TECSYS Reports Financial Results for the First Quarter of

MONTREAL, Sept. 06, 2018 (GLOBE NEWSWIRE) -- TECSYS Inc. (TSX: TCS) an industry-leading supply chain management software company, today announced its results for the first quarter of fiscal year 2019, ended July 31, 2018. The unaudited interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). All dollar amounts are expressed in Canadian dollars unless otherwise indicated.

First Quarter Highlights:

Backlog increased by $6.1 million to $47.8 million at the end of Q1 2019 up from $41.7 million at the end of Q1 2018.
Recurring revenue bookings in Q1 2019 were $2.0 million up from $519,000 in the corresponding quarter of last year.
Total contract value bookings amounted to $10.6 million, compared to $9.9 million for the same period in fiscal 2018.
Total revenue was $16.3 million, 1.4% lower than $16.5 million for Q1 2018. Exchange rate factors impacted this negatively by $300,000.
Proprietary products revenue increased 6.2% to $1.3 million from $1.2 million in Q1 2018.
Cloud, maintenance and subscription revenue declined by 1.4% to $7.0 million from $7.1 million in Q1 2018.
Professional services revenue was relatively flat year-over-year at $6.1 million.
Total gross profit margin was 47%, even with 47% in Q1 2018.
Operating expenses were flat at $7.7 million, compared to Q1 2018.
Loss from operations was $98,000 compared to a profit of $65,000 for the same period in fiscal 2018.
EBITDA was $536,000, compared to $687,000 for Q1 2018.
Cash and cash equivalents, as well as redeemable long-term investments, totaled $24.4 million at the end of Q1 fiscal 2019, compared to $23.5 million at the end of Q4 2018.

“Achieving record first quarter contract bookings for the second year in a row is a reflection of the increased momentum we have seen in our healthcare bookings in the second half of our last fiscal year, with two new hospital networks signing on this quarter. As well, we have seen great momentum with our cloud offering during the quarter where the total bookings for Cloud services surpassed the amount we booked during the whole fiscal year 2018.” said Peter Brereton, President and CEO of TECSYS Inc. “In June, we hosted a user conference and we are thankful for the strong support of our healthcare customers, which increased by 50% compared to our previous user conference held 20 months prior. This type of conference is a great investment in our customers and our future. Operating expenses remained flat compared to Q1 2018 in spite of our expenses related to our user conference.”

In thousands of dollars except per share amounts:

Results from Operations	3 Months Ended July 31, 2018			3 Months Ended July 31, 2017			12 Months Ended July 31, 2018			12 Months Ended July 31, 2017
Total Revenue	$16,282			$16,511			$70,489			$68,861
Gross Profit	$7,584			$7,752			$34,707			$34,342
Gross Margin %		47	%		47	%		49	%		50	%
Operating Expenses	$7,682			$7,687			$30,616			$26,569*
Op. Ex. As % of Revenue		47	%		47	%		43	%		39	%
Profit from Operations	($98		)	$65			$4,091			$7,773
EBITDA	$536			$687			$6,339			$10,237
EPS	$0.00			$0.01			$0.29			$0.49
Contract Bookings	$10,639			$9,892			$48,847			$46,504

* Recognized $4.6 million of Canadian federal and non-refundable R&D tax credit

The Company has declared a dividend of $0.05 per share to be paid on October 5, 2018 to shareholders of record at te close of business on September 21, 2018.

Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.

First Quarter 2019 Results Conference Call

Date: September 6, 2018

Time: 4:30 pm EDT

Phone number: (416) 981-9017 or (800) 584-1012

The call can be replayed until September 13th, 2018 by calling (416) 626-4100 or (800) 558 5253 (access code: 21894533)

About TECSYS

TECSYS provides transformative supply chain solutions that equip our customers to succeed in a rapidly-changing omni-channel world. TECSYS solutions are built on a true enterprise supply chain platform, and include warehouse management, distribution, transportation management, supply management at point-of-use as well as complete financial management and analytics solutions. Customers running on TECSYS' Supply Chain Platform are confident knowing they can execute, day in and day out, regardless of business fluctuations or changes in technology, they can adapt and scale to any business needs or size, and they can expand and collaborate with customers, suppliers and partners as one borderless enterprise. From demand planning to demand fulfillment, TECSYS puts power into the hands of both front-line workers and back office planners and unshackles business leaders so they can see and manage their supply chains like never before.

TECSYS is the market leader in supply chain solutions for health systems and hospitals. Over 600 mid-size and Fortune 1000 customers trust their supply chains to TECSYS in the healthcare, service parts, third-party logistics, and general wholesale high-volume distribution industries. TECSYS' shares are listed on the Toronto Stock Exchange under the ticker symbol TCS.

Contact

Solutions and General info: info@tecsys.com

Investor Relations: steve.li@tecsys.com, (514) 866-5800 ext. 4120

Media Relations: media@tecsys.com

By phone: (514) 866-0001 or (800) 922-8649

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 30th, 2018. 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).


TECSYS Inc.
Condensed Interim Consolidated Statements of Financial Position
As at July 31, 2018 and April 30, 2018
(in thousands of Canadian dollars)

		31-Jul-18			April 30,
		2018			2018
		(Unaudited)

Assets

Current assets
Cash and cash equivalents	$	14,382		$	13,496
Accounts receivable		12,570			13,939
Work in progress		1,274			617
Other receivables		718			535
Tax credits		4,225			3,391
Inventory		922			1,145
Prepaid expenses		2,646			1,829
Total current assets		36,737			34,952

Non-current assets
Long-term investments		10,007			10,007
Other long-term receivables		215			215
Tax credits		4,910			4,840
Property and equipment		2,905			3,091
Deferred development costs		1,627			1,850
Other intangible assets		1,237			1,342
Goodwill		3,596			3,596
Deferred tax assets		3,679			3,524
Total non-current assets		28,176			28,465

Total assets	$	64,913		$	63,417

Liabilities

Current liabilities
Accounts payable and accrued liabilities	$	8,972		$	9,087
Current portion of long-term debt		47			47
Deferred revenue		13,412			10,774
Total current liabilities		22,431			19,908

Non-current liabilities
Long-term debt		62			74
Other non-current liabilities		297			300
Total non-current liabilities		359			374
Total liabilities		22,790			20,282
Contingencies and commitments

Equity

Share capital		19,144			19,144
Contributed surplus		9,577			9,577
Retained earnings		13,465			14,527
Accumulated other comprehensive income (loss)		(63	)		(113	)
Total equity attributable to the owners of the Company		42,123			43,135



Total liabilities and equity	$	64,913		$	63,417
See accompanying notes to the unaudited condensed interim consolidated financial statements.


TECSYS Inc.
Condensed Interim Consolidated Statements of Income and Comprehensive Income
Three month periods ended July 31, 2018 and 2017
(in thousands of Canadian dollars, except per share data)

		Three Months			Three Months
		Ended			Ended
		July,			July,
		2018			2017
		(unaudited)			(unaudited)


Revenue:
Proprietary products	$	1,325		$	1,248
Third-party products		1,456			1,522
Cloud, maintenance and subscription		6,991			7,090
Professional services		6,067			6,144
Reimbursable expenses		443			507
Total revenue		16,282			16,511

Cost of revenue:
Products		1,275			1,360
Services		6,980			6,892
Reimbursable expenses		443			507
Total cost of revenue		8,698			8,759

Gross profit		7,584			7,752

Operating expenses:
Sales and marketing		3,434			3,633
General and administration		1,580			1,576
Research and development, net of tax credits		2,668			2,478
Total operating expenses		7,682			7,687

Profit from operations		(98	)		65

Net finance (income) costs		(92	)		(34	)

(Loss) Profit before income taxes		(6	)		99

Income taxes (recovery) expense		(19	)		30


Profit attributable to the owners of the Company	$	13		$	69

Other comprehensive income (loss):
Effective portion of changes in fair value on designated revenue hedges		50			795

Comprehensive income attributable to the owners of the Company	$	63		$	864

Basic and diluted earnings per common share	$	NIL		$	0.01

See accompanying notes to the unaudited condensed interim consolidated financial statements.


TECSYS Inc.
Condensed Interim Consolidated Statements of Cash Flows
Three-month periods ended July 31, 2018
(in thousands of Canadian dollars)

		Three Months			Three Months
		Ended			Ended
		July,			July,
		2018			2017
		(unaudited)			(unaudited)

Cash flows from (used in) operating activities:
Profit for the year	$	13		$	69
Adjustments for:
Depreciation of property and equipment		223			203
Depreciation of deferred development costs		278			302
Depreciation of other intangible assets		122			118
Net finance costs		(92	)		(34	)
Unrealized foreign exchange and other		142			(823	)
Non-refundable tax credits		(227	)		(189	)
Operating activities excluding changes in non-cash working capital items related to operations		459			(354	)

Accounts receivable		1,369			2,480
Work in progress		(657	)		(83	)
Other accounts receivable		(184	)		(354	)
Tax credits		(677	)		(688	)
Inventory		223			(119	)
Prepaid expenses		(411	)		77
Accounts payable and accrued liabilities		(853	)		(1,223	)
Deferred revenue		1,657			(234	)
Changes in non-cash working capital items related to operations		467			(144	)

Net cash from (used in) from operating activities		926			(498	)

Cash flows (used in) from financing activities:
Repayment of long-term debt		(12	)		(19	)
Issuance of common shares		-			10,454
Interest paid		-			(1	)
Net cash (used in) from financing activities		(12	)		10,434

Cash flows from (used in) investing activities:
Decrease (increase) in short-term & other investments		-			-
Interest received		81			36
Acquisitions of property and equipment		(37	)		(88	)
Proceeds on disposal of property and equipment		-			-
Acquisitions of other intangible assets		(17	)		(42	)
Deferred development costs		(55	)		(72	)
Net cash used in investing activities		(28	)		(166	)

Net increase in cash and cash equivalents during the year		886			9,770

Cash and cash equivalents - beginning of year		13,496			13,476

Cash and cash equivalents - end of year	$	14,382		$	23,246

See accompanying notes to the consolidated financial statements.


TECSYS Inc.
Condensed Interim Consolidated Statements of Changes in Equity
(in thousands of Canadian dollars, except number of shares)

	Share capital				Contributed		Accumulated			Retained			Total
	Number		Amount		surplus		other comprehensive			earnings
							income (loss)
Balance, April 30, 2018	13,082,376	$	19,144	$	9,577	$	(113	)	$	14,527		$	43,135

Adjustment on initial application of IFRS 15	-		-		-		-			(421	)		(421	)
	13,082,376	$	19,144	$	9,577	$	(113	)	$	14,106		$	42,714
Profit for the year	-		-		-		-			13			13
Other comprehensive income for the year:
Effective portion of changes in fair value on designated revenue hedges	-		-		-		50			-			50
Total comprehensive income for the year	-		-		-		50			13			63

Dividends to equity owners	-		-		-		-			(654	)		(654	)
Total transactions with owners of the Company	-		-		-		-			(654	)		(654	)

Balance, July 31, 2018	13,082,376	$	19,144	$	9,577	$	(63	)	$	13,465			42,123

Balance, April 30, 2017	12,315,326	$	19,144	$	9,577	$	(279	)	$	13,064		$	30,711

Profit for the year	-		-		-		-			69			69
Other comprehensive loss for the year:
Effective portion of changes in fair value on designated revenue hedges	-		-		-		795			-			795
Total comprehensive income (loss) for the year	-		-		-		795			69			864
Common shares issued under bought deal financing, net of taxes of $306	767,050		10,454		-		-			-			10,454
Dividends to equity owners	-		-		-		-			(589	)		(589	)
Total transactions with owners of the Company	767,050		10,454		-		-			(589	)		9,865

Balance, July 31, 2017	13,082,376	$	29,598	$	9,577	$	516		$	12,544		$	41,440

See accompanying notes to the consolidated financial statements.

TECSYS Reports Financial Results for the First Quarter of Fiscal 2019

Wins two new Healthcare Networks