MONTREAL, QUEBEC--(Marketwire - March 3, 2011) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the third quarter of fiscal year 2011, ended January 31, 2011. All dollar amounts are expressed in Canadian currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP) and are unaudited.
Highlights of the Third Quarter include:
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Revenue increased 6% to $9.3M in Q3, 2011 from $8.8M in Q3, 2010. The increase is primarily attributable to improvement in license revenue for the Company's proprietary product. During Q3, 2011, the stronger Canadian dollar against the U.S. dollar had a negative revenue impact of about $225K compared to Q3, 2010.
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Earnings from operations for the third quarter, 2011 reached $417K up from $142K in Q3, 2010.
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Net earnings were significantly higher in the third quarter, 2011 reaching $750K or $0.06 per share compared to $62K or $0.00 per share for the third quarter of last fiscal year. Net earnings for the quarter include a $302K increase in the valuation of the Asset Backed Commercial Paper (ABCP) being held by the company.
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EBITDA for Q3, 2011 also increased to $1,138K from $458K in Q3 of last fiscal year.
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At the end of Q3, 2011 annualized recurring revenue in Canadian currency increased to $14M compared to $13.2M at the end of Q3, 2010. Annualized recurring revenue at the end of Q3, 2011 represented 39% of the Company's last 12 months revenue.
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Backlog increased to $20.8M at the end of Q3, 2011, compared to $17.8M at the end of Q3, 2010.
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Cash from operations amounted to $1.3M during the third quarter, up from $617K, during the same quarter of the prior year.
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Cash, cash equivalents and other short-term investments amounted to $7.0M at the end of Q3, 2011, compared to $7.5M at the end of Q3, 2010 with no significant long-term debt.
TECSYS also announced today that the Company's Board of Directors has increased the semi-annual dividend by 20% to $0.03/share, to be paid on March 31st, 2011 to shareholders of record on March 17, 2011.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "Good growth in our top line through greater revenue contribution by our proprietary software drove overall revenue up by 6%, enabling us to continue with our profitability trend and achieve 6 cents EPS for the quarter. This is in spite of currency headwinds. Our leading position in the healthcare supply chain industry continued to prove to be a key contributor to our growth, with a strategic win of a high profile and sizeable hospital network in United States. Healthcare providers need safe, efficient and cost effective supply chains. Over the past couple of years, we have seen hospital supply network leadership evolve to a new state of readiness for improvement. They are no longer in a "wait and see" mode, but are beginning to take concrete steps to address their supply chain challenges."
During the quarter, the Company signed 30 agreements with new and base account clients across its business units, with significant value coming from the healthcare market; four agreements were signed with existing healthcare clients, and one with a major new client in the hospital supply network space in the United States. The Company also deployed its software at 19 customer sites, 50% of these deployments were at major customers in North America, most notably in healthcare.
Highlights of the first Nine Months of fiscal year 2011 include:
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Revenue for first nine months, 2011 was $27.2M compared to $27.9 for the same period of last fiscal year. As a result of a stronger Canadian dollar against the U.S. dollar, revenue was negatively impacted by about $870K during the first nine months of 2011 compared to the same period of the last fiscal year.
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Earnings from operations for the first nine months, 2011 were $765K compared to $1,255K for the same period in last fiscal year.
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Cash from operations was $845K, compared to $859K for the same period of last year.
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Net earnings for the first nine months of fiscal, 2011 were $974K or $0.08 per share compared to $916K or $0.07 per share for the same period of the prior fiscal year.
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EBITDA for first nine months, 2011 was $2,080K compared to $2,032K for the same period in 2010.
TECSYS' Third Quarter 2011 Earnings Conference Call:
Subject: Third Quarter FY2011 Results Conference Call |
Date: March 3, 2011 |
Time: 4:30 pm |
Phone number: 800-909-4761 or 416-981-9035 |
The call can be replayed by calling 800-558-5253 (access code: 21513248) or 416-626-4100 (access code: 21513248).
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, 2010. 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. |
Consolidated Balance Sheets |
Prepared in Accordance with Canadian Generally Accepted Accounting Principles |
(in thousands of Canadian dollars) | ||
January 31, | April 30, | |
2011 | 2010 | |
(unaudited) | ||
Assets | ||
Current assets | ||
Cash and cash equivalents | 6,122 | 7,256 |
Short-term and other investments | 850 | 850 |
Accounts receivable | 8,489 | 7,346 |
Work in progress | 152 | 66 |
Other accounts receivable | 102 | 425 |
Tax credits receivable | 1,513 | 1,914 |
Inventory | 198 | 171 |
Prepaid expenses | 921 | 879 |
Future tax assets | 142 | 142 |
18,489 | 19,049 | |
Restricted cash equivalents and other investments | 200 | 200 |
Asset-backed commercial paper | 3,797 | 3,514 |
Long-term receivables | 27 | 48 |
Investment tax credits | 930 | 930 |
Long-term investment | 150 | 211 |
Property and equipment | 2,382 | 2,472 |
Intangible assets | 486 | 623 |
Deferred development costs | 2,310 | 1,991 |
Future tax assets | 453 | 453 |
Goodwill | 2,804 | 2,804 |
32,028 | 32,295 | |
Liabilities | ||
Current liabilities | ||
Bank advances | 3,943 | 3,951 |
Accounts payable and accrued liabilities | 5,467 | 5,305 |
Current portion of long-term debt | 107 | 249 |
Deferred revenue | 5,571 | 5,827 |
15,088 | 15,332 | |
Shareholders' equity | ||
Capital stock | 1,485 | 1,386 |
Contributed surplus | 11,140 | 11,931 |
Retained earnings | 4,315 | 3,646 |
16,940 | 16,963 | |
32,028 | 32,295 |
TECSYS Inc. |
Consolidated Statements of Earnings and Comprehensive Earnings |
Prepared in Accordance with Canadian Generally Accepted Accounting Principles |
(in thousands of Canadian dollars, except share and per share data) | |||||||||
Three Months Ended January 31, 2011 |
Three Months Ended January 31, 2010 |
Nine Months Ended January 31, 2011 |
Nine Months Ended January 31, 2010 |
||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Revenue | |||||||||
Products | 3,609 | 2,774 | 9,943 | 9,866 | |||||
Services | 5,477 | 5,740 | 16,555 | 17,240 | |||||
Reimbursable expenses | 213 | 286 | 666 | 819 | |||||
9,299 | 8,800 | 27,164 | 27,925 | ||||||
Cost of revenue | |||||||||
Products | 1,629 | 1,203 | 4,039 | 3,535 | |||||
Services | 3,420 | 3,482 | 10,395 | 10,781 | |||||
Reimbursable expenses | 213 | 286 | 666 | 819 | |||||
5,262 | 4,971 | 15,100 | 15,135 | ||||||
Gross margin | 4,037 | 3,829 | 12,064 | 12,790 | |||||
Operating expenses | |||||||||
Sales and marketing | 1,362 | 1,376 | 4,563 | 4,267 | |||||
General and administration | 924 | 806 | 2,648 | 2,744 | |||||
Gross research and development | 1,465 | 1,589 | 4,440 | 4,614 | |||||
Research and development tax credits | (342 | ) | (262 | ) | (763 | ) | (609 | ) | |
Deferred development costs | (222 | ) | (229 | ) | (743 | ) | (621 | ) | |
Stock-based compensation | 19 | 32 | 80 | 92 | |||||
Amortization of property and equipment | 216 | 153 | 489 | 401 | |||||
Amortization of intangible assets | 48 | 131 | 161 | 375 | |||||
Amortization of deferred development costs | 150 | 91 | 424 | 272 | |||||
3,620 | 3,687 | 11,299 | 11,535 | ||||||
Earnings from operations | 417 | 142 | 765 | 1,255 | |||||
Interest income | 15 | 2 | 23 | 14 | |||||
Interest expense | 15 | (8 | ) | 3 | (18 | ) | |||
Foreign exchange gains (losses) | 14 | (27 | ) | (35 | ) | (221 | ) | ||
Changes in fair value of asset-backed commercial paper | 302 | - | 302 | - | |||||
Share of net loss and amortization of intangible assets of a company subject to significant influence | (13 | ) | (47 | ) | (61 | ) | (96 | ) | |
Earnings before income taxes | 750 | 62 | 997 | 934 | |||||
Income taxes | - | - | 23 | 18 | |||||
Net earnings and comprehensive earnings for the period | 750 | 62 | 974 | 916 | |||||
Weighted average number of common shares outstanding | |||||||||
- basic | 12,081,013 | 12,341,102 | 12,149,318 | 12,395,115 | |||||
- diluted | 12,212,537 | 12,568,344 | 12,300,747 | 12,571,301 | |||||
Basic and diluted net earnings per common share | $0.06 | $- | $0.08 | $0.07 |
TECSYS Inc. |
Consolidated Statements of Cash Flows |
Prepared in Accordance with Canadian Generally Accepted Accounting Principles |
(in thousands of Canadian dollars) | |||||||||
Three Months Ended January 31, 2011 |
Three Months Ended January 31, 2010 |
Nine Months Ended January 31, 2011 |
Nine Months Ended January 31, 2010 |
||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Cash flows from | |||||||||
Operating activities | |||||||||
Net earnings for the period | 750 | 62 | 974 | 916 | |||||
Adjustments for | |||||||||
Amortization of property and equipment | 216 | 153 | 489 | 401 | |||||
Amortization of intangible assets | 48 | 131 | 161 | 375 | |||||
Amortization of deferred development costs | 150 | 91 | 424 | 272 | |||||
Stock-based compensation | 19 | 32 | 80 | 92 | |||||
Changes in fair value of asset-backed commercial paper | (302 | ) | - | (302 | ) | - | |||
Unrealized foreign exchange (gains) losses | (32 | ) | 137 | 36 | 17 | ||||
Deferred development costs | (222 | ) | (229 | ) | (743 | ) | (621 | ) | |
Share of net loss and amortization of intangible assets of a company subject to | |||||||||
significant influence | 13 | 47 | 61 | 96 | |||||
640 | 424 | 1,180 | 1,548 | ||||||
Changes in non-cash working capital items related to operations | |||||||||
(Increase) decrease in accounts receivable | (954 | ) | 1,220 | (1,143 | ) | 1,262 | |||
Decrease (increase) in work in progress | 156 | 131 | (86 | ) | 203 | ||||
Decrease (increase) in other accounts receivable | 109 | (5 | ) | 255 | 3 | ||||
Decrease (increase) in tax credits receivable | 1,138 | (391 | ) | 401 | (854 | ) | |||
(Increase) decrease in inventory | (6 | ) | 3 | (27 | ) | 12 | |||
(Increase) decrease in prepaid expenses | (68 | ) | 33 | (42 | ) | (135 | ) | ||
Increase (decrease) in accounts payable and accrued liabilities | 4 | (292 | ) | 563 | (1,035 | ) | |||
Increase (decrease) in deferred revenue | 296 | (506 | ) | (256 | ) | (145 | ) | ||
1,315 | 617 | 845 | 859 | ||||||
Financing activities | |||||||||
Bank advances | (6 | ) | (9 | ) | (8 | ) | (31 | ) | |
Purchase price adjustments on acquisition applied against long-term debt | - | 17 | - | 17 | |||||
Repayment of long-term debt | (142 | ) | - | (142 | ) | - | |||
Issuance of common shares | 77 | - | 104 | - | |||||
Purchase of common shares for cancellation | (630 | ) | (100 | ) | (876 | ) | (389 | ) | |
Payment of dividends | - | - | (305 | ) | (310 | ) | |||
(701 | ) | (92 | ) | (1,227 | ) | (713 | ) | ||
Investing activities | |||||||||
Increase in short-term and other investments and restricted cash equivalents and other investments | - | - | - | (201 | ) | ||||
Interest and principal received on asset-backed commercial paper | 10 | 29 | 19 | 124 | |||||
Acquisitions of property and equipment | (105 | ) | (131 | ) | (800 | ) | (311 | ) | |
Acquisitions of intangible assets | (13 | ) | (5 | ) | (24 | ) | (41 | ) | |
Decrease (increase) in long-term receivables including the current portion from a related party | 17 | 16 | 53 | (3 | ) | ||||
(91 | ) | (91 | ) | (752 | ) | (432 | ) | ||
Increase (decrease) in cash and cash equivalents | 523 | 434 | (1,134 | ) | (286 | ) | |||
Cash and cash equivalents - beginning of period | 5,599 | 6,790 | 7,256 | 7,510 | |||||
Cash and cash equivalents - end of period | 6,122 | 7,224 | 6,122 | 7,224 |
TECSYS Inc. |
Consolidated Statements of Shareholders' Equity |
Prepared in Accordance with Canadian Generally Accepted Accounting Principles |
(in thousands of Canadian dollars, except number of shares) | ||||||||||
(unaudited) | ||||||||||
Capital stock | Contributed | Retained | Total | |||||||
Number | Amount | surplus | earnings | |||||||
Balance, April 30, 2010 | 12,225,306 | 1,386 | 11,931 | 3,646 | 16,963 | |||||
Repurchase of common shares | (456,553 | ) | (52 | ) | (824 | ) | - | (876 | ) | |
Stock options exercised | 73,718 | 104 | - | - | 104 | |||||
Fair value associated with options exercised | - | 47 | (47 | ) | - | - | ||||
Stock-based compensation | - | - | 80 | - | 80 | |||||
Net earnings for the period | - | - | - | 974 | 974 | |||||
Dividends | - | - | - | (305 | ) | (305 | ) | |||
Balance, January 31, 2011 | 11,842,471 | 1,485 | 11,140 | 4,315 | 16,940 | |||||
Capital stock | Contributed | Retained | Total | |||||||
Number | Amount | surplus | earnings | |||||||
Balance, April 30, 2009 | 12,525,884 | 1,420 | 12,328 | 2,082 | 15,830 | |||||
Repurchase of common shares | (207,340 | ) | (23 | ) | (366 | ) | - | (389 | ) | |
Stock options exercised | 281 | - | - | - | - | |||||
Stock-based compensation | - | - | 92 | - | 92 | |||||
Net earnings for the period | - | - | - | 916 | 916 | |||||
Dividends | - | - | - | (310 | ) | (310 | ) | |||
Balance, January 31, 2010 | 12,318,825 | 1,397 | 12,054 | 2,688 | 16,139 |
Contact Information: TECSYS Inc.
514-866-0001 or 800-922-8649
or
Solutions and general info: info@tecsys.com
Investor relations: investor@tecsys.com
Media relations: media@tecsys.com