BSM Technologies reports 39% growth in revenue in Q3 2013

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 financial and operating results for the three- and nine-month periods ended June 30, 2013. All results are in Canadian dollars unless otherwise stated.

Q3 2013 Financial and Operating Highlights ($ thousands except per share data)

  • Significant revenue growth: total revenue of $4,684 represents a 39% increase over the same period in fiscal 2012.
  • Adjusted EBITDA(i): a record $964 for the quarter represents 21% of total revenue and a 79% increase over the same period in fiscal 2012.
  • Without the restructuring and acquisition-related costs and non-cash share-based compensation expense, net income would have been $771, or 62% higher over the same period in fiscal 2012.
  • Recurring revenue(i): $3,029 for the quarter represents a $671 or 28% increase over the same period in fiscal 2012.
  • Hardware and other revenue of $1,655 increased $644 or 64% over the same period in fiscal 2012.
  • On May 31, 2013, the Company acquired AutoVision Wireless Inc. (“AutoVision” or “AWI”), a private company in the telematics industry, as described in the Company’s June 3, 2013 press release. Consideration paid for AutoVision on closing included $7,389 in cash and 714,286 common shares in the Company issued at $1.40 per share. A further $8,000 of consideration, comprised of up to $5,000 in cash and up to 2,142,858 common shares issued at $1.40 per share, is subject to the attainment of $5,000 of recurring revenue(i) in year 1 and $5,500 in recurring revenue(i) in each of years 2 and 3.
  • On June 30, 2013, the Company secured a three-year, $10,000 credit facility with the Toronto-Dominion Bank. The facility includes a $7,000 term facility to finance the full up-front cash consideration for the Company's acquisition of AutoVision, and a $3,000 operating line-of-credit. The term facility and operating line-of-credit will initially carry interest at the prime rate plus 0.75%. The interest rate will vary based on the prime rate and a ratio of total debt to adjusted EBITDA(i).

 

"Continued organic growth, along with an initial contribution from our transformative acquisition of AutoVision Wireless, produced another quarter of strong financial results,” said Aly Rahemtulla, President and CEO, BSM Technologies Inc. “Our focus going forward will be on the integrating the Company and maintaining our sales momentum.”

 

Financial Highlights

All currency in thousands except per share data.

Three months ended

 

Nine months ended

June 30

 

June 30

2013

2012

 

2013

2012

Recurring revenue(i)

 $   3,029

 $   2,358

 

 $   7,766

 $   7,117

Hardware and other revenue

1,655

      1,011

 

6,278

3,339

Total revenue

      4,684

      3,369

 

14,044

10,456

Gross profit

3,055

2,287

 

8,528

6,799

Gross margin %

   65%

   68%

 

   61%

   65%

Net income (loss)(ii)

(1,353)

        477

 

(318)

        906

Basic income (loss) per share

(0.039)

0.017

 

(0.009)

0.031

Diluted income (loss) per share

(0.038)

0.017

 

(0.009)

0.031

EBITDA(i)

       (1,033)

     540

 

658

     1,058

Adjusted EBITDA(i)

964

540

 

2,655

1,329

           

Cash and cash equivalents

   

 

$     11,593

 $     2,781

Working capital

   

 

8,700

2,380

 

(i) Recurring revenue, EBITDA and Adjusted EBITDA are non-GAAP and non-IFRS financial measures.

(ii) Net income (loss) for 2013 includes $127 and $627 of non-cash share-based compensation expense for the quarter and year-to-date periods, respectively.

 

The Company's financial statements for Q3 2013, together with management's discussion and analysis, can be found 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.

(416) 675-1201

arahemtulla@bsmwireless.com

 

Fil Marinkovic

TMX Equicom
(416) 815-0700 ext. 289
fmarinkovic@tmxequicom.com

 

Craig Armitage

TMX Equicom
(416) 815-0700 ext. 278
carmitage@tmxequicom.com