MONTREAL, QUEBEC--(Marketwired - Feb. 26, 2015) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, today announced its results for the third quarter of fiscal year 2015, ended January 31, 2015.
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 grew sequentially for the sixth consecutive quarter reaching a new record.
- Revenue grew 26% to $15.0M in Q3, 2015 compared to $11.9M in Q3, 2014.
- EBITDA reached $1.3M, representing 22% growth in Q3, 2015 compared to $1.1M in Q3, 2014.
- Proprietary products revenue grew 145% to $3.3M on strong demand from the healthcare market and the Company's newly acquired Logi-D point-of-use products.
- Services revenue improved by 6% to $8.4M, compared to $7.9M in Q3 2014.
- Profit from operations was $630K in Q3, 2015, compared to $589K in Q3, 2014. Before acquisition related amortization costs, profit from operations was $693K in Q3, 2015 compared to $598K in Q3, 2014.
- Recurring revenue on an annualized basis grew to $21.4M, a 25% improvement compared to the end of Q3, 2014, representing 40% of the last 12 months trailing revenue.
- Total contract bookings in the third quarter totaled $12.0M, compared to $4.1M in the third quarter of fiscal 2014.
- Backlog grew to $40.8M at the end of Q3, 2015 compared to $27.4M at the end of Q3, 2014.
- Cash and cash equivalents totaled $2.4M at the end of Q3, 2015 compared to $8.8M at the end of Q4, 2014.
- Signed an additional Hospital Network (IDN) in the United States.
- Go-lives at 27 customers' sites, most notably: a significant hospital network in Florida, two heavy equipment dealers in the U.S., a third-party logistics provider in Canada and 11 hospitals with Logi-D products.
"Demand for our innovative product offering remains strong, which resulted in record quarterly revenue and contract bookings," said Peter Brereton, President and CEO of TECSYS Inc. "We are strategically investing to strengthen our sales team, increase deployment efficiency and enhance our customer experience. We added another hospital network to our customer base and signed a significant agreement with an existing hospital client to expand into the OR. We are confident we are taking the appropriate steps to continue to see strong growth."
Highlights of the First Nine Months
- Revenue for the first nine months of fiscal 2015 was $41.5M, up 22% from $34.1M in the first nine months of last fiscal year.
- EBITDA increased to $3.4M, representing 22% growth in the first nine months of fiscal 2015 compared to $2.8M for the same period of fiscal 2014.
- Profit from operations for the first nine months of fiscal 2015 was $1.6M compared to $1.5M in the same period of fiscal 2014. Before acquisition related expenses and amortizations, profit from operations increased to $2.0M in the first nine months of FY 2015 from $1.5M in first nine months of FY 2014, a 30% increase.
- Net profit for the first nine months of fiscal 2015 was $1.2M, or $0.11 per share, compared to $1.2M, or $0.10 per share, for the same period of the prior fiscal year. Before acquisition related expenses and amortizations, net profit was $1.5 M or $0.13 per share.
- Total contract bookings for the first nine months of fiscal 2015 totaled $31.0M, which includes the addition of five new IDN's. This compares to $14.9M for the first nine months of fiscal 2014.
TECSYS also announced that the Company's Board of Directors has declared a quarterly dividend of $0.0225 per share, to be paid on April 9, 2015 to shareholders of record at the close of business on March 19, 2015.
Third Quarter FY2015 Results Conference Call
| Date: February 26, 2015 |
| 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: 21762575) or 416-626-4100 (access code: 21762575). |
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. |
| Condensed Interim Consolidated Statements of Financial Position |
| (Unaudited) |
| As at January 31, 2015 and April 30, 2014 |
| (in thousands of Canadian dollars) |
| January 31, | April 30, | |||||
| 2015 | 2014 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 2,423 | $ | 8,839 | ||
| Accounts receivable | 12,973 | 9,076 | ||||
| Work in progress | 1,720 | 524 | ||||
| Other accounts receivable | 280 | 46 | ||||
| Tax credits | 4,788 | 2,704 | ||||
| Inventory | 924 | 293 | ||||
| Prepaid expenses | 1,186 | 1,037 | ||||
| Total current assets | 24,294 | 22,519 | ||||
| Non-current assets | ||||||
| Restricted cash equivalents | 40 | 80 | ||||
| Tax credits | 1,575 | 1,350 | ||||
| Property and equipment | 2,483 | 2,627 | ||||
| Deferred development costs | 4,273 | 4,088 | ||||
| Other intangible assets | 2,183 | 508 | ||||
| Goodwill | 3,594 | 2,239 | ||||
| Deferred tax assets | 489 | 714 | ||||
| Total non-current assets | 14,637 | 11,606 | ||||
| Total assets | $ | 38,931 | $ | 34,125 | ||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 9,878 | $ | 5,406 | ||
| Current portion of long-term debt | 1,068 | 1,000 | ||||
| Deferred revenue | 9,156 | 8,326 | ||||
| Total current liabilities | 20,102 | 14,732 | ||||
| Non-current liabilities | ||||||
| Long-term debt | 1,990 | 2,500 | ||||
| Other non-current liabilities | 351 | 299 | ||||
| Total non-current liabilities | 2,341 | 2,799 | ||||
| Total liabilities | 22,443 | 17,531 | ||||
| Equity | ||||||
| Share capital | 2,253 | 2,153 | ||||
| Contributed surplus | 9,577 | 9,577 | ||||
| Retained earnings | 5,305 | 4,864 | ||||
| Accumulated other comprehensive loss | (647 | ) | - | |||
| Total equity attributable to the owners of the Company | 16,488 | 16,594 | ||||
| Total liabilities and equity | $ | 38,931 | $ | 34,125 | ||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Income and Comprehensive Income |
| (Unaudited) |
| Three and nine-month periods ended January 31, 2015 and 2014 |
| (in thousands of Canadian dollars, except per share data) |
| | | Three Months Ended January 31, 2015 | | | Three Months Ended January 31, 2014 | | Nine Months Ended January 31, 2015 | | | Nine Months Ended January 31, 2014 | |
| Revenue: | |||||||||||
| Proprietary products | $ | 3,336 | $ | 1,359 | $ | 8,641 | $ | 5,332 | |||
| Third-party hardware and software products | 2,798 | 2,140 | 6,303 | 5,327 | |||||||
| Services | 8,415 | 7,921 | 25,254 | 22,369 | |||||||
| Reimbursable expenses | 409 | 429 | 1,320 | 1,079 | |||||||
| Total revenue | 14,958 | 11,849 | 41,518 | 34,107 | |||||||
| Cost of revenue: | |||||||||||
| Products | 2,011 | 1,466 | 4,633 | 3,761 | |||||||
| Services | 5,468 | 4,943 | 15,791 | 14,573 | |||||||
| Reimbursable expenses | 409 | 429 | 1,320 | 1,079 | |||||||
| Total cost of revenue | 7,888 | 6,838 | 21,744 | 19,413 | |||||||
| Gross profit | 7,070 | 5,011 | 19,774 | 14,694 | |||||||
| Operating expenses: | |||||||||||
| Sales and marketing | 3,230 | 2,100 | 8,776 | 6,349 | |||||||
| General and administration | 1,340 | 1,006 | 4,288 | 2,970 | |||||||
| Research and development, net of tax credits | 1,870 | 1,316 | 5,074 | 3,867 | |||||||
| Total operating expenses | 6,440 | 4,422 | 18,138 | 13,186 | |||||||
| Profit from operations | 630 | 589 | 1,636 | 1,508 | |||||||
| Net finance costs | 28 | 47 | 106 | 203 | |||||||
| Profit before income taxes | 602 | 542 | 1,530 | 1,305 | |||||||
| Income taxes | 135 | 75 | 310 | 150 | |||||||
| Profit attributable to the owners of the Company | $ | 467 | $ | 467 | $ | 1,220 | $ | 1,155 | |||
| Other comprehensive loss: | |||||||||||
| Effective portion of changes in fair value on designated revenue hedges | (460 | ) | - | (647 | ) | - | |||||
| Comprehensive income attributable to the owners of the Company | $ | 7 | $ | 467 | $ | 573 | $ | 1,155 | |||
| Basic and diluted earnings per common share | $ | 0.04 | $ | 0.04 | $ | 0.11 | $ | 0.10 | |||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Cash Flows |
| (Unaudited) |
| Nine-month periods ended January 31, 2015 and 2014 |
| (in thousands of Canadian dollars) |
| Nine Months Ended January 31, 2015 | Nine Months Ended January 31, 2014 | ||||||
| Cash flows from (used in) operating activities: | |||||||
| Profit for the period | $ | 1,220 | $ | 1,155 | |||
| Adjustments for: | |||||||
| Depreciation of property and equipment | 557 | 552 | |||||
| Depreciation of deferred development costs | 962 | 741 | |||||
| Depreciation of other intangible assets | 316 | 124 | |||||
| Net finance costs | 106 | 203 | |||||
| Unrealized foreign exchange losses, realized foreign exchange gains and other | 936 | 423 | |||||
| Federal non-refundable research and development tax credits | (225 | ) | (225 | ) | |||
| Income taxes | 225 | 150 | |||||
| Operating activities excluding changes in non-cash working capital items related to operations | 4,097 | 3,123 | |||||
| Accounts receivable | (3,085 | ) | (1,347 | ) | |||
| Work in progress | (792 | ) | 953 | ||||
| Other accounts receivable | (236 | ) | (29 | ) | |||
| Tax credits | (1,874 | ) | (9 | ) | |||
| Inventory | (127 | ) | 93 | ||||
| Prepaid expenses | (163 | ) | (1 | ) | |||
| Accounts payable and accrued liabilities | 1,733 | 299 | |||||
| Deferred revenue | 293 | 420 | |||||
| Changes in non-cash working capital items related to operations | (4,251 | ) | 379 | ||||
| Net cash (used in) from operating activities | (154 | ) | 3,502 | ||||
| Cash flows (used in) from financing activities: | |||||||
| Repayment of bank loans | (140 | ) | - | ||||
| Repayment of loan to related party | - | (12 | ) | ||||
| Repayment of long-term debt | (795 | ) | (750 | ) | |||
| Long-term debt | 50 | - | |||||
| Issuance of common shares | - | 40 | |||||
| Purchase of common shares for cancellation and related fees | - | (11 | ) | ||||
| Purchase of share options for cancellation | (13 | ) | (15 | ) | |||
| Payment of dividends | (779 | ) | (402 | ) | |||
| Interest paid | (99 | ) | (127 | ) | |||
| Net cash used in financing activities | (1,776 | ) | (1,277 | ) | |||
| Cash flows (used in) from investing activities: | |||||||
| Restricted cash equivalents | 40 | 40 | |||||
| Interest received | 18 | 31 | |||||
| Acquisitions of property and equipment | (219 | ) | (360 | ) | |||
| Acquisitions of other intangible assets | (255 | ) | (125 | ) | |||
| Deferred development costs | (1,147 | ) | (1,318 | ) | |||
| Current and non-current receivables from TECSYS Latin America Inc. | 26 | 55 | |||||
| Business combination, net of cash and cash equivalents acquired | (2,949 | ) | - | ||||
| Net cash used in investing activities | (4,486 | ) | (1,677 | ) | |||
| Net (decrease) increase in cash and cash equivalents during the period | (6,416 | ) | 548 | ||||
| Cash and cash equivalents - beginning of period | 8,839 | 5,348 | |||||
| Cash and cash equivalents - end of period | $ | 2,423 | $ | 5,896 | |||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Changes in Equity |
| (Unaudited) |
| Nine-month periods ended January 31, 2015 and 2014 |
| (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 | - | - | - | - | 1,220 | 1,220 | |||||||||||
| Other comprehensive loss for the period: | |||||||||||||||||
| Effective portion of changes in fair value on designated revenue hedges | - | - | - | (647 | ) | - | (647 | ) | |||||||||
| Total comprehensive income for the period | - | - | - | (647 | ) | 1,220 | 573 | ||||||||||
| Common shares issued related to purchase of Logi D Holding Inc. | 15,625 | 100 | - | - | - | 100 | |||||||||||
| Dividends to equity owners | - | - | - | - | (779 | ) | (779 | ) | |||||||||
| Total transactions with owners of the Company | 15,625 | 100 | - | - | (779 | ) | (679 | ) | |||||||||
| Balance, January 31, 2015 | 11,540,046 | $ | 2,253 | $ | 9,577 | $ | (647 | ) | $ | 5,305 | $ | 16,488 | |||||
| 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 | ||||||
Contact Information:
info@tecsys.com
Investor relations:
rkelly@tmxequicom.com
416-815-0700 ext. 253
Media relations:
media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649