MONTREAL, QUEBEC--(Marketwired - Nov. 25, 2014) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company, today announced its results for the second quarter of fiscal year 2015, ended October 31, 2014.
All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS).
Second Quarter Highlights:
"Signing one of North America's largest IDNs was a notable achievement for us this quarter, and demonstrates the growing acceptance of our solutions and recognition of its quick ROI," said Peter Brereton, President and CEO of TECSYS Inc. "We are now focused on integrating Logi-D's sales and marketing teams and have been actively introducing these new products to our existing and potential customers. Feedback has been positive and we continue to advance a number of opportunities which leverage our expanded product and client portfolio to accelerate growth."
First Half Highlights:
TECSYS also announced that the Company's Board of Directors has declared a quarterly dividend of $0.0225 per share, to be paid on January 6, 2015 to shareholders of record at the close of business on December 16, 2014.
Second Quarter 2015 Results Conference Call
Date: November 25, 2014
Time: 4:30 pm EST
Phone number: 800-381-7839 or 416-981-9030
The call can be replayed by calling 800-558-5253 (access code: 21742734) or 416-626-4100 (access code: 21742734).
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 over 600 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, 2014. 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. 2014. 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, 2014 and April 30, 2014 | ||||||
(in thousands of Canadian dollars) | ||||||
October 31, | April 30, | |||||
2014 | 2014 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 5,134 | $ | 8,839 | ||
Accounts receivable | 8,582 | 9,076 | ||||
Work in progress | 1,382 | 524 | ||||
Other accounts receivable | 168 | 46 | ||||
Tax credits | 4,198 | 2,704 | ||||
Inventory | 592 | 293 | ||||
Prepaid expenses | 1,020 | 1,037 | ||||
Total current assets | 21,076 | 22,519 | ||||
Non-current assets | ||||||
Restricted cash equivalents | 40 | 80 | ||||
Tax credits | 1,500 | 1,350 | ||||
Property and equipment | 2,537 | 2,627 | ||||
Deferred development costs | 4,290 | 4,088 | ||||
Other intangible assets | 2,193 | 508 | ||||
Goodwill | 3,594 | 2,239 | ||||
Deferred tax assets | 564 | 714 | ||||
Total non-current assets | 14,718 | 11,606 | ||||
Total assets | $ | 35,794 | $ | 34,125 | ||
Liabilities | ||||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | $ | 6,738 | $ | 5,406 | ||
Current portion of long-term debt | 1,079 | 1,000 | ||||
Deferred revenue | 8,685 | 8,326 | ||||
Total current liabilities | 16,502 | 14,732 | ||||
Non-current liabilities | ||||||
Long-term debt | 2,195 | 2,500 | ||||
Other non-current liabilities | 356 | 299 | ||||
Total non-current liabilities | 2,551 | 2,799 | ||||
Total liabilities | 19,053 | 17,531 | ||||
Equity | ||||||
Share capital | 2,253 | 2,153 | ||||
Contributed surplus | 9,577 | 9,577 | ||||
Retained earnings | 5,098 | 4,864 | ||||
Accumulated other comprehensive loss | (187 | ) | - | |||
Total equity attributable to the owners of the Company | 16,741 | 16,594 | ||||
Total liabilities and equity | $ | 35,794 | $ | 34,125 | ||
TECSYS Inc. | |||||||||||
Condensed Interim Consolidated Statements of Income and Comprehensive Income | |||||||||||
(Unaudited) | |||||||||||
Three and six-month periods ended October 31, 2014 and 2013 | |||||||||||
(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, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
Revenue: | |||||||||||
Proprietary products | $ | 3,226 | $ | 2,507 | $ | 5,305 | $ | 3,973 | |||
Third-party hardware and software products | 1,727 | 1,433 | 3,505 | 3,187 | |||||||
Services | 8,096 | 7,345 | 16,839 | 14,448 | |||||||
Reimbursable expenses | 499 | 371 | 911 | 650 | |||||||
Total revenue | 13,548 | 11,656 | 26,560 | 22,258 | |||||||
Cost of revenue: | |||||||||||
Products | 1,293 | 1,036 | 2,622 | 2,295 | |||||||
Services | 5,138 | 4,879 | 10,323 | 9,630 | |||||||
Reimbursable expenses | 499 | 371 | 911 | 650 | |||||||
Total cost of revenue | 6,930 | 6,286 | 13,856 | 12,575 | |||||||
Gross profit | 6,618 | 5,370 | 12,704 | 9,683 | |||||||
Operating expenses: | |||||||||||
Sales and marketing | 2,935 | 2,306 | 5,546 | 4,249 | |||||||
General and administration | 1,521 | 966 | 2,948 | 1,964 | |||||||
Research and development, net of tax credits | 1,630 | 1,350 | 3,204 | 2,551 | |||||||
Total operating expenses | 6,086 | 4,622 | 11,698 | 8,764 | |||||||
Profit from operations | 532 | 748 | 1,006 | 919 | |||||||
Net finance costs | 22 | 68 | 78 | 156 | |||||||
Profit before income taxes | 510 | 680 | 928 | 763 | |||||||
Income taxes | 100 | 75 | 175 | 75 | |||||||
Profit attributable to the owners of the Company | $ | 410 | $ | 605 | $ | 753 | $ | 688 | |||
Other comprehensive loss: | |||||||||||
Effective portion of changes in fair value on designated revenue hedges | (119 | ) | - | (187 | ) | - | |||||
Comprehensive income attributable to the owners of the Company | $ | 291 | $ | 605 | $ | 566 | $ | 688 | |||
Basic and diluted earnings per common share | $ | 0.04 | $ | 0.05 | $ | 0.07 | $ | 0.06 | |||
TECSYS Inc. | |||||||
Condensed Interim Consolidated Statements of Cash Flows | |||||||
(Unaudited) | |||||||
Six-month periods ended October 31, 2014 and 2013 | |||||||
(in thousands of Canadian dollars) | |||||||
Six Months | Six Months | ||||||
Ended | Ended | ||||||
October 31, | October 31, | ||||||
2014 | 2013 | ||||||
Cash flows from (used in) operating activities: | |||||||
Profit for the period | $ | 753 | $ | 688 | |||
Adjustments for: | |||||||
Depreciation of property and equipment | 385 | 365 | |||||
Depreciation of deferred development costs | 603 | 475 | |||||
Depreciation of other intangible assets | 187 | 95 | |||||
Net finance costs | 78 | 156 | |||||
Unrealized foreign exchange losses, realized foreign exchange gains and other | 100 | 7 | |||||
Federal non-refundable research and development tax credits | (150 | ) | (150 | ) | |||
Income taxes | 150 | 75 | |||||
Operating activities excluding changes in non-cash workingcapital items related to operations | 2,106 |
1,711 |
|||||
Accounts receivable | 1,306 | (1,880 | ) | ||||
Work in progress | (454 | ) | 256 | ||||
Other accounts receivable | (125 | ) | (102 | ) | |||
Tax credits | (1,284 | ) | 586 | ||||
Inventory | 169 | 176 | |||||
Prepaid expenses | 39 | 211 | |||||
Accounts payable and accrued liabilities | (103 | ) | 282 | ||||
Deferred revenue | (178 | ) | (226 | ) | |||
Changes in non-cash working capital items related to operations | (630 | ) | (697 | ) | |||
Net cash from operating activities | 1,476 | 1,014 | |||||
Cash flows (used in) from financing activities: | |||||||
Repayment of bank loans | (140 | ) | - | ||||
Repayment of loan to related party | - | (9 | ) | ||||
Repayment of long-term debt | (529 | ) | (500 | ) | |||
Issuance of common shares | - | 40 | |||||
Purchase of common shares for cancellation and related fees | - | (11 | ) | ||||
Purchase of share options for cancellation | (13 | ) | (7 | ) | |||
Payment of dividends | (519 | ) | (402 | ) | |||
Interest paid | (71 | ) | (87 | ) | |||
Net cash used in financing activities | (1,272 | ) | (976 | ) | |||
Cash flows (used in) from investing activities: | |||||||
Restricted cash equivalents | 40 | 40 | |||||
Interest received | 14 | 25 | |||||
Acquisitions of property and equipment | (101 | ) | (258 | ) | |||
Acquisitions of other intangible assets | (136 | ) | (123 | ) | |||
Deferred development costs | (805 | ) | (905 | ) | |||
Current and non-current receivables from TECSYS Latin America Inc. | 28 | 42 | |||||
Business combination, net of cash and cash equivalents acquired | (2,949 | ) | - | ||||
Net cash used in investing activities | (3,909 | ) | (1,179 | ) | |||
Net decrease in cash and cash equivalents during the period | (3,705 | ) | (1,141 | ) | |||
Cash and cash equivalents - beginning of period | 8,839 | 5,348 | |||||
Cash and cash equivalents - end of period | $ | 5,134 | $ | 4,207 | |||
TECSYS Inc. |
Condensed Interim Consolidated Statements of Changes in Equity |
(Unaudited) |
Six-month periods ended October 31, 2014 and 2013 |
(in thousands of Canadian dollars, except number of shares) |
Accumulated | |||||||||||||||||
other | |||||||||||||||||
Share capital | Contributed | comprehensive | Retained | ||||||||||||||
Number | Amount | surplus | loss | earnings | Total | ||||||||||||
Balance, April 30, 2014 | 11,524,421 | $ | 2,153 | $ | 9,577 | $ | - | $ | 4,864 | $ | 16,594 | ||||||
Profit for the period | - | - | - | - | 753 | 753 | |||||||||||
Other comprehensive loss for the period: | |||||||||||||||||
Effective portion of changes in fair value on designated revenue hedges | - | - | - | (187 | ) | - | (187 | ) | |||||||||
Total comprehensive income for the period | - | - | - | (187 | ) | 753 | 566 | ||||||||||
Common shares issued related to purchase of Logi D Holding Inc. | 15,625 | 100 | - | - | - | 100 | |||||||||||
Dividends to equity owners | - | - | - | - | (519 | ) | (519 | ) | |||||||||
Total transactions with owners of the Company | 15,625 | 100 | - | - | (519 | ) | (419 | ) | |||||||||
Balance, October 31, 2014 | 11,540,046 | $ | 2,253 | $ | 9,577 | $ | (187 | ) | $ | 5,098 | $ | 16,741 | |||||
Balance, April 30, 2013 | 11,449,421 | $ | 1,748 | $ | 9,588 | $ | - | $ | 3,930 | $ | 15,266 | ||||||
Profit and comprehensive income for the period | - | - | - | - | 688 | 688 | |||||||||||
Total comprehensive income for the period | - | - | - | - | 688 | 688 | |||||||||||
Normal course issuer bid fees for repurchase of common shares | - | - | (11 | ) | - | - | (11 | ) | |||||||||
Share options exercised | 25,000 | 40 | - | - | - | 40 | |||||||||||
Fair value associated with options exercised | - | 64 | - | - | - | 64 | |||||||||||
Dividends to equity owners | - | - | - | - | (402 | ) | (402 | ) | |||||||||
Total transactions with owners of the Company | 25,000 | 104 | (11 | ) | - | (402 | ) | (309 | ) | ||||||||
Balance, October 31, 2013 | 11,474,421 | $ | 1,852 | $ | 9,577 | $ | - | $ | 4,216 | $ | 15,645 |
Contact Information: