TECSYS Inc.
TSX : TCS

TECSYS Inc.

July 09, 2013 14:41 ET

TECSYS Reports Record Bookings in Q4

MONTREAL, QUEBEC--(Marketwired - July 9, 2013) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the fourth quarter and 2013 fiscal year ended April 30th, 2013. The results of the 2013 fiscal year are audited. All dollar amounts are expressed in Canadian currency and reported in accordance with the International Financial Reporting Standards (IFRS).

Overall highlights for the Fourth Quarter:

  • Total bookings in the quarter were the highest in the company's history;
  • Won the business of ten new customers; most notably two major health systems, as well as a leading manufacturer and distributor of medical products;
  • Revenue grew by 3% and services revenue increased by 22%;
  • The leading industry analyst's firm once again reaffirmed the Company's "visionary" position in the warehouse management space;
  • Existing clients from across its business units continued to invest in products and services - forty-five new agreements were concluded in the quarter;
  • Deployed its supply chain execution solutions at thirteen customers in Canada, the United States and the United Kingdom.

Financial Highlights for the Fourth Quarter:

  • Revenue increased by 3% to $11.1M in Q4, 2013 compared to $10.8M in Q4, 2012.
  • EBITDA for the quarter was $748K compared to $1,273K in Q4, 2012.
  • Profit from operations for Q4, 2013 was $256K compared to $735K in Q4, 2012.
  • Net profit for Q4, 2013 was $181K or $0.02 per share compared to $473K or $0.04 per share for Q4, 2012.
  • Backlog increased to $27.2M at the end of Q4, 2013 compared to $26.3M at the end of Q4, 2012.
  • At the end of Q4, 2013, annualized recurring revenue in Canadian currency increased by 4% to $15.4M, compared to $14.8M at the end of Q4, 2012. Annualized recurring revenue at the end of Q4, 2013 represented 35% of the Company's revenue for the last 12 months.
  • Cash, cash equivalents and other short-term investments amounted to $5.3M at the end of Q4, 2013, compared to $5.2M at the end of Q4, 2012.

Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "This was an investment year, as we increased gross R&D by 20%, while also investing heavily in our services organization with average headcount in services up by 31%. It is beginning to pay off, with license fees up 27% for the year, and services revenue beginning to rise significantly toward the end of the year, up 22% in Q4. During the quarter, we won the business of ten new customers including two major health systems, reinforcing our continued acceptance and leadership in this vertical. We also saw significant reinvestment in our products and services by forty-five existing customers. New contract bookings in the quarter were the highest in our history."

Highlights of the 2013 Fiscal Year include:

  • Revenue for fiscal 2013 increased by 11% to $43.8M compared to $39.5M for last fiscal year. License revenue increased by 27% to $9.3M in 2013 compared to $7.3M in 2012. Services revenue increased by 14% to $27.5M in 2013 compared to $24.1M in 2012.
  • Profit from operations for fiscal year 2013 was $1,268K compared to $1,455K for last fiscal year.
  • EBITDA was $2,966K in 2013 compared to $3,075K in fiscal year 2012.
  • Net profit for 2013 was $885K or $0.08 per share compared to $1,057K or $0.09 per share for 2012.
  • Net profit, adjusted for the impact of option expense due to the rising share price, was roughly flat at $1,127K in fiscal 2013 versus $1,124K in fiscal 2012, or $0.10 per share for both periods.

TECSYS' Fourth Quarter 2013 Earnings Conference Call:

Subject: Q4 and FY2013 Results Conference Call
Date: July 9, 2013
Time: 4:30 pm EDT
Phone number: 800-734-8583 or 416-981-9023
The call can be replayed by calling 800-558-5253 (access code: 21662429) or 416-626-4100 (access code: 21662429).

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.
Consolidated Statements of Financial Position
As at April 30, 2013 and April 30, 2012
(in thousands of Canadian dollars)
April 30, April 30,
2013 2012
Assets
Current assets
Cash and cash equivalents $5,348$5,217
Accounts receivable7,959 8,207
Work in progress1,291 645
Other accounts receivable and derivatives132 190
Tax credits 4,675 2,070
Inventory 545 696
Prepaid expenses1,153 1,177
Total current assets21,103 18,202
Non-current assets
Restricted cash equivalents and other investments120 160
Non-current receivables39 99
Tax credits 1,219 1,076
Property and equipment2,928 2,911
Deferred development costs3,317 2,514
Other intangible assets544 362
Goodwill 2,239 2,239
Deferred tax assets710 587
Total non-current assets11,116 9,948
Total assets$32,219$28,150
Liabilities
Current liabilities
Accounts payable and accrued liabilities $4,997$5,685
Loans payable 70 85
Term loan 1,000 -
Deferred revenue7,161 6,665
Total current liabilities13,228 12,435
Term loan 3,500 -
Other non-current liabilities225 159
Total non-current liabilities3,725 159
Total liabilities 16,953 12,594
Equity
Share capital 1,748 1,688
Contributed surplus9,588 10,023
Retained earnings3,930 3,845
Total equity attributable to the owners of the Company15,266 15,556
Total liabilities and equity$32,219$28,150
TECSYS Inc.
Consolidated Statements of Comprehensive Income
Three-month periods and years ended April 30, 2013 and 2012
(in thousands of Canadian dollars, except per share data)
Three Months Three Months Year Year
Ended Ended Ended Ended
April 30, April 30, April 30, April 30,
2013 2012 2013 2012
(unaudited) (unaudited)
Revenue:
Software products$1,986 $2,999 $9,307 $7,307
Third-party hardware and software products 1,421 1,502 5,853 7,244
Services 7,376 6,057 27,458 24,078
Reimbursable expenses 334 247 1,141 873
Total revenue 11,117 10,805 43,759 39,502
Cost of revenue:
Products 1,046 1,084 4,263 4,944
Services 5,232 4,565 20,072 16,234
Reimbursable expenses 334 247 1,141 873
Total cost of revenue 6,612 5,896 25,476 22,051
Gross profit 4,505 4,909 18,283 17,451
Operating expenses:
Sales and marketing 2,087 2,110 7,796 7,004
General and administration 909 972 3,881 4,015
Research and development, net of tax credits 1,253 1,068 5,338 4,956
Other - 24 - 21
Total operating expenses 4,249 4,174 17,015 15,996
Profit from operations 256 735 1,268 1,455
Finance income 14 15 46 37
Finance costs (19) (14) (354) (157)
Net finance (costs) income (5) 1 (308) (120)
Share of net loss of equity-accounted associate - - - (15)
Gain on sale of the investment in equity-accounted associate - 67 - 67
Profit before income taxes 251 803 960 1,387
Income taxes 70 330 75 330
Profit attributable to the owners of the Company and comprehensive income for the period$
181

$

473

$

885

$

1,057
Basic and diluted earnings per common share$0.02 $0.04 $0.08 $0.09
TECSYS Inc.
Consolidated Statements of Cash Flows
Three-month periods and years ended April 30, 2013 and 2012
(in thousands of Canadian dollars)
Three Months Three Months Year Year
Ended Ended Ended Ended
April 30, April 30, April 30, April 30,
2013 2012 2013 2012
(unaudited) (unaudited)
Cash flows (used in) from operating activities:
Profit for the period$181 $473 $885 $1,057
Adjustments for:
Depreciation of property and equipment 184 232 907 789
Depreciation of deferred development costs 237 218 883 789
Depreciation of other intangible assets 45 33 162 119
Share-based compensation - - - 40
Net finance costs (income) 5 (1) 308 120
Realized foreign exchange (losses) gains and others (39) (78) 109 32
Share of net loss of equity-accounted associate - - - 15
Gain on sale of the investment in equity-accounted associate - (67) - (67)
Federal non-refundable research and development tax credits (75) (330) (300) (330)
Income taxes 71 330 75 330
Operating activities excluding changes in non-cash working capital items related to operations
609

810

3,029

2,894
Accounts receivable (1,457) (133) 248 (1,347)
Work in progress (444) (209) (646) (600)
Other accounts receivable 16 337 (41) 65
Tax credits (632) 1,080 (2,647) (270)
Inventory 24 101 151 (516)
Prepaid expenses 135 71 24 (327)
Accounts payable and accrued liabilities 486 (1,119) (751) 1,421
Deferred revenue 601 57 496 321
Changes in non-cash working capital items related to operations (1,271) 185 (3,166) (1,253)
Net cash (used in) from operating activities (662) 995 (137) 1,641
Cash flows (used in) from financing activities:
Repayment of bank advances - - - (3,720)
Repayment of loans (4) (3) (15) (22)
Term loan - - 5,000 -
Repayment of term loan (250) - (500) -
Issuance of common shares 2 5 59 195
Purchase of common shares for cancellation - (39) (462) (437)
Purchase of share options for cancellation (85) (8) (328) (347)
Payment of dividends (400) (349) (800) (698)
Interest paid (45) (2) (100) (16)
Net cash (used in) from financing activities (782) (396) 2,854 (5,045)
Cash flows (used in) from investing activities:
Short-term and other investments and restricted cash equivalents and other investments
342

565

40

890
Interest received 14 15 46 37
Proceeds from asset-backed commercial paper - - - 3,584
Acquisitions of property and equipment (36) (213) (685) (1,413)
Proceeds on disposal of property and equipment - 1 - 4
Acquisitions of other intangible assets (182) (39) (348) (189)
Deferred development costs (561) (310) (1,686) (855)
Non-current receivables including the current portion of the loan from TECSYS Latin America Inc.
1

3

13

23
Proceeds from disposition of the investment in equity-accounted associate - 136 34 136
Net cash (used in) from investing activities (422) 158 (2,586) 2,217
Net (decrease) increase in cash and cash equivalents during the period (1,866) 757 131 (1,187)
Cash and cash equivalents - beginning of period 7,214 4,460 5,217 6,404
Cash and cash equivalents - end of period$5,348 $5,217 $5,348 $5,217
TECSYS Inc.
Consolidated Statements of Changes in Equity
Years ended April 30, 2013 and 2012
(in thousands of Canadian dollars, except number of shares)
Share capital Contributed Retained Total
Number Amount surplus earnings
Balance, April 30, 201211,603,271 $1,688 $10,023 $3,845 $15,556
Profit and comprehensive income for the year- - - 885 885
Total comprehensive income for the year- - - 885 885
Repurchase of common shares(187,300) (27) (435) - (462)
Share options exercised33,450 59 - - 59
Fair value associated with options exercised- 28 - - 28
Dividends to equity owners- - - (800) (800)
Total transactions with owners of the Company(153,850) 60 (435) (800) (1,175)
Balance, April 30, 201311,449,421 $1,748 $9,588 $3,930 $15,266
Balance, April 30, 201111,678,671 $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)
Stock options exercised117,400 195 - - 195
Fair value associated with 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, 201211,603,271 $1,688 $10,023 $3,845 $15,556

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