Highlights for the Fourth Quarter ended
- Revenue increased 13.9% to
$123.1 million . - Recurring revenue, which includes SaaS and maintenance services, grew 35.0% to
$87.2 million . - Operating profits improved from
$33.1 to$35.7 million , while achieving a 30.8% EBITDA margin.
Financial highlights for the three and twelve months ended
- Revenue increased to
$123.1 and$454 .0 million, respectively, compared to revenue of$108 .1 and$427.6 million ; - Results from operating activities were
$35.7 and$122 .1 million, respectively, compared to$33 .1 and$129.7 million ; - Net income was
$25.1 and$72 .2 million, respectively, compared to$36 .9 and$94.5 million ; - Adjusted EBITDA was
$37.9 and$133 .8 million, respectively, compared to$35 .8 and$140.6 million ; - Cash flows from operating activities, excluding changes in working capital, was
$43.5 and$140 .5 million, respectively, compared to$37 .7 and$145 .1 million;
In fiscal 2023 we achieved a significant milestone by expanding our revenue, increasing our cash reserves and also deploying
The growth in revenue was accomplished through the expansion of our recurring SaaS revenue base, bolstered by new revenues from Qumu, Navita and Lifesize, all of which were acquired and successfully integrated in Fiscal 2023, combined with positive impacts from foreign exchange rates in the year. This positive momentum was somewhat offset by declining software license revenue as we see increasing customer preference for SaaS solutions. Aligned with our commitment to provide our customers choice, we are actively broadening the global availability of our SaaS offerings, particularly in our customer experience and contact center technologies where demand for SaaS is growing. Despite the industry shift, we remain profitable, reporting results from operating activities of
With cash reserves of
Quarterly dividends:
Today, the Board of Directors approved the Company's eligible quarterly dividend of
Financial Highlights
(unaudited, in thousands of Canadian dollars)
For the period ended | Three months | Twelve months | |||||||||||
2023 | 2022 | Var ($) | Var (%) | 2023 | 2022 | Var ($) | Var (%) | ||||||
Revenue | $ | 123,129 | $ | 108,060 | 15,069 | 13.9 | $ | 454,022 | $ | 427,585 | 26,437 | 6.2 | |
Direct costs | 41,213 | 32,340 | 8,873 | 27.4 | 149,999 | 130,097 | 19,902 | 15.3 | |||||
Revenue, net of direct costs | $ | 81,916 | $ | 75,720 | 6,196 | 8.2 | $ | 304,023 | $ | 297,488 | 6,535 | 2.2 | |
As a % of revenue | 66.5 % | 70.1 % | 67.0 % | 69.6 % | |||||||||
Operating expenses | 46,115 | 42,448 | 3,667 | 8.6 | 179,438 | 167,418 | 12,020 | 7.2 | |||||
Special charges | 117 | 123 | (6) | (4.9) | 2,477 | 403 | 2,074 | 514.6 | |||||
Results from operating activities | $ | 35,684 | $ | 33,149 | 2,535 | 7.6 | $ | 122,108 | $ | 129,667 | (7,559) | (5.8) | |
As a % of revenue | 29.0 % | 30.7 % | 26.9 % | 30.3 % | |||||||||
Amortization of acquired software and | (11,205) | (8,826) | (2,379) | (27.0) | (39,605) | (36,174) | (3,431) | (9.5) | |||||
Foreign exchange gains | 2,753 | 931 | 1,822 | n/a | 1,266 | 1,954 | (688) | (35.2) | |||||
Interest expense – lease obligations | (164) | (164) | - | 0.0 | (695) | (735) | 40 | 5.4 | |||||
Finance income | 2,581 | 651 | 1,930 | n/a | 6,264 | 1,192 | 5,072 | 425.5 | |||||
Finance expenses | (27) | (27) | - | 0.0 | (163) | (89) | (74) | (83.1) | |||||
Other (expense) income | 17 | (507) | 524 | 103.4 | (1,950) | 423 | (2,373) | (561.0) | |||||
Income before income taxes | $ | 29,639 | $ | 25,207 | 4,432 | 17.6 | $ | 87,225 | $ | 96,238 | (9,013) | (9.4) | |
Provision for (recovery of) income taxes | 4,517 | (11,742) | 16,259 | 138.5 | 14,977 | 1,740 | 13,237 | 760.7 | |||||
Net Income for the period | $ | 25,122 | $ | 36,949 | (11,827) | (32.0) | $ | 72,248 | $ | 94,498 | (22,250) | (23.5) | |
Basic earnings per share | 0.45 | 0.67 | (0.22) | (32.8) | 1.31 | 1.70 | (0.39) | (22.9) | |||||
Diluted earnings per share | 0.45 | 0.67 | (0.22) | (32.8) | 1.31 | 1.70 | (0.39) | (22.9) | |||||
Operating cash flows | 28,318 | 18,539 | 9,779 | 52.7 | 115,298 | 103,181 | 12,117 | 11.7 | |||||
Operating cash flows excluding changes in | 43,504 | 37,740 | 5,764 | 15.3 | 140,492 | 145,074 | (4,582) | (3.2) | |||||
Adjusted EBITDA | |||||||||||||
Results from operating activities | 35,684 | 33,149 | 2,535 | 7.6 | 122,108 | 129,667 | (7,559) | (5.8) | |||||
Depreciation | 627 | 709 | (82) | (11.6) | 2,451 | 2,799 | (348) | (12.4) | |||||
Depreciation of right-of-use assets | 1,491 | 1,824 | (333) | (18.3) | 6,764 | 7,754 | (990) | (12.8) | |||||
Special charges | 117 | 123 | (6) | (4.9) | 2,477 | 403 | 2,074 | 514.6 | |||||
Adjusted EBITDA | $ | 37,919 | $ | 35,805 | 2,114 | 5.9 | $ | 133,800 | $ | 140,623 | (6,823) | (4.9) | |
Adjusted EBITDA margin | 30.8 % | 33.1 % | 29.5 % | 32.9 % | |||||||||
Adjusted EBITDA per diluted share | $ | 0.69 | $ | 0.65 | 0.04 | 6.2 | $ | 2.42 | $ | 2.53 | ( 0.11) | (4.3) |
Consolidated Statements of Financial Position | |||||
(in thousands of Canadian dollars) | As at | As at | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 239,532 | $ | 225,104 | |
Short-term investments | 827 | 2,950 | |||
Accounts receivable | 93,383 | 93,104 | |||
Prepaid expenses and other assets | 15,515 | 12,848 | |||
Income taxes recoverable | 114 | 492 | |||
349,371 | 334,498 | ||||
Non-current assets: | |||||
Property and equipment | 3,273 | 4,186 | |||
Right-of-use assets | 12,242 | 20,063 | |||
Intangible assets | 109,659 | 85,902 | |||
| 280,241 | 230,002 | |||
Deferred income tax assets | 28,884 | 30,347 | |||
434,299 | 370,500 | ||||
$ | 783,670 | $ | 704,998 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable and accrued liabilities | $ | 67,769 | $ | 60,525 | |
Dividends payable | 12,156 | 10,221 | |||
Provisions | 2,238 | 3,183 | |||
Deferred revenue | 109,019 | 83,122 | |||
Lease obligations | 6,322 | 6,822 | |||
197,504 | 163,873 | ||||
Non-current liabilities: | |||||
Income taxes payable | 1,333 | 2,576 | |||
Deferred income tax liabilities | 13,340 | 12,038 | |||
Deferred revenue | 8,170 | 3,470 | |||
Net employee defined benefit obligation | 1,912 | 1,821 | |||
Lease obligations | 6,080 | 13,055 | |||
30,835 | 32,960 | ||||
228,339 | 196,833 | ||||
Shareholders' equity | |||||
Share capital | 107,701 | 107,007 | |||
Contributed surplus | 10,404 | 8,882 | |||
Retained earnings | 426,397 | 401,247 | |||
Accumulated other comprehensive income (loss) | 10,829 | (8,971) | |||
555,331 | 508,165 | ||||
$ | 783,670 | $ | 704,998 |
Consolidated Statement of Operations and Comprehensive Income | |||||
(in thousands of Canadian dollars, except per share amounts) | |||||
Three months | Twelve months | ||||
Periods ended | 2023 (unaudited) | 2022 (Unaudited) | 2023 | 2022 | |
Revenue | |||||
Software licenses | $ 17,467 | $ 25,588 | $ 80,054 | $ 90,602 | |
SaaS and maintenance services | 87,196 | 64,575 | 297,635 | 258,277 | |
Professional services | 16,483 | 16,066 | 67,273 | 68,648 | |
Hardware | 1,983 | 1,831 | 9,060 | 10,058 | |
123,129 | 108,060 | 454,022 | 427,585 | ||
Direct costs | |||||
Software licenses | 622 | 704 | 2,910 | 4,340 | |
Services | 39,108 | 30,594 | 141,802 | 119,762 | |
Hardware | 1,483 | 1,042 | 5,287 | 5,995 | |
41,213 | 32,340 | 149,999 | 130,097 | ||
Revenue, net of direct costs | 81,916 | 75,720 | 304,023 | 297,488 | |
Operating expenses | |||||
Selling, general and administrative | 23,702 | 21,727 | 90,889 | 84,603 | |
Research and development | 20,295 | 18,188 | 79,334 | 72,262 | |
Depreciation | 627 | 709 | 2,451 | 2,799 | |
Depreciation of right-of-use assets | 1,491 | 1,824 | 6,764 | 7,754 | |
Special charges | 117 | 123 | 2,477 | 403 | |
46,232 | 42,571 | 181,915 | 167,821 | ||
Results from operating activities | 35,684 | 33,149 | 122,108 | 129,667 | |
Amortization of acquired software and customer relationships | (11,205) | (8,826) | (39,605) | (36,174) | |
Foreign exchange gains | 2,753 | 931 | 1,266 | 1,954 | |
Interest expense – lease obligations | (164) | (164) | (695) | (735) | |
Finance income | 2,581 | 651 | 6,264 | 1,192 | |
Finance expenses | (27) | (27) | (163) | (89) | |
Other income (expense) | 17 | (507) | (1,950) | 423 | |
Income before income taxes | 29,639 | 25,207 | 87,225 | 96,238 | |
Provision for (recovery of) income taxes | 4,517 | (11,742) | 14,977 | 1,740 | |
Net income for the period | $ 25,122 | $ 36,949 | $ 72,248 | $ 94,498 | |
Items that may be subsequently reclassified to income: | |||||
Cumulative translation adjustment | 12,394 | 17,883 | 19,800 | 5,613 | |
Other comprehensive income | 12,394 | 17,883 | 19,800 | 5,613 | |
Comprehensive income | $ 37,516 | $ 54,832 | $ 92,048 | $ 100,111 | |
Earnings per share | |||||
Basic | $ 0.45 | $ 0.67 | $ 1.31 | $ 1.70 | |
Diluted | $ 0.45 | $ 0.67 | $ 1.31 | $ 1.70 |
Consolidated Statements of Cash Flows | |||||
(in thousands of Canadian dollars) | Three months | Twelve months | |||
Periods ended | 2023 (Unaudited) | 2022 (Unaudited) | 2023 | 2022 | |
OPERATING ACTIVITIES | |||||
Net income for the period | $ 25,122 | $ 36,949 | $ 72,248 | $ 94,498 | |
Adjustments for non-cash items | |||||
Depreciation | 627 | 709 | 2,451 | 2,799 | |
Depreciation of right-of-use assets | 1,491 | 1,824 | 6,764 | 7,754 | |
Interest expense – lease obligations | 164 | 164 | 695 | 735 | |
Amortization of acquired software and customer relationships | 11,205 | 8,826 | 39,605 | 36,174 | |
Stock-based compensation expense | 368 | 476 | 1,639 | 1,708 | |
Provision for (recovery of) income taxes | 4,517 | (11,742) | 14,977 | 1,740 | |
Finance expenses and other (expense) income | 10 | 534 | 2,113 | (334) | |
43,504 | 37,740 | 140,492 | 145,074 | ||
Changes in non-cash operating working capital | (11,624) | (14,467) | (11,244) | (26,139) | |
Income taxes paid | (3,562) | (4,734) | (13,950) | (15,754) | |
Net cash provided by operating activities | 28,318 | 18,539 | 115,298 | 103,181 | |
INVESTING ACTIVITIES | |||||
Purchase of property and equipment, net | (453) | (321) | (1,060) | (919) | |
Acquisitions, net of cash acquired* | (27,189) | (14,139) | (55,167) | (20,231) | |
Recovery (payment) of purchase consideration for prior-year acquisitions | 13 | 528 | (999) | 120 | |
Sale (purchase) of short-term investments | 65 | - | (4) | (60) | |
Net cash used in investing activities | (27,564) | (13,932) | (57,230) | (21,090) | |
FINANCING ACTIVITIES | |||||
Issuance of share capital | - | - | 604 | 971 | |
Normal course issuer bid share repurchases | (425) | (367) | (425) | (9,318) | |
Repayment of lease obligations | (1,440) | (2,010) | (7,194) | (8,235) | |
Dividends paid | (12,159) | (10,224) | (44,765) | (38,286) | |
Net cash used in financing activities | (14,024) | (12,601) | (51,780) | (54,868) | |
Impact of foreign exchange on cash and cash equivalents | 4,018 | 7,152 | 8,140 |
1,991 | |
(Decrease) increase in cash and cash equivalents | (9,252) | (842) | 14,428 | 29,214 | |
Cash and cash equivalents - beginning of period | 248,784 | 225,946 | 225,104 | 195,890 | |
Cash and cash equivalents - end of period | $ 239,532 | $ 225,104 | $ 239,532 | $ 225,104 |
* Acquisitions are net of cash acquired of nil and |
Segment Reporting Information
(in thousands of Canadian dollars)
For the period ended | Three months | Twelve months | |||||||||||
IMG | AMG | Total | IMG | AMG | Total | ||||||||
Revenue | $ | 78,578 | $ | 44,551 | $ | 123,129 | $ | 265,311 | $ | 188,711 | $ | 454,022 | |
Direct costs | (24,337) | (16,876) | (41,213) | (78,788) | (71,211) | (149,999) | |||||||
Revenue, net of direct costs | 54,241 | 27,675 | 81,916 | 186,523 | 117,500 | 304,023 | |||||||
Operating expenses excluding special charges | (21,807) | (10,450) | (32,257) | (84,493) | (45,169) | (129,662) | |||||||
Depreciation | (485) | (142) | (627) | (1,969) | (482) | (2,451) | |||||||
Depreciation of right-of-use assets | (904) | (587) | (1,491) | (4,184) | (2,580) | (6,764) | |||||||
Segment profit | $ | 31,045 | $ | 16,496 | $ | 47,541 | $ | 95,877 | $ | 69,269 | $ | 165,146 | |
Special charges | (117) | (2,477) | |||||||||||
Corporate and shared service expenses | (11,740) | (40,561) | |||||||||||
Results from operating activities | $ | 35,684 | $ | 122,108 | |||||||||
For the period ended | Three months | Twelve months | |||||||||||
IMG | AMG | Total | IMG | AMG | Total | ||||||||
Revenue | $ | 61,759 | $ | 46,301 | $ | 108,060 | $ | 235,925 | $ | 191,660 | $ | 427,585 | |
Direct costs | (15,815) | (16,525) | (32,340) | (62,079) | (68,018) | (130,097) | |||||||
Revenue, net of direct costs | 45,944 | 29,776 | 75,720 | 173,846 | 123,642 | 297,488 | |||||||
Operating expenses excluding special charges | (18,394) | (11,859) | (30,253) | (75,272) | (45,816) | (121,088) | |||||||
Depreciation | (583) | (126) | (709) | (2,336) | (463) | (2,799) | |||||||
Depreciation of right-of-use assets | (1,112) | (712) | (1,824) | (4,742) | (3,012) | (7,754) | |||||||
Segment profit | $ | 25,855 | $ | 17,079 | $ | 42,934 | $ | 91,496 | $ | 74,351 | $ | 165,847 | |
Special charges | (123) | (403) | |||||||||||
Corporate and shared service expenses | (9,662) | (35,777) | |||||||||||
Results from operating activities | $ | 33,149 | $ | 129,667 | |||||||||
About-
Conference Call and Webcast
A conference call to discuss the results will be held on
The Company uses non-IFRS measures to assess its operating performance. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Company uses Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA per diluted share as measures of operating performance. Therefore, these collective Adjusted EBITDA measures may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is calculated based on results from operating activities adjusted for depreciation of property and equipment and right-of-use assets and special charges for acquisition related restructuring costs. Management uses Adjusted EBITDA to evaluate operating performance as it excludes amortization of software and intangibles (which is an accounting allocation of the cost of software and intangible assets arising on acquisition), any impact of finance and tax related activities, asset depreciation, foreign exchange gains and losses, other income and restructuring costs primarily related to acquisitions.
SOURCE
© Canada Newswire, source