ISC Delivers Robust Q3 Results; Saskatchewan Land Registry Volumes Soar

Information Services Corporation (TSX:ISV) ("ISC" or the "Company") has reported its third quarter 2024 financial results, showcasing strong performance across its segments. The Company's revenue grew by 12% year-over-year, driven by increased volumes in the Saskatchewan Registries division, fee adjustments, and new revenue from the Bank Act Security Registry (BASR). Adjusted EBITDA also surged by 18% to $22.7 million, reflecting the Company's robust operational efficiency.


The Saskatchewan Registries division played a significant role in ISC's growth, with volume increases and fee adjustments contributing to higher revenues. The adjusted EBITDA margin for this segment improved to 37.3% from 35.2% in the same period last year, demonstrating the positive impact of these factors on the Company's financial performance. Additionally, the successful launch of the online, self-service Customer Portal for the Bank Act Security Registry (BASR) has driven higher revenues through increased volumes and fee adjustments.


ISC's Technology Solutions segment also contributed to the Company's revenue growth, with new solution definition and implementation contracts driving progress. The segment's revenue increased by 103% year-over-year, highlighting the success of these new initiatives. This growth was partially offset by increased investment in information technology services, primarily related to project delivery work.

The Company's plan to deleverage towards a long-term net leverage target of 2.0x - 2.5x has positively impacted its financial position. ISC made voluntary prepayments of $16.0 million towards its Credit Facility during the quarter, reflecting its commitment to reducing debt. This strategy has improved the Company's ability to generate cash flow and invest in growth opportunities, ultimately driving its adjusted EBITDA margin higher.

ISC's strong performance in the third quarter of 2024 demonstrates the Company's ability to navigate market challenges and capitalize on growth opportunities. With a diversified business model and a focus on technological innovation, ISC is well-positioned to continue its growth trajectory and deliver value to shareholders. As the Company reaffirms its 2024 guidance, investors can expect ISC to maintain its momentum and achieve its highest annual revenue and adjusted EBITDA since going public in 2013.