MONTREAL, July 8, 2010—TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company, announced today its results for the fourth quarter and 2010 fiscal year ended April 30th, 2010. The results of the 2010 fiscal year are audited. All dollar amounts are expressed in Canadian currency and reported in accordance with Canadian Generally Accepted Accounting Principles (GAAP).
Highlights of the Fourth Quarter include:
- Revenue was $8.8M in Q4 of fiscal 2010 compared to $10.4M in Q4 of fiscal 2009.
- Earnings from operations in Q4, 2010 were $851K compared to $815K for the same quarter of last year.
- EBITDA increased 30% to $1,279K in Q4, 2010 compared to $982K for Q4 of last year.
- Net earnings for Q4, 2010 were $1,266K or basic net earnings of $0.10 per share compared to $572K or basic net earnings of $0.04 per share in Q4, 2009. Net earnings for Q4, 2010 were achieved after accounting for net interest expense of $65K, foreign exchange gain of $10K, a share of net gain and amortization of intangible assets of $17K from a company in which TECSYS has an equity interest, and an income tax recovery of $453K.
- During the quarter non-refundable tax credits of $1.4M and non-recurring expenses of $539K were booked, positively impacting earnings by a total of $889K
- Annualized return-on-equity was 30.6% in Q4 of 2010 compared to 14.5% in Q4 of last fiscal year.
- At the end of Q4, 2010, annualized recurring revenue was $13.1M, or 36% of 2010 fiscal year revenue. Recurring revenue is principally made-up of annual software maintenance contracts.
- At the end of the fourth quarter, 2010, backlog was $18.3M compared to $17.8M at the end of Q3, 2010.
- During the quarter, the Company generated $1,409K cash from operations compared to $930K for the corresponding quarter of fiscal 2009.
- Cash and cash equivalents, as well as short-term and other investments at the end of Q4, 2010 amounted to $8.1M compared to $7.8M at the end of Q4, 2009, with no long-term debt.
Peter Brereton, President and CEO of TECSYS Inc., commented on the results: “While services and hardware revenue continued to lag, due to lower bookings in prior quarters, Q4 was an excellent quarter for new bookings. After a challenging year, Q4 saw the signing of nine new customers in our core verticals and an improved sales pipeline, signaling the start of the recovery in our customers’ economic situations. The full year numbers highlight the continuing shift in our business model toward higher proprietary license sales as a percentage of our business. During a tough year, we were able to grow our license sales by 9% and add 23 new clients. We continued to further penetrate our key verticals, with particularly substantial gains in healthcare. We increased our R&D investment in our new platform, while controlling costs and protecting the bottom line. We believe that we are in an excellent position as we exit the recession to take advantage of the next cycle of growth.”
During the quarter, the Company won the business of nine new customers, including:
- A pharmaceutical products distributor in Missouri
- A hospital supply network in Indiana
- A heavy equipment dealer in Louisville, Kentucky
- An auto parts distributor in Quebec
- An auto parts distribution network in Canada for a large Japanese auto manufacturer
- A supplier of corporate supplies & services in Ontario
- Two industrial distributors in Ontario
- A welding and supplies distributor in Florida
Furthermore, TECSYS also signed a substantial number of business contracts with existing customers and completed the go-live of sixteen projects for customers across all of the Company’s business units.
Highlights of the 2010 Fiscal Year include:
- Revenue for fiscal 2010 was $36.8M compared to $41M for last fiscal year.
- Earnings from operations for the year were $2,106K compared to $2,181K for the same period last year.
- EBITDA increased to $3,312K in 2010 compared to $3,138K in fiscal 2009.
- Net earnings for the year increased by 37.5% to $2,182K or basic net earnings of $0.18 per share, $0.17 per share on a fully diluted basis, compared to $1,587K or basic and diluted net earnings of $0.12 per share for 2009. Net earnings for fiscal 2010 were achieved after accounting for net interest expense of $69K, foreign exchange losses of $211K, a share of net loss and amortization of intangible assets of $79K from a company in which TECSYS has an equity interest, and an income tax recovery of $435K.
- In fiscal 2010, non-refundable tax credits of $1.4M and non-recurring expenses of $539K were booked, positively impacting earnings by a total of $889K.
- Return-on-equity was equal to 13.3% in 2010 compared to 10.2% for fiscal 2009.
TECSYS’ Q4 FY2010 Earnings Conference Call:
Date: July 8, 2010
Time: 5:00 pm
Phone number: 800-897-6274 or 416-981-9035
The call can be replayed by calling 800-558-5253 (access code: 21475368 ) or 416-626-4100 (access code: 21475368 ).
TECSYS is a leading supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company’s customers include over 500 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high-volume distribution industries. TECSYS’ shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.