News Column

TECSYS Reports Record Bookings in Q4

Jul 9 2013 12:00AM

Marketwire

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MONTREAL, QUEBEC -- (Marketwired) -- 07/09/13 -- 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 CallDate: July 9, 2013Time: 4:30 pm EDTPhone number: 800-734-8583 or 416-981-9023The call can be replayed by calling 800-558-5253 (access code: 21662429) or416-626-4100 (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 PositionAs at April 30, 2013 and April 30, 2012(in thousands of Canadian dollars)-------------------------------------------------------------------------------------------------------------------------------------------------------- April 30, April 30, 2013 2012----------------------------------------------------------------------------AssetsCurrent 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--------------------------------------------------------------------------------------------------------------------------------------------------------LiabilitiesCurrent 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 IncomeThree-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 17,451Operating 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 37Finance 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 FlowsThree-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 $ 1,057Adjustments 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 EquityYears 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--------------------------------------------------------------------------------------------------------------------------------------------------------





Contacts:
Solutions and general info:
info@tecsys.com

Investor relations:
investor@tecsys.com

Media relations:
media@tecsys.com

TECSYS Inc.
(514) 866-0001 or (800) 922-8649





Source: Marketwire


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