MONTREAL, QUEBEC--(Marketwired - July 8, 2015) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, today announced its results for the fourth quarter and 2015 fiscal year, ended April 30, 2015.
All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
Fourth Quarter Highlights:
- Revenue grew 27% to $15.8M in Q4 2015 compared to $12.5M in Q4 2014.
- EBITDA was $955K for Q4 2015, compared to $1.258K recorded in Q4 2014.
- Proprietary products revenue grew 41% to $3.9M on strong demand from the Company's Logi-D point-of-use products as well as increased healthcare license revenue.
- Services revenue improved by 16% to $9.1M, while services profit margin grew to 38% from 35% in Q4 2014.
- Profit from operations was $311K in Q4 2015, compared to $757K in Q4 2014.
- Profit from operations was reduced by $270K of one-time costs due to the elimination of redundant management positions as various operating units were integrated into a single operating unit. A large new customer signed on a SAAS revenue model basis, resulting in the deferral of approximately $550K of license fees, while on an accounting basis, the bulk of the expenses impacted the quarter.
- Recurring revenue on an annualized basis grew to $21.3M, a 21% improvement compared to Q4 2014, representing 37% of fiscal 2015 revenue.
- Total contract bookings in the fourth quarter totaled $16.0M, compared to $9.0M in the prior year period, a 79% increase.
- Backlog was $44.9M at the end of Q4 2015 compared to $29.2M at the end of Q4 2014, a 54% increase.
- Cash and cash equivalents totaled $10.8M at the end of Q4 2015 compared to $8.8M at the end of Q4 2014.
- Signed one Health System (IDN) in the United States with five hospitals and five specialty centers.
- Go-lives at 23 customers' sites, most notably: two health systems, one third party logistics provider, two sites for a Fortune 300 imaging manufacturer and five new hospital sites with Logi-D products.
"Our fiscal 2015 results demonstrate the inherent growth potential of our innovative solutions as revenue rose substantially and order bookings doubled over the prior year." said Peter Brereton, President and CEO of TECSYS Inc. "New order bookings in the fourth quarter were up almost 80% from last year's fourth quarter and included a significant SAAS agreement. These record bookings impacted the quarter with significant travel and incentive expense while roughly 70% of the related revenues are future. We continued to invest for growth in areas such as marketing and R&D as well as the launch of an additional sales team, allowing one team to concentrate on Healthcare while the other concentrates on Complex Distribution. We begin 2016 in an excellent financial and competitive position and I look forward to updating you on our progress throughout the year."
Highlights of the 2015 Fiscal Year:
- Revenue increased 23% in fiscal 2015 to $57.3M, compared to $46.6M last fiscal year.
- EBITDA was $4.4M in fiscal 2015 compared to $4.1M last year.
- Profit from operations was $1.9M compared to $2.3M in fiscal 2014. Before acquisition related expenses and amortization, profit from operations was $2.3M in both fiscal 2015 and 2014.
- Net profit in fiscal 2015 was $1.5M, or $0.13 per share, compared to $1.8M, or $0.16 per share in fiscal year 2014. Before acquisition related expenses and amortization, net profit was $1.9M or $0.16 per share in fiscal 2015 compared to $1.8M or $0.16 per share in fiscal 2014.
- Total contract bookings in fiscal 2015 totaled $47.0M, which includes the addition of six new IDN's. This represents a 97% increase in contract bookings compared to $23.9M in fiscal 2014.
TECSYS also announced that the Company's Board of Directors approved an increase of the quarterly dividend from $0.0225 per share to $0.025 per share, an increase of 11%. To this effect, the Company declared a dividend of $0.025 per share, to be paid on August 6, 2015 to shareholders of record on July 22, 2015.
Fourth Quarter and Fiscal Year 2015 Results Conference Call
Date: July 8, 2015
Time: 4:30 pm EST
Phone number: 800-734-4208 or 416-620-9188
The call can be replayed by calling 800-558-5253 or 416-626-4100 (access code: 21771491).
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. 2015. 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, 2015 and April 30, 2014 |
| (in thousands of Canadian dollars) |
| April 30, | April 30, | ||||
| 2015 | 2014 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 10,815 | $ | 8,839 | |
| Accounts receivable | 12,570 | 9,076 | |||
| Work in progress | 704 | 524 | |||
| Other accounts receivable | 434 | 66 | |||
| Tax credits | 5,369 | 2,704 | |||
| Inventory | 1,059 | 293 | |||
| Prepaid expenses | 1,394 | 1,037 | |||
| Total current assets | 32,345 | 22,539 | |||
| Non-current assets | |||||
| Restricted cash equivalents | - | 80 | |||
| Tax credits | 1,538 | 1,350 | |||
| Property and equipment | 2,526 | 2,627 | |||
| Deferred development costs | 4,348 | 4,088 | |||
| Other intangible assets | 2,184 | 508 | |||
| Goodwill | 3,596 | 2,239 | |||
| Deferred tax assets | 840 | 714 | |||
| Total non-current assets | 15,032 | 11,606 | |||
| Total assets | $ | 47,377 | $ | 34,145 | |
| Liabilities | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | $ | 8,817 | $ | 5,426 | |
| Current portion of long-term debt | 1,456 | 1,000 | |||
| Deferred revenue | 10,098 | 8,326 | |||
| Total current liabilities | 20,371 | 14,752 | |||
| Non-current liabilities | |||||
| Long-term debt | 3,333 | 2,500 | |||
| Other non-current liabilities | 311 | 299 | |||
| Total non-current liabilities | 3,644 | 2,799 | |||
| Total liabilities | 24,015 | 17,551 | |||
| Equity | |||||
| Share capital | 8,349 | 2,153 | |||
| Contributed surplus | 9,577 | 9,577 | |||
| Retained earnings | 5,341 | 4,864 | |||
| Accumulated other comprehensive income | 95 | - | |||
| Total equity attributable to the owners of the Company | 23,362 | 16,594 | |||
| Total liabilities and equity | $ | 47,377 | $ | 34,145 | |
| TECSYS Inc. |
| Consolidated Statements of Income and Comprehensive Income |
| Three month periods and years ended April 30, 2015 and 2014 |
| (in thousands of Canadian dollars, except per share data) |
| Three Months Ended April 30, 2015 (unaudited) | Three Months Ended April 30, 2014 (unaudited) | Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||
| Revenue: | |||||||||
| Proprietary products | $ | 3,884 | $ | 2,749 | $ | 12,525 | $ | 8,081 | |
| Third-party hardware and software products | 2,273 | 1,506 | 8,576 | 6,833 | |||||
| Services | 9,093 | 7,807 | 34,347 | 30,176 | |||||
| Reimbursable expenses | 516 | 389 | 1,836 | 1,468 | |||||
| Total revenue | 15,766 | 12,451 | 57,284 | 46,558 | |||||
| Cost of revenue: | |||||||||
| Products | 1,799 | 1,351 | 6,432 | 5,112 | |||||
| Services | 5,652 | 5,112 | 21,443 | 19,685 | |||||
| Reimbursable expenses | 516 | 389 | 1,836 | 1,468 | |||||
| Total cost of revenue | 7,967 | 6,852 | 29,711 | 26,265 | |||||
| Gross profit | 7,799 | 5,599 | 27,573 | 20,293 | |||||
| Operating expenses: | |||||||||
| Sales and marketing | 3,951 | 2,406 | 12,727 | 8,755 | |||||
| General and administration | 1,611 | 1,080 | 5,899 | 4,050 | |||||
| Research and development, net of tax credits | 1,926 | 1,356 | 7,000 | 5,223 | |||||
| Total operating expenses | 7,488 | 4,842 | 25,626 | 18,028 | |||||
| Profit from operations | 311 | 757 | 1,947 | 2,265 | |||||
| Net finance costs | 13 | 41 | 119 | 244 | |||||
| Profit before income taxes | 298 | 716 | 1,828 | 2,021 | |||||
| Income taxes | 3 | 76 | 313 | 226 | |||||
| Profit attributable to the owners of the Company | $ | 295 | $ | 640 | $ | 1,515 | $ | 1,795 | |
| Other comprehensive income: | |||||||||
| Effective portion of changes in fair value on designated revenue hedges | 742 | - | 95 | - | |||||
| Comprehensive income attributable to the owners of the Company | $ | 1,037 | $ | 640 | $ | 1,610 | $ | 1,795 | |
| Basic and diluted earnings per common share | $ | 0.02 | $ | 0.06 | $ | 0.13 | $ | 0.16 | |
| TECSYS Inc. |
| Consolidated Statements of Cash Flows |
| Years ended April 30, 2015 and 2014 |
| (in thousands of Canadian dollars) |
| Year Ended April 30, 2015 | Year Ended April 30, 2014 | ||||||
| Cash flows from (used in) operating activities: | |||||||
| Profit for the year | $ | 1,515 | $ | 1,795 | |||
| Adjustments for: | |||||||
| Depreciation of property and equipment | 743 | 728 | |||||
| Depreciation of deferred development costs | 1,291 | 1,045 | |||||
| Depreciation of other intangible assets | 434 | 170 | |||||
| Net finance costs | 119 | 244 | |||||
| Unrealized foreign exchange losses, realized foreign exchange gains and other | 74 | 122 | |||||
| Federal non-refundable research and development tax credits | (500 | ) | (300 | ) | |||
| Income taxes | 184 | 199 | |||||
| Operating activities excluding changes in non-cash working capital items related to operations | 3,860 | 4,003 | |||||
| Accounts receivable | (2,374 | ) | (1,117 | ) | |||
| Work in progress | (84 | ) | 767 | ||||
| Other accounts receivable | (190 | ) | 53 | ||||
| Tax credits | (2,443 | ) | 1,945 | ||||
| Inventory | (298 | ) | 252 | ||||
| Prepaid expenses | (335 | ) | 116 | ||||
| Accounts payable and accrued liabilities | 2,023 | 516 | |||||
| Deferred revenue | 1,235 | 1,165 | |||||
| Changes in non-cash working capital items related to operations | (2,466 | ) | 3,697 | ||||
| Net cash from operating activities | 1,394 | 7,700 | |||||
| Cash flows from (used in) financing activities: | |||||||
| Repayment of bank loans | (140 | ) | - | ||||
| Repayment of loan to related party | - | (70 | ) | ||||
| Repayment of long-term debt | (1,064 | ) | (1,000 | ) | |||
| Long-term debt | 2,050 | - | |||||
| Issuance of common shares | 6,096 | 130 | |||||
| Normal course issuer bid fees | - | (11 | ) | ||||
| Purchase of share options for cancellation | (31 | ) | (20 | ) | |||
| Payment of dividends | (1,038 | ) | (861 | ) | |||
| Interest paid | (126 | ) | (162 | ) | |||
| Net cash from (used) in financing activities | 5,747 | (1,994 | ) | ||||
| Cash flows (used in) from investing activities: | |||||||
| Restricted cash equivalents | 80 | 40 | |||||
| Interest received | 21 | 50 | |||||
| Acquisitions of property and equipment | (435 | ) | (427 | ) | |||
| Acquisitions of other intangible assets | (374 | ) | (134 | ) | |||
| Deferred development costs | (1,551 | ) | (1,816 | ) | |||
| Receivables from TECSYS Latin America Inc. | 43 | 72 | |||||
| Business combination, net of cash and cash equivalents acquired | (2,949 | ) | - | ||||
| Net cash used in investing activities | (5,165 | ) | (2,215 | ) | |||
| Net increase in cash and cash equivalents during the year | 1,976 | 3,491 | |||||
| Cash and cash equivalents - beginning of year | 8,839 | 5,348 | |||||
| Cash and cash equivalents - end of year | $ | 10,815 | $ | 8,839 | |||
| TECSYS Inc. |
| Consolidated Statements of Changes in Equity |
| Years ended April 30, 2015 and 2014 |
| (in thousands of Canadian dollars, except number of shares) |
| Share capital | ||||||||||||||||
| | Number | | Amount | | Contributed surplus | | | Accumulated other comprehensive income | | Retained earnings | | | Total | | ||
| Balance, April 30, 2014 | 11,524,421 | $ | 2,153 | $ | 9,577 | $ | - | $ | 4,864 | $ | 16,594 | |||||
| Profit for the year | - | - | - | - | 1,515 | 1,515 | ||||||||||
| Other comprehensive income for the year: | ||||||||||||||||
| Effective portion of changes in fair value on designated revenue hedges | - | - | - | 95 | - | 95 | ||||||||||
| Total comprehensive income for the year | - | - | - | 95 | 1,515 | 1,610 | ||||||||||
| Common shares issued related to purchase of Logi D Holding Inc. | 15,625 | 100 | - | - | - | 100 | ||||||||||
| Common shares issued under bought deal financing | 775,280 | 6,096 | - | - | - | 6,096 | ||||||||||
| Dividends to equity owners | - | - | - | - | (1,038 | ) | (1,038 | ) | ||||||||
| Total transactions with owners of the Company | 790,905 | 6,196 | - | - | (1,038 | ) | 5,158 | |||||||||
| Balance, April 30, 2015 | 12,315,326 | $ | 8,349 | $ | 9,577 | $ | 95 | $ | 5,341 | $ | 23,362 | |||||
| Balance, April 30, 2013 | 11,449,421 | $ | 1,748 | $ | 9,588 | $ | - | $ | 3,930 | $ | 15,266 | |||||
| Profit and comprehensive income for the year | - | - | - | - | 1,795 | 1,795 | ||||||||||
| Total comprehensive income for the year | - | - | - | - | 1,795 | 1,795 | ||||||||||
| Normal course issuer bid fees | - | - | (11 | ) | - | - | (11 | ) | ||||||||
| Share options exercised | 75,000 | 130 | - | - | - | 130 | ||||||||||
| Fair value associated with options exercised | - | 275 | - | - | - | 275 | ||||||||||
| Dividends to equity owners | - | - | - | - | (861 | ) | (861 | ) | ||||||||
| Total transactions with owners of the Company | 75,000 | 405 | (11 | ) | - | (861 | ) | (467 | ) | |||||||
| Balance, April 30, 2014 | 11,524,421 | $ | 2,153 | $ | 9,577 | $ | - | $ | 4,864 | $ | 16,594 | |||||
Contact Information:
Investor relations: rkelly@tmxequicom.com;
416-815-0700 ext. 253
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649