MONTREAL, QUEBEC--(Marketwired - July 9, 2013) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, announced today its results for the fourth quarter and 2013 fiscal year ended April 30th, 2013. The results of the 2013 fiscal year are audited. All dollar amounts are expressed in Canadian currency and reported in accordance with the International Financial Reporting Standards (IFRS).
Overall highlights for the Fourth Quarter:
- Total bookings in the quarter were the highest in the company's history;
- Won the business of ten new customers; most notably two major health systems, as well as a leading manufacturer and distributor of medical products;
- Revenue grew by 3% and services revenue increased by 22%;
- The leading industry analyst's firm once again reaffirmed the Company's "visionary" position in the warehouse management space;
- Existing clients from across its business units continued to invest in products and services - forty-five new agreements were concluded in the quarter;
- Deployed its supply chain execution solutions at thirteen customers in Canada, the United States and the United Kingdom.
Financial Highlights for the Fourth Quarter:
- Revenue increased by 3% to $11.1M in Q4, 2013 compared to $10.8M in Q4, 2012.
- EBITDA for the quarter was $748K compared to $1,273K in Q4, 2012.
- Profit from operations for Q4, 2013 was $256K compared to $735K in Q4, 2012.
- Net profit for Q4, 2013 was $181K or $0.02 per share compared to $473K or $0.04 per share for Q4, 2012.
- Backlog increased to $27.2M at the end of Q4, 2013 compared to $26.3M at the end of Q4, 2012.
- At the end of Q4, 2013, annualized recurring revenue in Canadian currency increased by 4% to $15.4M, compared to $14.8M at the end of Q4, 2012. Annualized recurring revenue at the end of Q4, 2013 represented 35% of the Company's revenue for the last 12 months.
- Cash, cash equivalents and other short-term investments amounted to $5.3M at the end of Q4, 2013, compared to $5.2M at the end of Q4, 2012.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "This was an investment year, as we increased gross R&D by 20%, while also investing heavily in our services organization with average headcount in services up by 31%. It is beginning to pay off, with license fees up 27% for the year, and services revenue beginning to rise significantly toward the end of the year, up 22% in Q4. During the quarter, we won the business of ten new customers including two major health systems, reinforcing our continued acceptance and leadership in this vertical. We also saw significant reinvestment in our products and services by forty-five existing customers. New contract bookings in the quarter were the highest in our history."
Highlights of the 2013 Fiscal Year include:
- Revenue for fiscal 2013 increased by 11% to $43.8M compared to $39.5M for last fiscal year. License revenue increased by 27% to $9.3M in 2013 compared to $7.3M in 2012. Services revenue increased by 14% to $27.5M in 2013 compared to $24.1M in 2012.
- Profit from operations for fiscal year 2013 was $1,268K compared to $1,455K for last fiscal year.
- EBITDA was $2,966K in 2013 compared to $3,075K in fiscal year 2012.
- Net profit for 2013 was $885K or $0.08 per share compared to $1,057K or $0.09 per share for 2012.
- Net profit, adjusted for the impact of option expense due to the rising share price, was roughly flat at $1,127K in fiscal 2013 versus $1,124K in fiscal 2012, or $0.10 per share for both periods.
TECSYS' Fourth Quarter 2013 Earnings Conference Call:
| Subject: Q4 and FY2013 Results Conference Call |
| Date: July 9, 2013 |
| Time: 4:30 pm EDT |
| Phone number: 800-734-8583 or 416-981-9023 |
| The call can be replayed by calling 800-558-5253 (access code: 21662429) or 416-626-4100 (access code: 21662429). |
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, 2012. 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. | ||||||
| Consolidated Statements of Financial Position | ||||||
| As at April 30, 2013 and April 30, 2012 | ||||||
| (in thousands of Canadian dollars) | ||||||
| April 30, | April 30, | |||||
| 2013 | 2012 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 5,348 | $ | 5,217 | ||
| Accounts receivable | 7,959 | 8,207 | ||||
| Work in progress | 1,291 | 645 | ||||
| Other accounts receivable and derivatives | 132 | 190 | ||||
| Tax credits | 4,675 | 2,070 | ||||
| Inventory | 545 | 696 | ||||
| Prepaid expenses | 1,153 | 1,177 | ||||
| Total current assets | 21,103 | 18,202 | ||||
| Non-current assets | ||||||
| Restricted cash equivalents and other investments | 120 | 160 | ||||
| Non-current receivables | 39 | 99 | ||||
| Tax credits | 1,219 | 1,076 | ||||
| Property and equipment | 2,928 | 2,911 | ||||
| Deferred development costs | 3,317 | 2,514 | ||||
| Other intangible assets | 544 | 362 | ||||
| Goodwill | 2,239 | 2,239 | ||||
| Deferred tax assets | 710 | 587 | ||||
| Total non-current assets | 11,116 | 9,948 | ||||
| Total assets | $ | 32,219 | $ | 28,150 | ||
| Liabilities | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 4,997 | $ | 5,685 | ||
| Loans payable | 70 | 85 | ||||
| Term loan | 1,000 | - | ||||
| Deferred revenue | 7,161 | 6,665 | ||||
| Total current liabilities | 13,228 | 12,435 | ||||
| Term loan | 3,500 | - | ||||
| Other non-current liabilities | 225 | 159 | ||||
| Total non-current liabilities | 3,725 | 159 | ||||
| Total liabilities | 16,953 | 12,594 | ||||
| Equity | ||||||
| Share capital | 1,748 | 1,688 | ||||
| Contributed surplus | 9,588 | 10,023 | ||||
| Retained earnings | 3,930 | 3,845 | ||||
| Total equity attributable to the owners of the Company | 15,266 | 15,556 | ||||
| Total liabilities and equity | $ | 32,219 | $ | 28,150 | ||
| TECSYS Inc. | |||||||||||||
| Consolidated Statements of Comprehensive Income | |||||||||||||
| Three-month periods and years ended April 30, 2013 and 2012 | |||||||||||||
| (in thousands of Canadian dollars, except per share data) | |||||||||||||
| Three Months | Three Months | Year | Year | ||||||||||
| Ended | Ended | Ended | Ended | ||||||||||
| April 30, | April 30, | April 30, | April 30, | ||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||
| Revenue: | |||||||||||||
| Software products | $ | 1,986 | $ | 2,999 | $ | 9,307 | $ | 7,307 | |||||
| Third-party hardware and software products | 1,421 | 1,502 | 5,853 | 7,244 | |||||||||
| Services | 7,376 | 6,057 | 27,458 | 24,078 | |||||||||
| Reimbursable expenses | 334 | 247 | 1,141 | 873 | |||||||||
| Total revenue | 11,117 | 10,805 | 43,759 | 39,502 | |||||||||
| Cost of revenue: | |||||||||||||
| Products | 1,046 | 1,084 | 4,263 | 4,944 | |||||||||
| Services | 5,232 | 4,565 | 20,072 | 16,234 | |||||||||
| Reimbursable expenses | 334 | 247 | 1,141 | 873 | |||||||||
| Total cost of revenue | 6,612 | 5,896 | 25,476 | 22,051 | |||||||||
| Gross profit | 4,505 | 4,909 | 18,283 | 17,451 | |||||||||
| Operating expenses: | |||||||||||||
| Sales and marketing | 2,087 | 2,110 | 7,796 | 7,004 | |||||||||
| General and administration | 909 | 972 | 3,881 | 4,015 | |||||||||
| Research and development, net of tax credits | 1,253 | 1,068 | 5,338 | 4,956 | |||||||||
| Other | - | 24 | - | 21 | |||||||||
| Total operating expenses | 4,249 | 4,174 | 17,015 | 15,996 | |||||||||
| Profit from operations | 256 | 735 | 1,268 | 1,455 | |||||||||
| Finance income | 14 | 15 | 46 | 37 | |||||||||
| Finance costs | (19 | ) | (14 | ) | (354 | ) | (157 | ) | |||||
| Net finance (costs) income | (5 | ) | 1 | (308 | ) | (120 | ) | ||||||
| Share of net loss of equity-accounted associate | - | - | - | (15 | ) | ||||||||
| Gain on sale of the investment in equity-accounted associate | - | 67 | - | 67 | |||||||||
| Profit before income taxes | 251 | 803 | 960 | 1,387 | |||||||||
| Income taxes | 70 | 330 | 75 | 330 | |||||||||
| Profit attributable to the owners of the Company and comprehensive income for the period | $ | 181 | $ | 473 | $ | 885 | $ | 1,057 | |||||
| Basic and diluted earnings per common share | $ | 0.02 | $ | 0.04 | $ | 0.08 | $ | 0.09 | |||||
| TECSYS Inc. | |||||||||||||
| Consolidated Statements of Cash Flows | |||||||||||||
| Three-month periods and years ended April 30, 2013 and 2012 | |||||||||||||
| (in thousands of Canadian dollars) | |||||||||||||
| Three Months | Three Months | Year | Year | ||||||||||
| Ended | Ended | Ended | Ended | ||||||||||
| April 30, | April 30, | April 30, | April 30, | ||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||
| Cash flows (used in) from operating activities: | |||||||||||||
| Profit for the period | $ | 181 | $ | 473 | $ | 885 | $ | 1,057 | |||||
| Adjustments for: | |||||||||||||
| Depreciation of property and equipment | 184 | 232 | 907 | 789 | |||||||||
| Depreciation of deferred development costs | 237 | 218 | 883 | 789 | |||||||||
| Depreciation of other intangible assets | 45 | 33 | 162 | 119 | |||||||||
| Share-based compensation | - | - | - | 40 | |||||||||
| Net finance costs (income) | 5 | (1 | ) | 308 | 120 | ||||||||
| Realized foreign exchange (losses) gains and others | (39 | ) | (78 | ) | 109 | 32 | |||||||
| Share of net loss of equity-accounted associate | - | - | - | 15 | |||||||||
| Gain on sale of the investment in equity-accounted associate | - | (67 | ) | - | (67 | ) | |||||||
| Federal non-refundable research and development tax credits | (75 | ) | (330 | ) | (300 | ) | (330 | ) | |||||
| Income taxes | 71 | 330 | 75 | 330 | |||||||||
| Operating activities excluding changes in non-cash working capital items related to operations | 609 | 810 | 3,029 | 2,894 | |||||||||
| Accounts receivable | (1,457 | ) | (133 | ) | 248 | (1,347 | ) | ||||||
| Work in progress | (444 | ) | (209 | ) | (646 | ) | (600 | ) | |||||
| Other accounts receivable | 16 | 337 | (41 | ) | 65 | ||||||||
| Tax credits | (632 | ) | 1,080 | (2,647 | ) | (270 | ) | ||||||
| Inventory | 24 | 101 | 151 | (516 | ) | ||||||||
| Prepaid expenses | 135 | 71 | 24 | (327 | ) | ||||||||
| Accounts payable and accrued liabilities | 486 | (1,119 | ) | (751 | ) | 1,421 | |||||||
| Deferred revenue | 601 | 57 | 496 | 321 | |||||||||
| Changes in non-cash working capital items related to operations | (1,271 | ) | 185 | (3,166 | ) | (1,253 | ) | ||||||
| Net cash (used in) from operating activities | (662 | ) | 995 | (137 | ) | 1,641 | |||||||
| Cash flows (used in) from financing activities: | |||||||||||||
| Repayment of bank advances | - | - | - | (3,720 | ) | ||||||||
| Repayment of loans | (4 | ) | (3 | ) | (15 | ) | (22 | ) | |||||
| Term loan | - | - | 5,000 | - | |||||||||
| Repayment of term loan | (250 | ) | - | (500 | ) | - | |||||||
| Issuance of common shares | 2 | 5 | 59 | 195 | |||||||||
| Purchase of common shares for cancellation | - | (39 | ) | (462 | ) | (437 | ) | ||||||
| Purchase of share options for cancellation | (85 | ) | (8 | ) | (328 | ) | (347 | ) | |||||
| Payment of dividends | (400 | ) | (349 | ) | (800 | ) | (698 | ) | |||||
| Interest paid | (45 | ) | (2 | ) | (100 | ) | (16 | ) | |||||
| Net cash (used in) from financing activities | (782 | ) | (396 | ) | 2,854 | (5,045 | ) | ||||||
| Cash flows (used in) from investing activities: | |||||||||||||
| Short-term and other investments and restricted cash equivalents and other investments | 342 | 565 | 40 | 890 | |||||||||
| Interest received | 14 | 15 | 46 | 37 | |||||||||
| Proceeds from asset-backed commercial paper | - | - | - | 3,584 | |||||||||
| Acquisitions of property and equipment | (36 | ) | (213 | ) | (685 | ) | (1,413 | ) | |||||
| Proceeds on disposal of property and equipment | - | 1 | - | 4 | |||||||||
| Acquisitions of other intangible assets | (182 | ) | (39 | ) | (348 | ) | (189 | ) | |||||
| Deferred development costs | (561 | ) | (310 | ) | (1,686 | ) | (855 | ) | |||||
| Non-current receivables including the current portion of the loan from TECSYS Latin America Inc. | 1 | 3 | 13 | 23 | |||||||||
| Proceeds from disposition of the investment in equity-accounted associate | - | 136 | 34 | 136 | |||||||||
| Net cash (used in) from investing activities | (422 | ) | 158 | (2,586 | ) | 2,217 | |||||||
| Net (decrease) increase in cash and cash equivalents during the period | (1,866 | ) | 757 | 131 | (1,187 | ) | |||||||
| Cash and cash equivalents - beginning of period | 7,214 | 4,460 | 5,217 | 6,404 | |||||||||
| Cash and cash equivalents - end of period | $ | 5,348 | $ | 5,217 | $ | 5,348 | $ | 5,217 | |||||
| TECSYS Inc. | |||||||||||||||
| Consolidated Statements of Changes in Equity | |||||||||||||||
| Years ended April 30, 2013 and 2012 | |||||||||||||||
| (in thousands of Canadian dollars, except number of shares) | |||||||||||||||
| Share capital | Contributed | Retained | Total | ||||||||||||
| Number | Amount | surplus | earnings | ||||||||||||
| Balance, April 30, 2012 | 11,603,271 | $ | 1,688 | $ | 10,023 | $ | 3,845 | $ | 15,556 | ||||||
| Profit and comprehensive income for the year | - | - | - | 885 | 885 | ||||||||||
| Total comprehensive income for the year | - | - | - | 885 | 885 | ||||||||||
| Repurchase of common shares | (187,300 | ) | (27 | ) | (435 | ) | - | (462 | ) | ||||||
| Share options exercised | 33,450 | 59 | - | - | 59 | ||||||||||
| Fair value associated with options exercised | - | 28 | - | - | 28 | ||||||||||
| Dividends to equity owners | - | - | - | (800 | ) | (800 | ) | ||||||||
| Total transactions with owners of the Company | (153,850 | ) | 60 | (435 | ) | (800 | ) | (1,175 | ) | ||||||
| Balance, April 30, 2013 | 11,449,421 | $ | 1,748 | $ | 9,588 | $ | 3,930 | $ | 15,266 | ||||||
| Balance, April 30, 2011 | 11,678,671 | $ | 1,467 | $ | 10,993 | $ | 3,486 | $ | 15,946 | ||||||
| Profit and comprehensive income for the year | - | - | - | 1,057 | 1,057 | ||||||||||
| Total comprehensive income for the year | - | - | - | 1,057 | 1,057 | ||||||||||
| Repurchase of common shares | (192,800 | ) | (25 | ) | (412 | ) | - | (437 | ) | ||||||
| Repurchase of share options | - | - | (279 | ) | - | (279 | ) | ||||||||
| Stock options exercised | 117,400 | 195 | - | - | 195 | ||||||||||
| Fair value associated with options exercised | - | 51 | - | - | 51 | ||||||||||
| Fair value of share options transferred to liabilities | - | - | (319 | ) | - | (319 | ) | ||||||||
| Share-based compensation | - | - | 40 | - | 40 | ||||||||||
| Dividends to equity owners | - | - | - | (698 | ) | (698 | ) | ||||||||
| Total transactions with owners of the Company | (75,400 | ) | 221 | (970 | ) | (698 | ) | (1,447 | ) | ||||||
| Balance, April 30, 2012 | 11,603,271 | $ | 1,688 | $ | 10,023 | $ | 3,845 | $ | 15,556 | ||||||
Contact Information:
info@tecsys.com
Investor relations:
investor@tecsys.com
Media relations:
media@tecsys.com
TECSYS Inc.
(514) 866-0001 or (800) 922-8649