CALGARY, Alberta, Aug. 15, 2017 (GLOBE NEWSWIRE) -- Sylogist Ltd. (TSX-V:SYZ) (“Sylogist” or the “Company”), a provider of enterprise information management solutions, is pleased to announce its unaudited financial results for the third quarter of the fiscal year, ended June 30, 2017.
Q3 2017 Summary (Comparisons are to Q3 2016, unless otherwise noted)
- Reported earnings increased 33% to $2.2 million ($0.10 per share, 43% higher), up from $1.7 million ($0.07 per share) in Q3 2016.
- Gross profit margins improved to 73% of revenue compared to 68% in Q3 2016.
- Adjusted EBITDA(1) was $4.1 million, an increase of 8%, or $0.18 per fully diluted share, up 13%.
- Adjusted EBITDA(1) margin was 46%, compared to 39% in Q3 2016.
- Adjusted Earnings(1) were $3.5 million, an increase of 18%, or $0.15 per diluted share, up 15%.
- Revenues were $8.9 million, compared to $9.6 million in third quarter last year.
- Cash from operating activities (before non-cash changes in working capital) was $3.8 million, compared to $3.7 million in the third quarter last year.
- The Company paid regular dividends to shareholders totalling $1.6 million during the quarter.
- Combined tax pools at the end of the third quarter of fiscal 2017 stood at approximately $19.3 million (CDN).
- Cash as at June 30, 2017 totalled $29.9 million. Sylogist has no debt.
- There are currently 22.5 million Sylogist common shares outstanding.
- The Company’s Board of Directors has approved a quarterly dividend of $0.07 per common share for shareholders of record as at August 31, 2017 to be paid on September 13, 2017, which is treated as an eligible dividend under the Income Tax Act (Canada).
9 months of fiscal 2017(Comparisons are to the first nine months of fiscal 2016, unless otherwise noted)
- Reported earnings for the nine months ended June 30, 2017 were $5.3 million, an increase of 11%, or $0.23 per share, up 15%.
- Gross profit margins improved to 70% of revenue compared to 67% in the comparable period last fiscal year.
- Adjusted EBITDA(1) was $10.2 million ($0.45 per share), compared to $10.9 million ($0.46 per share) in the first nine months of fiscal 2016.
- Adjusted EBITDA(1) margin was 41%, compared to 39% in the first nine months of fiscal 2016.
- Adjusted Earnings(1) were $8.9 million ($0.39 per share) compared to $8.8 million ($0.37 per share), a per share increase of 5%.
- Revenues were $24.9 million, compared to $27.8 million in the first nine months of 2016.
- Cash from operating activities (before non-cash changes in working capital) was $8.9 million compared to $10.1 million.
- The Company paid regular and special dividends to shareholders totalling $5.9 million during the first nine months of fiscal 2017.
Jim Wilson, President & Chief Executive Officer of Sylogist commented, “In the third quarter, we accelerated benefits from the initiatives we presented in our November 2016 press release. Our Gross Profit Margin increased to 73%, up from 68% in the third quarter of 2016, and to 70% for the nine months ended June 30, 2017, compared to 67% for the same period last year. Our Adjusted EBITDA for the third quarter also increased on a gross and per share basis, up 8% to $4.1 million and 18% to $0.18 per fully diluted share. Our Adjusted EBITDA margin increased for both the three and nine months ended June 30, 2017, as compared to the same periods in 2016, to 46% from 39% in the third quarter, and to 41% from 39% for the comparable nine month period. With our focus on profitability to our shareholders, we saw material increases in reported per share earnings for the three and nine months ended June 30, 2017, up 43% to 10 cents per share for the third quarter 2017 compared to the third quarter 2016 and up 15% to 23 cents per share compared to the comparable nine month period last year.
This continues to be a transformational year for us as we evolve our foundation for future growth in partnership with Microsoft. In fiscal 2016, higher revenue was achieved through one-time project sales. In fiscal 2017 quarterly revenues have increased sequentially as recurring subscription revenue and channel partner sales are now major contributors to growth. Both these revenue sources provide leverage to our business and improve gross profit margins. This trend aligns with our strategic plan.
With the Company’s continued strong financial performance, the board of directors of Sylogist has approved a quarterly dividend of $0.07,” concluded Mr. Wilson.
Sylogist is a technology innovation company that, 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 and Adjusted Earnings 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).
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.
This press release is not for distribution to United States Newswire Services or for dissemination in the United States.
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-
CONTACT: For further information contact: Jim Wilson, President and CEO or Xavier Shorter, Vice President, Finance and CFO Sylogist Ltd. (403) 266-4808