Accounts receivable, net of allowance for doubtful accounts of $934 and $888, respectively | 19,242 | 25,481 | |||||
Inventories | 523 | 641 | |||||
Prepaid expenses | 3,661 | 3,820 | |||||
Other current assets | 8 | 8 | |||||
Total current assets | 89,468 | 105,017 | |||||
Property and equipment, net | 12,267 | 11,929 | |||||
Goodwill | 19,622 | 19,622 | |||||
Intangible assets, net | 8,964 | 9,006 | |||||
Software development costs, net | 36,138 | 31,818 | |||||
Other non-current assets | 4,181 | 4,133 | |||||
Total assets | $ | 170,640 | $ | 181,525 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Deferred revenue | |||||||
Accounts payable | $ | 9,053 | $ | 16,586 | |||
Deferred revenue | 22,501 | 23,881 | |||||
Accrued liabilities | 7,843 | 10,001 | |||||
Capital lease obligations, current | 141 | 142 | |||||
Total current liabilities | 39,538 | 50,610 | |||||
Deferred income taxes, non-current | 3,093 | 3,053 | |||||
Capital lease obligations, non-current | 39 | 47 | |||||
Other non-current liabilities | 3,577 | 3,627 | |||||
Shareholders' equity: | |||||||
Common shares, without par value, at $0.30 stated value; 80,000,000 shares authorized; 31,606,831 shares issued; and 22,924,212 and 22,789,355 shares outstanding at June 30, 2015 and March 31, 2015, respectively | 9,482 | 9,482 | |||||
Treasury shares, 8,682,619 and 8,817,477 at June 30, 2015 and March 31, 2015, respectively | (2,605 | ) | (2,646 | ) | |||
Capital in excess of stated value | (10,316 | ) | (10,675 | ) | |||
Retained earnings | 127,993 | 128,178 | |||||
Accumulated other comprehensive loss | (161 | ) | (151 | ) | |||
Total shareholders' equity | 124,393 | 124,188 | |||||
Total liabilities and shareholders' equity | $ | 170,640 | $ | 181,525 | |||
Three Months Ended | |||||||
(In thousands) | June 30, | ||||||
2015 | 2014 | ||||||
Operating activities | |||||||
Net loss | $ | (185 | ) | $ | (2,229 | ) | |
Adjustments to reconcile loss from operations to net cash used in operating activities | |||||||
Restructuring, severance and other charges | (46 | ) | 370 | ||||
Payments for restructuring, severance and other charges | (262 | ) | (717 | ) | |||
Legal settlements | — | 149 | |||||
Payments for legal settlements | — | (1,645 | ) | ||||
Depreciation | 518 | 614 | |||||
Amortization | 553 | 2,072 | |||||
Deferred income taxes | 40 | — | |||||
Share-based compensation | 404 | 365 | |||||
Changes in operating assets and liabilities: | — | — | |||||
Accounts receivable | 6,245 | 1,316 | |||||
Inventories | 121 | (423 | ) | ||||
Prepaid expense | 160 | 392 | |||||
Accounts payable | (6,543 | ) | (1,956 | ) | |||
Deferred revenue | (1,395 | ) | (805 | ) | |||
Accrued liabilities | (1,397 | ) | (4,616 | ) | |||
Income taxes payable | 7 | (929 | ) | ||||
Other changes, net | (85 | ) | (145 | ) | |||
Net cash used in operating activities | (1,865 | ) | (8,187 | ) | |||
Investing activities | |||||||
Proceeds from sale of business units | — | 282 | |||||
Investments in marketable securities | — | (10,240 | ) | ||||
Capital expenditures | (1,212 | ) | (1,231 | ) | |||
Capitalized software development costs | (5,572 | ) | (3,953 | ) | |||
Additional (investments in) proceeds from corporate-owned life insurance policies | (21 | ) | 1,985 | ||||
Net cash used in investing activities | (6,805 | ) | (13,157 | ) | |||
Financing activities | |||||||
Repurchase of common shares to satisfy employee tax withholding | (412 | ) | (373 | ) | |||
Principal payments under long-term obligations | (10 | ) | (13 | ) | |||
Net cash used in financing activities | (422 | ) | (386 | ) | |||
Effect of exchange rate changes on cash | 59 | 26 | |||||
Net decrease in cash and cash equivalents | (9,033 | ) | (21,704 | ) | |||
Cash and cash equivalents at beginning of period | 75,067 | 99,566 | |||||
Cash and cash equivalents at end of period | $ | 66,034 | $ | 77,862 |
Three Months Ended | |||||||
(In thousands) | June 30, | ||||||
2015 | 2014 | ||||||
Operating activities: | |||||||
Net cash used in operating activities | $ | (1,865 | ) | $ | (8,187 | ) | |
Non-recurring cash items: | |||||||
Payments for restructuring, severance and other charges | 262 | 717 | |||||
Payments for legal settlements | — | 1,645 | |||||
Adjusted cash used in operating activities (a) | $ | (1,603 | ) | $ | (5,825 | ) | |
(a) Non-GAAP financial measure |
(In thousands) | Three Months Ended | |||||||
June 30, | ||||||||
2015 | 2014 | |||||||
Net loss | $ | (185 | ) | $ | (2,229 | ) | ||
Income tax benefit | (24 | ) | (795 | ) | ||||
Loss before income taxes | (209 | ) | (3,024 | ) | ||||
Depreciation of fixed assets | 518 | 614 | ||||||
Amortization of intangibles | 298 | 1,783 | ||||||
Amortization of developed technology | 256 | 289 | ||||||
Interest (income) expense | (36 | ) | (40 | ) | ||||
EBITDA (b) | 827 | (378 | ) | |||||
Share-based compensation | 404 | 365 | ||||||
Restructuring, severance and other charges | (46 | ) | 370 | |||||
Other non-operating (income) expense | (32 | ) | (45 | ) | ||||
Legal settlements | — | 149 | ||||||
Adjusted EBITDA (a) | $ | 1,153 | $ | 461 | ||||
(a) Adjusted EBITDA, a non-GAAP financial measure, is defined as income before income taxes, interest expense (net of interest income), depreciation and amortization (including amortization of developed technology), and excluding charges relating to i) legal settlements, ii) restructuring, severance, and other charges, iii) asset write-offs and other fair value adjustments, iv) share-based compensation, and v) other non-operating (income) expense | ||||||||
(b) EBITDA is defined as net income before income taxes, interest expense, depreciation and amortization | ||||||||
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