Sylogist earns $2.5-million in fiscal Q2 Sylogist earns $2.5-million in fiscal Q2
2018-05-01 08:06 ET - News Release
Mr. Jim Wilson reports
SYLOGIST Q2 FISCAL 2018 RESULTS: EARNINGS/SHARE UP 38%, ADJUSTED EBITDA/SHARE INCREASED 33% AS REVENUE ROSE 15%; DIVIDEND DECLARED.
Sylogist Ltd. has released its unaudited financial results for the second quarter of the 2018 fiscal year ended March 31, 2018.
Second quarter 2018 summary (comparisons are with the second quarter of 2017, unless otherwise noted):
- Revenues were $9.3-million, compared with $8.1-million, an increase of 15 per cent.
- Gross profit margins improved to 75 per cent from 71 per cent.
- Reported earnings were $2.5-million compared with $1.8-million in the second quarter of 2017, an increase of 37 per cent.
- Earnings per fully diluted common share increased 38 per cent to 11 cents per share, up from eight cents per share.
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $4.4-million, an increase of 32 per cent, or 20 cents per fully diluted common share, up 33 per cent.
- Adjusted EBITDA margin was 48 per cent, compared with 41 per cent.
- Cash from operating activities (before non-cash changes in working capital) totalled $4.5-million (20 cents per share), up from $3.1-million (14 cents per share) in the second quarter of 2017.
- The company paid regular dividends to shareholders totalling $1.8-million during the quarter.
- Adjusted working capital was $32.1-million, a decrease of 3 per cent, or $1.44 per share.
- Combined tax pools at the end of the second quarter 2018 were approximately $16.6-million.
- For the quarter ended March 31, 2018, the company repurchased 119,700 common shares at an average price of $10.01 for a total cost of $1.2-million.
- The company's board of directors has approved a quarterly dividend of eight cents per common share for shareholders of record as at May 31, 2018, to be paid on June 13, 2018, which is treated as an eligible dividend under the Income Tax Act (Canada).
First half of fiscal 2018 (comparisons are with the first half of fiscal 2017, unless otherwise noted):
- Revenues were $18.1-million, compared with $16-million, up 14 per cent.
- Gross profit margins improved to 75 per cent of revenue compared with 68 per cent.
- Reported earnings were $5.5-million (25 cents per share) compared with $3.1-million (14 cents per share).
- Adjusted EBITDA was $8.7-million (39 cents per share), compared with $6.1-million (27 cents per share).
- Adjusted EBITDA margin was 48 per cent, compared with 38 per cent.
- Cash from operating activities (before non-cash changes in working capital) was $8.7-million (39 cents per share) compared with $5.1-million (22 cents per share), an increase of 71 per cent and a per-share increase of 77 per cent.
- The company paid regular and special dividends to shareholders totalling $4.7-million during the first half of fiscal 2018.
Jim Wilson, president and chief executive officer of Sylogist, commented: "In the second quarter, we continued to see growth in revenue while profitability was leveraged through the benefits of our improved efficiencies. Operating metrics demonstrated improvement with the gross profit margin increasing to 75 per cent of revenue and the adjusted EBITDA margin improving to 48 per cent of revenue. Higher revenues (up 15 per cent) resulted from a greater contribution from the educational sector related to our U.S. acquisition of K12 Enterprise and Sunpac Systems earlier in the fiscal year.
"At the end of the second quarter we released the educational market version of our flagship product, Navigator K-12 Education, ahead of schedule. Our development team married the human resources and school administration intellectual property acquired in our October, 2017, acquisition with the latest version of our Navigator public sector foundation. Navigator K-12 Education was further enhanced through integrating our analytics and field connect solutions into a single comprehensive offering. Navigator K-12 Education is the leading platform available for the educational market based on Microsoft application-level technology. In the first half of fiscal 2018, we have widened our technology lead in the public sector vertical markets we serve while simultaneously providing material improvements in efficiencies and financial performance. We are well positioned for continued success," concluded Mr. Wilson.