- Increased year-over-year volumes across the Saskatchewan Registries
- Strong counter-cyclical performance from Recovery Solutions in Services segment
- Achieved record adjusted EBITDA for the first quarter
Capitalized terms that are used but not defined in this news release have the meaning ascribed to those terms in Management’s Discussion & Analysis for the three months ended March 31, 2025.
REGINA, Saskatchewan, May 06, 2025 (GLOBE NEWSWIRE) — Information Services Corporation (TSX:ISC) (“ISC” or the “Company”) today reported on the Company’s financial results for the first quarter ended March 31, 2025.
Commenting on ISC’s results, Shawn Peters, President and CEO stated, “It was another consistently strong performance by ISC for the first quarter of 2025. The diversification of our business and the resiliency of the Saskatchewan Registries division have been and will continue to generate strong results despite the Company operating in a more uncertain macroeconomic backdrop.”
First Quarter 2025 Highlights
- Revenue was $59.3 million for the quarter, an increase of 5 per cent compared to the first quarter of 2024. Growth was driven by increased volumes across the Saskatchewan Registries division of Registry Operations, combined with annual CPI pricing increases and new Bank Act Security Registry (the “BASR”) revenue. This was partially offset by a decrease in Services revenue as a result of the Government of Ontario’s unexpected ban on NOSIs in June 2024 counterbalanced by strong growth in the higher margin Recovery Solutions division.
- Net income was $7.5 million or $0.40 per basic share and diluted share for the quarter, compared to $0.4 million or $0.02 per basic share and diluted share in the first quarter of 2024. The increase was due to lower share-based compensation, strong adjusted EBITDA results and lower net finance expense. These were partially offset by increased income tax expense.
- Net cash flow provided by operating activities was $5.8 million for the quarter, a decrease of $4.7 million from $10.5 million in the first quarter of 2024. The decrease was due to strong operating results being offset by a decrease in cash from net changes in non-cash working capital primarily due to timing differences on trade and other receivables and accounts payable and accrued liabilities.
- Adjusted net income was $11.4 million or $0.62 per basic share and $0.61 per diluted share compared to $8.5 million or $0.47 per basic share and diluted share in the first quarter of 2024. The increase reflects strong operating results across all operating segments and lower net finance expense.
- Adjusted EBITDA was $21.8 million for the quarter compared to $19.4 million in the first quarter of 2024. The increase was due to contributions from the Registry Operations and Services segments as outlined above. Adjusted EBITDA margin was 36.7 per cent compared to 34.5 per cent in the first quarter of 2024. This growth was driven by the same reasons noted for adjusted EBITDA.
- Adjusted free cash flow for the quarter was $15.2 million, compared to $11.6 million in the first quarter of 2024, due to stronger results in our operating segments in addition to lower net finance expense.
Financial Position as at March 31, 2025
- Cash of $16.8 million compared to $21.0 million as at December 31, 2024, a decrease of $4.2 million.
- Total debt of $166.6 million compared to $167.6 million as at December 31, 2024. The Company is focused on continuing sustainable growth and deleveraging its balance sheet towards a long-term net leverage target of 2.0x – 2.5x.
Subsequent Events
- On May 6, 2025, our Board declared a quarterly cash dividend of $0.23 per Class A Share, payable on or before July 15, 2025, to shareholders of record as of June 30, 2025.
Management’s Discussion of ISC’s Summary of First Quarter 2025 Financial Results
| (thousands of CAD; except earnings per share, adjusted earnings per share and where noted) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | ||||
| Revenue | ||||||
| Registry Operations | $29,464 | $26,268 | ||||
| Services | 26,649 | 27,037 | ||||
| Technology Solutions1 Corporate and other | 3,188 4 | 3,092 3 | ||||
| Total revenue | $59,305 | $56,400 | ||||
| Total expenses | $44,535 | $49,819 | ||||
| Adjusted EBITDA2 | $21,783 | $19,440 | ||||
| Adjusted EBITDA margin2 | 36.7% | 34.5% | ||||
| Net income | $7,486 | $423 | ||||
| Adjusted net income2 | $11,427 | $8,498 | ||||
| Earnings per share (basic) | $ 0.40 | $0.02 | ||||
| Earnings per share (diluted) | $ 0.40 | $0.02 | ||||
| Adjusted earnings per share (basic)2 | $ 0.62 | $0.47 | ||||
| Adjusted earnings per share (diluted)2 | $ 0.61 | $0.47 | ||||
| Adjusted free cash flow2 | $15,175 | $11,636 | ||||
1 Corporate and other and Inter-segment eliminations are excluded. Technology Solutions revenue included in the above chart is Third Party revenue. Please see Section 3.3 “Technology Solutions” in the MD&A for more information.
2 Adjusted net income, adjusted earnings per share, basic, adjusted earnings per share, diluted, adjusted EBITDA, adjusted EBITDA margin and adjusted free cash flow are not recognized as measures under IFRS Accounting Standards, do not have a standardized meaning prescribed and may not be comparable to similar measures reported by other companies. Refer to Section 8.8 “Non-IFRS financial measures” in the MD&A for a discussion on why we use these measures, the calculation of them and their most directly comparable financial measure calculated in accordance with IFRS Accounting Standards. Refer to Section 2 “Consolidated Financial Analysis” and Section 6.1 “Cash flow” in the MD&A for a reconciliation of these measures to the most directly comparable financial measure calculated in accordance with IFRS Accounting Standards.
2025 First Quarter Results of Operations
- Total revenue was $59.3 million, up 5 per cent compared to Q1 2024.
- Registry Operations segment revenue was $29.6 million, up 13 per cent compared to Q1 2024.
- Land Registry revenue was $17.5 million, up compared to $16.1 million in Q1 2024.
- Personal Property Registry revenue was $3.1 million, up compared to $2.8 million in Q1 2024.
- Corporate Registry revenue was $4.0 million, up compared to $3.5 million in Q1 2024.
- Property Tax Assessment Services revenue was $3.9 million, consistent compared to $3.9 million in Q1 2024.
- Other Registries revenue was $0.9 million, up compared to the same prior year period.
- Services segment revenue was $26.6 million, down 1 per cent compared to Q1 2024.
- Regulatory Solutions revenue was $19.5 million, down compared to $20.2 million in Q1 2024.
- Recovery Solutions revenue was $4.1 million, up compared to $3.3 million in Q1 2024.
- Corporate Solutions revenue was $3.0 million, down compared to $3.6 million in Q1 2024.
- Technology Solutions revenue was $8.6 million, up 21 per cent compared to Q1 2024.
- Consolidated expenses were $44.5 million compared to $49.8 million for Q1 2024.
- Net income for the quarter ended March 31, 2025 was $7.5 million or $0.40 per basic share and $0.40 per diluted share.
- Sustaining capital expenditures for Q1 2025 were $1.9 million, compared to $2.1 million in Q1 2024.
Outlook
The following section includes forward-looking information, including statements related to our strategy, future results, including revenue and adjusted EBITDA, segment performance, the industries in which we operate, economic activity, growth opportunities, investments and business development opportunities. Refer to “Caution Regarding Forward-Looking Information”.
Our guidance for 2025 reflects continued organic growth in line with historical trends. While not included in our guidance, our disciplined M&A strategy is intended to support our long-term growth targets as we continue to pursue new opportunities.
In Registry Operations, a declining interest rate environment is likely to support ongoing activity in the Saskatchewan real estate market. As a result, there is expected to be typical annual growth in overall volumes in the Saskatchewan Land Registry of 2 to 3 per cent. At the same time, there is also forecasted to be an increase in the fair market value of regular real estate transfers, along with inventory challenges in the lower-value homes category. The stability of the Ontario Property Tax Assessment division, along with a full year of BASR and annual Saskatchewan Registries CPI fee adjustments, will support the segment’s steady financial performance.
In Services, we expect continued growth in the Regulatory Solutions division due to the ongoing trend of increased due diligence by financial institutions. In addition, we expect to build on the strong gains made in the Recovery Solutions division in 2024. Growth in these two divisions is expected to offset any headwinds from the further opening of the Ontario Business Registry, as well as the unexpected ban on NOSIs in Ontario at the start of June 2024.
In Technology Solutions, we are again forecasting double-digit growth in 2025, supported by a pipeline of Third Party and Related Party contracts, that is currently being delivered, including our projects in Cyprus, Guernsey, Michigan and the recently announced contract with Liechtenstein, among others.
As a result, in 2025 ISC expects revenue to be within a range of $257.0 million to $267.0 million and adjusted EBITDA to be in a range of $89.0 million to $97.0 million. In keeping with our historical performance, the Company also expects to see robust free cash flow in 2025, which will support the deleveraging of our balance sheet to realize a long-term net leverage target of 2.0x – 2.5x.
Note to Readers
The Board of Directors (“Board”) of ISC is responsible for review and approval of this disclosure. The Audit Committee of the Board, which is comprised exclusively of independent directors, reviews and approves the fiscal year-end Management’s Discussion and Analysis and Financial Statements and recommends both to the Board for approval. The interim financial statements and MD&A are reviewed and approved by the Audit Committee.
This news release provides a general summary of ISC’s results for the quarters ended March 31, 2025 and 2024. Readers are encouraged to download the Company’s complete financial disclosures. Links to ISC’s financial statements and related notes and MD&A for the period are available on our website in the Investor Relations section at www.isc.ca
Copies can also be obtained at www.sedarplus.ca by searching Information Services Corporation’s profile or by contacting Information Services Corporation at investor.relations@isc.ca
All figures are in Canadian dollars unless otherwise noted.
Conference Call and Webcast
An investor conference call will be held on Wednesday, May 7, 2025 at 11:00 a.m. ET to discuss the results. Those joining the call on a listen-only basis are encouraged to join the live audio webcast, which will be available on ISC’s website at company.isc.ca/investor-relations/events.
Participants who wish to ask a question on the live call may do so through the ISC website, or by registering at:
https://register-conf.media-server.com/register/BI6d1e7f6ba86846d4bf5bba759577666b
Once registered, participants will receive the dial-in numbers and their unique PIN number. When dialing in, participants will input their PIN and be placed into the call.
While not required, it is recommended that participants join 10 minutes before the start time. A replay of the webcast will be available approximately 24 hours after the event on ISC’s website at www.isc.ca. Media are invited to attend on a listen-only basis.
About ISC®
Headquartered in Canada, ISC is a leading provider of registry and information management services for public data and records. Throughout our history, we have delivered value to our clients by providing solutions to manage, secure and administer information through our Registry Operations, Services and Technology Solutions segments. ISC is focused on sustaining its core business while pursuing new growth opportunities. The Class A Shares of ISC trade on the Toronto Stock Exchange under the symbol ISC.
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities laws including, without limitation, those contained in the “Outlook” section hereof, including statements related to our strategy, future results, including revenue and adjusted EBITDA, segment performance, expenses, operating costs and capital expenditures, and statements related to the industries in which we operate, growth opportunities, economic activity, investments, business development opportunities and our future financial position and results of operations. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include risks relating to changes in economic, market and business conditions, changes in technology and customers’ demands and expectations, reliance on key customers and licences, dependence on key projects and clients, securing new business and fixed-price contracts, identification of viable growth opportunities, implementation of our growth strategy, competition, termination risks and other risks detailed from time to time in the filings made by the Company including those detailed in ISC’s Annual Information Form for the year ended December 31, 2024 and ISC’s unaudited Condensed Consolidated Interim Financial Statements and Notes and Management’s Discussion and Analysis for the first quarter ended March 31, 2025, copies of which are filed on SEDAR+ at www.sedarplus.ca.
The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities legislation, ISC assumes no obligation to update or revise such information to reflect new events or circumstances.
Non-IFRS Performance Measures
Included within this news release is reference to the following non-IFRS performance measures. These measures, which are reconciled below are reviewed regularly by management and the Board of Directors in assessing our performance and making decisions regarding the ongoing operations of our business and its ability to generate returns. These measures may also be used by external parties in decision making related to ISC’s performance. They are not recognized measures under IFRS and do not have a standardized meaning under IFRS, so may not be reliable ways to compare us to other companies.
| Non-IFRS performance measure | Why we use it | How we calculate it | Most comparable IFRS financial measure | ||||
| Adjusted net income Adjusted earnings per share, basic Adjusted earnings per share, diluted |
| Adjusted net income: Net income add Share-based compensation expense, acquisitions, integration and other costs, effective interest component of interest expense, debt finance costs expensed to professional and consulting, amortization of the intangible asset associated with the right to manage and operate the Saskatchewan Registries, amortization of registry enhancements, interest on the vendor concession liability and the tax effect of these adjustments at ISC’s statutory tax rate Adjusted earnings per share, basic: Adjusted net income divided by weighted average number of common shares outstanding Adjusted earnings per share, diluted: Adjusted net income divided by diluted weighted average number of common shares outstanding | Net income Earnings per share, basic Earnings per share, diluted | ||||
| Adjusted EBITDA Adjusted EBITDA margin |
| Adjusted EBITDA: Net income add (remove) Depreciation and amortization, net finance expense and income tax expense, share-based compensation expense, acquisition, integration and other costs, gain/loss on disposal of assets and asset impairment charges if significant Adjusted EBITDA margin: Adjusted EBITDA divided by Total revenue | Net income | ||||
| Free cash flow |
| Net cash flow provided by operating activities deduct (add) Net change in non-cash working capital, cash additions to property, plant and equipment, cash additions to intangible assets, interest received and paid as well as interest paid on lease obligations and principal repayments on lease obligations | Net cash flow provided by operating activities | ||||
| Adjusted free cash flow |
| Free cash flow deduct (add) Share-based compensation expense, acquisition, integration and other costs and registry enhancement capital expenditures | Net cash flow provided by operating activities |
The following presents a reconciliation of adjusted net income to net income, a reconciliation of adjusted EBITDA to net income and a reconciliation of adjusted free cash flow to free cash flow to net cash flow provided by operating activities:
Reconciliation of Adjusted Net Income to Net Income
| Three Months Ended March 31, | ||||||||||||||||||
| Pre-tax | Tax1 | After-tax | ||||||||||||||||
| (thousands of CAD) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Adjusted net income | $ | 15,637 | $ | 11,727 | $ | (4,210 | ) | $ | (3,229 | ) | $ | 11,427 | $ | 8,498 | ||||
| Add (subtract): | ||||||||||||||||||
| Share-based compensation recovery (expense) | 657 | (4,635 | ) | (177 | ) | 1,251 | 480 | (3,384 | ) | |||||||||
| Acquisition, integration and other costs | (1,502 | ) | (1,450 | ) | 406 | 392 | (1,096 | ) | (1,058 | ) | ||||||||
| Effective interest component of interest expense | (66 | ) | (65 | ) | 18 | 18 | (48 | ) | (47 | ) | ||||||||
| Interest on vendor concession liability | (2,175 | ) | (2,599 | ) | 587 | 702 | (1,588 | ) | (1,897 | ) | ||||||||
| Amortization of right to manage and operate the Saskatchewan Registries | (2,314 | ) | (2,314 | ) | 625 | 625 | (1,689 | ) | (1,689 | ) | ||||||||
| Net income | $ | 10,237 | $ | 664 | $ | (2,751 | ) | $ | (241 | ) | $ | 7,486 | $ | 423 | ||||
| 1 Calculated at ISC’s statutory tax rate of 27.0 per cent. | ||||||||||||||||||
Reconciliation of Adjusted EBITDA to Net Income
| Three Months Ended March 31, | ||||||||
| (thousands of CAD) | 2025 | 2024 | ||||||
| Adjusted EBITDA | $ | 21,783 | $ | 19,440 | ||||
| Add (subtract): | ||||||||
| Share-based compensation recovery (expense) | 657 | (4,635 | ) | |||||
| Acquisition, integration and other costs | (1,502 | ) | (1,450 | ) | ||||
| Depreciation and amortization | (6,168 | ) | (6,774 | ) | ||||
| Net finance expense | (4,533 | ) | (5,917 | ) | ||||
| Income tax expense | (2,751 | ) | (241 | ) | ||||
| Net income | $ | 7,486 | $ | 423 | ||||
| Adjusted EBITDA margin (% of revenue) | 36.7 | % | 34.5 | % | ||||
Reconciliation of Adjusted Free Cash Flow to Free Cash Flow to Net Cash Flow Provided by Operating Activities
| Three Months Ended March 31, | ||||||||
| (thousands of CAD) | 2025 | 2024 | ||||||
| Adjusted free cash flow | $ | 15,175 | $ | 11,636 | ||||
| Add (subtract): | ||||||||
| Share-based compensation recovery (expense) | 657 | (4,635 | ) | |||||
| Acquisition, integration and other costs | (1,502 | ) | (1,450 | ) | ||||
| Registry enhancement capital expenditures | (1,725 | ) | (634 | ) | ||||
| Free cash flow, | $ | 12,605 | $ | 4,917 | ||||
| Add (subtract): | ||||||||
| Cash additions to property, plant and equipment | 2 | 965 | ||||||
| Cash additions to intangible assets | 1,943 | 1,152 | ||||||
| Interest received | (141 | ) | (249 | ) | ||||
| Interest paid | 2,335 | 3,433 | ||||||
| Interest paid on lease obligations | 192 | 134 | ||||||
| Principal repayment on lease obligations | 532 | 695 | ||||||
| Net change in non-cash working capital1 | (11,694 | ) | (579 | ) | ||||
| Net cash flow provided by operating activities | $ | 5,774 | $ | 10,468 | ||||
| 1 Refer to Note 17 to the Financial Statements for reconciliation | ||||||||
Investor Contact
Jonathan Hackshaw
Senior Director, Investor Relations & Capital Markets
Toll Free: 1-855-341-8363 in North America or 1-306-798-1137
investor.relations@isc.ca
Media Contact
Jodi Bosnjak
External Communications Specialist
Toll Free: 1-855-341-8363 in North America or 1-306-798-1137
corp.communications@isc.ca
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