MARKHAM,
ON, Dec. 15, 2022 /CNW/ - Enghouse Systems
Limited (TSX: ENGH) today announced its fourth quarter
(unaudited) and year-end financial results for period ended
October 31, 2022. All the financial
information is in Canadian dollars unless otherwise indicated.
Financial and operational highlights for the three and twelve
months ended October 31, 2022,
compared to the three and twelve months ended October 31, 2021 are as follows:
- Revenue achieved was $108.1 and $427.6 million, respectively, compared to
revenue of $113.1 and
$467.2 million;
- Results from operating activities was $33.1 and $129.7 million, respectively, compared to
$39.1 and $155.2 million;
- Net income was $36.9 and
$94.5 million, respectively,
compared to $30.2 and
$92.8 million;
- Adjusted EBITDA was $35.8 and $140.6 million, respectively, compared to
$42.1 and $168.5 million while Adjusted EBITDA margins
were 33.1% and 32.9%, respectively, compared to 37.2% and
36.1%;
- Cash flows from operating activities excluding changes in
working capital was $37.7 and
$145.1 million, respectively,
compared to $42.4 and
$167.8 million;
- Cash, cash equivalents and short-term investments were
$228.1 million as at October 31, 2022 compared to $198.8 million at the end of the prior year.
Turbulent global markets, rising interest rates, high inflation
and aggressive competition in the technology sector, particularly
from vendors offering software-as-a-service ("SaaS"), highlight the
environment in which we operated during fiscal 2022. Despite these
factors, consistent with our operating approach and strategy, we
continued to manage our business with financial discipline once
again generating positive operating income and cash flows while
increasing quarterly distributions to shareholders for the
fourteenth consecutive year. During fiscal 2022 we invested
$72.3 million in research and
development activities aimed at on-going product improvements and
innovation. We continue with our strategy of offering customers and
partners choice, providing various deployment options of private
cloud, multi-tenanted cloud or on-premise solutions. We believe
offering choice differentiates us in the vertically- focused
enterprise-software markets in which we operate and addresses the
varying needs of our customers.
In fiscal 2022, we achieved Adjusted EBITDA of $140.6 million or 32.9% of revenue and cash flows
from operations, excluding changes in working capital, of
$145.1 million, closing the year with
$228.1 million in cash,
cash equivalents and short-term investments with no external debt.
Our capital allocation focused on deploying $20.2 million for acquisitions, repurchasing
$9.3 million of Enghouse common stock
and paying dividends to our shareholders of $38.3 million.
Revenue for the year was $427.6 million, compared to $467.2 million in the prior year. Revenue
was negatively impacted by the decline in our Vidyo revenue
(post-COVID), in addition to $15.7
million of unfavourable foreign exchange and the growing
shift from on-premise solutions to SaaS. Consistent with our
strategy of offering choice, we continued to expand the
availability of our SaaS offerings globally, primarily for our
customer experience and contact center technologies where demand
for SaaS is rapidly growing. Operating Income for the year was
$129.7 million compared to
$155.2 million in the prior year
resulting from lower revenue levels. Net income for the year
increased to $94.5 million compared
to $92.8 million in fiscal 2021 as a
result of lower non-operating expenses and taxes.
During the year we completed the acquisitions of Competella, NTW
and VoicePort broadening our geographic reach and product
portfolio, including SaaS offerings. We continue to expand our
acquisition pipeline and actively pursue acquisition opportunities.
Valuations are generally decreasing in the enterprise software
market that we believe are the result of higher debt servicing
costs, reduced ability to raise capital and a broader focus on
profitability and cash flow in response to economic uncertainty. We
are closely monitoring acquisition opportunities as valuations
become more aligned with our financial and operating criteria.
We have consistently demonstrated, even during adverse economic
conditions, that we can generate positive operating cash flows and
augment our cash reserves to be deployed for acquisitions and
further investment in our business. We believe that our financial
discipline, product approach and commitment to customers, partners
and employees will continue to drive long-term shareholder
value.
Quarterly dividends:
Today, the Board of Directors
approved the Company's eligible quarterly dividend of $0.185 per common share payable on February 28, 2023 to shareholders of record at
the close of business on February 14,
2023.
Enghouse Systems Limited
Financial Highlights
(unaudited, in thousands of Canadian
dollars)
For the period ended
October 31
|
Three
months
|
|
Twelve
months
|
|
2022
|
|
2021
|
Var
($)
|
Var
(%)
|
|
|
2022
|
|
2021
|
Var
($)
|
Var
(%)
|
Revenue
|
$
|
108,060
|
$
|
113,099
|
(5,039)
|
(4.5)
|
|
$
|
427,585
|
$
|
467,177
|
(39,592)
|
(8.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct costs
|
|
32,340
|
|
31,149
|
1,191
|
3.8
|
|
|
130,097
|
|
129,627
|
470
|
0.4
|
Revenue, net of
direct costs
|
$
|
75,720
|
$
|
81,950
|
(6,230)
|
(7.6)
|
|
$
|
297,488
|
$
|
337,550
|
(40,062)
|
(11.9)
|
As a % of
revenue
|
|
70.1 %
|
|
72.5 %
|
|
|
|
|
69.6 %
|
|
72.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
42,448
|
|
42,784
|
(336)
|
(0.8)
|
|
|
167,418
|
|
181,413
|
(13,995)
|
(7.7)
|
Special
charges
|
|
123
|
|
31
|
92
|
296.8
|
|
|
403
|
|
904
|
(501)
|
(55.4)
|
Results from
operating activities
|
$
|
33,149
|
$
|
39,135
|
(5,986)
|
(15.3)
|
|
$
|
129,667
|
$
|
155,233
|
(25,566)
|
(16.5)
|
As a % of
revenue
|
|
30.7 %
|
|
34.6 %
|
|
|
|
|
30.3 %
|
|
33.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired software and
customer relationships
|
|
(8,826)
|
|
(10,438)
|
1,612
|
15.4
|
|
|
(36,174)
|
|
(42,421)
|
6,247
|
14.7
|
Foreign exchange gains
(losses)
|
|
931
|
|
(62)
|
993
|
n/a
|
|
|
1,954
|
|
(2,038)
|
3,992
|
195.9
|
Interest expense –
lease obligations
|
|
(164)
|
|
(218)
|
54
|
24.8
|
|
|
(735)
|
|
(1,036)
|
301
|
29.1
|
Finance
income
|
|
651
|
|
52
|
599
|
n/a
|
|
|
1,192
|
|
214
|
978
|
457.0
|
Finance
expenses
|
|
(27)
|
|
(10)
|
(17)
|
(170.0)
|
|
|
(89)
|
|
(86)
|
( 3)
|
(3.5)
|
Other (expense)
income
|
|
(507)
|
|
(486)
|
(21)
|
(4.3)
|
|
|
423
|
|
(2,448)
|
2,871
|
117.3
|
Income before income
taxes
|
$
|
25,207
|
$
|
27,973
|
(2,766)
|
(9.9)
|
|
$
|
96,238
|
$
|
107,418
|
(11,180)
|
(10.4)
|
(Recovery of) provision
for income taxes
|
|
(11,742)
|
|
(2,213)
|
(9,529)
|
(430.6)
|
|
|
1,740
|
|
14,624
|
(12,884)
|
(88.1)
|
Net Income for the
period
|
$
|
36,949
|
$
|
30,186
|
6,763
|
22.4
|
|
$
|
94,498
|
$
|
92,794
|
1,704
|
1.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
0.67
|
|
0.54
|
0.13
|
24.1
|
|
|
1.70
|
|
1.67
|
0.03
|
1.8
|
Diluted earnings per
share
|
|
0.67
|
|
0.54
|
0.13
|
24.1
|
|
|
1.70
|
|
1.66
|
0.04
|
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash
flows
|
|
18,539
|
|
25,206
|
(6,667)
|
(26.5)
|
|
|
103,181
|
|
118,460
|
(15,279)
|
(12.9)
|
Operating cash flows
excluding changes in
working capital
|
|
37,740
|
|
42,385
|
(4,645)
|
(11.0)
|
|
|
145,074
|
|
167,807
|
(22,733)
|
(13.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results from operating
activities
|
|
33,149
|
|
39,135
|
(5,986)
|
(15.3)
|
|
|
129,667
|
|
155,233
|
(25,566)
|
(16.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
709
|
|
791
|
(82)
|
(10.4)
|
|
|
2,799
|
|
3,003
|
(204)
|
(6.8)
|
Depreciation of
right-of-use assets
|
|
1,824
|
|
2,168
|
(344)
|
(15.9)
|
|
|
7,754
|
|
9,369
|
(1,615)
|
(17.2)
|
Special
charges
|
|
123
|
|
31
|
92
|
296.8
|
|
|
403
|
|
904
|
(501)
|
(55.4)
|
Adjusted
EBITDA
|
$
|
35,805
|
$
|
42,125
|
(6,320)
|
(15.0)
|
|
$
|
140,623
|
$
|
168,509
|
(27,886)
|
(16.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
33.1 %
|
|
37.2 %
|
|
|
|
|
32.9 %
|
|
36.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per
diluted share
|
$
|
0.65
|
$
|
0.75
|
(0.11)
|
(14.7)
|
|
$
|
2.53
|
$
|
3.02
|
(0.49)
|
(16.2)
|
Consolidated
Statements of Financial Position
|
(in thousands
of Canadian dollars)
|
|
As at October
31,2022
|
As at October 31,
2021
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
225,104
|
$
|
195,890
|
Short-term
investments
|
|
|
2,950
|
|
2,944
|
Accounts
receivable
|
|
|
93,104
|
|
89,374
|
Prepaid
expenses and other assets
|
|
|
12,848
|
|
13,322
|
Income
taxes recoverable
|
|
|
492
|
|
2,130
|
|
|
|
334,498
|
|
303,660
|
Non-current
assets:
|
|
|
|
|
|
Property
and equipment
|
|
|
4,186
|
|
6,246
|
Right-of-use assets
|
|
|
20,063
|
|
25,943
|
Intangible
assets
|
|
|
85,902
|
|
101,822
|
Goodwill
|
|
|
230,002
|
|
223,021
|
Deferred
income tax assets
|
|
|
30,347
|
|
13,932
|
|
|
|
370,500
|
|
370,964
|
|
|
$
|
704,998
|
$
|
674,624
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable and accrued liabilities
|
|
$
|
60,525
|
$
|
71,506
|
Dividends
payable
|
|
|
10,221
|
|
8,889
|
Provisions
|
|
|
3,183
|
|
5,588
|
Deferred
revenue
|
|
|
83,122
|
|
80,614
|
Lease
obligations
|
|
|
6,822
|
|
7,941
|
|
|
|
163,873
|
|
174,538
|
Non-current
liabilities:
|
|
|
|
|
|
Income
taxes payable
|
|
|
2,576
|
|
2,949
|
Deferred
income tax liabilities
|
|
|
12,038
|
|
13,392
|
Deferred
revenue
|
|
|
3,470
|
|
9,111
|
Net
employee defined benefit obligation
|
|
|
1,821
|
|
2,663
|
Lease
obligations
|
|
|
13,055
|
|
17,660
|
|
|
|
32,960
|
|
45,775
|
|
|
|
196,833
|
|
220,313
|
Shareholders'
equity
|
|
|
|
|
|
Share
capital
|
|
|
107,007
|
|
106,470
|
Contributed surplus
|
|
|
8,882
|
|
7,406
|
Retained
earnings
|
|
|
401,247
|
|
355,019
|
Accumulated other comprehensive loss
|
|
|
(8,971)
|
|
(14,584)
|
|
|
|
508,165
|
|
454,311
|
|
|
$
|
704,998
|
$
|
674,624
|
Consolidated Statement of Operations and
Comprehensive Income
|
(in thousands of
Canadian dollars, except per share amounts)
|
|
|
|
|
Three
months
|
Twelve
months
|
Periods ended
October 31
|
|
2022
(unaudited)
|
2021
(Unaudited)
|
2022
|
2021
|
Revenue
|
|
|
|
|
|
Software licenses
|
|
$
25,588
|
$
24,798
|
$
90,602
|
$
105,072
|
SaaS and maintenance
services
|
|
64,575
|
67,917
|
258,277
|
278,981
|
Professional
services
|
|
16,066
|
18,121
|
68,648
|
71,197
|
Hardware
|
|
1,831
|
2,263
|
10,058
|
11,927
|
|
|
108,060
|
113,099
|
427,585
|
467,177
|
Direct
costs
|
|
|
|
|
|
Software licenses
|
|
704
|
535
|
4,340
|
4,555
|
Services
|
|
30,594
|
29,422
|
119,762
|
117,670
|
Hardware
|
|
1,042
|
1,192
|
5,995
|
7,402
|
|
|
32,340
|
31,149
|
130,097
|
129,627
|
Revenue, net of
direct costs
|
|
75,720
|
81,950
|
297,488
|
337,550
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling, general and
administrative
|
|
21,727
|
22,959
|
84,603
|
91,844
|
Research and
development
|
|
18,188
|
16,866
|
72,262
|
77,197
|
Depreciation
|
|
709
|
791
|
2,799
|
3,003
|
Depreciation of right-of-use
assets
|
|
1,824
|
2,168
|
7,754
|
9,369
|
Special charges
|
|
123
|
31
|
403
|
904
|
|
|
42,571
|
42,815
|
167,821
|
182,317
|
|
|
|
|
|
|
Results from
operating activities
|
|
33,149
|
39,135
|
129,667
|
155,233
|
|
|
|
|
|
|
Amortization of
acquired software and customer
relationships
|
|
(8,826)
|
(10,438)
|
(36,174)
|
(42,421)
|
Foreign exchange gains
(losses)
|
|
931
|
(62)
|
1,954
|
(2,038)
|
Interest expense –
lease obligations
|
|
(164)
|
(218)
|
(735)
|
(1,036)
|
Finance
income
|
|
651
|
52
|
1,192
|
214
|
Finance
expenses
|
|
(27)
|
(10)
|
(89)
|
(86)
|
Other (expense)
income
|
|
(507)
|
(486)
|
423
|
(2,448)
|
Income before income
taxes
|
|
25,207
|
27,973
|
96,238
|
107,418
|
|
|
|
|
|
|
(Recovery of)
provision for income taxes
|
|
(11,742)
|
(2,213)
|
1,740
|
14,624
|
|
|
|
|
|
Net income for the
period
|
|
$
36,949
|
$
30,186
|
$
94,498
|
$
92,794
|
Items that may be
subsequently reclassified to income:
|
|
|
|
|
Cumulative translation
adjustment
|
|
17,883
|
(6,352)
|
5,613
|
(25,541)
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
17,883
|
(6,352)
|
5,613
|
(25,541)
|
|
|
|
|
|
|
Comprehensive
income
|
|
$
54,832
|
$
23,834
|
$
100,111
|
$
67,253
|
Earnings per
share
|
|
|
|
|
|
Basic
|
|
$
0.67
|
$ 0.54
|
$
1.70
|
$ 1.67
|
Diluted
|
|
$
0.67
|
$ 0.54
|
$
1.70
|
$
1.66
|
Consolidated Statements of Cash
Flows
|
(in thousands of
Canadian dollars)
|
|
Three
months
|
Twelve
months
|
Periods ended
October 31
|
|
2022
(Unaudited)
|
2021
(Unaudited)
|
2022
|
2021
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
Net income for the
period
|
|
$
36,949
|
$
30,186
|
$
94,498
|
$
92,794
|
Adjustments for
non-cash items
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
709
|
791
|
2,799
|
3,003
|
Depreciation of right-of-use assets
|
|
1,824
|
2,168
|
7,754
|
9,369
|
Interest
expense – lease obligations
|
|
164
|
218
|
735
|
1,036
|
Amortization of acquired software and customer
relationships
|
|
8,826
|
10,438
|
36,174
|
42,421
|
Stock-based compensation expense
|
|
476
|
301
|
1,708
|
2,026
|
Provision
for income taxes
|
|
(11,742)
|
(2,213)
|
1,740
|
14,624
|
Finance
expenses and other (expense) income
|
|
534
|
496
|
(334)
|
2,534
|
|
|
37,740
|
42,385
|
145,074
|
167,807
|
|
|
|
|
|
|
Changes in non-cash
operating working capital
|
|
(14,467)
|
(11,814)
|
(26,139)
|
(21,671)
|
Income taxes
paid
|
|
(4,734)
|
(5,365)
|
(15,754)
|
(27,676)
|
Net cash provided by
operating activities
|
|
18,539
|
25,206
|
103,181
|
118,460
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
Purchase of property
and equipment, net
|
|
(321)
|
(1,484)
|
(919)
|
(3,333)
|
Acquisitions, net of
cash acquired*
|
|
(14,139)
|
661
|
(20,231)
|
(35,476)
|
Recovery (payment) of
purchase consideration for prior-year acquisitions
|
|
528
|
-
|
120
|
(158)
|
(Purchase) sale of
short-term investments
|
|
-
|
(218)
|
(60)
|
1,352
|
Net cash used in
investing activities
|
|
(13,932)
|
(1,041)
|
(21,090)
|
(37,615)
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
Issuance of share
capital
|
|
-
|
1,016
|
971
|
5,862
|
Normal course issuer
bid share repurchases
|
|
(367)
|
-
|
(9,318)
|
-
|
Repayment of lease
obligations
|
|
(2,010)
|
(2,314)
|
(8,235)
|
(9,633)
|
Dividends
paid
|
|
(10,224)
|
(8,883)
|
(38,286)
|
(115,736)
|
Net cash used in
financing activities
|
|
(12,601)
|
(10,181)
|
(54,868)
|
(119,507)
|
Impact of foreign
exchange on cash and cash equivalents
|
|
7,152
|
(2,523)
|
1,991
|
(10,240)
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
|
(842)
|
11,461
|
29,214
|
(48,902)
|
Cash and cash
equivalents - beginning of period
|
|
225,946
|
184,429
|
195,890
|
244,792
|
Cash and cash
equivalents - end of period
|
|
$
225,104
|
$
195,890
|
$
225,104
|
$
195,890
|
|
* Acquisitions are net
of cash acquired of nil and $3,647 for the quarter and year ended
October 31, 2022, respectively and nil and $3,613 for the quarter
and year ended October 31, 2021, respectively.
|
Enghouse Systems Limited
Segment Reporting
Information
(in thousands of Canadian dollars)
For the period ended
October 31, 2022
|
|
Three
months
|
|
Twelve
months
|
IMG
|
AMG
|
Total
|
IMG
|
AMG
|
Total
|
Revenue
|
$
|
61,759
|
$
|
46,301
|
$
|
108,060
|
$
|
235,925
|
$
|
191,660
|
$
|
427,585
|
Direct costs
|
|
(15,815)
|
|
(16,525)
|
|
(32,340)
|
|
(62,079)
|
|
(68,018)
|
|
(130,097)
|
Revenue, net of
direct costs
|
|
45,944
|
|
29,776
|
|
75,720
|
|
173,846
|
|
123,642
|
|
297,488
|
Operating expenses
excluding special charges
|
|
(18,394)
|
|
(11,859)
|
|
(30,253)
|
|
(75,272)
|
|
(45,816)
|
|
(121,088)
|
Depreciation
|
|
(583)
|
|
(126)
|
|
(709)
|
|
(2,336)
|
|
(463)
|
|
(2,799)
|
Depreciation of
right-of-use assets
|
|
(1,112)
|
|
(712)
|
|
(1,824)
|
|
(4,742)
|
|
(3,012)
|
|
(7,754)
|
Segment
profit
|
$
|
25,855
|
$
|
17,079
|
$
|
42,934
|
$
|
91,496
|
$
|
74,351
|
$
|
165,847
|
Special
charges
|
|
|
|
|
|
(123)
|
|
|
|
|
|
(403)
|
Corporate and shared
service expenses
|
|
|
|
|
|
(9,662)
|
|
|
|
|
|
(35,777)
|
Results from
operating activities
|
|
|
|
|
$
|
33,149
|
|
|
|
|
$
|
129,667
|
For the period ended
October 31, 2021
|
|
Three
months
|
|
Twelve
months
|
IMG
|
AMG
|
Total
|
IMG
|
AMG
|
Total
|
Revenue
|
$
|
66,846
|
$
|
46,253
|
$
|
113,099
|
$
|
268,584
|
$
|
198,593
|
$
|
467,177
|
Direct costs
|
|
(15,281)
|
|
(15,868)
|
|
(31,149)
|
|
(64,941)
|
|
(64,686)
|
|
(129,627)
|
Revenue, net of
direct costs
|
|
51,565
|
|
30,385
|
|
81,950
|
|
203,643
|
|
133,907
|
|
337,550
|
Operating expenses
excluding special charges
|
|
(19,505)
|
|
(13,249)
|
|
(32,754)
|
|
(88,064)
|
|
(49,306)
|
|
(137,370)
|
Depreciation
|
|
(668)
|
|
(123)
|
|
(791)
|
|
(2,570)
|
|
(433)
|
|
(3,003)
|
Depreciation of
right-of-use assets
|
|
(1,213)
|
|
(955)
|
|
(2,168)
|
|
(5,900)
|
|
(3,469)
|
|
(9,369)
|
Segment
profit
|
$
|
30,179
|
$
|
16,058
|
$
|
46,237
|
$
|
107,109
|
$
|
80,699
|
$
|
187,808
|
Special
charges
|
|
|
|
|
|
(31)
|
|
|
|
|
|
(904)
|
Corporate and shared
service expenses
|
|
|
|
|
|
(7,071)
|
|
|
|
|
|
(31,671)
|
Results from
operating activities
|
|
|
|
|
$
|
39,135
|
|
|
|
|
$
|
155,233
|
About Enghouse
Enghouse is a Canadian publicly traded
company (TSX:ENGH) that provides enterprise software solutions
focusing on contact centers, video communications, virtual
healthcare, telecommunications networks, public safety and the
transit market. The Company's two-pronged growth strategy to grow
earnings focuses on internal growth and acquisitions, which, to
date, have been funded through operating cash flows. The Company
has no outstanding external debt financing 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 16, 2022 at 8:45 a.m.
EST. To participate, please call +1-416-764-8646 or North
American Toll-Free +1-888-396-8049. Confirmation code: 89712281 A
webcast is also available at: 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, Adjusted EBITDA margin and Adjusted
EBITDA per diluted share as measures of operating performance.
Therefore, these collective Adjusted EBITDA measures 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