MONTREAL, QUEBEC -- (Marketwired) -- 12/01/15 -- TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company, today announced its results for the second quarter of fiscal year 2016, ended October 31, 2015. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS), and are unaudited.
Second Quarter Highlights:
-- Revenue grew 16% to $15.8M in Q2 2016 compared to $13.5M in Q2 2015.
-- Proprietary products revenue was $3.0M compared to $3.2M in Q2 2015.
-- Services revenue improved by 26% to $10.2M compared to $8.1M in Q2 2015.
-- Gross margin in Q2 2016 was flat at 49% compared to 49% in Q2 2015.
-- Recurring revenue on an annualized basis grew to $23.0M, an 18%
improvement compared to the end of Q2 2015, representing 37% of the last
12 months trailing revenue.
-- EBITDA of $1.2M for Q2 2016 remained the same compared to Q2 2015.
-- Profit from operations was $501K in Q2 2016, compared to $532K in Q2
2015.
-- Total contract bookings in the second quarter totaled $13.4M, compared
to $9.3M in the prior year period, a 44% increase.
-- Backlog grew to $47.6M at the end of Q2 2016 from $34.7M at the end of
Q2 2015, a 37% increase.
-- Cash and cash equivalents totaled $9.1M at the end of Q2 2016 compared
to $10.8M at the end of Q4 2015.
"This quarter's results begin to demonstrate the strong operating leverage we've built into our business model, as our costs remained flat sequentially while total revenue has grown to record levels", said Peter Brereton, President and CEO of TECSYS Inc. "With $13.4 million in contracts booked in the quarter, we're pleased to see the benefits of our decision to increase our investment in sales and to strategically split the teams late last year. Contract bookings growth was fueled by major wins in both our healthcare vertical and complex distribution, where we closed a large multi-warehouse deal with great potential for future site expansion as well as a large well-known hospital network in the U.S. Our growing pipeline combined with strong bookings and robust order backlog gives us great visibility into the second half of fiscal 2016 and confidence in our ability to continue to deliver solid results."
First Half Highlights:
-- Revenue for the first six months of fiscal 2016 was $30.7M, up 16% from
$26.6M in the first half of last fiscal year.
-- EBITDA for the first half of FY 2016 was $2.0M compared to $2.2M in the
same period of fiscal 2015.
-- Profit from operations for the first half of fiscal 2016 was $0.7M
compared to $1.0 in the same period of fiscal 2015.
-- Net profit for the first six months of fiscal 2015 was $436K, or $0.04
per share, compared to $753K, or $0.07 per share, for the same period of
the prior fiscal year.
-- Total contract bookings for the first six months of fiscal 2016 totaled
$20.1M, which includes the addition of three new IDN's.
TECSYS also announced that the Company's Board of Directors has declared a quarterly dividend of $0.025 per share, to be paid on January 12, 2016 to shareholders of record at the close of business on December 22, 2015.
Second Quarter 2016 Results Conference Call Date: December 2, 2015 Time: 8:30 am EST Phone number: 800-916-9263 or 416-641-6700 The call can be replayed by calling 800-558-5253 or 416-626-4100 (access code: 21786855).
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 October 31, 2015 and April 30, 2015
(in thousands of Canadian dollars)
============================================================================
October 31, April 30,
2015 2015
----------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 9,104 $ 10,815
Accounts receivable 13,664 12,570
Work in progress 1,209 704
Other accounts receivable 698 434
Tax credits 3,897 5,369
Inventory 879 1,059
Prepaid expenses 1,426 1,394
----------------------------------------------------------------------------
Total current assets 30,877 32,345
----------------------------------------------------------------------------
Non-current assets
Tax credits 1,688 1,538
Property and equipment 2,307 2,526
Deferred development costs 4,333 4,348
Other intangible assets 1,988 2,184
Goodwill 3,596 3,596
Deferred tax assets 701 840
----------------------------------------------------------------------------
Total non-current assets 14,613 15,032
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total assets $ 45,490 $ 47,377
============================================================================
Liabilities
Current liabilities
Accounts payable and accrued
liabilities $ 8,297 $ 8,817
Current portion of long-term debt 1,441 1,456
Deferred revenue 9,874 10,098
----------------------------------------------------------------------------
Total current liabilities 19,612 20,371
----------------------------------------------------------------------------
Non-current liabilities
Long-term debt 2,621 3,333
Other non-current liabilities 302 311
----------------------------------------------------------------------------
Total non-current liabilities 2,923 3,644
----------------------------------------------------------------------------
Total liabilities 22,535 24,015
----------------------------------------------------------------------------
Equity
Share capital 8,349 8,349
Contributed surplus 9,577 9,577
Retained earnings 5,161 5,341
Accumulated other comprehensive (loss)
income (132) 95
----------------------------------------------------------------------------
Total equity attributable to the owners
of the Company 22,955 23,362
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total liabilities and equity $ 45,490 $ 47,377
============================================================================
TECSYS Inc.
Condensed Interim Consolidated Statements of Income and Comprehensive Income
(Unaudited)
Three and six-month periods ended October 31, 2015 and 2014
(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,
2015 2014 2015 2014
============================================================================
Revenue:
Proprietary
products $ 3,000 $ 3,226 $ 5,148 $ 5,305
Third-party
hardware and
software products 2,092 1,727 4,156 3,505
Services 10,172 8,096 20,488 16,839
Reimbursable
expenses 498 499 901 911
----------------------------------------------------------------------------
Total revenue 15,762 13,548 30,693 26,560
----------------------------------------------------------------------------
Cost of revenue:
Products 1,914 1,293 3,522 2,622
Services 5,560 5,138 11,060 10,323
Reimbursable
expenses 498 499 901 911
----------------------------------------------------------------------------
Total cost of
revenue 7,972 6,930 15,483 13,856
----------------------------------------------------------------------------
Gross profit 7,790 6,618 15,210 12,704
Operating expenses:
Sales and
marketing 3,503 2,935 7,095 5,546
General and
administration 1,391 1,521 2,760 2,948
Research and
development, net
of tax credits 2,395 1,630 4,647 3,204
----------------------------------------------------------------------------
Total operating
expenses 7,289 6,086 14,502 11,698
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Profit from
operations 501 532 708 1,006
----------------------------------------------------------------------------
Net finance costs 32 22 72 78
----------------------------------------------------------------------------
Profit before income
taxes 469 510 636 928
----------------------------------------------------------------------------
Income taxes 102 100 200 175
----------------------------------------------------------------------------
Profit attributable
to the owners of
the Company $ 367 $ 410 $ 436 $ 753
============================================================================
Other comprehensive
income (loss):
Effective portion
of changes in
fair value on
designated
revenue hedges 356 (119) (227) (187)
----------------------------------------------------------------------------
Comprehensive income
attributable to the
owners of the
Company $ 723 $ 291 $ 209 $ 566
============================================================================
Basic and diluted
earnings per common
share $ 0.03 $ 0.04 $ 0.04 $ 0.07
============================================================================
TECSYS Inc.
Condensed Interim Consolidated Statements of Cash Flows
(Unaudited)
Six-month periods ended October 31, 2015 and 2014
(in thousands of Canadian dollars)
============================================================================
Six Months Six Months
Ended Ended
October 31, October 31,
2015 2014
============================================================================
Cash flows from (used in) operating
activities:
Profit for the period $ 436 $ 753
Adjustments for:
Depreciation of property and equipment 373 385
Depreciation of deferred development
costs 694 603
Depreciation of other intangible
assets 243 187
Gain on disposal of property and
equipment (12) -
Net finance costs 72 78
Unrealized foreign exchange and others 111 100
Federal non-refundable research and
development tax credits (150) (150)
Income taxes 150 150
----------------------------------------------------------------------------
Operating activities excluding changes
in non-cash working capital items
related to operations 1,917 2,106
Accounts receivable (1,094) 1,306
Work in progress (505) (454)
Other accounts receivable (479) (125)
Tax credits 1,472 (1,284)
Inventory 180 169
Prepaid expenses (32) 39
Accounts payable and accrued
liabilities (643) (103)
Deferred revenue (224) (178)
----------------------------------------------------------------------------
Changes in non-cash working capital
items related to operations (1,325) (630)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net cash from operating activities 592 1,476
----------------------------------------------------------------------------
Cash flows used in financing activities:
Repayment of bank loans - (140)
Repayment of long-term debt (727) (529)
Purchase of share options for
cancellation (4) (13)
Payment of dividends (616) (519)
Interest paid (74) (71)
----------------------------------------------------------------------------
Net cash used in financing activities (1,421) (1,272)
----------------------------------------------------------------------------
Cash flows (used in) from investing
activities:
Restricted cash equivalents - 40
Interest received 36 14
Acquisitions of property and equipment (204) (101)
Proceeds on disposal of property and
equipment 12 -
Acquisitions of other intangible
assets (47) (136)
Deferred development costs (679) (805)
Receivables from TECSYS Latin America
Inc. - 28
Business combination, net of cash and
cash equivalents acquired - (2,949)
----------------------------------------------------------------------------
Net cash used in investing activities (882) (3,909)
----------------------------------------------------------------------------
Net decrease in cash and cash
equivalents during the period (1,711) (3,705)
Cash and cash equivalents - beginning of
period 10,815 8,839
----------------------------------------------------------------------------
Cash and cash equivalents - end of
period $ 9,104 $ 5,134
============================================================================
TECSYS Inc.
Condensed Interim Consolidated Statements of Changes in Equity
(Unaudited)
Six-month periods ended October 31, 2015 and 2014
(in thousands of Canadian dollars, except number of shares)
============================================================================
Share capital Contributed
Number Amount surplus
----------------------------------------------------------------------------
Balance, April 30, 2015 12,315,326 $ 8,349 $ 9,577
Profit for the period - - -
Other comprehensive loss for the
period:
Effective portion of changes in
fair value on designated
revenue hedges - - -
----------------------------------------------------------------------------
Total comprehensive income for the
period - - -
----------------------------------------------------------------------------
Dividends to equity owners - - -
----------------------------------------------------------------------------
Total transactions with owners of
the Company - - -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Balance, October 31, 2015 12,315,326 $ 8,349 $ 9,577
============================================================================
Balance, April 30, 2014 11,524,421 $ 2,153 $ 9,577
Profit for the period - - -
Other comprehensive loss for the
period:
Effective portion of changes in
fair value on designated
revenue hedges - - -
----------------------------------------------------------------------------
Total comprehensive income for the
period - - -
----------------------------------------------------------------------------
Common shares issued related to
purchase of Logi D Holding Inc. 15,625 100 -
Dividends to equity owners - - -
----------------------------------------------------------------------------
Total transactions with owners of
the Company 15,625 100 -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Balance, October 31, 2014 11,540,046 $ 2,253 $ 9,577
============================================================================
TECSYS Inc.
Condensed Interim Consolidated Statements of Changes in Equity
(Unaudited)
Six-month periods ended October 31, 2015 and 2014
(in thousands of Canadian dollars, except number of shares)
============================================================================
Accumulated
other Retained Total
comprehensive earnings
income (loss)
----------------------------------------------------------------------------
Balance, April 30, 2015 $ 95 $ 5,341 $ 23,362
Profit for the period - 436 436
Other comprehensive loss for the
period:
Effective portion of changes in
fair value on designated
revenue hedges (227) - (227)
----------------------------------------------------------------------------
Total comprehensive income for the
period (227) 436 209
----------------------------------------------------------------------------
Dividends to equity owners - (616) (616)
----------------------------------------------------------------------------
Total transactions with owners of
the Company - (616) (616)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Balance, October 31, 2015 $ (132) $ 5,161 $ 22,955
============================================================================
Balance, April 30, 2014 $ - $ 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. - - 100
Dividends to equity owners - (519) (519)
----------------------------------------------------------------------------
Total transactions with owners of
the Company - (519) (419)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Balance, October 31, 2014 $ (187) $ 5,098 $ 16,741
============================================================================
Contacts:
Solutions and general info: info@tecsys.com
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
