MONTREAL, QUEBEC--(Marketwired - Sept. 10, 2015) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, today announced its results for the first quarter of fiscal year 2016, ended July 31, 2015.
All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS) and are unaudited.
First Quarter Highlights:
- Revenue grew 15% to $14.9M in Q1 2016 compared to $13.0M in Q1 2015.
- Proprietary products revenue grew 3% to $2.1M.
- Services revenue improved by 18% to $10.3M.
- Gross margin in Q1 2016 reached 50% compared to 47% in Q1 2015, owing to improved gross margin from services of 47%, up from 41% in Q1 2015.
- Recurring revenue on an annualized basis grew to $23.0M, a 24% improvement compared to the end of Q1 2015, representing 39% of the last 12 months trailing revenue.
- EBITDA was $0.8M for Q1 2016, compared to $1.0M recorded in Q1 2015.
- Profit from operations was $207K in Q1 2016, compared to $474K in Q1 2015.
- Total contract bookings in the first quarter totaled $6.7M, compared to $9.7M in the prior year period.
- Backlog grew to $44.8M at the end of Q1 2016 from $33.6M at the end of Q1 2015, a 33% increase.
- Net cash from operating activities amounted to $2.0M in Q1 2016 compared to $286K in Q1 2015.
- Cash and cash equivalents totaled $11.9M at the end of Q1 2016 compared to $10.8M at the end of Q4 2015.
- Signed 2 new Hospital Networks (IDNs) in the United States including one that distributes to several smaller IDNs.
"Our team continues to make great progress capitalizing on our strong order backlog and sales pipeline, resulting in progressive revenue expansion and gross margin improvement," said Peter Brereton, President and CEO of TECSYS Inc. "We signed two new IDNs in the quarter, further evidence of the positive response we've seen from our clients to the value proposition our robust platform affords them. In response to this continued market momentum, we have significantly increased our investment in sales, marketing, and R&D in order to capitalize on the opportunity we see in this space. We are in an excellent position within our core markets and see a great opportunity to grow our business and continue to deliver solid results."
TECSYS also announced that the Company's Board of Directors has declared a quarterly dividend of $0.025 per share, to be paid on October 9, 2015 to shareholders of record at the close of business on September 25, 2015.
First Quarter 2016 Results Conference Call
| Date: | September 10, 2015 |
| Time: | 4:30 pm EST |
| Phone number: | 800-728-2059 or 416-981-9030 |
The call can be replayed by calling 800-558-5253 (access code: 21775872) or 416-626-4100 (access code: 21775872).
About TECSYS
TECSYS provides transformative supply chain solutions that equip our customers to succeed in a rapidly- changing omni-channel world. TECSYS solutions are built on a true enterprise supply chain platform, and include warehouse management, distribution and transportation management, as well as complete financial management and analytics. Customers running on TECSYS' Supply Chain Platform are confident knowing they can execute, day in and day out, regardless of business fluctuations or changes in technology, they can adapt and scale to any business needs or size, and they can expand and collaborate with customers, suppliers and partners as one borderless enterprise. From demand planning to demand fulfillment, TECSYS puts power into the hands of both front line workers and back office planners, and unshackles business leaders so they can see and manage their supply chains like never before.
TECSYS is the market leader in supply chain solutions for health systems and hospitals. Over 600 mid-size and Fortune 1000 customers trust their supply chains to TECSYS in the healthcare, service parts, 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, 2015. 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 July 31, 2015 and April 30, 2015 | ||||||
| (in thousands of Canadian dollars) | ||||||
| July 31, | April 30, | |||||
| 2015 | 2015 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 11,896 | $ | 10,815 | ||
| Accounts receivable | 11,756 | 12,570 | ||||
| Work in progress | 1,164 | 704 | ||||
| Other accounts receivable | 504 | 434 | ||||
| Tax credits | 3,369 | 5,369 | ||||
| Inventory | 1,038 | 1,059 | ||||
| Prepaid expenses | 1,619 | 1,394 | ||||
| Total current assets | 31,346 | 32,345 | ||||
| Non-current assets | ||||||
| Tax credits | 1,613 | 1,538 | ||||
| Property and equipment | 2,439 | 2,526 | ||||
| Deferred development costs | 4,410 | 4,348 | ||||
| Other intangible assets | 2,100 | 2,184 | ||||
| Goodwill | 3,596 | 3,596 | ||||
| Deferred tax assets | 776 | 840 | ||||
| Total non-current assets | 14,934 | 15,032 | ||||
| Total assets | $ | 46,280 | $ | 47,377 | ||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 7,957 | $ | 8,817 | ||
| Current portion of long-term debt | 1,470 | 1,456 | ||||
| Deferred revenue | 11,055 | 10,098 | ||||
| Total current liabilities | 20,482 | 20,371 | ||||
| Non-current liabilities | ||||||
| Long-term debt | 2,952 | 3,333 | ||||
| Other non-current liabilities | 306 | 311 | ||||
| Total non-current liabilities | 3,258 | 3,644 | ||||
| Total liabilities | 23,740 | 24,015 | ||||
| Equity | ||||||
| Share capital | 8,349 | 8,349 | ||||
| Contributed surplus | 9,577 | 9,577 | ||||
| Retained earnings | 5,102 | 5,341 | ||||
| Accumulated other comprehensive (loss) income | (488 | ) | 95 | |||
| Total equity attributable to the owners of the Company | 22,540 | 23,362 | ||||
| Total liabilities and equity | $ | 46,280 | $ | 47,377 | ||
| TECSYS Inc. | |||||||
| Condensed Interim Consolidated Statements of Income and Comprehensive Income | |||||||
| (Unaudited) | |||||||
| Three month periods ended July 31, 2015 and 2014 | |||||||
| (in thousands of Canadian dollars, except per share data) | |||||||
| Three Months | Three Months | ||||||
| Ended | Ended | ||||||
| July 31, | July 31, | ||||||
| 2015 | 2014 | ||||||
| Revenue: | |||||||
| Proprietary products | $ | 2,148 | $ | 2,079 | |||
| Third-party hardware and software products | 2,064 | 1,778 | |||||
| Services | 10,316 | 8,743 | |||||
| Reimbursable expenses | 403 | 412 | |||||
| Total revenue | 14,931 | 13,012 | |||||
| Cost of revenue: | |||||||
| Products | 1,608 | 1,329 | |||||
| Services | 5,500 | 5,185 | |||||
| Reimbursable expenses | 403 | 412 | |||||
| Total cost of revenue | 7,511 | 6,926 | |||||
| Gross profit | 7,420 | 6,086 | |||||
| Operating expenses: | |||||||
| Sales and marketing | 3,592 | 2,611 | |||||
| General and administration | 1,369 | 1,427 | |||||
| Research and development, net of tax credits | 2,252 | 1,574 | |||||
| Total operating expenses | 7,213 | 5,612 | |||||
| Profit from operations | 207 | 474 | |||||
| Net finance costs | 40 | 56 | |||||
| Profit before income taxes | 167 | 418 | |||||
| Income taxes | 98 | 75 | |||||
| Profit attributable to the owners of the Company | $ | 69 | $ | 343 | |||
| Other comprehensive loss: | |||||||
| Effective portion of changes in fair value on designated revenue hedges | (583 | ) | (68 | ) | |||
| Comprehensive (loss) income attributable to the owners of the Company | $ | (514 | ) | $ | 275 | ||
| Basic and diluted earnings per common share | $ | 0.01 | $ | 0.03 | |||
| TECSYS Inc. | |||||||
| Condensed Interim Consolidated Statements of Cash Flows | |||||||
| (Unaudited) | |||||||
| Thee-month periods ended July 31, 2015 and 2014 | |||||||
| (in thousands of Canadian dollars) | |||||||
| Three Months | Three Months | ||||||
| Ended | Ended | ||||||
| July 31, | July 31, | ||||||
| 2015 | 2014 | ||||||
| Cash flows from (used in) operating activities: | |||||||
| Profit for the period | $ | 69 | $ | 343 | |||
| Adjustments for: | |||||||
| Depreciation of property and equipment | 187 | 183 | |||||
| Depreciation of deferred development costs | 337 | 292 | |||||
| Depreciation of other intangible assets | 118 | 82 | |||||
| Gain on disposal of property and equipment | (12 | ) | - | ||||
| Net finance costs | 40 | 56 | |||||
| Unrealized foreign exchange and others | 340 | (108 | ) | ||||
| Federal non-refundable research and development tax credits | (75 | ) | (75 | ) | |||
| Income taxes | 75 | 75 | |||||
| Operating activities excluding changes in non-cash working capital items related to operations | 1,079 | 848 | |||||
| Accounts receivable | 814 | (326 | ) | ||||
| Work in progress | (460 | ) | 621 | ||||
| Other accounts receivable | (286 | ) | (269 | ) | |||
| Tax credits | 2,000 | (559 | ) | ||||
| Inventory | 21 | 53 | |||||
| Prepaid expenses | (225 | ) | (230 | ) | |||
| Accounts payable and accrued liabilities | (1,859 | ) | (577 | ) | |||
| Deferred revenue | 957 | 725 | |||||
| Changes in non-cash working capital items related to operations | 962 | (562 | ) | ||||
| Net cash from operating activities | 2,041 | 286 | |||||
| Cash flows used in financing activities: | |||||||
| Repayment of bank loans | - | (140 | ) | ||||
| Repayment of long-term debt | (367 | ) | (262 | ) | |||
| Purchase of share options for cancellation | - | (7 | ) | ||||
| Interest paid | (40 | ) | (37 | ) | |||
| Net cash used in financing activities | (407 | ) | (446 | ) | |||
| Cash flows (used in) from investing activities: | |||||||
| Restricted cash equivalents | - | 40 | |||||
| Interest received | 18 | 9 | |||||
| Acquisitions of property and equipment | (150 | ) | (46 | ) | |||
| Proceeds on disposal of property and equipment | 12 | - | |||||
| Acquisitions of other intangible assets | (34 | ) | (24 | ) | |||
| Deferred development costs | (399 | ) | (393 | ) | |||
| Receivables from TECSYS Latin America Inc. | - | 1 | |||||
| Business combination, net of cash and cash equivalents acquired | - | (2,949 | ) | ||||
| Net cash used in investing activities | (553 | ) | (3,362 | ) | |||
| Net increase (decrease) in cash and cash equivalents during the period | 1,081 | (3,522 | ) | ||||
| Cash and cash equivalents - beginning of period | 10,815 | 8,839 | |||||
| Cash and cash equivalents - end of period | $ | 11,896 | $ | 5,317 | |||
| TECSYS Inc. | |||||||||||
| Condensed Interim Consolidated Statements of Changes in Equity | |||||||||||
| (Unaudited) | |||||||||||
| Three-month periods ended July 31, 2015 and 2014 | |||||||||||
| (in thousands of Canadian dollars, except number of shares) | |||||||||||
| Share capital | Contributed | Accumulated | Retained | Total | |||||||
| Number | Amount | surplus | other comprehensive | earnings | |||||||
| income (loss) | |||||||||||
| Balance, April 30, 2015 | 12,315,326 | $ 8,349 | $ 9,577 | $ 95 | $ 5,341 | $ 23,362 | |||||
| Profit for the period | - | - | - | - | 69 | 69 | |||||
| Other comprehensive loss for the period: | |||||||||||
| Effective portion of changes in fair value on designated revenue hedges | - | - | - | (583 | ) | - | (583 | ) | |||
| Total comprehensive income for the period | - | - | - | (583 | ) | 69 | (514 | ) | |||
| Dividends to equity owners | - | - | - | - | (308 | ) | (308 | ) | |||
| Total transactions with owners of the Company | - | - | - | - | (308 | ) | (308 | ) | |||
| Balance, July 31, 2015 | 12,315,326 | $ 8,349 | $ 9,577 | $ (488 | ) | $ 5,102 | $ 22,540 | ||||
| Balance, April 30, 2014 | 11,524,421 | $ 2,153 | $ 9,577 | $ - | $ 4,864 | $ 16,594 | |||||
| Profit for the period | - | - | - | - | 343 | 343 | |||||
| Other comprehensive loss for the period: | |||||||||||
| Effective portion of changes in fair value on designated revenue hedges | - | - | - | (68 | ) | - | (68 | ) | |||
| Total comprehensive income for the period | - | - | - | (68 | ) | 343 | 275 | ||||
| Common shares issued related to purchase of Logi D Holding Inc. | 15,625 | 100 | - | - | - | 100 | |||||
| Dividends to equity owners | - | - | - | - | (260 | ) | (260 | ) | |||
| Total transactions with owners of the Company | 15,625 | 100 | - | - | (260 | ) | (160 | ) | |||
| Balance, July 31, 2014 | 11,540,046 | $ 2,253 | $ 9,577 | $ (68 | ) | $ 4,947 | $ 16,709 | ||||
Contact Information:
Investor relations: steve.li@tecsys.com
(514) 866-5800 ext. 4120
Media relations: media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649