MONTREAL, QUEBEC--(Marketwire - Nov. 29, 2012) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the second quarter of fiscal year 2013, ended October 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.
Second Quarter Financial Summary:
- Revenue increased 18% to $10.7M in Q2, 2013 compared to $9.1M in Q2, 2012.
- Profit from operations for the second quarter, 2013 increased to $428K compared to $170K in Q2, 2012.
- Due to the rising stock price, option expense surged to $313K in the quarter reflecting the non-dilutive measure taken by the company of cash settling options.
- EBITDA for Q2, 2013 increased to $613K ($926K prior to revaluation of the fair value of the share options liability) compared to $517K in Q2 of last fiscal year ($555K prior to revaluation of the fair value of the share options liability).
- Net profit for the second quarter, 2013 was $122K or $0.01 per share ($435K or $0.04 prior to revaluation of the fair value of the share options liability) compared to $133K or $0.01 per share for the second quarter of last fiscal year ($171K or $0.01 prior to revaluation of the fair value of the share options liability).
- At the end of Q2, 2013 annualized recurring revenue in Canadian currency increased to $15.5M, or 36% of the last twelve months trailing revenue, from $14.4M at the end of Q2 of last fiscal year.
- Backlog at the end of Q2, 2013 was $25.5M compared to $21.5M at the end of Q2, 2012.
- Cash flow from operations prior to changes in non-cash working capital amounted to $934K in Q2, 2013 compared to $694K in Q2, 2012.
- Cash, cash equivalents and other short-term investments amounted to $8.1M at the end of Q2, 2013, compared to $4.9M at the end of Q2, 2012. The substantial increase in cash and cash equivalents is attributable to the financing transaction concluded and announced on November 1st, 2012.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "Our top line continued to improve with double-digit growth in Q2, 2013 as we delivered 18% growth in revenue and 21% growth in bookings compared to last year. The quarter marked the beginnings of the resurgence in the hospital supply network market with a win of a mid-size organization in this space and further penetration of the educational market with our unique self-distribution value proposition. We continued to ramp up the resources of our consulting practice to meet the growing demand for our services; the results of this initiative is starting to pay off with a significantly stronger execution infrastructure and improved top line."
During the quarter, the Company won the business of five new clients including:
- A $1.6 billion Hospital Supply Network in the U.S.
- An independent school district in the U.S.
- An innovative, educational resource supplier in the U.K.
- A leading giftware and collectibles distributor in Canada
- An industrial distributor in Canada
TECSYS also signed a significant number of new business agreements with existing clients and deployed its supply chain execution solutions at a number of customers from across its business units in Canada and the United States.
First Half Financial Summary:
- Revenue for the first half, 2013 increased 23% to $22.3M compared to $18.1M for the same period of last fiscal year.
- Profit from operations for the first half, 2013 increased significantly to $1,476K compared to $342K for the same period in last fiscal year.
- EBITDA for the first half, 2013 reached $2,246K compared to $1,047K for the first half of 2012.
- Net profit for the first half of fiscal, 2013 increased to $1,247K or $0.11 per share compared to $279K or $0.02 per share for the same period of the prior fiscal year.
- Cash flow from operations prior to changes in non-cash working capital amounted to $2.4M for the first half, 2013 compared to $1.4M for the first half of 2012.
TECSYS' Second Quarter 2013 Earnings Conference Call:
Subject: Second Quarter FY2013 Results Conference Call
Date: November 29, 2012
Time: 4:30 pm
Phone number: 800-909-4796 or 416-981-9018
The call can be replayed by calling 800-558-5253 (access code: 21613577) or 416-626-4100 (access code: 21613577).
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 600 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 October 31, 2012 and April 30, 2012 |
| (in thousands of Canadian dollars) |
| October 31, | April 30, | ||||
| 2012 | 2012 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 7,987 | $ | 5,217 | |
| Accounts receivable | 7,441 | 8,207 | |||
| Work in progress | 1,893 | 645 | |||
| Other accounts receivable and derivatives | 162 | 190 | |||
| Tax credits | 3,214 | 2,070 | |||
| Inventory | 685 | 696 | |||
| Prepaid expenses | 1,048 | 1,177 | |||
| Total current assets | 22,430 | 18,202 | |||
| Non-current assets | |||||
| Restricted cash equivalents and other investments | 120 | 160 | |||
| Non-current receivables | 69 | 99 | |||
| Tax credits | 1,063 | 1,076 | |||
| Property and equipment | 3,225 | 2,911 | |||
| Deferred development costs | 2,813 | 2,514 | |||
| Other intangible assets | 389 | 362 | |||
| Goodwill | 2,239 | 2,239 | |||
| Deferred tax assets | 850 | 587 | |||
| Total non-current assets | 10,768 | 9,948 | |||
| Total assets | $ | 33,198 | $ | 28,150 | |
| Liabilities | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | $ | 5,547 | $ | 5,844 | |
| Loans payable | 79 | 85 | |||
| Term loan | 1,000 | - | |||
| Deferred revenue | 6,569 | 6,665 | |||
| Total current liabilities | 13,195 | 12,594 | |||
| Term loan | 4,000 | - | |||
| Total non-current liabilities | 4,000 | - | |||
| Total liabilities | 17,195 | 12,594 | |||
| Equity | |||||
| Share capital | 1,723 | 1,688 | |||
| Contributed surplus | 9,588 | 10,023 | |||
| Retained earnings | 4,692 | 3,845 | |||
| Total equity attributable to the owners of the Company | 16,003 | 15,556 | |||
| Total liabilities and equity | $ | 33,198 | $ | 28,150 | |
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Comprehensive Income |
| (Unaudited) |
| Three and six-month periods ended October 31, 2012 and 2011 |
| (in thousands of Canadian dollars, except per share data) |
| | | Three Months Ended October 31, 2012 | | | Three Months Ended October 31, 2011 | | | Six Months Ended October 31, 2012 | | | Six Months Ended October 31, 2011 | | |
| Revenue: | |||||||||||||
| Products | $ | 3,551 | $ | 2,995 | $ | 8,038 | $ | 5,848 | |||||
| Services | 6,989 | 5,889 | 13,669 | 11,844 | |||||||||
| Reimbursable expenses | 208 | 215 | 551 | 410 | |||||||||
| Total revenue | 10,748 | 9,099 | 22,258 | 18,102 | |||||||||
| Cost of revenue: | |||||||||||||
| Products | 1,099 | 1,146 | 2,027 | 2,187 | |||||||||
| Services | 4,900 | 3,710 | 9,719 | 7,542 | |||||||||
| Reimbursable expenses | 208 | 215 | 551 | 410 | |||||||||
| Total cost of revenue | 6,207 | 5,071 | 12,297 | 10,139 | |||||||||
| Gross profit | 4,541 | 4,028 | 9,961 | 7,963 | |||||||||
| Operating expenses: | |||||||||||||
| Sales and marketing | 1,718 | 1,596 | 3,636 | 3,074 | |||||||||
| General and administration | 988 | 1,058 | 2,102 | 1,992 | |||||||||
| Research and development, net of tax credits | 1,407 | 1,204 | 2,747 | 2,555 | |||||||||
| Total operating expenses | 4,113 | 3,858 | 8,485 | 7,621 | |||||||||
| Profit from operations | 428 | 170 | 1,476 | 342 | |||||||||
| Finance income | (63 | ) | 10 | 29 | 16 | ||||||||
| Finance costs | (237 | ) | (68 | ) | (240 | ) | (86 | ) | |||||
| Net finance costs | (300 | ) | (58 | ) | (211 | ) | (70 | ) | |||||
| Share of net profit of equity-accounted associate | - | 21 | - | 7 | |||||||||
| Profit before income taxes | 128 | 133 | 1,265 | 279 | |||||||||
| Income taxes | 6 | - | 18 | - | |||||||||
| Profit attributable to the owners of the Company and comprehensive income for the period | $ | 122 | $ | 133 | $ | 1,247 | $ | 279 | |||||
| Basic and diluted earnings per common share | $ | 0.01 | $ | 0.01 | $ | 0.11 | $ | 0.02 | |||||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Cash Flows |
| (Unaudited) |
| Three and six-month periods ended October 31, 2012 and 2011 |
| (in thousands of Canadian dollars) |
| Three Months | Three Months | Six Months | Six Months | ||||||||||
| Ended | Ended | Ended | Ended | ||||||||||
| October 31, | October 31, | October 31, | October 31, | ||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||
| Cash flows from (used in) operating activities: | |||||||||||||
| Profit for the period | $ | 122 | $ | 133 | $ | 1,247 | $ | 279 | |||||
| Adjustments for: | |||||||||||||
| Depreciation of property and equipment | 254 | 186 | 502 | 355 | |||||||||
| Depreciation of other intangible assets | 39 | 26 | 76 | 55 | |||||||||
| Depreciation of deferred development costs | 195 | 174 | 410 | 355 | |||||||||
| Share-based compensation | - | 32 | - | 40 | |||||||||
| Net finance costs | 300 | 58 | 211 | 70 | |||||||||
| Realized foreign exchange gains and others | 80 | 106 | 129 | 212 | |||||||||
| Share of net profit of equity-accounted associate | - | (21 | ) | - | (7 | ) | |||||||
| Federal non-refundable research and development tax credits | (75 | ) | - | (150 | ) | - | |||||||
| Income taxes | 19 | - | (19 | ) | - | ||||||||
| Operating activities excluding changes in non-cash working capital items related to operations | 934 | 694 | 2,406 | 1,359 | |||||||||
| Accounts receivable | (331 | ) | (395 | ) | 766 | (591 | ) | ||||||
| Work in progress | (826 | ) | (77 | ) | (1,248 | ) | (175 | ) | |||||
| Other accounts receivable | 45 | (68 | ) | (85 | ) | (1 | ) | ||||||
| Tax credits | (664 | ) | (445 | ) | (1,223 | ) | (877 | ) | |||||
| Inventory | 6 | (20 | ) | 11 | 15 | ||||||||
| Prepaid expenses | 173 | 69 | 129 | (149 | ) | ||||||||
| Accounts payable and accrued liabilities | 144 | (43 | ) | (675 | ) | 14 | |||||||
| Deferred revenue | (399 | ) | (667 | ) | (96 | ) | (645 | ) | |||||
| Changes in non-cash working capital items related to operations | (1,852 | ) | (1,646 | ) | (2,421 | ) | (2,409 | ) | |||||
| Net cash used in operating activities | (918 | ) | (952 | ) | (15 | ) | (1,050 | ) | |||||
| Cash flows from (used in) financing activities: | |||||||||||||
| Repayment of bank advances | - | - | - | (3,720 | ) | ||||||||
| Repayment of loans | (3 | ) | (17 | ) | (6 | ) | (17 | ) | |||||
| Term loan | 5,000 | - | 5,000 | - | |||||||||
| Issuance of common shares | 17 | 190 | 48 | 190 | |||||||||
| Purchase of common shares for cancellation | (231 | ) | (48 | ) | (462 | ) | (57 | ) | |||||
| Purchase of share options for cancellation | (81 | ) | (58 | ) | (81 | ) | (337 | ) | |||||
| Payment of dividends | (400 | ) | (349 | ) | (400 | ) | (349 | ) | |||||
| Interest paid | (4 | ) | (4 | ) | (7 | ) | (11 | ) | |||||
| Net cash from (used in) financing activities | 4,298 | (286 | ) | 4,092 | (4,301 | ) | |||||||
| Cash flows (used in) from investing activities: | |||||||||||||
| Short-term and other investments and restricted cash equivalents and other investments | - | - | 40 | 325 | |||||||||
| Interest received | 7 | 10 | 14 | 16 | |||||||||
| Proceeds from asset-backed commercial paper | - | - | - | 3,584 | |||||||||
| Acquisitions of property and equipment | (198 | ) | (190 | ) | (576 | ) | (336 | ) | |||||
| Acquisitions of other intangible assets | (18 | ) | (41 | ) | (107 | ) | (105 | ) | |||||
| Deferred development costs | (305 | ) | (244 | ) | (709 | ) | (384 | ) | |||||
| Non-current receivables including the current portion from a related party | 17 | 8 | 31 | 19 | |||||||||
| Net cash (used in) from investing activities | (497 | ) | (457 | ) | (1,307 | ) | 3,119 | ||||||
| Net increase (decrease) in cash and cash equivalents during the period | 2,883 | (1,695 | ) | 2,770 | (2,232 | ) | |||||||
| Cash and cash equivalents - beginning of period | 5,104 | 5,867 | 5,217 | 6,404 | |||||||||
| Cash and cash equivalents - end of period | $ | 7,987 | $ | 4,172 | $ | 7,987 | $ | 4,172 | |||||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Changes in Equity |
| (Unaudited) |
| Six-month periods ended October 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 | - | - | - | 1,247 | 1,247 | ||||||||||
| Total comprehensive income for the period | - | - | - | 1,247 | 1,247 | ||||||||||
| Repurchase of common shares | (187,300 | ) | (27 | ) | (435 | ) | - | (462 | ) | ||||||
| Share options exercised | 25,950 | 48 | - | - | 48 | ||||||||||
| Fair value associated with options exercised | - | 14 | - | - | 14 | ||||||||||
| Dividends to equity owners | - | - | - | (400 | ) | (400 | ) | ||||||||
| Total transactions with owners of the Company | (161,350 | ) | 35 | (435 | ) | (400 | ) | (800 | ) | ||||||
| Balance, October 31, 2012 | 11,441,921 | $ | 1,723 | $ | 9,588 | $ | 4,692 | $ | 16,003 | ||||||
| Balance, April 30, 2011 | 11,678,671 | $ | 1,467 | $ | 10,993 | $ | 3,486 | $ | 15,946 | ||||||
| Profit and comprehensive income for the period | - | - | - | 279 | 279 | ||||||||||
| Total comprehensive income for the period | - | - | - | 279 | 279 | ||||||||||
| Repurchase of common shares | (26,500 | ) | (3 | ) | (54 | ) | - | (57 | ) | ||||||
| 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 | 87,900 | 235 | (612 | ) | (349 | ) | (726 | ) | |||||||
| Balance, October 31, 2011 | 11,766,571 | $ | 1,702 | $ | 10,381 | $ | 3,416 | $ | 15,499 | ||||||
Contact Information:
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649