Exhibit 99.1
Tyler to Acquire
New World Systems
Investor Summary
October 1, 2015
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Forward-Looking Statements
Safe Harbor Statement
Our commentary and responses to your questions may contain forward-looking statements, including our outlook for New World System’s performance and the full year 2015 and 2016. Forward-looking statements include projections of sales, earnings, general economic conditions, market conditions, working capital, market shares, free cash flow, pricing levels, and effective tax rates. Neither Tyler nor New World Systems undertakes any obligation to update any such statements, whether as a result of new information, future events, or otherwise.
Actual results may differ materially from those expressed or implied. Such differences may result from a variety of factors, including: legal or regulatory proceedings or other matters that affect the timing or ability to complete the transactions as contemplated; the risk that the businesses will not be integrated successfully; the loss of senior management or key employees of Tyler or New World Systems; the possibility of disruption from the merger making it more difficult to maintain business and operational relationships; the possibility that the merger does not close, including due to the failure to satisfy the closing conditions; any actions taken by either of the companies, including restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions); developments beyond the companies’ control, including: changes in domestic or global economic conditions, competitive conditions and consumer preferences; natural disasters; international, political or military developments; and technological developments. Additional information on factors that could cause actual results to differ materially from those discussed today is available in this morning’s announcement and in filings with the SEC, including the detailed “Risk Factors” contained in our most recent Annual Report on Form 10-K.
Non-GAAP Measures
On this call and in this summary we include guidance and estimates with respect to non-GAAP financial measures in discussing Tyler and New World System’s expected performance. We use these measures and believe they are useful to investors because they provide additional insight in comparing results from period to period. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler may be different from non-GAAP measures used by other companies. Because Tyler does not predict special items that might occur in the future, and its outlook is developed at a level of detail different than that used to prepare GAAP financial measures, Tyler is not providing a reconciliation to GAAP of its forward-looking financial measures for the year ending December 31, 2016.
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New World Systems Overview
Company Name
Consideration
Non-GAAP Revenue1
Non-GAAP EBITDA1
Non-GAAP EPS1
Products
Divisions
Customers
New World Systems Corporation
$670 million, subject to standard post closing adjustments
$360 million in cash, funded with cash on hand and new revolver
2.1 million Tyler shares, valued at $310 million based on the 20 trading day average closing price of Tyler stock prior to signing, per agreement
Represents 5.9% of Tyler’s shares outstanding post transaction
$134 million
$49 million
$0.56
Immediately accretive to non-GAAP EPS
Application software for Public Safety agencies and
Public Sector ERP
AEGIS – Public Safety
LOGOS – Public Sector ERP
Public Sector Agencies including Law Enforcement, Fire & EMS, Cities, Counties and K-12 School Districts
New World Systems®
The Public Sector Software Company
Privately owned
Founded in 1981
Based in Troy, Michigan
Over 470 employees
Over 2,000 public sector customers
Over 30 years of consistent growth and profitability
1 Reflects 2016 expected financial impact
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New World Systems Business Overview
Aegis
Highlights
Full suite of integrated Public Safety software solutions
Provides accurate and secure information for dispatchers, officers in the field, firefighters, EMS and corrections officers
Multi-jurisdictional and multi-discipline applicability
Industry-leading GIS mapping integration
Products
CAD / 911 Records Management
Mobile Messaging Corrections Management
Field Reporting Analytics
Logos
Complete ERP suite for state and government agencies and K-12 school districts
Helps hundreds of public sector organizations across the country manage their ERP, improve citizen service and streamline local government operations
World class customer support capabilities
$ Financial Management Utility Management
HR / Payroll Analytics & Dashboards
Community Development Web Based Self Service
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New World Systems Customer Overview
Revenue
Aegis
Logos
Protecting and serving over 40 million citizens across 44 states
For more than 30 years, has been providing a local government specific ERP solution
AEGIS Revenue by Customer
County 20%
Other 9%
City 71%
Revenue Mix
Public Safety 67%
ERP 33%
LOGOS Revenue by Customer
County 31%
Other 10%
City 59%
State of Delaware
York County, PA
Kankakee County, IL
Waukesha County, WI
Cupertino, CA
Ann Arbor, MI
Case Studies
900k population served
Over 1 million annual calls for service
Customer since 1992
All PSAPs in state running New World
435k population served
121 agencies
Customer since 2005
No downtime during Tropical Storm Lee in 2011
115k population served
Full suite of applications across the county
Customer since 2006
Escapee apprehended & identified using New World Data within 70 hours
Population of 390k
1,400 employees
Replaced Oracle
Quantified savings of $1.2M
Population of 59k
400 employees
Nationally recognized progressive city
Met mandated 7 month implementation schedule
Population of 113k
800 employees
Replaced CGI/AMS
Transparency leader using Logos Business Analytics
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Public Sector Software Market Overview
Emphasis on Operational Costs Savings
Increased Use of Technology to Improve Productivity, Customer Service and Transparency
Focus on Identifying Fraud, Waste and Abuse Activities
ERP System Modernization
IT Infrastructure Challenges Driving Cloud-Based Deployments
K-12 CIOs Seeking Greater Functionality and Interoperability Across Systems
Addressable Market
Total Market: $13B1
Public Admin. & Finance Software $5B2
Public Sector market growing at 4-5% annually
50 states, more than 3,200 counties, ~35,000 cities and towns, and more than 14,000 public school districts3
1 Gartner
2 Company estimates
3 US Census Bureau
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Public Safety Software Market Overview
Highly Fragmented Market
Public Safety Agency and PSAP (Call Center) Consolidation
Outdated Systems in Need of Replacement
Growing Demand for Next-Gen Technology
(e.g. FirstNet, NG911)
Increased Demand for Data Sharing and Analytics
Addressable Market
Total Market: $13B1
Public Admin. & Finance Software $5B2
Public Safety Software $2B2
Public Safety Software market growing at ~7%3
5,900+ primary and secondary PSAPs in the U.S.4
>240 million 911 calls made in the U.S. each year4
1 Gartner
2 Company estimates
3 Frost & Sullivan
4 National Emergency Number Association
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Strategic Rationale
1 Positions Tyler as a leader in Public Safety software
2 Enables Tyler to provide an end-to-end solution spanning from Public Safety through Criminal Justice
3 Enhances market reach and customer base across the Public Sector ERP market
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New World Systems® The Public Sector Software Company
4 Complementary products and markets creates a strong cross-sell opportunity; especially in Public Safety / Courts & Justice
5 Provides a significant base of highly recurring revenues
6 Immediately accretive to Tyler’s margins and cash flow
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New World Systems Has an Attractive Financial Profile
Strong revenue growth
Top line growth outpacing the market
High operating leverage
~37% Adjusted EBITDA margin
Expected Financial Impact 2016E
Non-GAAP Revenue $134 million
Non-GAAP EBITDA $49 million
Non-GAAP Fully Diluted EPS $0.56
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Compelling Strategic Fit
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#1 provider of software solutions to state and local governments
Leading Courts & Justice solution
Industry leading product R&D and innovation with national presence
Singular focus on public sector coupled with “evergreen” model for upgrades
Greater than 98% client retention rate
New World Systems® The Public Sector Software Company
A leading provider of Public Safety solutions, AEGIS provides agencies easy access to information and workflow for enhanced response times and data management
LOGOS public administration software helps hundreds of public sector organizations manage their ERP and streamline operations
Strong recurring revenue base and operating margins
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Supports Tyler’s strategy of being an industry leader in all major enterprise applications essential for local government
Significant cross-sell opportunities across products and complementary capabilities such as SaaS, and disaster recovery services
Combination of Tyler’s Odyssey Courts and Justice solution with the Aegis Public Safety platform will create a unique end-to-end solution
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www.tylertech.com
www.newworldsystems.com
Brian Miller – Executive VP & CFO
brian.miller@tylertech.com
972-713-3720
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