CALGARY, Aug. 26, 2013
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CALGARY, Aug. 26, 2013 /CNW/ - Sylogist Ltd. (TSXV:SYZ), a provider of enterprise application solutions to public and private sector customers, announces its unaudited financial results for the third quarter of the 2013 fiscal year ended June 30, 2013.
In Q3 of Fiscal 2013:
- Net income before tax and acquisition costs increased to $1.5 million or $0.08 per fully diluted share, a 128% gain over Q3 in fiscal 2012.
- Cash flow from operations, net of acquisitions costs was $1.6 million ($0.08 per share), a 78% improvement over Q3 in the previous year.
- EBITDA(1) was $1.7 million ($0.09 per share), an 82% increase when compared to the same quarter in the previous year.
- Gross profit margins increased from 71% to 79% of revenue compared to Q3 of fiscal 2012.
- Revenues were $2.9 million, 41% higher than Q3 revenue in fiscal 2012.
- Transaction costs incurred in the quarter that related to the Epic Data acquisition (closed July 1, 2013 after the end of Q3) were $0.3 million.
- Profit after tax was $0.8 million, up 111% compared to Q3 in the previous year.
- Regular quarterly dividend increased to $0.045.
In the first 9 months of Fiscal 2013:
- Net income before tax and acquisition costs increased to $4.1 million or $0.21 per fully diluted share, a 71% gain over the first 9 months in fiscal 2012.
- Cash flow from operations, net of acquisition costs, was $4.7 million ($0.24 per share), a 48% improvement over the first 9 months of 2012.
- EBITDA(1) was $4.7 million ($0.24 per share), a 47% increase over the first 9 months of the previous year.
- Gross profit margins increased from 71% to 79% of revenue compared to fiscal 2012.
- Revenues were $8.4 million, 20% higher than the first 9 months of fiscal 2012.
- Cash and short-term investments as at June 30, 2013 totalled $14.4 million or $0.75 per share.
- Working capital (net of deferred revenue) was $15.4 million or $0.80 per share.
- Federal tax pools at the end of Q3 fiscal 2013 stood at $ 2.7 million.
"Organic revenue increased 41% while after tax profit more than doubled that of a year earlier establishing a strong platform for growth. We are particularly pleased with the incremental EBITDA contribution provided by our growth revenue and cost efficiencies. In the first 9 months, each dollar of organic growth revenue combined with lower cost of sales generated $1.08 of EBITDA. The significant EBITDA contribution made by increased revenue and delivery efficiencies provides visibility to the operating leverage available within Sylogist's business model.
Commencing in the fourth quarter of fiscal 2013, we will report the addition of the Epic Data business (acquired July 1, 2013) within our consolidated results. Epic Data will provide a material change in the level of business activity reported along with decreasing our cash tax costs. We expect our combined results to demonstrate notable growth in the coming quarters." 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".
(1) EBITDA and Cash Flow from Operations are a non-IFRS financial measure: earnings before stock based compensation, acquisition costs, interest, income taxes, depreciation and amortization.
(2) Per share calculations are based on the weighted average number of shares outstanding at year end.
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 -
SOURCE Sylogist Ltd.