Sylogist Ltd.
TSX VENTURE : SYZ

Sylogist Ltd.

January 12, 2016 08:00 ET

Sylogist Announces Fiscal 2015 Results: Revenue Grows 56%, Adjusted EBITDA Increases 74% and Adjusted Earnings Rise 123%

CALGARY, ALBERTA--(Marketwired - Jan. 12, 2016) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

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, 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

Contact Information

  • Sylogist Ltd.
    Jim Wilson
    President and CEO
    (403) 266-4808

    Sylogist Ltd.
    Brian Grassby
    Vice President, Finance and CFO
    (403) 266-4808