Solium Capital Inc.

Solium Capital Inc.

May 17, 2011 20:20 ET

Solium Capital Inc. Releases 2011 First Quarter Results

CALGARY, ALBERTA--(Marketwire - May 17, 2011) - Solium Capital Inc. ("Solium" or the "Company") (TSX:SUM) today announced its financial results for the first quarter ended March 31, 2011.

Revenue and net earnings for the first quarter ended March 31, 2011 increased over the comparable periods in the previous year. The addition of the business acquired from Computershare Inc. ("Computershare") in November 2010 positively impacted revenue and earnings from operations for the quarter. In addition, strong participant share trading activity boosted transaction based revenue and earnings from operations in the first quarter. Net earnings per share increased 93% to $0.054 in the first quarter ended March 31, 2011 compared to the same quarter of the previous year.

Financial results for the quarter ended March 31, 2011:

Three Months Ended March 31,
2011120101% Change
Adjusted EBITDA2$3,962,176$1,458,118172%
Earnings from operations$2,901,138$1,325,714119%
Earnings before taxes$2,915,439$1,276,744128%
Net earnings$2,259,424$860,445163%
Net earnings per share
Issued and outstanding
Common shares41,531,82331,112,15733%
  1. The financial statements for the period ended March 31, 2011 have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The Company adopted IFRS as at January 1, 2011 with a transition date of January 1, 2010. The comparative figures for 2010 have been restated to comply with IFRS and are presented accordingly.
  2. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a non-IFRS financial measure which does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. Adjusted EBITDA provides useful information to users as it reflects the net earnings prior to the effect of non-operating expenses such as interest, tax, amortization, and foreign exchange gain or loss. Management uses Adjusted EBITDA in measuring the financial performance of the Company . Management monitors Adjusted EBITDA against budget and past results on a regular basis. The measure is a key component in determining the annual bonus pool for staff and management.
The following is a reconciliation of Adjusted EBITDA to net earnings:
Three months ended March 31
Adjusted EBITDA
Foreign exchange gain (loss)
Interest expense
Amortization expense
Income tax expense
Net earnings2,259,424860,445
  1. Diluted earnings per share is calculated using the treasury stock method.
  1. Diluted shares as presented equals issued and outstanding common shares plus outstanding stock options and restricted share units.
  • Revenue from Canadian operations was $6.6 million in the first quarter of 2011 (2010: $4.2 million), while revenue from U.S. operations was $6.5 million in the first quarter of 2011 (2010: $1.6 million).
  • Adjusted EBITDA in Canada was $2.5 million in the first quarter of 2011 (2010: $1.4 million), while Adjusted EBITDA in the U.S. was $1.5 million (2010: $106,249).
  • Net earnings from Canadian operations were $2.0 million in the first quarter of 2011 (2010: $816,730), while net earnings from U.S. operations were $216,535 (2010: $43,715). The amortization of intangible assets is predominantly attributable to the U.S. operations.
  • Net earnings per share was $0.054 in the first quarter of 2011 (2010: $0.028).
  • During the three months ended March 31, 2011, the Company had a net cash outflow of $960,764 (2010: outflow $2.1 million). Cash generated from operations of $4.0 million during the first quarter of 2011 (2010: $1.2 million) was offset mainly by the payout of 2010 year-end bonuses, the payment of 2010 income taxes, the payment of $1.1 million due to Computershare (2010: $Nil), and the purchases of capital assets of $786,650 (2010: $54,323).
  • Working capital as at March 31, 2011 was $7.3 million (December 31, 2010: $5.5 million).

About Solium Capital Inc.

Solium Capital Inc. (TSX:SUM) provides online equity-based incentive and savings plan administration products to companies to automate and manage their grant based and savings plans. Solium is setting the industry standard for service excellence, industry knowledge and innovative technical leadership. Solium's technology platform, Shareworks, is a leading online solution that integrates the management of multiple equity plan types including stock options, share units, and employee share purchase plans on one comprehensive platform.

The Management's Discussion and Analysis and the condensed interim financial statements for the three months ended March 31, 2011 referred to herein will be available on SEDAR at under Solium Capital Inc., or at

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