TORONTO, Feb. 12, 2016 /CNW/ - BSM Technologies Inc. ("BSM" or the "Company") (TSX: GPS), a leading provider of remote monitoring, fleet management and fleet diagnostics, today announced its financial and operating results for the three months ended December 31, 2015 (the "Quarter"). The operating and financial results of BSM for the Quarter were prepared on a consolidated basis and, for the first time, include the operating results of Webtech Wireless Inc. ("Webtech"), which was acquired pursuant to the "merger of equals" transaction, via a plan of arrangement on September 30, 2015. The comparable period in fiscal 2015 does not include the operating and financial results of Webtech. All amounts are in Canadian dollars unless otherwise stated.

First Quarter of Fiscal 2016 Financial Highlights

• Recurring revenue⁽ⁱ⁾ of $9.9 million as compared to $5.0 million in the first quarter of fiscal 2015 ("Q1 FY2015").

• Hardware and service revenue of $5.8 million as compared to $2.8 million in Q1 FY2015.

• Total revenue of $15.7 million as compared to $7.9 million in Q1 FY2015.

• Adjusted EBITDA⁽ⁱ⁾ of $2.1 million as compared to $0.6 million in Q1 FY2015.

First Quarter of Fiscal 2016 Operational Highlights 

• Hardware revenue was highlighted by a significant customer implementation in BSM's government vertical and the completion of a CDMA migration program for a large enterprise customer.
  
• The Company's subscriber base had total net additions of approximately 1,000, ending the Quarter with approximately 150,500 total subscribers.
  
• BSM received regulatory approval to commence a normal course issuer bid (the "Bid"). Under the terms of the Bid, the Company may acquire approximately 10% of the total public float of the Company's common shares, as defined by the Toronto Stock Exchange. Purchases pursuant to the Bid will be completed under the terms of an automatic securities repurchase plan.
  
• As of the close of trading on February 11, 2016, BSM has purchased 1,259,500 common shares of the Company at an average price of $0.8684 per common share under the Bid since its commencement on December 23, 2015.

Management Commentary:

"To date, we have achieved approximately $3.5 million in annualized cost synergies resulting from the acquisition of Webtech. We realized approximately $500,000 in acquisition related synergies in our first quarter of fiscal 2016 and we anticipate realizing approximately $700,000 in the second quarter of fiscal 2016. Based on our progress to date, we continue to believe that we remain on-track to achieve $4.0 to $5.0 million in synergies by the second half of our fiscal 2017. In addition to integrating our businesses, we completed two sizable customer implementations. The combined impact of these items drove strong results across all of our key financial metrics for the quarter," said Aly Rahemtulla, BSM's President and CEO. "As we move through the remainder of fiscal 2016, our efforts to integrate BSM and Webtech will position us to capitalize on an expanded product, offering a larger vertically focused sales team and enhanced R&D capabilities to fuel accelerated growth."

Financial Highlights for the First Quarter of Fiscal 2016:

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 www.sedar.com and on the Company's website at bsmwireless.com.

Conference call details:

About BSM Technologies Inc. (bsmwireless.com)

BSM Technologies Inc., through its subsidiaries, is a global top 20 commercial fleet telematics provider for automatic vehicle location (AVL) solutions that improve efficiency, accountability and reduce costs for fleet operators. BSM's end-to-end solutions automate record keeping and regulatory compliance, reduce fuel burn and idling, mitigate risk, and keep drivers safe. BSM provides solutions for commercial and government units who manage and operate diverse assets and large fleets that utilize its integrated fleet tracking, fleet maintenance, and intelligent business engine which provides real time, webbased tracking of mobile and fixed assets.

For more information, please visit http://www.bsmwireless.com

Non-GAAP Disclosures

BSM believes that investors use certain non-GAAP financial 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 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 future financial or operating performance of the Company and statements regarding synergies and financial impact of integrating Webtech and BSM. 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 and include, but are not limited to, efficiently and successfully completing a network operating centre consolidation, efficiently and successfully completing a hardware and software consolidation, receiving increased volume discounts from suppliers and efficiently and successfully realizing operational efficiencies. Management believes that these assumptions are reasonable; however, some risks include, but are not limited to, the failure to efficiently or successfully complete network centre consolidation, the failure to efficiently or successfully complete hardware and software consolidation, the failure to realize or receive increased volume discounts from suppliers and the failure to efficiently or successfully achieve the expected operational efficiencies. The Company has provided the anticipated financial, operational and cost synergies in this press release to assist shareholders in their understanding of Webtech transaction. Readers are cautioned that this information may not be appropriate for any other purposes. 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 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 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.