MONTREAL, QUEBEC--(Marketwire - Feb. 28, 2013) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the third quarter of fiscal year 2013, ended January 31, 2013. All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.
Overall highlights:
- A 26% rise in proprietary license revenue.
- Strengthened leadership position in healthcare, winning seven new agreements during the quarter with existing and new major clients.
- Increased market share in the heavy equipment dealer market with the signing of five new agreements with new and existing clients during the quarter.
- Existing clients from across its business units continued to invest in products and services - thirty two new agreements were concluded in the quarter.
- Continued to win in the SMB sector, with significant prospecting opportunities for warehouse management systems in this market space.
- Deployed supply chain execution solutions at fourteen customers in Canada and the United States.
Highlights of the Third Quarter include:
- Revenue was $10.4M in Q3, 2013 compared to $10.6M in Q3, 2012. The slight decline in revenue masks a 26% rise in proprietary license revenue because it was offset by a 34% decline in third party product revenue resulting in a decrease in product revenue of 12%.
- Services revenue rose by 4%.
- For Q3, 2013 EBITDA was negative at $28K compared to EBITDA of $755K in Q3 of last fiscal year.
- Loss from operations for the third quarter, 2013 was $464K compared to profit from operations of $378K in Q3, 2012.
- Net loss for the quarter was $543K or $0.05 per share compared to net profit of $305K or $0.03 per share for the third quarter of last fiscal year.
- Backlog increased to $25.1M at the end of Q3, 2013 from $24.6M at the end of Q3, 2012.
- At the end of Q3, 2013 annualized recurring revenue in Canadian currency increased 4% to $15.4M from $14.8M at the end of Q3, 2012. Annualized recurring revenue at the end of Q3, 2013 represented 35% of the Company's revenue for the last 12 months.
- Cash from operations amounted to $540K for the third quarter, 2013 compared to $1.7M for the same quarter of the prior year.
- Cash, cash equivalents and other short-term investments amounted to $7.7M at the end of Q3, 2013, compared to $5.2M at the end of Q3, 2012.
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 March 29, 2013 to shareholders of record on March 15, 2013.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "In Q3, we were pleased to see a significant number of new contracts from our client base and major wins in the health systems and heavy equipment dealer markets. We continue to be the market leader in health system supply chains in North America. Our year-to-date revenue and profitability are ahead of last year by 14% and 21% respectively. Our license fee sales are up 26% for the quarter and 70% year-to-date. Over the past year we have grown our human capital infrastructure substantially to respond to our growing demand for services. We have added 85 people and ramped up our expenses by $1.1M compared to Q3 of last year. Most of this was done over the summer and fall. It takes some time for this additional expense to generate revenue. Our strong balance sheet has allowed us to make this aggressive move. The opportunities ahead with our sales pipeline and prospecting business initiatives are both solid and continuing to rise. According to the leading industry analysts firm, the supply chain management industry outlook is positive and is expected to remain prosperous in 2013."
Highlights of the first Nine Months of fiscal year 2013 include:
- Revenue for the first nine months, 2013 increased 14% to $32.6M compared to $28.7M for the same period of last fiscal year.
- Profit from operations for the first nine months, 2013 was $1,012K compared to $720K for the same period of last fiscal year.
- EBITDA for the first nine months, 2013 was $2,218K compared to $1,802K for the same period in 2012.
- Net profit for the first nine months, 2013 was $704K or $0.06 per share compared to $584K or $0.05 per share for the same period of the prior fiscal year.
TECSYS' Third Quarter 2013 Earnings Conference Call:
| Subject: Third Quarter FY2013 Results Conference Call |
| Date: February 28, 2013 |
| Time: 4:30 pm EST |
| Phone number: 800-734-8583 or 416-981-9023 |
The call can be replayed by calling 800-558-5253 (access code: 21650148) or 416-626-4100 (access code: 21650148).
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, 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. 2013. 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, 2013 and April 30, 2012 |
| (in thousands of Canadian dollars) |
| January 31, | April 30, | ||||
| 2013 | 2012 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 7,214 | $ | 5,217 | |
| Short-term and other investments | 342 | - | |||
| Accounts receivable | 6,502 | 8,207 | |||
| Work in progress | 847 | 645 | |||
| Other accounts receivable and derivatives | 134 | 190 | |||
| Tax credits | 4,171 | 2,070 | |||
| Inventory | 569 | 696 | |||
| Prepaid expenses | 1,288 | 1,177 | |||
| Total current assets | 21,067 | 18,202 | |||
| Non-current assets | |||||
| Restricted cash equivalents and other investments | 120 | 160 | |||
| Non-current receivables | 54 | 99 | |||
| Tax credits | 1,057 | 1,076 | |||
| Property and equipment | 3,076 | 2,911 | |||
| Deferred development costs | 2,993 | 2,514 | |||
| Other intangible assets | 407 | 362 | |||
| Goodwill | 2,239 | 2,239 | |||
| Deferred tax assets | 743 | 587 | |||
| Total non-current assets | 10,689 | 9,948 | |||
| Total assets | $ | 31,756 | $ | 28,150 | |
| Liabilities | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | $ | 4,892 | $ | 5,844 | |
| Loans payable | 74 | 85 | |||
| Term loan | 1,000 | - | |||
| Deferred revenue | 6,560 | 6,665 | |||
| Total current liabilities | 12,526 | 12,594 | |||
| Term loan | 3,750 | - | |||
| Total non-current liabilities | 3,750 | - | |||
| Total liabilities | 16,276 | 12,594 | |||
| Equity | |||||
| Share capital | 1,743 | 1,688 | |||
| Contributed surplus | 9,588 | 10,023 | |||
| Retained earnings | 4,149 | 3,845 | |||
| Total equity attributable to the owners of the Company | 15,480 | 15,556 | |||
| Total liabilities and equity | $ | 31,756 | $ | 28,150 | |
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Comprehensive Income |
| (Unaudited) |
| Three and nine-month periods ended January 31, 2013 and 2012 |
| (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, | ||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||
| Revenue: | |||||||||||||
| Products | $ | 3,715 | $ | 4,202 | $ | 11,753 | $ | 10,050 | |||||
| Services | 6,413 | 6,177 | 20,082 | 18,021 | |||||||||
| Reimbursable expenses | 256 | 216 | 807 | 626 | |||||||||
| Total revenue | 10,384 | 10,595 | 32,642 | 28,697 | |||||||||
| Cost of revenue: | |||||||||||||
| Products | 1,190 | 1,673 | 3,217 | 3,860 | |||||||||
| Services | 5,121 | 4,127 | 14,840 | 11,669 | |||||||||
| Reimbursable expenses | 256 | 216 | 807 | 626 | |||||||||
| Total cost of revenue | 6,567 | 6,016 | 18,864 | 16,155 | |||||||||
| Gross profit | 3,817 | 4,579 | 13,778 | 12,542 | |||||||||
| Operating expenses: | |||||||||||||
| Sales and marketing | 2,073 | 1,820 | 5,709 | 4,894 | |||||||||
| General and administration | 870 | 1,051 | 2,972 | 3,043 | |||||||||
| Research and development, net of tax credits | 1,338 | 1,333 | 4,085 | 3,888 | |||||||||
| Other | - | (3 | ) | - | (3 | ) | |||||||
| Total operating expenses | 4,281 | 4,201 | 12,766 | 11,822 | |||||||||
| (Loss) profit from operations | (464 | ) | 378 | 1,012 | 720 | ||||||||
| Finance income | 3 | 6 | 32 | 22 | |||||||||
| Finance costs | (95 | ) | (57 | ) | (335 | ) | (143 | ) | |||||
| Net finance costs | (92 | ) | (51 | ) | (303 | ) | (121 | ) | |||||
| Share of net loss of equity-accounted associate | - | (22 | ) | - | (15 | ) | |||||||
| (Loss) profit before income taxes | (556 | ) | 305 | 709 | 584 | ||||||||
| Income taxes | (13 | ) | - | 5 | - | ||||||||
| (Loss) profit attributable to the owners of the Company and comprehensive (loss) income for the period | $ | (543 | ) | $ | 305 | $ | 704 | $ | 584 | ||||
| Basic and diluted (loss) earnings per common share | $ | (0.05 | ) | $ | 0.03 | $ | 0.06 | $ | 0.05 | ||||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Cash Flows |
| (Unaudited) |
| Three and nine-month periods ended January 31, 2013 and 2012 |
| (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, | ||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||
| Cash flows from operating activities: | |||||||||||||
| (Loss) profit for the period | $ | (543 | ) | $ | 305 | $ | 704 | $ | 584 | ||||
| Adjustments for: | |||||||||||||
| Depreciation of property and equipment | 221 | 202 | 723 | 557 | |||||||||
| Depreciation of other intangible assets | 41 | 31 | 117 | 86 | |||||||||
| Depreciation of deferred development costs | 236 | 216 | 646 | 571 | |||||||||
| Share-based compensation | - | - | - | 40 | |||||||||
| Net finance costs | 92 | 51 | 303 | 121 | |||||||||
| Realized foreign exchange gains (losses) and others | 19 | (102 | ) | 148 | 110 | ||||||||
| Share of net loss of equity-accounted associate | - | 22 | - | 15 | |||||||||
| Federal non-refundable research and development tax credits | (75 | ) | - | (225 | ) | - | |||||||
| Income taxes | 23 | - | 4 | - | |||||||||
| Operating activities excluding changes in non-cash working | |||||||||||||
| capital items related to operations | 14 | 725 | 2,420 | 2,084 | |||||||||
| Accounts receivable | 939 | (623 | ) | 1,705 | (1,214 | ) | |||||||
| Work in progress | 1,046 | (216 | ) | (202 | ) | (391 | ) | ||||||
| Other accounts receivable | 28 | (271 | ) | (57 | ) | (272 | ) | ||||||
| Tax credits | (792 | ) | (473 | ) | (2,015 | ) | (1,350 | ) | |||||
| Inventory | 116 | (632 | ) | 127 | (617 | ) | |||||||
| Prepaid expenses | (240 | ) | (249 | ) | (111 | ) | (398 | ) | |||||
| Accounts payable and accrued liabilities | (562 | ) | 2,526 | (1,237 | ) | 2,540 | |||||||
| Deferred revenue | (9 | ) | 909 | (105 | ) | 264 | |||||||
| Changes in non-cash working capital items related to operations | 526 | 971 | (1,895 | ) | (1,438 | ) | |||||||
| Net cash from operating activities | 540 | 1,696 | 525 | 646 | |||||||||
| Cash flows (used in) from financing activities: | |||||||||||||
| Repayment of bank advances | - | - | - | (3,720 | ) | ||||||||
| Repayment of loans | (5 | ) | (2 | ) | (11 | ) | (19 | ) | |||||
| Term loan | (250 | ) | - | 4,750 | - | ||||||||
| Issuance of common shares | 9 | - | 57 | 190 | |||||||||
| Purchase of common shares for cancellation | - | (341 | ) | (462 | ) | (398 | ) | ||||||
| Purchase of share options for cancellation | (162 | ) | (2 | ) | (243 | ) | (339 | ) | |||||
| Payment of dividends | - | - | (400 | ) | (349 | ) | |||||||
| Interest paid | (48 | ) | (3 | ) | (55 | ) | (14 | ) | |||||
| Net cash (used in) from financing activities | (456 | ) | (348 | ) | 3,636 | (4,649 | ) | ||||||
| Cash flows (used in) from investing activities: | |||||||||||||
| Short-term and other investments and restricted cash equivalentsand other investments | (342 |
) | - |
(302 |
) | 325 |
|||||||
| Interest received | 18 | 6 | 32 | 22 | |||||||||
| Proceeds from asset-backed commercial paper | - | - | - | 3,584 | |||||||||
| Acquisitions of property and equipment | (73 | ) | (864 | ) | (649 | ) | (1,200 | ) | |||||
| Proceeds on disposal of property and equipment | - | 3 | - | 3 | |||||||||
| Acquisitions of other intangible assets | (59 | ) | (45 | ) | (166 | ) | (150 | ) | |||||
| Deferred development costs | (416 | ) | (161 | ) | (1,125 | ) | (545 | ) | |||||
| Non-current receivables including the current portionfrom a related party | 15 |
1 |
46 |
20 |
|||||||||
| Net cash (used in) from investing activities | (857 | ) | (1,060 | ) | (2,164 | ) | 2,059 | ||||||
| Net (decrease) increase in cash and cash equivalents during the period | (773 | ) | 288 | 1,997 | (1,944 | ) | |||||||
| Cash and cash equivalents - beginning of period | 7,987 | 4,172 | 5,217 | 6,404 | |||||||||
| Cash and cash equivalents - end of period | $ | 7,214 | $ | 4,460 | $ | 7,214 | $ | 4,460 | |||||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Changes in Equity |
| (Unaudited) |
| Nine-month periods ended January 31, 2013 and 2012 |
| (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 | - | - | - | 704 | 704 | ||||||||||
| Total comprehensive income for the period | - | - | - | 704 | 704 | ||||||||||
| Repurchase of common shares | (187,300 | ) | (27 | ) | (435 | ) | - | (462 | ) | ||||||
| Share options exercised | 31,450 | 57 | - | - | 57 | ||||||||||
| Fair value associated with options exercised | - | 25 | - | - | 25 | ||||||||||
| Dividends to equity owners | - | - | - | (400 | ) | (400 | ) | ||||||||
| Total transactions with owners of the Company | (155,850 | ) | 55 | (435 | ) | (400 | ) | (780 | ) | ||||||
| Balance, January 31, 2013 | 11,447,421 | $ | 1,743 | $ | 9,588 | $ | 4,149 | $ | 15,480 | ||||||
| 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 | ) | ||||||||
| Stock 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 | ||||||
Contact Information:
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649