/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION
TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
CALGARY, Feb. 11, 2019 /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 first quarter of the 2019
fiscal year, ended December 31,
2018.
Q1 2019 Summary (Comparisons are to Q1 2018, unless
otherwise noted)
- Revenues were $9.4 million,
compared to $8.8 million, an increase
of 7%.
- Gross profit margin was 76%, equivalent to Q1 2018 and up from
71% in the last quarter of fiscal 2018.
- Reported earnings were $2.6
million compared to $3 million
in Q1 2018.
- Earnings per fully diluted common share was $0.12 per share, compared to $0.13 per share.
- Adjusted EBITDA(1) was $4.5
million, an increase of 7%, or $0.20 per fully diluted common share, up 5%.
- Adjusted EBITDA Margin(1) was 48%, the
equivalent to Q1 2018.
- Cash from operating activities (before non-cash changes in
working capital) totalled $4.6
million ($0.21 per share), up
from $4.2 million ($0.19 per share) in Q1 2018.
- The Company paid regular dividends to shareholders totalling
$2.1 million during the quarter.
- Adjusted Working Capital(1) was $31.9 million, an increase of 12%, or
$1.45 per share, compared to
$1.26 per share in Q1 2018.
- Combined tax pools at the end of the first quarter 2019 were
approximately $14.8 million
(CAD).
- For the quarter ended December 31,
2018, the Company repurchased 191,900 common shares at an
average price of $12.81 for a total
cost of $2.5 million.
- The Company's Board of Directors has approved a quarterly
dividend of $0.095 per common share
for shareholders of record as at February
28, 2019 to be paid on March 13,
2019, which is to be treated as an eligible dividend under
the Income Tax Act (Canada).
Jim Wilson, President & Chief
Executive Officer of Sylogist, commented, "Our results in the first
quarter were well aligned with our fiscal 2019 plan. The Company's
revenues, along with Adjusted EBITDA, grew 7% over the comparative
period a year ago. These increases were achieved while
maintaining the Company's highly profitable operations. Gross
profit and EBITDA margins of 76% and 48%, respectively, remained
consistent to that of the prior year. Improved financial results
were achieved while our professional services staff was focused on
the Company's major, bi-annual customer conference held in
Atlanta during the Q1 reporting
period. Very positive feedback in attendance and customer
interactions at the conference bode well for positive returns on
our half million-dollar investment expensed in the period. In
addition, we continue to invest in our products and resources
especially those focused on the US education market, as we foresee
tremendous growth opportunities in that sector.
In keeping with our practice of distributing a portion of
profits to shareholders, the board of directors of Sylogist has
approved a quarterly dividend of $0.095", concluded Mr. Wilson.
About Sylogist
Sylogist is a software company that, through strategic
acquisitions, investments and operations management, provides
comprehensive, mission-critical enterprise resource planning
("ERP") solutions, including fund accounting, grant management and
payroll to public service organizations. Sylogist's public
service customers include local governments, nonprofit
organizations, non-governmental organizations, educational
institutions and government agencies, as well as public compliance
driven and funded. 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.
This news release is not for distribution to United States
Newswire Services or for dissemination in the United States.
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 positive returns on the Company's
bi-annual customer conference, the Company's growth opportunities
in the US education sector and the quarterly dividend for
shareholders of record as of February 28,
2019 to be paid on March 13,
2019. 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 period ended
December 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.
Each non-GAAP measure is reconciled to its most direct
comparable GAAP measure within the "Results of Operations" and
"Liquidity and Capital Resources" sections of the Company's
Management's Discussion & Analysis of Financial Condition and
Results of Operations for the three-month periods ended
December 31, 2018 and 2017.
- 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.