Proactiveinvestors Australia RSI International Systems Inc. https://www.proactiveinvestors.com.au Proactiveinvestors Australia RSI International Systems Inc. RSS feed en Thu, 18 Jul 2019 02:41:42 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - RSI International Systems says it's back towards operating free cash flow positive ]]> https://www.proactiveinvestors.com.au/companies/news/197392/rsi-international-systems-says-it-s-back-towards-operating-free-cash-flow-positive-197392.html RSI International Systems Inc (CVE:RSY), which has developed a web-based property management system, told investors it was back on track to become operating free cash flow positive, as it posted first quarter numbers.

"We are pleased to resume our progress in becoming operating free cash flow positive after getting off trend in third quarter and fourth quarter last year," said Tim Major, the group's president and chief executive.

"With the payments resulting from a customer billing dispute and the costs of significantly reducing our monthly office space fully provided for in fourth quarter 2017, two major cost hurdles are behind us, and this will help our financial performance going forward."

Major added: "We had some difficult decisions to make in 2017, and in particular towards the end of the year.

"We believe that the company is now set to reap the financial benefits of these and other decisions, as we continue to improve the company's financial health and best position ourselves to deliver value to our shareholders."

The firm  sold 33 new PMS to properties in the first compared to 41 in the same period last year and customer revenue was C$1.174mln compared to C$1.324mln in the same period in 2017, a decrease of 11%.

The net loss was C$151,853, compared to a loss  of C$69,206 for Q1 2017.

In order to realise its near term goal of being free cash flow positive, RSI confirmed again that it is implementing cost rationalization strategies as well as ways to increase the speed of software development.

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Mon, 21 May 2018 10:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197392/rsi-international-systems-says-it-s-back-towards-operating-free-cash-flow-positive-197392.html
<![CDATA[News - RSI International Systems settles billing dispute with client as restructuring continues ]]> https://www.proactiveinvestors.com.au/companies/news/191847/rsi-international-systems-settles-billing-dispute-with-client-as-restructuring-continues-191847.html Toronto-listed RSI International Systems Inc (CVE:RSY) revealed it had settled a previously reported billing dispute with one of its clients as it continues to make restructuring and efficiency improvements.

As reported in November last year, RSI, which supplies a property management system, or 'PMS', to the hotels and the hospitality sector, was in the process of negotiating a billing dispute with one customer.

READ: RSI International Systems making progress towards free cash flow positive despite billing dispute

That customer represents around 5% of RSI's hotel property portfolio, RSI said.

"Although we feel our case was strong, the prospect of a protracted and time-consuming litigation with uncertain consequences led us to conclude that settlement was the best course of action, allowing us to direct our full focus on improving our business," Tim Major, RSI's president and  chief executive, told investors.

The company boss said the firm had worked hard and was "extremely disappointed" that it hadn't been able to renew its business relationship with this customer.

"However, as a result of careful planning, the loss of this account will not change our focus of becoming free cash flow positive and continuing to progress on bringing to market new incremental innovations and features."

The client will now not be required to pay for services from May 1 last year to May 15 this year, and as of that date, RSI will cease to provide services.

RSI will also reimburse the customer a total of C$130,000 in instalments over 12 months, the hotel software group said.

READ: RSI International Systems looking to scale up with its innovative hotel property management system

In terms of the RSI financial statements,  it has been fully providing for the affected billings in its allowance for doubtful accounts, it said.

Billings to the client between May 1 last year and the end of 2017, will not be included as revenue in the company's 2017 fiscal year, but will be offset by the elimination of the allowance, so that earnings data will be unaffected.

"Given the payment agreed to in this settlement and the timing of some of the restructuring and efficiency improvements, the company expects that it will have a period of off-trend cash flow performance until most of the benefits of the company's restructuring take effect by the middle of 2018," it added.

Shares closed at C$0.12 in Toronto on Friday.

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Mon, 19 Feb 2018 08:14:00 +1100 https://www.proactiveinvestors.com.au/companies/news/191847/rsi-international-systems-settles-billing-dispute-with-client-as-restructuring-continues-191847.html
<![CDATA[News - RSI International Systems proud of progress but not done yet ]]> https://www.proactiveinvestors.com.au/companies/news/187456/rsi-international-systems-proud-of-progress-but-not-done-yet-187456.html Toronto-listed RSI International Systems Inc (CVE:RSY) told investors it was still making progress towards the goal of becoming operating free cash flow positive following its third quarter results.

Net loss of the quarter was C$50,489 versus a net loss of C$148,327 in the same quarter of 2016 - a 66% decrease, or in other words, improvement.

Earlier this month, it said it was negotiating a billing dispute with one of its customers, representing around $35,000 per month in revenues.

"Although negotiations are continuing and the company continues to provide services to the customer, the company elected to make a bad debt provision of $173,928 in its Q3 financial statements, related to unpaid invoices from the customer," it said in today's statement.

The group supplies a property management system, or 'PMS' to hotels and the hospitality industry, which can manage the cycle of a hotel's business.

"Although we ran into some headwinds in the third-quarter with a customer billing dispute, we've reduced our operating free cash flow deficit by almost $675,000 in the first nine months of 2017 versus the same period in 2016, while still continuing to grow revenue during that period. We are very proud of this progress, but we are not done yet," said president and chief executive Tim Major.

"As 2017 draws to a close and we look forward to 2018, we've already enacted further measures to make our company more efficient, such as significantly reducing our office space to evolve to a more efficient working environment comprised of co-working and virtual spaces that meet the needs of tech talent and tech demands," Major added.

"We've also just launched Profile Match & Merge, the first offering in our incremental product strategy, which is designed to provide new, value-added tools that are complementary to our core RoomKeyPMS product, in order to improve our current relationships and broaden our overall market appeal".

Shares were unchanged on the day at C$0.16 each.

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Fri, 17 Nov 2017 11:22:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187456/rsi-international-systems-proud-of-progress-but-not-done-yet-187456.html
<![CDATA[News - RSI International Systems making progress towards free cash flow positive despite billing dispute ]]> https://www.proactiveinvestors.com.au/companies/news/186813/rsi-international-systems-making-progress-towards-free-cash-flow-positive-despite-billing-dispute-186813.html Toronto-listed RSI International Systems Inc (CVE:RSY)  said it was still making progress towards its goal of becoming operating free cash flow positive - as it revealed it  was negotiating a billing dispute with one customer.

The group supplies a property management system, or 'PMS' to hotels and the hospitality industry, which can manage the cycle of a hotel's business.

READ THE BIG PIC - RSI International Systems looking to scale up with its innovative hotel property management system WATCH - Hotels without headaches - RSI International's Tim Major explains how

The firm said it expects that "while the dispute is outstanding, the timing of the company's progress toward operating free cash flow positive" as discussed on August at the time of the second quarter results, will be affected.

Revenues from the affected client total approximately $35,000 per month, it added.

"Given that we have continued to restructure and make ongoing expense reductions, we are still making progress towards our goal of becoming operating free cash flow positive," said RSI president and chief executive Tim Major.

"However, given the timing of some of the expense reductions, we expect that we will have a period of off-trend cash flow performance until some of the restructuring benefits take effect early next year."

He added: "As an example of the progress in expense reductions we are making, at the beginning of February, 2018, we will be maximizing the efficiency and motivation of our team by evolving our workplace to co-working and virtual office spaces.

 "An added benefit of this change will be to significantly reduce our office costs, thereby creating monthly working capital for reinvestment purposes by approximately $25,000 to $30,000.

"When combined with other expense reductions, these types of ongoing savings have made our business much more efficient and better able to deal with adverse events while still allowing us to pursue our strategic plan."

Shares were unchanged at 16 cents.

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Mon, 06 Nov 2017 09:16:00 +1100 https://www.proactiveinvestors.com.au/companies/news/186813/rsi-international-systems-making-progress-towards-free-cash-flow-positive-despite-billing-dispute-186813.html
<![CDATA[News - RSI International Systems says becoming operating free cash flow positive remains a priority ]]> https://www.proactiveinvestors.com.au/companies/news/182615/rsi-international-systems-says-becoming-operating-free-cash-flow-positive-remains-a-priority-182615.html Toronto-listed RSI International Systems Inc (CVE:RSY) highlighted the progress it's made in its goal to become operating cash flow positive in the light of its second quarter results.

The group supplies a property management system, or 'PMS' to hotels and the hospitality industry.

READ THE BIG PIC HERE - RSI International Systems looking to scale up with its innovative hotel property management system WATCH - Hotels without headaches - RSI International's Tim Major explains how

The technology can manage the cycle of a hotel's business -  all the way from the initial online booking, to backroom administration, accounts and housekeeping.

Operating free cash flows are those that come from business activities not related to working capital management and financing.

Notably the firm has reduced its operating free cash flow deficit from negative $519,039 in the second quarter of 2016 to a deficit of $50,371 in the latest, second quarter this year.

RSI president and chief executive Tim Major said: "Although becoming operating free cash flow positive continues to be our top, near term priority, we are also working on a strategy to increase our recurring revenue through the introduction of incremental offerings that are complementary to our core RoomKeyPMS product.

"Our goal in this regard is to provide new, value-added tools to our existing and new customers, thereby improving our current relationships and broadening our overall market appeal”.

Highlights from the second quarter results included a 14% increase in customer revenue to $1.320mln compared to $1.162mln in the same period last year, and underlying earnings of $91,350 versus a loss of $242,397 in the second quarter of 2016.

The firm's customer retention rate improved from 92% in the second quarter of 2016 to 93% in the second quarter of 2017.

The net loss for the period was $52,856 narrowed considerably from a net loss of $329,854 in the same period of 2016

The firm sold 63 new PMS properties during the first six months of 2017 compared to 58 in 2016 and this year's new sales have resulted in higher contracted revenue on a per sale basis.

"Management expects revenue to continue to grow during 2017 through growth in PMS sales along with increased transactional, training, service, and partner revenues," it added.

Shares gained 5.56% in Toronto to stand at C$0.19 each.

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Thu, 17 Aug 2017 09:39:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182615/rsi-international-systems-says-becoming-operating-free-cash-flow-positive-remains-a-priority-182615.html
<![CDATA[Media files - Hotels without headaches - RSI International's Tim Major explains how ]]> https://www.proactiveinvestors.com.au/companies/stocktube/7794/hotels-without-headaches-rsi-international-s-tim-major-explains-how-7794.html Fri, 14 Jul 2017 16:20:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/7794/hotels-without-headaches-rsi-international-s-tim-major-explains-how-7794.html <![CDATA[News - RSI International Systems looking to scale up with its innovative hotel property management system ]]> https://www.proactiveinvestors.com.au/companies/news/180910/rsi-international-systems-looking-to-scale-up-with-its-innovative-hotel-property-management-system-180910.html With so much of our daily lives now dominated by online software aided delivery, it's hardly surprising that the hotel sector is also embracing this kind of technology.

A property management system, or 'PMS', lies at the core of managing the cycle of a hotel's business -  all the way from the initial online booking, to backroom administration, accounts and housekeeping.

RoomKeyPMS is the product at the heart of Toronto-listed RSI International Systems Inc's (CVE:RSY) (“RSI”) business, and significantly, it was among the first cloud-provided software in the hotel marketplace.

Established technology...

The firm's now well established technology has been around since around 2003   and has continuously evolved.

It is aimed at making all aspects of life for hotels easier, reducing costs and increasing their profitability.

New man at the helm of RSI, Tim Major, who became chief executive in April this year, is now busy on what he calls a "incremental innovation strategy".

This should increase both the number of clients on the books and the average deal size, as well as, scale up the business.

"I think we’re at a pivot point in the hotel industry, especially for independent hotels, in that they've been running a lot of legacy, antiquated systems which are not taking into account the shift of consumers going more self-serve activities - the Ubers and the Lifts..," he explains...

".. you're also seeing a lot of  demand in general travel. This is creating a lot of opportunities for providers like us."

All aspects of operation managed..

The majority of RSI's clients are the independents single and chain properties rather than the larger flag chains, and Major explains how the software can manage all aspects of the hotel operation.

Users can also connect via the system to booking websites like Booking.com and Expedia, so all aspects of the customer experience are covered.

One testimonial on the firm's website from the Executive Hotels chain outlines how RoomKey has enhanced the group's efficiency and its labour force, which has translated to the "bottom line".

It also has allowed the group to put the system on their housekeeping staff's tablets, so every aspect of work can be recorded by all staff.

Being cloud-based means hotels can download SaaS updates every few months, which Major explains improves security and regulatory adherence for clients, and also reduces costs.

The payment model is a subscription one, where hotels sign up on a 36 month basis and payment is taken every three months. Recurring revenues for RSI are approximately 90%.

The RoomKeyPMS system is used by over 800 hotels and handles over 20mln client transactions annually. Major has ambitious plans to take the group forward and expand these numbers, saying that of the 60,000 hotels in North America, 30,000 of them fit into its target market.

 

With an emphasis on adding features to the technology and increasing deal size, he says the next stage will be to try and increase wallet share by providing customers with incremental value-added features and applications.

Notably, the company is also moving rapidly towards becoming free cash flow positive, which, Major says, should happen in the near future.

In summary, the RSI investment case is that this innovative business is growing, has high recurring revenue streams, and is nearing free cash flow positive.

The hotel technology market is a fragmented one, offering product extension as well as merger and acquisition (M&A) opportunities, which would increase market share and scale up RSI yet further.

This should certainly be an exciting stock to watch in coming months.

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Fri, 14 Jul 2017 09:07:00 +1000 https://www.proactiveinvestors.com.au/companies/news/180910/rsi-international-systems-looking-to-scale-up-with-its-innovative-hotel-property-management-system-180910.html
<![CDATA[News - Ernest W. Moody Revocable Trust buys 6mln RSI International Systems shares ]]> https://www.proactiveinvestors.com.au/companies/news/180869/ernest-w-moody-revocable-trust-buys-6mln-rsi-international-systems-shares-180869.html Hotel-focused tech group RSI International Systems Inc (TSX-V: RSY) said The Ernest W. Moody Revocable Trust had completed its acquisition of the 6mln shares in the company from Skywire Media Inc.

As a result of the purchase, the trust now owns around 16.3mln shares of the issuer, or about 44.61% of the issuer’s capital.

The two entities - Skywire and the trust- are related parties and there is no change in beneficial ownership for RSI International.

RSI’s RoomKey property management system is a cloud-hosted software aimed at making managing a hotel easier.

It is used by over 800 hotel properties and handles over 20 million client transactions annually.

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Thu, 13 Jul 2017 15:52:00 +1000 https://www.proactiveinvestors.com.au/companies/news/180869/ernest-w-moody-revocable-trust-buys-6mln-rsi-international-systems-shares-180869.html