TECSYS Reports Record Revenue and Contract Bookings in Q4 of FY2015
MONTREAL, July 8, 2015 — TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company, today announced its results for the fourth quarter and 2015 fiscal year, ended April 30, 2015. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
Fourth Quarter Highlights:
- Revenue grew 27% to $15.8M in Q4 2015 compared to $12.5M in Q4 2014.
- EBITDA was $955K for Q4 2015, compared to $1.258K recorded in Q4 2014.
- Proprietary products revenue grew 41% to $3.9M on strong demand from the Company’s Logi-D point-of-use products as well as increased healthcare license revenue.
- Services revenue improved by 16% to $9.1M, while services profit margin grew to 38% from 35% in Q4 2014.
- Profit from operations was $311K in Q4 2015, compared to $757K in Q4 2014.
- Profit from operations was reduced by $270K of one-time costs due to the elimination of redundant management positions as various operating units were integrated into a single operating unit. A large new customer signed on a SAAS revenue model basis, resulting in the deferral of approximately $550K of license fees, while on an accounting basis, the bulk of the expenses impacted the quarter.
- Recurring revenue on an annualized basis grew to $21.3M, a 21% improvement compared to Q4 2014, representing 37% of fiscal 2015 revenue.
- Total contract bookings in the fourth quarter totaled $16.0M, compared to $9.0M in the prior year period, a 79% increase
- Backlog was $44.9M at the end of Q4 2015 compared to $29.2M at the end of Q4 2014, a 54% increase.
- Cash and cash equivalents totaled $10.8M at the end of Q4 2015 compared to $8.8M at the end of Q4 2014.
- Signed one Health System (IDN) in the United States with five hospitals and five specialty centers.
- Go-lives at 23 customers' sites, most notably: two health systems, one third party logistics provider, two sites for a Fortune 300 imaging manufacturer and five new hospital sites with Logi-D products.
"Our fiscal 2015 results demonstrate the inherent growth potential of our innovative solutions as revenue rose substantially and order bookings doubled over the prior year," said Peter Brereton, President and CEO of TECSYS Inc. "New order bookings in the fourth quarter were up almost 80% from last year’s fourth quarter and included a significant SAAS agreement. These record bookings impacted the quarter with significant travel and incentive expense while roughly 70% of the related revenues are future. We continued to invest for growth in areas such as marketing and R&D as well as the launch of an additional sales team, allowing one team to concentrate on Healthcare while the other concentrates on Complex Distribution. We begin 2016 in an excellent financial and competitive position and I look forward to updating you on our progress throughout the year."
Highlights of the 2015 Fiscal Year
- Revenue increased 23% in fiscal 2015 to $57.3M, compared to $46.6M last fiscal year.
- EBITDA was $4.4M in fiscal 2015 compared to $4.1M last year.
- Profit from operations was $1.9M compared to $2.3M in fiscal 2014. Before acquisition related expenses and amortization, profit from operations was $2.3M in both fiscal 2015 and 2014.
- Net profit in fiscal 2015 was $1.5M, or $0.13 per share, compared to $1.8M, or $0.16 per share in fiscal year 2014. Before acquisition related expenses and amortization, net profit was $1.9M or $0.16 per share in fiscal 2015 compared to $1.8M or $0.16 per share in fiscal 2014
- Total contract bookings in fiscal 2015 totaled $47.0M, which includes the addition of six new IDN’s. This represents a 97% increase in contract bookings compared to $23.9M in fiscal 2014.
TECSYS also announced that the Company’s Board of Directors approved an increase of the quarterly dividend from $0.0225 per share to $0.025 per share, an increase of 11%. To this effect, the Company declared a dividend of $0.025 per share, to be paid on August 6, 2015 to shareholders of record on July 22, 2015.
Fourth Quarter and Fiscal Year 2015 Results Conference Call
Date: July 8, 2015
Time: 4:30 pm EST
Phone number: 800-734-4208 or 416-620-9188
The call can be replayed by calling 800-558-5253 or 416-626-4100 (access code: 21771491).
View the Q4 FY2015 Financial Statements (PDF, 44KB)
TECSYS provides transformative supply chain solutions that equip our customers to succeed in a rapidly-changing omni-channel world. TECSYS solutions are built on a true enterprise supply chain platform, and include warehouse management, distribution and transportation management, supply management at point-of-use, as well as complete financial management and analytics solutions. Customers running on TECSYS' Supply Chain Platform are confident knowing they can execute, day in and day out, regardless of business fluctuations or changes in technology, they can adapt and scale to any business need or size, and they can expand and collaborate with customers, suppliers and partners as one borderless enterprise. From demand planning to demand fulfillment, TECSYS puts power into the hands of both front line workers and back office planners, and unshackles business leaders so they can see and manage their supply chains like never before.
TECSYS is the market leader in supply chain solutions for health systems and hospitals. Over 600 mid-size and Fortune 1000 customers trust their supply chains to TECSYS in the healthcare, service parts, third-party logistics, and general wholesale high-volume distribution industries. TECSYS' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.
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, 2016. These documents have been filed with the Canadian securities commissions and are available on this Web site and on SEDAR .
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