ISC's profits rise as all three arms see growth

Information Services Corporation, or ISC (TSE:ISV), saw a small increase in first quarter earnings as the Saskatchewan economy showed signs of rousing itself.

The Saskatchewan-based business services provider saw net income rise to C$2.43mln from C$2.20mln in the first quarter of the prior year.

Underlying earnings, or EBITDA, rose to C$5.8mln from C$5.1mln the previous year, lifting the EBITDA margin (EBITDA as percentage of revenue) to 26.8% from 25.9% a year earlier.

The company said it expects an EBITDA margin of between 31% and 33% for 2017 as a whole.

Earnings per share on a diluted basis rose to 14 cents from 12 cents the year before.

Revenue rose to C$21.5mln from C$19.61mln a year earlier, with growth seen in all three arms of the business.

Land registry revenues – the bedrock of the business – edged up to C$11.75mln from C$11.50mln in the same quarter of 2016.

Revenue from the personal property registry business climbed to C$2.35mln from C$2.23mln the year before, while revenue from the corporate registry arm rose to C$2.82mln from C$2.59mln.

“We remain confident that our focus on our existing businesses will position us well to benefit from any future economic growth. In addition, we continue to examine business development opportunities in Canada as well as internationally, ensuring that any potential acquisition is right for the company and will deliver long-term value for our shareholders,” said Jeff Stusek, president and chief executive officer of ISV.

The company has declared a quarterly dividend of 20 cents, having finished the quarter with cash of C$28mln, down from C$33.5mln at the end of 2016.

Total long-term debt weighed in C$33.1mln.

Much of the company’s business is dependent on the vibrancy of the Saskatchewan economy, and the company reported that since January there had been some signs of improvement.

Recent forecasts of Saskatchewan’s real gross domestic product in 2017 have been trending higher, ISV reported.

Story by ProactiveInvestors