BSM Technologies Inc. Reports 56% EBITDA Growth in its Third Quarter of Fiscal 2015

TORONTO, Aug. 5, 2015 /CNW/ - BSM Technologies Inc. ("BSM" or the "Company") (TSX-V: GPS), a leading provider of remote monitoring, fleet management, and fleet diagnostics systems, today announced its financial and operating results for the three months ended June 30, 2015 (the "Quarter"). All amounts are in Canadian dollars unless otherwise stated.

Third Quarter of Fiscal 2015 Financial Highlights

  • Recurring revenue(i) of $5.1 million, up 17% compared to $4.4 million in the third quarter of fiscal 2014 ("Q3 F2014").
  • Hardware and other revenue of $2.6 million, up 26% compared to $2.0 million in Q3 F2014.
  • Total revenue of $7.7 million, up 19% compared to $6.4 million in Q3 F2014.
  • Adjusted EBITDA(i) of $0.8 million, up 56% compared to $0.5 million in Q3 F2014.
  • Subsequent to the end of the Quarter, on July 30, 2015, BSM announced that it had entered into a definitive arrangement agreement with Webtech Wireless Inc. (TSX:WEW) ("Webtech Wireless") pursuant to which BSM and Webtech Wireless will combine their respective businesses via a plan of arrangement.


"Top line growth, investments in our business, and our continued efforts to strategically manage operating costs have driven year-over-year improvements in both gross profit margins and EBITDA margins, as compared to the prior period," said Aly Rahemtulla, BSM's President and Chief Executive Officer. "Macro headwinds in the oil and gas sector continue to have a negative impact on our subscriber numbers; however, we anticipate that continued growth in our rail business will offset these declines in the coming quarters. We believe that the recently announced arrangement with Webtech Wireless will create a bigger, better and stronger BSM."

Financial Highlights for the Third Quarter of Fiscal 2015:

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

Three months ended

Nine months ended

June 30

June 30





Total revenue





Recurring revenue(i)





Hardware and other revenue





Gross profit





Gross margin %





Net income (loss)





Basic income (loss) per share





Diluted income (loss) per share










Adjusted EBITDA(i)





($ thousands)

Balance as at

June 30, 2015

September 30, 2014

Cash and cash equivalents



Restricted cash and cash equivalents



Working capital




(i) Recurring revenue, EBITDA and Adjusted EBITDA are non-GAAP financial measures. Refer to the management's discussion and analysis for the three and nine months ended June 30, 2015, for further details with respect to the Company's non-GAAP financial performance measures.


The Company's condensed interim consolidated financial statements for the Quarter, together with its corresponding management's discussion and analysis, can be found under the Company's profile on SEDAR at and on the Company's website at

Conference call details:


Thursday, August 6, 2015


8:30 a.m. EDT


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




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

Reference number 93210863

Available until Thursday, August 13, 2015 at midnight


Webcast will be archived for 90 days


About BSM Technologies Inc. (

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

Non-GAAP Disclosures

BSM believes that investors use certain non-GAAP measures as indicators to assess telematics companies, specifically recurring revenue, EBITDA and adjusted EBITDA. "Recurring revenue" includes monthly application service provider fees, monthly monitoring fees, and resale of cellular and satellite data. Recurring Revenue is recognized monthly as services are delivered and is derived from the service revenue category within the segmented information note of the Company's financial statements. BSM believes that Recurring revenue provides useful information to BSM's investors because it shows the long term nature of service revenue. "EBITDA" and "adjusted EBITDA" are measures of BSM's operating profitability. BSM believes that EBITDA and adjusted EBITDA provide useful information to its investors because they exclude transactions not related to the core cash operating business activities, allowing meaningful analysis of the performance of BSM's core cash operations. EBITDA is an indicator of the financial results generated by BSM's business activities excluding: the impact of any financing activities; amortization of property, equipment and intangible assets; and taxes with respect to various jurisdictions. Adjusted EBITDA is a further refinement of EBITDA to remove the effect of: acquisition, integration and restructuring related costs; share-based compensation expense; write-off of goodwill or other impairments to any financial and non-financial assets; fair value adjustments on contingent consideration; and costs related to certain legal actions. As such, adjusted EBITDA provides more meaningful continuity with respect to the comparison of BSM's operating results over time. EBITDA and adjusted EBITDA are derived from the consolidated statements of operations and comprehensive income and statement of cash flows. BSM believes that using these metrics enhances an overall understanding of the Company's results and BSM presents them for that purpose. See BSM's management discussion & analysis on its SEDAR profile for a reconciliation of these non-GAAP measures.

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain forward-looking statements or information under applicable Canadian, U.S. and other securities laws. Such forward-looking information and statements are 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. Such forward-looking information includes but is not limited to, statements with respect to the proposed transaction with Webtech Wireless, continued growth in BSM's rail business, future subscriber performance of the Company and the future performance of certain business verticals of the Company. These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect BSM's current judgment regarding the direction of BSM's business. 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 BSM's annual management discussion and analysis available at Forward-looking information is based on estimates and opinions of management at the date the statements are made. Except as required by applicable law, BSM does not undertake any obligation to update forward-looking information. 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,; Conrad Seguin, NATIONAL Equicom, (416) 815-0700 ext. 251,

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