Sylogist Ltd.
TSX VENTURE : SYZ

Sylogist Ltd.

February 24, 2015 17:45 ET

Sylogist Q1 2015 Results: 21% Revenue Rise Generates Adjusted EBITDA Margin of 39%

CALGARY, ALBERTA--(Marketwired - Feb. 24, 2015) -

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

Sylogist Ltd. (TSX VENTURE:SYZ), a provider of enterprise information management solutions to public and private sector customers, is pleased to announce its unaudited financial results for the first quarter of the 2015 fiscal year, ended December 31, 2014.

In Q1 of Fiscal 2015:

  • Adjusted EBITDA(1) was $2.4 million, representing 39% of revenue, or $0.10 per outstanding share, compared to $2.2 million or $0.11 per outstanding share for the same period last year.

  • Revenues were $6.1 million compared to $5.1 million in Q1 of the previous year; an increase of 21%.

  • Gross profit increased to $3.9 million compared to $3.2 million in Q1 of fiscal 2014.

  • Cash and short-term investments as at December 31, 2014 totalled $39.3 million or $1.58 per outstanding share.

  • Adjusted Working Capital(1) was $39.7 million or $1.60 per outstanding share.

  • Combined tax pools at the end of December 2014 stood at approximately $37 million (CDN).

  • Reported loss after tax for the period was $183 thousand or $0.01 per outstanding share. The reported loss was the result of higher EBITDA being offset by an increase in non-cash costs (depreciation and amortization, stock based compensation and deferred taxes) of $2.8 million.

  • Dividends of $1.5M or $0.06 per outstanding share were paid in the period.

"Q1 of fiscal 2015 is our first full quarter results that include the recent acquisition of the Serenic operating companies. We are pleased with this acquisition and the contribution it is making. Operationally, we continue to refine and improve processes and expect these changes to positively impact results. We continue to pursue acquisitions that will add to our existing operations and, where synergies exist other platform businesses.

During the past year we deferred opportunities in our Canadian public sector unit and payment solutions operations to invest in our foundational technology, moving Sylogist products well ahead of market competitors. We are encouraged by the early financial success of these investments as noted in our MD&A. The new business bookings recorded in the past two months bode well for growing results in subsequent quarters." 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 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

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