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About TECSYS
TECSYS Today
- Founded in 1983. Headquartered in Montreal, Canada.
- FY2009 revenue: CA $41 million
- Revenue growth since 2003: 10% (CAGR)
- Fifth largest Canadian Healthcare Solutions provider (Branham Group 2009)
- Nineteenth largest Canadian software company (Branham Group 2009)
- Over 500 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. The Company's customers include mid-size and Fortune 1000 corporations in the healthcare, heavy equipment, import-to-retail, industrial distribution, packaged gas, and high-volume distribution industries. TECSYS has built its business and its reputation through a single-minded focus on warehousing and distribution operations and by developing robust products and leading expertise over 25 years in business.
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. TECSYS has over 500 customers, all with a strong warehousing and distribution focus, and thousands of installed sites in North America, Europe and Latin America.
Our Market
The worldwide market for Supply Chain Execution (SCE) is expected to grow at a compounded annual growth rate (CAGR) of 9.9% over the next five years. The market was $4.6 billion in 2006 and is forecasted to be over $7.4 billion in 2011, according to a new “study” by ARC Advisory Group.
TECSYS Target Market (710K)
Competitive Advantages
People and Expertise
- More than 75% of TECSYS staff have 10–25 years 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 in customers' decision-making priorities.
Technology
- TECSYS' technology is integrated—a strong competitive advantage, providing high ROI to customers.
- TECSYS applications respond effectively to customers' business requirements—moving goods efficiently, tracking products and orders, and providing unprecedented visibility into customers' supply chains.
- TECSYS products are very user-friendly.
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.
Performance
"It was a strong quarter and a strong year for TECSYS on all accounts, particularly when considering the economic climate. With our vertical market focus, we were able to post improved net earnings and increase cash from operations, further solidifying our balance sheet. We also strengthened our product line with an exciting new release and continued to improve our position in our vertical market sectors."
Peter Brereton, President and CEO, TECSYS Inc.
Note: Effective May 1st, 2008, TECSYS' financial reporting is expressed in Canadian currency instead of US Currency.
Related Links
FY2009 Annual Report (1.4M)
Conclusions
Market Opportunity
North American and European markets for TECSYS' products are very optimistic—growth of the supply chain execution (SCE) market is forecasted at 9.9% CAGR in the next four years. (Source: Arc Advisory Group, August, 2007).
Focus
TECSYS is focused on select growth vertical markets where it has a unique value proposition and where the Company is achieving sustainable success. Currently, these include healthcare, heavy equipment, import-to-retail, industrial distribution, packaged gas, and high-volume distribution industries. In some of its select verticals, TECSYS has achieved leading market position such as in warehouse management for the Caterpillar Dealer market segment where it has gained 15% market share in North America.
TECSYS Target Market (710K)
Competitive Advantage
- Expertise: TECSYS has the unique luxury of in-house professional expertise in warehouse management and distribution. This not only provides customers with expert advice to solve problems, but differentiates its offering in the competitive landscape.
- Technology: TECSYS' technology is an enabling platform for solving customers' warehousing and distribution challenges. Its rich capabilities for certain vertical applications, its flexibility and ease-of-use, substantially increase its winning advantage against competitors.
Performance
| Fiscal Year KPI | 2009 | 2008 |
|---|---|---|
| Revenue | 41,017 | 39,945 |
| EBITDA | 3,138 | 2,607* |
| Earnings from Operations | 2,181 | 2,855* |
| EPS | 0.12 | 0.09 |
| Backlog | 20,360 | 19,247 |
| % ROE | 10.2 | 8.3 |
| Cash from operations | 3,799 | 2,754 |
| Recurring Revenue | 13,374 | 11,417 |
| * Net of non-refundable tax credit | ||
TECSYS' customer base is the heart of its value proposition—it is an exceptional group of Fortune 100 companies in healthcare, as well as innovative leaders in distribution and global providers of third party logistics.
Liquidity
TECSYS is virtually debt free. Its cash position is strong and growing.
Stock
TECSYS stock is undervalued.