MONTREAL, QUEBEC--(Marketwired - Feb. 27, 2014) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, today announced its results for the third quarter of fiscal year 2014, ended January 31st, 2014. All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.
Third Quarter Highlights:
• Revenue increased by 14% to $11.8M in Q3, 2014, the highest in a decade, compared to $10.4M in Q3, 2013.
• Services revenue grew to $7.9M, a 24% increase from last year, and profit margin improved to 38% from 20% in Q3 2013. The growth and margin improvements are due primarily to increased productivity from the professional services organization.
• Annualized recurring revenue increased to $17.0M at the end of Q3, 2014, compared to $15.4M at the end of Q3, 2013, a 11% increase and represents 38% of the last twelve months trailing revenue.
• Recorded $4.1M of new total contract value bookings in the quarter, including two new customers.
• New go lives of supply chain execution solutions occurred at 12 customer sites, most notably one in health systems and five major WMS sites, one of which is a heavy equipment dealer in South America.
• Partnered with GENCO to expand the reach of its healthcare offerings through third parties.
• EBITDA increased to $1.1M for Q3, 2014 compared to a loss of $28K for Q3, 2013.
• Profit from operations increased to $589K in Q3, 2014 compared to a loss of $464K in Q3, 2013.
• Net profit was $467K or $0.04 per share for Q3, 2014 compared to a net loss of $543K or $0.05 loss per share for Q3, 2013.
• Backlog was $27.4M at the end of Q3, 2014 compared to $25.1M at the end of Q3, 2013.
• Cash and cash equivalents amounted to $5.9M at the end of Q3, 2014 compared to $5.3M at the end of Q4, 2013.
TECSYS also announced that the Company's Board of Directors declared a semi-annual dividend of $0.04 per share, to be paid on March 28th, 2014 to shareholders of record on March 14th, 2014, an increase of 14%.
"We continued to drive top line revenue growth during Q3, led by the contribution from our services business. The investments we made in this group over the past 18 months are paying off with increased productivity and record revenue from the team," said Peter Brereton, President and CEO of TECSYS Inc. "Our sales pipeline is growing and we are seeing good traction across all verticals, particularly from healthcare. Specifically, we believe our leadership position in the healthcare market provides opportunities to expand our client base and drive new product offerings with our proprietary software."
Highlights of the First Nine Months:
- Revenue increased 4% to $34.1M for the first nine months of fiscal 2014 compared to $32.6M for the same period in last year.
- Profit from operations was $1.5M for the first nine months of fiscal 2014 compared to $1.0M for the same period last year, a 49% increase.
- EBITDA was $2.8M for the first nine months of fiscal 2014 compared to $2.2M compared to the same period last year.
- Net profit was $1.2M or $0.10 per share for the first nine months of fiscal 2014 compared to $0.7M or $0.06 per share for the same period last year.
Third Quarter 2014 Results Conference Call
| Date: February 27, 2014 |
| Time: 4:30 pm EST |
| Phone number: 800-747-0367 or 416-981-9001 |
| The call can be replayed by calling 800-558-5253 (access code: 21709363) or 416-626-4100 (access code: 21709363). |
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, 2013. 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. 2014. 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, 2014 and April 30, 2013 |
| (in thousands of Canadian dollars) |
| January 31, | April 30, | ||||
| 2014 | 2013 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 5,896 | $ | 5,348 | |
| Accounts receivable | 9,306 | 7,959 | |||
| Work in progress | 338 | 1,291 | |||
| Other accounts receivable | 145 | 132 | |||
| Tax credits | 4,684 | 4,675 | |||
| Inventory | 452 | 545 | |||
| Prepaid expenses | 1,154 | 1,153 | |||
| Total current assets | 21,975 | 21,103 | |||
| Non-current assets | |||||
| Restricted cash equivalents and other investments | 80 | 120 | |||
| Non-current receivables | - | 39 | |||
| Tax credits | 1,444 | 1,219 | |||
| Property and equipment | 2,736 | 2,928 | |||
| Deferred development costs | 3,894 | 3,317 | |||
| Other intangible assets | 545 | 544 | |||
| Goodwill | 2,239 | 2,239 | |||
| Deferred tax assets | 569 | 710 | |||
| Total non-current assets | 11,507 | 11,116 | |||
| Total assets | $ | 33,482 | $ | 32,219 | |
| Liabilities | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | $ | 5,710 | $ | 4,997 | |
| Loans payable | 58 | 70 | |||
| Term loan | 1,000 | 1,000 | |||
| Deferred revenue | 7,581 | 7,161 | |||
| Total current liabilities | 14,349 | 13,228 | |||
| Non-current liabilities | |||||
| Term loan | 2,750 | 3,500 | |||
| Other non-current liabilities | 271 | 225 | |||
| Total non-current liabilities | 3,021 | 3,725 | |||
| Total liabilities | 17,370 | 16,953 | |||
| Equity | |||||
| Share capital | 1,852 | 1,748 | |||
| Contributed surplus | 9,577 | 9,588 | |||
| Retained earnings | 4,683 | 3,930 | |||
| Total equity attributable to the owners of the Company | 16,112 | 15,266 | |||
| Total liabilities and equity | $ | 33,482 | $ | 32,219 | |
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Comprehensive Income |
| (Unaudited) |
| Three and nine-month periods ended January 31, 2014 and 2013 |
| (in thousands of Canadian dollars, except per share data) |
| Three Months Ended January 31, 2014 |
Three Months Ended January 31, 2013 |
Nine Months Ended January 31, 2014 |
Nine Months Ended January 31, 2013 |
|||||||
| Revenue: | ||||||||||
| Software products | $ | 1,359 | $ | 1,969 | $ | 5,332 | $ | 7,321 | ||
| Third-party hardware and software products | 2,140 | 1,746 | 5,327 | 4,432 | ||||||
| Services | 7,921 | 6,413 | 22,369 | 20,082 | ||||||
| Reimbursable expenses | 429 | 256 | 1,079 | 807 | ||||||
| Total revenue | 11,849 | 10,384 | 34,107 | 32,642 | ||||||
| Cost of revenue: | ||||||||||
| Products | 1,466 | 1,190 | 3,761 | 3,217 | ||||||
| Services | 4,943 | 5,121 | 14,573 | 14,840 | ||||||
| Reimbursable expenses | 429 | 256 | 1,079 | 807 | ||||||
| Total cost of revenue | 6,838 | 6,567 | 19,413 | 18,864 | ||||||
| Gross profit | 5,011 | 3,817 | 14,694 | 13,778 | ||||||
| Operating expenses: | ||||||||||
| Sales and marketing | 2,100 | 2,073 | 6,349 | 5,709 | ||||||
| General and administration | 1,006 | 870 | 2,970 | 2,972 | ||||||
| Research and development, net of tax credits | 1,316 | 1,338 | 3,867 | 4,085 | ||||||
| Total operating expenses | 4,422 | 4,281 | 13,186 | 12,766 | ||||||
| Profit (loss) from operations | 589 | (464 | ) | 1,508 | 1,012 | |||||
| Net finance costs | 47 | 92 | 203 | 303 | ||||||
| Profit (loss) before income taxes | 542 | (556 | ) | 1,305 | 709 | |||||
| Income taxes | 75 | (13 | ) | 150 | 5 | |||||
| Profit (loss) attributable to the owners of the Companyand comprehensive income (loss) for the period | $ |
467 |
$ |
(543 |
) | $ |
1,155 |
$ |
704 |
|
| Basic and diluted earnings (loss) per common share | $ | 0.04 | $ | (0.05 | ) | $ | 0.10 | $ | 0.06 | |
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Cash Flows |
| (Unaudited) |
| Nine-month periods ended January 31, 2014 and 2013 |
| (in thousands of Canadian dollars) |
| Nine Months | Nine Months | ||||||
| Ended | Ended | ||||||
| January 31, | January 31, | ||||||
| 2014 | 2013 | ||||||
| Cash flows from (used in) operating activities: | |||||||
| Profit for the period | $ | 1,155 | $ | 704 | |||
| Adjustments for: | |||||||
| Depreciation of property and equipment | 552 | 723 | |||||
| Depreciation of deferred development costs | 741 | 646 | |||||
| Depreciation of other intangible assets | 124 | 117 | |||||
| Net finance costs | 203 | 303 | |||||
| Realized foreign exchange gains, unrealized foreign exchange losses, and other | 423 | 148 | |||||
| Federal non-refundable research and development tax credits | (225 | ) | (225 | ) | |||
| Income taxes | 150 | 4 | |||||
| Operating activities excluding changes in non-cash workingcapital items related to operations | 3,123 |
2,420 |
|||||
| Accounts receivable | (1,347 | ) | 1,705 | ||||
| Work in progress | 953 | (202 | ) | ||||
| Other accounts receivable | (29 | ) | (57 | ) | |||
| Tax credits | (9 | ) | (2,015 | ) | |||
| Inventory | 93 | 127 | |||||
| Prepaid expenses | (1 | ) | (111 | ) | |||
| Accounts payable and accrued liabilities | 299 | (1,237 | ) | ||||
| Deferred revenue | 420 | (105 | ) | ||||
| Changes in non-cash working capital items related to operations | 379 | (1,895 | ) | ||||
| Net cash from operating activities | 3,502 | 525 | |||||
| Cash flows (used in) from financing activities: | |||||||
| Repayment of loans | (12 | ) | (11 | ) | |||
| Term loan | - | 5,000 | |||||
| Repayment of term loan | (750 | ) | (250 | ) | |||
| Issuance of common shares | 40 | 57 | |||||
| Purchase of common shares for cancellation and related fees | (11 | ) | (462 | ) | |||
| Purchase of share options for cancellation | (15 | ) | (243 | ) | |||
| Payment of dividends | (402 | ) | (400 | ) | |||
| Interest paid | (127 | ) | (55 | ) | |||
| Net cash (used in) from financing activities | (1,277 | ) | 3,636 | ||||
| Cash flows (used in) from investing activities: | |||||||
| Short-term and other investments and restricted cash equivalentsand other investments | 40 |
(302 |
) |
||||
| Interest received | 31 | 32 | |||||
| Acquisitions of property and equipment | (360 | ) | (649 | ) | |||
| Acquisitions of other intangible assets | (125 | ) | (166 | ) | |||
| Deferred development costs | (1,318 | ) | (1,125 | ) | |||
| Current and non-current receivables from TECSYS Latin America Inc. | 55 | 46 | |||||
| Net cash used in investing activities | (1,677 | ) | (2,164 | ) | |||
| Net increase in cash and cash equivalents during the period | 548 | 1,997 | |||||
| Cash and cash equivalents - beginning of period | 5,348 | 5,217 | |||||
| Cash and cash equivalents - end of period | $ | 5,896 | $ | 7,214 | |||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Changes in Equity |
| (Unaudited) |
| Nine-month periods ended January 31, 2014 and 2013 |
| (in thousands of Canadian dollars, except number of shares) |
| Share capital | Contributed | Retained | Total | |||||||||||||
| Number | Amount | surplus | earnings | |||||||||||||
| Balance, April 30, 2013 | 11,449,421 | $ | 1,748 | $ | 9,588 | $ | 3,930 | $ | 15,266 | |||||||
| Profit and comprehensive income for the period | - | - | - | 1,155 | 1,155 | |||||||||||
| Total comprehensive income for the period | - | - | - | 1,155 | 1,155 | |||||||||||
| Normal course issuer bid fees for repurchase of common shares | - | - | (11 | ) | - | (11 | ) | |||||||||
| Share options exercised | 25,000 | 40 | - | - | 40 | |||||||||||
| Fair value associated with options exercised | - | 64 | - | - | 64 | |||||||||||
| Dividends to equity owners | - | - | - | (402 | ) | (402 | ) | |||||||||
| Total transactions with owners of the Company | 25,000 | 104 | (11 | ) | (402 | ) | (309 | ) | ||||||||
| Balance, January 31, 2014 | 11,474,421 | $ | 1,852 | $ | 9,577 | $ | 4,683 | $ | 16,112 | |||||||
| 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 | |||||||
Contact Information:
Investor relations: jbinckly@tmxequicom.com;
416-815-0700 ext. 228
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649