MARKHAM, ON , Dec. 17, 2020 /CNW/ - Enghouse Systems Limited (TSX: ENGH) today announced its fourth quarter (unaudited) and year-end financial results for the period ended October 31, 2020 . All the financial information is in Canadian dollars unless otherwise indicated.
Key financial and operational highlights for the three months ended October 31, 2020 (compared to the same period in 2019) are as follows:
- Revenue grew 10.6% to $120.9 million ;
- Results from operating activities increased 31.2% to $42.7 million ;
- Net income increased 19.0% to $29.4 million ;
- Adjusted EBITDA increased 37.1% to $46.6 million ;
- Cash flows from operating activities excluding changes in working capital increased 41.8% to $48.0 million .
Key financial and operational highlights for the year ended October 31, 2020 (compared to the same period in 2019) are as follows:
- Revenue grew 30.6% to $503.8 million ;
- Results from operating activities increased 44.7% to $162.0 million ;
- Net income increased 39.2% to $98.6 million or $1.77 per diluted share;
- Adjusted EBITDA increased 53.0% to $176.8 million ;
- Cash flows from operating activities excluding changes in working capital increased 50.6% to $178.5 million ;
- Cash, cash equivalents and short-term investments were $251.8 million , an increase from $150.3 million at October 31, 2019 , which was achieved after making payments of $27.0 million for dividends and $43.9 million for acquisitions;
In both the quarter and year, the Company experienced growth from internal sources and from acquisitions. Internal growth includes the expansion of the acquired businesses, particularly Vidyo, since acquisition.
COVID-19 had an unprecedented effect on business during fiscal 2020. While the full impact of the pandemic remains to be seen, it will continue to change the way Enghouse conducts business and interacts with customers and technology. The pandemic led to increased demand for our remote-work and visual computing solutions leading to a surge in revenue, particularly in our second quarter at the outbreak of the pandemic.
Reflecting upon the year, Enghouse is proud to have been listed in the Toronto Stock Exchange's TSX30 for 2020 list that tallies the top-performing stocks over the past three years citing our 185% growth in share price between June 30, 2017 and June 30, 2020 (Source: https://money.tmx.com/en/tsx30 ).
Although the world is changing at an unprecedented pace, bringing innovation to how we conduct business, the Company's core values remain unchanged. Going forward, Enghouse continues to seek accretive acquisitions to grow its revenue and further expand its product suite and geographic reach, while maintaining its commitment to profitable growth in accordance with its disciplined business model. Management remains focused on running the business consistent with its value for money philosophy that it believes provides shareholder value in the long-term.
Quarterly Dividend:
Today, the Board of Directors approved the Company's eligible quarterly dividend of $0.135 per common share, payable on February 26, 2021 to shareholders of record at the close of business on February 12, 2021 .
Special Dividend:
Today, with our substantial cash balance, no debt and significant operating cash flow, the Board of Directors also approved a special dividend of $1 .50 per common share, payable on February 16, 2021 to shareholders of record at the close of business on January 15, 2021 . With low interest rates and the ability to acquire additional funding, as needed, the Company believes that after returning these funds to shareholders it continues to have the necessary funding available for its acquisition activities.
Enghouse Systems Limited
Financial Highlights
(in thousands of Canadian dollars)
|
For the period ended October 31
|
Three months (unaudited)
|
|
Twelve months
|
|
2020
|
|
2019
|
Var ($)
|
Var (%)
|
|
|
2020
|
|
2019
|
Var ($)
|
Var (%)
|
|
Revenue
|
$
|
120,898
|
$
|
109,331
|
11,567
|
10.6
|
|
$
|
503,778
|
$
|
385,853
|
117,925
|
30.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct costs
|
|
33,261
|
|
32,382
|
879
|
2.7
|
|
|
145,177
|
|
118,803
|
26,374
|
22.2
|
|
Revenue, net of direct costs
|
$
|
87,637
|
$
|
76,949
|
10,688
|
13.9
|
|
$
|
358,601
|
$
|
267,050
|
91,551
|
34.3
|
|
As a % of revenue
|
|
72.5%
|
|
70.4%
|
|
|
|
|
71.2%
|
|
69.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
44,952
|
|
43,731
|
1,221
|
2.8
|
|
|
195,109
|
|
153,873
|
41,236
|
26.8
|
|
Special charges
|
|
(12)
|
|
677
|
(689)
|
(101.8)
|
|
|
1,478
|
|
1,203
|
275
|
22.9
|
|
Results from operating activities
|
$
|
42,697
|
$
|
32,541
|
10,156
|
31.2
|
|
$
|
162,014
|
$
|
111,974
|
50,040
|
44.7
|
|
As a % of revenue
|
|
35.3%
|
|
29.8%
|
|
|
|
|
32.2%
|
|
29.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquired software and customer relationships
|
|
(10,958)
|
|
(9,244)
|
(1,714)
|
(18.5)
|
|
|
(44,140)
|
|
(31,697)
|
(12,443)
|
(39.3)
|
|
Foreign exchange gains (losses)
|
|
850
|
|
( 367)
|
1,217
|
331.6
|
|
|
(298)
|
|
66
|
(364)
|
(551.5)
|
|
Interest expense – lease obligations
|
|
(467)
|
|
-
|
(467)
|
-
|
|
|
(1,331)
|
|
-
|
(1,331)
|
-
|
|
Finance income
|
|
43
|
|
331
|
(288)
|
(87.0)
|
|
|
734
|
|
1,805
|
(1,071)
|
(59.3)
|
|
Finance expenses
|
|
(42)
|
|
(10)
|
(32)
|
(320.0)
|
|
|
(81)
|
|
(76)
|
( 5)
|
(6.6)
|
|
Other income
|
|
671
|
|
1,765
|
(1,094)
|
(62.0)
|
|
|
4,895
|
|
2,176
|
2,719
|
125.0
|
|
Income before income taxes
|
$
|
32,794
|
$
|
25,016
|
7,778
|
31.1
|
|
$
|
121,793
|
$
|
84,248
|
37,545
|
44.6
|
|
Provision for income taxes
|
|
3,422
|
|
329
|
3,093
|
940.1
|
|
|
23,203
|
|
13,399
|
9,804
|
73.2
|
|
Net Income for the period
|
$
|
29,372
|
$
|
24,687
|
4,685
|
19.0
|
|
$
|
98,590
|
$
|
70,849
|
27,741
|
39.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
0.53
|
|
0.45
|
0.08
|
17.8
|
|
|
1.79
|
|
1.30
|
0.49
|
37.7
|
|
Diluted earnings per share
|
|
0.52
|
|
0.45
|
0.07
|
15.6
|
|
|
1.77
|
|
1.29
|
0.48
|
37.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flows
|
|
34,989
|
|
21,729
|
13,260
|
61.0
|
|
|
168,145
|
|
81,375
|
86,770
|
106.6
|
|
Operating cash flows excluding changes in working capital
|
|
48,008
|
|
33,854
|
14,154
|
41.8
|
|
|
178,518
|
|
118,516
|
60,002
|
50.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results from operating activities
|
|
42,697
|
|
32,541
|
10,156
|
31.2
|
|
|
162,014
|
|
111,974
|
50,040
|
44.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
795
|
|
804
|
(9)
|
(1.1)
|
|
|
3,241
|
|
2,403
|
838
|
34.9
|
|
Depreciation of right-of-use assets
|
|
3,158
|
|
-
|
3,158
|
-
|
|
|
10,083
|
|
-
|
10,083
|
-
|
|
Special charges
|
|
(12)
|
|
677
|
(689)
|
(101.8)
|
|
|
1,478
|
|
1,203
|
275
|
22.9
|
|
Adjusted EBITDA
|
$
|
46,638
|
$
|
34,022
|
12,616
|
37.1
|
|
$
|
176,816
|
$
|
115,580
|
61,236
|
53.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
38.6%
|
|
31.1%
|
|
|
|
|
35.1%
|
|
30.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per diluted share
|
$
|
0.83
|
$
|
0.62
|
0.21
|
34.7
|
|
$
|
3.18
|
$
|
2.10
|
1.08
|
51.5
|
|
Consolidated Statements of Financial Position
|
|
(in thousands of Canadian dollars )
|
|
As at October 31, 2020
|
As at October 31, 2019
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
244,792
|
$
|
144,764
|
|
Short-term investments
|
|
|
6,999
|
|
5,505
|
|
Accounts receivable
|
|
|
90,789
|
|
84,982
|
|
Prepaid expenses and other assets
|
|
|
14,772
|
|
11,147
|
|
|
|
357,352
|
|
246,398
|
|
Non-current assets:
|
|
|
|
|
|
|
Property and equipment
|
|
|
6,301
|
|
6,280
|
|
Right-of-use assets
|
|
|
42,832
|
|
-
|
|
Intangible assets
|
|
|
123,616
|
|
121,885
|
|
Goodwill
|
|
|
217,426
|
|
203,298
|
|
Deferred income tax assets
|
|
|
16,119
|
|
12,739
|
|
|
|
406,294
|
|
344,202
|
|
|
$
|
763,646
|
$
|
590,600
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
80,339
|
$
|
62,813
|
|
Income taxes payable
|
|
|
13,245
|
|
6,953
|
|
Dividends payable
|
|
|
7,472
|
|
6,021
|
|
Provisions
|
|
|
5,697
|
|
6,536
|
|
Deferred revenue
|
|
|
89,927
|
|
78,405
|
|
Lease obligations
|
|
|
9,914
|
|
-
|
|
Current portion of long-term loans
|
|
|
-
|
|
249
|
|
|
|
206,594
|
|
160,977
|
|
Non-current liabilities:
|
|
|
|
|
|
|
Income taxes payable
|
|
|
3,829
|
|
4,434
|
|
Deferred income tax liabilities
|
|
|
14,782
|
|
16,197
|
|
Deferred revenue
|
|
|
7,021
|
|
3,665
|
|
Net employee defined benefit obligation
|
|
|
2,855
|
|
2,380
|
|
Lease obligations
|
|
|
32,242
|
|
-
|
|
Long-term loans
|
|
|
-
|
|
874
|
|
|
|
60,729
|
|
27,550
|
|
|
|
267,323
|
|
188,527
|
|
Shareholders' equity
|
|
|
|
|
|
|
Share capital
|
|
|
99,405
|
|
81,576
|
|
Contributed surplus
|
|
|
6,583
|
|
6,677
|
|
Retained earnings
|
|
|
379,378
|
|
309,198
|
|
Accumulated other comprehensive income
|
|
|
10,957
|
|
4,622
|
|
|
|
496,323
|
|
402,073
|
|
|
$
|
763,646
|
$
|
590,600
|
|
Consolidated Statements of Operations and Comprehensive Income
|
|
(in thousands of Canadian dollars except per share amounts)
|
Three months ended October 31
|
Year ended October 31
|
|
2020
(Unaudited)
|
2019
(Unaudited)
|
2020
|
2019
|
|
Revenue
|
|
|
|
|
|
Software licenses
|
$
|
27,658
|
$
|
26,765
|
$
|
134,287
|
$
|
89,093
|
|
Hosted and maintenance services
|
73,037
|
60,931
|
286,770
|
219,630
|
|
Professional services
|
16,906
|
16,962
|
64,235
|
60,889
|
|
Hardware
|
3,297
|
4,673
|
18,486
|
16,241
|
|
120,898
|
109,331
|
503,778
|
385,853
|
|
Direct costs
|
|
|
|
|
|
Software licenses
|
1,649
|
1,403
|
10,094
|
5,461
|
|
Services
|
29,557
|
27,156
|
121,400
|
101,281
|
|
Hardware
|
2,055
|
3,823
|
13,683
|
12,061
|
|
33,261
|
32,382
|
145,177
|
118,803
|
|
Revenue, net of direct costs
|
87,637
|
76,949
|
358,601
|
267,050
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
Selling, general and administrative
|
21,922
|
25,635
|
102,028
|
92,421
|
|
Research and development
|
19,077
|
17,292
|
79,757
|
59,049
|
|
Depreciation
|
795
|
804
|
3,241
|
2,403
|
|
Depreciation of right-of-use assets
|
3,158
|
-
|
10,083
|
-
|
|
Special charges
|
(12)
|
677
|
1,478
|
1,203
|
|
44,940
|
44,408
|
196,587
|
155,076
|
|
|
|
|
|
|
Results from operating activities
|
42,697
|
32,541
|
162,014
|
111,974
|
|
|
|
|
|
|
Amortization of acquired software and customer relationships
|
(10,958)
|
(9,244)
|
(44,140)
|
(31,697)
|
|
Foreign exchange gains (losses)
|
850
|
(367)
|
(298)
|
66
|
|
Interest expense – lease obligations
|
(467)
|
-
|
(1,331)
|
-
|
|
Finance income
|
43
|
331
|
734
|
1,805
|
|
Finance expenses
|
(42)
|
(10)
|
(81)
|
(76)
|
|
Other income
|
671
|
1,765
|
4,895
|
2,176
|
|
Income before income taxes
|
32,794
|
25,016
|
121,793
|
84,248
|
|
|
|
|
|
|
Provision for income taxes
|
3,422
|
329
|
23,203
|
13,399
|
|
|
|
|
|
|
Net income for the period
|
$
|
29,372
|
$
|
24,687
|
$
|
98,590
|
$
|
70,849
|
|
Items that may be subsequently reclassified to income:
|
|
|
|
|
|
Cumulative translation adjustment
|
(8,984)
|
(2,171)
|
6,335
|
(1,795)
|
|
Deferred income tax expense
|
-
|
(119)
|
-
|
(119)
|
|
Other comprehensive (loss) income
|
(8,984)
|
2,052
|
6,335
|
(1,914)
|
|
|
|
|
|
|
Comprehensive income
|
$
|
20,388
|
$
|
26,739
|
$
|
104,925
|
$
|
68,935
|
|
Earnings per share
|
|
|
|
|
|
Basic
|
$
|
0.53
|
$
|
0.45
|
$
|
1.79
|
$
|
1.30
|
|
Diluted
|
$
|
0.52
|
$
|
0.45
|
$
|
1.77
|
$
|
1.29
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
(in thousands of Canadian dollars)
|
|
Three months ended October 31
|
|
|
Year ended October 31
|
|
|
2020
(Unaudited)
|
|
2019
(Unaudited)
|
|
|
2020
|
|
2019
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net income for the period
|
$
|
29,372
|
$
|
24,687
|
|
$
|
98,590
|
$
|
70,849
|
|
Adjustments for non-cash items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
795
|
|
804
|
|
|
3,241
|
|
2,403
|
|
Depreciation of right-of-use assets
|
|
3,158
|
|
-
|
|
|
10,083
|
|
-
|
|
Interest expense – lease obligations
|
|
467
|
|
-
|
|
|
1,331
|
|
-
|
|
Amortization of acquired software and customer relationships
|
|
10,958
|
|
9,244
|
|
|
44,140
|
|
31,697
|
|
Stock-based compensation expense
|
|
465
|
|
545
|
|
|
2,744
|
|
2,268
|
|
Provision for income taxes
|
|
3,422
|
|
329
|
|
|
23,203
|
|
13,399
|
|
Finance expenses and other (income) expenses
|
|
(629)
|
|
(1,755)
|
|
|
(4,814)
|
|
(2,100)
|
|
$
|
48,008
|
$
|
33,854
|
|
$
|
178,518
|
$
|
118,516
|
|
|
|
|
|
|
|
|
|
|
|
Changes in non-cash operating working capital
|
|
(8,762)
|
|
(4,931)
|
|
|
9,388
|
|
(15,732)
|
|
Income taxes paid
|
|
(4,257)
|
|
(7,194)
|
|
|
(19,761)
|
|
(21,409)
|
|
Net cash provided by operating activities
|
$
|
34,989
|
$
|
21,729
|
|
$
|
168,145
|
$
|
81,375
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
(638)
|
|
(815)
|
|
|
(2,540)
|
|
(2,155)
|
|
Acquisitions, net of cash acquired*
|
|
-
|
|
(6,986)
|
|
|
(43,454)
|
|
(101,219)
|
|
Purchase consideration for prior-period acquisitions
|
|
-
|
|
-
|
|
|
(452)
|
|
(1,105)
|
|
Sale of short-term investments
|
|
2,948
|
|
2,819
|
|
|
1,379
|
|
1,709
|
|
Net cash provided by (used in) investing activities
|
$
|
2,310
|
$
|
(4,982)
|
|
$
|
(45,067)
|
$
|
(102,770)
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Issuance of share capital
|
|
1,630
|
|
774
|
|
|
14,991
|
|
2,122
|
|
Repayment of loans
|
|
(66)
|
|
(495)
|
|
|
(128)
|
|
(1,452)
|
|
Repayment of lease obligations
|
|
(3,285)
|
|
-
|
|
|
(10,220)
|
|
-
|
|
Dividends paid
|
|
(7,463)
|
|
(6,017)
|
|
|
(26,959)
|
|
(21,857)
|
|
Net cash used in financing activities
|
$
|
(9,184)
|
$
|
(5,738)
|
|
$
|
(22,316)
|
$
|
(21,187)
|
|
Impact of foreign exchange on cash and cash equivalents
|
|
(2,746)
|
|
333
|
|
|
(734)
|
|
(205)
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
$
|
25,369
|
$
|
11,342
|
|
$
|
100,028
|
$
|
(42,787)
|
|
Cash and cash equivalents - beginning of period
|
|
219,423
|
|
133,422
|
|
|
144,764
|
|
187,551
|
|
Cash and cash equivalents - end of period
|
$
|
244,792
|
$
|
144,764
|
|
$
|
244,792
|
$
|
144,764
|
|
|
* Acquisitions are net of cash acquired $Nil for the quarter ended October 31, 2020 (Q4/19-$2,743); $6,906 for the year ended October 31, 2020 (2019-$36,708).
|
|
**The Company has applied IFRS 16 "Leases" using the modified retrospective method. Under this method, the comparative information is not restated.
|
Enghouse Systems Limited
Segment Reporting Information
(in thousands of Canadian dollars)
Three months ended October 31, 2020 (Unaudited)
|
IMG
|
AMG
|
Total
|
|
Revenue
|
$
|
70,927
|
$
|
49,971
|
$
|
120,898
|
|
Direct costs
|
|
(16,055)
|
|
(17,206)
|
|
(33,261)
|
|
Revenue, net of direct costs
|
|
54,872
|
|
32,765
|
|
87,637
|
|
Operating expenses excluding special charges
|
|
(24,153)
|
|
(11,105)
|
|
(35,258)
|
|
Depreciation of property and equipment
|
|
(678)
|
|
(117)
|
|
(795)
|
|
Depreciation of right-of-use assets
|
|
(2,732)
|
|
(426)
|
|
(3,158)
|
|
Segment profit
|
$
|
27,309
|
$
|
21,117
|
$
|
48,426
|
|
Special charges
|
|
|
|
|
|
12
|
|
Corporate and shared service expenses
|
|
|
|
|
|
(5,741)
|
|
Results from operating activities
|
|
|
|
|
$
|
42,697
|
Three months ended October 31, 2019 (Unaudited)
|
IMG
|
AMG
|
Total
|
|
Revenue
|
$
|
60,036
|
$
|
49,295
|
$
|
109,331
|
|
Direct costs
|
|
(15,681)
|
|
(16,701)
|
|
(32,382)
|
|
Revenue, net of direct costs
|
|
45,355
|
|
32,594
|
|
76,949
|
|
Operating expenses excluding special charges
|
|
(20,382)
|
|
(12,858)
|
|
(33,240)
|
|
Depreciation of property and equipment
|
|
(435)
|
|
(369)
|
|
(804)
|
|
Segment profit
|
$
|
23,538
|
$
|
19,367
|
$
|
42,905
|
|
Special charges
|
|
|
|
|
|
(677)
|
|
Corporate and shared service expenses
|
|
|
|
|
|
(9,687)
|
|
Results from operating activities
|
|
|
|
|
$
|
32,541
|
Year ended October 31, 2020
|
IMG
|
AMG
|
Total
|
|
Revenue
|
$
|
298,876
|
$
|
204,902
|
$
|
503,778
|
|
Direct costs
|
|
(70,295)
|
|
(74,882)
|
|
(145,177)
|
|
Revenue, net of direct costs
|
|
228,581
|
|
130,020
|
|
358,601
|
|
Operating expenses excluding special charges
|
|
(93,875)
|
|
(51,920)
|
|
(145,795)
|
|
Depreciation of property and equipment
|
|
(2,297)
|
|
(944)
|
|
(3,241)
|
|
Depreciation of right-of-use assets
|
|
(6,623)
|
|
(3,460)
|
|
(10,083)
|
|
Segment profit
|
$
|
125,786
|
$
|
73,696
|
$
|
199,482
|
|
Special charges
|
|
|
|
|
|
(1,478)
|
|
Corporate and shared service expenses
|
|
|
|
|
|
(35,990)
|
|
Results from operating activities
|
|
|
|
|
$
|
162,014
|
|
Year Ended October 31, 2019
|
IMG
|
AMG
|
Total
|
|
Revenue
|
$
|
204,899
|
$
|
180,954
|
$
|
385,853
|
|
Direct costs
|
|
(53,558)
|
|
(65,245)
|
|
(118,803)
|
|
Revenue, net of direct costs
|
|
151,341
|
|
115,709
|
|
267,050
|
|
Operating expenses excluding special charges
|
|
(72,024)
|
|
(47,221)
|
|
(119,245)
|
|
Depreciation of property and equipment
|
|
(1,619)
|
|
(784)
|
|
(2,403)
|
|
Segment profit
|
$
|
77,698
|
$
|
67,704
|
$
|
145,402
|
|
Special charges
|
|
|
|
|
|
(1,203)
|
|
Corporate and shared service expenses
|
|
|
|
|
|
(32,225)
|
|
Results from operating activities
|
|
|
|
|
$
|
111,974
|
About Enghouse
Enghouse is a Canadian publicly traded company (TSX:ENGH) that provides enterprise software solutions focusing on remote work, visual computing and communications for next-generation software-defined networks. The Company's two-pronged growth strategy focuses on internal growth and acquisitions, which, to date, have been funded through operating cash flows. The Company is well capitalized, has no long-term debt and is organized around two business segments: the Interactive Management Group and the Asset Management Group. Further information about Enghouse may be obtained from the Company's website at www.enghouse.com .
Conference Call and Webcast
A conference call to discuss the results will be held on Friday, December 18, 2020 at 8:45 a.m. EST . To participate, please call +1-647-792-1278 or North American Toll-Free +1-800-504-7961. Confirmation code: 3963967. A webcast is also available at: https://www.enghouse.com/investors.php .
The Company uses non-IFRS measures to assess its operating performance. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Company uses Adjusted EBITDA as a measure of operating performance. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is calculated based on results from operating activities adjusted for depreciation of property and equipment and right-of-use assets, and special charges for acquisition related restructuring costs. Management uses Adjusted EBITDA to evaluate operating performance as it excludes amortization of software and intangibles (which is an accounting allocation of the cost of software and intangible assets arising on acquisition), any impact of finance and tax related activities, asset depreciation, foreign exchange gains and losses, other income and restructuring costs primarily related to acquisitions.
SOURCE Enghouse Systems Limited
View original content: http://www.newswire.ca/en/releases/archive/December2020/17/c6907.html