Information Services Corporation (TSX:ISV) announced a 2.8% increase in its fISCal 2020 revenue to $136.7 million, which the company attributed to strong growth in its Registry Operations, new customer growth in its Services division, and the addition of new Recovery Solutions revenue with its acquisition of Paragon.
Information Services Corp also noted that its net income for the year rose to $20.9 million from $19.4 million in 2019, as its cash balance climbed more 43% during 2020 to $33.9 million as of December 31.
“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 a world-leading example of how core public registries should be run,” Information Services Corporation CEO Jeff Stusek said in a statement.
READ: Information Services continues to grow its services and tech segments after 'remarkable' 2020
Stusek added: “Following the acquisition of Paragon and new business wins, our Services business 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 by successfully completing 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.”
As well, the company recorded 4Q revenue of $39.0 million, a $1.1 million increase from the same period last year, as its net income edged up to $7.9 million from $7.3 million in the comparable quarter of 2019.
Information Services Corp cautioned that it expects volumes in its Registry Operations and Services segments to be lower than normal in 2021, as the Canadian economy’s pace of recovery could be uneven and is dependent on how long the pandemic continues. Therefore, the company will not be providing guidance for the coming year.
It added, however, that it will continue 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, thus reducing 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 company has a host of diversified, yet complementary revenue streams through its three business segments: Registry Operations, Services and Technology Solutions.
Contact Sean at sean@proactiveinvestors.com