CALGARY, ALBERTA--(Marketwired - Aug. 14, 2014) -
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Sylogist Ltd. (TSX VENTURE:SYZ) ("Sylogist"), a provider of enterprise application solutions to public and private sector customers, announces its unaudited financial results for the third quarter of the 2014 fiscal year ended June 30, 2014.
In Q3 of Fiscal 2014:
- Profit was $1.5 million compared to $0.8 million the previous year, an increase of 76%.
- Revenues were $3.8 million compared to $2.9 million in Q3 of fiscal 2013, an increase of 31%.
- Transaction costs incurred in the quarter that related to the Serenic acquisition (closed July 28, 2014 after the end of Q3) were $0.1 million.
- $15.1 million (gross) equity was raised through a private placement of common shares.
In the first 9 months of Fiscal 2014:
- Profit was $5.3 million ($0.25 per share), an 89% increase over the first 9 months of the previous year.
- Revenues were $12 million, 43% higher than the first 9 months of fiscal 2013.
- Cash and short-term investments as at June 30, 2014 totalled $24.5 million or $1.17 per share.
- Working capital (net of deferred revenue) was $25.2 million or $1.20 per share.
- Combined tax pools at the end of Q3 fiscal 2014 stood at approximately $43 million.
The Board of Directors of Sylogist approved a $0.055 per common share eligible dividend to shareholders of record on August 28, 2014, with the dividend being payable September 11, 2014.
"In the first 9 months of fiscal 2014, revenue increased 43% while after tax profit improved by 89% compared to a year earlier. We are pleased that our earnings per share increased 79% during this high growth period, while we established a more significant sales and administration foundation and made a material investment in reimaging and building our new public sector software platform and new equity was raised.
Commencing in the fourth quarter of fiscal 2014, we will report the addition of the Serenic operating companies (acquired July 28, 2014) within our consolidated results. These newly acquired Serenic operating companies ("SOCs") will provide a material change in the level of business activity to be reported. Had the Serenic acquisition occurred on June 30, 2013, the trailing 12 months combined results for Sylogist and the SOCs' would have generated approximately $28 million in revenue and earnings of approximately $11 million.
Sylogist paid approximately $8.1 million in cash for Serenic and assumed working capital assets of approximately $0.5 million along with deferred revenue liabilities of approximately $4.3 million. In early Q3, Sylogist raised gross proceeds of $15.1 million through a private equity placement to pursue acquisitions and business expansion." stated Jim Wilson, Chairman, President and CEO.
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. Sylogist's stock is traded on the TSX Venture Exchange under the symbol "SYZ".
Full financial statements together with Management's Discussion and Analysis are available on SEDAR.
This news release contains forward-looking statements relating to the future operations and profitability of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Sylogist. As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Sylogist does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities 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-