![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Information Services Corporation | TSX:ISV | Toronto | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.01 | 0.04% | 25.82 | 25.80 | 27.50 | 25.86 | 25.80 | 25.86 | 2,191 | 22:00:00 |
REGINA, March 19, 2014 /CNW/ - Information Services Corporation (TSX: ISV) ("ISC" or "the Company") today reports on the Company's financial results for the fourth quarter and year ended December 31, 2013.
Highlights of ISC's financial results:
Fourth Quarter 2013
Full-Year 2013
Commenting on the Company's annual results, Jeff Stusek, President and CEO stated, "2013 was an important year for ISC. The Company underwent significant changes as an organization, but, most importantly, we continued to serve our customers without interruption. It is in this context that I would like to recognize the contributions of the entire team at ISC, who made our change appear seamless while ensuring the delivery of a solid financial performance."
"With privatization now behind us, our focus is to ensure that we continue to provide the same high levels of satisfaction to all our customers and maintain a strong balance sheet, while judiciously exploring opportunities to create added value for our existing and potential customers as well as value for shareholders."
Management's Discussion of ISC's Summary Quarterly and Annual Financial Results
(Thousands of CAD dollars, except earnings per share and where noted) |
Three months ended December 31, |
Year ended December 31, |
||
2013 | 2012 | 2013 | 2012 | |
Revenue1 | ||||
Land Registry, Land Survey and Geomatics |
$15,688 | $14,311 | $61,141 | $57,920 |
Personal Property Registry |
$2,358 | $2,148 | $9,787 | $9,083 |
Corporate Registry | $1,982 | $1,811 | $8,170 | $8,157 |
Other | $11 | $10 | $33 | $56 |
Total Revenue1 | $20,039 | $18,280 | $79,131 | $75,216 |
EBITDA2 | $8,330 | $6,659 | $30,554 | $28,794 |
EBITDA Margin2 (% of Revenues) | 41.6% | 35.3% | 38.1% | 37.2% |
Adjusted EBITDA2 | $8,395 | $6,972 | $34,008 | $30,167 |
Adjusted EBITDA Margin2 | 41.9% | 38.1% | 43.0% | 40.1% |
Net Income and total comprehensive income |
$4,743 | $5,028 | $76,981 | $21,240 |
Earnings per share3 | $0.41 | - | $4.40 | - |
Free cash flow2 | - | - | $23,208 | $22,561 |
Operating, general and administrative expenses |
$11,709 | $11,308 | $47,822 | $45,049 |
Outlook:
In 2014, ISC is focused on delivering stable returns through a focus on cost management while ensuring continuous compliance with the Master Service Agreement ("MSA") and publicly traded company requirements and investigating growth opportunities. ISC has demonstrated operational excellence for many years and it is an important objective to ensure this focus on strong operational and financial results continues.
As the majority of our revenues, including those related to the Land Titles Registry, Land Surveys, the PPR and the Corporate Registry, are tied to economic conditions, we use general forecast economic information to help predict our revenues. Key drivers of favorable macro-economic conditions in the province that support the growth of ISC revenue growth include the continuation of a low interest rate environment, which encourages new home purchases and resale transactions, strong consumption patterns and high levels of private capital investment.
In that regard, prevailing economic conditions in Saskatchewan are generally expected to continue in 2014 driving positive growth in gross domestic product ("GDP"). According to Bank of Montreal ("BMO") Capital Markets'1 most recent economic forecast for Saskatchewan, the provincial economy is expected to post real GDP growth of 2.4 per cent growth in 2014. Royal Bank of Canada ("RBC") Economics Research2 projection for 2014 is currently 2.1 per cent.
Business confidence in Saskatchewan remains at levels similar to the historical average over the past five years, around 68.4, according to The Canadian Federation of Independent Business ("CFIB")'s business barometer3 for the province. This level of optimism may encourage new businesses to form; however, this may be constrained by Saskatchewan's tight labour supply, which is cited as one of the greatest impediments to current sales and production growth.
Employment growth was up 3.5 per cent for the first eleven months, with 18,600 jobs being added. Weekly earnings rose 3.2 per cent in the first ten months of 2013 to $946.37. Manufacturing sales rose 6.4 percent to $12.8 billion in the first ten months of 2013. A record 38.4 million tonne crop was produced in 2013, resulting in exports of $27.2 billion from January to October.
___________________________________
1 BMO Capital Markets Economics - Provincial Economic Outlook - February
2014
2 RBC Economics Provincial Outlook - December 2013
3 CFIB Economics Business Barometer - Provincial Summary - December 2013
Despite these records, the economy has experienced some setbacks, which will likely dampen growth expectations somewhat in 2014. Crown land oil lease sales were down 40 per cent from the province's March estimates and may be an indication that activity in this sector will decline in 2014, which could result in slower growth across the province. Global commodities prices are declining and logistical challenges may make it more difficult to reach export markets, which could have a negative impact on different sectors of the Saskatchewan economy in 2014.
With respect to ISC's offerings, Canada Mortgage and Housing Corporation ("CMHC") Housing Market Outlook4 currently forecasts a slight increase in existing home sales volumes in Saskatchewan for 2014. Average home resale prices are expected to increase marginally in 2014 by 2.4 per cent. While mortgage rates have begun to increase modestly, they are forecast to remain favorable in 2014, all of which impacts our land registry revenues.
For ISC's PPR, patterns of retail trade and new vehicle sales provide a useful metric for expected revenues in the PPR. From January to November 2013, retail trade5 in Saskatchewan grew 3.3 per cent over the same period in 2012. New vehicle sales increased 5.3 per cent from January to November 2013 compared to the same period in 2012, while the value of vehicle sales grew 11.8 per cent over the same period.
To our flat fees, the MSA and related Registry Operating Agreements specify the maximum fees allowed to be charged to the public for particular Core Registry Services. The maximum fees are adjustable on a yearly basis and are based on a formula tied to inflation as measured by the Saskatchewan Consumer Price Index published by Statistics Canada6. These adjustment provisions do not apply to any value-based fees. There are no restrictions on the fees we may charge for non-core Ancillary Services that use registry data. ISC expects to generally adjust prices as outlined in the MSA.
The key drivers of our expenses will continue to be wages and salaries, information technology and project initiatives costs as we continue to focus on efficiency and effectiveness, leveraging investment in systems and processes while maintaining a high level of customer service. We expect our operating, general and administrative expenses to modestly increase based on inflation and in connection with becoming a publicly traded company and as we expand our business.
In 2013, EBITDA margins were unusually high as a result of our focus on the IPO and not on operational initiatives and project work. Adjusted EBITDA margins in 2014 should return to more normal levels of approximately 35 per cent. One of our objectives will be to grow margins by approximately 0.5 per cent per year over the next several years, primarily through operational efficiencies.
As a result of the above economic factors and potential fee adjustments, our revenues are expected to remain stable in 2014 and EBITDA margins are expected to return to the more normal level of 35 per cent.
___________________________________
4 CMHC Housing Market Outlook - Canadian Edition - First Quarter 2014
5 Statistics Canada (CANSIM Table 079-0003: New motor vehicle sales,
Canada, provinces and territories), Statistics Canada, (CANSIM, table 080-0020: Retail trade, by province and territory (Monthly- Seasonally Adjusted)
6 Statistics Canada, CANSIM, table 326-0021 and Catalogue nos. 62-001-X and 62-010-X
Capital investment will be aligned to our strategic priorities and will focus on initiatives that:
Management expects its capital expenditures to be in the $8.0 to $10.0 million range in 2014. As demonstrated by our automation of the survey plan processing system, we remain committed to increasing the level of automation in our work flows and developing new technologies that lower overall costs.
Looking forward into 2014 our capital expenditures are expected to include ongoing renewals of systems and technology hardware. One of our more significant expenditures is expected to be the modernization of the Corporate Registry, and we now expect this initiative to extend beyond the end of 2014.
Note to Readers:
This news release provides a general summary of Information Services Corporation's results for the fourth quarters and years ended December 31, 2013 and 2012. Readers are encouraged to download the Company's complete financial disclosures. Links to ISC's financial statements and related notes and Management's Discussion and Analysis for the period are available on ISC's website in the Investor section of the site at http://isc.investorroom.com/annual-reports All figures are in Canadian dollars unless otherwise noted.
Copies can also be obtained at www.sedar.com by searching Information Services Corporation's profile or by contacting Information Services Corporation at investor.relations@isc.ca
Conference Call And Webcast
The Company is hosting a conference call and webcast at 9:00 a.m. Saskatchewan Time; 11:00 a.m. Eastern Time on March 20, 2014 to discuss these results. Dial-in numbers for the conference call are:
1-416-764-8609 or toll-free at 1-888-390-0605.
A live audiocast of the conference call is available at the following link: http://www.newswire.ca/en/webcast/detail/1316261/1453381
A replay of the call will be available 24 hours after the event until 11:59 p.m. EST on April 24, 2014, at http://isc.investorroom.com/events. To access the archived conference call, please dial 1-888-390-0541 and enter passcode 941465.
About ISC
ISC is a provider of registry and information services to the Province of Saskatchewan. The Company is the exclusive provider of the Land Titles Registry, Land Surveys Directory, Personal Property Registry and Corporate Registry in Saskatchewan, which are key supporters of economic activity in the province.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities legislation, including certain assumptions with respect to the Saskatchewan economy, consumer confidence, interest rates, level of unemployment, inflation, real estate market in Saskatchewan, claim liabilities, income taxes, our ability to attract and retain skilled staff, employee future benefits, goodwill and intangibles are material factors in preparing forward-looking statements and management's expectations. 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. Although ISC believes the forward-looking information contained in this release is based upon reasonable assumptions, readers are cautioned not to place undue reliance on forward-looking information as it is inherently uncertain and no assurance can be given that the expectations reflected in such information will prove to be correct. Many factors and risks could cause our actual results to differ materially from those expressed or implied by forward-looking information including those detailed in ISC's Annual Information Form, dated March 19, 2014, ISC's Consolidated Financial Statements and Notes and Management's Discussion and Analysis for the year-ended December 31, 2013 as well as other documents filed by ISC with Canadian securities regulators through SEDAR (www.sedar.com) from time to time. Investors and others should carefully consider the above-noted factors and risks and other uncertainties and potential events. 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.
SOURCE Information Services Corporation
Copyright 2014 Canada NewsWire
1 Year Information Services Chart |
1 Month Information Services Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions