TORONTO, Aug. 5, 2015 /CNW/ - BSM Technologies Inc.
("BSM" or the "Company") (TSX-V: GPS), a leading provider of remote
monitoring, fleet management, and fleet diagnostics systems, today
announced its financial and operating results for the three months
ended June 30, 2015 (the "Quarter").
All amounts are in Canadian dollars unless otherwise stated.
Third Quarter of Fiscal 2015 Financial Highlights
- Recurring revenue(i) of $5.1
million, up 17% compared to $4.4
million in the third quarter of fiscal 2014 ("Q3
F2014").
- Hardware and other revenue of $2.6
million, up 26% compared to $2.0
million in Q3 F2014.
- Total revenue of $7.7 million, up
19% compared to $6.4 million in Q3
F2014.
- Adjusted EBITDA(i) of $0.8
million, up 56% compared to $0.5
million in Q3 F2014.
- Subsequent to the end of the Quarter, on July 30, 2015, BSM announced that it had entered
into a definitive arrangement agreement with Webtech Wireless Inc.
(TSX:WEW) ("Webtech Wireless") pursuant to which BSM and Webtech
Wireless will combine their respective businesses via a plan of
arrangement.
"Top line growth, investments in our business, and our continued
efforts to strategically manage operating costs have driven
year-over-year improvements in both gross profit margins and EBITDA
margins, as compared to the prior period," said Aly Rahemtulla, BSM's President and Chief
Executive Officer. "Macro headwinds in the oil and gas sector
continue to have a negative impact on our subscriber numbers;
however, we anticipate that continued growth in our rail business
will offset these declines in the coming quarters. We believe that
the recently announced arrangement with Webtech Wireless will
create a bigger, better and stronger BSM."
Financial Highlights for the Third Quarter of Fiscal
2015:
($ thousands
except gross margin % and per share
data)
|
Three months
ended
|
Nine months
ended
|
|
June
30
|
June
30
|
|
2015
|
2014
|
2015
|
2014
|
Total
revenue
|
$7,703
|
$6,450
|
23,204
|
20,853
|
Recurring
revenue(i)
|
5,146
|
4,417
|
15,299
|
12,535
|
Hardware and other
revenue
|
2,557
|
2,033
|
7,906
|
8,318
|
Gross
profit
|
4,882
|
3,891
|
14,261
|
12,025
|
Gross margin
%
|
63%
|
60%
|
61%
|
58%
|
Net income
(loss)
|
(522)
|
(390)
|
(465)
|
558
|
Basic income (loss)
per share
|
(0.012)
|
(0.009)
|
(0.010)
|
0.014
|
Diluted income (loss)
per share
|
(0.012)
|
(0.009)
|
(0.010)
|
0.014
|
EBITDA(i)
|
610
|
176
|
2,803
|
2,399
|
Adjusted
EBITDA(i)
|
807
|
515
|
2,526
|
3,163
|
|
|
|
|
|
($
thousands)
|
Balance as
at
|
|
|
|
|
|
|
June 30,
2015
|
September 30,
2014
|
Cash and cash
equivalents
|
$12,608
|
$23,621
|
Restricted cash and
cash equivalents
|
8,800
|
nil
|
Working
capital
|
6,389
|
5,718
|
(i) Recurring
revenue, EBITDA and Adjusted EBITDA are non-GAAP financial
measures. Refer to the management's discussion and analysis for the
three and nine months ended June 30, 2015, for further details with
respect to the Company's non-GAAP financial performance
measures.
|
The Company's condensed interim consolidated financial
statements for the Quarter, together with its corresponding
management's discussion and analysis, can be found under the
Company's profile on SEDAR at www.sedar.com and on the Company's
website at bsmwireless.com.
Conference call details:
DATE:
|
Thursday, August 6,
2015
|
TIME:
|
8:30 a.m.
EDT
|
DIAL-IN
NUMBER:
|
647-427-7450 or
1-888-231-8191
|
CONFERENCE
ID:
|
93210863
|
TAPED
REPLAY:
|
416-849-0833 or
1-855-859-2056
Reference number
93210863
Available until
Thursday, August 13, 2015 at midnight
|
LIVE
WEBCAST:
|
http://bit.ly/1MlboPG
Webcast will be
archived for 90 days
|
About BSM Technologies Inc. (bsmwireless.com)
BSM Technologies Inc., through its subsidiaries, is a leading
provider of remote monitoring, fleet tracking, fleet
maintenance and a business intelligence engine providing real
time webbased tracking of mobile and fixed assets. BSM
provides solutions for commercial, government, and law enforcement
organizations who manage and operate diverse assets and large
fleets, and who seek to enhance customer service, improve the
safety of their drivers and vehicles, and lower business
costs.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. No stock exchange, securities commission
or other regulatory authority has approved or disapproved the
information contained herein.
For more information, please
visit http://www.bsmwireless.com
Non-GAAP Disclosures
BSM believes that investors use certain non-GAAP measures as
indicators to assess telematics companies, specifically recurring
revenue, EBITDA and adjusted EBITDA. "Recurring revenue"
includes monthly application service provider fees, monthly
monitoring fees, and resale of cellular and satellite data.
Recurring Revenue is recognized monthly as services are delivered
and is derived from the service revenue category within the
segmented information note of the Company's financial statements.
BSM believes that Recurring revenue provides useful information to
BSM's investors because it shows the long term nature of service
revenue. "EBITDA" and "adjusted EBITDA" are measures
of BSM's operating profitability. BSM believes that EBITDA and
adjusted EBITDA provide useful information to its investors
because they exclude transactions not related to the core cash
operating business activities, allowing meaningful analysis of the
performance of BSM's core cash operations. EBITDA is an indicator
of the financial results generated by BSM's business activities
excluding: the impact of any financing activities; amortization of
property, equipment and intangible assets; and taxes with respect
to various jurisdictions. Adjusted EBITDA is a further refinement
of EBITDA to remove the effect of: acquisition, integration and
restructuring related costs; share-based compensation expense;
write-off of goodwill or other impairments to any financial and
non-financial assets; fair value adjustments on contingent
consideration; and costs related to certain legal actions. As such,
adjusted EBITDA provides more meaningful continuity with respect to
the comparison of BSM's operating results over time. EBITDA and
adjusted EBITDA are derived from the consolidated statements of
operations and comprehensive income and statement of cash flows.
BSM believes that using these metrics enhances an overall
understanding of the Company's results and BSM presents them for
that purpose. See BSM's management discussion & analysis on its
SEDAR profile for a reconciliation of these non-GAAP measures.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain forward-looking statements or
information under applicable Canadian, U.S. and other securities
laws. Such forward-looking information and statements are often,
but not always, identified by the use of words such as "seek",
"anticipate", "believe", "plan", "estimate", "expect" and "intend"
and statements that an event or result "may", "will", "should",
"could", or "might" occur or be achieved and any other similar
expressions. Such forward-looking information includes but is not
limited to, statements with respect to the proposed transaction
with Webtech Wireless, continued growth in BSM's rail business,
future subscriber performance of the Company and the future
performance of certain business verticals of the Company. These
forward-looking statements, and any assumptions upon which they are
based, are made in good faith and reflect BSM's current judgment
regarding the direction of BSM's business. Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that could cause actual results to differ
materially from those contained in the forward-looking information.
Some of these risks, uncertainties and other factors are described
under the heading "Risk Factors" in BSM's annual management
discussion and analysis available at www.sedar.com.
Forward-looking information is based on estimates and opinions of
management at the date the statements are made. Except as required
by applicable law, BSM does not undertake any obligation to update
forward-looking information. Readers should not place undue
reliance on forward-looking information.
SOURCE BSM Technologies Inc.