Sylogist Ltd.
TSX VENTURE : SYZ

Sylogist Ltd.

January 21, 2015 16:59 ET

Sylogist Announces Fiscal 2014 Results: Revenue Grows 51%, Adjusted EBITDA Increases 15%, Balance Sheet Strengthened: Key Investments Position Company for Further Growth

CALGARY, ALBERTA--(Marketwired - Jan. 21, 2015) -

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Sylogist Ltd. (TSX VENTURE:SYZ) ("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, 2014.

In fiscal 2014:

  • Revenues increased 51% to $17.5 million from $11.6 million in fiscal 2013.

  • Key investments were made in the business, notably the acquisition of the "Serenic" operating companies on July 28, 2014.

  • Adjusted EBITDA increased 15% year over year, to $5.5 million from $4.8 million, or $0.26 per share versus $0.24 in the previous year.

  • Profit for fiscal 2014 decreased to $3.1 million from $4.3 million in fiscal 2013, principally resulting from increased amortization and stock option compensation costs, as well as acquisition related costs, partially offset by a deferred tax recovery.

  • Sylogist completed the acquisitions of Weave Corp. and the Serenic operating companies in fiscal 2014.

  • Cash and short-term investments as at September 30, 2014 totalled $42.1 million, compared to $9.7 million in the prior period. Sylogist has no debt.

  • Adjusted Working Capital (net of deferred revenue) was $41.2 million or $1.65 per share outstanding at year end.

  • Combined tax pools at the end of fiscal 2014 stood at approximately $38.5 million (CDN).

  • Dividends payments in fiscal 2014 totaled $4.4 million.

  • $15 million was invested in acquisitions and integration of those operations in fiscal 2014.

"Sylogist experienced strong revenue growth in fiscal 2014, with a full year of Epic Data operations and late in the year, with 2 months of Serenic's revenue. Significant investments were made in the integration of operations and updating platforms, principally bringing Bellamy Software and Weave together, both as an operating division and as the only single source, comprehensive public sector SaaS based ERP offering in Canada. We invested in making some of our products, notably our Business Analytics Suite and Fuel Management Systems, available to broader audiences in their respective markets. The addition of the Serenic operations have created a large market presence and opportunity for us in the public sector, non- governmental and not-for-profit spaces in the United States and a number of international markets.

Importantly, Brian Grassby joined us as CFO, to lead the finance team, and we appointed 3 Managing Directors to oversee each of our platform business units; Bellamy Software, Epic Data and Serenic Software. With our new management structure, we are well positioned to address our growth, which on a revenue run- rate basis, has more than doubled in the past year. The two financings completed in fiscal 2014 bolstered our balance sheet to pursue more significant acquisitions and internal investments. The growth in our platform business units and the continuing development of our venture investments in Business Intelligence/Analytics, Fuel Management, Meeting Management and Logistics/Quality Assurance are expected to contribute to meaningful growth in fiscal 2015." 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 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.

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 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 include 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

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