MONTREAL, QUEBEC--(Marketwire - Sept. 8, 2011) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company announced today its results for the first quarter of fiscal year 2012, ended July 31st, 2011. 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:
- Gross profit increased by 20% to $3.9 million in Q1, 2012 compared to $3.3 million in Q1, 2011.
- Profit from operations for the first quarter of 2012 was $172K compared to a loss from operations of $315K in Q1, 2011.
- EBITDA for Q1, 2012 was $530K compared to negative EBITDA of $41K for Q1 of last fiscal year.
- Net profit for Q1, 2012 was $146K or $0.01 per share, compared to a net loss of $356K or $0.03 per share for the first quarter of last fiscal year.
- Revenue increased by 7% to $9.0M in Q1 of fiscal 2012 compared to $8.4M in Q1 of fiscal 2011.
- Annualized recurring revenue stood at $ 13.8M at the end of Q1, 2012, up from $13.6M at the end of Q1, 2011. Recurring revenue for Q1, 2012 represented 38% of revenue for the last twelve months and is principally made-up of annual software maintenance services and hosting contracts.
- Backlog at the end of Q1, 2012, reached $20.4M compared to $19.0M at the end of Q1, 2011.
- At the end of Q1, 2011, cash, cash equivalents and short-term investments amounted to $6.4M compared to $7.3M at the end of Q4, 2011 with no long term debt.
TECSYS also announced today that the Company's Board of Directors has declared a semi-annual dividend of $0.03/share, to be paid on October 6, 2011 to shareholders of record on September 22, 2011.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "A combination of projects completed from our solid and growing backlog and significant new business from our base accounts drove our top line 7% higher than Q1 of last year. Good execution of customer projects and implementation services enabled 9% growth in services revenue, while our continued focus on our own software enabled a 33% leap in proprietary software revenue, improving gross profit by 20% in the quarter compared to Q1 of last year. Furthermore, during the quarter, we were able to launch a new and innovative product − TECSYS' SMS (Supply Management System). TECSYS' SMS, a nurse-friendly supply chain execution solution, empowers hospitals and clinics to become significantly more efficient at point-of-use. It brings optimum ease-of-use to clinicians and provides them with access to supplies quickly and easily from anywhere in a hospital network. TECSYS' SMS also reduces cost and captures item usage for demand planning and ultimately for patient billing. TECSYS' SMS has already been deployed at its first customer, Parkview Health, who, in a very short period of time, has gained significant tangible and intangible benefits from its deployment. The launch of SMS further solidifies our market position in the hospital supply network space and provides us with a significant new source of revenue from new and existing clients and further improves our sales pipeline."
During the quarter, the Company signed nineteen agreements with existing and new clients including:
Healthcare:
- A leading supplier in pharmaceutical distribution in Canada
- A Med-Surg products distributor in the U.S.
- Two hospital supply networks in the U.S.
- A leading prescription drug and patient care supplier in the U.S.
- A third party distributor of healthcare products in the U.S.
- The Department of Health and Mental Hygiene of a major U.S. city
High-Volume Distribution:
- Four industrial distributors in Canada
- A supplier of corporate supplies and services in Canada
- Seven general high-volume distributors
Furthermore, TECSYS also deployed its supply chain execution solutions at seventeen customers in Canada and the United States.
TECSYS' First Quarter 2012 Earnings Conference Call:
Date: September 8, 2011
Time: 4:30 p.m. ET
Phone number: 800-617-7643 or 416-352-0001
The call can be replayed by calling 800-558-5253 (access code: 21536937) or 416-626-4100 (access code: 21536937).
Related Links
TECSYS Recurring Revenue Reaches 39% in Fiscal 2011:
http://www.tecsys.com/company/news/2011/nr201112.shtml
For more information about TECSYS' SMS, click here or go to:
http://info.tecsys.com/acton/form/1475/0002:d-0001/0/index.htm
IDNs Turn Exclusively to TECSYS: http://www.tecsys.com/company/news/2011/nr201108.shtml
Top-Rated Intermountain Healthcare Selects TECSYS:
http://www.tecsys.com/company/news/2011/nr201105.shtml
Piedmont HealthCare Eliminates Clinical Staff Supply Chain Distractions: http://www.tecsys.com/clients/success/Piedmont.pdf
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, 2011. 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. 2011. 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, 2011, April 30, 2011 and May 1, 2010 | ||||
| (in thousands of Canadian dollars) | ||||
| July 31, | April 30, | May 1, | ||
| 2011 | 2011 | 2010 | ||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 5,867 | 6,404 | 7,256 | |
| Short-term and other investments | 525 | 850 | 850 | |
| Asset-backed commercial paper | - | 3,584 | - | |
| Accounts receivable | 7,056 | 6,860 | 7,346 | |
| Work in progress | 143 | 45 | 66 | |
| Other accounts receivable and derivatives | 113 | 303 | 425 | |
| Tax credits | 2,169 | 1,737 | 1,914 | |
| Inventory | 145 | 180 | 171 | |
| Prepaid expenses | 1,068 | 850 | 879 | |
| Total current assets | 17,086 | 20,813 | 18,907 | |
| Non-current assets | ||||
| Restricted cash equivalents and other investments | 200 | 200 | 200 | |
| Asset-backed commercial paper | - | - | 3,514 | |
| Non-current receivables | 18 | 23 | 48 | |
| Tax credits | 1,123 | 1,123 | 930 | |
| Investment in equity-accounted associate | 206 | 220 | 211 | |
| Property and equipment | 2,245 | 2,268 | 2,395 | |
| Deferred development costs | 2,407 | 2,448 | 1,991 | |
| Other intangible assets | 323 | 288 | 364 | |
| Goodwill | 2,239 | 2,239 | 2,239 | |
| Deferred tax assets | 609 | 609 | 595 | |
| Total non-current assets | 9,370 | 9,418 | 12,487 | |
| Total assets | 26,456 | 30,231 | 31,394 | |
| Liabilities | ||||
| Current liabilities | ||||
| Bank advances | - | 3,720 | 3,951 | |
| Accounts payable and accrued liabilities | 4,171 | 4,114 | 4,890 | |
| Loans payable | 107 | 107 | 249 | |
| Provisions | - | - | 415 | |
| Deferred revenue | 6,366 | 6,344 | 5,827 | |
| Total current liabilities | 10,644 | 14,285 | 15,332 | |
| Equity | ||||
| Share capital | 1,466 | 1,467 | 1,386 | |
| Contributed surplus | 10,714 | 10,993 | 12,103 | |
| Retained earnings | 3,632 | 3,486 | 2,573 | |
| Total equity attributable to the owners of the Company | 15,812 | 15,946 | 16,062 | |
| Total liabilities and equity | 26,456 | 30,231 | 31,394 | |
| TECSYS Inc. | |||||
| Condensed Interim Consolidated Statements of Comprehensive Income | |||||
| (Unaudited) | |||||
| Three-month periods ended July 31, 2011 and 2010 | |||||
| (in thousands of Canadian dollars, except per share data) | |||||
| July 31, | July 31, | ||||
| 2011 | 2010 | ||||
| Revenue | |||||
| Products | 2,853 | 2,713 | |||
| Services | 5,955 | 5,467 | |||
| Reimbursable expenses | 195 | 238 | |||
| Total revenue | 9,003 | 8,418 | |||
| Cost of revenue | |||||
| Products | 1,041 | 1,199 | |||
| Services | 3,832 | 3,699 | |||
| Reimbursable expenses | 195 | 238 | |||
| Total cost of revenue | 5,068 | 5,136 | |||
| Gross profit | 3,935 | 3,282 | |||
| Operating expenses | |||||
| Sales and marketing | 1,478 | 1,525 | |||
| General and administration | 934 | 828 | |||
| Research and development, net of tax credits | 1,351 | 1,244 | |||
| Total operating expenses | 3,763 | 3,597 | |||
| Profit (loss) from operations | 172 | (315 | ) | ||
| Finance income | 6 | 3 | |||
| Finance costs | (18 | ) | (11 | ) | |
| Net finance costs | (12 | ) | (8 | ) | |
| Share of net loss of equity-accounted associate | (14 | ) | (22 | ) | |
| Profit (loss) before income taxes | 146 | (345 | ) | ||
| Income taxes | - | 11 | |||
| Profit (loss) and comprehensive income for the period | 146 | (356 | ) | ||
| Basic and diluted earnings (loss) per common share | $ 0.01 | $ (0.03 | ) | ||
| TECSYS Inc. | |||||
| Condensed Interim Consolidated Statements of Cash Flows | |||||
| (Unaudited) | |||||
| Three-month periods ended July 31, 2011 and 2010 | |||||
| (in thousands of Canadian dollars) | |||||
| July 31, | July 31, | ||||
| 2011 | 2010 | ||||
| Cash flows from | |||||
| Operating activities: | |||||
| Profit (loss) for the period | 146 | (356 | ) | ||
| Adjustments for: | |||||
| Depreciation of property and equipment | 169 | 126 | |||
| Depreciation of other intangible assets | 29 | 37 | |||
| Depreciation of deferred development costs | 181 | 124 | |||
| Share-based compensation | 8 | 20 | |||
| Net finance costs | 12 | 8 | |||
| Realized foreign exchange gains | 106 | 94 | |||
| Share of net loss of equity-accounted associate | 14 | 22 | |||
| Operating activities excluding changes in non-cash working capital items related to operations | 665 | 75 | |||
| Accounts receivable | (196 | ) | 11 | ||
| Work in progress | (98 | ) | (192 | ) | |
| Other accounts receivable | 67 | 35 | |||
| Tax credits | (432 | ) | (359 | ) | |
| Inventory | 35 | - | |||
| Prepaid expenses | (218 | ) | (150 | ) | |
| Accounts payable and accrued liabilities | 57 | 501 | |||
| Deferred revenue | 22 | 57 | |||
| Changes in non-cash working capital items related to operations | (763 | ) | (97 | ) | |
| Net cash used in operating activities | (98 | ) | (22 | ) | |
| Financing activities: | |||||
| Bank advances | (3,720 | ) | 2 | ||
| Purchase of common shares for cancellation | (9 | ) | (96 | ) | |
| Purchase of share options for cancellation | (279 | ) | - | ||
| Interest paid | (7 | ) | (5 | ) | |
| Net cash used in financing activities | (4,015 | ) | (99 | ) | |
| Investing activities: | |||||
| Short-term and other investments | 325 | - | |||
| Interest received | 6 | 3 | |||
| Proceeds from asset-backed commercial paper | 3,584 | 4 | |||
| Acquisitions of property and equipment | (146 | ) | (407 | ) | |
| Acquisitions of other intangible assets | (64 | ) | (10 | ) | |
| Deferred development costs | (140 | ) | (254 | ) | |
| Non-current receivables including the current portion from a related party | 11 | 13 | |||
| Net cash from (used in) investing activities | 3,576 | (651 | ) | ||
| Net decrease in cash and cash equivalents during the period | (537 | ) | (772 | ) | |
| Cash and cash equivalents - beginning of period | 6,404 | 7,256 | |||
| Cash and cash equivalents - end of period | 5,867 | 6,484 | |||
| TECSYS Inc. | |||||||||||
| Condensed Interim Consolidated Statements of Changes in Equity | |||||||||||
| (Unaudited) | |||||||||||
| Three-month periods ended July 31, 2011 and 2010 | |||||||||||
| (in thousands of Canadian dollars, except number of shares) | |||||||||||
| Share capital | Contributed | Retained | Total | ||||||||
| Number | Amount | surplus | earnings | ||||||||
| Balance, April 30, 2011 | 11,678,671 | 1,467 | 10,993 | 3,486 | 15,946 | ||||||
| Profit (loss) 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 | ||||||
| Share capital | Contributed | Retained | Total | ||||||||
| Number | Amount | surplus | earnings | ||||||||
| Balance, May 1, 2010 | 12,225,306 | 1,386 | 12,103 | 2,573 | 16,062 | ||||||
| Profit (loss) and comprehensive income for the period | - | - | - | (356 | ) | (356 | ) | ||||
| Total comprehensive income for the period | - | - | - | (356 | ) | (356 | ) | ||||
| Repurchase of common shares | (50,753 | ) | (6 | ) | (90 | ) | - | (96 | ) | ||
| Share-based compensation | - | - | 20 | - | 20 | ||||||
| Total transactions with owners of the Company | (50,753 | ) | (6 | ) | (70 | ) | - | (76 | ) | ||
| Balance, July 31, 2010 | 12,174,553 | 1,380 | 12,033 | 2,217 | 15,630 | ||||||
Contact Information:
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649