MONTREAL, QUEBEC--(Marketwire - Sept. 6, 2012) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the first quarter of fiscal year 2013, ended July 31st, 2012. All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.
Financial Highlights of the Quarter:
- Revenue increased by 28% to $11.5M in Q1 of fiscal 2013 compared to $9.0M in Q1 of fiscal 2012.
- Gross profit increased by 38% to $5.4M in Q1, 2013 compared to $3.9M in Q1, 2012.
- Profit from operations increased substantially to $1,048K in Q1, 2013 compared to 172K in Q1, 2012.
- EBITDA for Q1, 2013 increased to $1,633K compared to $530K for Q1 of last fiscal year.
- Net profit for Q1, 2013 was $1,125K or $0.10 per share, compared to $146K or $0.01 per share for the first quarter of last fiscal year.
- Annualized recurring revenue stood at $15.6M at the end of Q1, 2013, up from $13.8M at the end of Q1, 2012. Recurring revenue for Q1, 2013 represented 37% of revenue for the last twelve months and is principally made-up of annual maintenance services and hosting contracts.
- Backlog at the end of Q1, 2013, reached $26.2M compared to $20.4M at the end of Q1, 2012.
- Cash, cash equivalents and short-term investments amounted to $5.1M at the end of Q1, 2013 compared to $5.2M at the end of Q4, 2012 with no long term debt.
TECSYS also announced today that the Company's Board of Directors has declared a semi- annual dividend of $0.035/share, to be paid on October 5, 2012 to shareholders of record on September 21, 2012. This represents an increase of 16.7% from the previous semi-annual dividend.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "We believe that we have the best supply chain execution suite on the market today and the market is beginning to agree with us. Q1, 2013 was a great quarter. Momentum from Q3 and Q4, 2012 continued in this quarter with a substantial revenue increase compared to last year for both of our products and services, driving gross profit up by 38% and resulting in a ten cent EPS. Our ability to capture major accounts, particularly in the past five years, has significantly improved and solidified our recurring revenue stream. Among the many agreements, this quarter included the signing of a major contract with an existing customer, a Fortune 500 manufacturer and distributor, which contributed to this quarter's growth and profitability. Furthermore, our investment in our services infrastructure is starting to pay off; we were able to increase delivery to our clients and complete the deployment of nineteen customer sites contributing to a 12% increase in services revenue in Q1."
During the quarter, the Company signed a significant number of agreements with existing and new clients including:
- Three in the healthcare sector
- Fifteen in general high-volume distribution
- Thirteen in the SMB sector
TECSYS' First Quarter 2013 Earnings Conference Call:
Date: September 6, 2012
Time: 4:30 pm
Phone number: 800-747-0367 or 416-981-9017
The call can be replayed by calling 800-558-5253 (access code: 21603393) or 416-626-4100 (access code: 21603393).
About TECSYS
TECSYS is a leading supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company's customers include over 500 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high-volume distribution industries. TECSYS' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.
The statements in this news release relating to matters that are not historical fact are forward looking statements that are based on management's beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that TECSYS Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of TECSYS Inc., which could cause actual results to differ materially from such statements. More information about the risks and uncertainties associated with TECSYS Inc.'s business can be found in the MD&A section of the Company's annual report and annual information form for the fiscal year ended April 30th, 2012. These documents have been filed with the Canadian securities commissions and are available on our website (www.tecsys.com) and on SEDAR (www.sedar.com).
Copyright © TECSYS Inc. 2012. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.
| TECSYS Inc. | |||||
| Condensed Interim Consolidated Statements of Financial Position | |||||
| (Unaudited) | |||||
| As at July 31, 2012 and April 30, 2012 | |||||
| (in thousands of Canadian dollars) | |||||
| July 31, | April 30, | ||||
| 2012 | 2012 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 5,104 | $ | 5,217 | |
| Accounts receivable | 7,110 | 8,207 | |||
| Work in progress | 1,067 | 645 | |||
| Other accounts receivable and derivatives | 276 | 190 | |||
| Tax credits | 2,509 | 2,070 | |||
| Inventory | 691 | 696 | |||
| Prepaid expenses | 1,221 | 1,177 | |||
| Total current assets | 17,978 | 18,202 | |||
| Non-current assets | |||||
| Restricted cash equivalents and other investments | 120 | 160 | |||
| Non-current receivables | 85 | 99 | |||
| Tax credits | 1,070 | 1,076 | |||
| Property and equipment | 3,284 | 2,911 | |||
| Deferred development costs | 2,703 | 2,514 | |||
| Other intangible assets | 410 | 362 | |||
| Goodwill | 2,239 | 2,239 | |||
| Deferred tax assets | 826 | 587 | |||
| Total non-current assets | 10,737 | 9,948 | |||
| Total assets | $ | 28,715 | $ | 28,150 | |
| Liabilities | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | $ | 5,177 | $ | 5,844 | |
| Loans payable | 82 | 85 | |||
| Deferred revenue | 6,968 | 6,665 | |||
| Total current liabilities | 12,227 | 12,594 | |||
| Equity | |||||
| Share capital | 1,713 | 1,688 | |||
| Contributed surplus | 9,805 | 10,023 | |||
| Retained earnings | 4,970 | 3,845 | |||
| Total equity attributable to the owners of the Company | 16,488 | 15,556 | |||
| Total liabilities and equity | $ | 28,715 | $ | 28,150 | |
| TECSYS Inc. | |||||||
| Condensed Interim Consolidated Statements of Comprehensive Income | |||||||
| (Unaudited) | |||||||
| Three-month periods ended July 31, 2012 and 2011 | |||||||
| (in thousands of Canadian dollars, except per share data) | |||||||
| July 31, | July 31, | ||||||
| 2012 | 2011 | ||||||
| Revenue: | |||||||
| Products | $ | 4,487 | $ | 2,853 | |||
| Services | 6,680 | 5,955 | |||||
| Reimbursable expenses | 343 | 195 | |||||
| Total revenue | 11,510 | 9,003 | |||||
| Cost of revenue: | |||||||
| Products | 928 | 1,041 | |||||
| Services | 4,819 | 3,832 | |||||
| Reimbursable expenses | 343 | 195 | |||||
| Total cost of revenue | 6,090 | 5,068 | |||||
| Gross profit | 5,420 | 3,935 | |||||
| Operating expenses: | |||||||
| Sales and marketing | 1,918 | 1,478 | |||||
| General and administration | 1,114 | 934 | |||||
| Research and development, net of tax credits | 1,340 | 1,351 | |||||
| Total operating expenses | 4,372 | 3,763 | |||||
| Profit from operations | 1,048 | 172 | |||||
| Finance income | 92 | 6 | |||||
| Finance costs | (3 | ) | (18 | ) | |||
| Net finance income (costs) | 89 | (12 | ) | ||||
| Share of net loss of equity-accounted associate | - | (14 | ) | ||||
| Profit before income taxes | 1,137 | 146 | |||||
| Income taxes | 12 | - | |||||
| Profit attributable to the owners of the Companyand comprehensive income for the period | $ | 1,125 | $ | 146 | |||
| Basic and diluted earnings per common share | $ | 0.10 | $ | 0.01 | |||
| TECSYS Inc. | |||||||
| Condensed Interim Consolidated Statements of Cash Flows | |||||||
| (Unaudited) | |||||||
| Three-month periods ended July 31, 2012 and 2011 | |||||||
| (in thousands of Canadian dollars) | |||||||
| July 31, | July 31, | ||||||
| 2012 | 2011 | ||||||
| Cash flows from (used in) operating activities: | |||||||
| Profit for the period | $ | 1,125 | $ | 146 | |||
| Adjustments for: | |||||||
| Depreciation of property and equipment | 248 | 169 | |||||
| Depreciation of other intangible assets | 37 | 29 | |||||
| Depreciation of deferred development costs | 215 | 181 | |||||
| Share-based compensation | - | 8 | |||||
| Net finance (income) costs | (89 | ) | 12 | ||||
| Realized foreign exchange gains and others | 49 | 106 | |||||
| Share of net loss of equity-accounted associate | - | 14 | |||||
| Federal non-refundable research and development tax credits | (75 | ) | - | ||||
| Income taxes | (38 | ) | - | ||||
| Operating activities excluding changes in non-cash workingcapital items related to operations | 1,472 | 665 | |||||
| Accounts receivable | 1,097 | (196 | ) | ||||
| Work in progress | (422 | ) | (98 | ) | |||
| Other accounts receivable | (130 | ) | 67 | ||||
| Tax credits | (559 | ) | (432 | ) | |||
| Inventory | 5 | 35 | |||||
| Prepaid expenses | (44 | ) | (218 | ) | |||
| Accounts payable and accrued liabilities | (819 | ) | 57 | ||||
| Deferred revenue | 303 | 22 | |||||
| Changes in non-cash working capital items related to operations | (569 | ) | (763 | ) | |||
| Net cash from (used in) operating activities | 903 | (98 | ) | ||||
| Cash flows used in financing activities: | |||||||
| Repayment of bank advances | - | (3,720 | ) | ||||
| Repayment of loans | (3 | ) | - | ||||
| Issuance of common shares | 31 | - | |||||
| Purchase of common shares for cancellation | (231 | ) | (9 | ) | |||
| Purchase of share options for cancellation | - | (279 | ) | ||||
| Interest paid | (3 | ) | (7 | ) | |||
| Net cash used in financing activities | (206 | ) | (4,015 | ) | |||
| Cash flows (used in) from investing activities: | |||||||
| Short-term and other investments and restricted cash equivalentsand other investments | 40 | 325 | |||||
| Interest received | 7 | 6 | |||||
| Proceeds from asset-backed commercial paper | - | 3,584 | |||||
| Acquisitions of property and equipment | (378 | ) | (146 | ) | |||
| Acquisitions of other intangible assets | (89 | ) | (64 | ) | |||
| Deferred development costs | (404 | ) | (140 | ) | |||
| Non-current receivables including the current portionfrom a related party | 14 | 11 | |||||
| Net cash (used in) from investing activities | (810 | ) | 3,576 | ||||
| Net decrease in cash and cash equivalents during the period | (113 | ) | (537 | ) | |||
| Cash and cash equivalents - beginning of period | 5,217 | 6,404 | |||||
| Cash and cash equivalents - end of period | $ | 5,104 | $ | 5,867 | |||
| TECSYS Inc. | |||||||||||||
| Condensed Interim Consolidated Statements of Changes in Equity | |||||||||||||
| (Unaudited) | |||||||||||||
| Three-month periods ended July 31, 2012 and 2011 | |||||||||||||
| (in thousands of Canadian dollars, except number of shares) | |||||||||||||
| Share capital | Contributed | Retained | Total | ||||||||||
| Number | Amount | surplus | earnings | ||||||||||
| Balance, April 30, 2012 | 11,603,271 | $ | 1,688 | $ | 10,023 | 3,845 | $ | 15,556 | |||||
| Profit and comprehensive income for the period | - | - | - | 1,125 | 1,125 | ||||||||
| Total comprehensive income for the period | - | - | - | 1,125 | 1,125 | ||||||||
| Repurchase of common shares | (91,800 | ) | (13 | ) | (218 | ) | - | (231 | ) | ||||
| Share options exercised | 16,350 | 31 | - | - | 31 | ||||||||
| Fair value associated with options exercised | - | 7 | - | - | 7 | ||||||||
| Total transactions with owners of the Company | (75,450 | ) | 25 | (218 | ) | - | (193 | ) | |||||
| Balance, July 31, 2012 | 11,527,821 | $ | 1,713 | $ | 9,805 | 4,970 | $ | 16,488 | |||||
| Balance, April 30, 2011 | 11,678,671 | $ | 1,467 | $ | 10,993 | $ | 3,486 | $ | 15,946 | ||||
| Profit and comprehensive income for the period | - | - | - | 146 | 146 | ||||||||
| Total comprehensive income for the period | - | - | - | 146 | 146 | ||||||||
| Repurchase of common shares | (4,400 | ) | (1 | ) | (8 | ) | - | (9 | ) | ||||
| Repurchase of share options | - | - | (279 | ) | - | (279 | ) | ||||||
| Share-based compensation | - | - | 8 | - | 8 | ||||||||
| Total transactions with owners of the Company | (4,400 | ) | (1 | ) | (279 | ) | - | (280 | ) | ||||
| Balance, July 31, 2011 | 11,674,271 | $ | 1,466 | $ | 10,714 | $ | 3,632 | $ | 15,812 | ||||
Contact Information:
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649