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CALGARY, April 30, 2018 /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 second quarter of the 2018 fiscal year, ended March 31, 2018.
Q2 2018 Summary (Comparisons are to Q2 2017, unless otherwise noted)
- Revenues were $9.3 million, compared to $8.1 million, an
increase of 15%.
- Gross profit margins improved to 75% from 71%.
- Reported earnings were $2.5 million compared to $1.8 million in
Q2 2017, an increase of 37%.
- Earnings per fully diluted common share increased 38% to $0.11 per share, up from
$0.08 per share.
- Adjusted EBITDA(1) was $4.4 million, an increase of 32%, or $0.20 per fully diluted common share, up 33%.
- Adjusted EBITDA Margin(1) was 48%, compared to 41%.
- Cash from operating activities (before non-cash changes in working capital) totalled $4.5
million ($0.20 per share), up from $3.1 million
($0.14 per share) in Q2 2017.
- The Company paid regular dividends to shareholders totalling $1.8 million during the
quarter.
- Adjusted Working Capital(1) was $32.1 million, a decrease of 3%, or $1.44 per share.
- Combined tax pools at the end of the second quarter 2018 were approximately $16.6 million
(CAD).
- 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 $0.08 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 to the first half of fiscal 2017, unless otherwise
noted)
- Revenues were $18.1 million, compared to $16 million, up
14%.
- Gross profit margins improved to 75% of revenue compared to 68%.
- Reported earnings were $5.5 million ($0.25 per share) compared
to $3.1 million ($0.14 per share).
- Adjusted EBITDA(1) was $8.7 million ($0.39 per
share), compared to $6.1 million ($0.27 per share).
- Adjusted EBITDA Margin (1) was 48%, compared to 38%.
- Cash from operating activities (before non-cash changes in working capital) was $8.7 million
($0.39 per share) compared to $5.1 million ($0.22 per share), an increase of 71% and a per share increase of 77%.
- The Company paid regular and special dividends to shareholders totalling $4.7 million during
the first half of fiscal 2018.
Jim Wilson, President & 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% of revenue and the
Adjusted EBITDA margin improving to 48% of revenue. Higher revenues (up 15%) 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.
About Sylogist
Sylogist is a technology innovation company that, through strategic acquisitions, investments and operations management,
provides intellectual property solutions to a wide range of Public Sector customers. We are an industry-leading publisher
of mission-critical software products that satisfy the unique and sophisticated functionality requirements of Public Sector
entities, including nonprofit organizations, educational institutions and government agencies, as well as public compliance
driven and funded businesses. 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.
Forward-looking Statements
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 the Company's payment of dividend to shareholders of record
as at May 31, 2018 to be paid on June 13, 2018 and the Company being
well positioned for continued success. 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 quarter ended March 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.
- 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.
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