Information Services Corporation (TSE:ISV) delivered C$31 million in revenue during its second-quarter 2020 in what CEO Jeff Stusek called a “relatively strong” performance driven by cost management throughout the coronavirus pandemic.
The Regina, Saskatchewan-based firm, which provides registry and information management services for public data and records, saw transactions return to normal in its Services segment but experienced lower transaction volumes in its Registry Operations division as consumers held back on big-ticket purchases like homes and cars.
ISC recently announced it was acquiring the assets of Paragon Inc, giving it the tools to facilitate and coordinate asset recovery on behalf of clients, including major Canadian banks. In addition to strengthening the firm’s offering, the acquisition is expected to be “immediately accretive” on both an earnings and cash flow basis, the company said in a release.
For the three-month period ended June 30, 2020, ISC posted C$31 million in revenue compared to C$34 million in 2Q 2019. Net income came in at C$4.5 million compared to C$5.8 million a year prior. Its Registry Operations segment put up $16.2 million in revenue compared to C$18.5 million and Services delivered $12.4 million in revenue, down $1.4 million compared to the same period a year prior. Revenue from its Technology Solutions segment was flat at $4.9 million.
“As has been the case since the COVID-19 pandemic began to have an impact on our business and the global economy, our focus remains on ensuring the continuity of our services with the health and safety of our employees, customers and stakeholders a top priority,” CEO Stusek said in the results statement.
“While we are not yet in a position to provide revised guidance for the balance of 2020, the results for the second quarter are encouraging and in keeping with seasonal norms so far. When you consider the economic impact of COVID-19 on much of the economy, this was a relatively strong performance, mainly driven by management of costs as well as our ability to provide all our services to our customers, without interruption.”
The firm ended the quarter with $24.6 million in cash.
Subsequent to the end of the quarter, ISC announced it had expanded its credit facility to C$150 million from $80 million effective August 5. The new facility will allow ISC to finance permitted acquisitions and capital expenditures, and gives the firm more flexibility and a stronger financial position, Stusek told shareholders.
The credit facility has a term of two years.
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