Agilysys(US:AGYS)2022-07-28 16:00Financial Performance - Total net revenue for the three months ended June 30, 2022, was $47,506,000, an increase of 22.7% compared to $38,725,000 for the same period in 2021[8] - Gross profit for the same period was $28,495,000, resulting in a gross profit margin of 60.0%, down from 64.2% in the prior year[8] - Net income for the three months ended June 30, 2022, was $3,039,000, compared to $1,972,000 for the same period in 2021, representing a 54% increase[11] - Operating income for the three months ended June 30, 2022, was $3,033,000, compared to $2,041,000 for the same period in 2021[8] - Total comprehensive income for the quarter was $2,641,000, compared to $1,970,000 in the prior year[11] - Basic income per share for the three months ended June 30, 2022, was $0.10, compared to $0.06 for the same period in 2021, marking a 66.7% increase[53] Cash and Assets - Cash and cash equivalents at the end of the period were $94,897,000, down from $96,971,000 at the beginning of the period[12] - Total current assets decreased to $132,140,000 as of June 30, 2022, from $136,173,000 as of March 31, 2022[7] - Total assets as of June 30, 2022, were $208,759,000, down from $214,162,000 at the end of the previous quarter[8] - The balance sheet as of June 30, 2022, showed total assets of $101.3 million, an increase from $84.5 million as of June 30, 2021[15] Liabilities and Equity - Total liabilities decreased to $107,483,000 as of June 30, 2022, from $116,818,000 as of March 31, 2022[7] - Total current liabilities decreased to $62,777,000 from $71,466,000, indicating improved liquidity[8] - The company’s total shareholders' equity increased to $101,276,000 as of June 30, 2022, compared to $97,344,000 as of March 31, 2022[7] - Total accrued liabilities decreased from $10.552 million as of March 31, 2022, to $7.870 million as of June 30, 2022, a reduction of approximately 25.5%[43] Revenue Streams - Subscription and maintenance revenue for the three months ended June 30, 2022, totaled $36.5 million, up from $29.9 million in the same period of 2021, indicating a growth of 22%[36] - Revenue recognized from contract liabilities was $20.9 million for the three months ended June 30, 2022, compared to $17.4 million for the same period in 2021, reflecting a 20.1% increase[38] - Revenue recognized at a point in time totaled $11.0 million for the three months ended June 30, 2022, compared to $8.8 million for the same period in 2021[36] - Revenue attributable to ResortSuite for the three months ended June 30, 2022, was $1.3 million[76] Operational Changes - The impact of COVID-19 has led to significant economic challenges, affecting customer operations and necessitating remote working arrangements[19] - The impact of COVID-19 has led to significant changes in operational strategies, including remote working arrangements and virtual events[19] Acquisitions - The acquisition of ResortSuite Inc. on January 5, 2022, involved a total purchase price of $24.8 million, with $22.6 million paid in cash at closing[70][71] - The acquisition resulted in the recognition of $13.1 million of goodwill, expected to be deductible for income tax purposes[74] - The company incurred acquisition costs of $0.1 million related to the acquisition of ResortSuite, primarily for professional fees[76] - The purchase price allocation for ResortSuite included identifiable intangible assets valued at $12.2 million[73] Shareholder Information - The company reported a total of 31,607 shares issued as of June 30, 2022[15] - The weighted average grant-date fair value of restricted shares outstanding at June 30, 2022, was $43.25[65] - The number of outstanding rights at June 30, 2022, was 2,039,408, with a weighted average exercise price of $24.51[63] - The Holders of the preferred stock are entitled to dividends at a rate of 5.25% per annum, payable semi-annually[69] Tax and Expenses - The effective tax rate for the three months ended June 30, 2022, was 11.6%, compared to 8.9% for the same period in 2021[47] - Total operating expenses for the quarter were $25,462,000, an increase from $22,826,000 in the same quarter of the previous year[8] - Share-based compensation expense totaled $2.5 million for the three months ended June 30, 2022, down from $3.6 million in the prior year, a decrease of approximately 31.2%[59] Future Commitments - The company has an additional operating lease of approximately $11.7 million set to commence in fiscal year 2023[51] - Cash payments for operating leases increased from $969,000 in 2021 to $1.468 million in 2022, reflecting a 51.5% increase[45]