CALGARY, ALBERTA–(Marketwired – Feb. 22, 2017) –

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Sylogist Ltd. (TSX VENTURE:SYZ) (“Sylogist” or the “Company”), a provider of enterprise information management solutions to Public Sector customers, is pleased to announce its unaudited financial results for the first quarter of the fiscal year, ended December 31, 2016.

In Q1 2017 Summary (Comparisons are to Q1 2016, unless otherwise noted)

• Revenues were $7.8 million, compared to $8.4 million in first quarter last year.
• Adjusted EBITDA⁽¹⁾ was $2.7 million ($0.12 per share), compared to $3.2 million ($0.13 per share) in Q1 2016.
• Cash from operating activities (before non-cash changes in working capital) was $2 million, compared to $2.9 million in the first quarter last year.
• Adjusted Earnings⁽¹⁾ were $2.5 million ($0.11 per share).
• Cash as at December 31, 2016 totalled $25.3 million. Sylogist has no debt.
• Quarterly dividend of $0.07 to be paid on March 15^th to shareholders of record on March 3, 2017, which is treated as an eligible dividend under the Income Tax Act (Canada).
• There are currently 22.7 million Sylogist shares outstanding.

Jim Wilson, President and CEO of the Company stated “that as we have previously announced, fiscal 2017 is a transformational year for Sylogist. With the consolidation of our Canadian and International Public Sector businesses under one banner, “Serenic Software”, and with our future development efforts and marketing direction now based significantly on our recent global Public Sector agreement with Microsoft, we are establishing a foundation for significant growth in both traditional and new markets.

During the first quarter of fiscal 2017, we held two major, well-attended customer conferences, one in Canada and the second in the United States. Several hundred customers attended these conferences, where we unveiled our future direction in product development. Since then, our development efforts have been proceeding well, including the announced April 2017 international launch of our Business Intelligence and Analytics (“BI/Analytics”) platform for Serenic Software’s flagship Public Sector ERP system, “Navigator”. Navigator is based on Microsoft’s largest installed ERP foundation, Dynamics NAV. The BI/Analytics deployment in the Canadian marketplace over the past year has been very well received, with nearly full customer uptake. The BI/Analytics platform will be part of the core Navigator offering commencing this year. Other product extensions based on this platform are planned for future releases”.

Mr. Wilson continued, “In Q1 we focused on and invested in product development and marketing. Our two user conferences knowingly consumed many of our professional services staff and their capacity, requiring their energy and enthusiasm as they shared and demonstrated our development path and new offerings. Additionally, during the quarter, we stepped-up our development efforts and investment to meet our international go-to-market plans. In spite of these underlying internal expenditures in marketing development and professional services talent, we were pleased our overall expenses remained consistent with expenditures in Q1 2016. Further, we have only begun seeing the benefits of reduced royalty rates to Microsoft, the full benefit of which won’t begin to accrue until the commencement of fiscal 2018. In parallel to our expanded marketing and development activities, we completed the installation of a new and comprehensive in-house ERP/CRM system across Sylogist’s businesses and varied locations, to meet our future global growth and efficiency requirements. It was a busy quarter and we thank our team for their enthusiastic commitment to change and embracing the opportunities that lie ahead”.

“With continued strong financial performance, the board of directors of Sylogist has approved a quarterly dividend of $0.07”, concluded Mr. Wilson.

Other Q1 2017 Highlights

• Adjusted Working Capital⁽¹⁾ (net of deferred revenue) was $28.2 million or $1.24 per share as at December 31, 2016.
• Combined tax pools at the end of the first quarter of the fiscal 2017 were approximately $25.3 million (CDN).
• The Company paid regular and special dividends to shareholders totaling $2.7 million or $0.12 per share in the first quarter of fiscal 2017.
• For the first quarter of the fiscal 2017 the Company repurchased a total of 158,800 of its common shares at an average price of $10.61 for a total cost of $1.7 million.
• Beginning October 1, 2017, Sylogist aggregated its individual business units with similar Public Sector characteristics, in the single reportable segment “Public Sector”.

About Sylogist

Sylogist is a technology innovation company which, through strategic acquisitions, investments and operations management, provides intellectual property solutions to a wide range of Public Sector customers. We are an industry-leading publisher of mission-critical software products that satisfy the unique and sophisticated functionality requirements of Public Sector entities, nonprofit organizations, educational institutions, government agencies as well as public compliance driven and funded businesses. Our Company delivers highly scalable, multi-language, multi-currency software solutions, which serve the needs of an international clientele.

(1) Adjusted EBITDA, Adjusted Earnings and Adjusted Working Capital are non-GAAP financial measures: Adjusted EBITDA is defined as: profit for the period before stock based compensation, foreign exchange gains or losses, interest expense, bargain purchase price on acquisition, income taxes, acquisition-related costs, depreciation and amortization. Adjusted Earnings is defined as profit for the period adjusted for certain non-cash expenses (income), such as amortization of intangible assets, stock based compensation, deferred income taxes as well as foreign exchange gains or losses and certain other expenses (income). Adjusted Working Capital is defined as current assets less current liabilities adjusted for deferred revenue.

Full financial statements together with Management’s Discussion and Analysis are available on SEDAR at www.sedar.com.

The Company’s stock is traded on the TSX Venture Exchange under the symbol SYZ. Information about Sylogist can be found at http://www.sylogist.com.

Forward-looking Statements

Certain statements in this news release may be forward-looking statements within the meaning of applicable securities laws and regulations. These statements typically use words such as expect, believe, estimate, project, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the beliefs and plans and other forward-looking expectations expressed herein will not be achieved or will prove inaccurate. Although Sylogist believes that the expectations reflected in these forward-looking statements are reasonable, it provides no assurance that these expectations will prove to have been correct. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to Sylogist’s key organizational changes and investments, its key relationships and its products potentially reaching broader markets. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include Sylogist’s ability to attract and retain customers and to realize on its investments. Although Sylogist believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. Sylogist disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Certain information set out herein may be considered as “financial outlook” within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Sylogist’s reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Xavier Shorter
Vice President, Finance and CFO
Sylogist Ltd.
(403) 266-4808
www.sylogist.com