Agilysys, Inc. EBITDA jumped on 504% and Revenue showed almost no change
05/24/2018 • About Agilysys, Inc. (
$AGYS) • By InTwits
Agilysys, Inc. reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Agilysys, Inc. has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.5%. At the same time it's in pair with industry average of 13.2%
- CAPEX is quite volatile: $26m in FY2018, $16m in FY2017, $7m in FY2016, $10m in FY2015, $5m in FY2014
- The company has unprofitable business model: ROIC is -10.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue showed almost no change in FY2018. Annual revenue decline showed slowdown in FY18Q4 - revenue increased on 4.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 0.32% to 1.9% in FY2018. During FY2014-FY2018 EBITDA Margin bottomed in FY2015 at -5.3% and was growing since that time.
Gross Margin increased slightly on 0.62 pp from 50.0% to 50.6% in FY2018. Gross Margin stuck to a declining trend at -3.3 pp per annum in the last 5 years. SG&A as a % of Revenue increased slightly on 1.2 pp from 31.9% to 33.1% in FY2018.
Net Income margin increased on 2.6 pp from -9.2% to -6.6% in FY2018.
Investments (CAPEX, working capital and M&A)
Agilysys, Inc.'s CAPEX/Revenue was 11.8% in FY2018. Agilysys, Inc.'s CAPEX/Revenue decreased on 7.9 pp from 19.8% in FY2015 to 11.8% in FY2018. For the last three years the average CAPEX/Revenue was 13.9%. The company has spent a lot to CAPEX (616% of EBITDA) which didn't stop revenue from falling. During the last 5 years CAPEX as a % of Revenue topped in FY2015 at 19.8% and was declining since that time.
Return on investment
The company operates at negative ROIC (-10.8%) and ROE (-7.5%). ROIC decreased slightly on 1.2 pp from -9.6% to -10.8% in FY2018. ROE increased on 2.4 pp from -9.9% to -7.5% in FY2018.
Leverage (Debt)
Debt level is -16.3x Net Debt / EBITDA and 0.1x Debt / EBITDA. Debt dropped on 25.3% while cash dropped on 18.9%.
Agilysys, Inc. has no short term refinancing risk: cash is higher than short term debt (33,285.8%).
Management team
Ramesh Srinivasan is a Agilysys, Inc.'s CEO. Ramesh Srinivasan is a founder and has spent 2 years with the company. Anthony S Pritchett "Tony" is a Agilysys, Inc.'s CFO. Anthony S Pritchett "Tony" has spent 2 years at the company.
Financial and operational results
FY ended 03/31/2018
Agilysys, Inc. ($AGYS) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 101.3 | 103.5 | 120.4 | 127.7 | 127.4 | -0.2% |
| Gross Profit | 64.0 | 60.1 | 68.1 | 63.8 | 64.4 | 1.0% |
| SG&A | 34.8 | 38.0 | 41.6 | 40.7 | 42.1 | 3.5% |
| EBITDA | 2.6 | -5.5 | 0.2 | 0.4 | 2.4 | 504.0% |
| Net Income | 17.1 | -11.5 | -3.8 | -11.7 | -8.4 | |
Balance Sheet
|
|---|
| Cash | 99.6 | 75.1 | 60.6 | 49.3 | 39.9 | -18.9% |
| Short Term Debt | 0.0 | 0.1 | 0.1 | 0.1 | 0.1 | -0.8% |
| Long Term Debt | 0.3 | 0.0 | 0.2 | 0.1 | 0.1 | -50.9% |
Cash flow
|
|---|
| Capex | 16.2 | 20.5 | 20.9 | 16.0 | 15.1 | -6.2% |
Ratios
|
|---|
| Revenue growth | 7.7% | 2.2% | 16.3% | 6.1% | -0.2% | |
| EBITDA growth | -184.8% | -310.1% | -102.8% | 168.2% | 504.0% | |
|
|---|
| Gross Margin | 63.2% | 58.0% | 56.6% | 50.0% | 50.6% | 0.6% |
| EBITDA Margin | 2.6% | -5.3% | 0.1% | 0.3% | 1.9% | 1.6% |
| SG&A, % of revenue | 34.4% | 36.7% | 34.5% | 31.9% | 33.1% | 1.2% |
| Net Income Margin | 16.9% | -11.1% | -3.1% | -9.2% | -6.6% | 2.6% |
| CAPEX, % of revenue | 16.0% | 19.8% | 17.4% | 12.6% | 11.8% | -0.7% |
|
|---|
| ROIC | -5.0% | -9.6% | -3.5% | -9.6% | -10.8% | -1.2% |
| ROE | 13.9% | -8.9% | -3.0% | -9.9% | -7.5% | 2.4% |
| Net Debt/EBITDA | -38.0x | | -399.2x | -121.0x | -16.3x | 104.8x |
Agilysys, Inc. ($AGYS) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 34 | 30 | 31 | 32 | | 9.4% | -7.8% | -6.4% | 4.8% |
| EBITDA | 0 | 0 | 0 | 2 | | 6,300.0% | -47.1% | -95.0% | |
| Net Income | -3 | -3 | -2 | -0 | | | | | |
Balance Sheet
|
|---|
| Cash | 43 | 39 | 38 | 40 | | -21.5% | -25.4% | -28.6% | -18.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | | -4.9% | -3.3% | -5.0% | -0.8% |
| Long Term Debt | 0 | 0 | 0 | 0 | | -53.6% | -53.3% | -63.2% | -50.9% |
Ratios
|
|---|
| Gross Margin | 49.2% | 51.0% | 49.9% | 52.2% | | -3.1% | 2.4% | 1.4% | 1.7% |
| EBITDA Margin | 1.1% | 1.3% | 0.3% | 5.0% | | 1.1% | -1.0% | -4.6% | 11.4% |
| Net Income Margin | -8.7% | -10.8% | -6.2% | -0.7% | | -1.3% | -3.4% | -1.0% | 16.6% |
Peers in Application Software
Below we provide Agilysys, Inc. benchmarking against other companies in Application Software industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| nFusz Inc ($FUSZ) | | | | | 433.3% |
| CloudCommerce Inc ($CLWD) | | -38.1% | 247.6% | 40.9% | 301.1% |
| Seven Stars Cloud Group, Inc. ($SSC) | | 134.7% | 663.8% | 310.3% | 161.7% |
| Aurora Mobile Limited ($JG) | | | | 304.9% | 150.8% |
| Intelligent Systems Corporation ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (150 companies) | 27.9% | 14.0% | 13.6% | 15.7% | 15.2% |
|---|
| Agilysys, Inc. ($AGYS) | | 2.2% | 16.3% | 6.1% | -0.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 99.7% | 97.4% | 98.0% | 97.6% | 96.5% |
| hopTo Inc ($HPTO) | 91.8% | 87.8% | 95.9% | 98.2% | 95.4% |
| Aware, Inc. ($AWRE) | 75.4% | 87.2% | 90.3% | 94.6% | 92.3% |
| Alteryx, Inc. ($AYX) | 77.5% | 80.5% | 81.3% | 83.4% | 91.0% |
| Aspen Technology, Inc. ($AZPN) | 86.5% | 88.7% | 89.7% | 90.2% | 89.9% |
| |
|---|
| Median (149 companies) | 63.0% | 61.9% | 64.2% | 64.6% | 66.0% |
|---|
| Agilysys, Inc. ($AGYS) | 63.2% | 58.0% | 56.6% | 50.0% | 50.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Aspen Technology, Inc. ($AZPN) | 34.5% | 42.2% | 46.0% | 45.2% | 43.3% |
| ANSYS, Inc. ($ANSS) | 45.9% | 45.8% | 45.1% | 41.9% | 41.4% |
| Paycom Software, Inc. ($PAYC) | 15.1% | 19.5% | 35.1% | 34.4% | 35.9% |
| j2 Global, Inc. ($JCOM) | 41.6% | 40.6% | 41.7% | 36.5% | 35.7% |
| Adobe Inc. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (151 companies) | -10.3% | -10.7% | -5.3% | -4.2% | -3.3% |
|---|
| Agilysys, Inc. ($AGYS) | 2.6% | -5.3% | 0.1% | 0.3% | 1.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TimefireVR Inc ($TFVR) | 0.0% | 350.5% | 4.3% | | 1,021.9% |
| MGT Capital Investments Inc ($MGTI) | 0.0% | 36.5% | 221.4% | 129.8% | 344.5% |
| Integrated Ventures Inc ($INTV) | | | | | 199.9% |
| ShotSpotter, Inc. ($SSTI) | | 18.3% | 28.9% | 27.1% | 24.3% |
| Ellie Mae, Inc. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (152 companies) | 2.8% | 2.7% | 2.9% | 2.3% | 2.4% |
|---|
| Agilysys, Inc. ($AGYS) | 16.0% | 19.8% | 17.4% | 12.6% | 11.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| InsPro Technologies Corp ($ITCC) | -558.9% | | | | 127.4% |
| Manhattan Associates, Inc. ($MANH) | 64.8% | 78.7% | 99.3% | 102.5% | 80.9% |
| Intuit Inc. ($INTU) | 34.2% | 23.7% | 52.1% | 72.6% | 66.8% |
| Aspen Technology, Inc. ($AZPN) | 133.4% | | | | 58.1% |
| Paycom Software, Inc. ($PAYC) | 16.7% | 30.5% | 75.4% | 51.1% | 47.5% |
| |
|---|
| Median (178 companies) | -14.4% | -13.1% | -9.8% | -11.8% | -9.1% |
|---|
| Agilysys, Inc. ($AGYS) | -5.0% | -9.6% | -3.5% | -9.6% | -10.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Upland Software, Inc. ($UPLD) | | | 16.4x | 115.6x | 16.7x |
| Nuance Communications, Inc. ($NUAN) | 7.9x | 5.7x | 5.3x | 7.1x | 15.2x |
| Asure Software Inc ($ASUR) | 3.4x | 4.5x | 3.6x | 9.5x | 14.5x |
| SS&C Technologies Holdings, Inc. ($SSNC) | 1.7x | 7.3x | 4.6x | 3.1x | 8.5x |
| Avaya Holdings Corp. ($AVYA) | | | | | 7.4x |
| |
|---|
| Median (69 companies) | -1.2x | -1.0x | -0.9x | -0.8x | -0.6x |
|---|
| Agilysys, Inc. ($AGYS) | -38.0x | | -399.2x | -121.0x | -16.3x |
