Information Services Corp (TSE:ISV) reported a 4.4% increase in revenue in the third quarter of 2017 but tax rate changes caused a drop in net income.
The bulk of ISC's revenue is linked to registry transaction volumes and values driven by economic conditions in Saskatchewan.
Land registry revenues for the quarter were C$14,335 out of an overall figure of C$23.9mln versus C$22.9mln in 2016 - an increase of 4.4%.
EBITDA (earnings before interest, taxes, depreciation and amortization) came in at C$7.6 million compared to C$7.3 million in the same period of 2016 - up 4.1%.
Free cash flow was up 42.9% to C$8mln in the period.
Net income though fell 50% to C$1.9 million or C$0.11 per basic and diluted share compared to C$3.8 million or $0.22 per basic and diluted share in the same period last year.
ISC said the drop was mainly due to the impact of a 1% reduction in "substantively enacted future corporate tax rates" by the Saskatchewan government during 2017, reducing the carrying value of deferred tax assets, resulting in a charge to the current period
"The first nine months of 2017 have been productive for ISC," said Jeff Stusek, the president and chief executive.
"Our consolidated performance has been good overall. We continue to execute on our strategy of focusing on our core business while examining opportunities for growth.
"Economic conditions in Saskatchewan are still expected to remain flat in 2017 and into 2018 but I continue to remain positive that we will weather these conditions due to the robust nature of our Registries business."
The group' total debt was up 38% to C$32.3 mln versus C$23.4mln at the end of 2016, while cash stood at C$38.6mln - up 15.2% from the end of 2016.
Looking ahead, based on various factors, ISC continues to expect an EBITDA margin of between 31% and 33% in 2017.
It has revised guidance for capital expenditures for 2017 downward from a range of between C$3.5 and C$5 million, to a range of $1 and $2 million due to management's focus on integration activities and the resultant changes to the timing and nature of certain planned projects.
Management expects capital expenditures for 2018 to return to historic levels as it resumes planned activities.
ISC shares eased 2.48% to C$17.72 each.