AGM 2021

Sep 9, 2021

Hello, and welcome to the annual meeting of stockholders of Tecsys Inc. Please note that today's meeting is being recorded. During the meeting, we will have a question and answer session. You may submit a written question at any time by clicking on the message icon at the top of your screen. Please note that all participants are in a listen-only mode. If you experience technical difficulties during the meeting, please click on the support link on the screen. It is now my pleasure to turn today's meeting over to Mr. David Brereton. Sir, the floor is yours. Thank you very much, and good morning, ladies and gentlemen. Welcome to the 2021 annual and special meeting of shareholders of Tecsys. My name is Dave Brereton. I am the Executive Chairman of the Board of Tecsys. Allow me to proceed with the introductions. With me today are Peter Brereton, President and CEO, and Mark Bentler, the CFO and Secretary of Tecsys. The directors of Tecsys are also with us virtually today. According to the bylaws of the corporation, I am authorized to act as Chairman of the Meeting, and Mark Bentler, in his capacity as Secretary of the corporation, will act as Secretary of the Meeting. As this meeting is held in a virtual format with attendance via live webcast, we think it is necessary to set out a few rules for orderly conduct of the meeting. Questions in respect of a motion can be submitted by any registered shareholder or duly appointed proxy holder using the instant messaging service of the virtual interface. Guests may also ask questions with respect to any other matter discussed during this meeting. Our moderator will view the questions and send to review for the Chairman to address them during the meeting. When asking a question, please indicate your name, which entity you represent, if any, and confirm that you are a registered shareholder, a duly appointed proxy holder, or a guest. Questions will only be addressed during the question period at the end of the meeting, provided that questions regarding procedural matters or directly related to the motions before the meeting may be addressed during the meeting. For the purposes of the meeting today, voting on all matters will be conducted by electronic ballot. Registered shareholders and duly appointed proxy holders will be asked to vote on each business item after the presentation of all business items. When you are asked to vote, you will receive a message on the virtual interface requesting you to register your votes. You will only have a certain amount of time to do so when the polls are open. If you have already voted by proxy, you do not need to vote again during the online ballot. If you have already voted by proxy and you vote again during the online ballot during the meeting, your online vote during the meeting will revoke the proxy you previously submitted. If you have already voted by proxy and do not wish to revoke your previously submitted proxy, do not vote again during the online ballot. We will now proceed with the formal portion of today's meetings. To expedite the formal part of the meeting, I will move and second all motions. Go to slide 2 now, if you're following along with the PowerPoints. This is the agenda. In today's meeting, I would like us first to deal with all the procedural matters and close the annual and special meeting of shareholders. Following that, Peter Brereton will make his remarks on the last fiscal year. Then Mark Bentler will present the financial highlights of that year. Following those remarks, Peter Brereton will provide highlights of the first quarter of fiscal year 2022. Later today at 1:00 P.M. Eastern Time, Peter and Mark will be conducting an earnings call to discuss the results of the first quarter of fiscal year 2022. We invite you to attend that call, and separate dial-in instructions for the call are being provided later in the presentation. The earnings call dial-in instructions have also been posted on SEDAR. Slide 3. Forward-looking statements. The statements in this presentation relating to the matters that are not historical fact are forward-looking statements that are based on management's beliefs and assumptions. Such statements are not guarantees of future performance and are subject to a number of uncertainties, including but not limited to future economic conditions, the markets that Tecsys Inc. serves, the actions of competitors, major new technological trends, and other factors beyond the control of Tecsys Inc., which could cause actual results to differ materially from such statements. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners. Slide 4, nomination of scrutineers. With the consent of the meeting, I have designated as scrutineers Pina Pacifico and Theresa De Luca, employees of Computershare Investor Services, registrar and transfer agent of Tecsys Inc. Slide 5, notice of meeting. The secretary has submitted a copy of the notice of this meeting as sent to the shareholders and the accompanying material as well as the affidavit of a transfer officer of Computershare, confirming that the notice of the meeting, Management proxy circular, proxy form, and the 2021 annual report were duly sent to shareholders of record on July 26th, 2021. These documents will be filed with the records of this meeting. Slide 6, report of the scrutineers. The scrutineers have submitted the report showing the quorum has been reached, and they confirm that 82.06% of the holders of the outstanding common shares of the corporation are present or represented at this meeting. Therefore, I declare this meeting duly called and constituted to deal with any matters appearing on the agenda. The secretary will file the report of the scrutineers with the results of this meeting. Slide 7, resolution for an exemption from the reading of the minutes at the last meeting. Unless there is any objection, I will dispense with the reading of the minutes of the last meeting of shareholders held on September 10th, 2020. I direct that the minutes of the last meeting of shareholders be taken as read and approved and signed as accurate. Copies of the minutes are available with Tecsys corporate secretary. Slide 8, receiving of financial statements and the auditors' report thereon. The next order of business on the agenda is the presentation of the financial statements for the financial year ended April 30th, 2021, and the auditors' report thereon. A copy of the annual report containing such financial statements and the auditors' report thereon has been sent to every shareholder of record on July 26th, 2021, and copies are available with Tecsys corporate secretary. Consequently, I ask the secretary to produce the annual report and file it with the records of this meeting. Slide 9, election of directors. The next order of business on the agenda is the election of directors. The management of Tecsys has proposed in the management information circular 7 nominees for the shareholders to consider today. The directors appointed at this meeting will serve as directors of Tecsys until the next annual meeting of shareholders or until their successors are appointed. The proposed nominees are David Brereton, Peter Brereton, Vernon Lobo, Steve Sasser, David Booth, Rani Hublou and Kathleen Miller. Are there other nominations? If you have a nomination, please type the name in the instant messaging service of the virtual interface. Since there are no other nominations, I move and second a motion to close the nomination period. I now also move and second a motion to nominate the following persons as directors of Tecsys Inc., David Brereton, Peter Brereton, Vernon Lobo, Steve Sasser, David Booth, Rani Hublou, Kathleen Miller. Unless there are any questions, I will move to the next item of business. Slide 10, appointment of auditors. We shall now proceed with the appointment of the auditors for the ensuing year. The audit committee of the board of directors of Tecsys has approved, subject to shareholder confirmation, the appointment of KPMG LLP Chartered Professional Accountants as the auditors of Tecsys. I move and second that KPMG LLP Chartered Professional Accountants be appointed auditors of Tecsys until the next annual meeting of shareholders. Unless there are any questions, I will move to the next item of business. Slide 11, approval of unallocated options. The next item of business is to consider a resolution ratifying and approving unallocated options under Tecsys' 2018 amended and restated stock option plan. Pursuant to the policies of the Toronto Stock Exchange, the unallocated options under a security-based compensation arrangement, such as the stock option plan, must be approved by shareholders every three years if the plan provides for a number of options to purchase common shares based on a percentage of outstanding shares from time to time. The full text of the resolution is set out under the section approval of unallocated options in the management information circular. I note that Tecsys recently made some amendments to the stock option plan to incorporate some suggestions from institutional shareholder services as indicated in our August 31st press release. These amendments, one, confirmed the limit on the value of annual grants of awards issuable to each independent director, including any non-employee member of the board under the stock option plan and any other share-based compensation arrangement adopted by Tecsys. Two, restrict the ability of Tecsys to make certain amendments to the stock option plan or the terms of any option agreements without shareholder approval. The amended and restated stock option plan has been filed under Tecsys' profile on SEDAR. I will now move and second that the resolution, the text of which is provided under the section Approval of Unallocated Options of the management proxy circular, be adopted. Unless there are any questions, I will move to the next item of business. Slide 12. Vote. As we mentioned, voting today will be conducted by electronic ballot for registered shareholder or duly appointed proxy holder. I will now take a moment to ask that the balloting be opened to registered holders and appointed proxy holders. The polls are now open, and at this point, all registered holders and proxy holders who have properly logged in with their control numbers or username and wish to vote will be able to see on the screen all motions being brought forth at this meeting. Please register your votes by accessing the voting page and selecting the For or Withhold buttons next to the name of each proposed director and next to the resolution with respect to the appointment of KPMG LLP Chartered Professional Accountants as Tecsys auditors. Please also register your votes by selecting the For or Against buttons next to the resolution for the approval of unallocated options to purchase common shares under Tecsys' 2018 amended and restated option plan. No question has been submitted on the voting procedure. We will provide registered shareholders and duly appointed proxy holders approximately 20 more seconds to complete the electronic ballots. Once the electronic balloting closes, the voting page will disappear, and your votes will automatically be submitted. I have been advised by the scrutineers that based on the preliminary results received by the scrutineers, the proxies deposited for the meeting have been voted in favor of the resolutions. Each of the seven nominees have been elected as directors of Tecsys to serve until the next annual meeting of shareholders or until their successors are elected or appointed. Tecsys has adopted a majority voting policy under which a director nominee will be deemed not to have received the support of shareholders, even if he or she is elected by a plurality of votes, if the number of votes cast in favor of his election. Based on these voting results, all of the director nominees were elected in accordance with this policy. The appointment of KPMG LLP, Chartered Professional Accountants, as the auditors of Tecsys has been approved. The resolution for the approval of unallocated options to purchase common shares under Tecsys' 2018 amended and restated stock option plan has been approved. The scrutineer compiled a final report regarding the results of voting on all business matters. The results of the poll will be included with the minutes of this meeting, and the results of the voting will be announced in a press release in accordance with the policies of the TSX and filed on SEDAR. Slide 13. Termination of shareholders meeting. We have now completed all procedural matters, and I would like us now to turn to the special meeting of shareholders, and then we shall continue with the other presentations. I move and second that this meeting now terminate. As there are no further business to come before the meeting, I declare the formal part of the meeting to be concluded. I will now turn the meeting over to Peter Brereton, the CEO of Tecsys, for the presentation of his remarks on fiscal year 2021. Thank you, Dave. As we move into the more informal part of the meeting, we'll be working our way through the remaining slides on the deck. We are keeping an eye on the wire, because we're toward the end of this presentation. I hope to give you a very quick summary of what happened in Q1. We can't do that, of course, until the press release announcing Q1 results is out on the wire. We'll watch our timing here as we go. A quick reminder, if you move along to slide 15. This is what we do, right? We equip supply chain greatness. That mission right now spans all the way from just past point of manufacture, sort of finished goods side of manufacturing, all the way through to, in fact, the consumer doorstep. That spans a variety of sectors, healthcare, auto parts, wine and spirits, consumer goods, including clothing, fashion items, et cetera. Wide span in terms of product lines moving through the pipeline and the supply chain itself, truly end-to-end. In fact, increasingly, we are also doing business managing supply chains that feed into manufacturing. In a sense, we are now on both sides of the manufacturing plant. Moving on to the next slide 16. We continue to be seen as a visionary provider of supply chain technology, covering some of the world's most complex supply networks. We've been at it a long time. 38 years in the software business is pretty much forever. We bring to market a collection of both software that embodies our intellectual property, as well as a phenomenal team of supply chain experts, people that have been with us, in some case, for decades, that thoroughly understand supply chains and how to apply technology to solve supply chain problems. We are now 9 times in a row, a visionary in Gartner's WMS Magic Quadrant. We're proud to say that the top three in 2020 in Gartner's Healthcare Supply Chain Top 25 Masters, were in fact running on our platform. Reminder on slide 17 of what we do. This is the software we bring to market. It covers everything from demand planning, that is, what to buy and when to buy it, through to actual purchasing and storing, and then physical management of the inventory through warehousing and transportation. Finally, in effect, getting rid of the inventory one way or the other. If you're a commercial enterprise, it may be through an e-commerce transaction, either to another business or direct to consumer. If you are a hospital, it will be through point of use as the inventory is consumed in the operating room or cath lab, or at the nursing station or in a individual patient room, et cetera. That is wrapped with financial management and analytics and budgeting and all those kinds of things, as well as some specialized billing for the 3PL market space. If you look on slide 18, you see there that we really see this as merging into two markets. In many ways, today, we sort of pursue three markets. If you start on the right-hand side, you've got healthcare, a variety of great healthcare organizations there that have joined us over the years. You see some of them, Mercy Health, University of Washington out on the West Coast, and so on. Parkview in Indiana. A good collection of healthcare networks. Mayo Clinic would be over there, too, although they're not on the slide. Then on the left, you see these, what have been two markets, the retail marketplace, and the complex distribution marketplace beginning to merge into one combined marketplace. You see in there companies like Hagen, the pet supplies people, Canon, that, of course, we all know. You've got Princess Auto here, a Canadian retailer. Columbia Sportswear, which predominantly distributes through retail, but now has a rapidly growing direct-to-consumer business. These things are starting to come together into one combined marketplace there on the left. As you can see, healthcare is 35% of our business. Over the years, it has generally been the most rapidly growing part of our business. Sometimes an acquisition bolsters the other side and sort of brings it back to this kind of 2/3, 1/3. Certainly, although complex is growing as well, but healthcare is certainly the more rapid growth piece at this point in time. If we look at a couple of examples here, just running through this, and I won't belabor these. I know these meetings can get long. McLeod Health joined us recently. A network down in South Carolina, over 100 years old, 7 hospitals, facilities. Fairly large staff, as you can see there on. I should say that I am on slide 19. You can see that, fairly sizable organization. They bought us because they believed they needed to have exceptional visibility across the health system. They want an automated track and trace for regulatory compliance, and they had a lot of manual redundancy they wanted to eliminate. Great success there. Great organization. Very proud to have them as a customer. If we move on to slide 20. Here you see Politix. Other side of the world, Australia. High quality menswear company, founded in 1975 in Melbourne. It's now part of Woolworths Holdings, and through the Country Road Group, and rapidly expanding. Very strong e-commerce business. Implemented the Ask to Manage click and collect with store fulfillment and routing. You can see they're very pleased with the result. You can see the quote there from their head of marketing and online, "By streaming our back end order management process with Tecsys, we gain the flexibility and robustness to deliver on our brand promise and fulfill our commitment to our customers." I think, as we're all aware, we all look at what we buy online, both for the quality of what we get, as well as what the whole consumer experience is like. In our play, we can't do much to affect the quality of what gets delivered, but we can seriously upgrade the consumer experience using our platform there. That's Politix in Australia. Coming back to Europe and the Middle East, Sephora. We may have talked about them before. They've been a client for a couple years now, launched with BOPIS. By the way, BOPIS and click and collect are synonymous terms. BOPIS tends to be used more in North America, click and collect more in Europe. BOPIS being buy online, pickup in store. Click and collect, you can imagine meaning the same thing. Started with them in France, but we've been expanding with them on an accelerated multi-country rollout. They've added 15 additional countries in the last year. Look at that, close to 54,000 different products carried across over 800 stores and warehouses. Year-over-year volume up 97%. Fantastic success story there, and great to see them taking full advantage of the platform. Moving back closer to home, Fuel Transport, right here in Quebec. Serving industries in aerospace, automotive, food, beverage, and so on. They are a third-party logistics company, and they do both non-asset and asset-based services. Very comprehensive 3PL, and implemented our platform, and very pleased with the result. They're now offering more competitive offerings in their market, and it has boosted their business and visibility with some very high-profile clients. Great success there. Last example we're going to throw at you here, BMR. Again, many people from Quebec will know them, a hardware store group, distributor of everything, lumber and related building supplies and so on, over 300 corporate and co-op and franchise stores. We've now got 70 stores on the order management platform. They're rolling out to 150 over the next few months, remaining stores after that. You can see that they used to have 20,000 products available online. They're now up to 35,000 items, including the building materials. Great success there. We're very pleased with that, and it's also just a lot of fun to have one of our customers actually right in our own backyard. Another great success story there. Moving on. Where are we here overall? We finished the year with CAD 123 million in revenue. The annual recurring revenue grew at an 18% clip year-over-year, ending with a total annual recurring revenue of CAD 52 million, and about 650 employees. A reminder of the healthcare market. I'm now on slide 25. This is a market. We're targeting 300 systems, the largest 300 in the U.S. We currently have about 45 of them. We are adding more every quarter. We see that as a CAD 600 million annual recurring revenue opportunity. We think there's about a CAD 2 million annual recurring revenue opportunity per account on average. There's huge opportunity both in the market as well as in our customer base there. Another CAD 86 million, we believe, of available opportunity just in the customer base. I should point out that our plan, and of course, as you heard in the disclaimer back at the beginning, plans don't always work out. Our plan is to, over the next 4 years, get to 100 IDNs. We believe that's achievable. We're building the sales team and the marketing and the implementation teams and support teams and cloud capabilities and so on to achieve that. We believe that it will have taken us probably, in fact, almost 15 years to get to the first 50. We look to add the next 50 in the next 4 years. That is a combination of our capability and our market positioning and the state of the market in healthcare, which is now much more aware of the necessity and the benefit of a strong supply chain platform. We're very excited about that opportunity and looking forward to seeing how that pans out. If you look on the next slide 26, this talks about the convergence of brand owner and retail and complex distribution and how these are all coming together. Those of you that have been following us for a while probably get tired of hearing this, but we see those as coming together. The entire supply chain is being turned on its head to deal with everything that's going on in the world right now, rising e-commerce, direct to consumer, low unit sizes. We're not shipping pallets anymore. We tend to be shipping eaches as direct to consumer, because it's not what the supply chains were designed for, that were implemented in time for Y2K. Those supply chain platforms are now 20 years old. They're aging out. They need to be replaced and re-engineered. That is the game we're in. It is a very exciting high growth time in this space. We're looking forward to seeing continued great results there. If I move on to slide 27, you see here the steady build in annual recurring revenue. Over what, 4 consecutive years there? You're seeing 5 years in a row. Starting CAD 25 million in 2017, and by 2021 up to CAD 52.5 million. 34% of that is healthcare, 66% complex, and 18% year-over-year growth over fiscal 2020 in constant currency, and you'll see references to that occasionally in everything we publish. Currency, of course, can do good things and bad things to our numbers. We are approximately two-thirds U.S. revenue. Of course, when the U.S. dollar gets a lot stronger, revenue can surge. When the U.S. dollar gets a lot weaker, it causes revenue to sag. Overall growth has been substantial enough that it tends to sort of just keep showing growth anyway. To get to a real understanding of how we're growing, you always have to look at constant currency to understand sort of what's happening. Because what the exchange rate gives one quarter, it can of course give back the next quarter. Moving on to slide 28. This is annual recurring net retention rate. This speaks to sort of, we take existing customers, we add what those existing customers are adding to their annual recurring revenue by maybe price increases or adding additional branches or modules or users, et cetera. Then we take away from that any customers that have canceled or downsized, by the downsizing amount. We look at, okay, so what's the net result? Lately it's been, you can see here in 2021, it was 108%. We would expect it'll continue to lurch along in this range. 106%-108% kind of is where we expect it to be. The good news there is what this in effect means is, every time we add a new account, it's just growth. We're not having to replace churn of base account revenue. The base account revenue continues to rise, pretty nice level. It kind of gives us a floor, sort of you add no new accounts and your revenue, your recurring revenue still grows at 6%-8% a year. Of course, we are adding new accounts, we're adding new accounts every quarter. You end up with a combined much higher growth rate. We're very pleased with that number. If you look at gross retention, it tends to run in the 95% range, which means an average account stays with us for about 20 years. Here you see what's happening with SaaS bookings growing and increasing as a percentage of the total. You can see from 2018 and 2019, where we were just beginning to sell SaaS as opposed to perpetual license. By 2020 and 2021, of course, now predominantly SaaS bookings, 82% SaaS. The growth was definitely, and you see that in the number, the growth in that was definitely held back by the pandemic. We saw many small projects continue during the pandemic. Base accounts continue to add and grow their business and so on. The new account side, which of course adds that extra oomph to the growth, definitely slowed down during the pandemic year. I mean, obviously the pandemic's not even over yet, but certainly our fiscal 2021, which was May of 2020 through to April of 2021, was sort of the thick of it. You can see that the growth was slower during that time period. Sorry, my slides just jumped around on me here. Moving on to slide 30. You can see that the recurring revenue growth is predominantly fueled by SaaS. I mean, we get a little bit of growth out of our maintenance and subscription, which is part of that number. In fact, it is SaaS revenue that is absolutely the driver in this growth, which is why SaaS is becoming a much larger percentage of our total maintenance and subscription revenue. 36% in 2021, up from 22% the year before. From a dividend standpoint, we continue to grow our dividends. We've been increasing dividends every year for now, whatever that is, 13 years or something like that. We continue to see dividends as a good way to recognize our shareholders and our long-term shareholders that have been patient investors who are with us over many years. We think we at least owe them some rent. We continue to pay some increasing dividends every year and continue to see that as an important way to run the business. I am now going to turn this over to Mark Bentler, who's going to provide his comments from a CFO perspective on fiscal 2021. Thanks, Peter. I can also confirm that our Q1 results press release was released on the wire. After I go over the fiscal 2021 results, Peter will come back on and be able to say a couple of words about our Q1 fiscal 2022 results. I'm on slide 33, which is the agenda of topics I'll go over briefly this morning. I'm really gonna be focusing on revenue and revenue growth. We'll look at our headcount and where we've been investing in headcount in our recent history and focusing on the current year. Touch on operating results and backlog, and then we'll move into a look at the balance sheet and stock performance. On slide number 34. Highlighting here the revenue in the year, CAD 123.1 million of revenue in the year, which was a 17% year-on-year revenue growth. Again, the drivers in there being recurring SaaS revenue, as well as professional services revenue where we had continued robust growth in our fiscal 2021. Moving to slide 35, this is a breakout of actually the cloud maintenance and subscription revenue, which includes SaaS revenue. SaaS, as I mentioned, is the key driver in the growth in that cloud maintenance and subscription revenue number. In fiscal 2021, we landed at CAD 52.9 million. That was up 29% from the prior year, from fiscal 2020. Really solid growth in that recurring revenue stream. In fiscal 2021, that recurring revenue represented approximately 43% of our total revenue, and that was up from just over 39% last year. Moving to slide 36. This is again, looking at the revenue trends over the past number of years and focusing on 3 core constituents or core component parts of our revenue. 1 is the cloud maintenance and subscription revenue, which I just referred to on the other slide, which is our fastest-growing revenue stream. The other 2 that are highlighted here is products revenue. That's license and hardware-related revenues. Professional services revenue, which is the darker blue bar on the chart. We saw really solid professional services revenue growth in the current fiscal year, fiscal 2021, to CAD 47.4 million for the year. That's up 17% from last year's levels. Moving to slide number 37. This is a view of the same revenue categories, products, cloud maintenance and subscription, and professional services. This is just for the fourth quarter, so it's just showing what happened in the last quarter of fiscal 2021, where we had 17% consistent with the year-on-year, full year revenue growth numbers. The fourth quarter also grew 17% compared to the prior fourth quarter. You can see the component parts there with the leader in growth being cloud maintenance and subscription, that recurring revenue driven by SaaS, which was up 30% in our Q4 fiscal 2021 compared to the prior Q4 fiscal 2020. Moving along to slide number 38. This slide presents the SaaS backlog. This is also referred to as SaaS remaining performance obligation or RPO, you'll see it referred to as. This is a track of the full contract value of the SaaS contracts that we sign and represents the future revenue that's committed on signed contracts for SaaS. An example is we sell a five-year SaaS deal at CAD 1 million a year. That results in CAD 5 million of SaaS backlog when we sign that contract. We keep track of this number as a leading indicator of future SaaS revenue and future SaaS revenue growth. We're pleased with what happened with our SaaS backlog in fiscal 2021, which grew to CAD 65.7 million. That's up 26% compared to the same time last year. Talked about revenue and revenue component parts and growth. This slide number 39 is revenue by region. We split up revenue here by Canada, by the United States, and by all other geographies. All other geographies for us is primarily driven by the European geography. There's also a little bit of Southeast Asia in there and a little bit of Australia in there for sure. see that our Canadian business, while still very important, and we have a lot of key Canadian-based customers that have been with us for a long time. As we grow, the Canadian portion of our revenue becomes smaller and smaller, and the U.S. component part of our revenue is growing here and growing pretty significantly. In fiscal 2021, it represented 63% of our total revenue. Still with a pretty significant portion of that, what I call international, non-Canada, non-U.S. revenue, which was 16.5% of our 2021 revenue. Moving to slide 41. This is headcount. You've seen how revenue's been growing, and we're supporting that revenue growth by increasing our headcount. This slide shows in fiscal 2021, sort of our total headcount of 655 people that are primarily in Canada, in the United States, and also in Europe. The vast majority of those team members are in our services and delivery organization, including our cloud operations and our platform teams that runs our software and that we sell in a SaaS model. You can see some growth in sales and marketing headcount here in the current year against you hiring into growth. You see some increase also in R&D and R&D headcounts. Overall, our headcount in fiscal 2021 grew by 27%, and that's helping us to sustain and grow in the future. Slide number 41 is profit and historical view of profit and loss from operations. You can see the nice up and to the right trajectory of our profitability over the last number of years. In fiscal 2021, we had CAD 16.2 million of adjusted EBITDA, which was substantial growth from 2020 when we had CAD 10.3 million. We also had CAD 10.7 million of profit from operations in fiscal 2021, up from CAD 4.7 million in fiscal 2020. Just for a moment on the 2019 dip there, which we talked about in 2019, we mentioned last year as well, but it looks like an oddity in the graphic here, and it is. There was some things happened, just by recall, that brought that number down. We had a couple of acquisitions in that year, so we had sort of one-time acquisition costs in that number. We were investing in sales and marketing and development. We had a marketing rebranding campaign, one-time costs that were going on in that year, which have since borne a lot of fruit. Finally, that's the year where we actually started our shift to SaaS. Upfront recording of perpetual license revenue was starting to turn into prospective recurring SaaS revenue streams that are worth revenue recorded prospectively over contract periods. We're really happy with the profit trajectory in 2021 and very strong performance. Moving on to slide 42. This is a balance sheet view, and what I want to highlight here is just the solid cash position and liquidity. We closed out the year with almost CAD 46 million of cash equivalents, and short-term investments, and at about CAD 9.6 million of long-term debt. Plenty of liquidity, plenty of room to grow, plenty of resources to do what we need to do, and a strong balance sheet that provides encouragement to our prospects that are looking at us as a long-term software provider. Moving along to slide number 43. I have one more slide after this. This is a slide that shows a trajectory of free cash flow over the past number of years. For free cash flow here, I'm starting with net cash from operating activities, so that's an IFRS measure, which in 2021 was CAD 19.1 million, up from CAD 10 million in the prior year. Then I'm adjusting some things from that cash from operating activities to arrive at free cash flow. I'm taking out what we spend on CapEx, like property and equipment or software. I'm taking out what we spend in CapEx on capitalized development cost. I'm taking out lease obligations and lease obligation interest, so IFRS 16 accounting, to land at something that's called free cash flow here. You can see in 2021, that number grew significantly to CAD 16 million from just under CAD 7 million in the prior fiscal year, which was up again from CAD 3.3 million in 2019. A good trajectory on cash flow generation in the business and something that we look forward to continuing in the future. Slide 44, and I guess I have 1 more slide after this. Slide 44 is a historical view of our stock price performance, and it's comparing what CAD 100 of Tecsys stock invested April 30th would have grown to today and comparing that to the S&P/TSX Composite Index growth. You can see the trajectory there, and in particular, over the course of the last couple of years, as our SaaS strategy and execution has really come to the fore. You can see that our stock price has performed really quite well against the composite index. Finally, the last slide, and I'll just spend a second on this, we just released our Q1 results, and Peter will speak to those a little bit. One of the things that you'll see in our financial statements and in our MD&A, our Management's Discussion and Analysis of results of operations, you'll see some changes in this quarter. We decided to split out in the face of the financial statement, our revenue lines, in a slightly different way, really to highlight where the key areas are in our business and where the key growth areas are in our business. You're going to see SaaS revenue showing up as a separate line on the face of our P&L in our Q1 results and prospectively. You're going to see that we realigned some of our, what we were previously calling proprietary products, which was a combination of proprietary license and proprietary technology hardware. You're going to see that now we're going to be talking about license, and we're going to be talking about hardware. We're going to put proprietary license and third-party license in this license revenue line. We're going to put proprietary hardware and third-party hardware in this hardware line. We believe it's going to create more clarity in terms of the revenue flows in our business and create easier comparability to other sort of software companies as well. Again, highlighting, in particular, the importance of SaaS to our business, to our business model, and to our future growth. With that, I will turn the call back over to Peter to discuss the Q1 2022 results. Great. Thank you, Mark. Again, I apologize that we haven't been able to put up a slide on Q1 results. We needed to wait to make sure the wire was out before we talked Q1 results. Hence you just have this very blank-looking slide. We're very happy with our Q1 results. SaaS revenue is up by 47% over Q1 of last year. Total annual recurring revenue is up 9%. Total revenue was CAD 33.2 million, up 18% compared to CAD 28.1 million last year. All of those numbers, when you're comparing against last year, by the way, got hammered by the swing in currency. SaaS revenue, for instance, rising 47%, would've been a significantly higher number, I think 57, if I remember rightly, percent. Yep If it was constant currency. Total revenue that was up 18% would have in fact been up 25%, had the US dollar not weakened so much. Overall very strong numbers. Bookings in Q1 was down compared to Q1 of last year. Q1 last year was actually an exceptionally strong Q1. It was one of the weird things of the pandemic that sort of a bunch of the Q3 and Q4 business at the start of the pandemic slipped into Q1, so we had a tough comparable there. Q1 SaaS bookings came in this year at about CAD 1.1 million. In that number, we're pretty excited with what we signed. We added two new hospital networks in the quarter. Which, honestly, that's an exceptional Q1 to add two new hospital networks in the first quarter. They tend to have a very long tail on them in terms of future revenue possibilities within them, as we've talked about, sort of that opportunity in the base to expand within these networks. We also added several new accounts in Europe. Some really great wins in there. Overall, adjusted EBITDA, CAD 2.5 million, down 30% compared to CAD 3.5 million last year. Again, mainly a currency effect. You'll see more detail on that in what we've released. Currency actually dropped our top-line revenue by about CAD 2.3 million. As a result, dropped our earnings by about CAD 1.4 million. The overall drop in EBITDA by CAD 1 million bucks from last year was not unexpected given the currency exchange and the fact that we are investing so much in growth. We've continued to grow sales and marketing substantially. We're growing our capacity in professional services and in cloud operations. All of that is necessary, of course, when you're looking at a constant currency total growth of 25%. Overall, we're delighted with the quarter. We are also looking forward to see what happens in Q2. We come into Q2 with a very strong pipeline. The sales team has had a very busy August. I'm not sure I've seen our sales team working that hard in August in quite a while. It's good to see, and we're looking forward to see how this year works out. That's a very quick sort of off-the-cuff summary there. We will have, if you go to slide 47, you'll see there we have our conference call at 1:00 P.M., where we'll do a more detailed and scripted walkthrough of our Q1 results at that point in time. I will now turn it back over to Dave, to deal with any questions. Great. Thank you, Peter. Thank you, Mark. We now go to slide 48, which is the last one in the deck. I ask that all attendees who would like to ask a question use the instant messaging feature with the virtual interface to do so. We will answer as many questions as time permits. When asking your question, please state your name, the entity you represent, if any, and confirm that you are a registered shareholder, duly appointed proxy holder, or a guest. Please limit your questions to topics relating to today's subject matter and keep your questions short and to the point. We will now give attendees a moment to type in their questions. By the way, for each question that we answer, we will summarize the question and read out loud the name of the person who asked such question, and if applicable, the entity such person represents. We would like to remind you that questions which were already answered or that are redundant or repetitive will not be published or answered. Give about 20 more seconds for any questions. All right. I confirm that we have not received any questions from shareholders, so we must have covered everything. This is all for today, folks. Thank you to everyone who attended our virtual meeting, and all the best. Bye for now. This concludes today's meeting. You may now disconnect and have a pleasant day.