Information Services Corporation (TSX:ISV) (ISC) has said its 2023 revenue is expected to be between $200 million and $205 million, while net income is expected to be between $27 million and $32 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to be between $58 million and $63 million, and adjusted EBITDA is expected to be between $65 million and $70 million, the company added as it released its outlook and annual guidance.
The company said it continues to believe it is positioned for success, given the proven robustness of its business. It expects revenue to be consistent in 2023, driven by its two core segments, namely registry operations and services, through the addition of Ontario Property Tax Services revenue and the continuing expansion of its services suite of products and services to existing customers.
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The Registry Operations segment is expected to remain a strong free cash flow contributor and a direct beneficiary of any future upswing in economic conditions in Saskatchewan, the company said.
ISC noted that it will pay particular attention to any further interest rate increases in 2023, which may temporarily dampen transaction volumes but added that provincial market publications suggest the housing market is changing as consumers adjust to higher lending rates and higher costs of living.
New opportunities
In Services, ISC expects to work on new opportunities with its customers and continue its investment in Registry Complete and Recovery Complete in 2023. With the addition of accounts receivable management, complementing asset recovery within its Recovery Solutions suite of services, ISC has expanded its product offerings in this division to support customers all the way through to the end of the lending life cycle.
In Technology Solutions in 2023, ISC expects to complete and deliver solution implementation projects deferred from 2022. The company said it is optimistic about the current state of its new business pipeline due to the ongoing need to update technology solutions.
ISC's main expenses will continue to be wages and salaries, cost of goods sold, information technology costs, and costs associated with the pursuit of new business opportunities. With current inflationary pressures, the company plans to continue looking at the appropriateness of its pricing across the business to maintain margins while remaining competitive.
During 2023, and as part of the company's corporate strategy related to information security, ISC also expects to complete certification for ISO 27001 which will demonstrate its adherence to controls in management information security assets.
The diversification of the company's business remains a key part of its strategy, ISC said, adding that it will continue to look for efficiencies across the business.
Headquartered in Canada, ISC is the leading provider of registry and information management services for public data and records.
Contact the author at jon.hopkins@proactiveinvestors.com