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Sylogist Announces 22% Organic Growth and 32% EBITDA Margin for the Quarter, Releases Year-End Audited Financials
March 23, 2023 8:00 AM EDT | Source: Sylogist Ltd.
Calgary, Alberta--(Newsfile Corp. - March 23, 2023) - Sylogist Ltd. (TSX: SYZ) ("Sylogist" or the "Company"), a leading public sector SaaS company, is pleased to announce its audited financial results for the three and 15-month period ended on December 31, 2022. In November 2022, Sylogist announced a change in its fiscal year end from September 30 to December 31, and is now releasing financial results for a transitional 15-month fiscal year.
"Sylogist produced record organic growth while maintaining strong EBITDA margins," commented Bill Wood, President and CEO. "Deliberate strategic investments and a focus on execution have driven total organic growth to 22% in the quarter, or 17% on an FX-adjusted basis. Revenue expansion in the quarter was driven by growth within our two most recent acquisitions, increased SylogistMission ERP installs and upgrades, and broad-based gains across the business. In doing so, Sylogist has continued to drive profitability, maintaining a 32% EBITDA margin this quarter. We are focused on continuing to execute on our organic growth initiatives, driving momentum, and creating long-term shareholder value."
As announced previously, Sylogist will host a conference call at 9:00 AM Eastern Time (today, March 23) to discuss the Company's financial results and the progress on its strategy. Interested parties are invited to join the call at 1-800-319-4610 (Canada/USA Toll Free) or 1-416-915-3239. A recording of the conference call will be available on the Company's website afterwards.
Financial Highlights for the Quarter Ended December 31, 2022
| IFRS Measures | ||||||
| Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | % YoY Change | ||||
| Revenue ($M) | $15.3 | $12.6 | 22% | |||
| Cloud Subscriptions ($M) | $6.0 | $5.3 | 14% | |||
| Maintenance & Support ($M) | $3.7 | $3.5 | 6% | |||
| Gross Profit ($M) | $9.7 | $8.1 | 19% | |||
| Gross Profit Margin | 63% | 65% | ||||
| Profit Before Income Tax ($M) | $0.2 | $0.2 | - | |||
| Non-IFRS Measures1 | ||||||
| Three Months Ended Dec 31, 2022 | Three Months Ended Dec 31, 2021 | % YoY Change | ||||
| Revenue Backlog ($M) | $30.3 | $26.0 | 17% | |||
| Adjusted EBITDA ($M) | $4.9 | $3.7 | 31% | |||
| Adjusted EBITDA Margin | 32% | 30% | ||||
| Adjusted EBITDA per Share | $0.20 | $0.16 | 25% | |||
(1) See Management's Discussion and Analysis for definition and adjustments applied to Adjusted EBITDA, and the definition of Backlog.
| Other Financial Highlights | |
|
| Revenue Analysis | ||||||||
| Three Months Ended Dec 31, 2022 | Three Months Ended Sept 30, 2022 | % QoQ Change | Three Months Ended Dec 31, 2021 | % YoY Change | ||||
| Cloud Subscriptions ($M) | $6.0 | $5.7 | 5% | $5.3 | 14% | |||
| Maintenance & Support ($M) | $3.7 | $3.4 | 9% | $3.5 | 6% | |||
| Professional Services Revenue ($M) | $4.9 | $4.4 | 11% | $2.9 | 69% | |||
| Other Revenue ($M) | $0.7 | $0.7 | - | $0.9 | (22%) | |||
| Total Revenue ($M) | $15.3 | $14.2 | 8% | $12.6 | 21% | |||
Financial Highlights for the 12 Months Ended December 31, 2022
The below supplementary information has been prepared by management and is provided to facilitate comparisons of results for Calendar Year 2022 with those of Calendar Year 2021, due to the Company's change of its fiscal year end.
| IFRS Measures | ||||||
| 12 Months Ended Dec 31, 2022 | 12 Months Ended Dec 31, 2021 | % YoY Change | ||||
| Revenue ($M) | $56.4 | $41.7 | 35% | |||
| Cloud Subscriptions ($M) | $22.9 | $17.9 | 28% | |||
| Maintenance & Support ($M) | $13.6 | $14.6 | (7%) | |||
| Gross Profit ($M) | $35.5 | $29.1 | 22% | |||
| Gross Profit Margin | 63% | 70% | ||||
| Profit Before Income Tax ($M) | $2.9 | $3.5 | (17%) | |||
| Non-IFRS Measures1 | ||||||
| 12 Months Ended Dec 31, 2022 | 12 Months Ended Dec 31, 2021 | % YoY Change | ||||
| Adjusted EBITDA ($M) | $17.2 | $16.0 | 8% | |||
| Adjusted EBITDA Margin | 30% | 38% | ||||
| Adjusted EBITDA per Share | $0.72 | $0.66 | 8% | |||
(1) See Management's Discussion and Analysis for definition and adjustments applied to Adjusted EBITDA.
Audited Financial Highlights for Fiscal 2022 (15 Months) and Fiscal 2021 (12 Months)
Comparison of 15-month and 12-month fiscal years is provided as required pursuant to Section 4.8 of National Instrument 51-102 - Continuous Disclosure Obligations.
| IFRS Measures | ||||||
| 15 Months Ended Dec 31, 2022 | 12 Months Ended Sept 30, 2021 | % YoY Change | ||||
| Revenue ($M) | $69.0 | $38.7 | 78% | |||
| Cloud Subscriptions ($M) | $28.2 | $15.1 | 86% | |||
| Maintenance & Support ($M) | $17.1 | $15.6 | 9% | |||
| Gross Profit ($M) | $43.6 | $28.0 | 56% | |||
| Gross Profit Margin | 63% | 72% | ||||
| Profit Before Income Tax ($M) | $2.9 | $6.3 | (53%) | |||
| Non-IFRS Measures1 | ||||||
| 15 Months Ended Dec 31, 2022 | 12 Months Ended Sept 30, 2021 | % YoY Change | ||||
| Adjusted EBITDA ($M) | $20.9 | $17.2 | 22% | |||
| Adjusted EBITDA Margin | 30% | 44% | ||||
| Adjusted EBITDA per Share | $0.88 | $0.71 | 24% | |||
(1) See Management's Discussion and Analysis for definition and adjustments applied to Adjusted EBITDA.
About Sylogist
Sylogist provides mission-critical SaaS solutions to over 2,000 public sector customers globally across the government, nonprofit, and education verticals. The Company's stock is traded on the Toronto Stock Exchange under the symbol SYZ. Information about Sylogist, inclusive of full financial statements together with Management's Discussion and Analysis, can be found at www.sylogist.com.
Forward-Looking Statements
Certain statements in this news release may be forward-looking statements within the meaning of applicable securities laws and regulations. These statements typically use words such as expect, believe, estimate, project, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. Forward-looking information in this news release includes statements with respect to Sylogist continuing to execute on its organic growth initiatives, drive momentum, and create long-term shareholder value. By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the beliefs and plans and other forward-looking expectations expressed herein will not be achieved or will prove inaccurate. Although Sylogist believes that the expectations reflected in these forward-looking statements are reasonable, it provides no assurance that these expectations will prove to have been correct. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including its inability to attract key employees or enlist customer support, its inability to develop innovative technology, its inability to find opportunities to deploy free cash flow, continuing headwinds from COVID-19, and economic turmoil. Additional information regarding some of these risks, uncertainties and other factors may be found in the Company's Annual Information Form for the fiscal period ended September 30, 2021 and in the management's discussion and analysis for the fiscal period ended December 31, 2022, and other documents available on the Company's profile at www.sedar.com. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include Sylogist's ability to attract and retain employees and customers and to realize on its investments, the ability to expand technology partner and customer relationships and the acceleration of organic and inorganic growth. Although Sylogist believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. Sylogist disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Certain information set out herein may be considered as "financial outlook" within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding Sylogist's reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
Non-IFRS Financial Measures
Revenue Backlog, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted EBITDA per share are non-GAAP financial measures. Revenue Backlog is defined as total revenue contracted but not yet recognized. Adjusted EBITDA is defined as: profit for the period before stock-based compensation expense, share-based payments, foreign exchange gains or losses, interest expense, bargain purchase price on acquisition, income taxes, acquisition-related costs, change in purchase consideration fair value, depreciation and amortization. Adjusted EBITDA Margin refers to Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA per share refers to Adjusted EBITDA per basic weighted average number of shares outstanding.
This news release makes reference to certain non-IFRS measures. These measures are not recognized measures under Canadian IFRS, do not have a standardized meaning prescribed by Canadian IFRS and are therefore may not be comparable to similar measures presented by other issuers. These measures are provided as additional information to complement measures under IFRS by providing further understanding of the Company's expected results of operations from management's perspective. Accordingly, such measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under Canadian IFRS.
Revenue Backlog, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted EBITDA per share are provided to investors as alternative methods for assessing the Company's operating results in a manner that is focused on the Company's ongoing operations and to provide a more consistent basis for comparison between periods. These measures should not be construed as alternatives to profit or cash flow from operating activities determined in accordance with IFRS as an indicator of the Company's performance. For further information regarding non-IFRS measures used by the Company, please refer to the management's discussion and analysis of the Company, copies of which are available on Sylogist's SEDAR profile at www.sedar.com.
For further information contact:
Bill Wood, President and CEO
or
Rudy Shirra, Director of Business Development and Operations Strategy
Sylogist Ltd.
(403) 266-4808
ir@sylogist.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/159542