Information Services Corporation (TSX:ISV) announced that its revenue for 2020 is expected to exceed the consensus estimate of $135.7 million, on strength in the Saskatchewan real estate market during the second half of the year, new customer acquisitions in the company’s Services segment, as well as the addition of its new Recovery Solutions division.
Information Services Corp also said it is well-positioned to manage through the COVID-19 related challenges in 2021, with its results expected to reflect that, yet it is unable, at this time, to predict the full impact of the pandemic on its 2021 financial results.
“There is no question that 2020 was a remarkable year for ISC even though we all faced challenges due to the global pandemic. Our Registry Operations business continues to be a strong free cash flow generator and world-leading example of how core public registries should be run,” Information Services Corporation CEO Jeff Stusek said in a statement.
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He added: “Following the successful acquisition of the assets of Paragon in July, our Services business now offers a complete collateral management solution to our customers and became a major contributor to our free cash flow alongside Registry Operations, further strengthening the foundation of our consolidated business. Technology Solutions is continuing to gain traction as a key piece of our portfolio with the successful completion of implementations in several jurisdictions during the year.”
“While the short-term economic outlook remains uncertain, our performance in 2020 reinforces the resilience of our business and why I remain excited about the future for ISC.”
The company noted that it also anticipates its 4Q and year-end earnings before interest, taxes, depreciation and amortization (EBITDA) to be “strong” compared to consensus estimates of $11.3 million and $41.2 million, respectively, as Information Services Corp focused on cost management combined with COVID-19 related reductions.
Information Services Corp added that it is continuing to invest in the technology supporting its Services segment and transition away from legacy platforms to optimize the customer experience through automation of the delivery of services to reduce the company’s cost of delivery.
Information Services Corporation 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.
Under its registry segment, the group manages and operates the Saskatchewan Land Registry on behalf of the government of Saskatchewan under a 20-year deal.
Contact Sean at sean@proactiveinvestors.com