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Investing in TECSYS  


About TECSYS

TECSYS Today

  • Founded in 1983. Headquartered in Montreal, Canada.
  • Market-leading provider of supply chain execution solutions
  • Serving the healthcare, third-party logistics and high-volume distribution industries
  • Over 600 customers, several thousand sites in North America, Europe, Latin America
  • Publicly traded on the TSX since 1998 (TSX: TCS )

Our Mission

To deliver the highest value to our clients, with unparalleled industry solutions that are based on our advanced, proven technologies and feature-rich enterprise suite of applications.

Our Business

TECSYS is a leading provider of warehouse management software, distribution management software, and transportation management software, as well as complete financial management and analytics. The Company's customers include mid-size and Fortune 1000 corporations in healthcare, third-party logistics and high-volume distribution industries such as import-to-retail, industrial distribution, and service parts.

TECSYS has built its business and its reputation through a single-minded focus on warehousing and distribution operations and by developing robust, innovative products and leading expertise. The Company employs a seasoned team of supply chain management experts who differentiate TECSYS and who have extensive experience deploying TECSYS' technology in high-volume warehousing and distribution environments.

Market

Our Market

According to Gartner, customer business goals are becoming more focused on revenue and growth generation, rather than cost refinement, efficiency and productivity that were a preoccupation in previous years. The elevation of improving the customer experience, driving growth through supply chain innovation strongly suggests that organizations are looking for ways to make their previous cost cuts sustainable. This will demand that they make processes more effective and would require supply chain technologies and proven processes that can help them deliver on these objectives.

Furthermore, there is a stronger sentiment for increased budgets and spending for supply chain technologies that is reminiscent of 2007, with buying sentiment looking more favorable for best-of-breed applications such as TECSYS'.

The Supply Chain Execution Market

Although cost optimization remains a primary supply chain objective, improving operational efficiency and the customer experience rose in importance, which, combined, indicates that cost slashing is bottoming out. From a growth perspective, Gartner estimates that the 2012 market will have grown 7.7% and will exceed $9.0 billion in 2013. Gartner's forecast outlook for supply chain applications is estimated to have a 9% five-year compounded annual growth rate (CAGR) through 2016; a significant and healthy market.

Today, against the backdrop of the supply chain management customer priorities, TECSYS has the competitive strengths, people, technology and strategy to continue to be in a strong position and grow. We have the number one market share in our core vertical markets — and we continue to extend this lead by winning more business with proven strength in innovation, technology and expertise at the heart of our customers' supply chains.

Value

How We Build Shareholder Value

  • Focus on vertical markets: Prospective clients who have both the need and the financial resources.
  • Leverage our technology and industry experience/expertise: TECSYS' key differentiators present a high barrier to entry.
  • Build a recurring revenue stream: Currently represents 37% of revenue (end of FY2016) and growing.
  • Strengthen our market position: Recognized by Gartner as a visionary, and a dominant supplier for health systems.
  • Manage growth: High ROI and profitability.
  • Consistently generate cash.
  • Continue to invest in our own shares through NCIB.
  • Current dividend payouts: 12 cents/share/year, paid quarterly.

Improved Returns to Shareholders

Our strategy to grow EPS relies on revenue growth, increasing recurring revenue, and having tight control on operating expenses. We are positive about the opportunities ahead, particularly due to our strong market position, new product introduction and our solid pipeline. We remain focused on further penetrating our existing vertical markets and improving our market share. We continue to build our recurring revenue for the future and expand our offerings to our existing clients. With these pillars in place, we feel confident about the future.

Performance

Q4 FY2016 Results

FY2016 Financial Snapshot

$000 except for EPS and ROE
KPI 2015 2016
Revenue 57,284 67,466
EBITDA 4,401 7,164
Profit from Operations 1,947 4,549
EPS 0.13 0.39
Backlog 44,868 44,558
ROE% 7.6 18.9
Cash from Operations 1,394 3,620
Recurring Revenue 21,289 24,984

We have earned a market-leading position in the following industries:

  • Health systems (IDNs)
  • Service parts distribution
  • General high-volume distribution

Our customer base:

  • Has the need
  • Is well capitalized, good for the long haul
  • Is a major source for repeat and sustainable business
  • Provides recurring revenue of approximately 38% of annual revenue (at the end of FY2014)

Common Share Info

Principal Market

The Company's common shares were first listed on July 27, 1998 on the Toronto Stock Exchange (TSX). The stock symbol of the Company's common shares is TCS. The following table sets forth the high and low prices, as well as the trading volume for the common shares for the fiscal periods shown below.

(May 1, 2015 to April 30, 2016)
2016 High Low Volume
First Quarter $9.63 $8.68 412,228
Second Quarter $9.45 $8.40 565,158
Third Quarter $8.88 $7.25 111,724
Fourth Quarter $7.59 $6.35 718,236

Dividend Policy

TECSYS' dividend policy is determined by the Board of Directors, taking into account the Company's financial condition and other factors deemed relevant. On July 6, 2016 the Company's Board of Directors approved an increase of the quarterly dividend to $0.03 per share to be paid on August 4, 2016 to shareholders of record on July 21, 2016.

Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be "eligible" dividends.

FAQ

TECSYS is a market-leading provider of warehousing and distribution solutions. The Company develops and markets its enterprise warehouse management software, distribution management software and transportation management software, along with related professional and support services. TECSYS also markets third-party products including those developed by partners such as Oracle Corporation, IBM Corporation, Psion Inc., Cognos Incorporated, and Intermec Systems Corporation.

TECSYS' competitive advantage lies in the expertise of its professionals, its state-of-the-art, proven technology, its customer focus, and its agility.

People & Expertise
  • More than 75% of TECSYS staff have 10–25 years of experience in warehousing and distribution.
  • TECSYS staff have deep and unique expertise in the vertical markets the Company serves.
  • TECSYS staff are customer- and people-oriented — very high on customers' decision-making priorities.
Proven Technology
  • TECSYS' technology is integrated — a strong competitive advantage, providing high ROI to customers.
  • TECSYS applications respond effectively to customer business requirements — moving goods efficiently, tracking products and orders, and providing unprecedented visibility into customers' supply chains.
  • TECSYS products are very user-friendly.
Customer Focus
  • TECSYS solutions are specific to client needs in specific market segments.
  • TECSYS focuses on a repeat business model, from product, expertise and execution points of view, that enables cost reduction, improved ROI, increased depth of expertise, and enhanced competitive advantage.
Agility

TECSYS' infrastructure is nimble and flexible, enabling the Company to:

  • Move quickly and efficiently;
  • Be more responsive than the competition.

TECSYS generates revenue both from products and services. On the product side, it licenses proprietary software and resells third-party software and hardware. For information on the breakdown of sales, please see TECSYS' annual and quarterly reports.

On the services side, the Company's sources of revenue are professional fees associated with implementation assistance, consulting, training, product adaptations, and recurring revenue from hosting services, maintenance contracts and customer support.

TECSYS is publicly traded on the Toronto Stock Exchange. Major shareholders include the Brereton family and institutional investors.

Since going public, the Company has not issued shares to the general public. However, TECSYS has issued shares pursuant to the exercise of special warrants and stock options under its employee stock option plan, and has issued common shares pursuant to private placements.

The Company has periodically issued bids for the repurchase of common shares for cancellation under the Normal Course Issuer Bid (NCIB). Since its initial public offering, the Company has repurchased a significant number of outstanding common shares. For further details see the Stock Buy-Back section of this Web site.


Investor Calendar  


Investor Library  


FY2017 Financial Documents

Quarterly Reports

Quarterly Conference Calls

FY2016 Financial Documents

Annual Report

  FY2016 (PDF, 1.4MB)

Quarterly Reports

Quarterly Conference Calls

FY2015 Financial Documents

Annual Report

  FY2015 (PDF, 6.5MB)

Quarterly Reports

Quarterly Conference Calls

FY2014 Financial Documents

Annual Report

  FY2014 (PDF, 9.0MB)

Quarterly Reports

Quarterly Conference Calls

FY2013 Financial Documents

Annual Report

  FY2013 (PDF, 1.6MB)

Quarterly Reports

Quarterly Conference Calls

Other Financial Documents

In addition to its Annual Report, TECSYS files an Annual Information Form (AIF), as well as a Management Proxy Circular with the Canadian Securities Commission. These are available on this Web site and on SEDAR . For further information, or to obtain printed copies of any of the above-mentioned documents, please contact TECSYS Investor Relations directly.


Forward Looking Statements

The statements in this web site 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 this Web site and on SEDAR .

Copyright © TECSYS Inc. 2016. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.

 

The View from the C-Suite

An interview with Peter Brereton, President & CEO

Investor Events

2016 Annual General Meeting of Shareholders

  • Time & Date
  • 11:00am
  • Thursday, September 8, 2016
  • Location
  • 1 Place Alexis Nihon, Suite 800
  • Montreal, Quebec, Canada H3Z 3B8

Investor Presentations

Investor Contacts

TECSYS Investor Relations

Analyst Coverage

Beacon Securities

Cantor Fitzgerald

Cormark Securities

  • Hubert Mak, Equity Research Analyst, Technology
  • (416) 943-6727
  • hmak@cormark.com

Echelon Partners

Laurentian Bank – Investment Banking

Securities Information

  • Company's Legal Name: TECSYS Inc.
  • Fiscal Year End: April 30
  • CUSIP Number: 878950104
  • Exchanges: Toronto (TSX)
  • Initial Public Offering: July 27, 1998
  • Auditors: KPMG LLP
  • Legal Counsel: McCarthy Tétrault LLP

Transfer Agent and Registrar

  • Computershare Investor Services Inc.
  • 100 University Avenue
  • 9th Floor, North Tower
  • Toronto, Ontario, Canada M5J 2Y1
  • (514) 982-7555 or 1-800-564-6253
  • (514) 982-7635 (Fax)
  • service@computershare.com