MARKHAM, ON, June 7, 2022 /CNW/ - Enghouse Systems Limited (TSX: ENGH) today announced its second quarter unaudited financial results for the period ended April 30, 2022. All the financial information is in Canadian dollars unless otherwise indicated.
Financial and operational highlights for the three and six months ended April 30, 2022 compared to the three and six months ended April 30, 2021 are as follows:
- Revenue achieved was $106.3 and $217.4 million, respectively, compared to revenue of $117.3 and $236.4 million;
- Results from operating activities was $31.1 and $66.8 million, respectively, compared to $36.9 and $77.6 million;
- Net income was $17.9 and $39.5 million, respectively, compared to $20.7 and $41.4 million;
- Adjusted EBITDA was $33.8 and $72.3 million, respectively, compared to $40.2 and $84.7 million;
- Cash flows from operating activities excluding changes in working capital was $34.5 and $73.3 million, respectively, compared to $42.6 and $84.3 million.
Revenue for the second quarter of 2022 was $106.3 million with results from operating activities of $31.1 million and cash flows from operating activities excluding changes in working capital of $34.5 million. As a result, we closed the quarter with $231.2 million in cash, cash equivalents, and short-term investments with no external debt. We remain focused on operating a profitable, cash flow positive business that generates the necessary capital to fund our acquisition strategy without the need for financing.
Revenue for the second quarter of 2022 was down from $117.3 million in the same period of the prior year and was negatively impacted by $3.7 million as a result of unfavourable foreign exchange as European currencies have come under pressure with the recent conflict in Ukraine. Excluding the impact of foreign exchange, our Asset Management Group had comparable revenues to the second quarter of 2021. Our Interactive Management Group is experiencing increased competition from cloud solutions providers as the market shifts towards the cloud as more businesses adopt work from home operating models. While we differentiate ourselves from our competitors by providing customers choice between on-premise solutions, private cloud and multi-tenant cloud offerings we are augmenting our existing channel-partner model with additional focus on our direct go-to-market approach for our cloud solution that is still in the early stages of its global roll-out.
Net income for the quarter was $17.9 million or $0.32 per diluted share, compared to $20.7 million or $0.37 per diluted share last year. The decrease in net income is a result of higher revenue in the comparative period despite lower operating expenses in the current period. Adjusted EBITDA was $33.8 million or $0.61 per diluted share, compared to $40.2 million or $0.72 per diluted share in the second quarter of 2021.
Enghouse closed the quarter with $231.2 million in cash, cash equivalents and short-term investments, compared to $198.8 million as at October 31, 2021 with no external debt. The cash balance was achieved after making payments of $17.8 million for dividends in the first six months of 2022. Enghouse remains focused on its long-term growth strategy, investing in products while ensuring profitability and maximizing operating cashflows. As a result, Enghouse continues to replenish its acquisition capital while annually increasing its eligible quarterly dividend.
Quarterly dividends:
Today, the Board of Directors approved the Company's eligible quarterly dividend of $0.185 per common share, payable on August 31, 2022 to shareholders of record at the close of business on August 17, 2022. This payment represents an increase of 16% compared to the prior year.
Enghouse Systems Limited
Financial Highlights
(unaudited, in thousands of Canadian dollars)
|
For the period ended April 30
|
Three months
|
|
Six months
|
|
2022
|
|
2021
|
Var ($)
|
Var (%)
|
|
|
2022
|
|
2021
|
Var ($)
|
Var (%)
|
|
Revenue
|
$
|
106,312
|
$
|
117,334
|
(11,022)
|
(9.4)
|
|
$
|
217,414
|
$
|
236,434
|
(19,020)
|
(8.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct costs
|
|
33,581
|
|
33,533
|
48
|
0.1
|
|
|
66,409
|
|
65,041
|
1,368
|
2.1
|
|
Revenue, net of direct costs
|
$
|
72,731
|
$
|
83,801
|
(11,070)
|
(13.2)
|
|
$
|
151,005
|
$
|
171,393
|
(20,388)
|
(11.9)
|
|
As a % of revenue
|
|
68.4%
|
|
71.4%
|
|
|
|
|
69.5%
|
|
72.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
41,629
|
|
46,852
|
(5,223)
|
(11.1)
|
|
|
84,180
|
|
93,362
|
(9,182)
|
(9.8)
|
|
Special charges
|
|
46
|
|
57
|
(11)
|
(19.3)
|
|
|
64
|
|
440
|
(376)
|
(85.5)
|
|
Results from operating activities
|
$
|
31,056
|
$
|
36,892
|
(5,836)
|
(15.8)
|
|
$
|
66,761
|
$
|
77,591
|
(10,830)
|
(14.0)
|
|
As a % of revenue
|
|
29.2%
|
|
31.4%
|
|
|
|
|
30.7%
|
|
32.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquired software and
customer relationships
|
|
(9,207)
|
|
(10,854)
|
1,647
|
15.2
|
|
|
(18,864)
|
|
(21,628)
|
2,764
|
12.8
|
|
Foreign exchange gains (losses)
|
|
314
|
|
1,587
|
(1,273)
|
(80.2)
|
|
|
(22)
|
|
(1,523)
|
1,501
|
98.6
|
|
Interest expense – lease obligations
|
|
(196)
|
|
(277)
|
81
|
29.2
|
|
|
(398)
|
|
(606)
|
208
|
34.3
|
|
Finance income
|
|
122
|
|
36
|
86
|
238.9
|
|
|
251
|
|
116
|
135
|
116.4
|
|
Finance expenses
|
|
(21)
|
|
17
|
(38)
|
(223.5)
|
|
|
(44)
|
|
(64)
|
20
|
31.3
|
|
Other income (expenses)
|
|
23
|
|
(1,122)
|
1,145
|
102.0
|
|
|
1,023
|
|
(1,446)
|
2,469
|
170.7
|
|
Income before income taxes
|
$
|
22,091
|
$
|
26,279
|
(4,188)
|
(15.9)
|
|
$
|
48,707
|
$
|
52,440
|
(3,733)
|
(7.1)
|
|
Provision for income taxes
|
|
4,220
|
|
5,540
|
(1,320)
|
(23.8)
|
|
|
9,239
|
|
11,059
|
(1,820)
|
(16.5)
|
|
Net Income for the period
|
$
|
17,871
|
$
|
20,739
|
(2,868)
|
(13.8)
|
|
$
|
39,468
|
$
|
41,381
|
(1,913)
|
(4.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
0.32
|
|
0.37
|
(0.05)
|
(13.5)
|
|
|
0.71
|
|
0.75
|
(0.04)
|
(5.3)
|
|
Diluted earnings per share
|
|
0.32
|
|
0.37
|
(0.05)
|
(13.5)
|
|
|
0.71
|
|
0.74
|
(0.03)
|
(4.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flows
|
|
31,142
|
|
39,155
|
(8,013)
|
(20.5)
|
|
|
55,484
|
|
59,702
|
(4,218)
|
(7.1)
|
|
Operating cash flows excluding changes
in working capital
|
|
34,510
|
|
42,600
|
(8,090)
|
(19.0)
|
|
|
73,253
|
|
84,317
|
(11,064)
|
(13.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results from operating activities
|
|
31,056
|
|
36,892
|
(5,836)
|
(15.8)
|
|
|
66,761
|
|
77,591
|
(10,830)
|
(14.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
705
|
|
758
|
(53)
|
7.0
|
|
|
1,425
|
|
1,493
|
(68)
|
4.6
|
|
Depreciation of right-of-use assets
|
|
1,969
|
|
2,492
|
(523)
|
21.0
|
|
|
4,081
|
|
5,195
|
(1,114)
|
21.4
|
|
Special charges
|
|
46
|
|
57
|
(11)
|
19.3
|
|
|
64
|
|
440
|
(376)
|
85.5
|
|
Adjusted EBITDA
|
$
|
33,776
|
$
|
40,199
|
(6,423)
|
(16.0)
|
|
$
|
72,331
|
$
|
84,719
|
(12,388)
|
(14.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
31.8%
|
|
34.3%
|
|
|
|
|
33.3%
|
|
35.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per diluted share
|
$
|
0.61
|
$
|
0.72
|
(0.11)
|
(15.3)
|
|
$
|
1.30
|
$
|
1.52
|
(0.22)
|
(14.5)
|
|
Condensed Consolidated Interim Statements of Financial Position
|
|
|
(in thousands of Canadian dollars)
(unaudited)
|
|
As at April 30,
2022
|
As at October 31,
2021
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
227,377
|
$
|
195,890
|
|
Short-term investments
|
|
|
3,841
|
|
2,944
|
|
Accounts receivable
|
|
|
98,592
|
|
89,374
|
|
Prepaid expenses and other assets
|
|
|
14,536
|
|
13,322
|
|
Income taxes recoverable
|
|
|
-
|
|
2,130
|
|
|
|
344,346
|
|
303,660
|
|
Non-current assets:
|
|
|
|
|
|
|
Property and equipment
|
|
|
4,766
|
|
6,246
|
|
Right-of-use assets
|
|
|
22,741
|
|
25,943
|
|
Intangible assets
|
|
|
82,462
|
|
101,822
|
|
Goodwill
|
|
|
218,019
|
|
223,021
|
|
Deferred income tax assets
|
|
|
16,548
|
|
13,932
|
|
|
|
344,536
|
|
370,964
|
|
|
$
|
688,882
|
$
|
674,624
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
59,055
|
$
|
71,506
|
|
Income taxes payable
|
|
|
1,957
|
|
-
|
|
Dividends payable
|
|
|
10,285
|
|
8,889
|
|
Provisions
|
|
|
3,389
|
|
5,588
|
|
Deferred revenue
|
|
|
95,685
|
|
80,614
|
|
Lease obligations
|
|
|
7,447
|
|
7,941
|
|
|
|
177,818
|
|
174,538
|
|
Non-current liabilities:
|
|
|
|
|
|
|
Income taxes payable
|
|
|
2,414
|
|
2,949
|
|
Deferred income tax liabilities
|
|
|
11,770
|
|
13,392
|
|
Deferred revenue
|
|
|
8,032
|
|
9,111
|
|
Net employee defined benefit obligation
|
|
|
2,518
|
|
2,663
|
|
Lease obligations
|
|
|
15,069
|
|
17,660
|
|
|
|
39,803
|
|
45,775
|
|
|
|
217,621
|
|
220,313
|
|
Shareholders' equity
|
|
|
|
|
|
|
Share capital
|
|
|
107,672
|
|
106,470
|
|
Contributed surplus
|
|
|
7,931
|
|
7,406
|
|
Retained earnings
|
|
|
375,314
|
|
355,019
|
|
Accumulated other comprehensive loss
|
|
|
(19,656)
|
|
(14,584)
|
|
|
|
471,261
|
|
454,311
|
|
|
$
|
688,882
|
$
|
674,624
|
|
Condensed Consolidated Interim Statements of Operations and Comprehensive Income
|
|
|
(in thousands of Canadian dollars, except per share amounts)
|
|
|
|
(unaudited)
|
|
Three months
|
Six months
|
|
Periods ended April 30
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
|
|
Revenue
Software licenses
|
|
21,420
|
$ 25,167
|
$ 45,198
|
$ 53,467
|
|
Hosted and maintenance services
|
|
63,745
|
70,402
|
130,172
|
142,645
|
|
Professional services
|
|
17,879
|
18,468
|
35,831
|
34,297
|
|
Hardware
|
|
3,268
|
3,297
|
6,213
|
6,025
|
|
|
106,312
|
117,334
|
217,414
|
236,434
|
|
Direct costs
|
|
|
|
|
|
|
Software licenses
|
|
1,286
|
1,485
|
2,613
|
2,686
|
|
Services
|
|
30,560
|
30,143
|
60,154
|
58,615
|
|
Hardware
|
|
1,735
|
1,905
|
3,642
|
3,740
|
|
|
33,581
|
33,533
|
66,409
|
65,041
|
|
Revenue, net of direct costs
|
|
72,731
|
83,801
|
151,005
|
171,393
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
Selling, general and administrative
|
|
19,897
|
22,208
|
42,304
|
45,159
|
|
Research and development
|
|
19,058
|
21,394
|
36,370
|
41,515
|
|
Depreciation
|
|
705
|
758
|
1,425
|
1,493
|
|
Depreciation of right-of-use assets
|
|
1,969
|
2,492
|
4,081
|
5,195
|
|
Special charges
|
|
46
|
57
|
64
|
440
|
|
|
41,675
|
46,909
|
84,244
|
93,802
|
|
|
|
|
|
|
|
Results from operating activities
|
|
31,056
|
36,892
|
66,761
|
77,591
|
|
|
|
|
|
|
|
Amortization of acquired software and customer relationships
|
|
(9,207)
|
(10,854)
|
(18,864)
|
(21,628)
|
|
Foreign exchange gains (losses)
|
|
314
|
1,587
|
(22)
|
(1,523)
|
|
Interest expense – lease obligations
|
|
(196)
|
(277)
|
(398)
|
(606)
|
|
Finance income
|
|
122
|
36
|
251
|
116
|
|
Finance expenses
|
|
(21)
|
17
|
(44)
|
(64)
|
|
Other income (expenses)
|
|
23
|
(1,122)
|
1,023
|
(1,446)
|
|
Income before income taxes
|
|
22,091
|
26,279
|
48,707
|
52,440
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
4,220
|
5,540
|
9,239
|
11,059
|
|
|
|
|
|
|
Net income for the period
|
|
$ 17,871
|
$ 20,739
|
$ 39,468
|
$ 41,381
|
|
|
|
|
|
|
Items that may be subsequently reclassified to income:
|
|
|
|
|
|
Cumulative translation adjustment
|
|
(9,198)
|
(18,274)
|
(5,072)
|
(23,142)
|
|
|
|
|
|
|
|
Other comprehensive loss
|
|
(9,198)
|
(18,274)
|
(5,072)
|
(23,142)
|
|
|
|
|
|
|
|
Comprehensive income
|
|
$ 8,673
|
$ 2,465
|
$ 34,396
|
$ 18,239
|
|
Earnings per share
|
|
|
|
|
|
|
Basic
|
|
$ 0.32
|
$ 0.37
|
$ 0.71
|
$ 0.75
|
|
Diluted
|
|
$ 0.32
|
$ 0.37
|
$ 0.71
|
$ 0.74
|
|
Condensed Consolidated Interim Statements of Cash Flows
|
|
|
(in thousands of Canadian dollars)
(unaudited)
|
|
Three months
|
Six months
|
|
Periods ended April 30
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income for the period
|
|
$ 17,871
|
$ 20,739
|
$ 39,468
|
$ 41,381
|
|
Adjustments for non-cash items
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
705
|
758
|
1,425
|
1,493
|
|
Depreciation of right-of-use assets
|
|
1,969
|
2,492
|
4,081
|
5,195
|
|
Interest expense – lease obligations
|
|
196
|
277
|
398
|
606
|
|
Amortization of acquired software and customer relationships
|
|
9,207
|
10,854
|
18,864
|
21,628
|
|
Stock-based compensation expense
|
|
344
|
835
|
757
|
1,445
|
|
Provision for income taxes
|
|
4,220
|
5,540
|
9,239
|
11,059
|
|
Finance and other (expenses) income
|
|
(2)
|
1,105
|
(979)
|
1,510
|
|
|
34,510
|
42,600
|
73,253
|
84,317
|
|
|
|
|
|
|
|
Changes in non-cash operating working capital
|
|
1,513
|
2,440
|
(9,689)
|
(8,915)
|
|
Income taxes paid
|
|
(4,881)
|
(5,885)
|
(8,080)
|
(15,700)
|
|
Net cash provided by operating activities
|
|
31,142
|
39,155
|
55,484
|
59,702
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Net purchase of property and equipment
|
|
(593)
|
(666)
|
(358)
|
(1,344)
|
|
Acquisitions, net of cash acquired*
|
|
-
|
(3,810)
|
-
|
(32,300)
|
|
Purchase consideration for prior-year acquisition
|
|
(408)
|
444
|
(408)
|
1,105
|
|
(Purchase) sale of short-term investments
|
|
(60)
|
(932)
|
(60)
|
1,614
|
|
Net cash used in investing activities
|
|
(1,061)
|
(4,964)
|
(826)
|
(30,925)
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Issuance of share capital
|
|
970
|
4,028
|
970
|
4,180
|
|
Repayment of lease obligations
|
|
(2,148)
|
(2,091)
|
(4,241)
|
(4,921)
|
|
Dividends paid
|
|
(8,889)
|
(90,502)
|
(17,778)
|
(97,974)
|
|
Net cash used in financing activities
|
|
(10,067)
|
(88,565)
|
(21,049)
|
(98,715)
|
|
|
|
|
|
|
|
Impact of foreign exchange on cash and cash equivalents
|
|
(3,536)
|
(5,937)
|
(2,122)
|
(9,188)
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
16,478
|
(60,311)
|
31,487
|
(79,126)
|
|
Cash and cash equivalents - beginning of period
|
|
210,899
|
225,977
|
195,890
|
244,792
|
|
Cash and cash equivalents - end of period
|
|
$ 227,377
|
$ 165,666
|
$ 227,377
|
$ 165,666
|
|
|
* Acquisitions are net of cash acquired of nil for the three and six months ended April 30, 2022 and nil and $1,463 for the three and six months ended April 30, 2021, respectively.
|
Enghouse Systems Limited
Segment Reporting Information
(in thousands of Canadian dollars)
|
Three months ended April 30, 2022
|
IMG
|
AMG
|
Total
|
|
Revenue
|
$
|
57,218
|
$
|
49,094
|
$
|
106,312
|
|
Direct costs
|
|
(15,313)
|
|
(18,268)
|
|
(33,581)
|
|
Revenue, net of direct costs
|
|
41,905
|
|
30,826
|
|
72,731
|
|
Operating expenses excluding special charges
|
|
(19,412)
|
|
(11,101)
|
|
(30,513)
|
|
Depreciation
|
|
(600)
|
|
(105)
|
|
(705)
|
|
Depreciation of right-of-use assets
|
|
(1,192)
|
|
(777)
|
|
(1,969)
|
|
Segment profit
|
$
|
20,701
|
$
|
18,843
|
$
|
39,544
|
|
Special charges
|
|
|
|
|
|
(46)
|
|
Corporate and shared service expenses
|
|
|
|
|
|
(8,442)
|
|
Results from operating activities
|
|
|
|
|
$
|
31,056
|
|
Three months ended April 30, 2021
|
IMG
|
AMG
|
Total
|
|
Revenue
|
$
|
65,879
|
$
|
51,455
|
$
|
117,334
|
|
Direct costs
|
|
(16,930)
|
|
(16,603)
|
|
(33,533)
|
|
Revenue, net of direct costs
|
|
48,949
|
|
34,852
|
|
83,801
|
|
Operating expenses excluding special charges
|
|
(24,074)
|
|
(12,214)
|
|
(36,288)
|
|
Depreciation
|
|
(624)
|
|
(134)
|
|
(758)
|
|
Depreciation of right-of-use assets
|
|
(1,666)
|
|
(826)
|
|
(2,492)
|
|
Segment profit
|
$
|
22,585
|
$
|
21,678
|
$
|
44,263
|
|
Special charges
|
|
|
|
|
|
(57)
|
|
Corporate and shared service expenses
|
|
|
|
|
|
(7,314)
|
|
Results from operating activities
|
|
|
|
|
$
|
36,892
|
|
Six months ended April 30, 2022
|
IMG
|
AMG
|
Total
|
|
Revenue
|
$
|
119,089
|
$
|
98,325
|
$
|
217,414
|
|
Direct costs
|
|
(30,756)
|
|
(35,653)
|
|
(66,409)
|
|
Revenue, net of direct costs
|
|
88,333
|
|
62,672
|
|
151,005
|
|
Operating expenses excluding special charges
|
|
(38,963)
|
|
(22,273)
|
|
(61,236)
|
|
Depreciation
|
|
(1,196)
|
|
(229)
|
|
(1,425)
|
|
Depreciation of right-of-use assets
|
|
(2,519)
|
|
(1,562)
|
|
(4,081)
|
|
Segment profit
|
$
|
45,655
|
$
|
38,608
|
$
|
84,263
|
|
Special charges
|
|
|
|
|
|
(64)
|
|
Corporate and shared service expenses
|
|
|
|
|
|
(17,438)
|
|
Results from operating activities
|
|
|
|
|
$
|
66,761
|
|
Six months ended April 30, 2021
|
IMG
|
AMG
|
Total
|
|
Revenue
|
$
|
136,182
|
$
|
100,252
|
$
|
236,434
|
|
Direct costs
|
|
(32,387)
|
|
(32,654)
|
|
(65,041)
|
|
Revenue, net of direct costs
|
|
103,795
|
|
67,598
|
|
171,393
|
|
Operating expenses excluding special charges
|
|
(46,737)
|
|
(24,339)
|
|
(71,076)
|
|
Depreciation
|
|
(1,295)
|
|
(198)
|
|
(1,493)
|
|
Depreciation of right-of-use assets
|
|
(3,484)
|
|
(1,711)
|
|
(5,195)
|
|
Segment profit
|
$
|
52,279
|
$
|
41,350
|
$
|
93,629
|
|
Special charges
|
|
|
|
|
|
(440)
|
|
Corporate and shared service expenses
|
|
|
|
|
|
(15,598)
|
|
Results from operating activities
|
|
|
|
|
$
|
77,591
|
About Enghouse
Enghouse is a Canadian publicly traded company (TSX:ENGH) that provides vertical enterprise software solutions focused on contact centers, video communications, healthcare, telecommunications networks, public safety and the transit market. The Company's two-pronged strategy to grow earnings focuses on internal growth and acquisitions, which, to date, have been funded through operating cash flows. The Company has no external debt financing and is organized around two business segments: the Interactive Management Group ("IMG") and the Asset Management Group ("AMG"). 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 Wednesday, June 8, 2022 at 8:45 a.m. EST. To participate, please call +1-416-764-8658 or North American Toll-Free +1-888-886-7786. Confirmation code: 86805714. 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/June2022/07/c0600.html