BSM Technologies Inc. Reports 25% Recurring Revenue Growth in its Second Quarter of Fiscal 2015

TORONTO, May 13, 2015 /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, 2015 (the "Quarter"). All amounts are in Canadian dollars unless otherwise stated.

Second Quarter of Fiscal 2015 Financial Highlights

• Recurring revenue⁽ⁱ⁾ of $5.1 million, up 25% compared to $4.1 million in the second quarter of fiscal 2014 ("Q2 F2014").
• Hardware and other revenue of $2.5 million, up 6% compared to $2.3 million in Q2 F2014.
• Total revenue of $7.6 million, up 18% compared to $6.5 million in Q2 F2014.
• Adjusted EBITDA⁽ⁱ⁾ of $0.9 million compared to $1.1 million in Q2 F2014.

"We delivered year-over-year improvements in recurring and hardware revenue, in the quarter," said Aly Rahemtulla, BSM's President and Chief Executive Officer. "Our, top-line growth resulted from increased penetration in our key verticals both organically and through the acquisitions we made in 2014. We continue to expand our relationships with our existing customers, further strengthening our relationships. In addition, our second quarter results reflected the impact of our continued efforts to drive higher gross margins from our business with a particular emphasis on increasing our hardware gross margins. As we look to the remainder of the fiscal year, we are optimistic about our continued growth prospects. We will focus on capitalizing on the opportunities in our robust pipeline while improving our cost structure to fuel increased EBITDA⁽ⁱ⁾."

Financial Highlights for the Second Quarter of Fiscal 2015:

($ thousands except gross margin % and per share data)	Three months ended		Six months ended
	March 31		March 31
	2015	2014	2015	2014
Total revenue	$7,645	$6,467	15,502	14,403
Recurring revenue^(i)	5,128	4,102	10,153	8,118
Hardware and other revenue	2,517	2,365	5,439	6,285
Gross profit	5,000	3,767	9,380	8,133
Gross margin %	65%	58%	61%	56%
Net income (loss)	843	304	59	947
Basic income (loss) per share	0.019	0.007	0.001	0.025
Diluted income (loss) per share	0.019	0.007	0.001	0.024
EBITDA^(i)	666	1,097	1,010	2,647
Adjusted EBITDA^(i)	930	1,097	1,719	2,647
	Balance as at
($ thousands)
	March 31, 2015		September 30, 2014
Cash and cash equivalents	$13,979		$23,621
Restricted cash and cash equivalents	8,800		nil
Working capital	4,624		5,718

 

(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, 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 three and six months ended March 31, 2015, 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:

DATE:	Thursday, May 14, 2015
TIME:	8:30 a.m. EDT
DIAL-IN NUMBER:	647-427-7450 or 1-888-231-8191
CONFERENCE ID:	36774356
TAPED REPLAY:	416-849-0833 or 1-855-859-2056 Reference number 36774356 Available until Thursday, May 21, 2015 at midnight
LIVE WEBCAST:	http://www.newswire.ca/en/webcast/detail/1477495/1644799 Webcast will be archived for one year

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 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 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.

Aly Rahemtulla, President & CEO, BSM Technologies Inc., [phone], [email protected]; Conrad Seguin, TMX Equicom, [phone] ext. 251, [email protected]