Tecsys Inc. · TSX:TCS
Tecsys — Investor Presentation (December 2018)
22 slides from Tecsys's investor presentation, December 2018
Slide 1: Investor Presentation Q2 2019
Investor Presentation Q2 2019
Slide 2: Looking Forward Statements
Looking Forward Statements The statements in this presentation 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 uncertaintie
Slide 3: End-to-end, Integrated Supply Chain Management Solutions
End-to-end, Integrated Supply Chain Management Solutions SUPPLIERS PARTNERS CUSTOMERS ENTERPRISE SYSTEMS Collaboration Sales Order to Cash Procurement Demand Planning Warehouse Transportation & Inventory Point of Use Financial Management 3RD Party Billing ANALYTICS EXECUTE | ADAPT | SCALE | EXPAND 3
Slide 4: Healthcare Complex Distribution
( 600+ Complex Healthcare ( customers Distribution 1500+ sites 50% 44% 50% 56% of new acct of total 50,000+ of new acct of total users bookings revenue bookings revenue Visionary Provider of SCM Technology Heavy Equipment Dealers Health Systems Top 3PL Providers Wine and Spirits 4
Slide 5: Solid Sustaining Growth in Complex Distribution
Solid Sustaining Growth in Complex Distribution $1.5B Market in 2017 14% SCM Growth through 2019* Source: International Warehouse Logistics Association (IWLA), Warehousing Education and Research Council (WERC), American Production and Inventory Control Society (APICS), European Logistics Association
Slide 6: Building Market Leadership through Innovation
Visual Logistics Cloud-based Mobile-Enabled Visual images and OneSprint Delivery management instructions delivered WMS system in the designed for mobile via RF cloud for faster implementation Building Market Leadership 6 through Innovation 6
Slide 7: Leveraging Technology and Expertise in a New Vertical
Leveraging Technology and Expertise Drivers: in a New Vertical Regulatory Compliance Mergers & Acquisitions Affordable Care Act Sustaining Operating Margin Healthcare SCM The next wave of sector-wide process improvement 7
Slide 8: SCM Impact on Healthcare Costs
SCM Impact on Healthcare Costs 5-15% in SCM savings improves Operating Margin by 3-8% 8
Slide 9: Extending our Reach in Health Systems
Extending our Reach in Health Systems Health Systems Market Share Base Account Penetration 17% 500 Opportunity Target Health Systems Market Opportunity: 94% with Current Base: $9.6B 6% $610M+ 38% 83% of Total Bookings Market Opportunity Current Share Market Opportunity 9
Slide 10: TECSYS and UNC
TECSYS and UNC 12 Hospitals 249 Operating Rooms 9.5 Billion in Patient Revenue Signed a LOI to merge with Carolinas HealthCare System; the combined entities operate 2,675 Staffed Beds 56 Clinics 3.5 Billion in Total Revenue over 50 hospitals 10
Slide 11: Why We Win
Why We Win TECSYS brings to the table a very important TECSYS visibility gives us optimal performance flexibility… it allows us schedule and allocate at the six-sigma level with less than 5% resources more efficiently.” obsolescence in our supply chain. “We anticipate between $8 and $13 million in “
Slide 12: Steady Revenue Growth
Steady Revenue Growth In $CAD Millions Total Revenue Recurring Revenue* Recurring revenue % Growth Drivers • Cloud, Maint. and Sub. Revenue $80.0 100.0% (4-year CAGR 12%) $70.7 $70.0 $67.5 $68.4 • Healthcare revenue 90.0% (4-year CAGR 27%) $60.0 $57.3 80.0% $50.0 $46.6 70.0% $40.0 60.0% $30.0 $26.3
Slide 13: Predictable Professional Services Revenue
Predictable Professional Services Revenue Service Revenue Includes PS, EBS and ATS Proportion of PS revenue from Base Account in the last 5 years 83%* * Base account revenue for PS divided by total PS revenue 13
Slide 14: Healthcare Revenue Growth
Healthcare Revenue Growth In $CAD Millions Total Revenue 4-year CAGR 11% Healthcare Revenue 4-year CAGR 27% 14
Slide 15: Financial highlights
Financial highlights Q2, 2019 Q2, 2018 Δ YoY Q2, 2019 TTM Q2, 2018 TTM Δ YoY $ % $ % $ % $ % $ % $ % Revenue $18,184 100.0% $18,072 100.0% $112 0.6% $70,602 100.0% $70,415 100.0% $187 0.3% Cost of sales $8,674 47.7% $8,634 47.8% $40 0.5% $35,823 50.7% $34,926 49.6% $897 2.6% Gross margin $9,510 52.3
Slide 16: Acquisition of OrderDynamics
Acquisition of OrderDynamics Description Key Metrics ▪ Cloud-based Distributed Order Management software ▪ Purchase Price: $13.4 M ▪ 50 employees ▪ Revenue Forecast (March 31, 2019): $7M ▪ Based in Richmont Hill, Ontario ▪ Revenue forecast growth FY19/FY18: ~30% ▪ Key customers include: Ubisoft, Sep
Slide 17: Key Strengths
Key Strengths Focus Customization Expertise • Selected markets with deep • Tailored solutions to fit clients’ • Experienced workforce pockets needs perfectly • Clear understanding of • Solutions to the right problem • Seamlessly integrated sector specific issues • Differentiated technology • TECSYS
Slide 18: Continued Recognition by Gartner
Continued The vendor offers very differentiated Recognition capabilities, domain expertise and customer experience in healthcare provider SCM, with more than 60% of its bookings now in that by Gartner industry. It also is pursuing a notably unique vision for Omni-Channel concepts applied to pharmacy
Slide 19: Near-term Growth Strategies
Near-term Growth Strategies Healthcare • Additional POU solutions • Expand into pharmacy • Expand into home care Complex • Leverage new leadership with dedicated Distribution sales team • Revitalize and simplify products Base • Grow revenue as a percentage of total Accounts revenue Mergers & • Strat
Slide 20: Tracking Our Progress
Tracking Our Progress Continue Growing Enhanced 8% -12% 40% Topline Growth Total Operating Target Annualized Bookings Leverage Recurring Revenue 19
Slide 21: Corporate Overview
Corporate Overview $182M Symbol 22¢ 30% Market Cap 13.1M S/O TCS Dividend per Year Insider Ownership Beacon Securities EdgePoint Cormark Securities Fiera Brokerage Echelon Partners Institutional FTQ Coverage GMP Holders Mawer IA Securities Pembroke LB Securities Stableview 20
Slide 22: Question & Answer Thank You
Question & Answer Thank You 21