BSM Technologies Inc. Reports Fiscal 2016 Second Quarter Financial Results

TORONTO, May 11, 2016  – BSM Technologies Inc. (“BSM” or the “Company”) (TSX: 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 six months ended March 31, 2016 (the “Quarter” and “Fiscal Year-to-Date”, respectively). The operating and financial results of BSM for the Quarter and the Fiscal Year-to-Date periods 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 comparable periods in fiscal 2015 do not include the operating and financial results of Webtech. All amounts are in Canadian.

Fiscal 2016 Second Quarter Highlights

  • Recurring revenue(i) of $9.9 million, compared to $5.1 million in the second quarter of fiscal 2015 (“Q2 FY2015”).
  • Hardware and service revenue of $5.3 million, compared to $2.5 million in Q2 FY2015.
  • Total revenue of $15.2 million, compared to $7.6 million in Q2 FY2015.
  • Adjusted EBITDA(i) of $2.3 million, compared to $0.7 million in Q2 FY2015.
  • Subscriber(i)  base at March 31, 2016 of 150,100 total subscribers, compared to 78,500 at March 31, 2015.
  • Since the commencement of the Company’s normal course issuer bid on December 23, 2015 to date, the Company has repurchased 7,523,500 of its common shares at an average price of $0.98 per common share for total consideration of approximately $7.4 million.

Management Commentary:

“Our ongoing integration activities led to over $700,000 in merger-related cost reductions during the quarter. We anticipate further cost synergies will increase this total to approximately $900,000 in the third quarter of fiscal 2016” said Aly Rahemtulla, BSM’s President and CEO. “To date, we have achieved approximately $4.0 million in merger-related cost reductions on an annualized basis, meeting the low end of our goal of $4.0 to $5.0 million. Based on our progress to date, we believe that further synergies can be achieved by the second half of fiscal 2017. The result of the ongoing integration activities have led to improved operating margins for our business.”

Mr. Rahemtulla continued: “For the second half of fiscal 2016, we will continue integrating our acquired businesses and laying a solid foundation for long-term growth. Although our winter maintenance business is entering its seasonally slower period, we believe that continued investments in our leading enterprise fleet solutions and our reorganized sales and marketing teams position us well to capitalize on the opportunities in front of us.”

Financial Highlights for Fiscal 2016 Second Quarter and Fiscal Year-to-Date period:

($ thousands except gross margin % and per share data)Three months endedSix months ended
 March 31March 31
Total revenue$15,239$7,645$30,940$15,501
Recurring revenue(i)9,9845,12819,86010,152
Hardware and service revenue5,2552,51711,0805,349
Gross profit(ii)8,5084,02017,1797,483
Gross margin %(ii)56%53%56%48%
Net income (loss)(858)843(1,365)57
Basic income (loss) per share(0.010)0.019(0.016)0.001
Diluted income (loss) per share(0.010)0.019(0.016)0.001
Adjusted EBITDA(i)2,3257104,4371,321
($ thousands)Balance as at
 March 31, 2016September 30, 2015
Cash and cash equivalents$22,450$23,980
Restricted cash and cash equivalents2,8008,800

(i) Recurring revenue, subscriber, 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. Refer to the management’s discussion and analysis for the three and six months ended March 31, 2016, for further details with respect to the Company’s non-GAAP financial performance measures. See “Non-GAAP Disclosures” below.

(ii) Following the completion of BSM’s “merger of equals” transaction with Webtech, the Company re-evaluated the presentation of its financial information. Through this process, the Company has revised the presentation of certain aspects of financial information disclosed. Refer to the Company’s management’s discussion and analysis for the three and six months ended March 31, 2016, for further details with respect to the change in financial statement presentation.

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:

DATE:Wednesday, May 11, 2016
TIME:8:00 a.m. ET
DIAL-IN NUMBER:647-427-7450 or 1-888-231-8191
TAPED REPLAY:416-849-0833 or 1-855-859-2056


Reference number 95451915

Available until Wednesday, May 18, 2016 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 and 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, the ability to capitalize on future opportunities and statements regarding synergies and financial impact of integrating Webtech and BSM. 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 capitalize on future opportunities, 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 Webtech transaction. 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 information form 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
(416) 586-1951