Business View - January 2016 11
• Gross margin in Q2 2016 was flat at 49% com-
pared to 49% in Q2 2015.
• Recurring revenue on an annualized basis grew to
$23.0M, an 18% improvement compared to the end
of Q2 2015, representing 37% of the last 12 months
trailing revenue.
• EBITDA of $1.2M for Q2 2016 remained the same
compared to Q2 2015.
• Profit from operations was $501K in Q2 2016,
compared to $532K in Q2 2015.
• Total contract bookings in the second quarter to-
taled $13.4M, compared to $9.3M in the prior year
period, a 44% increase.
• Backlog grew to $47.6M at the end of Q2 2016
from $34.7M at the end of Q2 2015, a 37% increase.
• Cash and cash equivalents totaled $9.1M at the
end of Q2 2016 compared to $10.8M at the end of
Q4 2015.
“This quarter’s results begin to demonstrate the
strong operating leverage we’ve built into our busi-
ness model, as our costs remained flat sequentially
while total revenue has grown to record levels”, said
Peter Brereton, President and CEO of TECSYS Inc.
“With $13.4 million in contracts booked in the quar-
ter, we’re pleased to see the benefits of our deci-
sion to increase our investment in sales and to stra-
tegically split the teams late last year.
“Contract bookings growth was fueled by major
wins in both our healthcare vertical and complex dis-
tribution, where we closed a large multi-warehouse
deal with great potential for future site expansion
as well as a large well-known hospital network in
the U.S. Our growing pipeline combined with strong
bookings and robust order backlog gives us great
visibility into the second half of fiscal 2016 and con-
fidence in our ability to continue to deliver solid re-
sults.”
TECSYS also announced that the Company’s Board
of Directors has declared a quarterly dividend of
$0.025 per share, to be paid on January 12, 2016 to
shareholders of record at the close of business on
December 22, 2015.
TECSYS provides transformative supply chain solu-
tions that equip our customers to succeed in a rap-
idly-changing omni-channel world. TECSYS solutions
are built on a true enterprise supply chain platform,
and include warehouse management, distribution
and transportation management, as well as com-
plete financial management and analytics.
Customers running on TECSYS’ Supply Chain Plat-
form 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 part-
ners 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 solu-
tions 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.
