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Information Services Corp is continuing to grow its services and tech segments after 'banner' 2019

Snapshot

The group manages and operates the Saskatchewan Land Registry on behalf of the government of Saskatchewan

ISC -

Quick facts: ISC

Price: 17.6 CAD

TSX:ISV
Market: TSX
Market Cap: $308 m
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  • Provides registry and information management services for public data and records
  • Multiple acquisitions have bolstered footprint and growth
  • Services and technology solutions segments gaining traction
  • Enjoyed record results in 2019; first -uarter 2020 shows promise

What Information Services Corp does:

Information Services Corp (TSE:ISV) provides registry and information management services for public data and records and is focused on sustaining the core registry business while pursuing new growth opportunities.

The Saskatchewan-based firm has a host of diversified, yet complementary revenue streams through its three business segments: Registry Operations, Services and Technology Solutions.

Under its registry segment, the group manages and operates the Saskatchewan Land Registry on behalf of the government of Saskatchewan under a 20-year deal.

Its services business comes via subsidiary ESC Corporate Service s Ltd, which delivers solutions uniting public record data, customer authentication, among others to support lending practices of clients with business across Canada.

The tech segment is delivered via wholly-owned subsidiary Enterprise Registry Solutions Limited (ERS), which offers RegSys, which provides a transferable technology platform capable of serving a wide range of registry needs.

ISC has offices in eight Saskatchewan communities: Humboldt, Moose Jaw, North Battleford, Prince Albert, Regina, Saskatoon, Swift Current and Yorkton. The company works with both governments and private sector organizations seeking information management services.

How is it doing:

Over the course of 2019, Information Services Corp saw steady progress.  For full-year 2019, it posted record revenue, EBITDA and free cash flow numbers. The group saw an 11.6% jump in revenue to $133 million, compared to $119.1 million in 2018, driven by its services and technology solutions businesses. 

In October, 2019, it revealed its tech subsidiary had struck a deal with the Irish Aviation Authority to implement and support its new safety regulation system. The total value of the contract was put at C$7 million, with a subsequent agreement expected for system support and maintenance. The new system is expected to go live in 2021.

Like many others, the group is facing challenges related to the coronavirus (COVID-19) pandemic in 2020, but it still posted what it called an "excellent" set of first-quarter numbers on May 5, despite the circumstances.

For the three months to March 31, 2020, the company saw another rise in net income, revenue and margins compared to the same period a year earlier.

Net income came in at C$3.5 million versus a figure of C$3 million on the same stage in 2019, on revenue of C$29.6 million, up 3.5% from C$28.6 million seen a year ago. The group also said it will pay a quarterly dividend of C$0.20 a share on or before July 15 this year.

The registry operations segment saw revenue in 1Q 2020 of C$15.5 million, down from C$16.3 million in 2019, while the services segment made C$11.8 million, up C$0.8 million compared to Q1, last year. On the tech side, the group posted revenue of C$4.7 million, versus C$4.4 million in the first quarter of last year. The firm ended the quarter with cash of C$21.2 million.

The company also revealed on the same day that it had implemented enhanced monitoring after a "recent occurrence of unusually high search volumes of publicly available free data" in the Saskatchewan land registry. It said the search activity was performed using false information to conduct multiple searches but added there was "no evidence to date of any compromise of Land Registry or ISC technology systems or security".

Inflection points:

  • More contract awards, deals
  • Ongoing growth in services, technology

What the boss says:

In the first-quarter results statement, Information Services Corp group CEO, Jeff Stusek told investors: "This pandemic has had a negative impact on the global economy which has made the future uncertain. As such, we have decided to withdraw our guidance for the year. Nevertheless, all of our businesses are operating, with most of our employees working from home, and our results for the quarter were excellent considering the circumstances."

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Watch

Full interview: ISC managing well in uncertain time posting another strong...

Information Services Corporation (TSE: ISV) President and CEO Jeff Stusek joined Steve Darling from Proactive Vancouver with news the company has put out very good 1st quarter numbers for 2020 despite the challenges presented by COVID-19. Stusek discusses those numbers and also told Proactive...

on 7/5/20

4 min read