MONTREAL, QUEBEC--(Marketwire - Dec. 1, 2011) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the second quarter of fiscal year 2012, ended October 31st, 2011. All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.
Second Quarter Financial Summary:
- Revenue was $9.1M in Q2, 2012 compared to $9.4M in Q2, 2011. The decline in revenue was primarily due to approximately $330K of deferred proprietary product license revenue that will be recognized in the future as well as a $134K impact due to the weakened U.S. dollar.
- Profit from operations for the second quarter, 2012 was $170K compared to $740K in Q2, 2011.
- Net profit for the second quarter, 2012 was $133K or $0.01 per share compared to $657K or $0.05 per share for the second quarter of last fiscal year.
- EBITDA for Q2, 2012 was $517K compared to $1,014K for Q2 of last fiscal year.
- At the end of Q2, 2012 annualized recurring revenue in Canadian currency increased to $14.4M compared to $14.1M at the end of Q2 of last fiscal year.
- Backlog at the end of Q2, 2012 increased to $21.5M from $20.4 at the end of Q1 FY2012 and compared to $21M at the end of Q2, 2011.
- Cash, cash equivalents and other short-term investments amounted to $4.7M at the end of Q2, 2012, compared to $7.3M at the start of the fiscal year.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "We won seven new customers during the quarter including two major US organizations; a Fortune 100 healthcare products and services provider and a US Government Department. Our services organization continued to execute well against our backlog and improved its revenue by 5% compared to last year, while adding significantly to its capacity. Our pipeline continues to be solid, with both services parts distribution and the gas and welding sector seeing a resurgence of activity and healthcare continuing to be active."
During the quarter, the Company won the business of seven new clients including:
- A Fortune 100 healthcare products and services supplier
- A U.S. Government department
- A packaged gas and welding supplies distributor in the U.S.
- An import-to-retail manufacturer and distributor in the U.S.
- Three industrial distributors in Canada
TECSYS also signed nineteen new business agreements with existing clients; four in healthcare, fourteen in general high-volume distribution and one third-party logistics provider. Furthermore, TECSYS deployed its supply chain execution solutions at thirteen customers from across its business units in Canada and the United States.
First Half Financial Summary:
- Revenue for the first half, 2012 was $18.1M compared to $17.9M for the same period of last fiscal year.
- Profit from operations for the first half, 2012 was $342K compared to $425K for the same period in last fiscal year.
- Net profit for the first half of fiscal, 2012 was $279K or $0.02 per share compared to $301K or $0.02 per share for the same period of the prior fiscal year.
- EBITDA for the first half, 2012 was $1,047K compared to $973K for the first half of 2011.
TECSYS' Second Quarter 2012 Earnings Conference Call:
| Subject: Second Quarter FY2012 Results Conference Call |
| Date: December 1, 2011 |
| Time: 4:30 pm |
| Phone number: 800-272-6255 or 416-641-6444 |
The call can be replayed by calling 800-558-5253 (access code: 21548836) or 416-626-4100 (access code: 21548836).
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, 2011. 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. 2011. 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, 2011, April 30, 2011 and May 1, 2010 |
| (in thousands of Canadian dollars) |
| October 31, | April 30, | May 1, | |||||
| 2011 | 2011 | 2010 | |||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 4,172 | $ | 6,404 | $ | 7,256 | |
| Short-term and other investments | 525 | 850 | 850 | ||||
| Asset-backed commercial paper | - | 3,584 | - | ||||
| Accounts receivable | 7,451 | 6,860 | 7,346 | ||||
| Work in progress | 220 | 45 | 66 | ||||
| Other accounts receivable and derivatives | 95 | 303 | 425 | ||||
| Tax credits | 2,614 | 1,737 | 1,914 | ||||
| Inventory | 165 | 180 | 171 | ||||
| Prepaid expenses | 999 | 850 | 879 | ||||
| Total current assets | 16,241 | 20,813 | 18,907 | ||||
| Non-current assets | |||||||
| Restricted cash equivalents and other investments | 200 | 200 | 200 | ||||
| Asset-backed commercial paper | - | - | 3,514 | ||||
| Non-current receivables | 16 | 23 | 48 | ||||
| Tax credits | 1,123 | 1,123 | 930 | ||||
| Investment in equity-accounted associate | 227 | 220 | 211 | ||||
| Property and equipment | 2,249 | 2,268 | 2,395 | ||||
| Deferred development costs | 2,477 | 2,448 | 1,991 | ||||
| Other intangible assets | 338 | 288 | 364 | ||||
| Goodwill | 2,239 | 2,239 | 2,239 | ||||
| Deferred tax assets | 609 | 609 | 595 | ||||
| Total non-current assets | 9,478 | 9,418 | 12,487 | ||||
| Total assets | $ | 25,719 | $ | 30,231 | $ | 31,394 | |
| Liabilities | |||||||
| Current liabilities | |||||||
| Bank advances | $ | - | $ | 3,720 | $ | 3,951 | |
| Accounts payable and accrued liabilities | 4,431 | 4,114 | 4,890 | ||||
| Loans payable | 90 | 107 | 249 | ||||
| Provisions | - | - | 415 | ||||
| Deferred revenue | 5,699 | 6,344 | 5,827 | ||||
| Total current liabilities | 10,220 | 14,285 | 15,332 | ||||
| Equity | |||||||
| Share capital | 1,702 | 1,467 | 1,386 | ||||
| Contributed surplus | 10,381 | 10,993 | 12,103 | ||||
| Retained earnings | 3,416 | 3,486 | 2,573 | ||||
| Total equity attributable to the owners of the Company | 15,499 | 15,946 | 16,062 | ||||
| Total liabilities and equity | $ | 25,719 | $ | 30,231 | $ | 31,394 | |
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Comprehensive Income |
| (Unaudited) |
| Three and six-month periods ended October 31, 2011 and 2010 |
| (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, | ||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| Revenue: | |||||||||||||
| Products | $ | 2,995 | $ | 3,621 | $ | 5,848 | $ | 6,334 | |||||
| Services | 5,889 | 5,611 | 11,844 | 11,078 | |||||||||
| Reimbursable expenses | 215 | 215 | 410 | 453 | |||||||||
| Total revenue | 9,099 | 9,447 | 18,102 | 17,865 | |||||||||
| Cost of revenue: | |||||||||||||
| Products | 1,146 | 1,235 | 2,187 | 2,434 | |||||||||
| Services | 3,710 | 3,458 | 7,542 | 7,157 | |||||||||
| Reimbursable expenses | 215 | 215 | 410 | 453 | |||||||||
| Total cost of revenue | 5,071 | 4,908 | 10,139 | 10,044 | |||||||||
| Gross profit | 4,028 | 4,539 | 7,963 | 7,821 | |||||||||
| Operating expenses: | |||||||||||||
| Sales and marketing | 1,596 | 1,721 | 3,074 | 3,246 | |||||||||
| General and administration | 1,058 | 945 | 1,992 | 1,773 | |||||||||
| Research and development, net of tax credits | 1,204 | 1,133 | 2,555 | 2,377 | |||||||||
| Total operating expenses | 3,858 | 3,799 | 7,621 | 7,396 | |||||||||
| Profit from operations | 170 | 740 | 342 | 425 | |||||||||
| Finance income | 10 | 5 | 16 | 8 | |||||||||
| Finance costs | (68 | ) | (50 | ) | (86 | ) | (61 | ) | |||||
| Net finance costs | (58 | ) | (45 | ) | (70 | ) | (53 | ) | |||||
| Share of net earnings (loss) of equity-accounted associate | 21 | (26 | ) | 7 | (48 | ) | |||||||
| Profit before income taxes | 133 | 669 | 279 | 324 | |||||||||
| Income taxes | - | 12 | - | 23 | |||||||||
| Profit attributable to the owners of the Company and comprehensive income for the period | $ | 133 | $ | 657 | $ | 279 | $ | 301 | |||||
| Basic and diluted earnings per common share | $ | 0.01 | $ | 0.05 | $ | 0.02 | $ | 0.02 | |||||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Cash Flows |
| (Unaudited) |
| Three and six-month periods ended October 31, 2011 and 2010 |
| (in thousands of Canadian dollars) |
| Three Months | Three Months | Six Months | Six Months | ||||||||||
| Ended | Ended | Ended | Ended | ||||||||||
| October 31, | October 31, | October 31, | October 31, | ||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| Cash flows from operating activities: | |||||||||||||
| Profit for the period | $ | 133 | $ | 657 | $ | 279 | $ | 301 | |||||
| Adjustments for: | |||||||||||||
| Depreciation of property and equipment | 186 | 137 | 355 | 263 | |||||||||
| Depreciation of other intangible assets | 26 | 40 | 55 | 77 | |||||||||
| Depreciation of deferred development costs | 174 | 150 | 355 | 274 | |||||||||
| Share-based compensation | 32 | 10 | 40 | 30 | |||||||||
| Net finance costs | 58 | 45 | 70 | 53 | |||||||||
| Realized foreign exchange gains (losses) | 106 | (75 | ) | 212 | 19 | ||||||||
| Share of net (earnings) loss of equity-accounted associate | (21 | ) | 26 | (7 | ) | 48 | |||||||
| Operating activities excluding changes in non-cash working capital items related to operations | 694 | 990 | 1,359 | 1,065 | |||||||||
| Accounts receivable | (395 | ) | (200 | ) | (591 | ) | (189 | ) | |||||
| Work in progress | (77 | ) | (50 | ) | (175 | ) | (242 | ) | |||||
| Other accounts receivable | (68 | ) | 111 | (1 | ) | 146 | |||||||
| Tax credits | (445 | ) | (378 | ) | (877 | ) | (737 | ) | |||||
| Inventory | (20 | ) | (21 | ) | 15 | (21 | ) | ||||||
| Prepaid expenses | 69 | 176 | (149 | ) | 26 | ||||||||
| Accounts payable and accrued liabilities | (43 | ) | 58 | 14 | 559 | ||||||||
| Deferred revenue | (667 | ) | (609 | ) | (645 | ) | (552 | ) | |||||
| Changes in non-cash working capital items related to operations | (1,646 | ) | (913 | ) | (2,409 | ) | (1,010 | ) | |||||
| Net cash (used in) from operating activities | (952 | ) | 77 | (1,050 | ) | 55 | |||||||
| Cash flows from financing activities: | |||||||||||||
| Bank advances | - | (4 | ) | (3,720 | ) | (2 | ) | ||||||
| Repayment of loans | (17 | ) | - | (17 | ) | - | |||||||
| Issuance of common shares | 190 | 27 | 190 | 27 | |||||||||
| Purchase of common shares for cancellation | (48 | ) | (150 | ) | (57 | ) | (246 | ) | |||||
| Purchase of share options for cancellation | (58 | ) | - | (337 | ) | - | |||||||
| Payment of dividends | (349 | ) | (305 | ) | (349 | ) | (305 | ) | |||||
| Interest paid | (4 | ) | (7 | ) | (11 | ) | (12 | ) | |||||
| Net cash used in financing activities | (286 | ) | (439 | ) | (4,301 | ) | (538 | ) | |||||
| Cash flows from investing activities: | |||||||||||||
| Short-term and other investments | - | - | 325 | - | |||||||||
| Interest received | 10 | 5 | 16 | 8 | |||||||||
| Proceeds from asset-backed commercial paper | - | 5 | 3,584 | 9 | |||||||||
| Acquisitions of property and equipment | (190 | ) | (288 | ) | (336 | ) | (695 | ) | |||||
| Acquisitions of other intangible assets | (41 | ) | (1 | ) | (105 | ) | (11 | ) | |||||
| Deferred development costs | (244 | ) | (267 | ) | (384 | ) | (521 | ) | |||||
| Non-current receivables including the current portion from a related party | 8 | 23 | 19 | 36 | |||||||||
| Net cash (used in) from investing activities | (457 | ) | (523 | ) | 3,119 | (1,174 | ) | ||||||
| Net decrease in cash and cash equivalents during the period | (1,695 | ) | (885 | ) | (2,232 | ) | (1,657 | ) | |||||
| Cash and cash equivalents - beginning of period | 5,867 | 6,484 | 6,404 | 7,256 | |||||||||
| Cash and cash equivalents - end of period | $ | 4,172 | $ | 5,599 | $ | 4,172 | $ | 5,599 | |||||
| TECSYS Inc. |
| Condensed Interim Consolidated Statements of Changes in Equity |
| (Unaudited) |
| Six-month periods ended October 31, 2011 and 2010 |
| (in thousands of Canadian dollars, except number of shares) |
| Share capital | Contributed | Retained | Total | ||||||||||||
| Number | Amount | surplus | earnings | ||||||||||||
| Balance, April 30, 2011 | 11,678,671 | $ | 1,467 | $ | 10,993 | $ | 3,486 | $ | 15,946 | ||||||
| Profit and comprehensive income for the period | - | - | - | 279 | 279 | ||||||||||
| Total comprehensive income for the period | - | - | - | 279 | 279 | ||||||||||
| Repurchase of common shares | (26,500 | ) | (3 | ) | (54 | ) | - | (57 | ) | ||||||
| Repurchase of share options | - | - | (279 | ) | - | (279 | ) | ||||||||
| Share options exercised | 114,400 | 190 | - | - | 190 | ||||||||||
| Fair value associated with options exercised | - | 48 | - | - | 48 | ||||||||||
| Fair value of share options transferred to liabilities | - | - | (319 | ) | - | (319 | ) | ||||||||
| Share-based compensation | - | - | 40 | - | 40 | ||||||||||
| Dividends to equity owners | - | - | - | (349 | ) | (349 | ) | ||||||||
| Total transactions with owners of the Company | 87,900 | 235 | (612 | ) | (349 | ) | (726 | ) | |||||||
| Balance, October 31, 2011 | 11,766,571 | $ | 1,702 | $ | 10,381 | 3,416 | $ | 15,499 | |||||||
| Balance, May 1, 2010 | 12,225,306 | $ | 1,386 | $ | 12,103 | $ | 2,573 | $ | 16,062 | ||||||
| Profit and comprehensive income for the period | - | - | - | 301 | 301 | ||||||||||
| Total comprehensive income for the period | - | - | - | 301 | 301 | ||||||||||
| Repurchase of common shares | (123,753 | ) | (14 | ) | (232 | ) | - | (246 | ) | ||||||
| Stock options exercised | 18,043 | 27 | - | - | 27 | ||||||||||
| Fair value associated with options exercised | - | 12 | (12 | ) | - | - | |||||||||
| Share-based compensation | - | - | 30 | - | 30 | ||||||||||
| Dividends to equity owners | - | - | - | (305 | ) | (305 | ) | ||||||||
| Total transactions with owners of the Company | (105,710 | ) | 25 | (214 | ) | (305 | ) | (494 | ) | ||||||
| Balance, October 31, 2010 | 12,119,596 | $ | 1,411 | $ | 11,889 | $ | 2,569 | $ | 15,869 | ||||||
Contact Information:
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649