MONTREAL, QUEBEC — (Marketwired) — 07/06/17 — TECSYS Inc. (TSX: TCS), an industry-leading supply chain management software company, today announced its results for the fourth quarter and full year of fiscal year 2017, ended April 30, 2017. All dollar amounts are expressed in Canadian currency and are prepared in accordance with International Financial Reporting Standards (IFRS).
“The fourth quarter of fiscal 2017 delivered strong results in revenue, profit, EBITDA and continued trends in controlling operating costs; it was the second-best quarterly revenue in the company–s history,” said Peter Brereton, President and CEO of TECSYS Inc. “Q4 was up 6% over the prior quarter and caps off a year that sets the stage for continued growth.”
“During the fourth quarter, the Company recognized $4.6 million of prior year federal non-refundable R&D tax credits which reduced gross R&D expenditures by a corresponding amount. This is as a result of the Company–s increased probability that these tax credits will be used in the future to reduce cash taxes” said Berty Ho, outgoing CFO of TECSYS Inc.
Fourth Quarter Highlights:
“We were pleased to sign two significant hospital networks in the fourth quarter and see the average size of our new hospital contracts climb by approximately 50% for the full year of Fiscal 2017 compared to the prior year. While we experienced a slowing in new contract signing from the U.S. healthcare sector as a result of uncertainty around health insurance legislation, we continued to expand our clinical logistics solutions and increased penetration in our current customers,” added Mr. Brereton. “We completed some restructuring of management and sales in the fourth quarter to prepare the company for the next phase of growth. These one-time costs reduced EBITDA by $460,000.”
Fiscal 2017 Highlights:
The Board of Directors has appointed Brian Cosgrove as the new CFO effective immediately, replacing Berty Ho, who will be taking on a new role within the business.
The Company has declared a dividend of $0.045 per share to be paid on August 4, 2017 to shareholders of record at the close of business on July 21, 2017.
Pursuant to the Canadian Income Tax Act, dividends paid by the Company to Canadian residents are considered to be “eligible” dividends.
Subsequent to our fiscal year-end, the Company announced the closing of an offering of 1,000,000 common shares of the Corporation as well as an additional 100,050 common shares issued as a result of the exercise in full by the underwriters of their over-allotment option at a price of $15.00 per share, for gross proceeds of $16,500,750. The 2017 Offering includes a treasury offering of 767,050 Offered Shares by the Corporation for gross proceeds of $11,505,750.
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.
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, 2016. These documents have been filed with the Canadian securities commissions and are available on our website () and on SEDAR ().
Copyright © TECSYS Inc. 2017. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.
Contacts:
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(514) 866-5800 ext. 4120
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(514) 866-0001 or (800) 922-8649
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