Information Services Corp (TSE:ISV), which provides registry services for public records, continues to grow the business and has posted what it called "excellent" first quarter results despite the economic global circumstances.
The three months to March 31, 2020, saw another rise in net income, revenue and margins compared to the same period a year earlier, the company revealed.
Net income came in at C$3.5 million versus a figure of C$3 million in 2019, on revenue of C$29.6 million, up 3.5% from C$28.6 million seen a year ago. EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months was C$7.8 million, up from C$7.4 million in the first quarter of 2019.
Information Services Corp also confirmed it will pay a quarterly dividend of C$0.20 a share on or before July 15 this year to shareholders of record as at June 30.
The Regina, Saskatchewan-headquartered company provides solutions to manage, secure and administer information and makes revenue from three distinct segments - registry operations, services and technology solutions.
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.
One factor influencing the outlook for both the registry operations and services segments is the impact on transaction volumes due to coronavirus (COVID-19) restrictions put in place, the company noted.
"Despite this, the services offered by both segments have remained available to our customers via our online portal or telephone and without interruption since the spread of COVID-19. Nevertheless, we expect our volumes from existing customers to be lower than normal for the balance of 2020," it added
For the technology business, several implementations are ongoing, the group noted, but said it expected that the timelines and hence the recognition of revenues for some implementations will be delayed.
The pandemic has had a negative impact on the global economy and the future is uncertain, the firm added, saying it has decided to withdraw its guidance for the full-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," Jeff Stusek, the group's president and CEO said in the results statement.
The firm ended the quarter with cash of C$21.2 million compared to C$23.7 million at the end of 2019. Total debt stood at C$17.5 million compared to C$18 million as at December 31.
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