Information Services Corporation posted third-quarter results showing an 11% revenue rise year-over-year, fueled by strong economic activity in the markets in which it operates, including its registry operations and services segment.
Revenue for the three months ended September 30, 2021, rose to $41.4 million while adjusted underlying earnings (EBITDA) climbed 31% to $17.3 million from $10.9 million in the corresponding quarter last year as its adjusted EBITDA margin improved to 41.8% from 35.6% previously.
The Saskatchewan-based firm has also declared a quarterly dividend of $0.23 per Class A voting share after increasing its expected annual dividend by 15% to $0.92 per share to reflect the strength of its current business and to affirm its commitment to continue rewarding shareholders as it grows.
READ: ISC appoints Shawn Peters as president and CEO
Net income reached $9.7 million or $0.55 per share and $0.53 per diluted share compared to $5 million or $0.29 per basic and diluted share in the third quarter of 2020.
Free cash flow for the quarter was $13.3 million, an increase of 41% from the previous comparable period and it ended September with cash of $42.9 million, up from $33.9 million as of December 31, 2020.
“We recognize that the strong economic activity we have seen in 2021, particularly in Saskatchewan, may not continue indefinitely and that uncertainty remains related to the continued impact of coronavirus (COVID-19),” president and CEO Jeff Stusek said in a statement.
“However, we have positioned the company well, we continue to optimize its performance, and we remain focused on our customers and our growth. All factors that will ensure our continued success.”
Stusek said his decision to step down from his role was announced concurrently with the appointment of Shawn Peters, currently executive vice president and CFO, as his replacement effective February 1, 2022.
“There is no question that Shawn is the right person to succeed me and I wish him every success,” Stusek added.
“He and I are working closely together to ensure a smooth transition and the continued success of ISC (TSX:ISV).”
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 company has a host of diversified, yet complementary revenue streams through its three business segments: Registry Operations, Services and Technology Solutions.
Contact the author at stephen.gunnion@proactiveinvestors.com