2011 Annual Meeting of Shareholders

Transcription

1 2011 Annual Meeting of Shareholders Dave Brereton Executive Chairman of the Board Empowering Your Leadership

2 TECSYS Inc. Board of Directors Dave Brereton Peter Brereton Frank J. Bergandi André Duquenne Vernon Lobo Steve Sasser David Wayland Executive Chairman of the Board TECSYS Inc. President and CEO TECSYS Inc. Business Consultant President, T2ic Inc. Managing Director, Mosaic Venture Partners Co-Founder and CEO, Merlin Technologies Corporate Director, MRRM Inc. Berty Ho-Wo-Cheong Vice President, Finance and Administration, CFO and Secretary TECSYS Inc. 2

3 Agenda Procedural Opening of the Meeting Nomination of Scrutineers Notice of Meeting Report of Scrutineers Resolution for an Exemption From the Reading of the Minutes Receiving Financial Statements and the Auditors Report Election of Directors Appointment of Auditors Termination of Shareholders Meeting CEO s Remarks on FY 2011 CFO s Remarks on FY 2011 Financials New Product Presentation Announcement of Q1, 2012 Results Question and Answer Period Luncheon 3

4 Forward Looking Statements The statements in this presentation relating to matters that are not historical fact are forward looking statements that are based on management's beliefs and assumptions. Such statements are not guarantees of future performance, and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that TECSYS Inc. serves, the actions of competitors, major new technological trends and other factors beyond the control of TECSYS Inc., which could cause actual results to differ materially from such statements. All names, trademarks, products and services mentioned are registered or unregistered trademarks of their respective owners. 4

5 NOMINATION OF SCRUTINEERS FROM COMPUTERSHARE INVESTOR SERVICES 5

6 NOTICE OF MEETING 6

7 REPORT OF SCRUTINEERS 7

8 RESOLUTION FOR AN EXEMPTION FROM THE READING OF THE MINUTES OF THE LAST SHAREHOLDERS MEETING 8

9 RECEIVING OF FINANCIAL STATEMENTS AND AUDITOR S REPORT 9

10 ELECTION OF DIRECTORS 10

11 APPOINTMENT OF AUDITORS 11

12 TERMINATION OF SHAREHOLDERS' MEETING 12

13 CEO s Remarks on FY2011 Peter Brereton President & CEO Empowering Your Leadership

14 TECSYS Today North American company Market-leading provider of supply chain execution solutions Top tier WMS software company Dominant provider to Hospital supply networks in North America 20%+ market share North American s Caterpillar dealers 600 customers, over 1500 sites implemented Financially sound: Profitable Consistently generating cash Debt free 39% of 2011 revenue is recurring 14

15 TECSYS Target Markets Healthcare High-Volume Distribution 15

16 Top Rated TECSYS Customers in Healthcare 16

17 One of the Top WMS in the Market Recognized by Gartner TECSYS Positioned in the Visionaries Quadrant - Gartner s Magic Quadrant* for Warehouse Management Systems. TECSYS As a supply chain management company, with a significant warehouse management systems focus specializing in healthcare,. it has dominant market share, it is highly regarded and is involved in most of the conversations for CSCs forming today. ** * Gartner "Magic Quadrant for Warehouse Management Systems" by C. Dwight Klappich, July 29, ** Gartner To CSC or Not to CSC...that is the Question for Healthcare Providers by Eric O Daffer, Hussain Mooraj,18 February,

18 How We are Building Shareholder Value Focus on verticals Have the need and the financial resources Leverage our industry experience/expertise and technology: Key differentiators high barrier to entry Build recurring revenue stream: Currently represents 39% of revenue and growing Strengthen market position: Recognized by Gartner as top 5 WMS supplier, and dominant supplier for Hospital supply networks Manage growth: High ROI and profitability Consistently generate cash Continue to invest in our own shares through NCIB Dividends payout: Currently 3 cents paid semi-annually (3%) increased by 20% Q3,

19 Major Achievements 2011 Empowering Your Leadership

20 FY2011 Financial Snapshot KPI Normalized 2010 Revenue 35,654 36,772 36,772 EBITDA 3,124 2,184* 3,312 * Excludes $1,128K for non-recurring federal non-refundable tax credits. Earnings from operations 1, * 2,106 Net Earnings 1, ** 2,182 EPS/Basic ** Excludes $1,128k for non-recurring non-refundable federal tax credits as well as $595K for recognized deferred tax assets. Backlog 20,966 18,276 18,276 ROE % - Annualized Cash from operations 1,912 2,268 2,268 Cash & short-term invest. 7,254 8,106 8,106 Recurring revenue 13,961 13,077 13,077 20

21 $1.8 million Returned To Shareholders $ 1.2 million Purchased 620,353 shares $ 0.6 million Dividends paid $0.025 per share paid on October 6, 2010 $0.03 per share ( an increase of 20%) paid on March 31,

22 2011 New Customers 22

23 FY 2011 Solutions Implemented Completed the implementation of our software at 60 customer sites across all of our business units. 23

24 129 Customer Site Implementations Fiscal Years 2010 & 2011 Industrial + Packaged Gas 3PLs Healthcare Specialty Dist. IDNs Service Parts General High- Volume 24

25 Implementations Services Revenue by Vertical Fiscal Year 2010 & PLs 1% Industrial + Packaged gas 13% Healthcare (IDN & Other) 24% General High Volume 50% Service Parts 12% 25

26 Recurring Revenue As a % of Total Revenue 26

27 CFO s Remarks on FY2011 Financial Results Peter Brereton, President & CEO On behalf of Berty Ho-Wo-Cheong VP, Finance & Administration, & CFO Empowering Your Leadership

28 Agenda Revenue Sources of Revenue Geographic Sources of Revenue New Account Bookings by Vertical Market Recurring Revenue % Recurring Revenue Trend Consolidated Statement of Earnings Headcount by Function Cash Flow Balance Sheet 28

29 Revenue In Millions of CDN$ $35.7M $36.8M 29

30 Sources of Revenue 30

31 Geographical Sources of Revenue 31

32 New Account Bookings by Vertical Market 32

33 Recurring Revenue Trend $000 s CDN & US Mixed Currency 11,168 11,338 11,774 11,964 12,151 12,253 12,534 12,641 12,901 13,327 13,852 13,902 14,226 33

34 Consolidated Statement of Earnings In $000 s CDN Fiscal 2010 net earnings include the favorable impact of $1,128 for non-recurring non-refundable federal investment tax credits and $595 for recognized deferred tax assets. 34

35 Headcount by Function Total 235 Total

36 Cash Flow In $000 s CDN $ $ % Change Operating cash flow 1,912 2,268-16% Capex (945) (1,466) -36% Free cash flow % % of revenue 2.7% 2.2% Free cash flow per share $ 0.08 $ % Weighted average number of shares 12,055,715 12,362,504-2% 36

37 Balance Sheet As at April 30, 2011 and 2010 In $000 s CDN Assets Liabilities & Equity Cash & Short-term Investments Bank Advances Accounts Payable & Other Liabilities Accounts Receivable & WIP Deferred Revenues ITC s and Other Current Assets Restricted Cash & ABCP Property & Equipment, Intangible Assets, & Other Shareholders Equity Total Total 37

38 TECSYS in Healthcare Empowering Your Leadership

39 Healthcare Systems - Challenges Rising supply chain costs Currently 1/3 + of annual operating budget Expected to exceed all other health systems costs Clinicians access to supplies Manual processes No automation, visibility of inventory Significant waste 70% of nurses waste up to 2.5 hours every shift looking for supplies Overstocking, obsolescence, expired products Unclaimed expenses Supplies used cannot be captured as billable items Millions of unclaimed revenue every year Substantial cash tied-up in inventory Unofficial or unaccounted for inventories across the IDN Represent more than 50% of total inventories 39

40 TECSYS Solutions to Health Systems Medical Surgical Pharma Surgical Kits Central Sterile Par Carts Laundry Emergency Medical Assets Documents and Medical Records 40

41 TECSYS (SMS) Supply Management System Addressing the Point-of Use SCM Challenge 41

42 TECSYS SMS Provides clinicians and supply chain managers with: Clinical staff-friendly technology Visibility and immediate access to supplies anywhere in the IDN Reduced cost and waste no stockpiling or expired products Significantly reduced manual labor The ability to reclaim millions of dollars of uncharged supplies to become billable items Provides TECSYS with: New prospecting opportunities Increased revenue significantly higher number of users per hospital 42

43 TECSYS SMS Product Presentation Glenn Spriggs Healthcare Product Manager Empowering Your Leadership

44 Parkview Health Case Study Video 44

45 Q1, 2012 Results Peter Brereton President and CEO Empowering Your Leadership

46 Q1, 2012 Revenue Q1, 2012 Q1, 2011 % Total Revenue 9,003 8, Product 2,853 2, Services 5,955 5, Proprietary product revenue 33% higher in Q1, 2012 than Q1, 2011 U.S. to Canadian dollar exchange rate impact on revenue: Total revenue $300K lower Services revenue $200K lower 46

47 Q1, 2012 Profits Profits/Losses from Operations Q1, 2012 Q1, (315) Net Profit (loss) 146 (356) Earnings (loss) per common share 0.01 (0.03) 47

48 Q1, 2012 Backlog & Recurring Revenue Q1, 2012 Recurring Revenue, 38% of Total Revenue, Last 12 Months Backlog 20.5 Recurring Revenue, 38% 20 $ Millions Q1, 2011 Q1,

49 Q1, 2012 Major Achievements Signed nineteen agreements with new and existing clients: Healthcare A leading supplier in pharmaceutical distribution in Canada A Med-Surg products distributor in the U.S. Two hospital supply network in the U.S. A leading prescription drug and patient care supplier in the U.S. The Department of Health and Mental Hygiene of a major U.S. city A third party (3PL) distributors of healthcare products in the U.S General High-Volume Four industrial distributors in Canada A supplier of corporate supplies and services in Canada Seven general high-volume distributors 49

50 Q1, 2012 Major Achievements Implemented our software at 17 customer sites across all of our business units. 50

51 Q1, 2012 Major Achievements - Launched SMS Immediate positive impact in the market Substantial financial & logistics benefits to hospitals Significant new license & services revenue for TECSYS 51

52 Semi-Annual Dividend The Board of Directors has declared a semiannual dividend: Three cents/share. To be paid on October 6, 2011 to shareholders of record on September 22, 2011

53 Question & Answer Period Empowering Your Leadership