MONTREAL, June 21 /CNW Telbec/ - TECSYS Inc. (TSX: TCS), a leading Supply
Chain Management (SCM) software company, announced today its financial results
for the fourth quarter and for fiscal 2005 ending April 30, 2005. All dollar
amounts are expressed in U.S. currency and are reported in accordance with
Canadian Generally Accepted Accounting Principles (GAAP), and are unaudited.
TECSYS' total revenues for the three months ended April 30, 2005, grew
49% to $8.1M from $5.5M in Q4 of the prior fiscal year. The company's product
revenues for the reporting quarter also grew 76% to $3.4M from $1.9M in the
comparable quarter. Operating costs increased by 40% to $3.6M from $2.6M in
the comparable quarter. Earnings from operations for the fourth quarter were
$174K compared to $246K in Q4 of the prior fiscal year. Net earnings for the
current quarter, after accounting for an exchange gain of $119K, were $334K
compared to $361K in the comparable quarter of last year. During the fourth
quarter, basic earnings per share were $0.02 compared to basic earnings per
share of $0.03 for Q4 of fiscal year 2004.
For the twelve months of fiscal year 2005, the company's revenue was
$24.3M compared to the previous fiscal year's revenue of $17.6M, or a revenue
growth of 38%. Earnings from operations for fiscal 2005 were $465K compared to
earnings from operations of $463K for fiscal 2004. Net earnings for fiscal
year 2005, after accounting for an exchange loss of $284K, were $334K compared
to net earnings of $415K in the prior fiscal year. This resulted in a basic
earnings per share of $0.02 in fiscal year 2005 compared to a basic earnings
per share of $0.03 in fiscal year 2004. The 6% rise in the cost of the
Canadian dollar compared to the previous year's average impacted the business
by a total of $713K including the $284K foreign exchange losses specifically
reflected on the income statement.
TECSYS continued to maintain a strong cash position, generating $768K
from operations, investing $2.6M in acquisitions and the repurchase of common
shares for cancellation and ending the year with $7.3M. Days sales outstanding
(DSO) was 70 days at the end of April 30, 2005.
Several key milestones were achieved in the fourth quarter:
- The acquisition of Application Solutions Inc. (now the Logistics
Management Group of TECSYS Inc.)
- The acquisition of Symplistech Inc. (an SAP consulting practice)
- The launch of TECSYS Europe Limited
"Fiscal 2005 has been an exciting year." said Peter Brereton, President
and Co-CEO of TECSYS Inc. "We strengthened our leadership in the enterprise
supply chain solutions space, with the addition of an I-Series based WMS
division, and an SAP consulting practice focused in distribution. We increased
our global presence with the launch of our German and Portuguese product lines
and the establishment of TECSYS Europe Limited. We believe that our increased
platform and geographic reach combined with the synergistic strengths of our
operating divisions leave us well positioned for the opportunities ahead."
TECSYS won eight new accounts in the quarter including:
- A full service food distributor in the great lakes region
- One of the largest U.S. hospital networks
- A manufacturer/distributor of foot health products in the Northeast
- A distributor of orthotics in Canada
- A large U.S. distributor of engine parts
- A distributor of soil management and conservation products
- An importer and distributor of professional sports products
- A global relocation management company
A number of existing customers continued to upgrade with the company such
as:
- A leading 3PL distributor in the healthcare industry
- A global distributor of automotive systems and components
- A distributor of office supplies
- A VAR in the telecommunications and utilities industry
Go-lives included:
- A pool products supplier's locations in Portugal, Spain and Toronto
- A restaurant equipment and supplies industry distributor
- An importer and distributor of first aid kits
- A distributor of Italian cheese and frozen pasta products
About TECSYS:
-------------
TECSYS is a leading supply chain management software provider that
delivers powerful enterprise distribution, warehouse and transportation
logistics software. The company's customers include about 600 mid-size and
Fortune 1000 corporations in healthcare, giftware, office products, third-
party logistics, and general wholesale high-volume distribution markets.
TECSYS' shares are listed on the Toronto Stock Exchange under the ticker
symbol TCS.
The statements in this news release 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. All names, trademarks, products, and
services mentioned are registered or unregistered trademarks of their
respective owners.
<<
Consolidated Balance Sheets
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
April 30, April 30,
2005 2004
(unaudited)
--------------------------
--------------------------
Assets
Current assets
Cash and cash equivalents 1,054 2,388
Short-term investments 5,435 5,665
Accounts receivable 7,000 4,705
Other accounts receivable 177 579
Tax credits receivable 1,241 1,056
Inventory 162 134
Prepaid expenses 749 367
--------------------------
15,818 14,894
Restricted cash equivalents and other
investments 815 747
Property, plant and equipment 2,044 2,059
Intangible assets 2,239 1,215
Goodwill 1,827 1,242
--------------------------
22,743 20,157
--------------------------
--------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 4,890 3,691
Current portion of long-term debt 106 175
Deferred revenue 1,868 1,809
--------------------------
6,864 5,675
Long-term debt 410 401
Other long-term liabilities 548 613
--------------------------
7,822 6,689
--------------------------
Shareholders' Equity
Capital stock 39,019 39,326
Contributed surplus 6,624 1,606
Cumulative translation adjustment 1,493 300
Deficit (32,215) (27,764)
--------------------------
14,921 13,468
--------------------------
22,743 20,157
--------------------------
--------------------------
Consolidated Statements of Deficit
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
Year Ended Year Ended
April 30, April 30,
2005 2004
(unaudited)
--------------------------
--------------------------
Balance - Beginning of year (27,764) (28,179)
Adjustment resulting from a change
in accounting policy re: stock-based
compensation (4,785) -
--------------------------
Restated balance - Beginning of year (32,549) (28,179)
Net earnings for the year 334 415
--------------------------
Balance - End of year (32,215) (27,764)
--------------------------
--------------------------
Consolidated Statements of Operations
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars, except share and per share data)
Three Months Three Months
Ended Ended Year Ended Year Ended
April 30, April 30, April 30, April 30,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited)
----------------------------------------------------
----------------------------------------------------
Revenue
Products 3,360 1,908 8,583 6,663
Services 4,560 3,327 14,963 10,164
Reimbursable expenses 209 227 726 723
-------------------------- ------------------------
8,129 5,462 24,272 17,550
Cost of revenue
Products 1,544 679 3,179 2,085
Services 2,584 1,725 7,953 5,371
Reimbursable expenses 209 227 726 723
-------------------------- ------------------------
4,337 2,631 11,858 8,179
-------------------------- ------------------------
Gross margin 3,792 2,831 12,414 9,371
-------------------------- ------------------------
Operating expenses
Sales & marketing 1,626 1,123 5,102 3,834
General &
administration 764 415 2,275 1,528
Gross research &
development 1,106 950 3,944 3,375
Research &
development tax
credits (185) (129) (484) (619)
Stock-based
compensation 19 - 174 -
Amortization of
property, plant
and equipment 169 142 589 592
Amortization of
intangible assets 119 84 349 198
-------------------------- ------------------------
3,618 2,585 11,949 8,908
-------------------------- ------------------------
Earnings from
operations 174 246 465 463
Interest income 48 40 189 268
Interest expense (7) (9) (36) (72)
Foreign exchange
gains (losses) 119 84 (284) (244)
-------------------------- ------------------------
Net earnings for the
period 334 361 334 415
-------------------------- ------------------------
-------------------------- ------------------------
Weighted average
number of common
shares outstanding
- basic 13,924,281 14,158,797 14,089,359 14,211,996
-------------------------- ------------------------
- diluted 13,997,213 14,378,636 14,170,083 14,332,507
-------------------------- ------------------------
-------------------------- ------------------------
-------------------------- ------------------------
Basic and diluted
net earnings per
common share
(in US dollars) $ 0.02 $ 0.03 $ 0.02 $ 0.03
-------------------------- ------------------------
-------------------------- ------------------------
Consolidated Statements of Cash Flows
Prepared in Accordance with Canadian Generally Accepted Accounting
Principles
-------------------------------------------------------------------------
(in thousands of U.S. dollars)
Three Months Three Months
Ended Ended Year Ended Year Ended
April 30, April 30, April 30, April 30,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited)
----------------------------------------------------
Cash flows from
Operating activities
Net earnings for the
period 334 361 334 415
Adjustments for
Amortization of
property, plant
and equipment 169 142 589 592
Amortization of
intangible assets 119 84 349 198
Stock-based
compensation costs 19 - 174 -
Unrealized foreign
exchange (gains)
losses (13) (32) 82 127
Changes in non-cash
working capital
items related to
operations
Decrease (increase)
in accounts
receivable (586) (291) 130 (274)
Decrease (increase)
in other accounts
receivable (110) 61 47 (138)
Decrease (increase)
in tax credits
receivable (216) (323) 160 461
Decrease in
inventory 119 - 119 -
Decrease (increase)
in prepaid expenses (301) (24) (224) 111
Decrease in long-
term accounts
receivable 48 - - -
Increase (decrease)
in accounts
payable and
accrued
liabilities 740 102 (433) (878)
Decrease in
deferred revenue (162) (11) (559) (578)
----------------------------------------------------
160 69 768 36
----------------------------------------------------
Financing activities
Decrease in bank
advances (275) - (275) -
Repayment of long-
term debt and
capital lease
obligations (3) (59) (104) (707)
Issuance of common
shares - - - 5
Purchase of common
shares for
cancellation (13) - (293) (360)
----------------------------------------------------
(291) (59) (672) (1,062)
----------------------------------------------------
Investing activities
Decrease in short-
term and other
investments 984 1,719 812 6,161
Acquisitions of
property, plant
and equipment (55) (38) (223) (243)
Acquisitions of
intangible assets 3 (9) (13) (40)
Business
combinations, net
of cash and cash
equivalents
acquired (2,409) (48) (2,041) (3,199)
----------------------------------------------------
(1,477) 1,624 (1,465) 2,679
----------------------------------------------------
Effect of foreign
exchange rate
fluctuations on cash
and cash equivalents (7) (73) 35 32
----------------------------------------------------
Change in cash and
cash equivalents (1,615) 1,561 (1,334) 1,685
Cash and cash
equivalents -
Beginning of Period 2,669 827 2,388 703
----------------------------------------------------
Cash and cash
equivalents - End of
Period 1,054 2,388 1,054 2,388
----------------------------------------------------
----------------------------------------------------
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%SEDAR: 00010494EF
