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Tecsys Reports Financial Results for the Fourth Quarter and Full Year Fiscal 2021
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Fourth Quarter and Full Year Fiscal 2021 Results Conference Call
Ninth consecutive quarter of record revenue; SaaS revenue up 113% for the full year
Montreal, June 29, 2021— Tecsys Inc. (TSX: TCS), an industry-leading supply chain management SaaS company, today announced its results for the fourth quarter and full year of fiscal year 2021, ended April 30, 2021. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
Fourth Quarter Highlights:
- SaaS revenue increased by 107% to $5.5 million in Q4 2021, up from $2.7 million in Q4 2020.
- Cloud, maintenance and subscription revenue increased 30% year-over-year to $13.8 million in Q4 2021, up from $10.6 million in Q4 2020. The performance was primarily driven by SaaS.
- Annual Recurring Revenue (ARRi) at April 30, 2021 was up 9% to $52.5 million compared to $48.1 million at April 30, 2020 and up 6% sequentially from January 31, 2021 on a constant currency basis.
- During Q4 2021, SaaS subscription bookingsi (measured on an ARRi basis) were $3.5 million, down 14% compared to a record $4.1 million in the fourth quarter of 2020 but up 252% sequentially from $1.0 million in Q3 2021.
- Professional services revenue was up 12% to $12.1 million in Q4 2021 compared to $10.8 million in Q4 2020.
- Total revenue was a record $32.4 million, 17% higher than $27.7 million reported for Q4 2020.
- Gross margin was 49% compared to 46% in the prior year quarter. Total gross profit increased to $15.7 million, up 22% from $12.9 million in Q4 2020.
- Operating expenses increased to $13.1 million, higher by $0.8 million or 6% compared to $12.3 million in Q4 fiscal 2020 with continuing investment in sales and marketing as well as research and development.
- Profit from operations in Q4 2021 was $2.6 million, up 343% from $0.6 million in Q4 2020.
- Net profit was $2.0 million or $0.14 per share on a fully diluted basis in Q4 2021 compared to a net profit of $0.4 million or $0.03 per share for the same period in fiscal 2020.
- Adjusted EBITDAii was $3.9 million in Q4 2021, up 101% compared to $2.0 million reported in Q4 2020.
“We are pleased by our record results as we wrap up an extraordinary year. Our performance for the fourth quarter of fiscal 2021, as well as full year, is a testament to the need for truly adaptable and agile solutions. It was humbling to watch our clients adapt their businesses with the help of our solutions in the midst of a pandemic,” said Peter Brereton, president and CEO of Tecsys Inc. “As we report our ninth straight quarter of record revenue, as well as several notable wins over the last year, we are ready to hit the ground running into FY22 with a very strong pipeline. Our strategy to transition to a SaaS model is proving to be a home run for Tecsys.”
Mark Bentler, chief financial officer of Tecsys Inc., added, “Our revenue mix continues to arc towards SaaS across both new accounts and existing account expansions and migrations. This accelerating transition is improving the quality and consistency of our revenue streams and increasing the lifetime value of our customer base.”
Fiscal 2021 Highlights:
- SaaS revenue fiscal 2021 increased 113% to $19.2 million, up from $9.0 million in fiscal 2020.
- Cloud, maintenance and subscription revenue increased 29% year-over-year to $52.9 million in fiscal 2021, up from $41.1 million in fiscal 2020, driven primarily by SaaS revenue.
- SaaS subscription bookingsi increased 9% to $9.5 million in fiscal 2021 compared to $8.8 million in fiscal 2020.
- Professional services revenue was up 17% to $47.4 million in fiscal 2021 compared to $40.6 million in fiscal 2020.
- Revenue for fiscal 2021 was $123.1 million, up 17% from $104.9 million reported in fiscal 2020.
- Total gross profit increased to $60.6 million, up $10.3 million or 20% in fiscal 2021 compared to $50.3 million in the same period last year.
- Total gross profit margin was 49% in fiscal 2021 compared to 48% for fiscal 2020.
- Net profit for fiscal 2021 was $7.2 million, or $0.49 per diluted share, compared to a profit $2.3 million or $0.18 per share, for fiscal 2020.
- Adjusted EBITDAii for fiscal 2021 was $16.2 million, up 58% compared to $10.3 million for fiscal 2020.
On June 29, 2021, the Company declared a quarterly dividend of $0.065 per share payable on August 6, 2021 to shareholders of record at the close of business on July 16, 2021.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.
Fourth Quarter and Full Year Fiscal 2021 Results Conference Call
Date: June 30, 2021
Time: 8:30am EDT
Phone number: (877) 210-0456 or (416) 981-9006
The call can be replayed until July 7, 2021 by calling:
(800) 558-5253 or (416) 626-4100 (access code: 21995521)
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. 2021. 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 2021 Financial Statements.
ii See Non-IFRS Performance Measures in Management’s Discussion and Analysis of the 2021 Financial Statements.