Source
MARKET NEWS
Date 01/12/2016
Time 05:49:46 AM
Company
Sylogist Ltd.
Title Fiscal 2015
Results: Revenue Grows 56%, Adjusted
CDNX Symbol: SYZ
Press Release
SYLOGIST LTD ("SYZ-V")
- Fiscal 2015 Results: Revenue Grows 56%, Adjusted EBITDA
- Increases 74% And Adjusted Earnings Rise 123%
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Sylogist Ltd. ("Sylogist" or the "Company"), a provider of
enterprise information management solutions to public and private
sector customers, is pleased to announce its audited financial results
for the fiscal year ended September 30, 2015.
In fiscal 2015:
Revenues increased 56% to $27.4 million from $17.5 million in
fiscal 2014. Strong revenue growth was driven by software license sales
(up 166%), recurring subscription/maintenance (up 55%) and professional
services (up 142%). Lower margin hardware product revenue fell by 61%.
Adjusted EBITDA(1) increased 74% year over year, to $9.5 million
(35% of total revenue) from $5.5 million (31% of total revenue), or
$0.38 per share versus $0.25 in the previous year.
Cash from operating activities (before non-cash changes in working
capital) increased 91% to $8.8 million, up from $4.6 million in fiscal
2014.
Adjusted Earnings(1) were $9.3 million ($0.37 per share) compared
with $4.2 million ($0.19 per share) in fiscal 2014, an increase of
123%. Reported earnings for fiscal 2015 were $2.5 million ($0.10 per
share).
Cash at September 30, 2015 totalled $41 million. Sylogist has no
debt.
Adjusted Working Capital(1) (net of deferred revenue) was $42.5
million or $1.72 per share at fiscal year end.
Combined tax pools at the end of fiscal 2015 stood at
approximately $35 million (CDN).
Dividends payments in fiscal 2015 totalled $6.1 million.($0.25 per
share).
During fiscal 2015, the Company purchased 307,800 of its own
shares for cancellation, at an average purchase price of $6.66 per
share. As of January 12, 2016, there are 23,722,262 shares outstanding.
"Sylogist has experienced strong, compound growth over the past
several years. The compounded annual growth rate (CAGR), for the fiscal
years 2013 through 2015, for revenue is 43% and for Adjusted EBITDA is
34%. This growth is largely attributed to acquisitions. Our
acquisitions of the Serenic Software and Epic Data operating companies
will both pay back their cash acquisition costs in periods of 2 years
or less. With these acquisitions now largely integrated, we are seeing
a material increase in organic growth heading into fiscal 2016. New
customers and new product deployment in our existing customer base are
contributing to this success. Investments in some of our products,
notably our Business Analytics Suite for public sector clients, have
received very positive acceptance and are now being made available to
broader audiences in their respective markets. Our geographic expansion
in the United States has been encouraging. Assisted by a strong
currency tailwind and considerable opportunities, we plan on
accelerating growth in the US market.
With a strong balance sheet and increased cash flow from
operations, we continue to seek out appropriate acquisitions and
strategic relationships that will grow our revenue and cash flow. One
acquisition target that we know well is our own company. Sylogist
shares have traded at a value that is a fraction of our market peers.
There is good value in buying our own stock. Since launching our normal
course issuer bid in July 2015, we have repurchased 1,280,600 shares at
an average price of $6.85. Purchases to date will increase our per
share growth by 5%. We intend to continue to purchase our shares for as
long as they remain an attractive value compared with other
opportunities" stated Jim Wilson, Chairman, President and CEO.
About Sylogist
Sylogist is a technology innovation company which, through
strategic acquisitions, investments and operations management, provides
intellectual property solutions to a wide range of public and private
sector customers.
(1)Adjusted EBITDA, Adjusted Earnings and Adjusted Working Capital
are non-GAAP financial measures: Adjusted EBITDA is defined as: profit
for the period before stock based compensation, interest expense,
bargain purchase price on acquisition, income taxes,
acquisition-related costs, depreciation and amortization. Adjusted
Working Capital is defined as current assets less current liabilities
adjusted for deferred revenue. Adjusted Earnings is defined as Profit
for the period adjusted for certain non-cash expenses (income), such as
amortization of intangible assets, stock based compensation, deferred
income taxes and certain other expenses (income).
Full financial statements together with Management's Discussion
and Analysis, including full year and 4th quarter 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.
Forward-looking Statements
This news release contains forward-looking information which is
not comprised of historical facts. These statements typically use words
such as prospects, believe, estimate, forecast, project, expect,
anticipate, plan, may, should, could and would, or the negative of
these terms, variations thereof or similar terminology. 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 forecasts, projections and other
forward-looking statements 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. Forward-looking information in
this news release includes statements with respect to Sylogist's key
investments, its products potentially reaching broader markets, and
acquisitions giving the Company greater market presence and
opportunities. Material assumptions and factors that could cause actual
results to differ materially from such forward-looking information
includes Sylogist's ability to integrate acquisitions and realize
operating efficiencies, and its ability to attract customers and
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.
Neither the 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
TSX Venture closing price for SYZ-V
Date: 2016/01/11
Closing Price: 7.80
TEL: (403) 266-4808 Jim Wilson, President and CEO
Sylogist Ltd.
____________________________________________________________
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Toronto:(416)366-8881
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