Teklogix reports record fourth quarter and fiscal 2000 operating results
MISSISSAUGA, ON, May 30 /CNW/ - Teklogix International Inc., a leading
global developer and marketer of wireless networks and systems for supply
chain management, today reported record results for the fourth quarter and
full year ended March 31, 2000.
Net income for the fourth quarter jumped 24% to $5.8 million compared
with the same quarter last year, and basic earnings per share increased to
$0.40 from $0.33 earned in fiscal 1999 (weighted average number of shares
outstanding: fourth quarter fiscal 2000 - 14.3 million; fourth quarter fiscal
1999 - 14 million).
Revenues were $54 million for the fourth quarter of fiscal year 2000, up
10% from $49.3 million for the same period a year ago. Fourth quarter revenues
were actually 20% higher than for the same quarter last year after taking into
account the appreciation in the value of the Canadian dollar against major
world currencies, which had the effect of reducing the company's foreign
currency-denominated revenues upon translation into Canadian dollars.
For the full year ended March 31, 2000, net income increased 29.5% to
$19.8 million, or $1.40 per share, compared to net income of $15.3 million, or
$1.10 per share in fiscal 1999. Net income yielded a return on revenues of
9.5%. a return on invested capital of 55%, and a return on shareholders equity
of 25%.
Revenues for the year ended March 31, 2000 increased 20% to $208.7
million, compared with $173.5 million reported in 1999. On an equivalent-
exchange rate basis, year-over-year revenues increased 26%.
Commenting on the company's results, Ian McElroy, President & Chief
Executive Officer, said "Our fourth quarter financial results cap another
outstanding year of solid revenue and earnings growth for Teklogix. This was
also a year in which we launched the largest number of new products in the
company's history, successfully entered the wide-area network market (WAN),
made an exciting new investment in speech recognition-based solutions with
SyVox Corporation, and continued our global expansion, opening subsidiaries in
India, South Africa and the Netherlands. These initiatives and others that
will be announced increase our confidence in the outlook for another strong
year of revenue and earnings growth as fiscal 2001 unfolds."
Cash flow from operations before additional investment in working capital
increased 30% to $26 million for fiscal 2000 compared with $20 million for
fiscal 1999. The company had cash and short-term deposits of $9.5 million at
March 31, 2000 and was debt-free. Shareholders' equity improved 36% to $90
million at March 31, 2000.
Teklogix is a global leader in wireless communications and enabling
software for supply chain and inventory management. The company designs,
manufactures, markets and supports large-scale systems and products that
wirelessly link the mobile workforce with corporate information systems. The
company's systems are typically used by large-scale organizations in the
manufacturing, retail, transportation and service industries. The company's
Integration Services Group (ISG) specializes in providing data collection
solutions for SAP R/3 enterprise software with TekRF Integration Components
for R/3. An estimated 6,000 Teklogix systems are installed in more than 50
countries worldwide. The company has 39 sales and support offices and 26
independent distributors throughout North America, Europe, Asia, Australia,
and South and Latin America.
TEKLOGIX INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
AS AT MARCH 31
(expressed in thousands of dollars) 2000 1999
---- ----
ASSETS
Current
Cash and cash equivalents $9,452 $7,357
Accounts receivable 57,036 40,452
Inventories 24,752 21,824
Income taxes recoverable - 1,235
Prepaid expenses and other assets 4,978 1,217
Shareholder loans receivable 45 22
Future income tax asset 4,012 4,404
----------- -----------
Total current assets 100,275 76,511
Capital assets, net 30,014 25,881
Shareholder loans receivable 160 351
----------- -----------
$130,449 $102,743
----------- -----------
----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities $30,445 $26,850
Income taxes payable 422 -
Deferred revenue 8,726 9,132
Current portion of long-term debt 21 423
----------- -----------
Total current liabilities 39,614 36,405
Long-term debt - 21
Future income tax liability 1,014 -
----------- -----------
Total liabilities 40,628 36,426
----------- -----------
Shareholders' equity
Share capital 37,923 34,220
Retained earnings 51,898 32,097
----------- -----------
Total shareholders' equity 89,821 66,317
----------- -----------
$130,449 $102,743
----------- -----------
TEKLOGIX INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31
Three Months Ended Year Ended
March 31 March 31
------------------ (expressed in thousands --------------------
of dollars, except
per share amounts)
2000 1999 2000 1999
------------ ----------- ----------- ------------
$53,991 $49,316 Revenues $208,686 $173,519
22,685 19,992 Cost of sales 86,050 73,440
----------- ----------- ----------- ------------
31,306 29,324 Gross profit 122,636 100,079
----------- ----------- ----------- ------------
Expenses
Research and
4,439 3,647 development 16,129 12,273
Selling, general
17,629 18,260 and administrative 73,492 62,320
----------- ----------- ----------- ------------
22,068 21,907 89,621 74,593
----------- ----------- ----------- ------------
9,238 7,417 Operating income 33,015 25,486
88 (26) Interest expense 475 431
(income), net
----------- ----------- ----------- ------------
Income before
9,150 7,443 income taxes 32,540 25,055
Provision for
3,383 2,789 income taxes 12,739 9,760
----------- ----------- ----------- ------------
Net income for
$5,767 $4,654 the period $19,801 $15,295
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
Weighted average
14,276,786 13,950,875 number of shares 14,123,442 13,902,555
Basic earnings
$0.40 $0.33 per share $1.40 $1.10
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
Fully diluted earnings
$0.39 $0.33 per share $1.33 $1.04
----------- ----------- ----------- ------------
TEKLOGIX INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31
Three Months Ended Year Ended
March 31 March 31
------------------------ ----------------------
2000 1999 2000 1999
----------- ----------- ---------- ----------
100.0% 100.0% Revenues 100.0% 100.0%
42.0% 40.5% Cost of sales 41.2% 42.3%
----------- ----------- ---------- ---------
58.0% 59.5% Gross profit 58.8% 57.7%
----------- ----------- ---------- ---------
Expenses
8.2% 7.4% Research and development 7.8% 7.2%
Selling, general and
32.7% 37.1% administrative 35.2% 35.9%
----------- ----------- ---------- ---------
40.9% 44.5% 43.0% 43.1%
----------- ----------- ---------- ---------
17.1% 15.0% Operating income 15.8% 14.6%
Interest expense
0.2% -0.1% (income), net 0.2% 0.2%
----------- ----------- ---------- ---------
Income before income
16.9% 15.1% taxes 15.6% 14.4%
Provision for
6.3% 5.7% income taxes 6.1% 5.6%
----------- ----------- ---------- ---------
Net income for
10.6% 9.4% the period 9.5% 8.8%
----------- ----------- ----------- ---------
TEKLOGIX INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEAR ENDED MARCH 31
Three Months Ended Year Ended
March 31 March 31
-------------------- ----------------
(expressed in thousands
2000 1999 of dollars) 2000 1999
------ ------ ------ ------
OPERATING ACTIVITIES
$5,767 $4,654 Net income for the period $19,801 $15,295
Add/(deduct) items not
affecting cash
381 (121) Future income taxes 561 85
533 1,330 Amortization 5,521 4,681
Loss on disposal of
- 97 capital assets - 61
---------- --------- -------- --------
6,681 5,960 25,883 20,122
Net change in non-cash
working capital balances
3,186 (2,324) related to operations (18,613) (728)
---------- --------- -------- --------
Cash provided by operating
9,867 3,636 activities 7,270 19,394
---------- --------- -------- --------
INVESTING ACTIVITIES
(911) - Acquisition (911) -
(1,247) (3,566) Purchase of capital assets (7,783) (7,484)
Proceeds from disposal of
71 84 capital assets 71 84
Decrease in shareholder
42 87 loans receivable 168 239
---------- --------- -------- --------
Cash used in investing
(2,045) (3,395) activities (8,455) (7,161)
---------- --------- -------- --------
FINANCING ACTIVITIES
- (3,639) Decrease in long-term debt (423) (4,767)
Issuance of common shares,
2,330 397 net 3,703 731
---------- --------- -------- --------
Cash provided by (used in)
2,330 (3,242) financing activities 3,280 (4,036)
---------- --------- -------- --------
Net increase (decrease)
10,152 (3,001) in cash during the period 2,095 8,197
Cash position, beginning
(700) 10,358 of period 7,357 (840)
---------- --------- -------- --------
Cash position, end of
$9,452 $7,357 period $9,452 $7,357
---------- --------- -------- --------
TEKLOGIX INTERNATIONAL INC.
SUPPLEMENTAL INFORMATION
FOR THE YEAR ENDED MARCH 31, 2000
Year Ended
March 31, 2000
--------------
Year-Over-Year Growth (%)
Revenues 20.3%
Operating Income 29.2%
Net Income 29.5%
EPS - Basic 27.3%
Fiscal Year
----------------
Key Ratios 2000 1999
----------------
Return on Revenue (%) 9.5% 8.8%
Return on Invested Capital (%) 55.3% 61.1%
Return on Equity (%) 25.4% 26.2%
Working Capital 2.5 2.1
TEKLOGIX INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2000
(expressed in thousands of dollars, except per share amounts)
Q1 Q2 Q3 Q4 FY2000
----------- ----------- ----------- ----------- -----------
Revenues $49,490 $52,190 $53,015 $53,991 $208,686
Cost of sales 19,943 21,418 22,004 22,685 86,050
----------- ----------- ----------- ----------- -----------
Gross profit 29,547 30,772 31,011 31,306 122,636
----------- ----------- ----------- ----------- -----------
Expenses
Research and
development 3,628 3,772 4,290 4,439 16,129
Selling,
general and
administra-
tive 19,259 17,846 18,758 17,629 73,492
----------- ----------- ----------- ----------- -----------
22,887 21,618 23,048 22,068 89,621
----------- ----------- ----------- ----------- -----------
Operating
income 6,660 9,154 7,963 9,238 33,015
Interest
expense
(income), net (14) 154 247 88 475
----------- ----------- ----------- ----------- -----------
Income before
income taxes 6,674 9,000 7,716 9,150 32,540
Provision for
income taxes 2,530 3,740 3,086 3,383 12,739
----------- ----------- ----------- ----------- -----------
Net income for
the period $4,144 $5,260 $4,630 $5,767 $19,801
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Weighted
average
number of
shares 14,021,027 14,074,295 14,122,171 14,276,876 14,123,442
Basic
earnings per
share $0.30 $0.37 $0.33 $0.40 $1.40
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Fully diluted
earnings per
share $0.28 $0.35 $0.31 $0.39 $1.33
----------- ----------- ----------- ----------- -----------
TEKLOGIX INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1999
(expressed in thousands of dollars, except per share amounts)
Q1 Q2 Q3 Q4 FY2000
----------- ----------- ----------- ----------- -----------
Revenues $34,941 $42,289 $46,973 $49,316 $173,519
Cost of sales 15,274 18,211 19,963 19,992 73,440
----------- ----------- ----------- ----------- -----------
Gross profit 19,667 24,078 27,010 29,324 100,079
----------- ----------- ----------- ----------- -----------
Expenses
Research and
development 2,712 2,768 3,146 3,647 12,273
Selling,
general and
administra-
tive 12,885 14,659 16,516 18,260 62,320
----------- ----------- ----------- ----------- -----------
15,597 17,427 19,662 21,907 74,593
----------- ----------- ----------- ----------- -----------
Operating
income 4,070 6,651 7,348 7,417 25,486
Interest
expense
(income),
net 204 156 97 (26) 431
----------- ----------- ----------- ----------- -----------
Income before
income taxes 3,866 6,495 7,251 7,443 25,055
Provision for
income taxes 1,544 2,600 2,827 2,789 9,760
----------- ----------- ----------- ----------- -----------
Net income for
the period $2,322 $3,895 $4,424 $4,654 $15,295
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Weighted
average
number of
shares 13,986,613 13,880,243 13,883,473 13,950,875 13,902,555
Basic earnings
per share $0.17 $0.28 $0.32 $0.33 $1.10
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Fully diluted
earnings per
share $0.16 $0.26 $0.29 $0.33 $1.04
----------- ----------- ----------- ----------- -----------
-0- 05/30/2000
For further information: Gordon Wilde, VP Finance & CFO, (905) 812-6220, Teklogix
International Inc., gwilde@teklogix.com |
