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:
Financial Highlights for the Fourth Quarter:
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:
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 | ||||||
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