TORONTO, Dec. 14, 2016 /CNW/ - BSM Technologies Inc.
("BSM" or the "Company") (TSX: GPS), a leading provider of remote
monitoring, fleet management and fleet diagnostics, today announced
its financial and operating results for the three and 12 months
ended September 30, 2016 (the
"Quarter" and "Fiscal 2016", respectively). The operating and
financial results of BSM for the Quarter and Fiscal 2016 are
prepared on a consolidated basis and include the operating results
of Webtech Wireless Inc. ("Webtech"), which was acquired by BSM on
September 30, 2015 (the "Webtech
Acquisition"). The comparable periods in the prior year do not
include the operating and financial results of Webtech. The Webtech
Acquisition has led to significant changes in our operating
results. All amounts herein are presented in Canadian dollars
unless otherwise stated.
Fiscal 2016 Highlights
- Recurring Revenue(i) of $38.3
million, an increase of 86% compared to $20.6 million in fiscal 2015 ("F2015").
- Hardware revenue and service revenue of $20.7 million, an increase of 105% compared to
$10.1 million in F2015.
- Total revenue of $59.0 million,
an increase of 92% compared to $30.7
million in F2015.
- Adjusted EBITDA(i) of $8.4
million, an increase of 223% compared to $2.6 million in F2015.
- Subsequent to year-end, BSM acquired the assets of Mobi Corp.,
enhancing its commercial fleet management solutions to include
planning, scheduling, route optimization and fleet analytics for
consideration of US$8.0 million and
up to US$17.0 million in potential
earn-out payments.
Fourth Quarter of Fiscal 2016 Highlights
- Recurring Revenue(i) of $9.3
million, an increase of 75% compared to $5.3 million in the fourth quarter of fiscal 2015
("Q4 F2015").
- Hardware revenue and service revenue of $5.6 million, an increase of 155% compared to
$2.2 million in Q4 F2015.
- Total revenue of $15.0 million,
an increase of 100% compared to $7.5
million in Q4 F2015.
- Adjusted EBITDA(i) of $2.0
million, an increase of 300% compared to $0.5 million in Q4 F2015.
- Subscriber gross additions of 6,200 and Subscriber Churn of
2,900 ending the Quarter with 152,100 total subscribers.
- As of December 13, 2016 and since
its commencement on December 23,
2015, BSM has purchased 7,523,500 common shares of the
Company at an average price of $0.98
per common share under the Company's normal course issuer bid.
Management Commentary:
"Improving organic growth drove strong financial results in the
fourth quarter of our fiscal 2016," said Aly Rahemtulla, BSM's President and CEO.
"Notably, this quarter we saw improved gross subscriber additions
with lower subscriber churn. While the decrease in subscriber
churn this quarter is encouraging and suggests our increased
effort in improving customer satisfaction and retention is
beginning to yield results, we expect continued quarter to quarter
variability as we work to manage controllable subscriber churn in
2017 and beyond."
Mr. Rahemtulla continued: "Our primary objective in fiscal 2016
was to build a strong foundation for our business. By prioritizing
the integration of Webtech, we believe that we have implemented the
necessary changes to position us for growth in 2017. As momentum
continues to build across all of our verticals, our focus is
shifting to investing in internal resources to support this growth.
These additional investments, which are expected to total
$1.7 million in fiscal 2017, will
primarily center on three key areas of the business: sales and
marketing, customer experience and platform consolidation. We
believe that these investments will enhance our value proposition
to customers as we concentrate on driving organic growth and
reducing subscriber churn."
Financial Highlights for the Fourth Quarter and Fiscal
2016(ii):
($ thousands
except gross margin % and per share data)
|
Three months
ended
|
12 months
ended
|
|
|
|
|
|
|
September
30
|
September
30
|
|
2016
|
2015
|
2016
|
2015
|
Total
revenue
|
$
14,965
|
$ 7,486
|
$
58,997
|
$ 30,691
|
Recurring
revenue(i)
|
9,346
|
5,274
|
38,264
|
20,573
|
Hardware
revenue
|
4,363
|
1,890
|
16,268
|
8,484
|
Service
revenue
|
1,256
|
322
|
4,465
|
1,634
|
Gross
profit
|
8,587
|
3,871
|
32,997
|
15,267
|
Gross margin
%
|
57%
|
52%
|
56%
|
50%
|
Net income
(loss)
|
9,135
|
479
|
7,609
|
18
|
Basic income (loss)
per share
|
0.112
|
0.011
|
0.091
|
0.000
|
Diluted income (loss)
per share
|
0.112
|
0.011
|
0.090
|
0.000
|
EBITDA(i)
|
3,485
|
201
|
8,282
|
3,004
|
Adjusted
EBITDA(i)
|
$
2,033
|
$ 494
|
$
8,353
|
$ 2,612
|
|
|
|
|
|
($
thousands)
|
Balance as
at
|
Balance as
at
|
|
September 30,
2016
|
September
30, 2015
|
Cash and cash
equivalents
|
|
$24,900
|
|
$23,980
|
Restricted cash and
cash equivalents
|
|
-
|
|
8,800
|
Notes:
(i)
Recurring Revenue, EBITDA and Adjusted EBITDA are non-GAAP
financial measures and do not have any standardized meaning
prescribed by the Company's GAAP and are therefore unlikely to be
comparable to similar measures presented by other issuers.
See "Non-GAAP Disclosures" below for additional
information.
(ii) After the Webtech Acquisition, the Company re-evaluated the
presentation of its financial information. Through this process,
the Company revised the presentation of certain aspects of its
financial information disclosed. Refer to the Company's
management's discussion and analysis for the three and 12 months
ended September 30, 2016
available under the Company's profile on SEDAR at
www.sedar.com, for further details with respect to the
change in financial statement presentation.
The Company's annual consolidated financial statements for the
years ending September 30, 2016 and
2015, 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
www.bsmwireless.com.
Conference call details:
DATE:
|
Thursday, December
15, 2016
|
TIME:
|
8:30 a.m.
ET
|
DIAL-IN
NUMBER:
|
647-427-7450 or
1-888-231-8191
|
CONFERENCE
ID:
|
28875609
|
TAPED
REPLAY:
|
416-849-0833 or
1-855-859-2056
Reference number
28875609
Available until
Thursday, December 22, 2016 at midnight
|
LIVE
WEBCAST:
|
http://bit.ly/2gStzVc
Webcast will be
archived for 90 days
|
About BSM Technologies Inc. (bsmwireless.com)
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.bsmwireless.com
Non-GAAP Disclosures
This news release includes the measures "Recurring Revenue",
"EBITDA" and "Adjusted EBITDA", which are deemed "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 issuers. 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 GAAP. BSM believes that investors use these
non-GAAP financial measures as indicators to assess telematics
companies.
"Recurring Revenue" includes monthly application service
provider fees, monthly monitoring fees, and resale of cellular and
satellite data. Recurring Revenue 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. Refer to
the "Non-GAAP Financial Measures and KPIs" section in the
Company's management's discussion and analysis for the three and 12
months ended September 30, 2016,
available under the Company's profile on SEDAR at www.sedar.com for
further information on the calculation and reconciliation of these
non-GAAP financial 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 expected operating expenses
for fiscal 2017, quarter to quarter variability in subscriber
churn, internal investments leading to increased customer growth,
the future financial or operating performance of the Company and
the ability 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, expected investments in the sales and marketing of the
Company, in the Company's customer experience and the Company's
platform consolidation, these investments leading to increased
customer growth, efficiently and successfully completing a network
operating centre consolidation, efficiently and successfully
completing a hardware and software consolidation, and reducing
churn through internal investment. Management believes that these
assumptions are reasonable; however, some risks include, but are
not limited to, the failure to efficiently or successfully complete
network centre consolidation, the failure to efficiently or
successfully complete hardware and software consolidation, the
failure to capitalize on future opportunities, the failure to make
the internal investments and the failure to reduce churn through
the internal investments. 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 under the
Company's profile on SEDAR 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.