ISC receives boost to revenues and profits from AVS Systems acquisition

In its Services segment, ISC expects to see further customer growth in Financial Support Services in 2018, due to new customers coming on board and its recent acquisition of AVS.

Changes to the mortgage rules and an increase in overnight lending rates will influence the outlook for the Saskatchewan Land Registry business

The December acquisition of AVS Systems turned out to be a nice little Christmas present for Information Services Corp (TSE:ISV).

The provider of registry and information management services for public data and records reported a rise in revenue in the first three months of 2018 to C$26.87mln from C$21.50mln in the same period of 2017.

READ Information Services bolsters its services business with acquisition of AVS Systems Inc

The Registry Operations part of the business saw its revenue hold steady from a year earlier at C$16.91mln.

Revenue from services, which includes automation software firm AVS Systems, saw revenue rise 136% to C$8.9mln from C$3.75mln.

Technology Solutions segment revenue was C$4.9mln, up C$0.4 million (+8.5%) compared to the same quarter of 2017.

Adjusted underlying earnings, or Ebitda, improved to C$6.96mln from C$6.22mln.

As at March 31, 2018, the company held C$27.2 million in cash, compared to C$31.3 million as at the end of 2017.

Debt for the three months ended March 31, 2018, remained unchanged from the year-end total of C$21.6mln.

On a consolidated basis, ISC continues to expect total revenue of between C$124.0 and C$130.0 million with an Ebitda margin of between 24.0% ad 26%.

“The addition of AVS Systems Inc. to our Services segment has clearly had a positive impact to our revenue, EBITDA and net income, supported by solid and stable results in our Registry Operations and Technology Solutions segments,” said Jeff Stusek, the president and chief executive officer of ISC.

“Our strategy to diversify our business is yielding definitive results. Most importantly, our Services and Technology Solutions segments provide us with two avenues for organic growth, while our Registry Operations segment provides a stable foundation to our overall business,” he added.

ISC declared a quarterly cash dividend of $0.20 per Class A limited voting share. The dividend will be paid on or before July 15, 2018, to shareholders of record as of June 30, 2018.

Quick facts: ISC

Price: 17.39 CAD

Market: TSX
Market Cap: $304.33 m

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