ISC Reports Second Quarter 2016 Financial Results
(firmenpresse) - REGINA, SASKATCHEWAN -- (Marketwired) -- 08/09/16 -- Information Services Corporation (TSX: ISV) ("ISC" or the "Company") today reported on the Company''s financial results for the second quarter ended June 30, 2016.
Second Quarter 2016 Highlights
Subseqent Events Highlight
Financial Position as at June 30, 2016
Commenting on the Company''s results, Jeff Stusek, President and CEO stated, "This quarter marks our third year of reporting as a publicly traded company and our eleventh consecutive quarter of reported profitability. This consistency is a testament to the strength and stability of our business." Stusek continued, "As expected, our Services segment has diversified our business and has made a meaningful contribution to our consolidated revenue. Our predictability and stability as a company has been consistent and we will continue to focus on maintaining this while pursuing new opportunities."
Management''s Discussion of ISC''s Summary of Second Quarter 2016 Financial Results
Second Quarter 2016 Results of Operations
Outlook
The majority of the Company''s revenue is linked to registry transaction volumes and values which are driven by economic conditions in Saskatchewan. The remaining portion of our revenue is linked to the overall economic conditions in Ontario and Quebec. At present, the Company continues to expect the 2016 Saskatchewan economy to be comparable to 2015, while moderate growth is anticipated for the central Canadian markets. As a result, ISC reiterates that its expected consolidated EBITDA margin for fiscal 2016 will be in the range of 32.0 to 34.0 per cent.
For the Registries segment, we expect more of the same from the Saskatchewan economy. According to several external forecasts, Saskatchewan''s real Gross Domestic Product growth is expected to be close to zero for 2016. As such, the Company currently expects that the last half of 2016 will follow the trend observed in the first half of the year.
Overall, we anticipate transaction volumes in the Land Titles Registry for 2016 to be near 2015 levels, with high-value property registrations returning to normalized levels. For the Personal Property Registry, we forecast an increase overall, with revenues from search volumes offsetting anticipated declines from lower new motor vehicle sales in Saskatchewan and reduced property security registration setups. For the Corporate Registry, we expect steady growth of active business entities and related search volume will contribute to stabilized revenue.
Pricing for the Registries segment is outlined in the MSA and related Registry Operating Agreements which specify the maximum fees allowed to be charged to the public for particular Core Registry Services. Consistent with 2014 and 2015, during the second quarter, we completed pricing adjustments to our Core Registry Services, which became effective in July 2016, based on the Saskatchewan Consumer Price Index. To improve customer satisfaction, we applied adjustments differently than in years past, resulting in whole number pricing that was easier to understand and apply for our customers. As a result, some fees increased while others decreased, with the overall revenue increase remaining consistent with the previous per-fee formula.
In our Services segment, we expect the growth of ESC''s core business to continue in specific categories relating to the financial services and legal sectors in both its core markets of Ontario and Quebec. The expectation is that the growing base of new customers, as well as new mandates from existing customers, will continue to support overall revenue growth. We expect a continued focus on cost efficiencies to improve margins.
The key drivers of expenses will continue to be wages, salaries and information technology costs. The Company will continue to manage its costs prudently while balancing re-investment in the business in order to maintain or improve the customer experience.
Management expects capital expenditures in 2016 to be in the range of $5.0 million to $6.0 million, funded from operating cash flow. These expenditures are projected to include the completion of the renewal and enhancement of our Corporate Registry technology, enhancement and upgrades to core technology components and enterprise systems, additions to intangible assets and general office improvements.
Note to Readers
This news release provides a general summary of Information Services Corporation''s results for the first quarters ended June 30, 2016 and 2015. Readers are encouraged to download the Company''s complete financial disclosures. Links to ISC''s financial statements and related notes and Management''s Discussion and Analysis for the period are available on ISC''s website in the Investor section at . All figures are in Canadian dollars unless otherwise noted.
Copies can also be obtained at by searching Information Services Corporation''s profile or by contacting Information Services Corporation at .
Conference Call and Webcast
The Company is hosting a conference call and webcast at 9:00 a.m. Saskatchewan Time; 11:00 a.m. Eastern Time on August 10, 2016 to discuss these results. Dial-in numbers for the conference call are:
1-866-225-6564 or 1-416-406-6419.
A live audio cast of the conference call is available at the following link:
The webcast will be available for replay after the event at .
About ISC
ISC is an experienced provider of registry and information services for government, individuals and private sector business. As the exclusive provider of the land titles, surveys, personal property and corporate registries for Saskatchewan, the Company maintains and operates these registries, which are key supporters of economic activity in the province.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities legislation, including management''s expectations and certain assumptions with respect to the registry services and products, its competitive landscape, economic conditions in Canada and in particular, Saskatchewan, Ontario and Quebec, real estate market in Saskatchewan, economic impact of energy and resource sectors, transaction volumes, statements regarding the future financial position or results of ISC, customer growth and diversification, dividend expectations, creation of shareholder value, growth opportunities, development and completion of projects, impact of cost management efforts, capital and operating expectations, real gross domestic product, changes in high-value property registrations, changes in motor vehicle sales volume, steady growth of active business entities, consolidated EBITDA margin, income taxes, our ability to attract and retain skilled staff, the compensation and benefits that will be paid or provided to employees and our level of customer service, as well as goodwill and intangibles are material factors in preparing forward-looking statements. In addition, the words "may", "will", "would", "should", "could", "expect", "plan", "intend", "trend", "indicate", "anticipate", "believe", "estimate", "predict", "project", "targets", "strive", "strategy", "continue", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases are intended to identify forward-looking statements. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Although ISC believes the forward-looking information contained in this release is based upon reasonable assumptions, readers are cautioned not to place undue reliance on forward-looking information as it is inherently uncertain and no assurance can be given that the expectations reflected in such information will prove to be correct. Many factors and risks could cause our actual results to differ materially from those expressed or implied by forward-looking information including those detailed in ISC''s Annual Information Form, dated March 15, 2016, ISC''s Consolidated Financial Statements and Notes and Management''s Discussion and Analysis for the quarter ended June 30, 2016 as well as other documents filed by ISC with Canadian securities regulators through SEDAR at from time to time. Investors and others should carefully consider the above-noted factors and risks and other uncertainties and potential events. The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, ISC assumes no obligation to update or revise such information to reflect new events or circumstances.
Contacts:
Jonathan Hackshaw
Director, Investor Relations & Corporate Communications
Information Services Corporation
306-798-2136
Pamela Keck
Manager, Investor Relations
Toll Free: 1-855-341-8363 in North America or 1-306-798-1137
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Datum: 09.08.2016 - 18:52 Uhr
Sprache: Deutsch
News-ID 1451659
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