Improvement of $3.7 million in net income and record Positive Earnings in Fiscal 2011 for BSM Technologies

TORONTO, Jan. 23, 2012 /CNW/ - BSM Technologies Inc. ("BSM" or the "Company") (TSX-V: GPS), a leading developer and provider of remote monitoring, fleet management, fleet diagnostics and automated vehicle security systems today announced financial and operating results for the three and twelve months ended September 30, 2011.

Financial Highlights ($ thousands)

  • First positive full year Net Income in the last 5 years:  $578 represents a $3,721 improvement over 2010;
  • Positive full year EBITDA:  $925 represents a 300% increase over 2010;
  • Maintained 61% gross margin;
  • Sixth consecutive quarter of positive EBITDA:  Q4 2011 is $385;
  • First positive full year Cash from Operations in the last 5 years:  $1,612 represents a $2,965 improvement over 2010;
  • Record level of working capital: $1,938 at September 30, 2011 represents a 60% improvement over 2010;
  • Transition year, focusing on our core solution, Sentinel; and,
  • Record level sales for Sentinel line:
    • 7,055 units sold for the full year represents a 71% increase over 2010; and,
    • $4,513 in recurring revenues for the full year represents a 45% increase over 2010.

Operational Highlights

  • Strengthened human resources:
    • Enhanced our executive team (Technology, Sales & Operations);
    • Expanded sales force in the USA; and,
    • Enhanced the R&D team.
  • Significant large volume contracts:
    • Awarded a three-year contract with a major US-based service fleet worth over $1.1 million over three years;
    • Won three-year contracts with the Ontario and Quebec snowmobile associations, worth approximately $1.2 million; and,
    • Expanded relationship with a long term customer by adding 800 vehicle installs in a new division, in addition to the over 1,500 vehicles already installed. This expansion is expected to continue into fiscal 2012 to about 2,700 vehicles and a contract size of $1.2 million.
  • Augmented product and service offerings:
    • Added an Hour-of-Service module to our Sentinel fleet management solution; and,
    • Signed an agreement with ARI, the largest privately-held vehicle fleet management services company in North America that combines our Sentinel products with ARI's web-based fleet management system.

"With the significant gains we made in sales, the key staff additions, service enhancements and our increased presence in the US, fiscal 2011 was a milestone year for BSM," said Aly Rahemtulla, President and CEO.  "This momentum is continuing and we look forward to continued growth in 2012."

Financial Highlights

               
($ thousands, except per share amounts) Three months ended
September 30
Twelve months ended
September 30
2011   2010 2011   2010 2009
Recurring service revenue $  2,321   $    2,159 $     9,276   $    8,183 $    5,065
Hardware and software revenue 1,045   1,123 5,175   5,324 4,063
Total revenue 3,366   3,282 14,451   13,507 9,128
Gross profit 2,098   1,915 8,871   8,223 4,740
Gross margin %    62%   58% 61%   61% 52%
Expenses 1,705   1,610 7,976   8,780 4,601
Net income (loss) before other expenses 393   306 895   (557) 139
Other Expenses            74          2,164            316          2,586        3,344
Net income (loss)          319         (1,859)            578         (3,143)       (3,205)
Basic and diluted income (loss) per share $  0.001   $  (0.008) $     0.002   $  (0.014) $  (0.037)
EBITDA          385              350            925            (463)           219
Cash from operations      1,473              207         1,612         (1,353)          (303)
               
               
($ thousands)   As at September 30
      2011   2010 2009
Cash and cash equivalents       $     1,958   $       917 $    2,497
Working capital               1,938          1,209        2,119

"Our growth in EBITDA demonstrates that we can maintain financial discipline while experiencing growth in sales and operations," added Jenny Stranges, Chief Financial Officer. "Also, our growing recurring revenue stream allows us some predictability into future earnings so we can control costs and maintain profitability."

The Company's financial statements for the fiscal year 2011, together with management's discussion and analysis, can be found at www.sedar.com.

About BSM Technologies
BSM Technologies, through its subsidiary BSM Wireless Inc., is a leading provider of remote monitoring, fleet tracking, fleet maintenance, and automated vehicle security systems 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 

 

 

SOURCE BSM Technologies Inc.

For further information:

Mr. Aly Rahemtulla
President & CEO
BSM Technologies Inc.
416- 675-1201
aly@bsmwireless.com

Craig MacPhail
TMX | Equicom
416-815-0700, ext. 290
cmacphail@equicomgroup.com


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