MONTREAL, QUEBEC--(Marketwired - Sept. 5, 2013) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the first quarter of fiscal year 2014, ended July 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 First Quarter:
- Services revenue increased by 6% compared to last year, providing improved returns on the investments made in services infrastructure; as a percentage of revenue services margin improved to 33% in Q1, 2014.
- Signed forty-three new contracts with new and existing clients. Major highlights of the quarter include winning the business of one of the largest banks in the U.S., and a leading operator of home and office beverage delivery in the U.S.
- Announced a major new and unique product targeting, the highest expense and highest revenue generating hospital entity, the Operating Room.
- Partnered with the Warehousing Education Research Council to include their industry metrics in TECSYS' business intelligence solutions, bringing significant additional meaning to the extensive library of analytics built-in to the TECSYS platform.
- Deployed its supply chain execution solutions at thirteen customers in Canada and the United States. The most notable ones include the go-lives of a Fortune 100 healthcare services company, and a multi-divisional consumer products company that supplies product to all channels of Canadian retail.
Financial Highlights for the First Quarter:
-- Revenue was $10.6M in Q1 of fiscal 2014 compared to $11.5M in Q1 of fiscal 2013. Q1, 2013 included a major contract which contributed significantly to its 28% revenue growth compared to Q1, 2012. (note: last year's major contract impacts Profit from Operations, EBITDA, and Net Profit comparisons as well)
-- Profit from operations was $171K in Q1, 2014 compared to $1,048K in Q1, 2013.
-- EBITDA for Q1, 2014 was $579K compared to $1,633K for Q1 of last fiscal year.
-- Net profit for Q1, 2014 was $83K or $0.01 per share, compared to $1,125K or $0.10 per share for the first quarter of last fiscal year.
-- Annualized recurring revenue was $15.5M at the end of Q1, 2014, compared to $15.6M at the end of Q1, 2013. Recurring revenue for Q1, 2014 represented 36% of revenue for the last twelve months.
-- Backlog at the end of Q1, 2014, was $26.3M compared to $26.2M at the end of Q1, 2013.
-- Cash generated from operating activities amounted to $2.3M in Q1, 2014 compared to $903K in Q1,2103
-- Cash and cash equivalents amounted to $6.8M at the end of Q1, 2014 compared to $5.3M at the end of Q4, 2013.
TECSYS also announced today that the Company's Board of Directors has declared a semi-annual dividend of $0.035/share, to be paid on October 4, 2013 to shareholders of record on September 20, 2013.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "Five new accounts and a significant improvement in services margins were the key elements of Q1. After several quarters of heavy investment in services infrastructure, we saw services revenue begin to respond, up 6% in the quarter compared to Q1 of last year with margin increasing from 28% to 33%. On the license front, Q1 was a more typical first quarter for us as opposed to last year's unusual Q1 making comparisons difficult. We are excited about the new cutting-edge supply chain product we have announced for the Hospital Operating Room. This product is now released and the level of interest from the market looks promising. The combination of our strong backlog, larger services team and a sales pipeline that looks solid put us in a good position moving forward. We continue to provide good returns to shareholders with another $0.035/share dividend approved by our Board of Directors.
TECSYS' First Quarter 2014 Results Conference Call:
Date: September 5, 2013
Time: 4:30 pm
Phone number: 800-745-9476 or 416-981-9020
The call can be replayed by calling 800-558-5253 (access code: 21672007) or 416-626-4100 (access code: 21672007).
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 July 31, 2013 and April 30, 2013 | ||||||
| (in thousands of Canadian dollars) | ||||||
| July 31, | April 30, | |||||
| 2013 | 2013 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 6,784 | $ | 5,348 | ||
| Accounts receivable | 7,539 | 7,959 | ||||
| Work in progress | 1,029 | 1,291 | ||||
| Other accounts receivable | 253 | 132 | ||||
| Tax credits | 3,470 | 4,675 | ||||
| Inventory | 467 | 545 | ||||
| Prepaid expenses | 1,221 | 1,153 | ||||
| Total current assets | 20,763 | 21,103 | ||||
| Non-current assets | ||||||
| Restricted cash equivalents and other investments | 80 | 120 | ||||
| Non-current receivables | 27 | 39 | ||||
| Tax credits | 1,294 | 1,219 | ||||
| Property and equipment | 2,778 | 2,928 | ||||
| Deferred development costs | 3,602 | 3,317 | ||||
| Other intangible assets | 605 | 544 | ||||
| Goodwill | 2,239 | 2,239 | ||||
| Deferred tax assets | 712 | 710 | ||||
| Total non-current assets | 11,337 | 11,116 | ||||
| Total assets | $ | 32,100 | $ | 32,219 | ||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 4,663 | $ | 4,997 | ||
| Loans payable | 65 | 70 | ||||
| Term loan | 1,000 | 1,000 | ||||
| Deferred revenue | 7,414 | 7,161 | ||||
| Total current liabilities | 13,142 | 13,228 | ||||
| Non-current liabilities | ||||||
| Term loan | 3,250 | 3,500 | ||||
| Other non-current liabilities | 255 | 225 | ||||
| Total non-current liabilities | 3,505 | 3,725 | ||||
| Total liabilities | 16,647 | 16,953 | ||||
| Equity | ||||||
| Share capital | 1,852 | 1,748 | ||||
| Contributed surplus | 9,588 | 9,588 | ||||
| Retained earnings | 4,013 | 3,930 | ||||
| Total equity attributable to the owners of the Company | 15,453 | 15,266 | ||||
| Total liabilities and equity | $ | 32,100 | $ | 32,219 | ||
| TECSYS Inc. | ||||||||
| Condensed Interim Consolidated Statements of Comprehensive Income | ||||||||
| (Unaudited) | ||||||||
| Three-month periods ended July 31, 2013 and 2012 | ||||||||
| (in thousands of Canadian dollars, except per share data) | ||||||||
| July 31, 2013 | July 31, 2012 | |||||||
| Revenue: | ||||||||
| Software products | $ | 1,466 | $ | 3,283 | ||||
| Third-party hardware and software products | 1,754 | 1,204 | ||||||
| Services | 7,103 | 6,680 | ||||||
| Reimbursable expenses | 279 | 343 | ||||||
| Total revenue | 10,602 | 11,510 | ||||||
| Cost of revenue: | ||||||||
| Products | 1,259 | 928 | ||||||
| Services | 4,751 | 4,819 | ||||||
| Reimbursable expenses | 279 | 343 | ||||||
| Total cost of revenue | 6,289 | 6,090 | ||||||
| Gross profit | 4,313 | 5,420 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 1,943 | 1,918 | ||||||
| General and administration | 998 | 1,114 | ||||||
| Research and development, net of tax credits | 1,201 | 1,340 | ||||||
| Total operating expenses | 4,142 | 4,372 | ||||||
| Profit from operations | 171 | 1,048 | ||||||
| Finance income | 16 | 92 | ||||||
| Finance costs | (104 | ) | (3 | ) | ||||
| Net finance (costs) income | (88 | ) | 89 | |||||
| Profit before income taxes | 83 | 1,137 | ||||||
| Income taxes | - | 12 | ||||||
| Profit attributable to the owners of the Company and comprehensive income for the period | $ | 83 | $ | 1,125 | ||||
| Basic and diluted earnings per common share | $ | 0.01 | $ | 0.10 | ||||
| TECSYS Inc. | |||||||
| Condensed Interim Consolidated Statements of Cash Flows | |||||||
| (Unaudited) | |||||||
| Three-month periods ended July 31, 2013 and 2012 | |||||||
| (in thousands of Canadian dollars) | |||||||
| July 31, 2013 | July 31, 2012 | ||||||
| Cash flows from operating activities: | |||||||
| Profit for the period | $ | 83 | $ | 1,125 | |||
| Adjustments for: | |||||||
| Depreciation of property and equipment | 183 | 248 | |||||
| Depreciation of deferred development costs | 238 | 215 | |||||
| Depreciation of other intangible assets | 48 | 37 | |||||
| Net finance costs (income) | 88 | (89 | ) | ||||
| Realized foreign exchange (losses) gains and other | (18 | ) | 49 | ||||
| Federal non-refundable research and development tax credits | (75 | ) | (75 | ) | |||
| Income taxes | - | (38 | ) | ||||
| Operating activities excluding changes in non-cash working capital items related to operations | 547 | 1,472 | |||||
| Accounts receivable | 420 | 1,097 | |||||
| Work in progress | 262 | (422 | ) | ||||
| Other accounts receivable | (123 | ) | (130 | ) | |||
| Tax credits | 1,205 | (559 | ) | ||||
| Inventory | 78 | 5 | |||||
| Prepaid expenses | (68 | ) | (44 | ) | |||
| Accounts payable and accrued liabilities | (283 | ) | (819 | ) | |||
| Deferred revenue | 253 | 303 | |||||
| Changes in non-cash working capital items related to operations | 1,744 | (569 | ) | ||||
| Net cash from operating activities | 2,291 | 903 | |||||
| Cash flows used in financing activities: | |||||||
| Repayment of loans | (5 | ) | (3 | ) | |||
| Term loan | - | - | |||||
| Repayment of term loan | (250 | ) | - | ||||
| Issuance of common shares | 40 | 31 | |||||
| Purchase of common shares for cancellation | - | (231 | ) | ||||
| Purchase of share options for cancellation | (2 | ) | - | ||||
| Payment of dividends | - | - | |||||
| Interest paid | (43 | ) | (3 | ) | |||
| Net cash used in financing activities | (260 | ) | (206 | ) | |||
| Cash flows used in investing activities: | |||||||
| Restricted cash equivalents and other investments | 40 | 40 | |||||
| Interest received | 16 | 7 | |||||
| Acquisitions of property and equipment | (33 | ) | (378 | ) | |||
| Acquisitions of other intangible assets | (109 | ) | (89 | ) | |||
| Deferred development costs | (523 | ) | (404 | ) | |||
| Current and non-current receivables from TECSYS Latin America Inc. | 14 | 14 | |||||
| Net cash used in investing activities | (595 | ) | (810 | ) | |||
| Net increase (decrease) in cash and cash equivalents during the period | 1,436 | (113 | ) | ||||
| Cash and cash equivalents - beginning of period | 5,348 | 5,217 | |||||
| Cash and cash equivalents - end of period | $ | 6,784 | $ | 5,104 | |||
| TECSYS Inc. | ||||||||||||||
| Condensed Interim Consolidated Statements of Changes in Equity | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three-month periods ended July 31, 2013 and 2012 | ||||||||||||||
| (in thousands of Canadian dollars, except number of shares) | ||||||||||||||
| Share capital | Contri- buted | Retained | Total | |||||||||||
| Number | Amount | surplus | earnings | |||||||||||
| 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 | |||||
| Balance, April 30, 2012 | 11,603,271 | $ | 1,688 | $ | 10,023 | $ | 3,845 | $ | 15,556 | |||||
| Profit and comprehensive income for the period | - | - | - | 1,125 | 1,125 | |||||||||
| Total comprehensive income for the period | - | - | - | 1,125 | 1,125 | |||||||||
| Repurchase of common shares | (91,800 | ) | (13 | ) | (218 | ) | - | (231 | ) | |||||
| Share options exercised | 16,350 | 31 | - | - | 31 | |||||||||
| Fair value associated with options exercised | - | 7 | - | - | 7 | |||||||||
| Total transactions with owners of the Company | (75,450 | ) | 25 | (218 | ) | - | (193 | ) | ||||||
| Balance, July 31, 2012 | 11,527,821 | $ | 1,713 | $ | 9,805 | $ | 4,970 | $ | 16,488 | |||||
Contact Information:
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649