MONTREAL, QUEBEC--(Marketwired - Sept. 11, 2014) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, today announced its results for the first quarter of fiscal year 2015, ended July 31, 2014.
All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.
First Quarter Highlights:
- Revenue grew 23% to $13.0M in Q1 2015 compared to $10.6M in Q1 2014.
- EBITDA increased by 73% to $1.0M in Q1 2015, compared to $579 K in Q1 2014. EBITDA in Q1 2015 includes a one-time acquisition expense of $134K related to Logi-D.
- Profit from operations increased to $474K in Q1 2015, compared to $171K in Q1 2014. Before acquisition related expenses and amortizations, profit from operations increased to $650K compared to $171K in Q1, 2014.
- Net profit increased to $343K or $0.03 per share compared to $83K or $0.01 per share in Q1 2014. Before acquisition related expenses and amortizations, net profit increased to $519K or $0.04 compared to $83K in Q1, 2014.
- Services revenue improved by 23% to $8.7M while services profit margin expanded to 41% from 33% in Q1 2014.
- Recurring revenue on an annualized basis grew to $18.6M, a 20% jump compared to the end of Q1 2014, representing 38% of the last twelve months trailing revenue.
- Total contract bookings in the quarter totaled $9.7M, including $4.7M in total contract value from six new accounts, including three new hospital networks.
- Go-lives at 17 customers' sites, most notably: one hospital network, one service parts provider and five new hospitals with Logi-D products.
- Backlog was $33.6M at the end of Q1 2015 compared to $26.3M at the end of Q1 2014.
- Cash and cash equivalents totaled $5.3M at the end of Q1 2015 compared to $8.8M at the end of Q4 2014.
- On May 31, 2014, the Company acquired 100% of the issued and outstanding shares of Logi-D Holding Inc, a leading provider of point-of-use technology for supply chain automation servicing hospitals and healthcare organizations.
TECSYS also announced that the Company's Board of Directors has declared a quarterly dividend of $0.0225 per share, to be paid on October 10, 2014 to shareholders of record at the close of business on September 26, 2014.
"This quarter we further extended our leadership in the hospital market, signing three notable new health systems and highlighting the industry's growing demand for our products," said Peter Brereton, President and CEO of TECSYS Inc. "Along with the momentum we have established in the hospital sector, we also booked an additional $4.0M of business in the broader supply chain market. Our services team continues to execute with increased efficiency, reflecting the improvements we made to their organization and capacity over the last two years. With the acquisition of Logi-D completed, we are now working on integrating their products and capitalizing on the new opportunities available to us to accelerate our growth."
First Quarter 2015 Results Conference Call
Date: September 11th, 2014
Time: 4:30 pm EST
Phone number: 800-728-2056 or 416-981-9030
The call can be replayed by calling 800-558-5253 (access code: 21733033) or 416-626-4100 (access code: 21733033).
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, 2014. 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 July 31, 2014 and April 30, 2014 | ||||||
(in thousands of Canadian dollars) | ||||||
July 31, | April 30, | |||||
2014 | 2014 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 5,317 | $ | 8,839 | ||
Accounts receivable | 10,214 | 9,076 | ||||
Work in progress | 307 | 524 | ||||
Other accounts receivable | 339 | 46 | ||||
Tax credits | 3,473 | 2,704 | ||||
Inventory | 708 | 293 | ||||
Prepaid expenses | 1,289 | 1,037 | ||||
Total current assets | 21,647 | 22,519 | ||||
Non-current assets | ||||||
Restricted cash equivalents | 40 | 80 | ||||
Tax credits | 1,425 | 1,350 | ||||
Property and equipment | 2,684 | 2,627 | ||||
Deferred development costs | 4,189 | 4,088 | ||||
Other intangible assets | 2,186 | 508 | ||||
Goodwill | 3,594 | 2,239 | ||||
Deferred tax assets | 639 | 714 | ||||
Total non-current assets | 14,757 | 11,606 | ||||
Total assets | $ | 36,404 | $ | 34,125 | ||
Liabilities | ||||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | $ | 6,209 | $ | 5,406 | ||
Current portion of long-term debt | 1,090 | 1,000 | ||||
Deferred revenue | 9,588 | 8,326 | ||||
Total current liabilities | 16,887 | 14,732 | ||||
Non-current liabilities | ||||||
Long-term debt | 2,451 | 2,500 | ||||
Other non-current liabilities | 357 | 299 | ||||
Total non-current liabilities | 2,808 | 2,799 | ||||
Total liabilities | 19,695 | 17,531 | ||||
Equity | ||||||
Share capital | 2,253 | 2,153 | ||||
Contributed surplus | 9,577 | 9,577 | ||||
Retained earnings | 4,947 | 4,864 | ||||
Accumulated other comprehensive loss | (68 | ) | - | |||
Total equity attributable to the owners of the Company | 16,709 | 16,594 | ||||
Total liabilities and equity | $ | 36,404 | $ | 34,125 |
TECSYS Inc. | ||||||
Condensed Interim Consolidated Statements of Income and Comprehensive Income | ||||||
(Unaudited) | ||||||
Three-month periods ended July 31, 2014 and 2013 | ||||||
(in thousands of Canadian dollars, except per share data) | ||||||
Three Months | Three Months | |||||
Ended | Ended | |||||
July 31, | July 31, | |||||
2014 | 2013 | |||||
Revenue: | ||||||
Proprietary products | $ | 2,079 | $ | 1,466 | ||
Third-party hardware and software products | 1,778 | 1,754 | ||||
Services | 8,743 | 7,103 | ||||
Reimbursable expenses | 412 | 279 | ||||
Total revenue | 13,012 | 10,602 | ||||
Cost of revenue: | ||||||
Products | 1,329 | 1,259 | ||||
Services | 5,185 | 4,751 | ||||
Reimbursable expenses | 412 | 279 | ||||
Total cost of revenue | 6,926 | 6,289 | ||||
Gross profit | 6,086 | 4,313 | ||||
Operating expenses: | ||||||
Sales and marketing | 2,611 | 1,943 | ||||
General and administration | 1,427 | 998 | ||||
Research and development, net of tax credits | 1,574 | 1,201 | ||||
Total operating expenses | 5,612 | 4,142 | ||||
Profit from operations | 474 | 171 | ||||
Net finance costs | 56 | 88 | ||||
Profit before income taxes | 418 | 83 | ||||
Income taxes | 75 | - | ||||
Profit attributable to the owners of the Company | $ | 343 | $ | 83 | ||
Other comprehensive loss: | ||||||
Effective portion of changes in fair value on designated revenue hedges | (68 | ) | - | |||
Comprehensive income attributable to the owners of the Company | $ | 275 | $ | 83 | ||
Basic and diluted earnings per common share | $ | 0.03 | $ | 0.01 |
TECSYS Inc. | |||||||
Condensed Interim Consolidated Statements of Cash Flows | |||||||
(Unaudited) | |||||||
Three-month periods ended July 31, 2014 and 2013 | |||||||
(in thousands of Canadian dollars) | |||||||
Three Months | Three Months | ||||||
Ended | Ended | ||||||
July 31, | July 31, | ||||||
2014 | 2013 | ||||||
Cash flows from (used in) operating activities: | |||||||
Profit for the period | $ | 343 | $ | 83 | |||
Adjustments for: | |||||||
Depreciation of property and equipment | 183 | 183 | |||||
Depreciation of deferred development costs | 292 | 238 | |||||
Depreciation of other intangible assets | 82 | 48 | |||||
Net finance costs | 56 | 88 | |||||
Realized foreign exchange losses, unrealized foreign exchange gains, and other | (108 | ) | (18 | ) | |||
Federal non-refundable research and development tax credits | (75 | ) | (75 | ) | |||
Income taxes | 75 | - | |||||
Operating activities excluding changes in non-cash working capital items related to operations | 848 | 547 | |||||
Accounts receivable | (326 | ) | 420 | ||||
Work in progress | 621 | 262 | |||||
Other accounts receivable | (269 | ) | (123 | ) | |||
Tax credits | (559 | ) | 1,205 | ||||
Inventory | 53 | 78 | |||||
Prepaid expenses | (230 | ) | (68 | ) | |||
Accounts payable and accrued liabilities | (577 | ) | (283 | ) | |||
Deferred revenue | 725 | 253 | |||||
Changes in non-cash working capital items related to operations | (562 | ) | 1,744 | ||||
Net cash from operating activities | 286 | 2,291 | |||||
Cash flows (used in) from financing activities: | |||||||
Repayment of bank loans | (140 | ) | - | ||||
Repayment of loan to related party | - | (5 | ) | ||||
Repayment of long-term debt | (262 | ) | (250 | ) | |||
Issuance of common shares | - | 40 | |||||
Purchase of share options for cancellation | (7 | ) | (2 | ) | |||
Interest paid | (37 | ) | (43 | ) | |||
Net cash used in financing activities | (446 | ) | (260 | ) | |||
Cash flows (used in) from investing activities: | |||||||
Restricted cash equivalents | 40 | 40 | |||||
Interest received | 9 | 16 | |||||
Acquisitions of property and equipment | (46 | ) | (33 | ) | |||
Acquisitions of other intangible assets | (24 | ) | (109 | ) | |||
Deferred development costs | (393 | ) | (523 | ) | |||
Current and non-current receivables from TECSYS Latin America Inc. | 1 | 14 | |||||
Business combination, net of cash and cash equivalents acquired | (2,949 | ) | - | ||||
Net cash used in investing activities | (3,362 | ) | (595 | ) | |||
Net (decrease) increase in cash and cash equivalents during the period | (3,522 | ) | 1,436 | ||||
Cash and cash equivalents - beginning of period | 8,839 | 5,348 | |||||
Cash and cash equivalents - end of period | $ | 5,317 | $ | 6,784 |
TECSYS Inc. | ||||||||
Condensed Interim Consolidated Statements of Changes in Equity | ||||||||
(Unaudited) | ||||||||
Three-month periods ended July 31, 2014 and 2013 | ||||||||
(in thousands of Canadian dollars, except number of shares) | ||||||||
Share capital | ||||||||
Number |
Amount |
Contributed surplus |
Accumulated other comprehensive loss |
Retained earnings |
Total |
|||
Balance, April 30, 2014 | 11,524,421 | $2,153 | $9,577 | $- | $4,864 | $16,594 | ||
Profit for the period | - | - | - | - | 343 | 343 | ||
Other comprehensive loss for the period: | ||||||||
Effective portion of changes in fair value on designated revenue hedges | - | - | - | (68) | - | (68) | ||
Total comprehensive income for the period | - | - | - | (68) | 343 | 275 | ||
Common shares issued related to purchase of Logi D Holding Inc. | 15,625 | 100 | - | - | - | 100 | ||
Dividends to equity owners | - | - | - | - | (260) | (260) | ||
Total transactions with owners of the Company | 15,625 | 100 | - | - | (260) | (160) | ||
Balance, July 31, 2014 | 11,540,046 | $2,253 | $9,577 | $(68) | $4,947 | $16,709 | ||
Balance, April 30, 2013 | 11,449,421 | $1,748 | $9,588 | $- | $3,930 | $15,266 | ||
Profit and comprehensive income for the period | - | - | - | - | 83 | 83 | ||
Total comprehensive income for the period | - | - | - | - | 83 | 83 | ||
Share options exercised | 25,000 | 40 | - | - | - | 40 | ||
Fair value associated with options exercised | - | 64 | - | - | - | 64 | ||
Total transactions with owners of the Company | 25,000 | 104 | - | - | - | 104 | ||
Balance, July 31, 2013 | 11,474,421 | $1,852 | $9,588 | $- | $4,013 | $15,453 |
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