Information Services Corporation (TSX:ISV) posted second-quarter results that saw its revenue jump 44% year-over-year, powered by its Registry Operations, Services Segment and Technology Solutions.
For the period ended June 30, 2021, the Saskatchewan-based firm reported revenue of $44.6 million, an increase of $13.6 million compared to the second quarter of 2020.
Net income was $6.5 million or $0.37 per basic share, and $0.36 per diluted share during the second quarter.
The company’s EBITDA, or earnings before interest, taxes, depreciation and amortization expense was $13.6 million, up $4.4 million, compared to $9.2 million in the same quarter a year earlier. Adjusted EBITDA was $18.6 million for the quarter, compared to $10.4 million in the 2Q in 2020.
During the second quarter, ISC reported free cash flow of $8.9 million, compared to $7.8 million in 2Q 2020. The company is in a strong cash position with $49.6 million in cash as of June 30, 2021, compared to $33.9 million on December 31, 2020.
ISC has a host of diversified, yet complementary revenue streams through its three business segments: Registry Operations, Services, and Technology Solutions. All three divisions contributed strongly to ISC (TSX:ISV)'s bottom line during the quarter, according to the company.
In a statement accompanying the numbers, ISC CEO Jeff Stusek said: “ISC rose to the challenge last year and has now raised the bar even further with the results we posted for the first and this, the second quarter of 2021. Both our Registry Operations and Services segments achieved extremely strong results.”
“Registry Operations has benefited from very robust economic activity in Saskatchewan while Services has delivered excellent new organic growth from our business development team along with the additional revenue from our national recovery solutions division.”
Stusek noted that while ISC’s Technology Solutions segment continues to move forward with the delivery of several implementations, despite some delays, it remains “an extremely robust business and is poised to continue to thrive and grow in a post-pandemic world.”
ISC said Registry Operations segment revenue was $24 million in the 2Q, compared to $16.2 million in 2Q 2020 and it clocked up land registry revenue of $17.9 million, personal property registry revenue of $3.1 million, and corporate registry revenue of $2.7 million.
Meanwhile, Services segment revenue was $20.1 million, up $7.7 million compared to 2Q 2020. ISC’s Technology Solutions segment revenue was $0.6 million.
In terms of outlook, ISC said that both its Registry Operations and Services segments have benefitted from “the strong, positive economic conditions in the sectors in which we operate.”
Registry Operations has realized "excellent results over the past 12 months, despite pandemic conditions," mainly driven by "robust activity in Saskatchewan," particularly in the real estate sector, noted the company. “At present, we expect volumes to continue to show strength and stability in the near term,” said the company.
ISC added that “Services volumes are also expected to remain robust” in Regulatory and Corporate Solutions, while volumes in “Recovery Solutions are expected to remain unchanged, so long as Federal or other pandemic subsidy programs are in place.”
Contact the author Uttara Choudhury at email@example.com
Follow her on Twitter: @UttaraProactive