SaaS revenue up 41% for the full year
MONTREAL, June 29,
2022 /CNW/ -- Tecsys Inc. (TSX: TCS), an
industry-leading supply chain management SaaS company, today
announced its results for the fourth quarter and full year of
fiscal year 2022, ended April 30,
2022. All dollar amounts are expressed in Canadian currency
and are prepared in accordance with International Financial
Reporting Standards (IFRS).
Fourth Quarter Highlights:
- SaaS revenue increased by 40% to $7.7
million, up from $5.5 million
in Q4 2021.
- Annual Recurring Revenue (ARRi) at April 30, 2022 was up 20% to $62.7 million compared to $52.5 million at April 30,
2021.
- SaaS subscription bookingsi (measured on an
ARRi basis) were $4.5
million, up 29% compared to $3.5
million in the fourth quarter of 2021.
- Professional services revenue was up 6% to $12.9 million compared to $12.2 million in Q4 2021.
- Total revenue was $34.3 million,
6% higher than $32.4 million reported
for Q4 2021.
- Gross margin was 44% compared to 49% in the prior year
quarter.
- Total gross profit decreased to $15.1
million, down 4% from $15.7
million in Q4 2021.
- Operating expenses increased to $13.8
million, higher by $0.7
million or 6% compared to $13.1
million in Q4 fiscal 2021, with continued investment in
sales and marketing.
- Profit from operations was $1.3
million, down 50% from $2.6
million in Q4 2021.
- Net profit was $2.6 million or
$0.17 per share on a fully diluted
basis compared to a net profit of $2.0
million or $0.14 per share for
the same period in fiscal 2021. Net Profit was positively
impacted in the three and twelve months ended April 30, 2022 as a result of the recognition of
approximately $1.9 million net
deferred tax assets and the recognition of approximately
$0.6 million gain on remeasurement of
lease liability.
- Adjusted EBITDAii was $1.7
million, down 56% compared to $3.9
million reported in Q4 2021.
- A weaker USD to CAD exchange rate negatively impacted revenue
and Profit from operations and Adjusted AEBITDA by approximately
$0.7 million compared to the same
quarter last year.
"Our solid fourth quarter results cap off a compelling year of
top-line growth. SaaS bookings drove our double digit Annual
Recurring Revenue growth for the year and resulted in SaaS revenue
growth of 47% on a constant currency basis. We are proud of
our performance as the pandemic headwinds begin to subside and the
potential emergence of tailwinds position us for continued growth
well into the future." said Peter
Brereton, president and Chief Executive Officer of Tecsys
Inc. "Healthcare continues to be a significant contributor as we
added another two networks in the quarter for a total of eight in
the fiscal year. The rising adoption of our agile end-to-end
SaaS supply chain solutions by leading companies as the vendor of
choice cements the important role we play in their digital
transformation journeys and validates our strategy as well poised
for continued success."
Mark Bentler, chief financial
officer of Tecsys Inc., added, "Looking ahead, we believe our
evolution as a SaaS company and our drive to expand our partner
ecosystem will continue to have an impact on our revenue mix.
From an investment standpoint, we believe our existing
professional services capacity is adequate for the near term.
We believe that our prior investments in sales and marketing
put us in a solid position to grow as productivity continues to
improve. Our investment in research and development during
the fourth quarter will impact Q1 of fiscal 2023, but we expect
investment to moderate beyond that point."
Results from operations
|
|
|
|
|
|
|
|
|
|
3 months
ended
|
|
3 months
ended
|
|
Fiscal Year
ended
|
|
Fiscal Year
ended
|
|
April 30,
2022
|
|
April 30,
2021
|
|
April 30,
2022
|
|
April 30,
2021
|
|
|
|
|
|
|
|
|
|
Total
Revenue
|
$
|
34,288
|
$
|
32,374
|
$
|
137,200
|
$
|
123,101
|
Cloud, Maintenance and
Subscription Revenue
|
|
15,716
|
|
13,836
|
|
59,627
|
|
52,879
|
Gross Profit
|
|
15,130
|
|
15,723
|
|
60,310
|
|
60,630
|
Gross Margin
%
|
|
44 %
|
|
49 %
|
|
44 %
|
|
49 %
|
Operating
Expenses
|
|
13,819
|
|
13,092
|
|
54,934
|
|
49,949
|
Op. Ex. As % of
Revenue
|
|
40 %
|
|
40 %
|
|
40 %
|
|
41 %
|
Profit from
Operations
|
|
1,311
|
|
2,631
|
|
5,376
|
|
10,681
|
Adjusted
EBITDAii
|
|
1,730
|
|
3,917
|
|
10,130
|
|
16,220
|
EPS basic
|
|
0.18
|
|
0.14
|
|
0.31
|
|
0.50
|
EPS diluted
|
|
0.17
|
|
0.14
|
|
0.30
|
|
0.49
|
|
|
|
|
|
|
|
|
|
License
Bookings
|
|
540
|
|
752
|
|
2,402
|
|
4,288
|
SAAS ARR
Bookings
|
|
4,457
|
|
3,493
|
|
11,920
|
|
9,548
|
|
|
|
|
|
|
|
|
|
Annual Recurring
Revenue
|
|
|
|
|
|
62,737
|
|
52,485
|
Professional Services
Backlog
|
|
|
|
|
|
33,427
|
|
33,639
|
Fiscal 2022 Highlights:
- SaaS revenue increased 41% to $26.9
million, up from $19.2 million
in fiscal 2021.
- SaaS subscription bookingsi increased 25% to
$11.9 million compared to
$9.5 million in fiscal 2021.
- Professional services revenue was up 9% to $52.0 million compared to $47.5 million in fiscal 2021.
- Total revenue was $137.2 million,
up 11% from $123.1 million reported
in fiscal 2021.
- Gross margin was 44% compared to 49% for fiscal 2021.
- Total gross profit decreased to $60.3
million, down $0.3 million or
1% compared to $60.6 million in the
same period last year.
- Operating expenses increased to $54.9
million, higher by $5.0
million or 10% compared to $49.9
million in the same period of fiscal 2021.
- Profit from operations was $5.4
million, down from $10.7
million in the same period of fiscal 2021.
- Net profit was $4.5 million, or
$0.30 per diluted share, compared to
a profit $7.2 million or $0.49 per share, for fiscal 2021.
- Adjusted EBITDAii was $10.1
million, down 38% compared to $16.2
million for fiscal 2021.
- A weaker USD to CAD exchange rate negatively impacted revenue
by $6.6 million and Profit from
operations and Adjusted AEBITDA by $5.2
million compared to the same period last year.
On June 29, 2022, the Company
declared a quarterly dividend of $0.07 per share payable on August 5, 2022 to shareholders of record at the
close of business on July 15,
2022.
Pursuant to the Canadian Income Tax Act, dividends paid by the
Company to Canadian residents are considered to be "eligible"
dividends.
i See Key Performance Indicators in Management's
Discussion and Analysis of the 2022 Financial Statements.
ii See Non-IFRS Performance Measures in Management's
Discussion and Analysis of the 2022 Financial Statements.
Fourth Quarter and Full Year Fiscal 2022 Results Conference
Call
Date: June 30, 2022
Time: 8:30am EDT
Phone number: (800) 758-5606 or (416) 641-6662
The call can be replayed until July 7,
2022 by calling:
(800) 558-5253 or (416) 626-4100 (access code: 22019359)
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 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.sedar.com).
Copyright © Tecsys Inc. 2022. 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, fair value adjustment on contingent consideration
earnout, restructuring costs, gain on remeasurement of lease
liability and recognition of tax credits generated in prior
periods. The exclusion of interest expense, interest income, income
taxes and restructuring costs eliminates the impact on earnings
derived from non-operational activities, and the exclusion of
depreciation, amortization, and share-based compensation, fair
value adjustments, gains and losses on remeasurement of lease
liabilities and recognition of tax credits generated in prior years
eliminates the non-cash impact of these items. For the year ended
April 30, 2022, we amended the
definition of Adjusted EBITDA to include adjustments for the gain
on remeasurement of lease liability and the recognition of tax
credits generated in prior periods as a result of new significant
non-cash transactions.
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-GAAP 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, it has 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 EBITDA and Adjusted EBITDA calculation for fiscal 2022, 2021
and 2020 derived from IFRS measures in the Company's Consolidated
financial statements, is as follows:
|
|
Year ended April 30,
|
(in thousands of CAD)
|
2022
|
2021
|
2020
|
|
|
|
|
|
Profit for the
period
|
$
4,478
|
$
7,188
|
$
2,346
|
Adjustments
for:
|
|
|
|
|
Depreciation of
property and equipment and right-of-use assets
|
2,162
|
2,180
|
2,004
|
|
Amortization of
deferred development costs
|
290
|
269
|
536
|
|
Amortization of other
intangible assets
|
1,612
|
1,663
|
1,530
|
|
Interest
expense
|
622
|
787
|
1,080
|
|
Interest
income
|
(474)
|
(174)
|
(74)
|
|
Income taxes
|
946
|
3,169
|
1,234
|
EBITDA
|
$ 9,636
|
$
15,082
|
8,656
|
Adjustments
for:
|
|
|
|
|
Stock based
compensation
|
1,684
|
1,138
|
1,024
|
|
Fair value adjustment
on contingent consideration earnout – Tecsys A/S
|
-
|
-
|
171
|
|
Restructuring
costs
|
-
|
-
|
420
|
|
Gain on remeasurement
of lease liability
|
(573)
|
-
|
-
|
|
Recognition of tax
credits generated in prior periods
|
(617)
|
-
|
-
|
Adjusted
EBITDA
|
$ 10,130
|
$
16,220
|
$
10,271
|
Consolidated Statements
of Financial Position
|
As at April 30, 2022
and April 30, 2021
|
(in thousands of
Canadian dollars)
|
|
|
April 30, 2022
|
April 30, 2021
|
Assets
|
|
|
Current assets
|
|
|
Cash and cash
equivalents
|
$
23,004
|
$
25,752
|
Short-term
investments
|
20,239
|
20,100
|
Accounts
receivable
|
16,962
|
16,840
|
Work in
progress
|
1,579
|
182
|
Other
receivables
|
234
|
2,034
|
Tax
credits
|
5,224
|
5,359
|
Inventory
|
806
|
628
|
Prepaid
expenses
|
6,392
|
4,897
|
Total current assets
|
74,440
|
75,792
|
Non-current assets
|
|
|
192
|
303
|
Other
long-term receivables
|
Tax
credits
|
3,782
|
3,904
|
Property and
equipment
|
2,064
|
2,682
|
Right-of-use
assets
|
4,547
|
7,245
|
Contract
acquisition costs
|
3,177
|
2,678
|
Deferred
development costs
|
1,870
|
1,088
|
Other intangible
assets
|
10,301
|
12,194
|
Goodwill
|
16,863
|
17,417
|
Deferred tax
assets
|
8,608
|
6,006
|
Total non-current assets
|
51,404
|
53,517
|
|
|
|
Total assets
|
$
125,844
|
$
129,309
|
Liabilities
|
|
|
Current liabilities
|
|
|
Accounts payable
and accrued liabilities
|
$
16,971
|
$
19,417
|
Deferred
revenue
|
24,689
|
22,044
|
Current portion
of long-term debt
|
1,200
|
1,216
|
Other current
liabilities
|
-
|
500
|
Lease
obligations
|
662
|
848
|
Total current liabilities
|
43,522
|
44,025
|
Non-current liabilities
|
|
|
Long-term
debt
|
7,200
|
8,400
|
Deferred tax
liabilities
|
1,258
|
1,499
|
Lease
obligations
|
5,181
|
8,295
|
Total non-current liabilities
|
13,639
|
18,194
|
Total liabilities
|
57,161
|
62,219
|
Contingencies and other
commitments
|
|
|
Equity
|
|
|
Share
capital
|
43,973
|
42,700
|
Contributed
surplus
|
13,176
|
11,745
|
Retained
earnings
|
12,968
|
12,419
|
Accumulated
other comprehensive income
|
(1,434)
|
226
|
Total equity attributable to the owners of the
Company
|
68,683
|
67,090
|
|
|
|
Total liabilities and equity
|
$
125,844
|
$
129,309
|
Consolidated Statements
of Income and Comprehensive Income
|
Three and twelve-month
periods ended April 30, 2022 and 2021
|
(in thousands of
Canadian dollars, except per share data)
|
|
|
|
Three months
ended
April 30, 2022
|
Three months
ended
April 30, 2021
|
Twelve months
ended
April 30, 2022
|
Twelve months
ended
April 30, 2021
|
Revenue:
|
|
|
|
|
|
SaaS
|
$
7,708
|
$
5,492
|
$
26,929
|
$
19,164
|
Maintenance and
Support
|
8,008
|
8,344
|
32,698
|
33,715
|
Professional
Services
|
12,896
|
12,175
|
52,040
|
47,530
|
License
|
558
|
1,026
|
2,806
|
4,921
|
Hardware
|
5,118
|
5,337
|
22,727
|
17,771
|
Total revenue
|
34,288
|
32,374
|
137,200
|
123,101
|
Cost of
revenue
|
19,158
|
16,651
|
76,890
|
62,471
|
Gross profit
|
15,130
|
15,723
|
60,310
|
60,630
|
Operating expenses:
|
|
|
|
|
Sales and
marketing
|
6,388
|
5,649
|
24,294
|
20,985
|
General and administration
|
2,652
|
2,427
|
10,865
|
10,396
|
Research and development, net of tax
credits
|
4,779
|
5,016
|
19,775
|
18,568
|
Total operating expenses
|
13,819
|
13,092
|
54,934
|
49,949
|
|
|
|
|
|
Profit from operations
|
1,311
|
2,631
|
5,376
|
10,681
|
|
|
|
|
|
Net finance (income)
costs
|
(164)
|
95
|
(48)
|
324
|
Profit before income taxes
|
1,475
|
2,536
|
5,424
|
10,357
|
Income tax
expense
|
(1,111)
|
516
|
946
|
3,169
|
Net profit, attributable to the owners of the
Company
|
$
2,586
|
$
2,020
|
$
4,478
|
$
7,188
|
Other comprehensive
income:
Effective portion of
changes in fair value on designated
revenue
hedges
|
(52)
|
(300)
|
(693)
|
(77)
|
Exchange differences
on translation of foreign
operations
|
(375)
|
(632)
|
(967)
|
(113)
|
Comprehensive income attributable to the owners of
the Company
|
$
2,159
|
$
1,088
|
$
2,818
|
$
6,988
|
|
|
|
|
|
Basic earnings per common
share
|
$
0.18
|
$
0.14
|
$
0.31
|
$
0.50
|
Diluted earnings per common
share
|
$
0.17
|
$
0.14
|
$
0.30
|
$
0.49
|
Consolidated Statements
of Cash Flows
|
Three and twelve-month
periods ended April 30, 2022 and 2021
|
(in thousands of
Canadian dollars)
|
|
|
Three months
ended
April 30, 2022
|
Three months
ended
April 30, 2021
|
Twelve months
ended
April 30, 2022
|
Twelve months
ended
April 30, 2021
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Profit for the
period
|
$
2,586
|
$
2,020
|
$
4,478
|
$
7,188
|
Adjustments
for:
|
|
|
|
|
Depreciation of property and equipment and
right-of-use-assets
|
515
|
567
|
2,162
|
2,180
|
Amortization of deferred development
costs
|
87
|
60
|
290
|
269
|
Amortization of other intangible
assets
|
382
|
404
|
1,612
|
1,663
|
Interest expense (income) and foreign exchange (gain)
loss
|
409
|
95
|
525
|
324
|
Gain
on lease
remeasurement
|
(573)
|
-
|
(573)
|
-
|
Unrealized foreign exchange and other
|
(103)
|
(184)
|
1,117
|
(1,130)
|
Non-refundable
tax credits
|
(992)
|
(392)
|
(2,332)
|
(1,395)
|
Stock-based compensation
|
340
|
210
|
1,684
|
1,138
|
Income
taxes
|
(1,455)
|
215
|
402
|
2,545
|
Net cash from
operating activities excluding changes in non-cash
working capital items related to operations
|
|
|
|
|
1,196
|
2,995
|
9,365
|
12,782
|
Accounts
Receivable
|
4,365
|
(1,516)
|
(270)
|
1,552
|
Work in
progress
|
(194)
|
364
|
(1,410)
|
652
|
Other
receivables
|
80
|
376
|
219
|
289
|
Tax
credits
|
2,233
|
1,841
|
(397)
|
(724)
|
Inventory
|
142
|
320
|
(186)
|
5
|
Prepaid
expenses
|
330
|
(243)
|
(1,502)
|
(1,120)
|
Contract acquisition
costs
|
(389)
|
(90)
|
(499)
|
(354)
|
Accounts payable and
accrued liabilities
|
(757)
|
645
|
(3,171)
|
137
|
Deferred
revenue
|
1,352
|
3,426
|
2,700
|
5,894
|
Changes in non-cash
working capital items related to operations
|
7,162
|
5,123
|
(4,516)
|
6,331
|
|
|
|
|
|
Net cash from operating
activities
|
8,358
|
8,118
|
4,849
|
19,113
|
Cash flows from (used
in) financing activities:
Repayment of
long-term
debt
|
(300)
|
(312)
|
(1,216)
|
(1,215)
|
Payment of lease
obligations
|
(225)
|
(233)
|
(859)
|
(929)
|
Payment of
dividends
|
(1,022)
|
(940)
|
(3,929)
|
(3,607)
|
Refund (payment) of acquired
tax
liability
|
-
|
-
|
299
|
(2,191)
|
Common shares issued on
exercise of stock options
|
-
|
630
|
1,020
|
1,442
|
Interest
paid
|
(178)
|
(150)
|
(622)
|
(638)
|
Net cash used in financing
activities
|
(1,725)
|
(1,005)
|
(5,307)
|
(7,138)
|
Cash flows from (used
in) investing
activities:
Purchase of short-term
investments
|
-
|
-
|
-
|
(10,000)
|
Interest
received
|
57
|
18
|
175
|
174
|
Acquisitions of property and
equipment
|
(19)
|
(185)
|
(638)
|
(962)
|
Acquisitions of other
intangible
assets
|
(226)
|
(9)
|
(255)
|
(569)
|
Deferred development
costs
|
(162)
|
(51)
|
(1,072)
|
(254)
|
Payments related to prior
business
acquisitions
|
-
|
(672)
|
(500)
|
(2,140)
|
Net cash used in investing
activities
|
(350)
|
(899)
|
(2,290)
|
(13,751)
|
Net increase
(decrease) in cash and cash equivalents during the
period
|
6,283
|
6,214
|
(2,748)
|
(1,776)
|
Cash and cash
equivalents - beginning of period
|
16,721
|
19,538
|
25,752
|
27,528
|
Cash and cash equivalents - end of
period
|
$
23,004
|
$
25,752
|
$
23,004
|
$
25,752
|
Consolidated Statements
of Changes in Equity
|
For the year-ended
April 30, 2022 and 2021
|
(in thousands of
Canadian dollars, except number of shares)
|
|
|
|
Share
capital
|
|
|
|
|
|
|
Number
|
Amount
|
Contributed
surplus
|
Accumulated other
comprehensive
income (loss)
|
Retained
earnings
|
Total
|
|
|
|
|
|
|
|
|
Balance, May 1, 2021
|
|
14,505,095
|
$
42,700
|
$
11,745
|
$
226
|
$
12,419
|
$
67,090
|
Net profit
|
|
-
|
-
|
-
|
-
|
4,478
|
4,478
|
|
|
|
|
|
|
|
|
Other
comprehensive
income:
|
|
|
|
|
|
|
|
Effective portion
of changes in fair
value on designated
revenue hedges
|
|
-
|
-
|
-
|
(693)
|
-
|
(693)
|
Exchange difference
on translation of
foreign operations
|
|
-
|
-
|
-
|
(967)
|
-
|
(967)
|
Total comprehensive
income
|
|
-
|
-
|
-
|
(1,660)
|
4,478
|
2,818
|
Stock-based
compensation
|
|
-
|
-
|
1,684
|
-
|
-
|
1,684
|
Dividends to
equity
owners
|
|
-
|
-
|
-
|
-
|
(3,929)
|
(3,929)
|
Share options
exercised
|
|
57,800
|
1,273
|
(253)
|
-
|
-
|
1,020
|
|
|
|
|
|
|
|
|
Total transactions with
owners of the Company
|
|
57,800
|
1,273
|
1,431
|
-
|
(3,929)
|
(1,225)
|
|
|
|
|
|
|
|
|
Balance, April 30, 2022
|
|
14,562,895
|
$
43,973
|
$
13,176
|
$
(1,434)
|
$
12,968
|
$
68,683
|
|
|
|
|
|
|
|
|
Balance, May 1, 2020
|
|
14,416,543
|
$
40,901
|
$
10,964
|
$
416
|
$
8,838
|
$
61,119
|
Net profit
|
|
-
|
-
|
-
|
-
|
7,188
|
7,188
|
Other
comprehensive
income:
|
|
|
|
|
Effective portion
of changes in fair
value on
designated
|
|
|
|
|
revenue hedges
-
|
-
|
-
|
(77)
|
-
|
(77)
|
Exchange
difference
on translation
of
foreign
operations
-
|
-
|
-
|
(113)
|
-
|
(113)
|
Total comprehensive
income
-
|
-
|
-
|
(190)
|
7,188
|
6,998
|
Stock-based
compensation
|
|
-
|
|
1,138
|
-
|
|
1,138
|
Dividends to equity
owners
|
|
-
|
-
|
|
-
|
(3,607)
|
(3,607)
|
Share options
exercised
|
|
88,552
|
1,799
|
(357)
|
-
|
-
|
1,442
|
Total transactions with
owners of the
Company
88,552
|
1,799
|
781
|
-
|
(3,607)
|
(1,027)
|
|
|
|
|
|
|
Balance, April 30,
2021
14,505,095
|
$
42,700
|
$
11,745
|
$
226
|
$
12,419
|
$
67,090
|
|
|
|
|
|
|
|
|
|
|
SOURCE Tecsys Inc.