Sign up USA
Proactive Investors - Run By Investors For Investors
Why invest in ISV?

Information Services hails increased net income and revenue in strong set of 2017 numbers

Chief executive Jeff Stusek also noted the information management specialist made significant acquisitions last year.
ISC is in the business of information

Public data tech group Information Services Corp (TSE:ISV) shares nudged higher in Toronto as it hailed a strong 2017, which saw increased revenue, EBITDA (underlying earnings) and net income.

Chief executive Jeff Stusek also noted the information management specialist had last year made significant acquisitions, consistent with its strategy of acquiring companies with competencies or operations in its industry.

"Our subsidiaries ESC and ERS are delivering organic growth, while our Registries business continues to demonstrate its resilience in the face of economic challenge," he said.

The board has declared a quarterly cash dividend of 20 cents per Class A limited voting share to be paid on or before  April 15 this year to shareholders of record as of March 31.

The numbers...

In the year to end December, the firm posted net income of C$27.8mln, or C$1.58 per diluted share compared to C$15.5mln and C$0.88 per diluted share in 2016.

That was on revenues of C$93.6mln compared to C$88.4mln in 2016 - an increase of 5.9%.

EBITDA (earnings before interest, taxes, depreciation and amortisation) for the year came in at C$30mln compared to C$29.5mln in 2016, up 1.7%.

The EBITDA margin was 32.1% compared to 33.4% in 2016.

Notably, during the year, the firm completed three acquisitions - They are Enterprise Registry Solutions Ltd (ERS) in January, Alliance Online Solutions in June and AVS in December.

By way of comparison and to underline the firm's recent progress, net income in the fourth quarter came in at C$18.8mln, compared to C$2.9mln in the fourth quarter of 2016.

Revenue by segment for the year was registries: C$74.9mln , up 1.3%, with land registry revenue at $54.8mln, down 0.2% versus 2016.

The personal property registry  was stable at $10.0mln, up 0.1%compared to 2016, while the corporate registry revenue was $10.1mln, up 11.7% compared to 2016.

Services segment revenue was $14.9mln, up 9.2% compared to 2016.

Looking to 2018...

Looking ahead, the firm said the acquisition of automation software group AVS in December last year, with a high revenue, lower margin profile, changed ISC's consolidated revenue and EBITDA margin profile compared to previous years.

Because of that, ISC currently expects total revenue in 2018 of between C$124mln and C$130mln, with an EBITDA margin of between 24% and 26%.

Capital expenditures are now expected to be in the range between C$4mln and C$6mln, and will be funded through operating cash flow, the company added.

In general, ISV  added it expects the performance of its Registries segment in 2018 to be in line with that of 2017, despite recent changes to mortgage rules and an increase in overnight lending rates.

In the services segment, it expects to see further customer growth in the Financial Support Services revenue category, it added.

Shares in Toronto added 2.10% to C$17.51.

View full ISV profile View Profile

ISC Timeline

Related Articles

integrated electronics
January 31 2018
Cross-selling initiatives generated sales of £2.3mln in the final quarter of 2017, which was nearly double the level of the prior year
Chief executive Jeff Stusek also noted the information management specialist made significant acquisitions last year.
Picture of pound notes
November 21 2017
Media buying has been rocked by regular reports of widespread kickbacks throughout the industry.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use