Eighth consecutive quarter of record revenue; SaaS revenue up
89%
MONTREAL, Feb. 24, 2021 /CNW/ -- Tecsys Inc. (TSX:
TCS), an industry-leading supply chain management SaaS company,
today announced its results for the third quarter of fiscal year
2021, ended January 31, 2021. All
dollar amounts are expressed in Canadian currency and are prepared
in accordance with International Financial Reporting Standards
(IFRS).
Third Quarter Highlights:
- SaaS revenue increased by 89% to $4.7
million in Q3 2021, up from $2.5
million in Q3 2020.
- Cloud, maintenance and subscription revenue increased 26%
year-over-year to $13.4 million in Q3
2021, up from $10.6 million in Q3
2020. The performance was primarily driven by SaaS.
- Annual Recurring Revenue (ARRi) at January 31, 2021 was up 20% to $50.8 million compared to $42.5 million at January
31, 2020 and up 3% sequentially from October 31, 2020 on a constant currency
basis.
- During Q3 2021, SaaS subscription bookingsi
(measured on an ARRi basis) were $1.0 million, down 49% compared to $2.0 million in the third quarter of 2020, while
YTD bookings were up 29% compared to last year.
- Professional services revenue was up 24% to $12.3 million in Q3 2021 compared to $9.9 million in Q3 2020. Professional services
bookingsi were down 19% to $10.5
million in the third quarter of fiscal 2021 compared to
$12.9 million in the same period last
year, while YTD bookings were up 20% compared to last
year.
- Total revenue was a record $31.9
million, 19% higher than $26.8
million reported for Q3 2020.
- Gross margin was 48% compared to 48% in the prior year quarter.
Total gross profit increased to $15.4
million, up 20% from $12.8
million in Q3 2020.
- Operating expenses increased to $12.8
million, higher by $1.3
million or 12% compared to $11.4
million in Q3 fiscal 2020 with continuing investment in
sales and marketing as well as research and development.
- Profit from operations in Q3 2021 was $2.6 million, up 89% from $1.4 million in Q3 2020.
- Net profit was $1.8 million or
$0.12 per share on a fully diluted
basis in Q3 2021 compared to a net profit of $0.8 million or $0.06 per share for the same period in fiscal
2020.
- Adjusted EBITDAii was $4.0
million in Q3 2021, up 50% compared to $2.6 million reported in Q3 2020.
"Our performance for the third quarter of fiscal 2021 continues
to reflect momentum in the market for Tecsys solutions," said
Peter Brereton, president and CEO of
Tecsys Inc. "This is our eighth straight quarter reporting record
revenue. The second major COVID wave delayed some deals into
our fourth quarter resulting in a significant new business pipeline
for the last quarter of our fiscal year. As that wave
subsides, these deals are coming in. We were delighted
to sign six new accounts in the quarter, three of which were major
accounts that signed small initial orders with some significant
growth to come. Our developing partner ecosystem
continues to have a solid impact on our pipeline and deal
flow."
Mark Bentler, chief financial
officer of Tecsys Inc., added, "We expect to see our SaaS revenue
continue on its growth trend and we expect this to come from both
expansion and migrations of our base customers as well as from new
customer wins. With regard to new customer wins, we are
pleased with the addition of two new hospital networks during the
quarter."
Results from
operations
|
|
|
|
|
|
|
|
|
|
|
Trailing
12
|
|
Trailing
12
|
|
3 months
ended
|
|
3 months
ended
|
|
9 months
ended
|
|
9 months
ended
|
|
|
months
ended
|
|
months
ended
|
|
January 31,
2021
|
|
January 31,
2020
|
|
January 31,
2021
|
|
January 31,
2020
|
|
|
January 31,
2021
|
|
January 31,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
$
|
31 942
|
$
|
26 847
|
$
|
90 727
|
$
|
77 105
|
|
$
|
118 477
|
$
|
100 296
|
Cloud, Maintenance
and Subscription Revenue
|
|
13 358
|
|
10 575
|
|
39 043
|
|
30 420
|
|
|
49 681
|
|
39 780
|
Gross
Profit
|
|
15 407
|
|
12 834
|
|
44 907
|
|
37 422
|
|
|
57 803
|
|
48 331
|
Gross Margin
%
|
|
48%
|
|
48%
|
|
49%
|
|
49%
|
|
|
49%
|
|
48%
|
Operating
Expenses
|
|
12 777
|
|
11 439
|
|
36 857
|
|
33 308
|
|
|
49 159
|
|
45 054
|
Op. Ex. As % of
Revenue
|
|
40%
|
|
43%
|
|
41%
|
|
43%
|
|
|
41%
|
|
45%
|
Profit from
Operations
|
|
2 630
|
|
1 395
|
|
8 050
|
|
4 114
|
|
|
8 644
|
|
3 277
|
Adjusted
EBITDA ii
|
|
3 964
|
|
2 648
|
|
12 303
|
|
8 320
|
|
|
14 254
|
|
9 004
|
EPS basic
|
|
0.13
|
|
0.06
|
|
0.36
|
|
0.15
|
|
|
0.39
|
|
0.16
|
EPS
diluted
|
|
0.12
|
|
0.06
|
|
0.35
|
|
0.15
|
|
|
0.38
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License
Bookings
|
|
1 172
|
|
1 524
|
|
3 537
|
|
3 330
|
|
|
4 925
|
|
4 575
|
SAAS ARR
Bookings
|
|
993
|
|
1 952
|
|
6 055
|
|
4 683
|
|
|
10 130
|
|
5 698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Recurring
Revenue
|
|
50 817
|
|
42 471
|
|
50 817
|
|
42 471
|
|
|
50 817
|
|
42 471
|
Professional Services
Backlog
|
|
37 795
|
|
24 262
|
|
37 795
|
|
24 262
|
|
|
37 795
|
|
24 262
|
Year-to-date performance for first nine months of fiscal 2021
ended January 31, 2021
Highlights:
- SaaS revenue for the nine-month period increased 116% to
$13.7 million, up from $6.3 million in the first nine months of fiscal
2020.
- Cloud, maintenance and subscription revenue increased 28%
year-over-year to $39.0 million in
the first nine months of fiscal 2021, up from $30.4 million in the prior year, driven primarily
by SaaS revenue.
- SaaS subscription bookingsi increased 29% to
$6.1 million in the first nine months
of fiscal 2021 compared to $4.7
million in the prior year period.
- Professional services revenue was up 18% to $35.3 million in the first nine months of fiscal
2021 compared to $29.8 million in the
prior year period. Professional services bookings were up 20% to
$36.1 million in the first nine
months of fiscal 2021 compared to $30.0
million in the same period last year.
- Revenue for the first nine months of fiscal 2021 was
$90.7 million, up 18% from
$77.1 million reported in the
previous fiscal year period.
- Total gross profit increased to $44.9
million, up $7.5 million or
20% in the first nine months of fiscal 2021 compared to
$37.4 million in the same prior year
period.
- Total gross profit margin remained flat at 49% compared to the
first nine months of fiscal 2020.
- Net profit for the first nine months of fiscal 2021 was
$5.2 million, or $0.35 per diluted share, compared to a profit
$2.0 million or $0.15 per share, for the same period in fiscal
2020.
- Adjusted EBITDAii for the first nine months of
fiscal 2021 was $12.3 million, up 48%
compared to $8.3 million reported for
the same period in fiscal 2020.
On February 24, 2021, the Company
declared a quarterly dividend of $0.065 per share payable on April 8, 2021 to shareholders of record at the
close of business on March 18,
2021.
Pursuant to the Canadian Income Tax Act, dividends paid by the
Company to Canadian residents are considered to be "eligible"
dividends.
Third Quarter Fiscal 2021 Results Conference Call
Date: February 25, 2021
Time: 8:30am EST
Phone number: (800) 698-1231 or (416) 981-0147
The call can be replayed until March 4,
2021 by calling:
(800) 558-5253 or (416) 626-4100 (access code: 21991616)
About Tecsys
Tecsys is a global provider of supply chain solutions that equip
the borderless enterprise for growth. Organizations thrive when
they have the software, technology and expertise to drive
operational greatness and deliver on their brand promise. Spanning
healthcare, retail, service parts, third-party logistics, and
general wholesale high-volume distribution industries, Tecsys
delivers dynamic and powerful solutions for warehouse management,
distribution and transportation management, supply management at
point of use, retail order management, as well as complete
financial management and analytics solutions. Tecsys' shares are
listed on the Toronto Stock Exchange under the ticker symbol TCS.
For more information on Tecsys, visit www.tecsys.com.
Forward Looking Statements
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. More information about
the risks and uncertainties associated with Tecsys Inc.'s business
can be found in the MD&A section of the Company's annual report
and annual information form for the fiscal year ended April 30, 2020. These documents have been filed
with the Canadian securities commissions and are available on our
website (www.tecsys.com) and on SEDAR (www.sedar.com).
Copyright © Tecsys Inc. 2021. All names, trademarks, products,
and services mentioned are registered or unregistered trademarks of
their respective owners.
i See Key Performance Indicators in Management's
Discussion and Analysis of the Q3 2021 Financial Statements.
ii See Non-IFRS Performance Measures in Management's
Discussion and Analysis of the Q3 2021 Financial Statements.
Non-IFRS Measures
Reconciliation of EBITDA and Adjusted EBITDA
EBITDA is calculated as earnings before interest expense,
interest income, income taxes, depreciation and amortization.
Adjusted EBITDA is calculated as EBITDA before stock-based
compensation, fair value adjustment on contingent consideration
earnout and restructuring costs. The Company believes that these
measures are commonly used by investors and analysts to measure a
company's performance, its ability to service debt and to meet
other payment obligations, or as a common valuation
measurement.
The EBITDA and Adjusted EBITDA calculation for the three and
nine months ended January 31, 2021
and January 31, 2020 as derived from
IFRS measures in the Company's Consolidated financial statements is
as follows:
|
Three months
ended January
31, 2021
|
Three months
ended January
31, 2020
|
Nine months
ended January
31, 2021
|
Nine months
ended January
31, 2020
|
Profit for the
period
|
$
1,847
|
$
834
|
$
5,168
|
$
1,971
|
Adjustments
for: Depreciation of property and
equipment and
right-of-use assets
|
554
|
506
|
1,613
|
1,463
|
Amortization of
deferred development costs
|
48
|
104
|
209
|
417
|
Amortization of other
intangible assets
|
425
|
394
|
1,259
|
1,132
|
Interest
expense
|
158
|
267
|
629
|
838
|
Interest
income
|
(43)
|
(16)
|
(156)
|
(62)
|
Income
taxes
|
683
|
282
|
2,653
|
1,160
|
EBITDA
|
$
3,672
|
$
2,371
|
$
11,375
|
$
6,919
|
Adjustments for:
Stock
based compensation
|
292
|
277
|
928
|
810
|
Restructuring
costs
|
-
|
-
|
-
|
420
|
Fair value adjustment
on contingent consideration earnout – Tecsys A/S
|
-
|
-
|
-
|
171
|
Adjusted
EBITDA
|
$
3,964
|
$
2,648
|
$
12,303
|
$
8,320
|
Condensed Interim
Consolidated Statements of Financial Position
As at January 31,
2021 and April 30, 2020
(Unaudited)
(in thousands of
Canadian dollars)
|
|
|
|
|
January 31,
2021
|
April 30,
2020
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
19,538
|
$
27,528
|
Short-term
investments
|
20,079
|
10,000
|
Accounts
receivable
|
15,432
|
18,434
|
Work in
progress
|
554
|
837
|
Other
receivables
|
2,622
|
1,633
|
Tax
credits
|
6,531
|
4,162
|
Inventory
|
953
|
634
|
Prepaid
expenses
|
4,659
|
3,778
|
Total current
assets
|
70,368
|
67,006
|
Non-current
assets
|
|
|
Other long-term
receivables
|
239
|
350
|
Tax
credits
|
3,494
|
4,624
|
Property and
equipment
|
2,752
|
2,823
|
Right-of-use
assets
|
7,514
|
8,234
|
Contract acquisition
costs
|
2,588
|
2,324
|
Deferred development
costs
|
1,089
|
1,103
|
Other intangible
assets
|
12,929
|
13,401
|
Goodwill
|
17,745
|
17,540
|
Deferred tax
assets
|
7,021
|
7,028
|
Total non-current
assets
|
55,371
|
57,427
|
|
|
|
Total
assets
|
$
125,739
|
$
124,433
|
Liabilities
|
|
|
Current
liabilities
|
|
|
Accounts payable and
accrued liabilities
|
$
18,772
|
$
19,933
|
Deferred
revenue
|
18,654
|
16,163
|
Current portion of
long-term debt
|
1,227
|
1,231
|
Other current
liabilities
|
1,178
|
4,670
|
Lease
obligations
|
880
|
922
|
Total current
liabilities
|
40,711
|
42,919
|
Non-current
liabilities
|
|
|
Long-term
debt
|
8,700
|
9,600
|
Deferred tax
liabilities
|
1,688
|
1,638
|
Lease
obligations
|
8,538
|
9,157
|
Total non-current
liabilities
|
18,926
|
20,395
|
Total
liabilities
|
59,637
|
63,314
|
|
|
|
Equity
|
|
|
Share
capital
|
41,951
|
40,901
|
Contributed
surplus
|
11,654
|
10,964
|
Retained
earnings
|
11,339
|
8,838
|
Accumulated other
comprehensive income
|
1,158
|
416
|
Total equity
attributable to the owners of the Company
|
66,102
|
61,119
|
|
|
|
Total liabilities
and equity
|
$
125,739
|
$
124,433
|
Condensed Interim
Consolidated Statements of Income and Comprehensive
Income
For the three and
nine-month periods ended January 31, 2021 and 2020
(Unaudited)
(in thousands of
Canadian dollars, except per share data)
|
|
|
|
|
|
|
|
|
Three months
ended January 31,
2021
|
Three months
ended January 31,
2020
|
Nine months
ended January 31,
2021
|
Nine months
ended January 31,
2020
|
Revenue:
|
|
|
|
|
|
Proprietary
products
|
$
1,336
|
$
1,520
|
$
3,898
|
$
3,690
|
Third-party
products
|
4,934
|
4,397
|
12,431
|
11,641
|
Cloud, maintenance and
subscription
|
13,358
|
10,575
|
39,043
|
30,420
|
Professional
services
|
12,271
|
9,882
|
35,251
|
29,793
|
Reimbursable
expenses
|
43
|
473
|
104
|
1,561
|
Total
revenue
|
31,942
|
26,847
|
90,727
|
77,105
|
Cost of revenue
|
|
|
|
|
Products
|
4,209
|
3,530
|
10,296
|
9,287
|
Services
|
12,283
|
10,010
|
35,420
|
28,835
|
Reimbursable
expenses
|
43
|
473
|
104
|
1,561
|
Total cost of
revenue
|
16,535
|
14,013
|
45,820
|
39,683
|
Gross
profit
|
15,407
|
12,834
|
44,907
|
37,422
|
Operating
expenses:
|
|
|
|
|
Sales and
marketing
|
5,074
|
5,451
|
15,336
|
14,766
|
General and
administration
|
2,648
|
2,363
|
7,969
|
7,184
|
Research and
development, net of tax credits
|
5,055
|
3,625
|
13,552
|
10,938
|
Restructuring
costs
|
-
|
-
|
-
|
420
|
Total operating
expenses
|
12,777
|
11,439
|
36,857
|
33,308
|
|
|
|
|
|
Profit from
operations
|
2,630
|
1,395
|
8,050
|
4,114
|
Net finance
costs
|
|
100
|
279
|
229
|
983
|
Profit before
income taxes
|
2,530
|
1,116
|
7,821
|
3,131
|
Income tax
expense
|
|
683
|
282
|
2,653
|
1,160
|
Profit
attributable to the owners of the Company
|
$
1,847
|
$
834
|
$
5,168
|
$
1,971
|
Other comprehensive
income:
Effective
portion of changes in fair value on designated
revenue hedges
|
|
(431)
|
(49)
|
223
|
69
|
Exchange differences
on translation of foreign operations
|
|
111
|
33
|
519
|
(271)
|
Comprehensive
income attributable to the owners of the Company
|
$
1,527
|
$
818
|
$
5,910
|
$
1,769
|
Basic earnings per
common share
|
|
$
0.13
|
$
0.06
|
$
0.36
|
$
0.15
|
Diluted earnings
per common share
|
|
$
0.12
|
$
0.06
|
$
0.35
|
$
0.15
|
Condensed Interim
Consolidated Statements of Cash Flows
For the three and
nine-month periods ended January 31, 2021 and 2020
(Unaudited)
(in thousands of
Canadian dollars)
|
|
|
Three months
ended January 31,
2021
|
Three months
ended January 31,
2020
|
Nine months
ended January
31, 2021
|
Nine months
ended January 31,
2020
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Profit for the
period
|
$
1,847
|
$
834
|
$
5,168
|
$
1,971
|
Adjustments
for:
|
|
|
|
|
Depreciation of property and equipment and
right-of-use-assets
|
554
|
506
|
1,613
|
1,463
|
Amortization of deferred development costs
|
48
|
104
|
209
|
417
|
Amortization of other intangible assets
|
425
|
394
|
1,259
|
1,132
|
Net
finance costs
|
100
|
279
|
229
|
983
|
Unrealized foreign exchange and other
|
(474)
|
(12)
|
(946)
|
(597)
|
Non-refundable tax
credits
|
(333)
|
(297)
|
(1,003)
|
(1,043)
|
Stock-based compensation
|
292
|
277
|
928
|
810
|
Income
taxes
|
486
|
249
|
2,330
|
805
|
Net cash from operating activities excluding changes in
non-cash
working capital items related to operations
|
|
|
|
|
2,945
|
2,334
|
9,787
|
5,941
|
Accounts receivable
|
8,031
|
(214)
|
3,068
|
(1,524)
|
Work in
progress
|
829
|
(196)
|
288
|
134
|
Other
receivables
|
(9)
|
157
|
(87)
|
(304)
|
Tax credits
|
(907)
|
(656)
|
(2,565)
|
(1,694)
|
Inventory
|
(295)
|
26
|
(315)
|
(137)
|
Prepaid
expenses
|
(271)
|
(280)
|
(877)
|
(777)
|
Contract acquisition
costs
|
85
|
(326)
|
(264)
|
(683)
|
Accounts payable and
accrued liabilities
|
2,400
|
1,683
|
(508)
|
2,116
|
Deferred
revenue
|
(1,110)
|
404
|
2,468
|
788
|
Changes in non-cash
working capital items related to operations
|
8,753
|
598
|
1,208
|
(2,081)
|
|
|
|
|
|
Net cash from
operating activities
|
11,698
|
2,932
|
10,995
|
3,860
|
Cash flows from (used
in) financing activities:
Repayment of long-term debt
|
(303)
|
(238)
|
(903)
|
(710)
|
Payment of lease
obligations
|
(209)
|
(246)
|
(696)
|
(731)
|
Payment of
dividends
|
(937)
|
(785)
|
(2,667)
|
(2,224)
|
Payment of acquired tax
liability
|
-
|
-
|
(2,191)
|
-
|
Common shares issued on
exercise of stock options
|
776
|
-
|
812
|
-
|
Interest paid
|
(169)
|
(226)
|
(488)
|
(715)
|
Net cash used in
financing activities
|
(842)
|
(1,495)
|
(6,133)
|
(4,380)
|
Cash flows from (used
in) investing activities: Purchase of short-term
investments
|
-
|
-
|
(10,000)
|
-
|
Interest received
|
43
|
17
|
156
|
63
|
Payments related to prior
business acquisitions
|
(1,468)
|
(1,146)
|
(1,468)
|
(1,146)
|
Acquisitions of property and
equipment
|
(274)
|
(344)
|
(777)
|
(703)
|
Acquisitions of other
intangible assets
|
(39)
|
(19)
|
(560)
|
(154)
|
Deferred development
costs
|
(43)
|
(150)
|
(203)
|
(505)
|
Net cash used in
investing activities
|
(1,781)
|
(1,642)
|
(12,852)
|
(2,445)
|
Net increase
(decrease) in cash and cash equivalents during the
period
|
9,075
|
(205)
|
(7,990)
|
(2,965)
|
Cash and cash
equivalents - beginning of period
|
10,463
|
12,153
|
27,528
|
14,913
|
Cash and cash
equivalents - end of period
|
$
19,538
|
$
11,948
|
$
19,538
|
$
11,948
|
Condensed Interim
Consolidated Statements of Changes in Equity
For the nine-month
periods ended January 31, 2021 and 2020
(Unaudited)
(in thousands of
Canadian dollars, except number of shares)
|
|
|
Share
capital
|
|
|
|
|
|
Number
|
Amount
|
Contributed surplus
|
Accumulated other com- prehensive income (loss)
|
Retained
earnings
|
Total
|
|
|
|
|
|
|
Balance, April 30,
2020
|
14,416,543
|
40,901
|
10,964
|
416
|
8,838
|
61,119
|
Profit
for the period
|
-
|
-
|
-
|
-
|
5,168
|
5,168
|
|
|
|
|
|
|
|
Other
comprehensive income for
the period: Effective
portion
of changes in
fair value on
designated
|
|
|
|
|
|
|
revenue
hedges
|
-
|
-
|
-
|
223
|
-
|
223
|
Exchange
difference on translation
of foreign
operations
|
-
|
-
|
-
|
519
|
-
|
519
|
Total
comprehensive
income for the period
|
-
|
-
|
-
|
742
|
5,168
|
5,910
|
Stock-based Compensation
|
-
|
-
|
928
|
-
|
-
|
928
|
Dividends to
equity owners
|
-
|
-
|
-
|
-
|
(2,667)
|
(2,667)
|
|
|
|
|
|
|
|
Share options
exercised
|
48,552
|
1,050
|
(238)
|
-
|
-
|
812
|
Total transactions
with
owners of the Company
|
48,552
|
1,050
|
690
|
-
|
(2,667)
|
(927)
|
|
|
|
|
|
|
|
Balance, January
31, 2021
|
14,465,095
|
$
41,951
|
$
11,654
|
$
1,158
|
$
11,339
|
$
66,102
|
|
|
|
|
|
|
|
|
Balance, April 30,
2019
|
13,082,376
|
$
19,144
|
$
9,943
|
$
(207)
|
$
9,501
|
$
38,381
|
Profit for the
period
|
-
|
-
|
-
|
|
1,971
|
1,971
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) for
the
period:
|
|
|
|
|
|
|
Effective
portion
of changes in
fair value on
designated
|
|
|
|
|
|
|
revenue
hedges
|
-
|
-
|
-
|
69
|
-
|
69
|
Exchange
difference on
translation of
foreign
operations
|
-
|
-
|
-
|
(271)
|
-
|
(271)
|
Total comprehensive income
(loss) for the
period
|
-
|
-
|
-
|
(202)
|
1,971
|
1,769
|
Stock-based
Compensation
|
-
|
-
|
810
|
-
|
-
|
810
|
Dividends to
equity
owners
|
-
|
-
|
-
|
-
|
(2,224)
|
(2,224)
|
Stock options
Exercised
|
834
|
14
|
(3)
|
-
|
-
|
11
|
Total transactions
with
owners of the Company
|
834
|
14
|
807
|
-
|
(2,224)
|
(1,403)
|
|
|
|
|
|
|
|
Balance, January 31,
2020
|
13,083,210
|
$
19,158
|
$
10,750
|
$
(409)
|
$
9,248
|
$
38,747
|
SOURCE Tecsys Inc.