BSM Technologies Inc. Announces Fourth Quarter and Fiscal Year‐End 2015 Results

TORONTO, ON December 16, 2015 ‐ BSM Technologies Inc. ("BSM" or the "Company") (TSX: GPS), a leading provider of remote monitoring, fleet management, and fleet diagnostics systems, today announced its financial and operating results for the three and 12 months ended September 30, 2015 (the “Quarter”). All amounts are in Canadian dollars unless otherwise stated.

Fiscal 2015 Financial Highlights 

  • Recurring revenue(i) of $20.6 million, up 18% compared to $17.4 million in fiscal 2014 (“F2014”).
  • Hardware and other revenue of $10.1 million, a decrease of 19% compared to $12.4 million in F2014.
  • Total revenue of $30.7 million, up 3% compared to $29.9 million in F2014.
  • Adjusted EBITDA(i) of $3.3 million, a decrease of 20% compared to $4.1 million in F2014.

Fourth Quarter Fiscal 2015 Financial Highlights 

  • Recurring revenue(i) of $5.3 million, up 8% compared to $4.9 million in the fourth quarter of fiscal 2014 (“Q4 F2014”).
  • Hardware and other revenue of $2.2 million, a decrease of 46% compared to $4.1 million in Q4 F2014.
  • Total revenue of $7.5 million, a decrease of 17% compared to $9.0 million in Q4 F2014.
  • Adjusted EBITDA(i) of $0.8 million, a decrease of 19% compared to $0.9 million in Q4 F2014.
  • The Company announced the successful completion of the previously announced “merger of equals” type of transaction pursuant to a plan of arrangement, whereby BSM has acquired all of the issued and outstanding common shares of Webtech Wireless Inc. (the “Arrangement”).
  • Subsequent to the Quarter, the Company graduated to the Toronto Stock Exchange (“TSX”) from the TSX Venture Exchange. The common shares of the Company are listed and posted for trading on the TSX under the symbol “GPS”. 

“Fiscal 2015 closed a transformational chapter in BSM’s story,” said Aly Rahemtulla, BSM’s President and Chief Executive Officer. “We marked an important milestone by merging with Webtech Wireless to create a global top 20 telematics provider. While we saw softer hardware sales for the standalone BSM business in the fourth quarter of fiscal 2015, on a pro‐forma basis, the fourth quarter’s revenue and Adjusted EBITDA, excluding foreign exchange gains, for the combined business were $15.6 million and $1.3 million, respectively.” 
Mr. Rahemtulla continued: “As a merged entity, we exited the year a stronger company, and much of our focus for fiscal 2016 will be on successfully integrating BSM and Webtech Wireless operations. We are tracking ahead of plan in terms of synergies. Since the close of the transaction, we have achieved $2.1 million in cost reductions on an annualized basis, $500,000 of which we expect to recognize in the first quarter of fiscal 2016. We believe we will achieve between $4.0 and $5.0 million in annualized synergies over the 18 months post closing of the transaction.”
Financial Highlights for the Fourth Quarter and Fiscal Year Ended 2015:
($ thousands except

gross margin % and per share data)

Three months ended September 30

12 months ended September 30






Total revenue





Recurring revenue(i)





Hardware and other revenue





Gross profit





Gross margin %





Net income (loss)





Basic income (loss) per share





Diluted income (loss) per share










Adjusted EBITDA(i)









($ thousands)



Balance as at







September 30, 2015

September 30, 2014

Cash and cash equivalents



Restricted cash and cash equivalents



Non‐cash working capital



(i) Recurring revenue, EBITDA and Adjusted EBITDA are non‐GAAP financial measures. Refer to the management’s discussion and analysis for the three and 12 months ended September 30, 2015, for further details with respect to the Company’s non‐GAAP financial performance measures. See NonGAAP Disclosures” below.
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 and on the Company’s website at
Conference call details:


December 17,  2015


8:30 a.m. EST


647‐427‐7450 or 1‐888‐231‐8191




416‐849‐0833 or 1‐855‐859‐2056
Reference number 90171247
Available until Thursday, December 24, 2015 at midnight


Webcast will be archived for 90 days

About BSM Technologies Inc.

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

Non‐GAAP Disclosures  

BSM believes that investors use certain non‐GAAP financial 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 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 future financial or operating performance of the Company and statements regarding synergies and financial impact of the Arrangement. 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, efficiently and successfully completing a network operating centre consolidation, efficiently and successfully completing a hardware and software consolidation, receiving increased volume discounts from suppliers and efficiently and successfully realizing operational efficiencies. 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 realize or receive increased volume discounts from suppliers and the failure to efficiently or successfully achieve the expected operational efficiencies. The Company has provided the anticipated financial, operational and cost synergies in this press release to assist shareholders in their understanding of the Arrangement. Readers are cautioned that this information may not be appropriate for any other purposes. 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 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.
Aly Rahemtulla
President & CEO
BSM Technologies Inc.
(416) 675‐1201

Conrad Seguin
NATIONAL Equicom (416) 586‐9916