AGILYSYS INC

For the period ended Dec 31, 2023. Filed Jan 25, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Dec 31, 2023 · Filed Jan 25, 2024

AGYS$124.15+0.2%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 1. CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)	December 31, 2023 (Unaudited)	March 31,2023
ASSETS
Current assets:
Cash and cash equivalents	$116,200	$112,842
Accounts receivable, net of allowance for expected credit losses of $763 and $610, respectively	49,366	22,378
Contract assets	1,971	2,242
Inventories	6,772	9,774
Prepaid expenses and other current assets	9,385	7,422
Total current assets	183,694	154,658
Property and equipment, net	18,074	14,576
Operating lease right-of-use assets	18,734	12,708
Goodwill	33,082	32,638
Intangible assets, net	17,223	18,140
Deferred income taxes, non-current	67,999	2,790
Other non-current assets	7,852	7,526
Total assets	$346,658	$243,036
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$9,012	$9,418
Contract liabilities	62,938	52,124
Accrued liabilities	15,310	13,708
Operating lease liabilities, current	3,947	3,263
Finance lease obligations, current	—	2
Total current liabilities	91,207	78,515
Deferred income taxes, non-current	1,035	2,257
Operating lease liabilities, non-current	20,200	13,477
Other non-current liabilities	3,943	4,018
Commitments and contingencies
Series A convertible preferred stock, no par value	—	35,459
Shareholders' equity:
Common shares, without par value, at $0.30 stated value; 80,000,000 shares authorized; 33,342,288 shares issued; and 27,349,322 and 25,326,626 shares outstanding at December 31, 2023 and March 31, 2023, respectively	10,003	9,482
Treasury shares, 5,992,966 and 6,280,205 at December 31, 2023 and March 31, 2023, respectively	(1,798)	(1,884)
Capital in excess of stated value	91,173	52,978
Retained earnings	134,794	52,764
Accumulated other comprehensive loss	(3,899)	(4,030)
Total shareholders' equity	230,273	109,310
Total liabilities and shareholders' equity	$346,658	$243,036

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three months endedDecember 31,		Nine months endedDecember 31,
(In thousands, except per share data)	2023	2022	2023	2022
Net revenue:
Products	$12,678	$10,697	$38,100	$32,291
Subscription and maintenance	35,107	30,154	101,481	86,917
Professional services	12,781	9,069	35,662	25,960
Total net revenue	60,566	49,920	175,243	145,168
Cost of goods sold:
Products	6,707	5,368	20,023	16,682
Subscription and maintenance	7,371	6,767	22,812	19,223
Professional services	8,664	7,009	26,428	20,627
Total cost of goods sold	22,742	19,144	69,263	56,532
Gross profit	37,824	30,776	105,980	88,636
Gross profit margin	62.5%	61.7%	60.5%	61.1%
Operating expenses:
Product development	14,551	12,416	42,455	36,550
Sales and marketing	6,137	5,886	19,838	16,619
General and administrative	9,057	7,928	27,207	22,850
Depreciation of fixed assets	909	437	3,042	1,371
Amortization of internal-use software and intangibles	343	430	1,120	1,326
Other (gains) and charges, net	(924)	93	45	374
Legal settlements	—	104	—	104
Total operating expense	30,073	27,294	93,707	79,194
Operating income	7,751	3,482	12,273	9,442
Other income (expense):
Interest income	1,252	704	3,580	1,186
Other income (expense), net	95	384	(15)	799
Income before taxes	9,098	4,570	15,838	11,427
Income tax (benefit) provision	(68,043)	678	(67,396)	920
Net income	$77,141	$3,892	$83,234	$10,507
Series A convertible preferred stock dividends	(286)	(459)	(1,204)	(1,377)
Net income attributable to common shareholders	$76,855	$3,433	$82,030	$9,130
Weighted average shares outstanding - basic	25,808	24,703	25,256	24,651
Net income per share - basic:	$2.98	$0.14	$3.25	$0.37
Weighted average shares outstanding - diluted	26,979	26,070	26,463	25,780
Net income per share - diluted:	$2.85	$0.13	$3.10	$0.35

CONDENSED CONSOLIDATED STATE MENTS OF COMPREHENSIVE INCOME

	Three months endedDecember 31,		Nine months endedDecember 31,
(In thousands)	2023	2022	2023	2022
Net income	77,141	$3,892	83,234	$10,507
Other comprehensive income (loss), net of tax:
Unrealized foreign currency translation adjustments	187	(248)	131	(902)
Total comprehensive income	$77,328	$3,644	$83,365	$9,605

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended
	December 31,
(In thousands)	2023	2022
Operating activities
Net income	$83,234	$10,507
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on asset disposals	(1,145)	—
Depreciation of fixed assets	3,042	1,371
Amortization of internal-use software and intangibles	1,120	1,326
Deferred income taxes	(66,506)	(378)
Share-based compensation	9,489	9,410
Changes in operating assets and liabilities	(10,855)	(4,556)
Net cash provided by operating activities	18,379	17,680
Investing activities
Capital expenditures	(7,658)	(3,616)
Additional investments in corporate-owned life insurance policies	(2)	(27)
Net cash used in investing activities	(7,660)	(3,643)
Financing activities
Payment of preferred stock dividends	(1,663)	(1,836)
Repurchase of common shares to satisfy employee tax withholding	(5,734)	(2,924)
Principal payments under long-term obligations	(2)	(3)
Net cash used in financing activities	(7,399)	(4,763)
Effect of exchange rate changes on cash	38	(427)
Net increase in cash and cash equivalents	3,358	8,847
Cash and cash equivalents at beginning of period	112,842	96,971
Cash and cash equivalents at end of period	$116,200	$105,818

CONDENSED CONSOLIDATED STATEM ENTS OF SHAREHOLDERS' EQUITY

Common Shares · Capital in · Accumulated
Issued · In Treasury · excess of · other
(In thousands, except share data)	Shares	Statedvalue	Shares	Statedvalue	Statedvalue	Retainedearnings	comprehensiveincome (loss)	Total
Balance at September 30, 2023	31,607	$9,482	(6,236)	$(1,871)	$55,154	$57,939	$(4,086)	$116,618
Share-based compensation	—	—	—	—	3,488	—	—	3,488
Restricted shares issued, net	—	—	173	52	(52)	—	—	—
Shares issued upon exercise of SSARs	—	—	93	28	(28)	—	—	—
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares	—	—	(22)	(7)	(1,868)	—	—	(1,875)
Net income	—	—	—	—	—	77,141	—	77,141
Conversion of Series A preferred stock	1,735	521	—	—	34,479	—	—	35,000
Series A convertible preferred stock dividends	—	—	—	—	—	(286)	—	(286)
Unrealized translation adjustments	—	—	—	—	—	—	187	187
Balance at December 31, 2023	33,342	$10,003	(5,992)	$(1,798)	$91,173	$134,794	$(3,899)	$230,273
Common Shares · Capital in · Accumulated
Issued · In Treasury · excess of · other
(In thousands, except share data)	Shares	Statedvalue	Shares	Statedvalue	Statedvalue	Retainedearnings	comprehensiveincome (loss)	Total
Balance at September 30, 2022	31,607	$9,482	(6,550)	$(1,965)	$54,072	$45,715	$(710)	$106,594
Share-based compensation	—	—	—	—	3,323	—	—	3,323
Restricted shares issued, net	—	—	86	26	(26)	—	—	—
Shares issued upon exercise of SSARs	—	—	58	18	(18)	—	—	—
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares	—	—	(16)	(5)	(1,185)	—	—	(1,190)
Net income	—	—	—	—	—	3,892	—	3,892
Series A convertible preferred stock dividends	—	—	—	—	—	(459)	—	(459)
Unrealized translation adjustments	—	—	—	—	—	—	(248)	(248)
Balance at December, 2022	31,607	$9,482	(6,422)	$(1,926)	$56,166	$49,148	$(958)	$111,912
Common Shares · Capital in · Accumulated
Issued · In Treasury · excess of · other
(In thousands, except share data)	Shares	Statedvalue	Shares	Statedvalue	Statedvalue	Retainedearnings	comprehensiveincome (loss)	Total
Balance at March 31, 2023	31,607	$9,482	(6,280)	$(1,884)	$52,978	$52,764	$(4,030)	$109,310
Share-based compensation	—	—	—	—	9,399	—	—	9,399
Restricted shares issued, net	—	—	177	53	(53)	—	—	—
Shares issued upon exercise of SSARs	—	—	183	55	(55)	—	—	—
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares	—	—	(72)	(22)	(5,575)	—	—	(5,597)
Net income	—	—	—	—	—	83,234	—	83,234
Conversion of Series A preferred stock	1,735	521	—	—	34,479	—	—	35,000
Series A convertible preferred stock dividends	—	—	—	—	—	(1,204)	—	(1,204)
Unrealized translation adjustments	—	—	—	—	—	—	131	131
Balance at December 31, 2023	33,342	$10,003	(5,992)	$(1,798)	$91,173	$134,794	$(3,899)	$230,273
Common Shares · Capital in · Accumulated
Issued · In Treasury · excess of · other
(In thousands, except share data)	Shares	Statedvalue	Shares	Statedvalue	Statedvalue	Retainedearnings	comprehensiveincome (loss)	Total
Balance at March 31, 2022	31,607	$9,482	(6,879)	$(2,063)	$49,963	$40,018	$(56)	$97,344
Share-based compensation	—	—	—	—	9,342	—	—	9,342
Restricted shares issued, net	—	—	331	99	(99)	—	—	—
Shares issued upon exercise of SSARs	—	—	181	55	(55)	—	—	—
Shares withheld for taxes upon exercise of SSARs or vesting of restricted shares	—	—	(55)	(17)	(2,985)	—	—	(3,002)
Net income	—	—	—	—	—	10,507	—	10,507
Series A convertible preferred stock dividends	—	—	—	—	—	(1,377)	—	(1,377)
Unrealized translation adjustments	—	—	—	—	—	—	(902)	(902)
Balance at December, 2022	31,607	$9,482	(6,422)	$(1,926)	$56,166	$49,148	$(958)	$111,912

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.