Information Services Corporation (TSX:ISV) (ISC) has reported a 14% increase in second-quarter revenue to $50.9 million from a year ago, buoyed by a booming real estate sector in Saskatchewan and new customer acquisitions.
The leading provider of registry and information management services for public data and records said it now expects full-year revenue of between $188 million and $193.0 million.
"Our results for the second quarter and first half of the year are a testament to the strength of our company. Our Services segment continues to grow through new customer acquisitions as well as challenge Registry Operations for the top spot in our revenue profile for the second quarter running,” ISC president and CEO Shawn Peters said in a statement.
“Most importantly, we continue to deliver a healthy bottomline with EBITDA up year-over-year for both the quarter and the first six months of the year,” he added.
READ: Information Services Corporation appoints Susan Bowman as head of subsidiary ERS
ISC said it posted net income of $11.7 million or $0.66 per basic share and $0.65 per diluted share for the quarter ended June 30, 2022, compared to $6.5 million or $0.37 per basic share and $0.36 per diluted share in the year-ago quarter.
EBITDA in the second quarter was $20.5 million compared to $13.5 million a year earlier, while EBITDA margin for the second quarter was 40.2% compared to 30.4% a year ago.
The company had cash of $27.1 million at the end of June 2022, down from $40.1 million at the end of December 2021. Total debt was higher at $81.5 million from $41.0 million as at December 31, 2021.
Operational highlights
Revenue from Registry Operations was little changed at $24.5 million in the second quarter of 2022, ISC said, noting that the segment remains a strong and consistent cash flow generator.
The company said Services recorded revenue of $24.9 million from $4.8 million a year earlier, and expects the segment to continue delivering customer and transaction growth in 2022, fueled by technology advancements which will drive operational efficiency and new product innovation.
The Technology Solutions segment, meanwhile, reported revenue of $1.5 million, up from $900,000, with the company expecting a number of deferred solution delivery projects to be completed this year.
New annual guidance and dividend
“While our Technology Solutions segment is still recovering from the impact of the pandemic, the appointment of our new Head of ERS, subsequent to the end of the period, along with signs of a renewed focus by governments on their technology solutions procurement, suggest that it will not be long before we start to see this part of our company return to growth mode," CEO Shawn Peters said.
"In conjunction with our earnings today, we updated our annual guidance to include our expectations for Reamined and new growth in our Services segment. As much as we recognize the potential economic challenges that may arise in the coming months, ISC is well positioned to deliver excellent, growing results with an increasing appetite to grow into our balance sheet thoughtfully through additional accretive acquisitions," he added.
In view of the higher revenue guidance for 2022, ISC said it has also upgraded its full-year net income forecast to between $29.0 million and $33.0 million and EBITDA estimate to between $59.0 million and $64.0 million.
Separately, ISC said its board of directors has declared a quarterly cash dividend of $0.23 per Class A Limited Voting Share to be paid on or before October 15, 2022 to shareholders on record as of September 30, 2022.
The company will hold an investor conference call today, August 4, 2022, at 11.00 am ET to discuss the results. To ask questions during the live call, register here.
Contact the author at jon.hopkins@proactiveinvestors.com