Sylogist Announces First Quarter Fiscal 2017 Results Revenue of $7.8 million, Adjusted EBITDA of $2.7 million, Dividend Declared
08:00 EST Wednesday, February 22, 2017
CALGARY, ALBERTA--(Marketwired - Feb. 22, 2017)
Q1 2017 Summary (Comparisons are to Q1 2016, unless otherwise noted)
- * Revenues were $7.8 million, compared to $8.4 million in first quarter last year.
- * Adjusted EBITDA(1) was $2.7 million ($0.12 per share), compared to $3.2 million ($0.13 per share) in Q1 2016.
- * Cash from operating activities (before non-cash changes in working capital) was $2 million, compared to $2.9 million in the first quarter last year.
- * Adjusted Earnings(1) were $2.5 million ($0.11 per share).
- * Cash as at December 31, 2016 totalled $25.3 million. Sylogist has no debt.
- * Quarterly dividend of $0.07 to be paid on March 15th to shareholders of record on March 3, 2017, which is treated as an eligible dividend under the Income Tax Act (Canada).
- * There are currently 22.7 million Sylogist shares outstanding.
Jim Wilson, President and CEO of the Company stated "that as we have previously announced, fiscal 2017 is a transformational year for Sylogist. With the consolidation of our Canadian and International Public Sector businesses under one banner, "Serenic Software", and with our future development efforts and marketing direction now based significantly on our recent global Public Sector agreement with Microsoft, we are establishing a foundation for significant growth in both traditional and new markets.
During the first quarter of fiscal 2017, we held two major, well-attended customer conferences, one in Canada and the second in the United States. Several hundred customers attended these conferences, where we unveiled our future direction in product development. Since then, our development efforts have been proceeding well, including the announced April 2017 international launch of our Business Intelligence and Analytics ("BI/Analytics") platform for Serenic Software's flagship Public Sector ERP system, "Navigator". Navigator is based on Microsoft's largest installed ERP foundation, Dynamics NAV. The BI/Analytics deployment in the Canadian marketplace over the past year has been very well received, with nearly full customer uptake. The BI/Analytics platform will be part of the core Navigator offering commencing this year. Other product extensions based on this platform are planned for future releases".
Mr. Wilson continued, "In Q1 we focused on and invested in product development and marketing. Our two user conferences knowingly consumed many of our professional services staff and their capacity, requiring their energy and enthusiasm as they shared and demonstrated our development path and new offerings. Additionally, during the quarter, we stepped-up our development efforts and investment to meet our international go-to-market plans. In spite of these underlying internal expenditures in marketing development and professional services talent, we were pleased our overall expenses remained consistent with expenditures in Q1 2016. Further, we have only begun seeing the benefits of reduced royalty rates to Microsoft, the full benefit of which won't begin to accrue until the commencement of fiscal 2018. In parallel to our expanded marketing and development activities, we completed the installation of a new and comprehensive in-house ERP/CRM system across Sylogist's businesses and varied locations, to meet our future global growth and efficiency requirements. It was a busy quarter and we thank our team for their enthusiastic commitment to change and embracing the opportunities that lie ahead".
"With continued strong financial performance, the board of directors of Sylogist has approved a quarterly dividend of $0.07", concluded Mr. Wilson.
Other Q1 2017 Highlights
- * Adjusted Working Capital(1) (net of deferred revenue) was $28.2 million or $1.24 per share as at December 31, 2016.
- * Combined tax pools at the end of the first quarter of the fiscal 2017 were approximately $25.3 million (CDN).
- * The Company paid regular and special dividends to shareholders totaling $2.7 million or $0.12 per share in the first quarter of fiscal 2017.
- * For the first quarter of the fiscal 2017 the Company repurchased a total of 158,800 of its common shares at an average price of $10.61 for a total cost of $1.7 million.
- * Beginning October 1, 2017, Sylogist aggregated its individual business units with similar Public Sector characteristics, in the single reportable segment "Public Sector".