Welcome!

News Feed Item

Kinaxis Inc. Reports Fiscal Second Quarter 2014 Results

- Reports Subscription Revenue Growth of 28% -

OTTAWA, Aug. 7, 2014 /CNW/ - Kinaxis® TSX:KXS, provider of RapidResponse®, delivering cloud-based SCM and S&OP applications, reported results for its fiscal second quarter ended June 30, 2014. All figures are in U.S. dollars and prepared in accordance with International Financial Reporting Standards (IFRS).

Second Quarter 2014 Highlights
(Comparisons made between fiscal Q2 2014 and fiscal Q2 2013 results, unless otherwise noted)

  • Subscription revenue was $12.6 million, up 28%
  • Total Revenue was $17.9 million, up 14%
  • Gross profit was $12.3 million (69% of total revenue), up 10%
  • Adjusted EBITDA totaled $3.3 million 
  • Adjusted Profit totaled $1.9 million or $0.09 per diluted share
  • Completed initial public offering, issuing 5,000,000 common shares and an aggregate of 3,900,672 common shares were also sold by certain shareholders at a price of Cdn$13.00 per share. The offerings resulted in aggregate gross proceeds of Cdn$65.0 million to Kinaxis and Cdn$50.7million to the selling shareholders, for total aggregate gross proceeds of Cdn$115.7 million.

"The success of our initial public offering underscores the market's positive view of our unique SaaS offering and the growth potential it represents," said Doug Colbeth, President and CEO of Kinaxis. "The complexity and importance of supply chain management in today's global economy provides us with a large addressable market. Our focus is growing subscription revenues through new customers, verticals and applications to drive cash flow."

Fiscal Q2 2014 Financial Results

Total revenue for the three months ended June 30, 2014 (Q2 2014) was $17.9 million, an increase of 14% compared to the same period in 2013. For the six month period ended June 30, 2014 (H1 2014), revenue was $33.6 million, an increase of 16% compared to $29.0 million in the same year ago period.

Subscription revenue was $12.6 million in Q2 2014, an increase of 28% from $9.9 million for the same period in 2013. For H1 2014, subscription revenue was $24.0 million versus $19.0 million in 2013. The increase was due to additional revenue from contracts secured with new customers during fiscal 2013 and in the first quarter of 2014 and expansion of existing customer subscriptions.

Professional services revenue was $5.0 million in Q2 2014, compared to $5.4 million for the same period in 2013. For H1 2014, professional services revenue was $9.0 million as compared to $9.2 million in the same year ago period. The change was due to a significant engagement with an existing customer that ended in December of 2013 largely offset by services provided for deployment of new customers acquired second half of 2013 and first quarter of 2014.

Gross profit was $12.3 million in Q2 2014, compared to $11.2 million for the same period in 2013. For H1 2014, gross profit was $23.1 million as compared to $20.2 million in the same year ago period. As a percentage of revenue, gross profit was 69% in the second quarter and H1 2014 compared to 71% in the second quarter of 2013 and 70% in H1 2013. This change is due to the investment in additional Professional Services headcount and data centre capacity undertaken in the second quarter to support growth.

Adjusted EBITDA was $3.3 million in Q2 2014, compared to adjusted EBITDA of $3.8 million in the same period last year. The change is primarily attributable to certain non-capitalized costs incurred to support the initial public offering and higher operating expenses, specifically, professional services and research and development resources. H1 2014 Adjusted EBITDA was $7.2 million compared to $5.8 million in H1 2013. The increase in Adjusted EBITDA over the prior period was primarily due to increase in revenue and gross profit. A reconciliation of net loss to Adjusted EBITDA is provided below.

Net loss was $5.3 million or $0.34 per basic and diluted share in Q2 2014 compared to a net loss of $3.5 million or $0.21 per basic and diluted share for the same period in 2013. The increase in loss was primarily driven by a higher fair value, non-cash adjustment on the redeemable preferred share liability.  Net loss in H1 2014 was $3.3 million compared to $6.1M in the same year ago period due to a lower fair value, non-cash adjustment on the redeemable preferred share liability.  The redeemable preferred shares were converted into common shares in connection with the initial public offering and will no longer affect our operating results.

Adjusted profit, which excludes the fair value adjustment on the redeemable preferred share liability and non-cash share-based compensation, was $1.9 million in Q2 2014, compared to $2.7 million in the same year ago period. The change was the result of higher expenses due to investment in professional services and research and development resources and costs incurred to support the initial public offering. For H1 2014, Adjusted profit was $4.5 million compared to $3.9 million in the same period last year. The increase in Adjusted profit during the first half of 2014 was the result of an increase in revenue and gross profit compared to the first half of 2013 . A reconciliation of net loss to Adjusted profit is provided below.

Cash generated by operating activities was $7.3 million for H1 2014 as compared to $6.4 million in H1 2014. The increase was the result of higher deferred revenues received as cash in the period which resulted from the timing of subscription billings as well as a contract amendment with an existing customer.

Cash and cash equivalents were $50.5 million as at June 30, 2014 as compared to $13.8 million as at December 31, 2013. The increase is primarily due to the proceeds from our initial public offering net of repayment of the term loan, as well as cash from operations for the first six months of 2014.

Please refer to the section regarding forward-looking statements which forms an integral part of this release. These results, along with the unaudited condensed consolidated interim financial statements and the company's unaudited MD&A, are available on the company's website at www.kinaxis.com and on SEDAR at www.sedar.com.

Conference Call

The company will host a conference call tomorrow (Friday, August 8, 2014) to discuss these results. Doug Colbeth, President & CEO and Richard Monkman, CFO will host the call starting at 8:30 a.m. Eastern time. A question and answer session will follow management's presentation.

Date: Friday, August 8, 2014
Time: 8:30 a.m. Eastern time
Dial-In Number: 1 (888) 231-8191
International: 1 (647) 427-7450
Conference ID#: 63138727

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

A replay of the call will be available after 11:30 a.m. Eastern time on the same day through August 14, 2014.

Toll-Free Replay Number: 1 (855) 859-2056
International Replay Number: 1 (416) 849-0833
Replay PIN: 63138727

About Kinaxis Inc.

Kinaxis is a leading provider of cloud-based subscription software that enables our customers to improve and accelerate analysis and decision-making across their supply chain operations. The supply chain planning and analytics capabilities of our product, RapidResponse, create the foundation for managing multiple, interconnected supply chain management processes. By using the single RapidResponse product instead of combining individual disparate software solutions, our customers gain visibility across their supply chains, can respond quickly to changing conditions, and ultimately realize significant operating efficiencies.

Non-IFRS Measures

This news release contains non-IFRS measures, specifically, Adjusted profit, Adjusted diluted earnings per share, and Adjusted EBITDA.  We use Adjusted profited and Adjusted diluted earnings per share, which remove the impact of our redeemable preferred shares and stock option plans, to measure our performance as these measurements better align the reporting of our results and improve comparability against our peers. We use Adjusted EBITDA to provide investors with a supplemental measure of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures.  We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.  Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements.  Adjusted profit, Adjusted diluted earnings per share and Adjusted EBITDA are not recognized, defined or standardized measures under IFRS. Our definition of Adjusted profit, Adjusted EBITDA and Adjusted diluted earnings per share will likely differ from that used by other companies (including our peers) and therefore comparability may be limited.  Non-IFRS measures should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures.

We have reconciled Adjusted profit and Adjusted EBITDA to the most comparable IFRS financial measure as follows:

  Three months ended March 31   Six months ended June 30
    2014     2013     2014     2013
          (In thousands of U.S. dollars)      
                       
                 
Loss  $    (5,274)   $     (3,532)   $      (3,317)   $     (6,099)
Loss due to change in fair value of redeemable preferred shares    6,581     5,972     6,760     9,536
Share-based compensation    631     217     1,019     454
Adjusted profit  $    1,938   $   2,657   $        4,462   $    3,891
Income tax expense    889     964     1,692     1,562
Depreciation    260     207     500     407
Net finance (income) expense    253     (15)     510     (28)
Adjusted EBITDA  $    3,340   $      3,813   $     7,164   $     5,832
                       

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements as to Kinaxis' growth opportunities and the potential benefits of, and markets and demand for, Kinaxis' products and services. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of Kinaxis' products and services compared to competitive offerings in the industry. Readers are cautioned not to place undue reliance on such statements. Kinaxis' actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of Kinaxis to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by Kinaxis with Canadian securities regulatory authorities. Kinaxis assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

SOURCE Kinaxis Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in ...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
"Peak 10 is a national cloud data center solutions managed services provider, and part of that is disaster recovery. We see a growing trend in the industry where companies are coming to us looking for assistance in their DR strategy," stated Andrew Cole, Director of Solutions Engineering at Peak 10, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership abi...
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...