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Press release from Marketwire

Solium Capital Inc. Releases 2010 Fourth Quarter and Year-end Results

Monday, March 28, 2011

Solium Capital Inc. Releases 2010 Fourth Quarter and Year-end Results08:00 EDT Monday, March 28, 2011CALGARY, ALBERTA--(Marketwire - March 28, 2011) - Solium Capital Inc. ("Solium" or the "Company")(TSX:SUM) today announced its financial results for the fourth quarter and year ended December 31, 2010. Revenue and earnings for the fourth quarter and year ended December 31, 2010 increased over the comparable periods in the previous year. An increase in participant share trading activity was the largest contributor to the increase in revenue and earnings for the fourth quarter and year ended December 31, 2010 as compared to the same periods from 2009. Earnings for the fourth quarter and the year ended December 31, 2010 were also positively impacted by the completion of a business acquisition in November 2010. Results for the year ended December 31, 2010 were adversely impacted by one-time costs totaling approximately $340,000 relating to the Company's U.S. head office relocation from Michigan to Arizona. 2010 was characterized by a moderate recovery of participant share trading and associated transaction activity as the share prices of many clients gained strength over the prior year. Along with the increase in transaction volumes, transaction based revenues increased compared to prior year periods. Financial results for the quarter and year ended December 31, 2010:Three Months Ended December 3120102009% ChangeRevenue$9,663,590$5,061,45791%Expenses$8,416,155$4,283,57296%EBITDA1$2,149,272$893,228141%Earnings from operations$1,459,995$814,89279%Earnings before taxes$1,247,435$777,88560%Net earnings$714,541$387,05885%Net earnings per share Basic$0.019$0.01258% Diluted2$0.019$0.01258%Issued and outstanding Common shares Diluted3Year Ended December 3120102009% ChangeRevenue$26,913,543$19,691,47837%Expenses$22,913,598$16,616,46638%EBITDA1$5,348,410$3,783,92041%Earnings from operations$4,258,292$3,320,31728%Earnings before taxes$3,999,945$3,075,01230%Net earnings$2,355,843$1,722,97437%Net earnings per shareBasic$0.072$0.05629%Diluted2$0.072$0.05531%Issued and outstandingCommon shares41,479,41831,105,27933%Diluted344,530,440 33,816,77932%Notes: 1 Earnings before interest, taxes, depreciation and amortization ("EBITDA") is a non-GAAP financial measure which does not have any standardized meaning prescribed by Canadian GAAP (generally accepted accounting principles) and is therefore unlikely to be comparable to similar measures presented by other issuers. EBITDA provides useful information to users as it reflects the net earnings prior to the effect of non-operating expenses such as interest, tax, depreciation and amortization. Management uses EBITDA in measuring the financial performance of the Company. Management monitors EBITDA against budget and past results on a regular basis. The measure is a component in determining the annual bonus pool for staff and management. The following is a reconciliation of EBITDA to net earnings:Three months ended December 31Year ended December 312010200920102009EBITDA2,149,272893,2285,348,4103,783,920Interest expense Amortization expense Income tax expense(197,703) (704,134) (532,894)(8,324) (107,019) (390,827)(204,775) (1,143,690) (1,644,102)(53,665) (655,243) (1,352,038)Net earnings714,541387,0582,355,8431,722,974Diluted earnings per share is calculated using the treasury stock method. Diluted shares as presented equals issued and outstanding common shares plus outstanding stock options and restricted share units. BUSINESS DEVELOPMENTOn November 8, 2010, the Company completed the acquisition of substantially all of the assets used by Computershare Inc. ("Computershare") to provide record keeping and administrative services for grant based incentive plans and awards to issuers in the United States and Canada. Solium issued 7,775,000 common shares to Computershare, and Computershare may be entitled to additional cash consideration of U.S.$3 million as long as certain revenues are generated by Solium from the acquired assets in the third year after the acquisition. Solium and Computershare also entered into a transition services agreement pursuant to which Solium will pay Computershare an aggregate of U.S.$22 million over five years. HIGHLIGHTS OF FINANCIAL PERFORMANCERevenue from Canadian operations was $5.6 million in the fourth quarter of 2010 (2009 - $3.7 million) and $18.4 million in the year ended December 31, 2010 (2009 - $14.3 million), while revenue from US operations was $4.1 million in the fourth quarter of 2010 (2009 - $1.4 million) and $8.5 million in the year ended December 31, 2010 (2009 - $5.4 million). Total expenses in the fourth quarter of 2010 were $8.4 million (2009 - $4.3 million) and $22.9 million in the year ended December 31, 2010 (2009 - $16.6 million). One-time costs associated with the Company's relocation of its U.S. head office from Michigan to Arizona contributed approximately $340,000 of expenses to the year ended December 31, 2010. Cash on hand as at December 31, 2010 was $12.5 million (December 31, 2009 - $5.7 million). Cash increased by $6.8 million during the year ended December 31, 2010 (2009 - $3.5 million). Cash generated from operations was $4.1 million in 2010 (2009 - $3.0 million), which was offset by working capital used for operating activities of $2.7 million (2009 – positive $1.6 million). Cash generated from financing activities was $2.5 million in 2010 (2009 – negative $1.0 million) as a result of a private placement which closed in November 2010. Cash generated from investing activities was $2.4 million (2009 – negative $223,000) resulting from $4.0 million of cash acquired in the Computershare transaction offset by capital expenditures of $1.6 million. Working capital as at December 31, 2010 was $5.4 million (December 31, 2009 - $4.7 million). About Solium Capital Inc.Solium Capital Inc. (TSX:SUM) provides online equity-based incentive and savings plan administration products to companies to automate and manage their grant based and savings plans. Solium is setting the industry standard for service excellence, industry knowledge and innovative technical leadership. Solium's technology platform, Shareworks, is a leading online solution that integrates the management of multiple equity plan types including stock options, share units, and employee share purchase plans on one comprehensive platform.The Management's Discussion and Analysis and the consolidated financial statements for the year ended December 31, 2010 referred to herein are available on SEDAR at www.sedar.com under Solium Capital Inc., or at www.solium.com. FOR FURTHER INFORMATION PLEASE CONTACT: Solium Capital Inc.Media Contacts:Mike Broadfoot, CEO and Managing Director(403) 515-3910 or (877) 380-7793investorrelations@solium.comORLynn Leong, EVP, Finance &AdminSolium Capital Inc.(403) 450-6015(877) 380-7793investorrelations@solium.com