/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES./
CALGARY, AB, Feb. 11, 2021 /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 2021 fiscal year, ended December 31,
2020.
Q1 2021 Summary (comparisons are to Q1 2020, unless
otherwise noted)
- Total Revenues were $9.5 million,
compared to $8.8 million in the first
quarter of fiscal 2020, an increase of 7%.
- Gross Profit of $7 million,
compared to $6.8 million in the same
period in the prior year, an increase of 2%.
- Gross Profit Margin was 73%, compared to 77% in the first
quarter of 2020.
- Profit before income tax of $2.8
million, compared to a loss before income taxes of
$8.6 million in the first quarter of
2020. (Q1 '20 period reflected a one-time charge for the buy out of
senior executives' historical compensation arrangements).
- Adjusted EBITDA(1) of $4.9 million, compared to $5.2 million in the same period last year.
- Adjusted EBITDA Margin(1) of 52%, compared to
59% in the first quarter of 2020.
- Adjusted EBITDA per share(1) of $0.21 per share, compared to $0.22 per share in the first quarter of fiscal
2020.
- Cash generated from operating activities (before non-cash
changes in working capital) totalled $4.9
million ($0.20 per share),
compared to cash used in operations (before non-cash changes in
working capital) of $6.7 million
($0.28 per share) in Q1 2020.
- The Company paid regular dividends to shareholders totalling
$3 million during the quarter,
compared to $2.4 million in same
period of fiscal 2020, an increase of 25%.
- Working Capital was $32.3
million, or $1.35 per share,
compared to $30.2 million or
$1.27 per share in Q1 2020, an
increase of 7%.
- Adjusted Working Capital (1) was $42.6
million, or $1.78 per share,
compared to $40.8 million or
$1.71 per share in Q1 2020, an
increase of 5%.
- Combined tax pools at the end of the first quarter 2021
totalled approximately $12.7 million
(CAD).
- During the three-month period ended December 31, 2020, the Company repurchased 68,400
shares at an average price of $10.56.
- The Company's Board of Directors approved a quarterly dividend
of $0.125 per common share for
shareholders of record as of February 26,
2021 to be paid on March 10,
2021, which is to be treated as an eligible dividend under
the Income Tax Act (Canada).
Bill Wood, President and CEO of Sylogist commented, "Q1
delivered strong financial performance. We grew revenue while
maintaining very strong profit margins, despite market headwinds
from COVID-19 and its economic turmoil. More broadly, we are
pleased with Sylogist's resilience in the face of challenging
market conditions. Our recurring revenue base has held strong, and
increased professional services revenue from our InfoStrat division
helped drive a 7% increase in our top line. With this came a modest
decrease in Adjusted EBITDA, due to a depreciating US dollar,
one-time costs related to CEO recruitment, costs associated with
establishing a credit facility and new, lower-margin professional
services from the InfoStrat division now contributing a share of
revenue. Although some new bookings have been delayed as a result
of the pandemic, many of those conversations have restarted, we see
bookings pipeline activity growing and expect new deal wins will
accelerate throughout this year.
Business activities continued in Q1 to strengthen our foundation
for growth. In October, we closed on a $40
million credit facility that can be used for acquisitions,
strategic initiatives, and general corporate purposes. This
provides additional resources to pursue transformative acquisitions
and growth initiatives. We also continued to integrate our
InfoStrat acquisition, with a focus on leveraging its IP to develop
innovative products that will grow recurring revenue.
Finally, I was pleased to announce the hire of Terry LoPresti as Sylogist's Chief Technology
and Innovation officer in early January. Terry brings years of
valuable experience delivering scalable solutions and leading
technology strategy at fast-growing SaaS companies. In addition to
leading innovation and product development, she will play a key
role in expanding technology partner and customer relationships,
and in our M&A strategy and execution.
Over the past several weeks, I have been leading Sylogist
through a strategic planning process, with a focus on accelerating
both organic and inorganic growth. Having now been at the helm for
90+ days, I'm increasingly excited about the opportunities for the
company and look forward to sharing more about our plans and the
path forward 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 ERP and CRM solutions, including
fund accounting, case management, grant management and payroll, to
public service organizations. Sylogist's customers include all
levels of government, nonprofit organizations, non-governmental
organizations, educational institutions as well as public
compliance driven and funded companies. The 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 Company executing on delayed implementations throughout the
remainder of fiscal 2021 and continued integration of the InfoStrat
acquisition, with a focus on leveraging its IP to develop products
that drive more recurring revenue, the payment of a quarterly
dividend on March 10, 2021 and the
sharing of future plans. 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, including headwinds from COVID-19 and economic
turmoil, customer delays and the availability of growth prospects.
Additional information regarding some of these risks, uncertainties
and other factors may be found under in the management's discussion
and analysis for the three months ended December 31, 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 Sylogist's ability to
attract and retain customers and to realize on its investments, the
ability to expand technology partner and customer relationships and
the acceleration of organic and inorganic growth. 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, Adjusted EBITDA
per share and Adjusted Working Capital are non-GAAP financial
measures: Adjusted EBITDA is defined as: profit for the period
before stock-based compensation, share-based payments, 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 EBITDA per
share refers to Adjusted EBITDA per basic weighted average number
of shares outstanding. 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, Adjusted EBITDA per
share 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. For further
information regarding non-GAAP measures used by the Company, please
refer to the management's discussion and analysis of the Company,
copies of which are available on Sylogist's SEDAR profile at
www.sedar.com.
- 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.
