TORONTO, Dec. 13, 2017 /CNW/ - BSM Technologies Inc.
("BSM" or the "Company") (TSX: GPS), a leading provider of
real-time GPS fleet and asset management solutions, today announced
its financial and operating results for the three and twelve months
ended September 30, 2017 (the "Fourth
Quarter" and "Fiscal 2017", respectively). The operating and
financial results of BSM for the Fourth Quarter and Fiscal 2017 are
prepared on a consolidated basis and include the operating results
of BSM Analytics Inc. d/b/a Mobi ("Mobi"), which assets were
acquired on October 3, 2016. The
comparable periods in fiscal 2016 do not include the operating and
financial results of Mobi and the acquisition of Mobi has led to
significant changes in our operating results. All amounts are
presented in Canadian dollars unless otherwise stated.
Fiscal 2017 Highlights:
- Recurring Revenue(i) of $45.7
million, an increase of 19% compared to $38.3 million in fiscal 2016 ("F2016").
- Hardware Revenue(i) and Professional Services
Revenue(i) of $21.0
million, an increase of 2% compared to $20.7 million in F2016.
- Total revenue of $66.7 million,
an increase of 13% compared to $59.0
million in F2016.
- Adjusted EBITDA(i) of $8.3
million, a decrease of 1% as compared to $8.4 million in F2016.
- Acquired the assets of Mobi Corp., enhancing commercial fleet
management solutions to include planning, scheduling, route
optimization and fleet analytics.
Fourth Quarter Highlights:
- Recurring Revenue(i) of $11.0
million, an increase of 17% compared to $9.4 million in the fourth quarter of fiscal 2016
("Q4 F2016").
- Hardware Revenue(i) and Professional Services
Revenue(i) of $4.7
million, a decrease of 16% compared to $5.6 million in Q4 F2016.
- Total revenue of $15.7 million,
an increase of 5% compared to $15.0
million in Q4 F2016.
- Adjusted EBITDA(i) of $ 1.2
million, a decrease of 40% compared to $2.0 million in Q4 F2016.
- Subscriber Gross Additions(ii) of 6,300 and
Subscriber Churn(ii) of 5,600 bringing the total number
of Subscribers(ii) to 161,700 at the end of the Fourth
Quarter.
Management Commentary:
"In fiscal 2017, we continued to invest in our business to
enhance our sales and marketing, customer experience and
technology. We also made the key acquisition of the assets of Mobi
Corp., which expanded our service offering, provided cross-selling
opportunities, and strengthened our management team," said
Aly Rahemtulla, BSM's President and
CEO. "In fiscal 2018, we intend to capitalize on the advances we've
made in our software platform consolidation, in particular, as we
leverage our investment in both the technology and human resources
required to take full advantage of our analytics
capabilities. We continue to focus on our customers and
ensure they are provided with an exceptional customer experience,
which drives organic growth and will assist us to achieve positive
trends in revenue alongside robust margins. Our focus on vertical
market opportunities will continue as we expand our product
solutions to include more in-depth data visualization for both
existing and new customers, which will provide a more robust
end-to-end asset utilization experience for our customers."
Financial
Highlights for the Fourth Quarter and Fiscal 2017
|
($ thousands
except gross margin % and per share data)
|
|
|
|
|
Three months ended
September 30
|
Twelve months
ended September 30
|
|
2017
|
2016
|
2017
|
2016
|
Total
revenue
|
15,690
|
14,965
|
66,717
|
58,997
|
Recurring
Revenue(i)
|
10,976
|
9,346
|
45,660
|
38,264
|
Hardware
Revenue(i) and
Professional Services
Revenue(i)
|
4,714
|
5,619
|
21,057
|
20,733
|
Gross
profit
|
9,150
|
8,587
|
39,339
|
32,997
|
Gross margin
%
|
58%
|
57%
|
59%
|
56%
|
Net income
|
(1,218)
|
9,135
|
(4,202)
|
7,609
|
EPS -
basic
|
(0.014)
|
0.112
|
(0.052)
|
0.091
|
EPS -
diluted
|
(0.014)
|
0.112
|
(0.052)
|
0.090
|
EBITDA(i)
|
343
|
3,485
|
5,292
|
8,282
|
Adjusted
EBITDA(i)
|
1,189
|
2,033
|
8,324
|
8,353
|
|
|
(i)
|
Recurring Revenue,
Hardware Revenue, Professional Services Revenue, EBITDA and
Adjusted EBITDA are non-GAAP financial measures and do not have
standardized meanings; therefore, they are unlikely to be
comparable to similar measures presented by other companies. See
"Non-GAAP Disclosures" below for more details.
|
|
|
(ii)
|
Subscriber,
Subscriber Gross Additions and Subscriber Churn are key performance
indicators of the Company and are therefore unlikely to be
comparable to similar measures presented by other companies. Refer
to the "Non-GAAP Financial Measures and KPIs" section in the
Company's management discussion and analysis for the three months
and twelve months ended September 30, 2017, available under the
Company's profile on SEDAR at www.sedar.com, for
further information on these definitions.
|
The Company's consolidated financial statements for the years
ended September 30, 2017 and 2016,
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
http://www.bsmtechnologies.com.
Conference Call Details:
DATE:
|
Thursday, December
14, 2017
|
TIME:
|
8:30 a.m.
ET
|
DIAL-IN
NUMBER:
|
647-427-7450 or
1-888-231-8191
|
CONFERENCE
ID:
|
3989906
|
TAPED
REPLAY:
|
416-849-0833 or
1-855-859-2056
Reference number
3989906
Available until
Thursday, December 21, 2017 at midnight
|
LIVE
WEBCAST:
|
http://bit.ly/2BOAHJu
Webcast will be
archived for 90 days
|
About BSM Technologies:
BSM Technologies Inc., through its subsidiaries, is a global top
20 commercial fleet telematics provider for automatic vehicle
location (AVL) solutions that improve efficiency, accountability
and reduce costs for fleet operators. BSM's end-to-end solutions
automate record keeping and regulatory compliance, reduce fuel burn
and idling, mitigate risk, and keep drivers safe. BSM provides
solutions for commercial and government units who manage and
operate diverse assets and large fleets that utilize its integrated
fleet tracking, fleet maintenance, and intelligent business engine
which provides real time, web‐based tracking of mobile and fixed
assets.
For more information, please visit
http://www.bsmtechnologies.com.
Non-GAAP Disclosures:
This news release includes the measures "Recurring Revenue",
"Hardware Revenue", "Professional Services Revenue", "EBITDA" and
"Adjusted EBITDA", which are "non-GAAP financial measures" under
applicable laws. Non-GAAP financial measures do not have any
standardized meaning under the Company's GAAP and therefore may not
be comparable to similar measures presented by other companies.
Readers are cautioned that that the disclosure of these items are
meant to add to, and not replace, the discussion of financial
results or cash flows from operations as determined by the
Company's GAAP under International Financial Reporting Standards.
BSM believes that investors use these non-GAAP financial measures
as indicators to assess telematics companies.
Non-GAAP
Measure:
|
Why We Use
It
|
How We Calculate
or Define It
|
Most Comparable
IFRS Financial Measure
|
Recurring
Revenue
Hardware Revenue
Professional Services Revenue
|
- We believe that separately
disclosing these revenue categories helps us to explain
period-over-period variation in our financial performance.
Furthermore, gross profit margin generated by each revenue
categories varies and we believe disclosure of these different
categories helps our investors to better understand the composition
of our total revenue and the impact of relative changes in revenue
categories on total gross profit margin.
- We believe that Recurring
Revenue provides useful information to our investors because it
shows the long-term nature of revenue earned from our customer
relationships.
|
- Recurring Revenue is defined
by us as: revenue from our monthly services fees, monthly
monitoring fees, and the cost of cellular and satellite data.
Recurring Revenue is recognized monthly as services are
delivered.
- Hardware Revenue is defined
by us as: revenue from the sale of our proprietary and third-party
telematics devices.
- Professional Services Revenue
is defined by us as: revenue from installation fees, project
management fees, custom development fees, cancellation fees and
other one-time fees for services provided to our
customers.
|
Revenue
|
EBITDA
Adjusted EBITDA
|
- We believe that EBITDA and
Adjusted EBITDA provide useful information to our 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.
- We believe Adjusted EBITDA
provides more meaningful continuity with respect to the comparison
of BSM's operating results over time.
- We believe that using these
metrics enhances an overall understanding of the Company's results
and we present them for that purpose.
|
- EBITDA is defined by us
as:
Net income/(loss) adjusted
by: cost of debt financing activities; depreciation of property and
equipment; amortization of intangible assets; and taxes with
respect to various jurisdictions.
- Adjusted EBITDA is defined by
us as:
EBITDA adjusted by: acquisition, integration and restructuring
related costs; share-based compensation expenses; write-off of
goodwill or other impairments to any financial and non-financial
assets; fair value adjustments on contingent consideration; costs
related to certain legal actions; and gains and losses resulting
from the translation of non-Canadian dollar working capital
balances.
|
Net
income/(loss)
|
Reconciliation of Recurring Revenue, Hardware Revenue and
Professional Services Revenue to Total Revenue
Each of these revenue categories are components of total revenue
as disclosed in the statement of operations in the Company's
financial statements and presented within the financial highlights
table of this press release.
|
|
|
($
thousands)
|
Three months
ended
September 30
|
Twelve months
ended
September 30
|
|
2017
|
2016
|
2017
|
2016
|
Hardware
Revenue
|
4,183
|
4,363
|
17,700
|
16,268
|
Recurring
Revenue
|
10,976
|
9,346
|
45,660
|
38,264
|
Professional Services
Revenue
|
531
|
1,256
|
3,357
|
4,465
|
Total
Revenue
|
15,690
|
14,965
|
66,717
|
58,997
|
Reconciliation of EBITDA and Adjusted EBIDTA to Net
Income/(Loss)
|
|
|
($
thousands)
|
Three months
ended
September 30
|
Twelve months
ended
September 30
|
|
2017
|
2016
|
2017
|
2016
|
Net income/(loss)
as reported
|
(1,218)
|
9,135
|
(4,202)
|
7,609
|
Add
(deduct):
|
|
|
|
|
|
Interest expense, net
of interest received
|
123
|
138
|
1,297
|
549
|
|
Tax
recovery
|
(491)
|
(7,301)
|
(109)
|
(6,199)
|
|
Amortization
|
1,929
|
1,513
|
8,306
|
6,323
|
EBITDA
|
343
|
3,485
|
5,292
|
8,282
|
Add
(deduct):
|
|
|
|
|
|
Share-based
compensation
|
453
|
256
|
1,911
|
708
|
|
Fair value
adjustments on contingent consideration
|
(285)
|
(1,704)
|
(285)
|
(1,854)
|
|
Foreign exchange
(gain)/loss
|
174
|
(223)
|
567
|
66
|
|
Acquisition,
integration and restructuring costs
|
504
|
219
|
839
|
1,151
|
Adjusted
EBITDA
|
1,189
|
2,033
|
8,324
|
8,353
|
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 BSM's software platform
consolidation plan, plans to invest in technology and human
resources, plans to increase customer experience to drive organic
growth and achieve positive trends in revenue and robust margins,
plans to expand BSM's product solutions, plans to enhance the
Company's enterprise solution in order to better serve the
Company's customers and achieve greater commercial growth, and the
ability of the Company to capitalize on future opportunities. These
forward-looking statements, and any assumptions upon which they are
based, are made in good faith and reflect our current judgment
regarding the direction of our business and include, but are not
limited to, successfully completing a hardware and software
platform consolidation and developing an enhanced enterprise
solution, and current and future customers reacting positively to
the enhance enterprise solution leading to increased commercial
growth. Management believes that these assumptions are reasonable;
however, some risks include, but are not limited to, customers
failing to complete purchases as indicated, the failure to
efficiently or successfully complete hardware and software
consolidation, and the failure to develop an enhanced enterprise
solution. 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 most recent annual information form available at
www.sedar.com. Forward-looking statements or information are 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.