CALGARY, ALBERTA–(Marketwired – May 10, 2016) –
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 and private sector customers, is pleased to announce its unaudited financial results for the second quarter of the 2016 fiscal year, ended March 31, 2016.
Q2 2016 Highlights:
(Comparisons are to Q2 2015, unless otherwise noted)
- Revenues increased 40% (33% organic, 7% currency related) to $9.8 million from $7 million. Revenue growth was driven by software license sales (up 108%), recurring subscription/maintenance (up 13%) and professional services (up 91%).
- Adjusted EBITDA(1) increased 43% to $4 million from $2.8 million, or $0.17 per fully diluted share versus $0.11, a 53% increase.
- Cash from operating activities (before non-cash changes in working capital) was $3.5 million compared to $2.9 million.
- Adjusted Earnings(1) were $3.1 million ($0.13 per share) compared with $2.8 million ($0.11 per share), an increase of 11% and a per share increase of 18%. Reported earnings for the second quarter of fiscal 2016 were $1.6 million ($0.07 per share) compared to $0.9 million ($0.04 per share).
- Cash as at March 31, 2016 totalled $33.6 million. Sylogist has no debt.
- Adjusted Working Capital(1) (net of deferred revenue) was $34.3 million or $1.48 per share at March 31, 2016.
- Combined tax pools at the end of the second quarter of fiscal 2016 stood at approximately $32 million (CDN).
- The Company paid regular dividends to shareholders totaling $1.5 million during the second quarter of fiscal 2016.
- During Q2 2016, the Company repurchased 492,200 of its common shares at an average price of $7.94 for a total cost of $3.9 million.
In the first 6 months of fiscal 2016:
(Comparisons are to the first six months of fiscal 2015, unless otherwise noted)
- Revenues increased 38% (30% organic, 8% currency related) to $18.1 million from $13.1 million. Strong revenue growth was driven by software license sales (up 116%), recurring subscription/maintenance (up 14%) and professional services (up 77%).
- Adjusted EBITDA(1) increased 44% to $7.3 million from $5.1 million, or $0.31 per fully diluted share versus $0.20, a 52% increase.
- Cash from operating activities (before non-cash changes in working capital) was $6.4 million compared to $5 million.
- Adjusted Earnings(1) were $5.9 million ($0.25 per share) compared with $5 million ($0.20 per share), an increase of 18% and a per fully diluted share increase of 24%. Reported earnings for the six months ended March 31, 2016 were $3.1 million ($0.13 per share) compared to $0.7 million ($0.03 per share).
“Meaningful organic growth produced robust activity and results in the second quarter and first half of fiscal 2016. Revenues and Adjusted EBITDA were markedly better than the previous periods, both in gross and per share terms. The Company’s Trailing Twelve Months (TTM) Revenue and Adjusted EBITDA for the period ended March 31, 2016 were $32.4 million and $11.9 million ($0.49 per share), respectively. We are particularly encouraged by the strong license revenue growth this fiscal year. Growing license revenue serves as a catalyst to increased professional services revenues and future improvements in recurring support revenues. Higher Adjusted EBITDA demonstrates the operating income leverage that results from higher revenues and cost management initiatives.
While we have experienced tremendous operational growth in the last 18 months, what has become equally compelling in that time is the broader scope of opportunities opening up to our business platforms, particularly the public sector, in North America and abroad. As we have said previously, we are focused on growth that matters, which is the intrinsic value of our shares. Managing that growth necessarily means prudently allocating our capital. Having successfully integrated the operations of Serenic and having invested in a Company-wide internal systems upgrade, we are now more poised to accelerate growth than at any time in our history.
Sylogist maintained its share repurchase program as the Company’s shares continued to trade at a large discount relative to our market peers. There continues to be good value in buying our own stock. Since launching our normal course issuer bid in July 2015, we have repurchased 1,811,700 shares at an average price of $7.19. Reducing the number of shares outstanding through our issuer bid purchases to date has increased per share operating income by 7%. The Company intends to renew its Normal Course Issuer Bid when it expires on May 20, 2016. We intend to continue to purchase our shares for as long as they remain an attractive value compared with other opportunities,” stated Jim Wilson, Chairman, President and CEO.
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 and private sector customers.
| (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 www.sylogist.com.
This press release is not for distribution to United States Newswire Services or for dissemination in the United States.
Forward-looking Statements
This news release contains forward-looking information which is not comprised of historical facts. These statements typically use words such as prospects, believe, estimate, forecast, project, expect, 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 forecasts, projections and other forward-looking statements 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 investments, its products potentially reaching broader markets, and acquisitions giving the Company greater market presence and opportunities. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information includes Sylogist’s ability to integrate acquisitions and realize operating efficiencies, and its ability to attract customers and 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.
Neither the 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.
Jim Wilson, President and CEO, or
Brian Grassby, Vice President, Finance and CFO
(403) 266-4808
www.sylogist.com