TECSYS reports record revenue and earnings for fiscal 2016
Declares 20 percent dividend increase.
TECSYS Inc. an industry-leading supply chain management software company, today announced its results for the fourth quarter and fiscal year 2016, ended April 30, 2016. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
Fourth Quarter Highlights:
- Total revenue for Q4 2016 increased to $21.1M, higher by $5.4M or 34%, compared to $15.8M in Q4 2015.
- Proprietary products revenue increased to $5.9M, higher by $2.1M or 53%, in Q4 2016 in comparison to $3.9M for the same period last year.
- Services revenue increased to $11.5M, higher by $2.4M or 26%, in Q4 2016 compared to $9.1M in Q4 2015.
- Total gross margin in Q4 2016 improved to 55% compared to 49% in Q4 2015.
- Operating expenses for Q4 2016 increased to $8.5M, higher by $1.0M or 13%, compared to $7.5M for the same three-month period last year.
- Profit from operations of $3.2M representing 15% of revenue in Q4 2016 in comparison to $311K representing 2% of revenue for the same period in fiscal 2015.
- EBITDA grew to $3.8M in Q4 2016 compared to $955K in Q4 2015.
- Net profit was $3.8M or $0.31 per share in the Q4 2016 compared to $295K or $0.02 per share for Q4 2015.
- Total contract value bookings amounted to $13.1M in Q4 2016 in comparison to $16.0M for Q4 2015.
- Backlog was $44.6M at the end of Q4 2016 compared to $44.9M at the end of Q4 2015.
- Cash and cash equivalents totaled $9.7M at the end of Q4 2016 compared to $10.8M at the end of Q4 2015. Long term debt was reduced by $1.4M during fiscal 2016.
- Introduced OneSprint, a cloud-based Warehouse Management System (WMS) targeted for quick deployment and expected to enhance sales generated through partner channels.
"As a result of this success and with a positive outlook on our future, the Board of Directors has authorized a 20% increase in the quarterly dividend to $0.03 per share, beginning this August," he added.
Fiscal 2016 Highlights:
- Revenue increased by 18% to $67.5M from $57.3M in fiscal 2015.
- Gross Profit of $34.8M, a 26% increase from $27.6M in the previous year.
- Recurring revenue of $25M or 37% of fiscal 2016 revenue, compared to $21.3M at the end of fiscal 2015 or 37% of revenue of fiscal 2015.
- Profit from operations of $4.5M representing 7% of revenue in fiscal 2016 in comparison to $1.9M representing 3% of revenue in fiscal 2015.
- Net profit of $4.8M or $0.39 per share in fiscal 2016 compared to $1.5M or $0.13 per share in fiscal 2015.
- EBITDA increased by 63% to $7.2M from $4.4M in fiscal 2015.
- Signed five new healthcare systems or Integrated Distribution Networks (IDN).
- Subsequent to quarter-end, the Company's Board of Directors approved a 20% increase of the quarterly dividend policy from $0.025 per share to $0.03 per share, the first to be paid on August 4, 2016 to shareholders of record on July 21, 2016.
"Looking to fiscal 2017, we are well-positioned for further success," stated Mr. Brereton. "We will continue to benefit from our leadership position in healthcare SCM to add new customers and deepen our relationship with existing customers. In addition, we are confident that our dedicated complex distribution sales team will continue to drive contract wins in that segment adding to our broader market penetration. We will maintain a disciplined approach to operating costs across the business, as we look to leverage the investments we have made in sales, marketing and R&D over the last few years."
Learn more at www.tecsys.com