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DISSEMINATION IN THE UNITED
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CALGARY, AB, Dec. 17, 2020 /CNW/ - Sylogist Ltd.
(TSXV:SYZ) ("Sylogist" or the "Company"), a provider of
mission-critical, SaaS enterprise information management solutions
to public sector organizations, is pleased to announce its audited
financial results for the fiscal year ended September 30, 2020.
Fiscal 2020 Highlights (Comparisons are to fiscal 2019
unless otherwise noted)
- Revenues were $38.1 million, up
from $37.6 million.
- Gross profit margins were 74% of revenue, compared to 76%.
- Reported earnings were $1.9
million ($0.08 per share)
compared to $10 million ($0.44 per share). Fiscal 2020 earnings were lower
due mainly to the restructuring of the senior executive's historic
compensation arrangements.
- Adjusted EBITDA(1) was $20.4
million ($0.86 per share),
compared to $17.6 million
($0.78 per share), an increase of
18%.
- Adjusted EBITDA Margin (1) was 54%, compared to
47%.
- Cash from operating activities (before non-cash changes in
working capital) was $4.1 million
($0.17 per share), compared to
$13.2 million ($0.58 per share).
- Cash as at September 30, 2020
totaled $42.8 million or $1.80 per share.
- Combined tax pools at the end of the fiscal year 2020 were
approximately $13 million (CAD).
- The Company paid regular dividends to shareholders totaling
$10.3 million in fiscal 2020,
compared to $8.7 million in fiscal
2019, an increase of 19%.
- For the fiscal year ended September 30,
2020, the Company repurchased a total of 30,700 common
shares at an average price of $8.06
for a total cost of $248
thousand.
- There are currently 23.9 million Sylogist shares
outstanding.
Q4 2020 Summary (Comparisons are to Q4 2019, unless
otherwise noted)
- Revenues were $9.8 million,
compared to $8.9 million, an increase
of 10%.
- Reported earnings were $2.3
million ($0.10 per share)
compared to $2.3 million
($0.10 per share).
- Adjusted EBITDA(1) was $3.9
million or $0.16 per fully
diluted common share, compared to $4.4
million or $0.19 per fully
diluted common share.
- Adjusted EBITDA Margin(1) was 40%, compared to
49%.
- Cash from operating activities (before non-cash changes in
working capital) totaled $3.2 million
($0.14 per share), compared to
$3.2 million ($0.14 per share) in Q4 2019.
- The Company paid regular dividends to shareholders totaling
$3 million during the quarter
compared to $2.4 million.
- Adjusted Working Capital(1) was $45.2 million, or $1.90 per share, compared to $53.5 million, or $2.26 per share, in Q4 2019.
- During the quarter ended September 30,
2020, the Company repurchased 700 shares at an average price
of $11.62. During the quarter ended
September 30, 2019, the Company did
not repurchase any shares.
Bill Wood, the new President and
Chief Executive Officer of Sylogist commented, "we are pleased to
announce record Adjusted EBITDA in 2020 for the third consecutive
year, and strong financial performance across many dimensions of
our business. The Company grew recurring revenue and saw margins
strengthen. Also, an operational review and a one-time buyout of
executive bonuses early in the year bore fruit. Sylogist stands out
as an industry leader in its profitability and financial
stability.
The COVID-19 pandemic created significant economic turmoil for
many companies, but had no material adverse effect on Sylogist's
business. Much of our workforce had been effectively working
remotely for some time and we were able to close our offices as
required for employee safety without affecting productivity.
Although a few of our health-focused, non-profit clients
understandably chose to delay their large ERP implementations,
overall revenue grew. I'm also proud to share that in response to
the pandemic and our ongoing commitment to corporate citizenship,
Sylogist donated $230,000 to
food-related charities serving the communities where we
operate.
In 2020 Sylogist laid a strong foundation for growth in many
areas. We renewed our partner agreements with Microsoft on
similarly favourable terms, while expanding our commitment to being
a leading SaaS provider by making Serenic's ERP solution available
to customers on Microsoft AppSource for Dynamics 365 Business
Central. New and existing customers have a clear path to the cloud,
enabled by a comprehensive plan and technical support from
Microsoft.
Sylogist's M&A efforts also produced positive results. In
April 2020, we announced the
acquisition of Information Strategies Inc., a Microsoft Gold
partner providing non-profit organizations and state and federal
government agencies with enterprise level case management, grants
management, and criminal justice solutions. This acquisition
extended our public sector reach, deepened our workforce and added
complementary solutions to our product portfolio. We also obtained
a $40M CAD line of credit,
principally intended for acquisitions. Together with $43 million of cash on hand, this provides us
with the financial resources to make transformative
acquisitions.
Sylogist spent considerable time in 2020 preparing for the
retirement of its long time CEO which smoothed that recent
transition. I became President and CEO in early November 2020, bringing to the role many years of
experience leading SaaS companies to rapid organic and inorganic
growth in many of the same markets Sylogist serves.
Going forward, you can expect to see an increased focus on
growth and a more aggressive approach to M&A. We will be
investing in strategic marketing activities to improve our inbound
sales opportunities and considering a range of strategic
initiatives to drive new bookings. We will be similarly strategic
in our acquisitions, adding technology, talent and customers to our
portfolio where it makes sense. I look forward to sharing a more
detailed vision and our plan with you in the near future" concluded
Mr. Wood.
About Sylogist
Sylogist is a software company that, through strategic
acquisitions, investments and operations management, provides
comprehensive, mission-critical SaaS solutions, including fund
accounting, case management, grant management and payroll, to
public service organizations. Sylogist's public service
customers include all levels of government, non-profit
organizations, non-governmental organizations, educational
institutions as well as public compliance driven and funded
companies. 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 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 incoming CEO's
ability to create significant value through both organic and
inorganic initiatives and his extensive tech background and
familiarity with the Company's business segments helping it to
continue to refine its strategy. 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
year ended September 30, 2020 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 the incoming CEO's ability to refine
Sylogist's strategy and to create value both organically and
by acquisitions. 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.
