Home News BSM Technologies Inc. Reports 46% Recurring Revenue Growth in its Third Quarter

BSM Technologies Inc. Reports 46% Recurring Revenue Growth in its Third Quarter

 BSM Technologies Inc., a leading provider of remote monitoring, fleet managementfleet diagnostics and automated vehicle security systems, today announced its financial and operating results for the three and nine months ended June 30, 2014. All amounts are in Canadian dollars unless otherwise stated.

Third Quarter 2014 Financial and Operating Highlights ($ thousands except per share data; comparisons are made between the third quarter of 2014 and the third quarter of 2013 results, unless otherwise noted):

  • Continued revenue growth: Total revenue of $6,450 represents an increase of 38%.
     
  • Recurring revenue (i) of $4,417, an increase of 46%.
     
  • Hardware and other revenue of $2,033, an increase of 23%.
     
  • Adjusted EBITDA (i) of $514 compared to $992.
     
  • Received an initial order from one of North America's largest construction, mining and engineering firms, and began deployment of two other large orders. The Company realized partial revenue from these orders in Q3, and the balance of the revenue is expected to be realized in Q4.
     
  • Successfully closed the acquisition of Lat-Lon, L.L.C. and JMM Management Group, LLC and are moving forward with integration and cross selling initiatives.
     
  • On August 11, 2014, the Company announced that it acquired 100% of the shares of Praxis Transportation Solutions Inc. Praxis provides a suite of driver compliance solutions focused on the rail sector, and is expected to provide an excellent platform to expand BSM's current HOS (hours of service) product offering.

"We continue to make key investments in both our organic growth initiatives as well as in purchasing and integrating targeted assets," said Aly Rahemtulla, BSM's President and CEO. "These investments are being made with a view of accelerating future growth. We are in the process of launching our next generation hardware platform that features both Wi-Fi hotspot and camera technology on a cost optimized platform. The impact of our recent M&A activities, sales successes and organizational investments will be more fully recognized in our fourth quarter financial results."

Financial Highlights for the Third Quarter of 2014:

($ thousands except gross
margin % and 

Three months ended

Nine months ended

per share data)

June 30, 2014

June 30, 2013

 

2014

2013

2014

2013

Total revenue

$    6,450

$   4,684

$    20,853

$    14,044

Recurring revenue(i)

4,417

3,029

12,535

7,766

Hardware and other revenue

2,033

1,655

8,318

6,278

Gross profit

3,891

3,055

12,025

8,528

Gross margin %

60%

65%

58%

61%

Net income

(389)

(1,353)

558

(318)

Basic income per share

(0.009)

(0.039)

0.014

(0.010)

Diluted income per share

(0.009)

(0.038)

0.014

(0.010)

EBITDA(i)

234

(1,005)

2,882

725

Adjusted EBITDA(i)

515

992

3,163

2,722

         
       
     

Balance as at:

 

 

($ thousands)

     
     

June 30, 2014

  September 30, 2013

Cash and cash equivalents

   

$    24,897

$    10,251

Restricted cash

   

0

2,500

Working capital

   

25,226

9,171