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Tecsys Reports Financial Results for the First Quarter of Fiscal 2025

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2 weeks ago

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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.

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G42 Collaborates with NVIDIA to Deliver Next-Generation Climate Solutions Using Earth-2

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ABU DHABI, UAE, Sept. 20, 2024 /PRNewswire/ — G42, a leader in AI and cloud computing, today announced that it is partnering with NVIDIA to advance climate technology with a focus on developing AI solutions aimed at dramatically enhancing the accuracy of weather forecasting globally.

The collaboration builds on NVIDIA’s Earth-2, an open platform that accelerates climate and weather predictions with interactive, AI-augmented, high-resolution simulation. G42 and NVIDIA will initially focus on a square-kilometer resolution weather forecasting model that improves the accuracy of meteorological predictions.

Key to this initiative is the establishment of a new operational base and Climate Tech Lab in Abu Dhabi. This state-of-the-art facility will serve as a hub for research and development, driving forward both companies’ commitment to environmental sustainability. This facility will also mobilize the creation of tailored climate and weather solutions that leverage over 100 petabytes of geophysical data assets.

Peng Xiao, Group CEO of G42, said, “This initiative with NVIDIA is a testament to our commitment to applying AI in ways that not only innovate but also solve critical global challenges. Establishing the Earth-2 Climate Tech Lab in Abu Dhabi allows us to leverage our unique capabilities and insights to foster a sustainable future for the world.”

In addition to fostering innovation in climate technology, the initiative will focus on building a robust framework for integrating enhanced weather prediction capabilities with comprehensive data metrics and visualization. This will assist organizations worldwide in achieving their sustainability goals through well-informed, data-driven environmental strategies.

“Our collaboration with G42 marks a pivotal step toward harnessing AI to understand and predict climate phenomena with unprecedented accuracy,” said Jensen Huang, founder and CEO of NVIDIA. “The Earth-2 Climate Tech Lab will propel environmental solutions using the most advanced accelerated computing and AI technology to benefit millions of people around the world.”

By uniting G42’s AI expertise with NVIDIA’s computational acumen, this partnership aims to deliver transformative climate solutions that combine scientific accuracy with real-world applicability, driving impactful change across industries and ecosystems.

About G42

G42 is a technology holding group, a global leader in creating visionary artificial intelligence for a better tomorrow. Born in Abu Dhabi and operating worldwide, G42 champions AI as a powerful force for good across industries. From molecular biology to space exploration and everything in between, G42 realizes exponential possibilities, today.
To know more visit www.g42.ai.

Media contacts
Media and PR Team, G42
media@g42.ai

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Kawasaki and CB&I Sign Strategic Collaborative Agreement for Promoting Commercial-Use Liquefied Hydrogen Supply Chain

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2 hours ago

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September 20, 2024

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HOUSTON, Sept. 19, 2024 /PRNewswire/ — Kawasaki Heavy Industries, Ltd. (Kawasaki) and CB&I, a wholly owned unrestricted subsidiary of McDermott, announced today their signing of a strategic agreement for promoting a commercial-use liquefied hydrogen (LH2) supply chain and realizing a zero-carbon-emission society. The signing ceremony took place at Gastech Exhibition & Conference in Houston on September 18, 2024.

“We are very pleased for this opportunity to build and launch a commercial liquefied hydrogen supply chain in cooperation with CB&I,” said Motohiko Nishimura, President, Energy Solutions & Marine Engineering Company, Kawasaki Heavy Industries, Ltd. “By taking advantage of both companies’ strengths and specialized know-how, we aim to cost down hydrogen, strengthen hydrogen supply chain competitiveness, and accelerate the transition to a zero-carbon society.”

Both companies will use their specialized know-how to provide infrastructure that will enable commercial-scale international LH2 supply chains in order to help achieve carbon-neutrality. By leveraging our combined expertise to deliver large-scale LH2 infrastructure solutions, CB&I and Kawasaki are removing barriers, driving down costs and enhancing scalability across the entire supply chain.

“This strategic partnership represents a significant advancement in liquid hydrogen storage capabilities,” said Mark Butts, Senior Vice President of CB&I. “Our technical expertise and extensive experience in liquid hydrogen storage position us at the forefront of the energy transition, delivering reliable storage solutions and executing projects worldwide with proven success.”

Under this agreement, the companies will provide infrastructure to advance the global realization of a sustainable energy economy and meet decarbonization targets. This collaboration will reduce LH2 infrastructure costs and contribute to more widespread use of this clean and efficient energy source.

About CB&I
CB&I is the world’s leading designer and builder of storage facilities, tanks, and terminals. With more than 60,000 structures completed throughout its 130-year history, CB&I has the global expertise and strategically located operations to provide its customers world-class storage solutions for even the most complex energy infrastructure projects. CB&I is a wholly owned unrestricted subsidiary of McDermott. To learn more, visit www.cbi.com.

About McDermott
McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Our customers trust our technology-driven approach engineered to responsibly harness and transform global energy resources into the products the world needs. From concept to commissioning, McDermott’s innovative expertise and capabilities advance the next generation of global energy infrastructure—empowering a brighter, more sustainable future for us all. Operating in over 54 countries, McDermott’s locally-focused and globally-integrated resources include more than 30,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.

About Kawasaki Heavy Industries, Ltd.
Kawasaki Heavy Industries, Ltd. is general engineering manufacturer with over 125 years of experience manufacturing products spanning land, sea and air. Kawasaki established the Kawasaki Group’s new vision statement, “Group Vision 2030: Trustworthy Solutions for the Future,” and is focusing on three fields, “A Safe and Secure Remotely-Connected Society,” “Near-Future Mobility,” and “Energy and Environmental Solutions” in order to provide solutions for social issues. For “Energy and Environmental Solutions” in particular, by securing the technology necessary for the entire supply chain (for production, transportation, storage and utilization) ahead of the rest of the world, Kawasaki aims to bring about a society that utilizes hydrogen, the ultimate clean energy that emits no carbon dioxide when used. To learn more, visit https://global.kawasaki.com/en.

Forward-Looking Statements
McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties. These forward-looking statements include, among other things, statements about the expected benefits from the collaboration agreement discussed in this press release.  Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit or capital markets; our inability to successfully execute on contracts in backlog; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties; changes in industry norms; actions by lenders, other creditors, customers and other business counterparties of McDermott and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. This communication reflects the views of McDermott’s management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.

For media inquiries, please use the contact information below:

Reba Reid
Global Media Relations
+1 281 588 5636
RReid@McDermott.com

Kristi Krupala-Grove
CB&I Media Relations
+1 346 313 9636
KKrupala2@mcdermott.com

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SOURCE McDermott International, Ltd

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Halal Route Application – Eat, Travel around Thailand, Safe and Sound Halal Style

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2 hours ago

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September 20, 2024

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BANGKOK, Thailand, Sept. 20, 2024 /PRNewswire/ — The Halal Science Center, Chulalongkorn University has developed Halal Route, an application that lists restaurants, lodging, mosques, prayer directions, and tourist attractions in Thailand under Islamic tourism principles. It hopes to help Muslim tourists travel in Thailand with peace of mind, and supports tourism industry operators to grow and welcome a growing number of Muslim tourists.

The Tourism Authority of Thailand (TAT) predicts that in 2024 there will be around 168 million Islamic tourists worldwide.  According to the Mastercard-Crescent Rating Global Muslim Travel Index (GMTI 2024), Thailand is the 32nd most popular destination for Muslim tourists.  However, the major problem Muslim tourists encounter in Thailand is finding Halal-accredited restaurants, hotels, accommodations, or tourist attractions with service areas (such as prayer rooms) that are compliant with the Islamic way.

“Halal Route” is a travel aggregator app that collects searchable information on Halal restaurants, mosques, prayer locations, times, and directions for prayers (the qibla), tourist attractions, Muslim villages or communities, hotels, accommodations, etc.  This app is linked to Google Maps for navigation with precision. It also supports 3 languages, Thai, English, and Arabic, so that Muslim tourists can live and travel more comfortably and with peace of mind,” said Mr.Erfun Weahama, Science Service Officer, Halal Route App development team.

Dr. Anat Denyingyot, Assistant Director of the Halal Science Center, emphasized that the Halal Route application has the most reliable and comprehensive information on halal tourism in Thailand today. “All restaurants and locations have had on-site visits and are audited according to standards approved by a trusted authority or organization, such as certifications from religious organizations or halal food-related entities, as well as management systems to guarantee and be responsible for halal conditions (the HAL-Q system),” Dr. Anat assured.

Currently, the application has more than 1,100 restaurants in its database, and new locations and services are being updated, covering more than 40 provinces from north to south of Thailand that are popular among tourists.

“Halal Route is not only for navigation, but a platform that connects Muslim communities from around the world who have the opportunity to visit Thailand,” Associate Professor Dr.Winai Dahlan, Director of the Halal Science Center concluded.

The Halal Route application is free to download on both iOS and Android systems.

Read the full article at https://www.chula.ac.th/en/highlight/185916/  

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SOURCE Chulalongkorn University

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