BSM Technologies continues double digit growth in earnings in Q3 2012

Toronto ON – BSM Technologies Inc.(“BSM” or the “Company”)  (TSX-V: GPS), a leading provider of remote monitoring, fleet management, fleet diagnostics and automated vehicle security systems today announced its financial and operating results for the three and nine month periods ended June 30, 2012.

 

Q3fiscal 2012 Highlights(all amounts in thousands of Canadian dollars, except for per share or unit data):

  • Recurring revenues from our core product line, Sentinel, of $1,406 for the quarter represents a 12% increase over the prior year.
  • Net income: $477 represents a 100% improvement over prior year.
  • EBITDA:  $540 represents a 77% increase over prior year.
  • Improved gross margin to 68% from 59% in prior year.
  • Recurring revenue gross profit exceeds our expenses net of amortization, commission and bonus expense by $289.
  • Cash from Operations of $326 are a $33 or 11% improvement over the prior year.
  • Investment of $149 in share buyback of 2,984,000 of the Company’s common shares.
  • Significant orders:
  • Subsequent to the quarter we were awarded a contract from one of Canada's leading national communications solutions providers, which will generate revenue of $820 over a three-year period.

    • Subsequent to the quarter, we were awarded a contract to provide the Sentinel FM asset tracking solution to a major U.S.-based railroad. This contract has a potential of approximately 10,000 units.  The initial contract is for five years with an option to renew for a further five-year period. This is the third North American railroad customer that we provide services to and will position BSM well in the rail vertical.
    • We were awarded a contract to provide our Sentinel FM asset tracking solution to a major U.S.-based oil and gas service fleet.  An initial order for this customer was for 300 units of a 4,000 unit fleet.

 

“We are very pleased with our continued growth in earnings which reflects our success in building a sustainable infrastructure that will support growth in our core product line and improve our earnings,” said Aly Rahemtulla, President and CEO. “Growing sales is a priority for us and post-quarter we announced significant contract wins which will contribute to future earnings and sales growth.”

 

 

Financial Highlights

 

All currency in thousands except per share data.

Three months ended June 30

Nine months ended June 30

2012

2011

2012

2011

Recurring revenue

$   2,358

$   2,439

$   7,117

$   6,955

Hardware and software revenue

1,011

1,476

3,339

4,130

Total revenue

3,369

3,915

10,456

11,085

Gross profit

2,287

2,318

6,799

6,286

Gross margin %

68%

59%

65%

57%

Net income

477

239

906

259

Basic and diluted income per share

$ 0.002

$ 0.001

$ 0.003

$ 0.001

EBITDA

540

305

1,085

539

Adjusted EBITDA

540

305

1,329

414

         

Cash and cash equivalents

   

$      2,781

$     761

Working capital

   

2,380

1,743

 

 

The Company’ financial statements for the three and ninemonths ended June 30, 2012, together with management's discussion and analysis, have been filed at www.sedar.com.

 

About BSM Technologies (bsmwireless.com)

BSM Technologies, through its subsidiary BSM Wireless Inc., is a leading provider of remote monitoring, fleet tracking, fleet maintenance, and business intelligent engine providing real time, web‐based 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

 

For more information please contact:

Aly Rahemtulla

President & CEO

BSM Technologies Inc.

1–416‐675–1201

arahemtulla@bsmwireless.com

 

Craig MacPhail

TMX | Equicom

1-416-815-0700, ext. 290

cmacphail@equicomgroup.com