Information Services Corp (TSE:ISV) saw its fourth-quarter revenue jump 22.3% year-on-year, driven by the completion of contracts within its technology solutions segment and continued growth in services.
The Regina, Saskatchewan-headquartered business, which provides solutions to manage, secure and administer information, has a host of diversified, yet complementary revenue streams through its three service offering segments: Registry Operations, Services and Technology Solutions.
For the fourth-quarter ended December 2019, the company posted revenue of $37.9 million, compared to $31.01 million in the same quarter a year earlier.
Net income for the quarter was $7.3 million, or $0.42 per share compared to $3.2 million or $0.18 per share in 2018. The year-over-year increase was mainly due to the increased revenue in its Technology Solutions and Services.
Free cash flow for the quarter was $9.5 million, an increase of $3.6 million compared to the fourth quarter of 2018 due to the higher results from operations.
Year-end 2019 Highlights
Meanwhile, for the full-year ended December 31, 2019, the company posted an 11.6% jump in revenue to $133 million, compared to $119.1 million in 2018 driven by higher revenue generated by services and technology solutions.
Net income for the full-year was $19.4 million or $1.11 per share compared to $18.6 million or $1.06 per share in 2018. This was driven by increased results in all segments and lower overall corporate costs for 2019, the company said.
Free cash flow for the year increased to $30 million, compared to $27.4 million for the same period of 2018 due to the strong operations.
In a statement accompanying the company’s latest numbers, ISC's CEO Jeff Stusek said: "In 2019, we delivered $133 million in revenue and $39 million in underlying earnings before interest, tax, depreciation and amortization (EBITDA) —both new records for us. As always, the strength of our Registry Operations segment helped lay the foundation for these results, strongly supported by our Services and Technology Solutions segments."
The company works with both governments and private sector organizations seeking information management services.
"Registry Operations is more efficient than ever. Services has built a reputation for responsive customer service, which is leading to us winning new customers and expansion of services offered to existing customers. Technology Solutions is continuing to gain traction as a key piece of our portfolio,” added Stusek.
The ISC boss said the company remained on track and he was “optimistic” about its “future and growth potential."
Secures major contract
Meanwhile, ISC said that its wholly-owned Irish subsidiary, Enterprise Registry Solutions Limited, has inked a deal with the Irish Aviation Authority to implement and support its new Safety Regulation System.
The total value of the implementation contract is around $7 million, with a subsequent agreement expected for system support and maintenance, the company said. The new system is expected to go live in 2021.
In September 2019, ISC closed three regional service centres in Saskatchewan due to “a steadily declining need for counter service and customers' adoption of online services offered by the company.”
In a positive, the move helped cut year-end company debt to $18 million compared to $20 million as on December 31, 2018.
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