Agilysys(AGYS) - 2025 Q2 - Quarterly Report

Financial Performance - Total net revenue for the six months ended September 30, 2024, was $131.791 million, an increase of 14.9% compared to $114.676 million for the same period in 2023[9] - Subscription and maintenance revenue increased to $79.474 million for the six months ended September 30, 2024, up 19.8% from $66.373 million in the prior year[9] - Gross profit margin improved to 63.0% for the six months ended September 30, 2024, compared to 59.4% for the same period in 2023[9] - Net income for the six months ended September 30, 2024, was $15.470 million, a significant increase from $6.093 million in the same period of 2023[9] - Operating income for the six months ended September 30, 2024, was $9.874 million, compared to $4.521 million in the same period of 2023[9] - The company reported a gross profit of $83.082 million for the six months ended September 30, 2024, up from $68.154 million in the prior year[9] - Total revenue for the six months ended September 30, 2024, was $111.4 million, compared to $89.3 million for the same period in 2023, reflecting a growth of approximately 24.8%[37] - Total net income for the six months ended September 30, 2024, was $15,470,000, compared to $6,093,000 for the same period in 2023, reflecting an increase of 154.5%[53] Cash and Assets - Cash and cash equivalents decreased to $54.888 million as of September 30, 2024, down from $144.891 million as of March 31, 2024[6] - Total assets increased to $442.010 million as of September 30, 2024, compared to $350.430 million as of March 31, 2024[6] - Total current liabilities increased to $95.889 million as of September 30, 2024, compared to $89.371 million as of March 31, 2024[6] - The company reported a net cash used in investing activities of $146,465,000 for the six months ended September 30, 2024, compared to $6,004,000 in the prior year[12] - The company’s retained earnings increased to $153,225,000 as of September 30, 2024, from $137,755,000 as of March 31, 2024[6] Share-Based Compensation - Share-based compensation for the six months ended September 30, 2024, was $8,438,000, compared to $5,851,000 in the same period of 2023, an increase of 44%[12] - Total share-based compensation expense for the three months ended September 30, 2024, was $4,009,000, an increase of 49.3% from $2,684,000 in the same period of 2023[62] - The company recorded a total of $11.6 million in unrecognized share-based compensation expense related to unvested restricted shares, expected to be recognized over a weighted-average vesting period of 2.0 years[65] Tax and Liabilities - The effective tax rate for the three months ended September 30, 2024, was 6.1%, compared to 9.6% for the same period in 2023, indicating a decrease of approximately 36.5%[46] - Total accrued liabilities as of September 30, 2024, were $22.315 million, compared to $19.522 million as of March 31, 2024, indicating an increase of approximately 14.5%[44] Business Operations - The company operates in a single reportable segment serving the global hospitality industry, providing cloud-native SaaS and on-premise solutions[17][18] - Agilysys has been a leader in hospitality software for over 45 years, focusing on enhancing the guest journey through various software solutions[17] Acquisition and Revenue Recognition - The acquisition of Book4Time was completed for a total cash consideration of $147.2 million, resulting in net cash consideration of $144.9 million after accounting for cash acquired[78] - Revenue attributable to Book4Time for the three months ended September 30, 2024, was $2.2 million, with net income (loss) not material[84] - The company recognized acquisition costs of $2.0 million related to the acquisition of Book4Time during the three months ended September 30, 2024[84] - Pro forma revenue for the three months ended September 30, 2024, was $70.8 million, compared to $62.5 million for the same period in 2023, reflecting a year-over-year increase of approximately 20.5%[86] Debt and Financing - The company entered into a revolving credit facility with an initial maximum principal amount of $75 million, drawing $50 million to fund a business combination[71] - The revolving credit facility matures on August 16, 2027, with no repayments required before that date[72] - The initial revolving loan bears interest at the SOFR Daily Floating Rate plus an initial margin of 1.625%[74]