logo-loader

ISC improves free cash flow in "in-line" second quarter

Last updated: 12:36 04 Aug 2017 EDT, First published: 07:36 04 Aug 2017 EDT

Saskatchewan
The bulk of ISC's revenue is linked to registry transaction volumes and values driven by economic conditions in Saskatchewan

Information Services Corp (TSE:ISV) continues to expect 2017's performance to be on a par with 2016's, after an in-line second quarter.

The bulk of ISC's revenue is linked to registry transaction volumes and values driven by economic conditions in Saskatchewan, and the second quarter saw a bit of a dip in revenue from its Land Registry unit that was only partially offset by increases in revenue from the Personal Property Registry and the Corporate Registry.

Total revenue eased to C$24.65mln from C$24.67mln in the corresponding quarter of 2017.

Adjusted underlying earnings, or EBITDA, eased to C$9.55mln from C$11.13mln the year before, resulting in the adjusted EBITDA margin sliding to 38.8% from 45.1%.

Net income retreated to C$4.73mln from C$6.58mln, which was equivalent to 27 cents (2016: 37 cents).

Free cash flow improved to C$7.48mln from C$6.30mln in the corresponding period of 2016.

As at June 30, 2017, the company held C$31.6 million in cash, compared to C$33.5 million as at December 31, 2016, a decrease of C$1.9 million.

Total debt rose to C$32.3mln at the end of June from C$23.4mln at the end of 2016.

“We are pleased that our core registry business remained stable and that our consolidated performance was in line with our expectations," said Jeff Stusek, president and chief executive officer of ISC.

“Despite the recent improvement in the outlook for the Canadian economy, we continue to anticipate a flat year ahead of us and remain confident in the stability of our business. With the first half of 2017 already behind us, we continue to expect our consolidated annual EBITDA margin to be between 31% and 33%. However, we expect capital expenditures to be lower in 2017, in the range of $3.5 to $5.0 million, as we focus on integration and other operational activities,” Stusek said.

“We will continue to pursue our strategies for growth while ensuring the stability of our core business," he concluded.

ISC Achieves Landmark Year with Record Revenue and Growth Plans

ISC CEO Shawn Peters joined Steve Darling from Proactive to to discuss the company’s financial results for the fourth quarter and year ended December 31, 2023. Peters highlighted the significant growth ISC experienced in 2023, with revenue reaching a record $214.5 million, representing a 13%...

2 weeks ago