REGINA, Nov. 12, 2014 /CNW/ -
Information Services Corporation (TSX:ISV) ("ISC" or "the
Company"), Saskatchewan's
exclusive provider of key registry information services, today
reported on the Company's financial results for the third quarter
ended September 30, 2014.
Highlights of ISC's Q3 2014 financial results
- Revenue was $21.3 million for the
three months ended September 30,
2014, an increase of $0.5
million or 2.1 per cent, compared to $20.8 million for the three months ended
September 30, 2013. Although all
revenue lines increased, the majority of increase came from the
Land Titles Registry. Revenue excludes the Vital Statistics
Registry, which is treated as a discontinued operation in
2013.
- EBITDA (earnings before interest, taxes, depreciation and
amortization) for the third quarter of 2014 was $9.7 million compared to $9.5 million in the third quarter of 2013, an
increase of 1.7 per cent. ISC's EBITDA margin for the third quarter
of 2014 was 45.4 per cent comparable to the 45.6 per cent in the
third quarter of 2013.
- Adjusted EBITDA was $9.7 million
for the quarter compared to $9.6
million in the same quarter last year, with ISC generating
an Adjusted EBITDA margin of 45.4 per cent for the quarter compared
to 45.9 per cent in the third quarter of 2013. As no adjustments
were made for the initial public offering ("IPO") or discontinued
operations in the third quarter 2014, Adjusted EBITDA mirrors
EBITDA for the period.
- Net income for the three months ended September 30, 2014 was $6.2 million, or $0.36 per share. In the third quarter last year,
net income was $6.0 million, or
$0.35 per share.
Management's Discussion of ISC's Summary Quarterly Financial
Results
(Thousands of CAD
dollars,
except earnings
per share and where noted)
|
Three months ended
September 30,
|
2014
|
2013
|
|
|
|
Revenue
|
|
|
Land Titles Registry,
Land Surveys Directory and Geomatics
|
$ 16,608
|
$ 16,286
|
Personal Property
Registry
|
2,742
|
2,614
|
Corporate
Registry
|
1,927
|
1,924
|
Other
|
1
|
8
|
Total
Revenue1
|
$ 21,278
|
$ 20,832
|
|
|
|
Operating, general
and administrative expenses
|
11,613
|
11,268
|
|
|
|
EBITDA2
|
9,665
|
9,504
|
EBITDA
Margin2 (% of revenue)
|
45.4%
|
45.6%
|
Adjusted
EBITDA2
|
$ 9,665
|
$ 9,564
|
Adjusted EBITDA
Margin2
|
45.4%
|
45.9%
|
Net Income and total
comprehensive income
|
6,239
|
6,015
|
Earnings per share,
basic and diluted3
|
0.36
|
0.35
|
Earnings per share
excluding income tax expense and discontinued operations, basic and
diluted3
|
0.48
|
0.48
|
Free cash
flow2
|
$ 7,622
|
$ 9,091
|
1.
|
Revenue does not
include the Vital Statistics Registry, which is reflected as a
discontinued operation.
|
|
|
2.
|
EBITDA, EBITDA
Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Free cash flow
are not recognized as a measure under IFRS and do not have a
standardized meaning prescribed by IFRS. See "Non-IFRS Measures" in
Management's Discussion & Analysis for the third quarter ended
September 30, 2014.
|
|
|
3.
|
The calculation of
earnings per share is based on net income after tax and the
weighted average number of shares outstanding during the
period.
|
- Revenue for Land Titles Registry, Land Surveys Directory and
Geomatics (the "Land Registry") was $16.6
million for the three months ended September 30, 2014, an increase of $0.3 million, or 2.0 per cent, compared to the
three months ended September 30,
2013.
Transaction volumes, specific to land titles, increased 1.8 per
cent for the three months ended September
30, 2014 compared to the same period last year.
- Revenue for the Personal Property Registry (the "PPR") for the
three months ended September 30, 2014
was $2.7 million, which represents an
increase of 4.9 per cent from the same period in 2013.
Overall transaction volumes were up slightly for the third quarter
2014 by 1.8 per cent compared to the same period last year.
However, the main driver of revenue for this registry – personal
property security registration set-ups, has shown a minor decrease
in volume, but an increase in revenue. Since the price per
registration varies based on the nature and term of the security
agreement this indicates more long-term registrations were
completed in the third quarter of 2014 as compared to the same
quarter of 2013.
- Revenue for the Corporate Registry for the three months ended
September 30, 2014 remained stable at
$1.9 million, when compared the three
months ended September 30, 2013.
Revenue from the incorporation of new businesses, included in
registrations, declined by 2.8 per cent in the same period, however
this was offset by an increase in revenue of 1.3 per cent from the
filing of annual returns.
Overall transaction volumes were up 13.7 per cent over the three
months ended September 30, 2014
compared to the same period last year. This increase can be
attributed to the elimination of free searches for certain entities
during the second quarter of 2014 which resulted in higher
revenue-generating search volumes this quarter.
- Operating, general and administrative expenses were
$11.6 million for the three months
ended September 30, 2014 compared to
$11.3 million for the three months
ended September 30, 2013, an increase
of 3.1 per cent.
- Depreciation and amortization remained stable at $1.2 million for the three months ended
September 30, 2014 compared to the
same period of 2013. The decline was due to certain projects
reaching a fully amortized state in 2013 and only moderate
expenditure on capital to date in 2014.
- Net income and total comprehensive income for the three months
ended September 30, 2014 was
$6.2 million, or $0.36 per share, compared to $6.0 million, or $0.35 per share for the same period in 2013.
By way of comparison, net income, excluding income tax expense and
discontinued operations for the three months ended September 30, 2014 was $8.5 million, or $0.48 per share, compared to $8.4 million, or $0.48 per share for the same period of 2013.
- As of September 30, 2014, the
Company held $32.2 million in cash,
an increase of $8.4 million from
September 30, 2013.
Note to Readers:
This news release provides a general summary of Information
Services Corporation's results for the third quarters ended
September 30, 2013 and 2014.
Readers are encouraged to download the Company's complete financial
disclosures. Links to ISC's financial statements and related notes
and Management's Discussion and Analysis for the period are
available on ISC's website in the Investor section of the site at
http://isc.investorroom.com/index.php?s=63. All figures are in
Canadian dollars unless otherwise noted.
Copies can also be obtained at www.sedar.com by searching
Information Services Corporation's profile or by contacting
Information Services Corporation at investor.relations@isc.ca
Conference Call And Webcast
The Company is hosting a conference call and webcast at
10:00 a.m. Saskatchewan Time;
11:00 a.m. Eastern Time on
November 13, 2014 to discuss these
results. Dial-in numbers for the conference call are:
1-416-764-8688 or toll-free at 1-888-390-0546.
A live audiocast of the conference call is available at the
following link:
http://www.newswire.ca/en/webcast/detail/1425078/1583048
About ISC
ISC is a provider of registry and information services to the
Province of Saskatchewan. The
Company is the exclusive provider of the Land Titles Registry, Land
Surveys Directory, Personal Property Registry and Corporate
Registry in Saskatchewan, which
are key supporters of economic activity in the province.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information within
the meaning of applicable Canadian securities legislation,
including certain assumptions with respect to the Saskatchewan economy, consumer confidence,
interest rates, level of unemployment, inflation, real estate
market in Saskatchewan, claim
liabilities, income taxes, our ability to attract and retain
skilled staff, employee future benefits, goodwill and intangibles
are material factors in preparing forward-looking statements and
management's expectations. 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. Although
ISC believes the forward-looking information contained in this
release is based upon reasonable assumptions, readers are cautioned
not to place undue reliance on forward-looking information as it is
inherently uncertain and no assurance can be given that the
expectations reflected in such information will prove to be
correct. Many factors and risks could cause our actual results to
differ materially from those expressed or implied by
forward-looking information including those detailed in ISC's
Annual Information Form, dated March 19,
2014, ISC's unaudited condensed Consolidated Financial
Statements and Notes and Management's Discussion and Analysis for
the quarter ended September 30, 2014
as well as other documents filed by ISC with Canadian securities
regulators through SEDAR (www.sedar.com) from time to time.
Investors and others should carefully consider the above-noted
factors and risks and other uncertainties and potential events. 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.
SOURCE Information Services Corporation