MONTREAL, QUEBEC--(Marketwired - Nov. 26, 2013) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the second quarter of fiscal year 2014, ended October 31st, 2013. All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.
Overall highlights for the Second Quarter:
- Proprietary license revenue increased by 21% compared to last year.
- Services continued to achieve progressive growth, 5% in Q2, 2014 compared to last year, with a notable return on the investments made in infrastructure.
- Signed forty-seven new contracts; forty with existing customers and seven with new clients. Major highlights of the quarter included winning the business of a leading health system in the U.S., and expanding business with a fortune 100 healthcare provider into their Canadian operations.
- Deployed supply chain execution solutions at twelve customers in Canada and the United States, eight of which are major customers.
- Hosted the Company's user conference with the highest customer attendance to date, and introduced new products that have attracted significant interest for upgrades.
Financial Highlights for the Second Quarter:
- Revenue increased by 8% to $11.7M in Q2, 2014, the highest in a decade, compared to $10.7M in Q2, 2013.
- Profit from operations increased to $748K in Q2, 2014 compared to $428K in Q2, 2013.
- EBITDA for Q2, 2014 increased to $1,181K compared to $613K for Q2 of last fiscal year, a 93% increase.
- Net profit for Q2, 2014 increased substantially to $605K or $0.05 per share, compared to $122K or $0.01 per share for Q2 of last fiscal year.
- Annualized recurring revenue increased to $16.3M, the highest to date, at the end of Q2, 2014, compared to $15.5M at the end of Q2, 2013. Recurring revenue for Q2, 2014 represented 37% of revenue for the last twelve months.
- Backlog at the end of Q2, 2014, reached a historical high of $27.5M compared to $25.5M at the end of Q2, 2013.
- Cash generated from operating activities prior to changes in non-cash working capital amounted to $1,164K in Q2, 2014 compared to $934K in Q2, 2013.
- Cash and cash equivalents amounted to $4.2M at the end of Q2, 2014 compared to $6.8M at the end of Q1, 2014.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "The quarter marked a new set of highs in recent years for revenue, backlog and recurring revenue, and a solid performance in all of our financial metrics. Overall total bookings increased by 39% compared to last year's 2nd quarter, and we continued to improve services revenue and margins by leveraging our expanded infrastructure and delivering a significant number of go lives to our major account customer base. Our leadership in health systems was further reinforced; we won the business of a major health system, the fifth customer in as many quarters in this market. We are pleased with these achievements and with the opportunities moving forward."
First Half Financial Summary:
- Revenue for the first half, 2014 remained at $22.3M compared to the first half of last fiscal year.
- Q1, 2013 included a major customer base contract which contributed significantly to the Company's 28% revenue growth compared to Q1, 2012 as well as making a noteworthy contribution to product revenue, profit from operations and net earnings.
- Profit from operations for the first half, 2014 was $919K compared to $1,476K for the same period in last year.
- EBITDA for the first half, 2014 was $1,760K compared to $2,246K for the first half of 2013.
- Net profit for the first half of fiscal, 2014 was $688K or $0.06 per share compared to $1,247K or $0.11 per share for the same period of the prior fiscal year.
TECSYS' Second Quarter 2014 Results Conference Call:
| Date: November 26, 2013 |
| Time: 4:30 p.m. EST |
| Phone number: 800-732-5617 or 416-620-9188 |
| The call can be replayed by calling 800-558-5253 (access code: 21689032) or 416-626-4100 (access code: 21689032). |
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. 2013. 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, 2013 and April 30, 2013 | |||||
| (in thousands of Canadian dollars) | |||||
| October 31, | April 30, | ||||
| 2013 | 2013 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 4,207 | $ | 5,348 | |
| Accounts receivable | 9,839 | 7,959 | |||
| Work in progress | 1,035 | 1,291 | |||
| Other accounts receivable | 217 | 132 | |||
| Tax credits | 4,089 | 4,675 | |||
| Inventory | 369 | 545 | |||
| Prepaid expenses | 942 | 1,153 | |||
| Total current assets | 20,698 | 21,103 | |||
| Non-current assets | |||||
| Restricted cash equivalents and other investments | 80 | 120 | |||
| Non-current receivables | 14 | 39 | |||
| Tax credits | 1,369 | 1,219 | |||
| Property and equipment | 2,821 | 2,928 | |||
| Deferred development costs | 3,747 | 3,317 | |||
| Other intangible assets | 572 | 544 | |||
| Goodwill | 2,239 | 2,239 | |||
| Deferred tax assets | 637 | 710 | |||
| Total non-current assets | 11,479 | 11,116 | |||
| Total assets | $ | 32,177 | $ | 32,219 | |
| Liabilities | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | $ | 5,273 | $ | 4,997 | |
| Loans payable | 61 | 70 | |||
| Term loan | 1,000 | 1,000 | |||
| Deferred revenue | 6,935 | 7,161 | |||
| Total current liabilities | 13,269 | 13,228 | |||
| Non-current liabilities | |||||
| Term loan | 3,000 | 3,500 | |||
| Other non-current liabilities | 263 | 225 | |||
| Total non-current liabilities | 3,263 | 3,725 | |||
| Total liabilities | 16,532 | 16,953 | |||
| Equity | |||||
| Share capital | 1,852 | 1,748 | |||
| Contributed surplus | 9,577 | 9,588 | |||
| Retained earnings | 4,216 | 3,930 | |||
| Total equity attributable to the owners of the Company | 15,645 | 15,266 | |||
| Total liabilities and equity | $ | 32,177 | $ | 32,219 | |
| TECSYS Inc. | |||||||||
| Condensed Interim Consolidated Statements of Comprehensive Income | |||||||||
| (Unaudited) | |||||||||
| Three and six-month periods ended October 31, 2013 and 2012 | |||||||||
| (in thousands of Canadian dollars, except per share data) | |||||||||
| Three Months | Three Months | Six Months | Six Months | ||||||
| Ended | Ended | Ended | Ended | ||||||
| October 31, | October 31, | October 31, | October 31, | ||||||
| 2013 | 2012 | 2013 | 2012 | ||||||
| Revenue: | |||||||||
| Software products | $ | 2,507 | $ | 2,069 | $ | 3,973 | $ | 5,352 | |
| Third-party hardware and software products | 1,433 | 1,482 | 3,187 | 2,686 | |||||
| Services | 7,345 | 6,989 | 14,448 | 13,669 | |||||
| Reimbursable expenses | 371 | 208 | 650 | 551 | |||||
| Total revenue | 11,656 | 10,748 | 22,258 | 22,258 | |||||
| Cost of revenue: | |||||||||
| Products | 1,036 | 1,099 | 2,295 | 2,027 | |||||
| Services | 4,879 | 4,900 | 9,630 | 9,719 | |||||
| Reimbursable expenses | 371 | 208 | 650 | 551 | |||||
| Total cost of revenue | 6,286 | 6,207 | 12,575 | 12,297 | |||||
| Gross profit | 5,370 | 4,541 | 9,683 | 9,961 | |||||
| Operating expenses: | |||||||||
| Sales and marketing | 2,306 | 1,718 | 4,249 | 3,636 | |||||
| General and administration | 966 | 988 | 1,964 | 2,102 | |||||
| Research and development, net of tax credits | 1,350 | 1,407 | 2,551 | 2,747 | |||||
| Total operating expenses | 4,622 | 4,113 | 8,764 | 8,485 | |||||
| Profit from operations | 748 | 428 | 919 | 1,476 | |||||
| Net finance costs | 68 | 300 | 156 | 211 | |||||
| Profit before income taxes | 680 | 128 | 763 | 1,265 | |||||
| Income taxes | 75 | 6 | 75 | 18 | |||||
| Profit attributable to the owners of the Company and comprehensive income for the period | $ | 605 | $ | 122 | $ | 688 | $ | 1,247 | |
| Basic and diluted earnings per common share | $ | 0.05 | $ | 0.01 | $ | 0.06 | $ | 0.11 | |
| TECSYS Inc. | |||||||
| Condensed Interim Consolidated Statements of Cash Flows | |||||||
| (Unaudited) | |||||||
| Six-month periods ended October 31, 2013 and 2012 | |||||||
| (in thousands of Canadian dollars) | |||||||
| Six Months | Six Months | ||||||
| Ended | Ended | ||||||
| October 31, | October 31, | ||||||
| 2013 | 2012 | ||||||
| Cash flows from (used in) operating activities: | |||||||
| Profit for the period | $ | 688 | $ | 1,247 | |||
| Adjustments for: | |||||||
| Depreciation of property and equipment | 365 | 502 | |||||
| Depreciation of deferred development costs | 475 | 410 | |||||
| Depreciation of other intangible assets | 95 | 76 | |||||
| Net finance costs | 156 | 211 | |||||
| Realized foreign exchange gains and other | 7 | 129 | |||||
| Federal non-refundable research and development tax credits | (150 | ) | (150 | ) | |||
| Income taxes | 75 | (19 | ) | ||||
| Operating activities excluding changes in non-cash working capital items related to operations | 1,711 | 2,406 | |||||
| Accounts receivable | (1,880 | ) | 766 | ||||
| Work in progress | 256 | (1,248 | ) | ||||
| Other accounts receivable | (102 | ) | (85 | ) | |||
| Tax credits | 586 | (1,223 | ) | ||||
| Inventory | 176 | 11 | |||||
| Prepaid expenses | 211 | 129 | |||||
| Accounts payable and accrued liabilities | 282 | (675 | ) | ||||
| Deferred revenue | (226 | ) | (96 | ) | |||
| Changes in non-cash working capital items related to operations | (697 | ) | (2,421 | ) | |||
| Net cash from (used in) operating activities | 1,014 | (15 | ) | ||||
| Cash flows (used in) from financing activities: | |||||||
| Repayment of loans | (9 | ) | (6 | ) | |||
| Term loan | - | 5,000 | |||||
| Repayment of term loan | (500 | ) | - | ||||
| Issuance of common shares | 40 | 48 | |||||
| Purchase of common shares for cancellation and related fees | (11 | ) | (462 | ) | |||
| Purchase of share options for cancellation | (7 | ) | (81 | ) | |||
| Payment of dividends | (402 | ) | (400 | ) | |||
| Interest paid | (87 | ) | (7 | ) | |||
| Net cash (used in) from financing activities | (976 | ) | 4,092 | ||||
| Cash flows (used in) from investing activities: | |||||||
| Restricted cash equivalents and other investments | 40 | 40 | |||||
| Interest received | 25 | 14 | |||||
| Acquisitions of property and equipment | (258 | ) | (576 | ) | |||
| Acquisitions of other intangible assets | (123 | ) | (107 | ) | |||
| Deferred development costs | (905 | ) | (709 | ) | |||
| Current and non-current receivables from TECSYS Latin America Inc. | 42 | 31 | |||||
| Net cash used in investing activities | (1,179 | ) | (1,307 | ) | |||
| Net (decrease) increase in cash and cash equivalents during the period | (1,141 | ) | 2,770 | ||||
| Cash and cash equivalents - beginning of period | 5,348 | 5,217 | |||||
| Cash and cash equivalents - end of period | $ | 4,207 | $ | 7,987 | |||
| TECSYS Inc. | |||||||||||||||
| Condensed Interim Consolidated Statements of Changes in Equity | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Six-month periods ended October 31, 2013 and 2012 | |||||||||||||||
| (in thousands of Canadian dollars, except number of shares) | |||||||||||||||
| Share capital | |||||||||||||||
| Number | Amount | Contributed surplus | Retained earnings | Total | |||||||||||
| Balance, April 30, 2013 | 11,449,421 | $ | 1,748 | $ | 9,588 | $ | 3,930 | $ | 15,266 | ||||||
| Profit and comprehensive income for the period | - | - | - | 688 | 688 | ||||||||||
| Total comprehensive income for the period | - | - | - | 688 | 688 | ||||||||||
| 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, October 31, 2013 | 11,474,421 | $ | 1,852 | $ | 9,577 | $ | 4,216 | $ | 15,645 | ||||||
| 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 | ||||||
Contact Information:
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649