- Provides registry and information management services for public data and records
- Multiple acquisitions have bolstered footprint and growth
- Services and technology solutions segments gaining traction
Information Services Corp (TSE:ISV) provides registry and information management services for public data and records and is focused on sustaining the core registry business while pursuing new growth opportunities.
The Saskatchewan-based firm has a host of diversified, yet complementary revenue streams through its three business segments: Registry Operations, Services, and Technology Solutions.
Under its registry segment, the group manages and operates the Saskatchewan Land Registry on behalf of the government of Saskatchewan under a 20-year deal.
Its services business comes via subsidiary ESC Corporate Services Ltd, which delivers solutions uniting public record data, customer authentication, among others to support lending practices of clients with business across Canada.
The tech segment is delivered via wholly-owned subsidiary Enterprise Registry Solutions Limited (ERS), which offers RegSys that provides a transferable technology platform capable of serving a wide range of registry needs.
Information Services Corp has offices in eight Saskatchewan communities: Humboldt, Moose Jaw, North Battleford, Prince Albert, Regina, Saskatoon, Swift Current and Yorkton. The company works with both governments and private sector organizations seeking information management services.
How is it doing:
In March, Information Services Corp announced a 2.8% increase in its fISCal 2020 revenue to $136.7 million, which it attributed to strong growth in its Registry Operations, new customer growth in its Services division, and the addition of new Recovery Solutions revenue with its acquisition of Paragon.
The company also noted that its net income for the year rose to $20.9 million from $19.4 million in 2019, as its cash balance climbed more 43% during 2020 to $33.9 million as of December 31.
For 4Q 2020, Information Services Corp recorded revenue of $39.0 million, a $1.1 million increase from the same period last year, as its net income edged up to $7.9 million from $7.3 million in the comparable quarter of 2019.
Paragon, which it acquired in August via its wholly-owned subsidiary ESC Corporate Services Ltd for about C$70 million, is a tech-enabled company that facilitates asset recovery on behalf of Canada's major banks. Asset recovery often takes the shape of identification, retrieval and disposition of movable assets like cars, boats, aircraft and other physical assets used as collateral in transactions.
In addition, Information Services Corp said it is continuing to invest in the technology supporting its Services segment and its transition away from legacy platforms to optimize the customer experience through automation to reduce the cost of delivery.
Inflection points:
- More contract awards, deals
- Ongoing growth in services, technology
Commenting on the company’s fiscal 2020 financial results, Information Services Corporation CEO Jeff Stusek said in a statement: “There is no question that 2020 was a remarkable year for ISC even though we all faced challenges due to the global pandemic. Our Registry Operations business continues to be a strong free cash flow generator and a world-leading example of how core public registries should be run.”
Stusek added: “Following the acquisition of Paragon and new business wins, our Services business became a major contributor to our free cash flow alongside Registry Operations, further strengthening the foundation of our consolidated business. Technology Solutions is continuing to gain traction as a key piece of our portfolio by successfully completing implementations in several jurisdictions during the year.”
Contact Sean at sean@proactiveinvestors.com