TECSYS Reports Financial Results for the First Quarter of Fiscal 2019

Wins two new Healthcare Networks

Montreal, September 6, 2018 — TECSYS Inc. (TSX: TCS) an industry-leading supply chain management software company, today announced its results for the first quarter of fiscal year 2019, ended July 31, 2018. The unaudited interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). All dollar amounts are expressed in Canadian dollars unless otherwise indicated.

First Quarter Highlights:

  • Backlog increased by $6.1 million to $47.8 million at the end of Q1 2019 up from $41.7 million at the end of Q1 2018.
  • Recurring revenue bookings in Q1 2019 were $2.0 million up from $519,000 in the corresponding quarter of last year.
  • Total contract value bookings amounted to $10.6 million, compared to $9.9 million for the same period in fiscal 2018.
  • Total revenue was $16.3 million, 1.4% lower than $16.5 million for Q1 2018. Exchange rate factors impacted this negatively by $300,000.
  • Proprietary products revenue increased 6.2% to $1.3 million from $1.2 million in Q1 2018.
  • Cloud, maintenance and subscription revenue declined by 1.4% to $7.0 million from $7.1 million in Q1 2018.
  • Professional services revenue was relatively flat year-over-year at $6.1 million.
  • Total gross profit margin was 47%, even with 47% in Q1 2018.
  • Operating expenses were flat at $7.7 million, compared to Q1 2018.
  • Loss from operations was $98,000 compared to a profit of $65,000 for the same period in fiscal 2018.
  • EBITDA was $536,000, compared to $687,000 for Q1 2018.
  • Cash and cash equivalents, as well as redeemable long-term investments, totaled $24.4 million at the end of Q1 fiscal 2019, compared to $23.5 million at the end of Q4 2018.

"Achieving record first quarter contract bookings for the second year in a row is a reflection of the increased momentum we have seen in our healthcare bookings in the second half of our last fiscal year, with two new hospital networks signing on this quarter.  As well, we have seen great momentum with our cloud offering during the quarter where the total bookings for Cloud services surpassed the amount we booked during the whole fiscal year 2018," said Peter Brereton, President and CEO of TECSYS Inc. "In June, we hosted a user conference and we are thankful for the strong support of our healthcare customers, which increased by 50% compared to our previous user conference held 20 months prior. This type of conference is a great investment in our customers and our future. Operating expenses remained flat compared to Q1 2018 in spite of our expenses related to our user conference."

In thousands of dollars except per share amounts
Results from Operations 3 Months Ended
July 31, 2018
3 Months Ended
July 31, 2017
12 Months Ended
July 31, 2018
12 Months Ended
July 31, 2017
Total Revenue $16,282 $16,511 $70,489 $68,861
Gross Profit $7,584 $7,752 $34,707 $34,342
Gross Margin % 47% 47% 49% 50%
Operating Expenses $7,682 $7,687 $30,616 $26,569*
Op. Ex. As % of Revenue 47% 47% 43% 39%
Profit from Operations ($98) $65 $4,091 $7,773
EBITDA $536 $687 $6,339 $10,237
EPS $0.00 $0.01 $0.29 $0.49
Contract Bookings $10,639 $9,892 $48,847 $46,504

* Recognized $4.6 million of Canadian federal and non-refundable R&D tax credit

The Company has declared a dividend of $0.05 per share to be paid on October 5, 2018 to shareholders of record at the close of business on September 21, 2018.

Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.

First Quarter 2019 Results Conference Call

Date: September 6, 2018
Time: 4:30 pm EDT
Phone number: (416) 981-9017 or (800) 584-10125
The call can be replayed until September 13th, 2018 by calling (416) 626-4100 or (800) 558 5253 (access code: 21894533).

  View the Q1 FY2019 Financial Statements (PDF, 51K)


About TECSYS

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.

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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, 2018. These documents have been filed with the Canadian securities commissions and are available on this Web site and on SEDAR .

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