Sylogist 9 Month Results: Revenue Grows 65%; Adjusted EBITDA Increases 67%; Dividend Declared


CALGARY, ALBERTA--(Marketwired - Aug. 13, 2015) -

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Sylogist Ltd. (TSX VENTURE:SYZ) ("Sylogist" or the "Company"), a provider of enterprise information management solutions to public and private sector customers, is pleased to announce its unaudited financial results for third quarter and first 9 months of its 2015 fiscal year ended June 30, 2015 and declared a $0.0625 per share dividend payable on September 9, 2015 to shareholders of record on August 26, 2015.

Q3 Headlines:

  • Revenues grew 74% to $6.6 million compared to $3.8 million in Q3 of fiscal 2014.
  • Adjusted EBITDA(1) increased by $1.0 million or 71% to $2.4 million ($0.10 per share) from $1.4 million ($0.06 per share) in Q3 of fiscal 2014.
  • Profit (before income tax and net of stock compensation expense) was $1.7 million or $0.07 per share compared to $1.0 million or $0.05 per share in Q3 of fiscal 2014;
  • Profit for Q3 of fiscal 2015 was $1.2 million or $0.05 per share compared to $1.5 million or $0.07 per share in Q3 of fiscal 2014.
  • Cash and short-term investments as at June 30, 2015 totalled $44 million or $1.76 per share.
  • Adjusted working capital(1) (net of deferred revenue) was $45.2 million or $1.81 per share.
  • Combined tax pools at the end of June 2015 stood at approximately $33 million (CDN).

9 Month Headlines:

  • Revenues grew 65% to $19.7 million compared to $12 million in the first 9 months of fiscal 2014.
  • Adjusted EBITDA increased to $7.9 million ($0.32 per share) or 67% from $4.7 million ($0.22 per share) in the same period in fiscal 2014.
  • Adjusted EBITDA margins improved to 40% of revenue compared to 39% of revenue in the same period in fiscal 2014.
  • Profit (before income tax and net of stock compensation expense) was $5.9 million or $0.24 per share compared to $3.7 million or $0.18 per share in the first 9 months of fiscal 2014.
  • Profit for the first 9 months of fiscal 2015 was $1.9 million or $0.08 per share compared to $5.3 million or $0.25 per share in the same period last year.

"In the third quarter of fiscal 2015, Sylogist continued to grow at a substantial rate over last year. Year-over-year revenue increased 74% quarterly and 65% year-to-date. Q3 adjusted EBITDA rose 71% while nine-month adjusted EBITDA grew 67% over the same periods in fiscal 2014. Sylogist continues to operate with industry-leading financial metrics while maintaining an exceptionally strong balance sheet positioned for appropriate growth opportunities. We have recently commenced selective purchases of our own shares under our Normal Course Issuer Bid as part of our strategy to increase the value of Sylogist stock to our shareholders while continuing to pay a significant quarterly dividend of $0.0625 per share" stated Jim Wilson, Chairman, President and CEO.

About Sylogist

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) Adjusted EBITDA and Adjusted Working Capital are non-GAAP financial measures: Adjusted EBITDA is defined as: profit for the period before stock based compensation, interest expense, bargain purchase price on acquisition, income taxes, acquisition-related costs, depreciation and amortization. Adjusted Working Capital is defined as current assets less current liabilities adjusted for deferred revenue.

Full financial statements together with Management's Discussion and Analysis are available on SEDAR at www.sedar.com.

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 press release is not for distribution to United States Newswire Services or for dissemination in the United States.

Forward-looking Statements

This news release contains forward-looking information which is not comprised of historical facts. These statements typically use words such as prospects, believe, estimate, forecast, project, expect, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the forecasts, projections and other forward-looking statements will not be achieved or will prove inaccurate. Although Sylogist believes that the expectations reflected in these forward-looking statements are reasonable, it provides no assurance that these expectations will prove to have been correct. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to Sylogist's key investments, its products potentially reaching broader markets, and acquisitions giving the Company greater market presence and opportunities. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include Sylogist's ability to integrate acquisitions and realize operating efficiencies, and its ability to attract customers and realize on its investments. Although Sylogist believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. Sylogist disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Neither 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

Contact Information:

Sylogist Ltd.
Jim Wilson
President and CEO
(403) 266-4808
www.sylogist.com