ISC® Provides Outlook and Annual Guidance for 2019
REGINA, Saskatchewan, Feb. 04, 2019 (GLOBE NEWSWIRE) — Information Services Corporation (TSX:ISV) (“ISC®”, “we” or the “Company”) today announced its outlook and annual guidance for 2019.
Highlights – Consolidated Annual Guidance 2019
- Revenue is expected to be between $129.0 million and $135.0 million
- Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is expected to be between $31.0 million and $35.0 million
- EBITDA margin is expected to be between 24.0 per cent and 27.0 per cent
- Capital expenditures are expected to range between $2.0 million and $4.0 million
The diversification of our business remains a key part of our strategy driven by the positive impact our Services segment is having on the business overall. In 2019, ISC will continue to look for efficiencies across the business, drive the organic growth of all our segments by winning new business and explore appropriate acquisition targets which are complementary to or add value to our existing lines of business.
ISC anticipates consolidated revenue growth in 2019 to be driven by its Services segment through the continuing expansion of our collateral management services, including further automation of the fulfillment of these services, thereby reducing our cost of delivery.
The Registry Operations segment is expected to remain a strong free cash flow contributor and a direct beneficiary of any future upswing in economic conditions in Saskatchewan. ISC will continue to monitor economic conditions while always looking for greater operational efficiencies. Should there be further increases to interest rates in 2019, this could place further downward pressure on transaction volumes.
In Technology Solutions, as projects for contracts the Company signed in 2018 move into the implementation phase in 2019, ISC expects to begin to recognize increased revenue from those contracts.
The key drivers of expenses will continue to be wages and salaries, cost of goods sold and information technology costs as well as costs associated with the pursuit of new business opportunities. We also expect to spend between $2.0 million and $4.0 million on business as usual capital expenditures.
EBITDA and EBITDA margin are not recognized as measures under International Financial Reporting Standards (“IFRS”) and do not have a standardized meaning prescribed by IFRS and, therefore, they may not be comparable to similar measures reported by other corporations. Please refer to section 21 “Non-IFRS Financial Measures” and section 9 “Financial Measures and Key Performance Indicators” in Management’s Discussion and Analysis for the three and nine months ended September 30, 2018.
Headquartered in Canada, ISC® is the leading provider of registry and information management services for public data and records. Throughout our history, we have delivered value to our clients by providing solutions to manage, secure and administer information through our Registry Operations, Services and Technology Solutions segments. ISC® is focused on sustaining its core business while pursuing new growth opportunities. The Class A Shares of ISC® trade on the Toronto Stock Exchange under the symbol ISV.
Cautionary Note Regarding Forward-Looking Information
This news release includes certain forward-looking information within the meaning of applicable Canadian securities legislation including, without limitation, expectations with respect to revenue, EBITDA, EBITDA margin and capital expenditures. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include risks relating to changes in economic, market and business conditions, reliance on key customers and licences, dependence on key projects and clients, securing new business and fixed-price contracts, identification of viable growth opportunities, implementation of our growth strategy, competition and other risks detailed from time to time in the filings made by the Company including those detailed in ISC’s Annual Information Form dated March 13, 2018 and ISC’s unaudited Condensed Consolidated Interim Financial Statements and Notes and Management’s Discussion and Analysis for the third quarter ended September 30, 2018, copies of which are filed on SEDAR at www.sedar.com.
The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, ISC® assumes no obligation to update or revise such information to reflect new events or circumstances.
Director, Investor Relations & Capital Markets
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