ISC Reports Another Year of Record Revenue and Adjusted EBITDA in Its Financial Results for 2024
Record revenue and adjusted EBITDA of $247.4 million and $90.3 million, respectively
Record high value transactions in the Saskatchewan Land Titles Registry and record revenue in the Services segment in 2024
Strong start on goal to double the size of the Company on a revenue and adjusted EBITDA basis by 2028
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 and twelve months ended December 31, 2024.
REGINA, Saskatchewan, March 17, 2025 (GLOBE NEWSWIRE) -- Information Services Corporation (TSX:ISC) ("ISC" or the "Company") today reported on the Company's financial results for the fourth quarter and year ended December 31, 2024.
Commenting on ISC's results, Shawn Peters, President and CEO stated, "With the first year of our five-year goal to double revenue and adjusted EBITDA by 2028 behind us, the foundation for the achievement of that goal has been firmly established in 2024." Peters continued, "Our guidance for 2025 reflects continued organic growth in line with historical trends and while not included in our guidance, our disciplined M&A strategy is intended to support our 2028 growth targets as we continue to pursue new opportunities."
Fourth Quarter 2024 Highlights
Revenue was $62.2 million for the quarter, an increase of 8 per cent compared to the fourth quarter of 2023. This increase was driven by increased volumes across the Saskatchewan Registries division of Registry Operations, record high-value property registrations in the Saskatchewan Land Titles Registry and new revenue related to the Bank Act Security Registry ("BASR"). Further contributing to this increase was the Services segment with growth in KYC and due diligence transactions in the Regulatory Solutions division and increased assignments and sales in the Recovery Solutions division.
Net income was $5.3 million or $0.29 per basic share and $0.29 per diluted share for the quarter, compared to $5.7 million or $0.32 per basic share and diluted share in the fourth quarter of 2023.
Net cash flow provided by operating activities was $22.3 million for the quarter, consistent with $22.2 million in the fourth quarter of 2023.
Adjusted net income was $9.3 million or $0.51 per basic share and $0.50 per diluted share compared to $9.8 million or $0.55 per basic share and $0.54 per diluted share in the fourth quarter of 2023.
Adjusted EBITDA was $21.0 million for the quarter, consistent with $21.3 million in the fourth quarter of 2023. Adjusted EBITDA margin was 33.8 per cent compared to 37.1 per cent in the fourth quarter of 2023. The decrease in the margin was driven by increased investment in information technology services primarily related to project delivery work in Technology Solutions.
Adjusted free cash flow for the quarter was $13.2 million, compared to $14.0 million in the fourth quarter of 2023.
Voluntary prepayments of $14.0 million were made towards the Company's Credit Facility during the quarter. This is part of the Company's plan to deleverage towards a long-term net leverage target of 2.0x, 2.5x.
Year-end 2024 Highlights
Revenue was $247.4 million for the year ended December 31, 2024, an increase of 15 per cent compared to $214.5 million in 2023. Growth was driven by strong performance from the Saskatchewan Registries division of Registry Operations, combined with a full year of fee adjustments made in July 2023 related to the Extension, compared to only five months in the prior year, and record high-value property registrations in the Land Titles Registry. Services also contributed to the growth with increases in KYC and due diligence transactions in the Regulatory Solutions division and increased assignments and sales in the Recovery Solutions division. Within Technology Solutions, the advancement of project work on existing and new solution definition and implementation contracts further added to the growth in revenue.
Net income was $20.2 million or $1.11 per basic share and diluted share for the year ended December 31, 2024, compared to $25.0 million or $1.41 per basic share and $1.39 per diluted share in 2023. Strong results from Registry Operations and Services were offset by increased interest and amortization associated with the Extension, investment in information technology services and people primarily related to project work in Technology Solutions, and share-based compensation expense.
Net cash flow provided by operating activities was $71.2 million for the year ended December 31, 2024, an increase of $14.4 million compared to 2023, driven by strong operating results and changes in non-cash working capital.
Adjusted net income was $42.9 million or $2.36 per basic share and $2.35 per diluted share for the year ended December 31, 2024, compared to $34.2 million or $1.92 per basic share and $1.90 per diluted share for the year ended December 31, 2023. The growth reflects strong results from Registry Operations and Services that were partially offset by increased interest expense due to higher average long-term debt outstanding compared to the prior year following the drawdown of the Credit Facility to fund the Upfront Payment in July 2023.
Adjusted EBITDA was a record $90.3 million for the year ended December 31, 2024, compared to $72.9 million last year. Adjusted EBITDA margin for the year was 36.5 per cent compared to 34.0 per cent in 2023. The increase in adjusted EBITDA and adjusted EBITDA margin was primarily driven by higher volumes, record high-value property registrations in the Saskatchewan Land Titles Registry and fee adjustments, all within the Saskatchewan Registries division of Registry Operations.
Adjusted free cash flow for the year ended December 31, 2024, was $56.4 million, an increase of $5.6 million compared to $50.8 million in 2023. This growth was driven by the same reasons noted for adjusted EBITDA.
Voluntary prepayments on our Credit Facility during the year, as part of the Company's plan to deleverage towards a long-term net leverage target of 2.0x, 2.5x, totalled $44.0 million. Additionally, in July the first of five annual cash payments of $30.0 million was made to the Government of Saskatchewan pursuant to the Extension Agreement, using funds drawn from the Credit Facility.
Financial Position as at December 31, 2024
Cash of $21.0 million compared to $24.2 million as at December 31, 2023, a decrease of $3.2 million.
Total debt of $167.6 million compared to $177.3 million as at December 31, 2023. 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 March 17, 2025, our Board declared a quarterly cash dividend of $0.23 per Class A Share, payable on or before April 15, 2025, to shareholders of record as of March 31, 2025.
Management's Discussion of ISC's Summary of Fourth Quarter and Year-end 2024 Financial Results
(thousands of CAD; except earnings per shareand where noted)
Quarter Ended December 31, 2024
Quarter Ended December 31, 2023
Year Ended December 31, 2024
Year Ended December 31, 2023
Revenue
Registry Operations
$ 33,069
$ 28,519
$ 125,588
$ 103,516
Services
26,742
25,368
110,196
101,712
Technology Solutions
2,371
3,604
11,570
9,268
Corporate and other
4
-
12
24
Total revenue
$ 62,186
$ 57,491
$ 247,366
$ 214,520
Total expenses
$ 49,338
$ 43,683
$ 196,495
$ 166,547
Adjusted EBITDA1
$ 21,000
$ 21,317
$ 90,326
$ 72,866
Adjusted EBITDA margin1 (% of revenue)
33.8%
37.1%
36.5%
34.0%
Net income
$ 5,296
$5,714
$ 20,241
$ 25,045
Adjusted net income1
$ 9,330
$9,848
$ 42,931
$ 34,213
Earnings per share (basic)
$ 0.29
$ 0.32
$ 1.11
$ 1.41
Earnings per share (diluted)
$ 0.29
$ 0.32
$ 1.11
$ 1.39
Adjusted earnings per share (basic)1
$ 0.51
$ 0.55
$ 2.36
$ 1.92
Adjusted earnings per share (diluted)1
$ 0.50
$ 0.54
$ 2.35
$ 1.90
Adjusted free cash flow1
$ 13,179
$ 13,975
$ 56,420
$ 50,770
1 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.
2024 Results of Operations
Total revenue was $247.4 million, up 15 per cent compared to 2023.
Registry Operations segment revenue was $125.6 million, up 21 per cent compared to 2023.
Land Registry revenue was $82.2 million, up compared to $63.5 million in 2023.
Personal Property Registry revenue was $12.8 million, up compared to $11.9 million in 2023.
Corporate Registry revenue was $13.2 million, up compared to $12.0 million in 2023.
Ontario Property Tax Assessment Services revenue was $15.7 million, consistent compared to $15.5 million in 2023.
Other Registries revenue was $1.6 million.
Services segment revenue was $110.2 million, up 8 per cent compared to 2023.
Regulatory Solutions revenue was $82.6 million, up compared to $76.2 million in 2023.
Recovery Solutions revenue was $14.8 million, up compared to $10.8 million in 2023.
Corporate Solutions revenue was $12.8 million, down compared to $14.8 million in 2023.
Technology Solutions revenue was $30.2 million, up 30 per cent compared to 2023.
Consolidated expenses were $196.5 million compared to $166.5 million for 2023.
Net income for the year ended December 31, 2024 was $20.2 million or $1.11 per basic share and $1.11 per diluted share. For the year ended December 31, 2023, net income was $25.0 million or $1.41 per basic share and $1.39 per diluted share.
Sustaining capital expenditures for 2024 were $8.3 million, compared to $2.4 million in 2023.
Outlook
The following section includes forward-looking information, including statements related to our strategy, future results, including revenue and adjusted EBITDA, segment performance, expenses, operating costs and capital expenditures, the industries in which we operate, economic activity, growth opportunities, investments and business development opportunities. Refer to "Caution Regarding Forward-Looking Information".
2025 marks the second year of ISC's growth plan to again double the size of the Company by 2028, on a similar metrics basis and based on 2023 results. 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 2028 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 ...
