Press release from CNW Group
Sylogist Q2 Fiscal 2013 Results: Continued Strong Increases in Revenue, EBITDA(1), Cash Flow, Profit
Thursday, May 16, 2013
Sylogist Q2 Fiscal 2013 Results: Continued Strong Increases in Revenue, EBITDA(1), Cash Flow, Profit17:00 EDT Thursday, May 16, 2013
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CALGARY, May 16, 2013 /CNW/ - Sylogist Ltd. (TSXV:SYZ) ("Sylogist" or the "Company"), a provider of enterprise application solutions to public and private sector customers, announces its unaudited financial results for the second quarter ended March 31, 2013.
In Q2 of Fiscal 2013:
- Revenues were $2.7 million, 18% higher than the quarterly average in fiscal 2012.
- EBITDA(1) was $1.5 million ($0.08 per share), a 60% increase when compared to a quarterly average of $0.9 million in the previous year.
- Cash flow from operations was $1.4 million, a 52% improvement over the fiscal 2012 quarterly average.
- Net income before tax increased to $1.3 million or $0.07 per fully diluted share, a 77% gain over the quarterly average of $ 0.7 million in fiscal 2012.
- Gross profit margins increased from 71% to 80% of revenue compared to fiscal 2012.
In the first 6 months of Fiscal 2013:
- Revenues were $5.5 million, 19% higher than the six month average in fiscal 2012.
- EBITDA(1) was $3 million ($0.16 per share), a 62% increase when compared to a six month average of $1.9 million in the previous year.
- Cash flow from operations was $3.1 million, a 66% improvement over the fiscal 2012 six month average.
- Net income before tax increased to $2.6 million or $0.14 per fully diluted share, a 75% gain over the six month average of $1.5 million in fiscal 2012.
- Gross profit margins increased from 71% to 79% of revenue compared to fiscal 2012.
- Cash and short-term investments as at March 31, 2013 totalled $15 million or $0.78 per share.
- Working capital (net of deferred revenue) was $16 million or $0.83 per share.
- Federal tax pools at the end of Q2 fiscal 2013 stood at $3.5 million.
"Profit in the first six months of fiscal 2013 nearly matched the profit for the entire 12 month period in fiscal 2012. The second quarter results continued the strong increases achieved in the first quarter. With the pending acquisition of Epic Data, we foresee further material increases in financial performance commencing in our fourth quarter. We expect these results to exceed the trend established in the first six months of fiscal 2013." stated Jim Wilson, Chairman, President and CEO.
Sylogist is a technology innovation company which, through strategic acquisitions, investments and operations management, provides intellectual property solutions to a wide range of public and private sector customers.
(1)EBITDA and Cash Flow from Operations are a non-IFRS financial measure: earnings before stock based compensation, interest, income taxes, depreciation and amortization.
(2) Per share calculations are based on the weighted average number of shares outstanding at March 31, 2013.
Full financial statements together with Management's Discussion and Analysis are available on SEDAR. The Company's stock is traded on the TSX Venture Exchange under the symbol SYZ. Information about Sylogist can be found at http://www.sylogist.com.
This news release contains forward-looking statements relating to the future operations and profitability of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects", "believe", "will", "intends", "plans" and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. More particularly and without limitation, this press release contains forward-looking information concerning: the anticipated benefits of the acquisition of Epic Data International Ltd. ("Epic Data") to Sylogist. Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Investors are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. In respect of the forward-looking information and statements concerning the anticipated benefits and completion of the proposed acquisition of Epic Data, Sylogist has provided such in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the ability of Epic Data to receive, in a timely manner, the necessary regulatory, court, shareholder, stock exchange and other third party approvals; the ability of each of Sylogist and Epic Data to satisfy, in a timely manner, the other conditions to the closing of the Transaction; and expectations and assumptions concerning, among other things: commodity prices and interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; applicable tax laws; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; the success of growth projects; future operating costs; that counterparties to material agreements will continue to perform in a timely manner; that there are no unforeseen events preventing the performance of contracts; and that there are no unforeseen material construction or other costs related to current growth projects or current operations. Circumstances and assumptions may change for a number of reasons and, accordingly, readers should not place undue reliance on the forward-looking information contained in this press release.
Since forward-looking information addresses future events and conditions, such information by its very nature involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the industries in which each of Sylogist and Epic Data operate in general such as: costs and expenses; commodity price, interest rate and exchange rate fluctuations; competition; failure to realize the anticipated benefits of the acquisition and to successfully integrate each of Sylogist and Epic Data; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws. Risks and uncertainties inherent in the nature of the acquisition include the failure of Epic Data to obtain necessary shareholder, regulatory, court and other third party approvals, or to otherwise satisfy the conditions to the acquisition, in a timely manner, or at all. Failure to so obtain such approvals, or the failure of each of Sylogist and Epic Data to otherwise satisfy the conditions to the acquisition, may result in the acquisition not being completed on the proposed terms, or at all.
Readers are cautioned that the foregoing list of factors is not exhaustive. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Sylogist does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
- Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release-
SOURCE: Sylogist Ltd.
For further information:
Jim Wilson, President and CEO