BSM Technologies Inc. Reports 25% Recurring Revenue Growth in its First Quarter of Fiscal 2015

TORONTO, Feb. 5, 2015 /CNW/ - BSM Technologies Inc. ("BSM" or the "Company") (TSX-V: GPS), a leading provider of remote monitoring, fleet managementfleet diagnostics and automated vehicle security systems, today announced its financial and operating results for the three months ended 
December 31, 2014 (the "Quarter"). All amounts are in Canadian dollars unless otherwise stated.

First Quarter Fiscal 2015 Financial Highlights 

  • Recurring revenue (i) of $5.0 million as compared to $4.0 million in the first quarter of fiscal 2014 ("Q1 2014").

  • Hardware and other revenue of $2.8 million as compared to $3.9 million in Q1 2014.

  • Total revenue of $7.8 million as compared to $7.9 million in Q1 2014.

  • Adjusted EBITDA (i) of $0.8 million as compared to $1.5 million in Q1 2014.

First Quarter Fiscal 2015 Operational Highlights 

  • The Company began shipping its products to a second global North American construction, mining and engineering firm. 

  • The Company successfully grew its revenue per client in the United States by 118% as compared to Q1 2014. This is due to Sentinel sales growth in the US market and as a result of the US-based Lat-Lon and JMM acquisitions.

  • The Company's subscriber base had total net additions of 1,850, ending the quarter with 79,350 total subscribers.

  • Received approval from the TSX Venture Exchange (the "TSXV") for a normal course issuer bid (the "Bid"). Under the terms of the Bid, the Company may acquire approximately 10% of the total public float, as defined by the TSXV, of the Company's common shares.

"Once again, we saw solid growth in our recurring revenue and subscriber base during the quarter," said Aly Rahemtulla, BSM's President and CEO. "Lat-Lon and JMM continued to perform ahead of our expectations. We shipped products to another major global construction customer with the potential to become one of BSM's largest customers, and we further progressed our rail yard pilot installation. Looking to the remainder of fiscal 2015, we will continue to strategically invest to drive growth and profitability over the long-term."

Financial Highlights for the First Quarter of Fiscal 2015:

($ thousands except gross margin % and per share data)



Three months ended




December 31




2014



2013

Total revenue



$7,857



$7,936

Recurring revenue(i)



5,025



4,015

Hardware and other revenue



2,832



3,921

Gross profit



4,380



4,367

Gross margin %



56%



55%

Net income (loss)



(785)



643

Basic income (loss) per share



(0.017)



0.018

Diluted income (loss) per share



(0.017)



0.017

EBITDA(i)



343



1,550

Adjusted EBITDA(i)



788



1,550















($ thousands)



Balance as at











December 31, 2014



September 30, 2014

Cash and cash equivalents



$14,766



$23,621

Restricted cash and cash equivalents



8,800



nil

Working capital



3,374



5,718

(i) Recurring revenue, EBITDA and Adjusted EBITDA are non-GAAP financial measures. Refer to the management's discussion and analysis for the three months ended December 31, 2014, for further details with respect to the Company's non-GAAP financial performance measures.

The Company's condensed interim consolidated financial statements for the three months ended December 31, 2014, together with its corresponding management's discussion and analysis can be found under the Company's profile on SEDAR at www.sedar.com and on the Company's website at bsmwireless.com.

Conference call details:

DATE:



Friday, February 6, 2015





TIME:



8:30 a.m. EST





DIAL-IN NUMBER:



647-427-7450 or 1-888-231-8191





CONFERENCE ID:



75755603





TAPED REPLAY:



416-849-0833 or 1-855-859-2056

Reference number 75755603

Available until Friday, February 13, 2015 at midnight





LIVE WEBCAST:



http://www.newswire.ca/en/webcast/detail/1477495/1644799

Webcast will be archived for one year

About BSM Technologies Inc. (bsmwireless.com)

BSM Technologies Inc., through its subsidiaries, is a leading provider of remote monitoring, fleet trackingfleet maintenance and a business intelligence engine providing real time webbased 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

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward looking information. Such forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could", or "might" occur or be achieved and any other similar expressions. These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information. Some of these risks, uncertainties and other factors are described under the heading "Risk Factors" in the Company's annual information form available at www.sedar.com. Forward-looking information is based on estimates and opinions of management at the date the statements are made. Except as required by law, BSM does not undertake any obligation to update forward-looking information even if circumstances or management's estimates or opinions should change. Readers should not place undue reliance on forward-looking information.

SOURCE BSM Technologies Inc.

For further information: Aly Rahemtulla, President & CEO, BSM Technologies Inc., (416) 675-1201, arahemtulla@bsmwireless.com; Conrad Seguin, TMX Equicom, (416) 815-0700 ext. 251, cseguin@tmxequicom.com


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