MONTREAL, QUEBEC--(Marketwire - July 6, 2012) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the fourth quarter and 2012 fiscal year ended April 30th, 2012. The results of the 2012 fiscal year are audited. All dollar amounts are expressed in Canadian currency and reported in accordance with the International Financial Reporting Standards (IFRS).
Highlights of the Fourth Quarter include:
- Revenue increased by 27% to $10.8M in Q4 of fiscal 2012 compared to $8.5M in Q4 of 2011. Product revenue increased by 79% to $4.5M compared to $2.5M in Q4, 2011 with proprietary License revenue increasing by 130% to $3.0M compared to $1.3M in the same period of 2011. Services revenue increased by 6% to $6.1M compared to $5.7M in the same period of fiscal 2011.
- Profit from operations in Q4, 2012 was $735K compared to $674K in the same quarter of last year.
- EBITDA was $1,273K in Q4, 2012 compared to $1,061K in Q4 of last year.
- Net profit for Q4, 2012 was $473K or $0.04 per share compared to $491K or $0.04 per share in Q4, 2011.
- At the end of Q4, 2012, annualized recurring revenue reached $14.8M, or 37% of 2012 revenue compared to $14.0M, or 39% of 2011 revenue. Recurring revenue is principally made-up of annual software maintenance contracts.
- Backlog increased to $26.3M at the end of Q4, 2012, compared to $24.6M at the end of Q3, 2012 and $21M at the end of Q4, 2011.
- During the quarter, the Company invested approximately $1.0M to increase its services capacity to assist in the delivery of the backlog.
- During the quarter, the Company generated $1.0M cash from operations compared to $1.4M for the corresponding quarter of fiscal 2011.
- Cash and cash equivalents, as well as short-term and other investments at the end of Q4, 2012 amounted to $5.2M compared to $7.3M at the end of Q4, 2011.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "The combination of our new supply chain software products and the resurgence of the supply chain management market has been evident, we have felt the impact during this quarter more than any other period in the last two to three years. We won the business of nine new customers, several of these being complex distribution accounts, including one of the largest electronic components distributors in the world and three heavy equipment service parts distributors. Our customer base also invested heavily in our solutions, particularly in the healthcare industry, which contributed the lion's share of base account bookings in Q4 of 2012. As our backlog continued its consistent growth; a 25% increase in the past year, we invested in our infrastructure, hiring over 50 people by the end of the fiscal year to continue to be able to deliver on our services' bookings and respond to the needs of our growing customer base."
New customers won during the quarter included:
- Two Heavy Equipment Dealers; one in the U.S. and one in South America
- The Canadian operations of a global heavy equipment manufacturer and distributor
- Canada's largest distributor of value priced greeting cards
- One of the largest distributors of electronic components
- Four industrial distributors; two in Canada and two in the U.S.
Furthermore, the Company signed a significant number of new agreements with existing customers across its business units with healthcare representing 50% of total bookings during the quarter. The Company also completed the deployment of its solutions for the go-lives of twenty three customer sites across all of the Company's vertical markets during the quarter.
Highlights of the 2012 Fiscal Year include:
- Revenue for fiscal 2012 increased by 11% to $39.5M compared to $35.7M for last fiscal year. Product revenue increased by 17% to $14.6M in 2012 compared to $12.5M in 2011, with the Company's proprietary License revenue increasing by 25% to $7.3M in 2012 compared to $5.8M in last fiscal year. Services revenue increased by 8% to $24.1M in 2012 compared to $22.3M in last year.
- Profit from operations for the year was $1.5M which was the same as the last fiscal year.
- EBITDA was $3.1M in 2012 compared to $3.2M in fiscal 2011.
- Net profit for the year was $1.1M or $0.09 per share compared to $1.6M or $0.13 for 2011.
| TECSYS' Q4 FY2012 Earnings Conference Call: |
| Date: July 6, 2012 |
| Time: 4:30 pm EDT |
| Phone number: 800-745-9476 or 416-981-9006 |
The call can be replayed by calling 800-558-5253 (access code: 21598658) or 416-626-4100 (access code: 21598658.
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 about 500 mid-size and Fortune 1000 corporations in healthcare, 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. 2012. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.
| TECSYS Inc. |
| Consolidated Statements of Financial Position |
| As at April 30, 2012, April 30, 2011 and May 1, 2010 |
| (in thousands of Canadian dollars) |
| April 30, | April 30, | May 1, | |||||
| 2012 | 2011 | 2010 | |||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 5,217 | $ | 6,404 | $ | 7,256 | |
| Short-term and other investments | - | 850 | 850 | ||||
| Asset-backed commercial paper | - | 3,584 | - | ||||
| Accounts receivable | 8,207 | 6,860 | 7,346 | ||||
| Work in progress | 645 | 45 | 66 | ||||
| Other accounts receivable and derivatives | 190 | 303 | 425 | ||||
| Tax credits | 2,070 | 1,737 | 1,914 | ||||
| Inventory | 696 | 180 | 171 | ||||
| Prepaid expenses | 1,177 | 850 | 879 | ||||
| Total current assets | 18,202 | 20,813 | 18,907 | ||||
| Non-current assets | |||||||
| Restricted cash equivalents and other investments | 160 | 200 | 200 | ||||
| Asset-backed commercial paper | - | - | 3,514 | ||||
| Non-current receivables | 99 | 23 | 48 | ||||
| Tax credits | 1,076 | 1,123 | 930 | ||||
| Investment in equity-accounted associate | - | 220 | 211 | ||||
| Property and equipment | 2,911 | 2,268 | 2,395 | ||||
| Deferred development costs | 2,514 | 2,448 | 1,991 | ||||
| Other intangible assets | 362 | 288 | 364 | ||||
| Goodwill | 2,239 | 2,239 | 2,239 | ||||
| Deferred tax assets | 587 | 609 | 595 | ||||
| Total non-current assets | 9,948 | 9,418 | 12,487 | ||||
| Total assets | $ | 28,150 | $ | 30,231 | $ | 31,394 | |
| Liabilities | |||||||
| Current liabilities | |||||||
| Bank advances | $ | - | $ | 3,720 | $ | 3,951 | |
| Accounts payable and accrued liabilities | 5,844 | 4,114 | 4,890 | ||||
| Loans payable | 85 | 107 | 249 | ||||
| Provisions | - | - | 415 | ||||
| Deferred revenue | 6,665 | 6,344 | 5,827 | ||||
| Total current liabilities | 12,594 | 14,285 | 15,332 | ||||
| Equity | |||||||
| Share capital | 1,688 | 1,467 | 1,386 | ||||
| Contributed surplus | 10,023 | 10,993 | 12,103 | ||||
| Retained earnings | 3,845 | 3,486 | 2,573 | ||||
| Total equity attributable to the owners of the Company | 15,556 | 15,946 | 16,062 | ||||
| Total liabilities and equity | $ | 28,150 | $ | 30,231 | $ | 31,394 | |
| TECSYS Inc. |
| Consolidated Statements of Comprehensive Income |
| Three-month periods and years ended April 30, 2012 and 2011 |
| (in thousands of Canadian dollars, except per share data) |
| Three Months Ended April 30, 2012 |
Three Months Ended April 30, 2011 |
Year Ended April 30, 2012 |
Year Ended April 30, 2011 |
||||||||||
| Revenue: | |||||||||||||
| Products | $ | 4,501 | $ | 2,516 | $ | 14,551 | $ | 12,459 | |||||
| Services | 6,057 | 5,732 | 24,078 | 22,287 | |||||||||
| Reimbursable expenses | 247 | 242 | 873 | 908 | |||||||||
| Total revenue | 10,805 | 8,490 | 39,502 | 35,654 | |||||||||
| Cost of revenue: | |||||||||||||
| Products | 1,084 | 717 | 4,944 | 4,792 | |||||||||
| Services | 4,565 | 3,568 | 16,234 | 14,278 | |||||||||
| Reimbursable expenses | 247 | 242 | 873 | 908 | |||||||||
| Total cost of revenue | 5,896 | 4,527 | 22,051 | 19,978 | |||||||||
| Gross profit | 4,909 | 3,963 | 17,451 | 15,676 | |||||||||
| Operating expenses: | |||||||||||||
| Sales and marketing | 2,110 | 1,543 | 7,004 | 6,180 | |||||||||
| General and administration | 972 | 891 | 4,015 | 3,619 | |||||||||
| Research and development, net of tax credits | 1,068 | 868 | 4,956 | 4,346 | |||||||||
| Other | 24 | (13 | ) | 21 | (13 | ) | |||||||
| Total operating expenses | 4,174 | 3,289 | 15,996 | 14,132 | |||||||||
| Profit from operations | 735 | 674 | 1,455 | 1,544 | |||||||||
| Finance income | 15 | 3 | 37 | 328 | |||||||||
| Finance costs | (14 | ) | (37 | ) | (157 | ) | (69 | ) | |||||
| Net finance income (costs) | 1 | (34 | ) | (120 | ) | 259 | |||||||
| Share of net profit (loss) of equity-accounted associate | - | 70 | (15 | ) | 9 | ||||||||
| Gain on sale of the investment in equity-accounted associate | 67 | - | 67 | - | |||||||||
| Profit before income taxes | 803 | 710 | 1,387 | 1,812 | |||||||||
| Income taxes | 330 | 219 | 330 | 242 | |||||||||
| Profit attributable to the owners of the Company and comprehensive income for the period | $ | 473 | $ | 491 | $ | 1,057 | $ | 1,570 | |||||
| Basic and diluted earnings per common share | $ | 0.04 | $ | 0.04 | $ | 0.09 | $ | 0.13 | |||||
| TECSYS Inc. |
| Consolidated Statements of Cash Flows |
| Three-month periods and years ended April 30, 2012 and 2011 |
| (in thousands of Canadian dollars) |
| Three Months Ended April 30, 2012 |
Three Months Ended April 30, 2011 |
Years Ended April 30, 2012 |
Years Ended April 30, 2011 |
||||||||||
| Cash flows from operating activities: | |||||||||||||
| Profit for the period | $ | 473 | $ | 491 | $ | 1,057 | $ | 1,570 | |||||
| Adjustments for: | |||||||||||||
| Depreciation of property and equipment | 232 | 146 | 789 | 621 | |||||||||
| Depreciation of deferred development costs | 218 | 166 | 789 | 590 | |||||||||
| Depreciation of other intangible assets | 33 | 32 | 119 | 139 | |||||||||
| Share-based compensation | - | 11 | 40 | 54 | |||||||||
| Net finance (income) costs | (1 | ) | 34 | 120 | (259 | ) | |||||||
| Realized foreign exchange (losses) gains and others | (78 | ) | (199 | ) | 32 | (170 | ) | ||||||
| Share of net (profit) loss of equity-accounted associate | - | (70 | ) | 15 | (9 | ) | |||||||
| Gain on sale of the investment in equity-accounted associate | (67 | ) | - | (67 | ) | - | |||||||
| Federal non-refundable research and development tax credits | (330 | ) | (300 | ) | (330 | ) | (300 | ) | |||||
| Income taxes | 330 | 211 | 330 | 211 | |||||||||
| Operating activities excluding changes in non-cash working capital items related to operations | 810 | 522 | 2,894 | 2,447 | |||||||||
| Accounts receivable | (133 | ) | 1,629 | (1,347 | ) | 486 | |||||||
| Work in progress | (209 | ) | 107 | (600 | ) | 21 | |||||||
| Other accounts receivable | 337 | (51 | ) | 65 | 204 | ||||||||
| Tax credits | 1,080 | (342 | ) | (270 | ) | 59 | |||||||
| Inventory | 101 | 18 | (516 | ) | (9 | ) | |||||||
| Prepaid expenses | 71 | 71 | (327 | ) | 29 | ||||||||
| Accounts payable and accrued liabilities | (1,119 | ) | (1,353 | ) | 1,421 | (375 | ) | ||||||
| Provisions | - | - | - | (415 | ) | ||||||||
| Deferred revenue | 57 | 773 | 321 | 517 | |||||||||
| Changes in non-cash working capital items related to operations | 185 | 852 | (1,253 | ) | 517 | ||||||||
| Net cash from operating activities | 995 | 1,374 | 1,641 | 2,964 | |||||||||
| Cash flows used in financing activities: | |||||||||||||
| Repayment of bank advances | - | (223 | ) | (3,720 | ) | (231 | ) | ||||||
| Repayment of loans | (3 | ) | - | (22 | ) | (142 | ) | ||||||
| Issuance of common shares | 5 | - | 195 | 104 | |||||||||
| Purchase of common shares for cancellation | (39 | ) | (311 | ) | (437 | ) | (1,187 | ) | |||||
| Purchase of share options for cancellation | (8 | ) | - | (347 | ) | - | |||||||
| Payment of dividends | (349 | ) | (352 | ) | (698 | ) | (657 | ) | |||||
| Interest paid | (2 | ) | (6 | ) | (16 | ) | (31 | ) | |||||
| Net cash used in financing activities | (396 | ) | (892 | ) | (5,045 | ) | (2,144 | ) | |||||
| Cash flows from (used in) investing activities: | |||||||||||||
| Short-term and other investments and restricted cash equivalents and other investments | 565 | - | 890 | - | |||||||||
| Interest received | 15 | 3 | 37 | 26 | |||||||||
| Proceeds from asset-backed commercial paper | - | 213 | 3,584 | 232 | |||||||||
| Acquisitions of property and equipment | (213 | ) | (95 | ) | (1,413 | ) | (895 | ) | |||||
| Proceeds on disposal of property and equipment | 1 | 13 | 4 | 13 | |||||||||
| Acquisitions of other intangible assets | (39 | ) | (39 | ) | (189 | ) | (63 | ) | |||||
| Deferred development costs | (310 | ) | (304 | ) | (855 | ) | (1,047 | ) | |||||
| Non-current receivables including the current portion from a related party | 3 | 9 | 23 | 62 | |||||||||
| Proceeds from disposition of the investment in equity-accounted associate | 136 | - | 136 | - | |||||||||
| Net cash from (used in) investing activities | 158 | (200 | ) | 2,217 | (1,672 | ) | |||||||
| Net increase (decrease) in cash and cash equivalents during the period | 757 | 282 | (1,187 | ) | (852 | ) | |||||||
| Cash and cash equivalents - beginning of period | 4,460 | 6,122 | 6,404 | 7,256 | |||||||||
| Cash and cash equivalents - end of period | $ | 5,217 | $ | 6,404 | $ | 5,217 | $ | 6,404 | |||||
| TECSYS Inc. |
| Consolidated Statements of Changes in Equity |
| Years ended April 30, 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 year | - | - | - | 1,057 | 1,057 | ||||||||||
| Total comprehensive income for the year | - | - | - | 1,057 | 1,057 | ||||||||||
| Repurchase of common shares | (192,800 | ) | (25 | ) | (412 | ) | - | (437 | ) | ||||||
| Repurchase of share options | - | - | (279 | ) | - | (279 | ) | ||||||||
| Share options exercised | 117,400 | 195 | - | - | 195 | ||||||||||
| Fair value associated with share options exercised | - | 51 | - | - | 51 | ||||||||||
| Fair value of share options transferred to liabilities | - | - | (319 | ) | - | (319 | ) | ||||||||
| Share-based compensation | - | - | 40 | - | 40 | ||||||||||
| Dividends to equity owners | - | - | - | (698 | ) | (698 | ) | ||||||||
| Total transactions with owners of the Company | (75,400 | ) | 221 | (970 | ) | (698 | ) | (1,447 | ) | ||||||
| Balance, April 30, 2012 | 11,603,271 | $ | 1,688 | $ | 10,023 | $ | 3,845 | $ | 15,556 | ||||||
| Balance, May 1, 2010 | 12,225,306 | $ | 1,386 | $ | 12,103 | $ | 2,573 | $ | 16,062 | ||||||
| Profit and comprehensive income for the year | - | - | - | 1,570 | 1,570 | ||||||||||
| Total comprehensive income for the year | - | - | - | 1,570 | 1,570 | ||||||||||
| Repurchase of common shares | (620,353 | ) | (70 | ) | (1,117 | ) | - | (1,187 | ) | ||||||
| Share options exercised | 73,718 | 104 | - | - | 104 | ||||||||||
| Fair value associated with share options exercised | - | 47 | (47 | ) | - | - | |||||||||
| Share-based compensation | - | - | 54 | - | 54 | ||||||||||
| Dividends to equity owners | - | - | - | (657 | ) | (657 | ) | ||||||||
| Total transactions with owners of the Company | (546,635 | ) | 81 | (1,110 | ) | (657 | ) | (1,686 | ) | ||||||
| Balance, April 30, 2011 | 11,678,671 | $ | 1,467 | $ | 10,993 | $ | 3,486 | $ | 15,946 | ||||||
Contact Information:
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649