MONTREAL, QUEBEC--(Marketwire - March 1, 2012) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the third quarter of fiscal year 2012, ended January 31, 2012. All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.
Highlights of the Third Quarter include:
- Revenue increased 14% to $10.6M in Q3, 2012 from $9.3M in Q3, 2011. Q3, 2012 revenue excludes $769,000 in license fees booked during the quarter of which most will be recognized rateably over the next year.
- Backlog increased 18% to $24.6M at the end of Q3, 2012 from $20.8M at the end of Q3, 2011.
- Profit from operations for the third quarter, 2012 was $378K compared to $445K in Q3, 2011.
- Net profit for the quarter was $305K or $0.03 per share compared to $778K or $0.07 per share for the third quarter of last fiscal year. EBITDA for Q3, 2012 was $755K compared to $1,144K in Q3 of last fiscal year. The comparable quarter of last year included a revaluation of the fair value of asset backed commercial paper which increased net profit by $302K.
- At the end of Q3, 2012 annualized recurring revenue in Canadian currency increased 6% to $14.8M from $14M at the end of Q3, 2011. Annualized recurring revenue at the end of Q3, 2012 represented 40% of the Company's revenue for the last 12 months.
- Cash from operations amounted to $1.7M for the third quarter, 2012 up from $1.5M for the same quarter of the prior year.
- Cash, cash equivalents and other short-term investments amounted to $5.0M at the end of Q3, 2012, compared to $7.3M at the end of fiscal 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 March 30th, 2012 to shareholders of record on March 16, 2012.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "Q3 was a good quarter from a number of perspectives; we grew our revenue for both products and services, improved our recurring revenue, continued to strengthen our human resources infrastructure and following quarter end we announced five exciting products at a major industry show. The revenue growth reflects the improved market conditions we have experienced in recent months. It also reflects the resurgence of the heavy equipment service parts market which resulted in two of our new account wins in the quarter. Furthermore, our customer base invested significantly in our products and services and our services' organization accelerated the deployment of our software, completing the go-lives of nineteen customer sites. Service excellence remains a core part of our culture and we have increased our headcount, particularly in services, to continue to meet the needs of our growing customer base."
During the quarter, the Company won the business of eight new clients, including:
- A healthcare products and services supplier in the U.S.
- Two major heavy equipment dealers in the U.S.
- A promotional products manufacturer and distributor in Canada
- A U.S.-based importer of packaged food ingredients
- An arts and crafts distributor in the U.S.
- Two industrial distributors in Canada
Highlights of the first Nine Months of fiscal year 2012 include:
- Revenue for the first nine months, 2012 increased 6% to $28.7M compared to $27.2 for the same period of last fiscal year.
- Profit from operations for the first nine months, 2012 was $720K compared to $870K for the same period of last fiscal year.
- Net profit for the first nine months, 2012 was $584K or $0.05 per share compared to $1,079K or $0.09 per share for the same period of the prior fiscal year. EBITDA for the first nine months, 2012 was $1,802K compared to $2,117K for the same period in 2011. The comparable nine-month period of last year included a revaluation of the fair value of asset backed commercial paper which increased net profit by $302K.
TECSYS' Third Quarter 2012 Earnings Conference Call:
Subject: Third Quarter FY2012 Results Conference Call
Date: March 1, 2012
Time: 4:30 pm
Phone number: 800-269-0310 or 416-359-3126
The call can be replayed by calling 800-558-5253 (access code: 21580804) or 416-626-4100 (access code: 21580804).
Related link: Mobility and Point-Of-Use Innovations Driving TECSYS' WMS Well Beyond the Current Competitive Landscape (http://www.tecsys.com/company/news/2012/nr201201.shtml)
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 more than 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 January 31, 2012, April 30, 2011 and May 1, 2010 (in thousands of Canadian dollars) |
| January 31, | April 30, | May 1, | |||||
| 2012 | 2011 | 2010 | |||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 4,460 | $ | 6,404 | $ | 7,256 | |
| Short-term and other investments | 525 | 850 | 850 | ||||
| Asset-backed commercial paper | - | 3,584 | - | ||||
| Accounts receivable | 8,074 | 6,860 | 7,346 | ||||
| Work in progress | 436 | 45 | 66 | ||||
| Other accounts receivable and derivatives | 405 | 303 | 425 | ||||
| Tax credits | 3,087 | 1,737 | 1,914 | ||||
| Inventory | 797 | 180 | 171 | ||||
| Prepaid expenses | 1,248 | 850 | 879 | ||||
| Total current assets | 19,032 | 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 | 15 | 23 | 48 | ||||
| Tax credits | 1,123 | 1,123 | 930 | ||||
| Investment in equity-accounted associate | 205 | 220 | 211 | ||||
| Property and equipment | 2,911 | 2,268 | 2,395 | ||||
| Deferred development costs | 2,422 | 2,448 | 1,991 | ||||
| Other intangible assets | 352 | 288 | 364 | ||||
| Goodwill | 2,239 | 2,239 | 2,239 | ||||
| Deferred tax assets | 609 | 609 | 595 | ||||
| Total non-current assets | 10,076 | 9,418 | 12,487 | ||||
| Total assets | $ | 29,108 | $ | 30,231 | $ | 31,394 | |
| Liabilities | |||||||
| Current liabilities | |||||||
| Bank advances | $ | - | $ | 3,720 | $ | 3,951 | |
| Accounts payable and accrued liabilities | 6,949 | 4,114 | 4,890 | ||||
| Loans payable | 88 | 107 | 249 | ||||
| Provisions | - | - | 415 | ||||
| Deferred revenue | 6,608 | 6,344 | 5,827 | ||||
| Total current liabilities | 13,645 | 14,285 | 15,332 | ||||
| Equity | |||||||
| Share capital | 1,683 | 1,467 | 1,386 | ||||
| Contributed surplus | 10,059 | 10,993 | 12,103 | ||||
| Retained earnings | 3,721 | 3,486 | 2,573 | ||||
| Total equity attributable to the owners of the Company | 15,463 | 15,946 | 16,062 | ||||
| Total liabilities and equity | $ | 29,108 | $ | 30,231 | $ | 31,394 | |
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Comprehensive Income (Unaudited) |
| Three and nine-month periods ended January 31, 2012 and 2011 |
| (in thousands of Canadian dollars, except per share data) |
| Three Months | Three Months | Nine Months | Nine Months | ||||||||||
| Ended | Ended | Ended | Ended | ||||||||||
| January 31, | January 31, | January 31, | January 31, | ||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||
| Revenue: | |||||||||||||
| Products | $ | 4,202 | $ | 3,609 | $ | 10,050 | $ | 9,943 | |||||
| Services | 6,177 | 5,477 | 18,021 | 16,555 | |||||||||
| Reimbursable expenses | 216 | 213 | 626 | 666 | |||||||||
| Total revenue | 10,595 | 9,299 | 28,697 | 27,164 | |||||||||
| Cost of revenue: | |||||||||||||
| Products | 1,673 | 1,641 | 3,860 | 4,075 | |||||||||
| Services | 4,127 | 3,553 | 11,669 | 10,710 | |||||||||
| Reimbursable expenses | 216 | 213 | 626 | 666 | |||||||||
| Total cost of revenue | 6,016 | 5,407 | 16,155 | 15,451 | |||||||||
| Gross profit | 4,579 | 3,892 | 12,542 | 11,713 | |||||||||
| Operating expenses: | |||||||||||||
| Sales and marketing | 1,820 | 1,391 | 4,894 | 4,637 | |||||||||
| General and administration | 1,051 | 955 | 3,043 | 2,728 | |||||||||
| Research and development, net of tax credits | 1,333 | 1,101 | 3,888 | 3,478 | |||||||||
| Other | (3 | ) | - | (3 | ) | - | |||||||
| Total operating expenses | 4,201 | 3,447 | 11,822 | 10,843 | |||||||||
| Profit from operations | 378 | 445 | 720 | 870 | |||||||||
| Finance income | 6 | 317 | 22 | 325 | |||||||||
| Finance costs | (57 | ) | 29 | (143 | ) | (32 | ) | ||||||
| Net finance (costs) income | (51 | ) | 346 | (121 | ) | 293 | |||||||
| Share of net loss of equity-accounted associate | (22 | ) | (13 | ) | (15 | ) | (61 | ) | |||||
| Profit before income taxes | 305 | 778 | 584 | 1,102 | |||||||||
| Income taxes | - | - | - | 23 | |||||||||
| Profit attributable to the owners of the Company and comprehensive income for the period | $ | 305 | $ | 778 | $ | 584 | $ | 1,079 | |||||
| Basic and diluted earnings per common share | $ | 0.03 | $ | 0.07 | $ | 0.05 | $ | 0.09 | |||||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Cash Flows |
| (Unaudited) |
| Three and nine-month periods ended January 31, 2012 and 2011 |
| (in thousands of Canadian dollars) |
| Three Months | Three Months | Nine Months | Nine Months | ||||||||||
| Ended | Ended | Ended | Ended | ||||||||||
| January 31, | January 31, | January 31, | January 31, | ||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||
| Cash flows from operating activities: | |||||||||||||
| Profit for the period | $ | 305 | $ | 778 | $ | 584 | $ | 1,079 | |||||
| Adjustments for: | |||||||||||||
| Depreciation of property and equipment | 202 | 212 | 557 | 475 | |||||||||
| Depreciation of other intangible assets | 31 | 30 | 86 | 107 | |||||||||
| Depreciation of deferred development costs | 216 | 150 | 571 | 424 | |||||||||
| Share-based compensation | - | 13 | 40 | 43 | |||||||||
| Net finance costs (income) | 51 | (346 | ) | 121 | (293 | ) | |||||||
| Realized foreign exchange gains (losses) and others | (102 | ) | 10 | 110 | 29 | ||||||||
| Share of net loss of equity-accounted associate | 22 | 13 | 15 | 61 | |||||||||
| Operating activities excluding changes in non-cash working capital items related to operations | 725 | 860 | 2,084 | 1,925 | |||||||||
| Accounts receivable | (623 | ) | (954 | ) | (1,214 | ) | (1,143 | ) | |||||
| Work in progress | (216 | ) | 156 | (391 | ) | (86 | ) | ||||||
| Other accounts receivable | (271 | ) | 109 | (272 | ) | 255 | |||||||
| Tax credits | (473 | ) | 1,138 | (1,350 | ) | 401 | |||||||
| Inventory | (632 | ) | (6 | ) | (617 | ) | (27 | ) | |||||
| Prepaid expenses | (249 | ) | (68 | ) | (398 | ) | (42 | ) | |||||
| Accounts payable and accrued liabilities | 2,526 | 419 | 2,540 | 978 | |||||||||
| Provisions | - | (415 | ) | - | (415 | ) | |||||||
| Deferred revenue | 909 | 296 | 264 | (256 | ) | ||||||||
| Changes in non-cash working capital items related to operations | 971 | 675 | (1,438 | ) | (335 | ) | |||||||
| Net cash from operating activities | 1,696 | 1,535 | 646 | 1,590 | |||||||||
| Cash flows from financing activities: | |||||||||||||
| Bank advances | - | (6 | ) | (3,720 | ) | (8 | ) | ||||||
| Repayment of loans | (2 | ) | (142 | ) | (19 | ) | (142 | ) | |||||
| Issuance of common shares | - | 77 | 190 | 104 | |||||||||
| Purchase of common shares for cancellation | (341 | ) | (630 | ) | (398 | ) | (876 | ) | |||||
| Purchase of share options for cancellation | (2 | ) | - | (339 | ) | - | |||||||
| Payment of dividends | - | - | (349 | ) | (305 | ) | |||||||
| Interest paid | (3 | ) | (13 | ) | (14 | ) | (25 | ) | |||||
| Net cash used in financing activities | (348 | ) | (714 | ) | (4,649 | ) | (1,252 | ) | |||||
| Cash flows from investing activities: | |||||||||||||
| Short-term and other investments | - | - | 325 | - | |||||||||
| Interest received | 6 | 15 | 22 | 23 | |||||||||
| Proceeds from asset-backed commercial paper | - | 10 | 3,584 | 19 | |||||||||
| Acquisitions of property and equipment | (864 | ) | (105 | ) | (1,200 | ) | (800 | ) | |||||
| Proceeds on disposal of property and equipment | 3 | - | 3 | - | |||||||||
| Acquisitions of other intangible assets | (45 | ) | (13 | ) | (150 | ) | (24 | ) | |||||
| Deferred development costs | (161 | ) | (222 | ) | (545 | ) | (743 | ) | |||||
| Non-current receivables including the current portionfrom a related party | 1 | 17 | 20 | 53 | |||||||||
| Net cash (used in) from investing activities | (1,060 | ) | (298 | ) | 2,059 | (1,472 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents during the period | 288 | 523 | (1,944 | ) | (1,134 | ) | |||||||
| Cash and cash equivalents - beginning of period | 4,172 | 5,599 | 6,404 | 7,256 | |||||||||
| Cash and cash equivalents - end of period | $ | 4,460 | $ | 6,122 | $ | 4,460 | $ | 6,122 | |||||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Changes in Equity |
| (Unaudited) |
| Nine-month periods ended January 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, 2011 | 11,678,671 | $ | 1,467 | $ | 10,993 | $ | 3,486 | $ | 15,946 | |||||||
| Profit and comprehensive income for the period | - | - | - | 584 | 584 | |||||||||||
| Total comprehensive income for the period | - | - | - | 584 | 584 | |||||||||||
| Repurchase of common shares | (176,900 | ) | (22 | ) | (376 | ) | - | (398 | ) | |||||||
| Repurchase of share options | - | - | (279 | ) | - | (279 | ) | |||||||||
| Share options exercised | 114,400 | 190 | - | - | 190 | |||||||||||
| Fair value associated with options exercised | - | 48 | - | - | 48 | |||||||||||
| Fair value of share options transferred to liabilities | - | - | (319 | ) | - | (319 | ) | |||||||||
| Share-based compensation | - | - | 40 | - | 40 | |||||||||||
| Dividends to equity owners | - | - | - | (349 | ) | (349 | ) | |||||||||
| Total transactions with owners of the Company | (62,500 | ) | 216 | (934 | ) | (349 | ) | (1,067 | ) | |||||||
| Balance, January 31, 2012 | 11,616,171 | $ | 1,683 | $ | 10,059 | 3,721 | $ | 15,463 | ||||||||
| Balance, May 1, 2010 | 12,225,306 | $ | 1,386 | $ | 12,103 | $ | 2,573 | $ | 16,062 | |||||||
| Profit and comprehensive income for the period | - | - | - | 1,079 | 1,079 | |||||||||||
| Total comprehensive income for the period | - | - | - | 1,079 | 1,079 | |||||||||||
| Repurchase of common shares | (456,553 | ) | (52 | ) | (824 | ) | - | (876 | ) | |||||||
| Stock options exercised | 73,718 | 104 | - | - | 104 | |||||||||||
| Fair value associated with options exercised | - | 47 | (47 | ) | - | - | ||||||||||
| Share-based compensation | - | - | 43 | - | 43 | |||||||||||
| Dividends to equity owners | - | - | - | (305 | ) | (305 | ) | |||||||||
| Total transactions with owners of the Company | (382,835 | ) | 99 | (828 | ) | (305 | ) | (1,034 | ) | |||||||
| Balance, January 31, 2011 | 11,842,471 | $ | 1,485 | $ | 11,275 | $ | 3,347 | $ | 16,107 | |||||||
Contact Information:
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649