Sylogist Q1 Fiscal 2021 Results: Revenue Growth & Strong Profitability Continues, Dividend Declared
CALGARY, AB, Feb. 11, 2021 /CNW/ - Sylogist Ltd. (TSXV: SYZ) ("Sylogist" or the "Company"), a provider of enterprise information management solutions, is pleased to announce its unaudited financial results for the first quarter of the 2021 fiscal year, ended December 31, 2020.
Q1 2021 Summary (comparisons are to Q1 2020, unless otherwise noted)
Total Revenues were $9.5 million, compared to $8.8 million in the first quarter of fiscal 2020, an increase of 7%.
Gross Profit of $7 million, compared to $6.8 million in the same period in the prior year, an increase of 2%.
Gross Profit Margin was 73%, compared to 77% in the first quarter of 2020.
Profit before income tax of $2.8 million, compared to a loss before income taxes of $8.6 million in the first quarter of 2020. (Q1 '20 period reflected a one-time charge for the buy out of senior executives' historical compensation arrangements).
Adjusted EBITDA(1) of $4.9 million, compared to $5.2 million in the same period last year.
Adjusted EBITDA Margin(1) of 52%, compared to 59% in the first quarter of 2020.
Adjusted EBITDA per share(1) of $0.21 per share, compared to $0.22 per share in the first quarter of fiscal 2020.
Cash generated from operating activities (before non-cash changes in working capital) totalled $4.9 million ($0.20 per share), compared to cash used in operations (before non-cash changes in working capital) of $6.7 million ($0.28 per share) in Q1 2020.
The Company paid regular dividends to shareholders totalling $3 million during the quarter, compared to $2.4 million in same period of fiscal 2020, an increase of 25%.
Working Capital was $32.3 million, or $1.35 per share, compared to $30.2 million or $1.27 per share in Q1 2020, an increase of 7%.
Adjusted Working Capital (1) was $42.6 million, or $1.78 per share, compared to $40.8 million or $1.71 per share in Q1 2020, an increase of 5%.
Combined tax pools at the end of the first quarter 2021 totalled approximately $12.7 million (CAD).
During the three-month period ended December 31, 2020, the Company repurchased 68,400 shares at an average price of $10.56.
The Company's Board of Directors approved a quarterly dividend of $0.125 per common share for shareholders of record as of February 26, 2021 to be paid on March 10, 2021, which is to be treated as an eligible dividend under the Income Tax Act (Canada).
Bill Wood, President and CEO of Sylogist commented, "Q1 delivered strong financial performance. We grew revenue while maintaining very strong profit margins, despite market headwinds from COVID-19 and its economic turmoil. More broadly, we are pleased with Sylogist's resilience in the face of challenging market conditions. Our recurring revenue base has held strong, and increased professional services revenue from our InfoStrat division helped drive a 7% increase in our top line. With this came a modest decrease in Adjusted EBITDA, due to a depreciating US dollar, one-time costs related to CEO recruitment, costs associated with establishing a credit facility and new, lower-margin professional services from the InfoStrat division now contributing a share of revenue. Although some new bookings have been delayed as a result of the pandemic, many of those conversations have restarted, we see bookings pipeline activity growing and expect new deal wins will accelerate throughout this year.
Business activities continued in Q1 to strengthen our foundation for growth. In October, we closed on a $40 million credit facility that can be used for acquisitions, strategic initiatives, and general corporate purposes. This provides additional resources to pursue transformative acquisitions and growth initiatives. We also continued to integrate our InfoStrat acquisition, with a focus on leveraging its IP to develop innovative products that will grow recurring revenue.
Finally, I was pleased to announce the hire of Terry LoPresti as Sylogist's Chief Technology and Innovation officer in early January. Terry brings years of valuable experience delivering scalable solutions and leading technology strategy at fast-growing SaaS companies. In addition to leading innovation and product development, she will play a key role in expanding technology partner and customer relationships, and in our M&A strategy and execution.
Over the past several weeks, I have been leading Sylogist through a strategic planning process, with a focus on accelerating both organic and inorganic growth. Having now been at the helm for 90+ days, I'm increasingly excited about the opportunities for the company and look forward to sharing more about our plans and the path forward in the near future" concluded Mr. Wood.
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.