REGINA, Saskatchewan, Jan. 29, 2020 (GLOBE NEWSWIRE) — Information Services Corporation (TSX:ISV) (“ISC®”, “we” or the “Company”) today announced its outlook and annual guidance for 2020.
Highlights – Consolidated Annual Guidance 2020Revenue is expected to be between $135.0 million and $139.0 millionEarnings before interest, taxes, depreciation and amortization (“EBITDA”)¹ is expected to be between $37.0 million and $41.0 millionEBITDA margin¹ is expected to be between 26.0 per cent and 30.0 per centOutlookISC has built a strong, sustainable and growing business underpinned by our two largest segments, Registry Operations and Services. These two segments deliver consistency and growth, respectively, while our Technology Solutions segment focuses to become a meaningful contributor to our consolidated results in the years to come.In 2020, we expect to deliver continued organic growth, driven by our Services segment, through the expansion of offerings to existing customers as well as the acquisition of new customers throughout the year. The Company will also explore appropriate acquisition targets which are complementary to or add value to existing lines of business. The diversification of our business remains a key part of our strategy, which we will continue to pursue. We also expect to spend between $2.0 million and $4.0 million on business as usual capital expenditures.Although we expect Saskatchewan’s economy to remain flat in 2020 as it pertains to our registries, Registry Operations will continue to be a strong contributor to results in 2020, due largely to the high level of operational efficiency and the resulting strong cash flow this business generates on a consistent basis.In Technology Solutions, as projects continue to move into the implementation and completion phases in 2020, we expect to recognize increased revenue and profitability on those contracts. Many of those will move into maintenance and we will continue to pursue new contracts in both the registry and regulatory sectors.Note¹EBITDA and EBITDA margin are not recognized as measures under International Financial Reporting Standards (“IFRS”) and do not have a standardized meaning prescribed by IFRS and, therefore, they may not be comparable to similar measures reported by other corporations. Please refer to section 8 for “Non-IFRS Financial Measures” and “Financial Measures and Key Performance Indicators” in Management’s Discussion and Analysis for the three and nine months ended September 30, 2019.About ISC®Headquartered in Canada, ISC® is the leading provider of registry and information management services for public data and records. Throughout our history, we have delivered value to our clients by providing solutions to manage, secure and administer information through our Registry Operations, Services and Technology Solutions segments. ISC® is focused on sustaining its core business while pursuing new growth opportunities. The Class A Shares of ISC® trade on the Toronto Stock Exchange under the symbol ISV.Cautionary Note Regarding Forward-Looking InformationThis news release includes certain forward-looking information within the meaning of applicable Canadian securities legislation including, without limitation, expectations with respect to revenue, EBITDA, EBITDA margin and capital expenditures. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include risks relating to changes in economic, market and business conditions, reliance on key customers and licences, dependence on key projects and clients, securing new business and fixed-price contracts, identification of viable growth opportunities, implementation of our growth strategy, competition and other risks detailed from time to time in the filings made by the Company including those detailed in ISC’s Annual Information Form for the year ended December 31, 2018 and ISC’s unaudited Condensed Consolidated Interim Financial Statements and Notes and Management’s Discussion and Analysis for the third quarter ended September 30, 2019, copies of which are filed on SEDAR at www.sedar.com.The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, ISC® assumes no obligation to update or revise such information to reflect new events or circumstances.Investor ContactJonathan Hackshaw
Director, Investor Relations & Capital Markets
Toll Free: 1-855-341-8363 in North America or 1-306-798-1137
investor.relations@isc.ca
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