News Column

BSM Technologies Inc. Reports 46% Recurring Revenue Growth in its Third Quarter

August 11, 2014

TORONTO, Aug. 11, 2014 /CNW/ - BSM Technologies Inc. ("BSM" or the "Company") (TSX-V: GPS), a leading provider of remote monitoring, fleet management, fleet diagnostics and automated vehicle security systems, today announced its financial and operating results for the three and nine months ended June 30, 2014. All amounts are in Canadian dollars unless otherwise stated.

Third Quarter 2014 Financial and Operating Highlights ($ thousands except per share data; comparisons are made between the third quarter of 2014 and the third quarter of 2013 results, unless otherwise noted):

•Continued revenue growth: Total revenue of $6,450 represents an increase of 38%.

 

•Recurring revenue (i) of $4,417, an increase of 46%.



•Hardware and other revenue of $2,033, an increase of 23%.



•Adjusted EBITDA (i) of $514 compared to $992.



•Received an initial order from one of North America's largest construction, mining and engineering firms, and began deployment of two other large orders. The Company realized partial revenue from these orders in Q3, and the balance of the revenue is expected to be realized in Q4.



•Successfully closed the acquisition of Lat-Lon, L.L.C. and JMM Management Group, LLC and are moving forward with integration and cross selling initiatives.



•On August 11, 2014, the Company announced that it acquired 100% of the shares of Praxis Transportation Solutions Inc. Praxis provides a suite of driver compliance solutions focused on the rail sector, and is expected to provide an excellent platform to expand BSM's current HOS (hours of service) product offering.

"We continue to make key investments in both our organic growth initiatives as well as in purchasing and integrating targeted assets," said Aly Rahemtulla, BSM's President and CEO. "These investments are being made with a view of accelerating future growth. We are in the process of launching our next generation hardware platform that features both Wi-Fi hotspot and camera technology on a cost optimized platform. The impact of our recent M&A activities, sales successes and organizational investments will be more fully recognized in our fourth quarter financial results."

Financial Highlights for the Third Quarter of 2014:

($ thousands except gross

margin % and 


Three months ended

Nine months ended

per share data)

June 30, 2014

June 30, 2013



2014

2013

2014

2013

Total revenue

$    6,450

$   4,684

$    20,853

$    14,044

Recurring revenue(i)

4,417

3,029

12,535

7,766

Hardware and other revenue

2,033

1,655

8,318

6,278

Gross profit

3,891

3,055

12,025

8,528

Gross margin %

60%

65%

58%

61%

Net income

(389)

(1,353)

558

(318)

Basic income per share

(0.009)

(0.039)

0.014

(0.010)

Diluted income per share

(0.009)

(0.038)

0.014

(0.010)

EBITDA(i)

234

(1,005)

2,882

725

Adjusted EBITDA(i)

515

992

3,163

2,722

























Balance as at:





($ thousands)













June 30, 2014

  September 30, 2013

Cash and cash equivalents





$    24,897

$    10,251

Restricted cash





0

2,500

Working capital





25,226

9,171



















(i) Recurring revenue, EBITDA and Adjusted EBITDA are non-GAAP financial measures. Refer to the management's discussion and analysis for the three and nine months ended June 30, 2014 for further details with respect to the Company's non-GAAP financial performance measures.




 

The Company's financial statements for the three and nine months ended June 30, 2014, together with its corresponding management's discussion and analysis, can be found under the Company's profile on SEDAR at www.sedar.com.

About BSM Technologies Inc. (bsmwireless.com)

BSM Technologies Inc., through its subsidiaries, is a leading provider of remote monitoring, fleet tracking, fleet maintenance and a business intelligence engine providing real time web-based tracking of mobile and fixed assets. BSM provides solutions for commercial, government, and law enforcement organizations who manage and operate diverse assets and large fleets, and who seek to enhance customer service, improve the safety of their drivers and vehicles, and lower business costs.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

For more information, please visit http://www.bsmwireless.com

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward looking information. Such forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could", or "might" occur or be achieved and any other similar expressions. These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information. Some of these risks, uncertainties and other factors are described under the heading "Risk Factors" in the Company's annual information form available at www.sedar.com. Forward-looking information is based on estimates and opinions of management at the date the statements are made. Except as required by law, BSM does not undertake any obligation to update forward-looking information even if circumstances or management's estimates or opinions should change. Readers should not place undue reliance on forward-looking information.

SOURCE BSM Technologies Inc.


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