Information Services Corp (TSE:ISV), which provides registry and information management services for public data records, reported a solid set of second quarter results Wednesday, which showed increased revenue and net income, compared to the same period a year earlier.
The tech firm noted that revenue at its services division - which provides solutions for public record data, customer authentication, and corporate legal services - rose by 20% compared to the second quarter of 2018.
READ: Information Services Corp shows strong 1Q revenue growth in services segment
Meanwhile, net income for the group in the three months to end June came in at $5.8 million, versus $5.2 million a year earlier, on revenue of $34.2 million, compared to $31.1 million in the second quarter of 2018 - an increase of 10.3%.
Underlying earnings (EBITDA) came in at $10.8 million, which was flat compared to the $10.7 million seen in the second quarter of 2018.
As at the end of the quarter, the group had cash of $19.2 million, compared to $28.7 million as at the end of 2018, while total debt stood at $19 million versus $20 million as at the end of 2018.
"Following on from the first quarter of 2019, we delivered a solid second quarter performance with consolidated revenue and net income both up year-over-year," Jeff Stusek, the chief executive officer at ISC said in a statement.
"While our EBITDA remained flat this was only because of an adjustment we made in Q2 2018. Otherwise it would have been $1.1 million higher for Q2 2019 compared to Q2 2018.
"Our Registry Operations segment continues to feel the impacts of economic conditions. However, it remains a strong free cash flow business while we drive growth through our services segment which saw revenue up 20 per cent year-over-year in Q2 2019 compared to Q2 2018.
"With the first half of the year behind us, we will remain focused on ensuring that we achieve the goals that we set at the start of the year," Stusek added.
Focused on goals
For the rest of the year, ISC said it would continue to drive organic growth in all its segments by looking to expand its service offerings, secure new business and explore appropriate acquisition targets.
The firm said its full year guidance remained unchanged, with revenue expected to be between $129 million and $135 million and EBITDA to be between $31 million and $35 million on an EBITDA margin of between 24% and 27%.
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