Financial Overview. July Copyright Infor. All Rights Reserved.

Transcription

1 Financial Overview July 2015 Copyright Infor. All Rights Reserved. 1

2 Infor Overview $2.8B total revenue FY15 LTM* pro forma $786M adjusted EBITDA FY15 LTM* pro forma 13,000 employees 3,444 new customers in FY15 45M cloud users one of the world s largest providers of enterprise software and services 18% growth net new license bookings (ACV) 3,870 developers 3,520 consultants 1,630 support engineers * LTM = Last twelve months ended April 30,

3 Pro forma revenue ($ in millions) FY15 Financial Overview $3,000 $2,770 $2,860 $2,760 License Fees Maintenance Services $2,000 $1,000 $553 $625 $601 $1,467 $1,502 $1,459 $0 $750 $733 $700 FY 2014 FY 2015 LTM CC FY 2015 LTM Actual YoY Growth: CC (1) Actual License Fees +13.7% +9.2% Maintenance +2.3% -0.6% Services -2.4% -6.7% Total +3.3% -0.3% Adjusted EBITDA $814M $819M $786M % Margin 29.4% 28.6% 28.5% Note: Results as presented are pro forma for pre-acquisition results and reversal of acquisition related adjustments (1) Constant currency is computed by converting actual results using FY14 exchange rates 3

4 Q1 FY16 v. Q1 FY15 P&L: Pro Forma Pro Forma Results (1) Currency-adjusted Results $ in millions Actual Actual % Currency Adjusted Actual % Q116 Q115 Variance Variance Impact (2) Q116 Q115 Variance Variance Revenue Software license fees and subscriptions $ $ $ (71.6) -37.2% $ (7.4) $ $ $ (64.2) -33.3% Product updates and support fees (16.8) -4.5% (25.3) % Software revenues (88.4) -15.6% (32.7) (55.7) -9.8% Consulting services and other fees (25.0) -13.3% (17.0) (8.0) -4.3% Total revenues (113.4) -15.0% (49.7) (63.7) -8.4% Expenses Cost of software license fees and subscriptions (2.4) -7.1% (1.1) (1.3) -3.9% Cost of product updates and support fees (5.1) -7.6% (5.0) (0.1) -0.1% Cost of consulting services and other fees (7.7) -5.3% (15.0) % Sales and marketing costs (26.3) -20.6% (6.7) (19.6) -15.3% Research and development (2.8) -2.7% (5.9) % General and administrative (16.2) -26.8% (4.8) (11.4) -18.9% Amortization of intangible assets and depreciation (8.4) -12.9% (3.3) (5.1) -7.8% Restructuring costs (5.7) -76.0% (0.3) (5.4) -72.0% Acquisition related and other costs % % Total operating expenses (73.3) -12.0% (42.1) (31.2) -5.1% Income from operations (40.1) -27.9% (7.6) (32.5) -22.6% Interest expense, net (16.1) -18.2% (16.1) -18.2% Other (income) expense, net (37.2) (32.1) (5.1) 15.9% 2.7 (39.9) (32.1) (7.8) 24.3% Income before income taxes (18.9) -21.7% (10.3) (8.6) -9.9% Income tax provision (2.4) -18.8% (0.2) (2.2) -17.2% Net income $ 57.9 $ 74.4 $ (16.5) -22.2% $ (10.1) $ 68.0 $ 74.4 $ (6.4) #DIV/0! -8.6% Add backs (54.0) -33.0% (1.0) (53.0) -32.4% Adjusted EBITDA $ $ $ (70.5) -29.6% $ (11.1) $ $ $ (59.4) -25.0% Adjusted EBITDA margin 26.1% 31.6% 25.9% 31.6% (1) Pro Forma Results contain reversal of purchase accounting adjustments (2) Currency impact is computed by converting actual results using Q115 exchange rates 4

5 LTM April 2015 v. LTM April 2014 P&L: Pro Forma Pro Forma Results (1)(2) Currency-adjusted Results $ in millions Actual Actual % Currency Adjusted Actual % FY15 FY14 Variance Variance Impact (3) FY15 FY14 Variance Variance Revenue Software license fees and subscriptions $ $ $ % $ (24.8) $ $ $ % Product updates and support fees 1, ,467.3 (8.4) -0.6% (42.8) 1, , % Software revenues 2, , % (67.6) 2, , % Consulting services and other fees (50.2) -6.7% (32.2) (18.0) -2.4% Total revenues 2, ,767.8 (7.8) -0.3% (99.8) 2, , % Expenses Cost of software license fees and subscriptions % (3.0) % Cost of product updates and support fees % (7.9) % Cost of consulting services and other fees (33.5) -5.6% (24.5) (9.0) -1.5% Sales and marketing costs % (12.4) % Research and development % (11.4) % General and administrative % (7.8) % Amortization of intangible assets and depreciation (18.0) -6.8% (6.3) (11.7) -4.4% Restructuring costs (1.9) -14.2% (0.1) (1.8) -13.4% Acquisition-related and other costs (24.6) -93.5% (24.6) -93.5% Total operating expenses 2, ,299.8 (24.7) -1.1% (73.4) 2, , % Income from operations % (26.4) % Interest expense, net (33.2) -8.7% (33.3) -8.7% Loss on extinguishment of debt nm nm Other (income) expense, net (77.5) (46.1) (31.4) 68.1% (12.2) (65.3) (46.1) (19.2) 41.6% Income before income taxes (85.7) -68.0% (14.3) (71.4) -56.7% Income tax provision (benefit) (39.2) 7.3 (46.5) nm (3.6) (35.6) 7.3 (42.9) nm Net income $ 79.5 $ $ (39.2) -33.0% $ (10.7) $ 90.2 $ $ (28.5) #DIV/0! -24.0% Add backs % (22.1) % Adjusted EBITDA $ $ $ (25.9) -3.2% $ (32.8) $ $ $ % Adjusted EBITDA margin 28.5% 29.3% 28.6% 29.3% (1) Pro Forma Results contain reversal of acquisition-related adjustments (2) Pro Forma Results for FY15 reflect the twelve months ended April 30, Pro Forma Results for FY14 have been recast to reflect the corresponding twelve months ended April 30, 2014 (3) Currency impact is computed by converting actual results using FY14 exchange rates 5

6 Balance Sheet & Cash Flow Highlights $613.2M cash & equivalents at Q1 FY16 We have significant cash on our balance sheet and continue to generate strong cash flows In addition to cash on hand, we have $150.0 million revolving credit facility available to us that has not been used $275.4M in current accounts receivable at Q1 FY16 Historical DSO less than 50 days $342.2M operating cash flow in FY15 LTM $129.2M operating cash flow in Q1 FY16 53% of total revenue from maintenance in FY15 LTM with 93%+ renewal rates Highly profitable and highly predictable revenue and cash flow model 6

7 Our Sponsors Leading private equity firm with approximately $12 billion of committed capital under management Golden Gate is dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses Golden Gate is one of the most active software investors in the world, having invested in or acquired more than 65 software companies since its inception in 2000 Current portfolio of software companies generated combined revenues in 2014 of approximately $8 billion Representative Technology Investments Leading growth equity firm founded in 1984 Raised more than $16 billion in capital, and has invested in more than 400 companies in technology, healthcare and other growth sectors Particularly active in the technology sector, having made investments in more than 230 technology companies, including more than 110 software companies Helped build pioneering companies in the ERP, CRM, information and data security, antivirus, messaging management and archiving, and SaaS categories Representative Technology Investments 7

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9 Q1 FY16 v. Q1 FY15 P&L: GAAP Actual Results Currency-adjusted Results $ in millions Actual Actual % Currency Adjusted Actual % Q116 Q115 Variance Variance Impact (1) Q116 Q115 Variance Variance Revenue Software license fees and subscriptions $ $ $ (71.0) -37.0% $ (7.4) $ $ $ (63.6) -33.1% Product updates and support fees (17.1) -4.6% (25.3) % Software revenues (88.1) -15.6% (32.7) (55.4) -9.8% Consulting services and other fees (24.8) -13.2% (17.0) (7.8) -4.2% Total revenues (112.9) -15.0% (49.7) (63.2) -8.4% Expenses Cost of software license fees and subscriptions (2.4) -7.1% (1.1) (1.3) -3.9% Cost of product updates and support fees (5.1) -7.6% (5.0) (0.1) -0.1% Cost of consulting services and other fees (7.7) -5.3% (15.0) % Sales and marketing costs (26.3) -20.6% (6.7) (19.6) -15.3% Research and development (2.8) -2.7% (5.9) % General and administrative (16.2) -26.8% (4.8) (11.4) -18.9% Amortization of intangible assets and depreciation (8.4) -12.9% (3.3) (5.1) -7.8% Restructuring costs (5.7) -76.0% (0.3) (5.4) -72.0% Acquisition-related and other costs % % Total operating expenses (73.3) -12.0% (42.1) (31.2) -5.1% Income from operations (39.6) -27.7% (7.6) (32.0) -22.4% Interest expense, net (16.1) -18.2% (16.1) -18.2% Other (income) expense, net (37.2) (32.1) (5.1) 15.9% 2.7 (39.9) (32.1) (7.8) 24.3% Income before income taxes (18.4) -21.3% (10.3) (8.1) -9.4% Income tax provision (2.4) -18.8% (0.2) (2.2) -17.2% Net income $ 57.5 $ 73.5 $ (16.0) -21.8% $ (10.1) $ 67.6 $ 73.5 $ (5.9) -8.0% (1) Currency impact is computed by converting actual results using Q115 exchange rates 9

10 FY15 v. FY14 P&L: GAAP 11-Month Transition Period Actual Results (1) Currency-adjusted Results $ in millions Actual Actual % Currency Adjusted Actual % FY15 11-month FY14 11-month Variance Variance Impact (2) FY15 11-month FY14 11-month Variance Variance Revenue (recast) (recast) Software license fees and subscriptions $ $ $ % $ (24.2) $ $ $ % Product updates and support fees 1, ,340.9 (10.6) -0.8% (44.3) 1, , % Software revenues 1, , % (68.5) 1, , % Consulting services and other fees (47.6) -7.0% (33.1) (14.5) -2.1% Total revenues 2, ,445.7 (6.8) -0.3% (101.6) 2, , % Expenses Cost of software license fees and subscriptions % (2.9) % Cost of product updates and support fees (0.9) -0.4% (8.1) % Cost of consulting services and other fees (33.1) -6.1% (25.3) (7.8) -1.4% Sales and marketing costs % (12.8) % Research and development % (11.6) % General and administrative % (8.1) % Amortization of intangible assets and depreciation (18.6) -7.7% (6.6) (12.0) -5.0% Restructuring costs (7.1) -55.5% (0.2) (6.9) -53.9% Acquisition-related and other costs (25.9) -94.9% (25.9) -94.9% Total operating expenses 2, ,077.5 (31.8) -1.5% (75.6) 2, , % Income from operations % (26.0) % Interest expense, net (28.3) -8.1% (28.3) -8.1% Loss on extinguishment of debt nm nm Other (income) expense, net (66.8) (52.0) (14.8) 28.5% (11.9) (54.9) (52.0) (2.9) 5.6% Income (loss) before income taxes (32.5) 66.6 (99.1) nm (14.1) (18.4) 66.6 (85.0) nm Income tax provision (benefit) (52.2) (0.4) (51.8) nm (2.1) (50.1) (0.4) (49.7) nm Net income $ 19.7 $ 67.0 $ (47.3) -70.6% $ (12.0) $ 31.7 $ 67.0 $ (35.3) -52.7% (1) Actual Results for YTD FY15 reflect the eleven-month transition period of June 1, 2014, through April 30, Actual Results for YTD FY14 have been recast to reflect the corresponding eleven months ended April 30, 2014 (2) Currency impact is computed by converting actual results using FY14 exchange rates 10

11 Q1 FY16 and FY15 Balance Sheet: GAAP July 31, April 30, $ in millions Assets Current assets Cash and cash equivalents $ $ Accounts receivable, net Other current assets Total current assets 1, ,076.8 Property and equipment, net of accumulated depreciation Intangible assets, net of accumulated amortization 4, ,776.8 Other long-term assets Total assets $ 6,011.0 $ 6,048.5 Liabilities and Stockholders' Deficit Current liabilities Accounts payable and accrued liabilities Deferred revenue Current portion of long-term debt Total current liabilities 1, ,303.2 Long-term debt, net 5, ,226.7 Other long-term liabilities Total liabilities 6, ,845.3 Stockholders' deficit (803.6) (796.8) Total liabilities and stockholders' deficit $ 6,011.0 $ 6,

12 Q1 FY16 and Q1 FY15 Cash Flow: GAAP $ in millions Three Months Ended July 31, 2015 July 31, 2014 Cash flows from operating activities Net income $ 57.5 $ 73.5 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Non cash items and change in working capital Net cash provided by operating activities Cash flows from investing activities Purchases of property, equipment and software (9.5) (10.5) Other investing activities Net cash used in investing activities (9.4) (9.9) Cash flows from financing activities Deferred financing fees and other financing activities (0.4) - Loans to stockholders (1.6) (0.2) Payment of debt obligations (9.2) (9.5) Dividends paid (17.0) - Net cash used in financing activities (28.2) (9.7) Net Increase in cash and cash equivalents Effect of exchange rate on cash and cash equivalents (5.1) (7.8) Net (decrease) increase in cash and cash equivalents Cash and cash equivalents Beginning of the period End of the period $ $

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