SaaS subscription bookings up 57%, SaaS RPO climbs
40%
MONTREAL, Sept. 5,
2024 /CNW/ -- Tecsys Inc. (TSX: TCS), an
industry-leading supply chain management SaaS company, today
announced its results for the first quarter of fiscal 2025, ended
July 31, 2024. All dollar amounts are
expressed in Canadian currency and are prepared in accordance with
International Financial Reporting Standards (IFRS).
"We kicked off fiscal 2025 with solid momentum, setting a
positive tone for the year ahead," said Peter Brereton, president and CEO at Tecsys.
"Our continued SaaS performance is supported by the strength of our
team and the impact of our partners, together driving growth in a
highly engaged market. The supply chain market is on the move, and
we like our competitive position. We are confident in our ability
to build on this strong start."
Mark Bentler, chief financial
officer of Tecsys Inc., added, "Our Q1 fiscal 2025 financial
performance showcases 57% SaaS bookings growth, 40% SaaS RPO growth
and 33% SaaS revenue growth compared to the same quarter last year
and we are pleased that our underlying SaaS margins continue to
trend positively."
First Quarter Highlights:
- SaaS revenue increased by 33% to $15.3
million, up from $11.5 million
in Q1 2024.
- SaaS subscription bookingsi (measured on an
ARRi basis) increased by 57% to $3.0 million, compared to $1.9 million in the first quarter of fiscal
2024.
- SaaS Remaining Performance Obligation (RPOi)
increased by 40% to $194.9 million at
July 31, 2024, up from $139.4 million at the same time last year.
- Total revenue increased to $42.3
million compared to $42.0
million in Q1 2024.
- Net profit was $0.8 million or
$0.05 per share on a fully diluted
basis in Q1 2025, compared to $1.2
million or $0.08 per share for
the same period in fiscal 2024.
- Adjusted EBITDAii was $2.6
million compared to $3.2
million reported in Q1 last year.
- In the first quarter of fiscal 2025, Tecsys acquired 59,600 of
its outstanding common shares for approximately $2.2 million as part of its ongoing Normal Course
Issuer Bid.
Financial Guidance:
Tecsys is reiterating previously presented financial guidance as
follows:
|
FY25
Guidance
|
|
FY26
Guidance
|
|
Total Revenue
Growth
|
7-9%
|
|
n.a.
|
|
SaaS Revenue
Growth
|
30-32%
|
|
n.a.
|
|
Adjusted
EBITDAii Margin
|
8-9%
|
|
10-11%
|
On September 5, 2024, the
Company declared a quarterly dividend of $0.08 per share to be paid on October 4, 2024 to shareholders of record on
September 20, 2024.
Pursuant to the Canadian Income Tax Act, dividends paid by the
Company to Canadian residents are considered to be "eligible"
dividends.
Q1 2025 Financial Results Conference Call
Date: September 6, 2024
Time: 8:30 a.m. ET
Phone number: 800-836-8184 or 646-357-8785
The call can be replayed until September 13,
2024, by calling:
888-660-6345 or 646-517-4150 (access code: 81086#)
|
i See
Key Performance Indicators in Management's Discussion and Analysis
of the Q1 2025 Financial Statements.
|
|
ii See
Non-IFRS Performance Measures in Management's Discussion and
Analysis of the Q1 2025 Financial Statements.
|
About Tecsys
Tecsys is a global provider of advanced supply chain solutions.
With a commitment to innovation and customer success, the company
equips organizations with the essential software, technology and
expertise needed for operational excellence and competitive
advantage. Its cloud solutions serve a diverse range of industries,
including healthcare, distribution and converging commerce, across
multiple complex, regulated and high-volume markets. Built on the
Itopia® low-code application platform, Tecsys' offerings include
enterprise resource planning, warehouse management, consolidated
service management, distribution and transportation management,
supply management at the point of use and order management
solutions. Tecsys provides critical data insights and control
across the supply chain, ensuring that organizations are agile,
responsive and scalable.
Tecsys is publicly traded on the Toronto Stock Exchange under
the ticker symbol TCS. For more about Tecsys and its solutions,
please 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 the most
recently filed annual information form. These documents have been
filed with the Canadian securities commissions and are available on
our website (www.tecsys.com) and on SEDAR+ (www.sedarplus.ca).
Copyright © Tecsys Inc. 2024. All names, trademarks, products,
and services mentioned are registered or unregistered trademarks of
their respective owners.
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 and restructuring costs. The exclusion of interest
expense, interest income, income taxes and restructuring costs
eliminates the impact on earnings derived from non-operational
activities and non-recurring items, and the exclusion of
depreciation, amortization and stock-based compensation eliminates
the non-cash impact of these items.
The Company believes that these measures are useful measures of
financial performance without the variation caused by the impacts
of the items described above and that could potentially distort the
analysis of trends in our operating performance. In addition, they
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. Excluding these
items does not imply that they are necessarily non-recurring.
Management believes these non-IFRS financial measures, in addition
to conventional measures prepared in accordance with IFRS, enable
investors to evaluate the Company's operating results, underlying
performance and future prospects in a manner similar to management.
Although EBITDA and Adjusted EBITDA are frequently used by
securities analysts, lenders and others in their evaluation of
companies, they have limitations as an analytical tool, and should
not be considered in isolation, or as a substitute for analysis of
the Company's results as reported under IFRS.
The reconciliation of EBITDA and Adjusted EBITDA to the most
directly comparable IFRS measure is provided below.
|
Three
months
|
Trailing 12 months
|
|
ended July
31,
|
ended July 31,
|
|
(in thousands of
CAD)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Net profit for the
period
|
$
|
798
|
$
|
1,171
|
$
|
1,476
|
$
|
3,220
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
Depreciation of
property and equipment and right-of-use assets
|
|
371
|
|
384
|
|
1,464
|
|
1,729
|
|
Amortization of
deferred development costs
|
|
197
|
|
142
|
|
638
|
|
536
|
|
Amortization of other
intangible assets
|
|
334
|
|
396
|
|
1,431
|
|
1,603
|
|
Interest
expense
|
|
25
|
|
38
|
|
150
|
|
325
|
|
Interest
income
|
|
(217)
|
|
(269)
|
|
(963)
|
|
(851)
|
|
Income
taxes
|
|
436
|
|
859
|
|
218
|
|
2,458
|
|
EBITDA
|
$
|
1,944
|
$
|
2,721
|
$
|
4,414
|
$
|
9,020
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
|
647
|
|
452
|
|
2,496
|
|
2,153
|
|
Restructuring
costs
|
|
-
|
|
-
|
|
2,122
|
|
-
|
|
Adjusted
EBITDAii
|
$
|
2,591
|
$
|
3,173
|
$
|
9,032
|
$
|
11,173
|
|
Condensed Interim
Consolidated Statements of Financial Position
(Unaudited)
(In thousands of
Canadian dollars)
|
|
|
|
July 31,
2024
|
|
April 30,
2024
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
10,705
|
$
|
18,856
|
|
Short-term
investments
|
|
16,358
|
|
16,713
|
|
Accounts
receivable
|
|
19,691
|
|
22,090
|
|
Work in
progress
|
|
6,739
|
|
4,248
|
|
Other
receivables
|
|
449
|
|
134
|
|
Tax credits
|
|
7,708
|
|
6,422
|
|
Inventory
|
|
2,073
|
|
1,359
|
|
Prepaid expenses and
other
|
|
8,294
|
|
9,143
|
|
Total current
assets
|
|
72,017
|
|
78,965
|
|
Non-current
assets
|
|
|
|
|
|
Other long-term
receivables and assets
|
|
552
|
|
421
|
|
Tax credits
|
|
4,914
|
|
4,737
|
|
Property and
equipment
|
|
1,319
|
|
1,372
|
|
Right-of-use
assets
|
|
1,147
|
|
1,251
|
|
Contract acquisition
costs
|
|
4,466
|
|
4,478
|
|
Deferred development
costs
|
|
2,938
|
|
2,683
|
|
Other intangible
assets
|
|
7,450
|
|
7,703
|
|
Goodwill
|
|
17,470
|
|
17,363
|
|
Deferred tax
assets
|
|
9,073
|
|
9,073
|
|
Total non-current
assets
|
|
49,329
|
|
49,081
|
|
Total
assets
|
$
|
121,346
|
$
|
128,046
|
|
Liabilities
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
18,153
|
|
20,030
|
|
Deferred
revenue
|
|
33,261
|
|
36,211
|
|
Lease
obligations
|
|
826
|
|
812
|
|
Total current
liabilities
|
|
52,240
|
|
57,053
|
|
Non-current
liabilities
|
|
|
|
|
|
Other long-term accrued
liabilities
|
|
339
|
|
496
|
|
Deferred tax
liabilities
|
|
840
|
|
826
|
|
Lease
obligations
|
|
1,094
|
|
1,302
|
|
Total non-current
liabilities
|
|
2,273
|
|
2,624
|
|
Total
liabilities
|
$
|
54,513
|
$
|
59,677
|
|
Equity
|
|
|
|
|
|
Share
capital
|
$
|
52,394
|
$
|
52,256
|
|
Contributed
surplus
|
|
7,992
|
|
9,417
|
|
Retained
earnings
|
|
7,735
|
|
8,121
|
|
Accumulated other
comprehensive loss
|
|
(1,288)
|
|
(1,425)
|
|
Total equity
attributable to the owners of the Company
|
|
66,833
|
|
68,369
|
|
Total liabilities
and equity
|
$
|
121,346
|
$
|
128,046
|
|
Condensed Interim
Consolidated Statements of Income and Comprehensive Income
(Unaudited)
(In thousands of
Canadian dollars, except per share data)
|
|
|
Three Months Ended
July 31,
|
|
|
2024
|
2023
|
|
Revenue:
|
|
|
|
|
|
SaaS
|
$
|
15,314
|
$
|
11,495
|
|
Maintenance and
Support
|
|
8,715
|
|
8,298
|
|
Professional
Services
|
|
13,387
|
|
14,908
|
|
License
|
|
861
|
|
456
|
|
Hardware
|
|
3,999
|
|
6,818
|
|
Total
revenue
|
|
42,276
|
|
41,975
|
|
Cost of
revenue
|
|
22,548
|
|
22,475
|
|
Gross
profit
|
|
19,728
|
|
19,500
|
|
Operating
expenses:
|
|
|
|
|
|
Sales and
marketing
|
|
8,352
|
|
7,671
|
|
General and
administration
|
|
2,978
|
|
2,959
|
|
Research and
development, net of tax credits
|
|
7,331
|
|
7,112
|
|
Total operating
expenses
|
|
18,661
|
|
17,742
|
|
Profit from
operations
|
|
1,067
|
|
1,758
|
|
Other
income
|
|
167
|
|
272
|
|
Profit before income
taxes
|
|
1,234
|
|
2,030
|
|
Income tax
expense
|
|
436
|
|
859
|
|
Net
profit
|
$
|
798
|
$
|
1,171
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
Effective portion of
changes in fair value on designated revenue hedges
|
|
(20)
|
|
2,573
|
|
Exchange differences on
translation of foreign operations
|
|
157
|
|
(426)
|
|
Comprehensive
income
|
$
|
935
|
$
|
3,318
|
|
Basic and diluted
earnings per common share
|
$
|
0.05
|
$
|
0.08
|
|
Condensed Interim
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands of
Canadian dollars)
|
|
|
Three Months Ended
July 31,
|
|
|
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net profit
|
$
|
798
|
$
|
1,171
|
|
Adjustments
for:
|
|
|
|
|
|
Depreciation of
property and equipment and right-of-use-assets
|
|
371
|
|
384
|
|
Amortization of
deferred development costs
|
|
197
|
|
142
|
|
Amortization of other
intangible assets
|
|
334
|
|
396
|
|
Interest (income)
expense and foreign exchange (gain) loss
|
|
(167)
|
|
(272)
|
|
Unrealized foreign
exchange and other
|
|
(123)
|
|
(1,198)
|
|
Non-refundable tax
credits
|
|
(429)
|
|
(440)
|
|
Stock-based
compensation
|
|
647
|
|
452
|
|
Income taxes
|
|
3
|
|
14
|
|
Net cash from operating
activities excluding changes in non-cash working capital items
related to operations
|
|
1,631
|
|
649
|
|
Accounts
receivable
|
|
2,434
|
|
(1,820)
|
|
Work in
progress
|
|
(2,486)
|
|
(829)
|
|
Other receivables and
assets
|
|
(520)
|
|
(262)
|
|
Tax credits
|
|
(1,034)
|
|
(1,071)
|
|
Inventory
|
|
(714)
|
|
(842)
|
|
Prepaid
expenses
|
|
903
|
|
(283)
|
|
Contract acquisition
costs
|
|
(39)
|
|
3
|
|
Accounts payable and
accrued liabilities
|
|
(3,119)
|
|
(3,566)
|
|
Deferred
revenue
|
|
(2,961)
|
|
1,376
|
|
Changes in non-cash
working capital items related to operations
|
|
(7,536)
|
|
(7,294)
|
|
Net cash used in
operating activities
|
|
(5,905)
|
|
(6,645)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Payment of lease
obligations
|
|
(198)
|
|
(199)
|
|
Interest
paid
|
|
(25)
|
|
(38)
|
|
Issuance of common
shares on exercise of stock options
|
|
277
|
|
1,763
|
|
Shares repurchased and
cancelled
|
|
(2,211)
|
|
-
|
|
Net cash (used in)
provided by financing activities
|
|
(2,157)
|
|
1,526
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Interest
received
|
|
24
|
|
36
|
|
Transfers from
short-term investments
|
|
548
|
|
22
|
|
Acquisitions of
property and equipment
|
|
(209)
|
|
(102)
|
|
Deferred development
costs
|
|
(452)
|
|
(247)
|
|
Net cash used in
investing activities
|
|
(89)
|
|
(291)
|
|
Net decrease in cash
and cash equivalents during the period
|
|
(8,151)
|
|
(5,410)
|
|
Cash and cash
equivalents - beginning of period
|
|
18,856
|
|
21,235
|
|
Cash and cash
equivalents - end of period
|
$
|
10,705
|
$
|
15,825
|
|
Condensed Interim
Consolidated Statements of Changes in Equity
(Unaudited)
(In thousands of
Canadian dollars, except number of shares)
|
|
|
Share
capital
|
|
Contributed
Surplus
|
Accumulated
other
comprehensive
(loss) income
|
Retained
earnings
|
|
Total
|
|
Number
|
|
Amount
|
|
|
|
Balance, May 1,
2024
|
14,840,150
|
$
|
52,256
|
$
|
9,417
|
$
|
(1,425)
|
$
|
8,121
|
$
|
68,369
|
|
Net profit
|
-
|
|
-
|
|
-
|
|
-
|
|
798
|
|
798
|
|
Other comprehensive
(loss) income:
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Effective portion of
changes in fair value on designated revenue hedges
|
-
|
|
-
|
|
-
|
|
(20)
|
|
-
|
|
(20)
|
|
Exchange difference on
translation of foreign operations
|
-
|
|
-
|
|
-
|
|
157
|
|
-
|
|
157
|
|
Total comprehensive
income
|
-
|
|
-
|
|
-
|
|
137
|
|
798
|
|
935
|
|
Shares repurchased and
cancelled
|
(59,600)
|
|
(210)
|
|
(2,001)
|
|
-
|
|
-
|
|
(2,211)
|
|
Stock-based
Compensation
|
-
|
|
-
|
|
647
|
|
-
|
|
-
|
|
647
|
|
Dividends to equity
owners
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,184)
|
|
(1,184)
|
|
Share options
exercised
|
12,537
|
|
348
|
|
(71)
|
|
-
|
|
-
|
|
277
|
|
Total transactions
with owners of the Company
|
(47,063)
|
$
|
138
|
|
(1,425)
|
$
|
-
|
$
|
(1,184)
|
$
|
(2,471)
|
|
Balance, July 31,
2024
|
14,793,087
|
$
|
52,394
|
|
7,992
|
$
|
(1,288)
|
$
|
7,735
|
$
|
66,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, May 1,
2023
|
14,582,837
|
$
|
44,338
|
|
15,285
|
$
|
(17)
|
$
|
10,832
|
$
|
70,438
|
|
Net profit
|
-
|
|
-
|
|
-
|
|
-
|
|
1,171
|
|
1,171
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Effective portion of
changes in fair value on designated revenue hedges
|
-
|
|
-
|
|
-
|
|
2,573
|
|
-
|
|
2,573
|
|
Exchange difference on
translation of foreign operations
|
-
|
|
-
|
|
-
|
|
(426)
|
|
-
|
|
(426)
|
|
Total comprehensive
income
|
-
|
|
-
|
|
-
|
|
2,147
|
|
1,171
|
|
3,318
|
|
Stock-based
Compensation
|
-
|
|
-
|
|
452
|
|
-
|
|
-
|
|
452
|
|
Dividends to equity
owners
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,102)
|
|
(1,102)
|
|
Share options
exercised
|
111,306
|
|
2,307
|
|
(544)
|
|
-
|
|
-
|
|
1,763
|
|
Total transactions
with owners of the Company
|
111,306
|
$
|
2,307
|
|
(92)
|
$
|
-
|
$
|
(1,102)
|
$
|
1,113
|
|
Balance, July 31,
2023
|
14,694,143
|
$
|
46,645
|
|
15,193
|
$
|
2,130
|
$
|
10,901
|
$
|
74,869
|
SOURCE Tecsys Inc.
