Science & Technology
Science and Technology
Science and Technology
Fri, September 11, 2009
Thu, September 10, 2009 
MONTREAL, QUEBEC--(Marketwire - Sept. 10, 2009) - TECSYS Inc. (TSX:TCS), an industry-leading supply chain management software company announced today its results for the first quarter of fiscal year 2010, ended July 31st, 2009. All dollar amounts are expressed in Canadian currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP) and are unaudited.
Highlights of the First Quarter include:
- Revenue was $9.2M in Q1 of fiscal 2010 compared to $10.2M in Q1 in fiscal 2009, due to an increased focus on proprietary products and services.
- Earnings from operations for the first quarter of fiscal 2010 increased to $300K compared to $266K in Q1 2009.
- EBITDA for Q1 of fiscal 2010 was $455K compared to $656K for Q1 of last fiscal year.
- Net earnings for the first quarter of fiscal 2010 were $108K or $0.01 per share, compared to $274K or $0.02 per share for the first quarter of last fiscal year. Net earnings were achieved after accounting for net interest income of $2K, foreign exchange losses of $168K and a share of net loss and amortization of intangible assets of $26K from a company in which TECSYS has an equity interest.
- Annualized return-on-equity was equal to 2.7% in Q1 of fiscal 2010 compared to 7.1% in Q1 of last fiscal year.
- At the end of Q1, 2010, annualized recurring revenue stood at $12.8M up from $11.7M at the end of Q1, 2009. Recurring revenue is principally made-up of annual software maintenance contracts.
- At the end of Q1, 2010, backlog stood at $18.4M compared to $19.0M at the end of Q1, 2009.
- During the quarter, the Company generated $442K cash from operations, up from $47K in the first quarter of the prior fiscal year.
- At the end of Q1, 2010, cash, cash equivalents and short-term investments amounted to $8.0M compared to $5.5M at the end of Q1, 2009 with no significant long term debt.
TECSYS also announced today that the Company's Board of Directors has decided to increase the semi-annual dividend to $0.025/share, to be paid on October 7, 2009 to shareholders of record on September 23, 2009. This represents a 25% increase in the dividends paid to shareholders.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: "Through a combination of new business from existing and new clients, a solid backlog and prudent cost control, the first quarter was reasonably good. Our focus on proprietary software sales during this downturn is demonstrated in our numbers, with sales of our own software and services rising by 4% over last year's Q1, while sales of third-party products dropped by 45%. As a result, our gross margin rose to 46%, up from 39% and we continued to generate cash, further strengthening our balance sheet. The increase in our dividend underscores our commitment to shareholders and makes dividend distribution on an annual basis equal to approximately 15% of cash from operations generated within the last 12 months."
During the quarter, the Company signed agreements with existing clients and new customers including:
- Two industrial distributors in Ontario
- Music & DVD wholesale distributor in Ontario
- Educational products distributor in Ontario
- Home decor products distributor in Ontario
- Electronic products distributor in Quebec
- Photo equipment and supplies distributor
- Giftware products distributor in Ontario
- A major healthcare services agency in New York
- A distributor of gas and welding products and supplies in Texas
Furthermore, TECSYS also deployed its supply chain execution solutions at twenty customers in Canada, the U.S. and Europe.
TECSYS' First Quarter 2010 Earnings Conference Call:
Date: September 10, 2009
Time: 4:30 pm
Phone number: 800-379-4140 or 416-620-5690
The call can be replayed by calling 800-558-5253 (access code: 21436538) or 416-626-4100 (access code: 21436538).
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 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, 2009. 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 (C) TECSYS Inc. 2009. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.
TECSYS Inc.
Consolidated Balance Sheets
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------
(in thousands of Canadian dollars)
July 31, April 30,
2009 2009
(unaudited)
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Assets
Current assets
Cash and cash equivalents 7,650 7,510
Short-term and other investments 325 325
Accounts receivable 8,608 9,307
Work in progress 248 303
Other accounts receivable 595 198
Tax credits receivable 1,626 1,536
Inventory 205 219
Prepaid expenses 1,074 668
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20,331 20,066
Restricted cash equivalents and other
investments 739 739
Asset-backed commercial paper 3,513 3,535
Long-term receivables 47 77
Long-term investment 264 290
Property and equipment 1,495 1,481
Intangible assets 825 930
Deferred development costs 1,606 1,519
Goodwill 2,829 2,829
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31,649 31,466
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Liabilities
Current liabilities
Bank advances 4,000 4,000
Accounts payable and accrued liabilities 4,786 5,154
Current portion of long-term debt 133 133
Deferred revenue 6,922 6,249
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15,841 15,536
Long-term debt 100 100
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15,941 15,636
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Shareholders' equity
Capital stock 1,403 1,420
Contributed surplus 12,115 12,328
Retained earnings 2,190 2,082
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15,708 15,830
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31,649 31,466
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TECSYS Inc.
Consolidated Statements of Earnings and Comprehensive Earnings
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------
(in thousands of Canadian dollars, except share and per share data)
Three Months Three Months
Ended Ended
July 31, July 31,
2009 2008
(unaudited) (unaudited)
-------------------------------------------------------------------
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Revenue
Products 2,946 4,445
Services 5,991 5,549
Reimbursable expenses 261 243
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9,198 10,237
Cost of revenue
Products 1,098 2,285
Services 3,613 3,689
Reimbursable expenses 261 243
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4,972 6,217
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Gross margin 4,226 4,020
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Operating expenses
Sales and marketing 1,385 1,580
General and administration 1,077 807
Gross research and development 1,425 1,244
Research and development tax credits (145) (137)
Deferred development costs (178) (132)
Stock-based compensation 28 30
Amortization of property and equipment 121 132
Amortization of intangible assets 122 193
Amortization of deferred development costs 91 37
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3,926 3,754
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Earnings from operations 300 266
Interest income 6 21
Interest expense (4) (26)
Foreign exchange (losses) gains (168) 12
Share of net loss and amortization of
intangible assets of a company subject to
significant influence (26) 1
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Net earnings and comprehensive earnings
for the period 108 274
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Weighted average number of common shares
outstanding
- basic 12,467,119 13,006,383
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- diluted 12,585,590 13,090,031
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Basic and diluted net earnings per
common share $0.01 $0.02
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TECSYS Inc.
Consolidated Statements of Cash Flows
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------
(in thousands of Canadian dollars)
Three Months Three Months
Ended Ended
July 31, July 31,
2009 2008
(unaudited) (unaudited)
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Cash flows from
Operating activities
Net earnings for the period 108 274
Adjustments for
Amortization of property and equipment 121 132
Amortization of intangible assets 122 193
Amortization of deferred development costs 91 37
Stock-based compensation 28 30
Unrealized foreign exchange (gains) losses (455) 128
Deferred development costs (178) (132)
Share of net loss and amortization of
intangible assets of a company subject to
significant influence 26 (1)
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(137) 661
Changes in non-cash working capital items
related to operations
Decrease (increase) in accounts receivable 699 (163)
Decrease (increase) in work in progress 55 (343)
Decrease in other accounts receivable 2 66
Increase in tax credits receivable (90) (111)
Decrease (increase) in inventory 14 (8)
(Increase) decrease in prepaid expenses (406) 48
Decrease in long-term receivables - 29
(Decrease) increase in accounts payable and
accrued liabilities (368) 45
Increase (decrease) in deferred revenue 673 (177)
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442 47
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Financing activities
Bank advances - (3)
Issuance of common shares - 20
Purchase of common shares for cancellation (258) (10)
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(258) 7
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Investing activities
Increase in short-term and other investments
and restricted cash equivalents and other
investments - (23)
Interest and principal received on
asset-backed commercial paper 87 -
Acquisitions of property and equipment (135) (163)
Acquisitions of intangible assets (17) (77)
Decrease in long-term receivables including
the current portion from a related party 21 12
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(44) (251)
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Variation in cash and cash equivalents 140 (197)
Cash and cash equivalents - beginning of period 7,510 5,693
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Cash and cash equivalents - end of period 7,650 5,496
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TECSYS Inc.
Consolidated Statements of Shareholders' Equity
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of Canadian dollars, except number of shares)
(unaudited)
Common shares Contributed Retained Total
Number Amount surplus earnings
-------------------------------------------------------------------------
Balance, April 30,
2009 12,525,884 1,420 12,328 2,082 15,830
Repurchase of common
shares (144,340) (17) (241) - (258)
Stock-based
compensation - - 28 - 28
Net earnings for
the period - - - 108 108
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Balance, July 31,
2009 12,381,544 1,403 12,115 2,190 15,708
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Common shares Contributed Retained Total
Number Amount surplus earnings
-------------------------------------------------------------------------
Balance, April 30,
2008 13,003,684 1,444 12,826 1,003 15,273
Repurchase of common
shares (6,100) (1) (9) - (10)
Stock options
exercised 12,500 20 - - 20
Fair value associated
with options
exercised - 10 (10) - -
Stock-based
compensation - - 30 - 30
Net earnings for
the period - - - 274 274
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Balance, July 31,
2008 13,010,084 1,473 12,837 1,277 15,587
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