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Sylogist Fiscal 2020 and Q4 Results: Record Adjusted EBITDA on Revenue Growth


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CALGARY, AB, Dec. 17, 2020 /CNW/ - Sylogist Ltd. (TSXV:SYZ) ("Sylogist" or the "Company"), a provider of mission-critical, SaaS enterprise information management solutions to public sector organizations, is pleased to announce its audited financial results for the fiscal year ended September 30, 2020.


Fiscal 2020 Highlights (Comparisons are to fiscal 2019 unless otherwise noted)

  • Revenues were $38.1 million, up from $37.6 million.

  • Gross profit margins were 74% of revenue, compared to 76%.

  • Reported earnings were $1.9 million ($0.08 per share) compared to $10 million ($0.44 per share). Fiscal 2020 earnings were lower due mainly to the restructuring of the senior executive's historic compensation arrangements.

  • Adjusted EBITDA(1) was $20.4 million ($0.86 per share), compared to $17.6 million ($0.78 per share), an increase of 18%.

  • Adjusted EBITDA Margin (1) was 54%, compared to 47%.

  • Cash from operating activities (before non-cash changes in working capital) was $4.1 million ($0.17 per share), compared to $13.2 million ($0.58 per share).

  • Cash as at September 30, 2020 totaled $42.8 million or $1.80 per share.

  • Combined tax pools at the end of the fiscal year 2020 were approximately $13 million (CAD).

  • The Company paid regular dividends to shareholders totaling $10.3 million in fiscal 2020, compared to $8.7 million in fiscal 2019, an increase of 19%.

  • For the fiscal year ended September 30, 2020, the Company repurchased a total of 30,700 common shares at an average price of $8.06 for a total cost of $248 thousand.

  • There are currently 23.9 million Sylogist shares outstanding.

Q4 2020 Summary (Comparisons are to Q4 2019, unless otherwise noted)


  • Revenues were $9.8 million, compared to $8.9 million, an increase of 10%.

  • Reported earnings were $2.3 million ($0.10 per share) compared to $2.3 million ($0.10 per share).

  • Adjusted EBITDA(1) was $3.9 million or $0.16 per fully diluted common share, compared to $4.4 million or $0.19 per fully diluted common share.

  • Adjusted EBITDA Margin(1) was 40%, compared to 49%.

  • Cash from operating activities (before non-cash changes in working capital) totaled $3.2 million ($0.14 per share), compared to $3.2 million ($0.14 per share) in Q4 2019.

  • The Company paid regular dividends to shareholders totaling $3 million during the quarter compared to $2.4 million.

  • Adjusted Working Capital(1) was $45.2 million, or $1.90 per share, compared to $53.5 million, or $2.26 per share, in Q4 2019.

  • During the quarter ended September 30, 2020, the Company repurchased 700 shares at an average price of $11.62. During the quarter ended September 30, 2019, the Company did not repurchase any shares.

Bill Wood, the new President and Chief Executive Officer of Sylogist commented, "we are pleased to announce record Adjusted EBITDA in 2020 for the third consecutive year, and strong financial performance across many dimensions of our business. The Company grew recurring revenue and saw margins strengthen. Also, an operational review and a one-time buyout of executive bonuses early in the year bore fruit. Sylogist stands out as an industry leader in its profitability and financial stability.


The COVID-19 pandemic created significant economic turmoil for many companies, but had no material adverse effect on Sylogist's business. Much of our workforce had been effectively working remotely for some time and we were able to close our offices as required for employee safety without affecting productivity. Although a few of our health-focused, non-profit clients understandably chose to delay their large ERP implementations, overall revenue grew. I'm also proud to share that in response to the pandemic and our ongoing commitment to corporate citizenship, Sylogist donated $230,000 to food-related charities serving the communities where we operate.


In 2020 Sylogist laid a strong foundation for growth in many areas. We renewed our partner agreements with Microsoft on similarly favourable terms, while expanding our commitment to being a leading SaaS provider by making Serenic's ERP solution available to customers on Microsoft AppSource for Dynamics 365 Business Central. New and existing customers have a clear path to the cloud, enabled by a comprehensive plan and technical support from Microsoft.


Sylogist's M&A efforts also produced positive results. In April 2020, we announced the acquisition of Information Strategies Inc., a Microsoft Gold partner providing non-profit organizations and state and federal government agencies with enterprise level case management, grants management, and criminal justice solutions. This acquisition extended our public sector reach, deepened our workforce and added complementary solutions to our product portfolio. We also obtained a $40M CAD line of credit, principally intended for acquisitions. Together with $43 million of cash on hand, this provides us with the financial resources to make transformative acquisitions.


Sylogist spent considerable time in 2020 preparing for the retirement of its long time CEO which smoothed that recent transition. I became President and CEO in early November 2020, bringing to the role many years of experience leading SaaS companies to rapid organic and inorganic growth in many of the same markets Sylogist serves.


Going forward, you can expect to see an increased focus on growth and a more aggressive approach to M&A. We will be investing in strategic marketing activities to improve our inbound sales opportunities and considering a range of strategic initiatives to drive new bookings. We will be similarly strategic in our acquisitions, adding technology, talent and customers to our portfolio where it makes sense. I look forward to sharing a more detailed vision and our plan with you in the near future" concluded Mr. Wood.


About Sylogist

Sylogist is a public sector SaaS company that provides comprehensive ERP, CRM, fundraising, education administration, and payments solutions that allow its customers to carry out their missions. It serves over 1,700 customers globally, including all levels of government, nonprofit and non-governmental organizations, educational institutions, and public compliance-driven and funded companies. The Company has industry-leading profitability, an exceptionally strong balance sheet, a track record of successful acquisitions, and a portfolio of mission-critical SaaS solutions. 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 Exchange under the symbol SYZ. Information about Sylogist can be found at www.sylogist.com.

Sylogist solutions include:

  • Serenic Navigator: Financial Tracking and Management for Education and Nonprofits

  • NaviPayroll: Payroll & HR Solution for Microsoft Dynamics 365 Business Central Customers

  • WenGAGE: Accounting & Student Information Systems

  • MissionCRM: Donor Management and Fundraising

  • InfoStrat: Dynamics 365 for GovCon, Grants Manager Plus, and SAVIN360 Victim Notification

  • Sylogist Pay: Payment Processing and Fuel Payment Management

  • The Portal Connector: Secure Web Portals for Online Customer Experiences

  • pavliks.com: Network and IT Solutions

  • Bellamy and SunPac: Financial Management

  • EpicData: ERP Solution for Manufacturing & Distribution

Learn more about Sylogist.


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