Tecsys Reports Financial Results for First Quarter Fiscal 2021
25% growth in recurring revenue drives another record quarter
Montreal, September 10, 2020 — Tecsys Inc. (TSX: TCS), an industry-leading supply chain management software company, today announced its results for the first quarter of fiscal year 2021, ended July 31, 2020. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
First Quarter Highlights:
- Cloud, maintenance and subscription revenue increased 25% year-over-year to $12.3 million in Q1 2021, up from $9.8 million in Q1 2020. The increase was primarily driven by SaaS.
- SaaS Revenue in Q1 2021 was up 121% to $3.8 million, up from $1.7 million in Q1 2020. At July 31, 2020, contracted SaaS backlogi was up 10% sequentially to $57.0 million from $52.0 million at April 30, 2020.
- ARRi at July 31, 2020 was up 29% to $49.3 million compared to $38.3 million at July 31, 2019 and up 4% sequentially from April 30, 2020 on a constant currency basis.
- During Q1 2021, SaaS subscription bookingsi (measured on an Annual Recurring Revenue (ARRi) basis) were $2.4 million, a 5x increase over $0.4 million reported in Q1 2020.
- Professional services revenue was up 15% to $11.2 million in Q1 2021 up from $9.7 million in Q1 2020. This increase continues the sequential trend from the fourth quarter of fiscal 2020. Professional services bookings were up 90% to $14.1 million in the first quarter of fiscal 2021 compared to $7.4 million in the same period last year.
- Total revenue was a record $28.1 million, 16% higher than $24.3 million reported for Q1 2020.
- Gross margin was stable at 48% compared to the prior year and up sequentially compared to 46% in Q4 2020. Total gross profit increased to $13.5 million, up 17% from $11.5 million in Q1 2020, generally in line with revenue growth.
- Operating expenses increased to $11.5 million, higher by $0.5 million or 4% compared to $11.0 million in Q1 fiscal 2020.
- Profit from operations was $2.0 million, compared to $0.5 million in Q1 2020.
- Profit was $1.2 million or $0.08 per share on a fully diluted basis in Q1 2021 compared to a loss of $0.3 million or ($0.02) per share for the same period in fiscal 2020.
- Adjusted EBITDAii was $3.5 million in Q1 2021, up 76% compared to $2.0 million in Q1 2020.
“The first quarter of fiscal 2021 represented a continuation of the positive trends set in the last fiscal year,” said Peter Brereton, president and CEO of Tecsys Inc. “This is our sixth straight quarter reporting record revenue which is particularly pleasing given the economic backdrop caused by the pandemic. We added another hospital network and saw major expansions and upgrades from our account base. We are also seeing robust growth in our pipeline of business which continues to set records for the company on a quarterly sequential basis.”
Mark Bentler, chief financial officer of Tecsys Inc., added, “We had significant sequential growth in SaaS revenue in Q1 2021, up 45% compared to Q4 2020 and up 121% versus Q1 2020. This is driving solid growth in overall recurring revenue which was our largest revenue stream for the quarter. In Q1 fiscal 2021, SaaS revenue represented 31% of our overall recurring revenue stream, up from 18% in the same quarter last year. We are pleased with this significant progress in our continued transition to SaaS.”
On September 10, 2020 the Company declared a quarterly dividend of $0.06 per share payable on October 9, 2020 to shareholders of record at the close of business on September 25, 2020.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.
First Quarter Fiscal 2021 Results Conference Call
Date: September 10, 2020
Phone number: (877) 308-2053 or (416) 641-6202
The call can be replayed until September 17 , 2020 by calling:
(800) 558-5253 or (416) 626-4100 (access code: 21968469).
Tecsys is a global provider of supply chain solutions that equip the borderless enterprise for growth. Organizations thrive when they have the software, technology and expertise to drive operational greatness and deliver on their brand promise. Spanning healthcare, retail, service parts, third-party logistics, and general wholesale high-volume distribution industries, Tecsys delivers dynamic and powerful solutions for warehouse management, distribution and transportation management, supply management at point of use, retail order management, as well as complete financial management and analytics solutions. Tecsys’ shares are listed on the Toronto Stock Exchange under the ticker symbol TCS. For more information on Tecsys, visit www.tecsys.com.
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Forward Looking Statements
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 30, 2020. 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 © Tecsys Inc. 2020. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.
i See Key Performance Indicators in Management’s Discussion and Analysis of the Q1 2021 Financial Statements.
ii See Non-IFRS Performance Measures in Management’s Discussion and Analysis of the Q1 2021 Financial Statements.