First Quarter of Fiscal 2017 Highlights
- Recurring Revenue(i) of $11.6 million, an increase of 17% compared to $9.9 million in the first quarter of fiscal 2016 ("Q1 F2016").
- Hardware and service revenue of $6.8 million, an increase of 17% compared to $5.8 million in Q1 F2016.
- Total revenue of $18.4 million, an increase of 17% compared to $15.7 million in Q1 F2016.
- Adjusted EBITDA(i) of $2.8 million, an increase of 33% compared to $2.1 million in Q1 F2016.
- On October 3, 2016, BSM acquired substantially all of the assets of Mobi Corp. ("Mobi"), enhancing BSM's commercial fleet management solutions to include planning, scheduling, route optimization and fleet analytics for consideration of US$8.0 million and up to US$17.0 million in potential earn-out payments.
- Experienced Subscriber(ii) Gross Additions(ii) of 4,300 and Subscriber Churn(ii) of 3,100 in the Quarter. Additionally, BSM acquired 15,100 Subscribers(ii) as a result of the acquisition of the assets of Mobi, bringing the total number of Subscribers(ii) to 168,400 as of the end of the Quarter.
- On December 19, 2016, BSM received approval to commence a normal course issuer bid (the "Bid"). Under the terms of the Bid, BSM may acquire up to 7,027,655 common shares, representing approximately 10% of the total public float of common shares, as defined by the Toronto Stock Exchange. As at December 31, 2016, BSM had repurchased and cancelled nil common shares pursuant to the Bid.
Management Commentary:
"Strong revenue growth, in combination with robust gross margins and net Subscriber additions saw us deliver record results for BSM this quarter," said Aly Rahemtulla, BSM's President and CEO. "Our fiscal 2017 first quarter was highlighted by closing our acquisition of the Mobi assets and the fulfillment of previously announced large-scale hardware deployments. As we integrate the Mobi product offering with our technology, we believe that our enhanced end-to-end enterprise solution will better serve our customers, deepen our client relationships and enable additional commercial growth across our verticals."
Mr. Rahemtulla continued: "Growing our pipeline, delivering exceptional customer service and executing on organic growth opportunities will be our focus this fiscal year. Further, and as announced previously, we plan to continue to invest in the business with the goal of achieving best-in-class sales and marketing, customer experience and technology. Overall, we are excited about our first quarter results and the fiscal year ahead and we look forward to continuing to build a bigger and better BSM."
Second Generation (2G)/CDMA Wireless Network Shutdown
Certain wireless carrier partners of BSM have announced that they will shutdown their 2G/CDMA wireless networks in an effort to transition users towards next generation cellular network technology. As a part of these network shutdowns, they have announced that they plan on taking their 2G/CDMA towers offline. This 2G/CDMA network shutdown will affect some BSM Subscribers that continue to rely on this technology to operate their fleet management devices. Although many of its customers have already transitioned to newer network platforms, BSM believes that approximately 10,000 of its Subscribers will be impacted in the first quarter of calendar 2017.
Mr. Rahemtulla added: "We are mindful of the impact that this event will have on our customers. We are diligently working to convince them to upgrade their fleet management devices and benefit from enhanced technology and greater functionality, however, we expect a significant portion of these customers to unsubscribe."
Financial Highlights for the First Quarter of Fiscal 2017:
| ($ thousands except gross margin % and per
share data) | | Three months ended
December 31 |
| | | 2016 | 2015 |
| Total revenue | | $ 18,363 | $ 15,701 |
| Recurring revenue(i) | | 11,561 | 9,875 |
| Hardware and service revenue | | 6,802 | 5,826 |
| Gross profit | | 10,912 | 8,672 |
| Gross margin % | | 59% | 55% |
| Net income (loss) | | (465) | (505) |
| Basic income (loss) per share | | (0.006) | (0.006) |
| Diluted income (loss) per share | | (0.006) | (0.006) |
| EBITDA(i) | | 2,344 | 1,698 |
| Adjusted EBITDA(i) |
Read more at https://www.stockhouse.com/news/press-releases/2017/02/09/bsm-technologies-inc-reports-fiscal-2017-first-quarter-results#jrYVhb7bF2Db5Xd1.99