BSM Technologies reports 97% EBITDA growth in Q2 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 six-month periods ended March 31, 2013. All results are in Canadian dollars unless otherwise stated.

 

Q2 2013 Financial Highlights ($ thousands except per share data)

 

  • Strong revenue: total revenue of $4,502 represents a 20% increase over the same period in fiscal 2012.
  • EBITDA: $789 for the quarter represents a 97% increase over the same period in fiscal 2012.
  • Hardware and other revenue of $2,065 represent a $704, or 52%, increase over the same period in fiscal 2012. 
  • During the quarter, BSM was awarded the following contracts, which were the main contributors to the significant increase in hardware and other revenue over the prior year period:

  • A major Canadian educational institution ordered 585 units of the Sentinel solution.
  • A major Canadian telecommunication company ordered 308 units of the Sentinel solution. The majority of the units ordered were dual mode.
  • A major Canadian government agency ordered 340 units of the Sentinel solution.
  • A major U.S.-based railroad company ordered an additional 467 units of the Sentinel solution. Pursuant to the order, the customer had equipped approximately 1,300 of their 10,000 vehicle fleet with the Sentinel solution.
  • A major Canadian railroad company ordered an additional 370 units of the Sentinel solution.
  • During the quarter, the following significant events occurred:
    • On February 28, 2013, the Company completed a fully marketed prospectus offering (the “Offering”) of 6,160,665 common shares for gross proceeds of $8,625 at a price of $1.40 per common share. Net proceeds from the Offering were approximately $7,675. The agents received compensation options to acquire up to an aggregate of 431,246 common shares exercisable at a price of $1.40 per common share until February 28, 2014.
    • On March 18, 2013, the Company entered into a binding letter of intent with a private, arms-length company in the telematics industry (“AcquireeCo”), in connection with the acquisition by BSM of AcquireeCo (the “Transaction”) from AcquireeCo’s shareholders, as described in our March 19, 2013 press release. The Transaction is expected to close in Q3 2013.
    •  

"Robust hardware sales produced another strong quarter of year-over-year revenue and EBITDA growth," said Aly Rahemtulla, President and CEO, BSM Technologies Inc. “We are focused on driving top-line improvements through a combination of organic and acquisitive initiatives. This was evidenced in the quarter by our numerous Sentinel solution orders, the letter of intent we signed with AcquireeCo, and our stronger balance sheet following our recent financing.”

 

Financial Highlights

All currency in thousands except per share data.

Three months ended

 

Six months ended

March 31

 

March 31

2013

2012

 

2013

2012

Recurring revenue

 $   2,437

 $   2,348

 

 $   4,737

 $   4,759

Hardware and other revenue

      2,065

      1,361

 

      4,623

      2,328

Total revenue

      4,502

      3,745

 

      9,360

      7,086

Gross profit

      2,610

      2,387

 

      5,473

      4,512

Gross margin %

   58%

   64%

 

   58%

   64%

Net income (i)

         213

        338

 

         1,035

        428

Basic income per share

0.007

0.012

 

0.035

0.015

Diluted income per share

0.007

0.012

 

0.035

0.015

EBITDA

         789

     401

 

          1,691

     546

           

Cash and cash equivalents

   

 

$     11,071

 $     2,611

Working capital

   

 

12,336

      1,799

(i) Net income for 2013 includes $500 of non-cash Share-based compensation expense.

 

The Company's financial statements for Q2 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

 

Craig Armitage

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

 

Fil Marinkovic

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