/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Feb. 11, 2019 /CNW/ - Sylogist Ltd. (TSXV: SYZ) ("Sylogist" or the "Company"), a provider of enterprise information management solutions, is pleased to announce its unaudited financial results for the first quarter of the 2019 fiscal year, ended December 31, 2018.
Q1 2019 Summary (Comparisons are to Q1 2018, unless otherwise noted)
- Revenues were $9.4 million, compared to $8.8 million, an increase of 7%.
- Gross profit margin was 76%, equivalent to Q1 2018 and up from 71% in the last quarter of fiscal 2018.
- Reported earnings were $2.6 million compared to $3 million in Q1 2018.
- Earnings per fully diluted common share was $0.12 per share, compared to $0.13 per share.
- Adjusted EBITDA(1) was $4.5 million, an increase of 7%, or $0.20 per fully diluted common share, up 5%.
- Adjusted EBITDA Margin(1) was 48%, the equivalent to Q1 2018.
- Cash from operating activities (before non-cash changes in working capital) totalled $4.6 million ($0.21 per share), up from $4.2 million ($0.19 per share) in Q1 2018.
- The Company paid regular dividends to shareholders totalling $2.1 million during the quarter.
- Adjusted Working Capital(1) was $31.9 million, an increase of 12%, or $1.45 per share, compared to $1.26 per share in Q1 2018.
- Combined tax pools at the end of the first quarter 2019 were approximately $14.8 million (CAD).
- For the quarter ended December 31, 2018, the Company repurchased 191,900 common shares at an average price of $12.81 for a total cost of $2.5 million.
- The Company's Board of Directors has approved a quarterly dividend of $0.095 per common share for shareholders of record as at February 28, 2019 to be paid on March 13, 2019, which is to be treated as an eligible dividend under the Income Tax Act (Canada).
Jim Wilson, President & Chief Executive Officer of Sylogist, commented, "Our results in the first quarter were well aligned with our fiscal 2019 plan. The Company's revenues, along with Adjusted EBITDA, grew 7% over the comparative period a year ago. These increases were achieved while maintaining the Company's highly profitable operations. Gross profit and EBITDA margins of 76% and 48%, respectively, remained consistent to that of the prior year. Improved financial results were achieved while our professional services staff was focused on the Company's major, bi-annual customer conference held in Atlanta during the Q1 reporting period. Very positive feedback in attendance and customer interactions at the conference bode well for positive returns on our half million-dollar investment expensed in the period. In addition, we continue to invest in our products and resources especially those focused on the US education market, as we foresee tremendous growth opportunities in that sector.
In keeping with our practice of distributing a portion of profits to shareholders, the board of directors of Sylogist has approved a quarterly dividend of $0.095", concluded Mr. Wilson.
Sylogist is a software company that, through strategic acquisitions, investments and operations management, provides comprehensive, mission-critical enterprise resource planning ("ERP") solutions, including fund accounting, grant management and payroll to public service organizations. Sylogist's public service customers include local governments, nonprofit organizations, non-governmental organizations, educational institutions and government agencies, as well as public compliance driven and funded. Our Company delivers highly scalable, multi-language, multi-currency software solutions, which serve the needs of an international clientele.
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 news 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. Forward-looking information in this news release includes statements with respect to positive returns on the Company's bi-annual customer conference, the Company's growth opportunities in the US education sector and the quarterly dividend for shareholders of record as of February 28, 2019 to be paid on March 13, 2019. 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. Additional information regarding some of these risks, uncertainties and other factors may be found under in the management's discussion and analysis for the period ended December 31, 2018, and other documents available on the Company's profile at www.sedar.com. 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.
Non-GAAP Financial Measures
(1) Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Working Capital 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 EBITDA Margin refers to Adjusted EBITDA as a percentage of revenue. Adjusted Working Capital is defined as current assets less current liabilities adjusted for deferred revenue.
This news release makes reference to certain non-GAAP measures. These measures are not recognized measures under Canadian GAAP, do not have a standardized meaning prescribed by Canadian GAAP and are therefore may not be comparable to similar measures presented by other issuers. These measures are provided as additional information to complement measures under GAAP by providing further understanding of the Company's expected results of operations from management's perspective. Accordingly, such measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under Canadian GAAP.
Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Working Capital are provided to investors as alternative methods for assessing the Company's operating results in a manner that is focused on the Company's ongoing operations and to provide a more consistent basis for comparison between periods. These measures should not be construed as alternatives to net profit (loss) or cash flow from operating activities determined in accordance with GAAP as an indicator of the Company's performance.
Each non-GAAP measure is reconciled to its most direct comparable GAAP measure within the "Results of Operations" and "Liquidity and Capital Resources" sections of the Company's Management's Discussion & Analysis of Financial Condition and Results of Operations for the three-month periods ended December 31, 2018 and 2017.
- 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 -
SOURCE Sylogist Ltd.
For further information: Jim Wilson, President and CEO; or Xavier Shorter, Vice President, Finance and CFO; or Andre Drouillard, Vice President, Business Development and Investor Relations, Sylogist Ltd., (403) 266-4808