Investing in TECSYS



  • Founded in 1983. Headquartered in Montreal, Canada.
  • Market-leading provider of supply chain execution solutions to healthcare, high-volume distribution and 3PLs
  • Over 500 customers, several thousand sites in North America, Europe, Latin America
  • Publicly traded on the TSX since 1998 (TSX: TCSExternal Link )

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, transportation management software, delivery management software, business intelligence and analytics. The Company's customers include mid-size and Fortune 1000 corporations in healthcare and high-volume industries such as packaged gas, import-to-retail, industrial distribution, third-party logistics, and heavy equipment. 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 Supply Chain Execution 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'.

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.

TECSYS Target Market (PDF, 372K)


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 38% of revenue (end of FY2014) 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.
  • Dividend payouts: 9 cents/share/year, paid quarterly.

Improved Returns to Shareholders

Our strategy for improved EPS continues to be: revenue growth, focusing on selling our high margin products, and continuing to buy back our stock. 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.


Peter Brereton, President and CEO of TECSYS Inc., commented on the Q2 FY2015 results:

"Signing one of North America's largest IDNs was a notable achievement for us this quarter, and demonstrates the growing acceptance of our solutions and recognition of its quick ROI. We are now focused on integrating Logi-D's sales and marketing teams and have been actively introducing these new products to our existing and potential customers. Feedback has been positive and we continue to advance a number of opportunities which leverage our expanded product and client portfolio to accelerate growth."

FY2014 Financial Snapshot

$000 except for EPS and ROE
KPI 2013 2014
Revenue 43,759 46,558
EBITDA 2,966 4,076
Profit from Operations 1,268 2,265
EPS 0.08 0.16
Backlog 27,235 29,199
ROE% 5.7 11.3
Cash from Operations (137) 7,700
Recurring Revenue 15,350 17,614

Related Links

FY2014 Annual Report (PDF, 9.0M)

Most Recent Investor Presentation (PDF, 1.4M)


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)

Performance (as of the end of FY2014):

$000 except for EPS and ROE
KPI 2013 2014
Revenue 43,759 46,558
EBITDA 2,966 4,076
Profit from Operations 1,268 2,265
EPS 0.08 0.16
Backlog 27,235 29,199
ROE% 5.7 11.3
Cash from Operations (137) 7,700
Recurring Revenue 15,350 17,614

Dividend: 9 cents/share/year, paid quarterly