TECSYS Reports Financial Results for First Quarter Fiscal 2018

Record quarterly contract bookings achieved for a Q1

Montreal, September 7, 2017 — TECSYS Inc. (TSX: TCS) an industry-leading supply chain management software company, today announced its results for the first quarter of fiscal year 2018, ended July 31, 2017. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS) and are unaudited.

"The first quarter of our fiscal year covers the summer months and is typically our slowest quarter. This year however we experienced increased sales activity in the quarter resulting in a record level of contract bookings for a first quarter. Included in the new bookings is a contract from a provincial liquor board, the fourth to choose TECSYS for its SCM needs and another from one of our largest existing customers for additional distribution centre deployment," said Peter Brereton, President and CEO of TECSYS Inc. "The continued adoption of TECSYS solutions as the standardized platform for our customers and entire sectors is a testament to both the agility and reliability of our software. Today’s rapidly evolving supply chain requires agile solutions that the old monolithic systems struggle to provide."

"In order to provide more clarity to our investors, beginning this quarter we have regrouped cloud, maintenance and subscription revenue on a separate line on the Consolidated Statements of Income and Comprehensive Income. This revenue stream, which is mostly recurring in nature, grew by 7% in the quarter," said Brian Cosgrove, the Chief Financial Officer of TECSYS Inc.

First Quarter Highlights:

  • Total revenue was $16.5 million, 3% higher than $16.1 million for Q1 2017.
  • Proprietary products revenue remained flat at $1.2 million, compared to Q1 2017.
  • Cloud, maintenance and subscription revenue increased to $7.1 million, 7% higher than $6.6 million for Q1 2017.
  • Professional services revenue was $6.1 million, compared to $6.2 million in Q1 2017.
  • Total gross profit margin was flat at 47% compared to Q1 2017.
  • Operating expenses increased to $7.7 million, compared to $7.4 million for Q1 2017.
  • Profit from operations was $65,000, compared to $243,000 for the same period in fiscal 2017.
  • Profit was $69,000 or $0.01 per share in Q1 2018 compared to $128,000 or $0.01 per share for Q1 2017.
  • EBITDA was $687,000, compared to $814,000 for Q1 2017.
  • Total contract value bookings amounted to $9.9 million, a 64% increase over $6.0 million for Q1 2017.
  • Cash and cash equivalents totaled $23.2M at the end of Q1 2018 compared to $13.5M at the end of Q4 2017.

"The strong bookings are expected to translate into revenue growth in future quarters. In the meantime, we experienced increasing operating costs and lower profits in the quarter as we incurred sales commission expenses and applied additional resources to ensure a successful launch of a new point-of-use healthcare solution," added Mr. Brereton. "The solution is now live at a large U.S. hospital network and will serve as a model for further implementations in fiscal 2018."

In thousands of dollars except per share amounts
Results from Operations 3 Months Ended July 31, 2017 3 Months Ended July 31, 2016 Trailing 12 Months Ended July 31, 2017 Trailing 12 Months Ended July 31, 2016
Total Revenue $16,511 $16.097 $68,861 $68,632
Gross Margin $7,752 $7,606 $34,342 $35,011
Gross Margin % 47% 47% 50% 51%
Operating Expenses $7,687 $7,363 $26,569 $30,426
Op. Ex. As % of Revenue 47% 46% 39% 44%
Profit from Operations $65 $243 $7,773 $4,585
EBITDA $687 $814 $10,237 $7,147
EPS $0.01 $0.01 $0.49 $0.39
Contract Bookings $9,892 $6,016 $46,504 $41,524

The Company has declared a dividend of $0.045 per share to be paid on October 6, 2017 to shareholders of record at the close of business on September 22, 2017.

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

First Quarter 2018 Results Conference Call

Date: September 7, 2017 Time: 4:30 pm EST
Phone number: (416) 981-9070 or (800) 672-8406
The call can be replayed until September 14, 2017 by calling (416) 626-4100 or (800) 558-5253 (access code: 21857756).

  View the Q1 FY2018 Financial Statements (PDF, 39K)


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, 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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