TORONTO, May 15, 2014 /CNW/ - BSM Technologies Inc. ("BSM" or the "Company") (TSX-V: GPS), a leading provider of remote monitoring, fleet management, fleet diagnostics and automated vehicle security systems, today announced its financial and operating results for the three and six months ended March 31, 2014. All amounts are in Canadian dollars unless otherwise stated.
Second Quarter 2014 Financial and Operating Highlights ($ thousands except per share data; comparisons are made between the second quarter of 2014 and the second quarter of 2013 results, unless otherwise noted)
- Continued revenue growth: Total revenue of $6,467 represents an increase of 44%.
- EBITDA(i) of $1,097 represents an increase of 36%.
- Recurring revenue(i) of $4,102 represents an increase of 68%.
- Hardware and other revenue of $2,365 represents an increase of 15%.
- Working capital increased by $22,266 to $31,437.
Subsequent to the completion of the second quarter of 2014, the following significant events occurred:
- On May 15, 2014, the Company announced that an indirect wholly-owned subsidiary of the Company acquired 100% of the membership interests of privately held JMM Management Group, LLC d/b/a JMM Global, an Illinois limited liability company ("JMM"). JMM's key offering is a software solution that assists clients in monitoring their storage tanks while managing all compliance requirements associated with these assets. The acquisition of JMM closed on April 30, 2014.
- On May 15, 2014, the Company also announced that its wholly-owned subsidiary, BSM Technologies U.S. Holdings, Inc., has entered into a definitive purchase agreement to acquire 100% of the membership interests of privately held Lat-Lon L.L.C., a Colorado limited liability company ("Lat-Lon"). Lat-Lon's key products include a locomotive monitoring unit (LMU) and a solar-powered GPS monitoring system for railcars and trailers. The acquisition of Lat-Lon is expected to close on May 30, 2014, subject to customary closing conditions.
"Our core, recurring, revenue based Sentinel offering produced another quarter of strong, consistent results" said Aly Rahemtulla, BSM's President and CEO. "The two U.S.-based acquisitions we have announced subsequent to the end of the second quarter of 2014 demonstrate our commitment to accelerating BSM's revenue growth through acquisitions. Lat-Lon will help us to significantly expand our product offering in the rail vertical, and the extensive expertise of JMM in the fixed asset monitoring business will help us strengthen our iTrax offering."
Financial Highlights for the Second Quarter of 2014:
| ($ thousands except gross margin % and
per share data)
|Three months ended||Six months ended|
|March 31||March 31|
|Total revenue||$ 6,467||$ 4,502||$ 14,403||$ 9,360|
|Hardware and other revenue||2,365||2,065||6,285||4,623|
|Gross margin %||58%||58%||56%||58%|
|Basic income per share||0.007||0.007||0.025||0.035|
|Diluted income per share||0.007||0.007||0.024||0.035|
|($ thousands)||Balance as at:|
|March 31, 2014||September 30, 2013|
|Cash and cash equivalents||$ 29,142||$ 10,251|
| (i) Recurring revenue, EBITDA and Adjusted EBITDA are non-GAAP financial measures. Refer to the management's
discussion and analysis for the three and six months ended March 31, 2014 for further details with respect to the
Company's non-GAAP financial performance measures.
The Company's financial statements for the three and six months ended March 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.
About BSM Technologies Inc. (bsmwireless.com)
BSM Technologies Inc., through its subsidiaries, is a leading provider of remote monitoring, fleet tracking, fleet maintenance and a business intelligence engine 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
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:
President & CEO
BSM Technologies Inc.
(416) 815-0700 ext. 289
(416) 815-0700 ext. 278