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CALGARY, May 16, 2013 /CNW/ - Sylogist Ltd. (TSXV:SYZ) ("Sylogist" or
the "Company"), a provider of enterprise application solutions to
public and private sector customers, announces its unaudited financial
results for the second quarter ended March 31, 2013.
In Q2 of Fiscal 2013:
Revenues were $2.7 million, 18% higher than the quarterly average in
EBITDA(1) was $1.5 million ($0.08 per share), a 60% increase when compared to a
quarterly average of $0.9 million in the previous year.
Cash flow from operations was $1.4 million, a 52% improvement over the
fiscal 2012 quarterly average.
Net income before tax increased to $1.3 million or $0.07 per fully
diluted share, a 77% gain over the quarterly average of $ 0.7 million
in fiscal 2012.
Gross profit margins increased from 71% to 80% of revenue compared to
In the first 6 months of Fiscal 2013:
Revenues were $5.5 million, 19% higher than the six month average in
EBITDA(1) was $3 million ($0.16 per share), a 62% increase when compared to a six
month average of $1.9 million in the previous year.
Cash flow from operations was $3.1 million, a 66% improvement over the
fiscal 2012 six month average.
Net income before tax increased to $2.6 million or $0.14 per fully
diluted share, a 75% gain over the six month average of $1.5 million in
Gross profit margins increased from 71% to 79% of revenue compared to
Cash and short-term investments as at March 31, 2013 totalled $15
million or $0.78 per share.
Working capital (net of deferred revenue) was $16 million or $0.83 per
Federal tax pools at the end of Q2 fiscal 2013 stood at $3.5 million.
"Profit in the first six months of fiscal 2013 nearly matched the profit
for the entire 12 month period in fiscal 2012. The second quarter
results continued the strong increases achieved in the first quarter.
With the pending acquisition of Epic Data, we foresee further material
increases in financial performance commencing in our fourth quarter. We
expect these results to exceed the trend established in the first six
months of fiscal 2013." stated Jim Wilson, Chairman, President and CEO.
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
(1)EBITDA and Cash Flow from Operations are a non-IFRS financial
measure: earnings before stock based compensation, interest, income
taxes, depreciation and amortization.
(2) Per share calculations are based on the weighted average number of
shares outstanding at March 31, 2013.
Full financial statements together with Management's Discussion and
Analysis are available on SEDAR. 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 news release contains forward-looking statements relating to the
future operations and profitability of the Company and other statements
that are not historical facts. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate", "expects",
"believe", "will", "intends", "plans" and similar expressions. Any
statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking
statements. More particularly and without limitation, this press
release contains forward-looking information concerning: the
anticipated benefits of the acquisition of Epic Data International Ltd.
("Epic Data") to Sylogist. Such forward-looking information is
provided for the purpose of providing information about management's
current expectations and plans relating to the future. Investors are
cautioned that reliance on such information may not be appropriate for
other purposes, such as making investment decisions. In respect of the
forward-looking information and statements concerning the anticipated
benefits and completion of the proposed acquisition of Epic Data,
Sylogist has provided such in reliance on certain assumptions that it
believes are reasonable at this time, including assumptions as to the
ability of Epic Data to receive, in a timely manner, the necessary
regulatory, court, shareholder, stock exchange and other third party
approvals; the ability of each of Sylogist and Epic Data to satisfy, in
a timely manner, the other conditions to the closing of the
Transaction; and expectations and assumptions concerning, among other
things: commodity prices and interest and foreign exchange rates;
planned synergies, capital efficiencies and cost-savings; applicable
tax laws; the sufficiency of budgeted capital expenditures in carrying
out planned activities; the availability and cost of labour and
services; the success of growth projects; future operating costs; that
counterparties to material agreements will continue to perform in a
timely manner; that there are no unforeseen events preventing the
performance of contracts; and that there are no unforeseen material
construction or other costs related to current growth projects or
current operations. Circumstances and assumptions may change for a
number of reasons and, accordingly, readers should not place undue
reliance on the forward-looking information contained in this press
Since forward-looking information addresses future events and
conditions, such information by its very nature involves inherent risks
and uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to the risks associated with the
industries in which each of Sylogist and Epic Data operate in general
such as: costs and expenses; commodity price, interest rate and
exchange rate fluctuations; competition; failure to realize the
anticipated benefits of the acquisition and to successfully integrate
each of Sylogist and Epic Data; ability to access sufficient capital
from internal and external sources; and changes in legislation,
including but not limited to tax laws. Risks and uncertainties
inherent in the nature of the acquisition include the failure of Epic
Data to obtain necessary shareholder, regulatory, court and other third
party approvals, or to otherwise satisfy the conditions to the
acquisition, in a timely manner, or at all. Failure to so obtain such
approvals, or the failure of each of Sylogist and Epic Data to
otherwise satisfy the conditions to the acquisition, may result in the
acquisition not being completed on the proposed terms, or at all.
Readers are cautioned that the foregoing list of factors is not
exhaustive. Forward-looking statements contained in this news release
are expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made as
of the date of this news release, and Sylogist does not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by Canadian
- 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-
SOURCE: Sylogist Ltd.
For further information:
Jim Wilson, President and CEO