TECSYS reports fiscal 2015 Q1 results

Records 23 percent revenue growth.

TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company, has announced its results for the first quarter of fiscal year 2015, ended July 31, 2014. All dollar amounts are expressed in Canadian currency and are prepared in accordance with the International Financial Reporting Standards (IFRS) and are unaudited.

First Quarter Highlights:

  • Revenue grew 23% to $13.0M in Q1 2015 compared to $10.6M in Q1 2014.
  • EBITDA increased by 73% to $1.0M in Q1 2015, compared to $579 K in Q1 2014. EBITDA in Q1 2015 includes a one-time acquisition expense of $134K related to Logi-D.
  • Profit from operations increased to $474K in Q1 2015, compared to $171K in Q1 2014. Before acquisition related expenses and amortizations, profit from operations increased to $650K compared to $171K in Q1, 2014.
  • Net profit increased to $343K or $0.03 per share compared to $83K or $0.01 per share in Q1 2014. Before acquisition related expenses and amortizations, net profit increased to $519K or $0.04 compared to $83K in Q1, 2014.
  • Services revenue improved by 23% to $8.7M while services profit margin expanded to 41% from 33% in Q1 2014.
  • Recurring revenue on an annualized basis grew to $18.6M, a 20% jump compared to the end of Q1 2014, representing 38% of the last twelve months trailing revenue.
  • Total contract bookings in the quarter totaled $9.7M, including $4.7M in total contract value from six new accounts, including three new hospital networks.
  • Go-lives at 17 customers' sites, most notably: one hospital network, one service parts provider and five new hospitals with Logi-D products.
  • Backlog was $33.6M at the end of Q1 2015 compared to $26.3M at the end of Q1 2014.
  • Cash and cash equivalents totaled $5.3M at the end of Q1 2015 compared to $8.8M at the end of Q4 2014.
  • On May 31, 2014, the Company acquired 100% of the issued and outstanding shares of Logi-D Holding Inc, a leading provider of point-of-use technology for supply chain automation servicing hospitals and healthcare organizations.

TECSYS also announced that the Company’s Board of Directors has declared a quarterly dividend of $0.0225 per share, to be paid on October 10, 2014 to shareholders of record at the close of business on September 26, 2014.

“This quarter we further extended our leadership in the hospital market, signing three notable new health systems and highlighting the industry’s growing demand for our products,” said Peter Brereton, President and CEO of TECSYS Inc. “Along with the momentum we have established in the hospital sector, we also booked an additional $4.0M of business in the broader supply chain market. Our services team continues to execute with increased efficiency, reflecting the improvements we made to their organization and capacity over the last two years. With the acquisition of Logi-D completed, we are now working on integrating their products and capitalizing on the new opportunities available to us to accelerate our growth.”

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