Information Services Corporation (TSE:ISV) posted growing revenue and income in its third-quarter results released Wednesday, fueled in part by the information services company’s acquisition of asset recovery firm Paragon Inc through a subsidiary.
ISC reported third-quarter revenue of $37.1 million, a 15% increase year-over-year. Net income came in at $5 million ($0.29 per share), up 51% from $3.3 million ($0.19 per share), in the same period of 2019.
The company attributed the boost to a combination of organic growth and the Paragon addition.
READ: Information Services Corporation says Paragon acquisition should be "immediately accretive," as it posts 2Q earnings
“The third quarter was a productive one for us,” CEO Jeff Stusek said in a statement. “In addition to the successful completion of the acquisition of the assets of Paragon during the quarter, our financial performance remained strong and the resiliency of our business segments is evident in our results.”
ISC’s free cash flow for the quarter was $9.4 million, a $2.8 million increase from $6.6 million in 2019.
Despite experiencing lower year-over-year transaction volumes in its registry operations segments — which the company attributes to the coronavirus pandemic — third-quarter volumes improved on second-quarter volumes.
“With only a couple of months to go in this fISC (TSX:ISV)al year and based on our strong results for the year so far, we remain confident that we have taken appropriate action to reduce operating costs to remain competitive through the pandemic,” Stusek said. “Across our business, from Vernon to Dublin, the seamless transition we made to work from home is evident and I would like to commend all our employees for their continued professionalism and laser-like customer focus. The short-term challenges that currently face us do not dampen my continued optimism for ISC in the long-term.”
ISC provides registry and information management services for public data and records and is focused on sustaining the core registry business while pursuing new growth opportunities.
The Saskatchewan-based firm has a host of diversified, yet complementary revenue streams through its three business segments: registry operations, services and technology solutions.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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