Tecsys- the new kid in town

    Yes just like the song by the Eagles says this is the new kid in town.Tecsys has been around for awhile but has never been in this blog. And now it just had a second quarter report which was not exceptional but a solid quarter. Quarterly revenues increased by 5% over that of 2015 and EBITDA went from $1.2 million to $.935 million. It has a yield of 1% and a market capitalization of about $150 million.This is certainly a decent dividend for a "small cap" stock.Tecsys according to this blog has good growth prospects.It traded at around $2.00 five years ago and gradually moved up to $9.00 then it fell off to the $6.00 level and now has gone back up to $10 per share.
    Operations
   Tecsys operates a supply chain providing  materials chiefly to hospitals and health organizations.But it does have a new  division that handles construction and infrastructure.This area contains ownership in small cap companies like Evoko, Construction Cointrol and The Municipal Infrastructure Group.This is a new area but is providing a fair amount of TCS's growth.Tecsys (TCS) has seen it's annual revenues grow from $42 million in 2010 to $66 million in 2015 and operating income from $1.3 million in 2010 to $4.6 million in 2015.Net income has grown constantly from $.9 million in 2010 to $4.80 million in 2015.It has opened new markets, increased revenues, and has managed it's revenues well. So that net income has marched forwards steadily.
   Conclusion
 This quarter was not good relative to the same quarter in 2016 but it was solid as measured by other quarters in this calendar year.Annual revenues are about $66 to $70 million and this quarter is in line with that pace.EBITDA also is about average at $935,000;some quarters have been as high as $3.25 million.Their new subsidiaries are primarily located in western Canada and are expected to increase in profitability in 2017.And their new resource called TMIG should fit in well with their other subsidiaries.Their medical facilities will earn about the same this year.Putting these facts together  this blog expects that revenues may hit $75 million for the next fiscal year.This means that their dividend will be safe and the P/E multiple will be very low relative to it's peers.
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