Enghouse Releases Fourth Quarter and Year End Results
MARKHAM, ON, Dec. 12, 2024 /CNW/ - Enghouse Systems Limited (TSX:ENGH) announces its fourth quarter (unaudited) and audited year-end financial results for the period ended October 31, 2024. All figures are denominated in Canadian dollars unless otherwise indicated.
Fourth Quarter and Annual Financial Highlights:
- Revenue increased 2.1% to $125.7 million from $123.1 million in the fourth quarter last year and 10.7% for the fiscal year to $502.5 million from $454.0 million last year;
- Recurring revenue, which includes SaaS and maintenance services, grew 1.1% to $88.2 million compared to $87.2 million in Q4 2023, and represents 70.2% of total revenue. For the fiscal year, recurring revenue increased to $346.6 million from $297.6 million in the prior year, an increase of 16.4%, as we continue to see increased demand for SaaS;
- Results from operating activities decreased to $33.4 million compared to $35.7 million in Q4 2023 and increased in the fiscal year to $133.8 million, from $122.1 million in the prior year;
- Net income was $22.6 million compared to $25.1 million in Q4 2023 and $81.3 million in the fiscal year compared to $72.2 million last year as we continue to grow our business with a focus on profitability;
- Adjusted EBITDA decreased to $35.6 million compared to $37.9 million, while achieving a 28.3% margin for the quarter. Annual adjusted EBITDA was $143.8 million compared to $133.8 million in the prior year, an increase of 7.5%;
- Cash flow from operating activities, excluding changes in working capital, was $40.3 million compared to $43.5 million in the prior year's fourth quarter and $151.8 million for the fiscal year compared to $140.5 million in the prior year. Cash and cash equivalents increased to record levels of $274.2 million as at October 31, 2024.
Fiscal 2024 yielded a third year of consecutive revenue growth following the COVID period, which saw an unprecedented spike in demand for our Vidyo applications. We achieved a significant milestone, with revenue for the fiscal year exceeding $500 million, representing double digit growth of 10.7%. During the year we deployed cash of $43.4 million on acquisitions and returned $53.1 million to our shareholders through dividends. At the same time, we increased our cash reserves to $274.2 million, with no external debt, which positions the Company well for further acquisition growth. We are also pleased to announce record annual SaaS and maintenance services revenue of $346.6 million, an increase of $49.0 million or 16.4% compared to the prior year. SaaS and maintenance services continue to be an important source of revenue characterized by their predictable and recurring nature. They now represent 69.0% of total revenues for the year compared to 65.6% in the prior year.
In addition to the SaaS and maintenance growth, our professional services and hardware revenue showed marked increases for the year. In the current business environment, demand for on-premise, perpetual software licenses has declined as more customers are choosing SaaS solutions that require less upfront capital investment. During this market transition, we continue to focus on maintaining profitability as demonstrated by the 12.6% increase in our net income to $81.3 million from $72.2 million in the prior year.
We closed the year with a double digit increase in revenue and net income, significant expansion of our recurring revenue, record cash reserves and no external debt, positioning us to pursue opportunities that meet our acquisition criteria while continuing to pay dividends to our shareholders. The growth in revenue was achieved through our ability to acquire and effectively integrate new acquisitions into our business model.
Quarterly dividends:
Today, the Board of Directors approved the Company's eligible quarterly dividend of $0.26 per common share payable on February 28, 2025 to shareholders of record at the close of business on February 14, 2025.
Enghouse Systems Limited
Financial Highlights
(unaudited, in thousands of Canadian dollars)
For the period ended October 31 | Three months (Unaudited) | Twelve months | |||||||||||
2024 | 2023 | Var ($) | Var (%) | 2024 | 2023 | Var ($) | Var (%) | ||||||
Revenue | $ | 125,702 | $ | 123,129 | 2,573 | 2.1 | $ | 502,505 | $ | 454,022 | 48,483 | 10.7 | |
Direct costs | 44,967 | 41,213 | 3,754 | 9.1 | 175,586 | 149,999 | 25,587 | 17.1 | |||||
Revenue, net of direct costs | $ | 80,735 | $ | 81,916 | (1,181) | (1.4) | $ | 326,919 | $ | 304,023 | 22,896 | 7.5 | |
As a % of revenue | 64.2 % | 66.5 % | 65.1 % | 67.0 % | |||||||||
Operating expenses | 47,133 | 46,115 | 1,018 | 2.2 | 191,464 | 179,438 | 12,026 | 6.7 | |||||
Special charges | 169 | 117 | 52 | 44.4 | 1,609 | 2,477 | (868) | (35.0) | |||||
Results from operating activities | $ | 33,433 | $ | 35,684 | (2,251) | (6.3) | $ | 133,846 | $ | 122,108 | 11,738 | 9.6 | |
As a % of revenue | 26.6 % | 29.0 % | 26.6 % | 26.9 % | |||||||||
Amortization of acquired software and customer relationships | (9,322) | (11,205) | 1,883 | 16.8 | (40,505) | (39,605) | (900) | (2.3) | |||||
Foreign exchange gains (losses) | 1,870 | 2,753 | (883) | 32.1 | (1,680) | 1,266 | (2,946) | (232.7) | |||||
Interest expense – lease obligations | (126) | (164) | 38 | 23.2 | (556) | (695) | 139 | 20.0 | |||||
Finance income | 2,825 | 2,581 | 244 | 9.5 | 10,121 | 6,264 | 3,857 | 61.6 | |||||
Finance expenses | (8) | (27) | 19 | 70.4 | (49) | (163) | 114 | 69.9 | |||||
Other (expense) income | (424) | 17 | (441) | (2594.1) | 89 | (1,950) | 2,039 | 104.6 | |||||
Income before income taxes | $ | 28,248 | $ | 29,639 | (1,391) | (4.7) | $ | 101,266 | $ | 87,225 | 14,041 | 16.1 | |
Provision for income taxes | 5,607 | 4,517 | 1,090 | 24.1 | 19,938 | 14,977 | 4,961 | 33.1 | |||||
Net Income for the period | $ | 22,641 | $ | 25,122 | (2,481) | (9.9) | $ | 81,328 | $ | 72,248 | 9,080 | 12.6 | |
Basic earnings per share | 0.41 | 0.45 | (0.04) | (8.9) | 1.47 | 1.31 | 0.16 | 12.2 | |||||
Diluted earnings per share | 0.41 | 0.45 | (0.04) | (8.9) | 1.47 | 1.31 | 0.16 | 12.2 | |||||
Cash flows from operating activities | 31,583 | 28,318 | 3,265 | 11.5 | 132,071 | 115,298 | 16,773 | 14.5 | |||||
Cash flows from operating activities excluding changes in working capital | 40,270 | 43,504 | (3,234) | (7.4) | 151,803 | 140,492 | 11,311 | 8.1 | |||||
Adjusted EBITDA | |||||||||||||
Results from operating activities | 33,433 | 35,684 | (2,251) | (6.3) | 133,846 | 122,108 | 11,738 | 9.6 | |||||
Depreciation | 655 | 627 | 28 | 4.5 | 2,347 | 2,451 | (104) | (4.2) | |||||
Depreciation of right-of-use assets | 1,375 | 1,491 | (116) | (7.8) | 5,981 | 6,764 | (783) | (11.6) | |||||
Special charges | 169 | 117 | 52 | 44.4 | 1,609 | 2,477 | (868) | (35.0) | |||||
Adjusted EBITDA | $ | 35,632 | $ | 37,919 | (2,287) | (6.0) | $ | 143,783 | $ | 133,800 | 9,983 | 7.5 | |
Adjusted EBITDA margin | 28.3 % | 30.8 % | 28.6 % | 29.5 % | |||||||||
Adjusted EBITDA per diluted share | $ | 0.64 | $ | 0.69 | ( 0.05) | (7.2) | $ | 2.60 | $ | 2.42 | 0.18 | 7.4 | |
Consolidated Statements of Financial Position | |||||
(in thousands of Canadian dollars)
| As at October 31, 2024 | As at October 31, 2023 | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 274,240 | $ | 239,532 | |
Short-term investments | 487 | 827 | |||
Accounts receivable | 92,348 | 93,383 | |||
Prepaid expenses and other assets | 16,100 | 15,515 | |||
Income taxes recoverable | - | 114 | |||
383,175 | 349,371 | ||||
Non-current assets: | |||||
Property and equipment | 4,192 | 3,273 | |||
Right-of-use assets | 11,473 | 12,242 | |||
Intangible assets | 98,594 | 109,659 | |||
Goodwill | 309,831 | 280,241 | |||
Deferred income tax assets | 26,228 | 28,884 | |||
450,318 | 434,299 | ||||
$ | 833,493 | $ | 783,670 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable and accrued liabilities | $ | 70,087 | $ | 67,769 | |
Income tax payable | 5,525 | - | |||
Dividends payable | 14,397 | 12,156 | |||
Provisions | 1,834 | 2,238 | |||
Deferred revenue | 114,080 | 109,019 | |||
Lease obligations | 5,344 | 6,322 | |||
211,267 | 197,504 | ||||
Non-current liabilities: | |||||
Income taxes payable | - | 1,333 | |||
Deferred income tax liabilities | 10,500 | 13,340 | |||
Deferred revenue | 8,094 | 8,170 | |||
Net employee defined benefit obligation | 2,081 | 1,912 | |||
Lease obligations | 5,744 | 6,080 | |||
26,419 | 30,835 | ||||
237,686 | 228,339 | ||||
Shareholders' equity | |||||
Share capital | 118,217 | 107,701 | |||
Contributed surplus | 9,764 | 10,404 | |||
Retained earnings | 446,748 | 426,397 | |||
Accumulated other comprehensive income | 21,078 | 10,829 | |||
595,807 | 555,331 | ||||
$ | 833,493 | $ | 783,670 | ||
Consolidated Statement of Operations and Comprehensive Income | |||||
(in thousands of Canadian dollars, except per share amounts) | |||||
Three months | Twelve months | ||||
Periods ended October 31 | 2024 (unaudited) | 2023 (Unaudited) | 2024 | 2023 | |
Revenue | |||||
Software licenses | $ 15,860 | $ 17,467 | $ 72,906 | $ 80,054 | |
SaaS and maintenance services | 88,196 | 87,196 | 346,579 | 297,635 | |
Professional services | 18,469 | 16,483 | 70,046 | 67,273 | |
Hardware | 3,177 | 1,983 | 12,974 | 9,060 | |
125,702 | 123,129 | 502,505 | 454,022 | ||
Direct costs | |||||
Software licenses | 397 | 622 | 3,501 | 2,910 | |
Services | 43,043 | 39,108 | 165,221 | 141,802 | |
Hardware | 1,527 | 1,483 | 6,864 | 5,287 | |
44,967 | 41,213 | 175,586 | 149,999 | ||
Revenue, net of direct costs | 80,735 | 81,916 | 326,919 | 304,023 | |
Operating expenses | |||||
Selling, general and administrative | 22,642 | 23,702 | 94,303 | 90,889 | |
Research and development | 22,461 | 20,295 | 88,833 | 79,334 | |
Depreciation | 655 | 627 | 2,347 | 2,451 | |
Depreciation of right-of-use assets | 1,375 | 1,491 | 5,981 | 6,764 | |
Special charges | 169 | 117 | 1,609 | 2,477 | |
47,302 | 46,232 | 193,073 | 181,915 | ||
Results from operating activities | 33,433 | 35,684 | 133,846 | 122,108 | |
Amortization of acquired software and customer relationships | (9,322) | (11,205) | (40,505) | (39,605) | |
Foreign exchange gains (losses) | 1,870 | 2,753 | (1,680) | 1,266 | |
Interest expense – lease obligations | (126) | (164) | (556) | (695) | |
Finance income | 2,825 | 2,581 | 10,121 | 6,264 | |
Finance expenses | (8) | (27) | (49) | (163) | |
Other (expense) income | (424) | 17 | 89 | (1,950) | |
Income before income taxes | 28,248 | 29,639 | 101,266 | 87,225 | |
Provision for income taxes | 5,607 | 4,517 | 19,938 | 14,977 | |
Net income for the period | $ 22,641 | $ 25,122 | $ 81,328 | $ 72,248 | |
Items that may be subsequently reclassified to income: | |||||
Cumulative translation adjustment | 2,882 | 12,394 | 10,249 | 19,800 | |
Other comprehensive income | 2,882 | 12,394 | 10,249 | 19,800 | |
Comprehensive income | $ 25,523 | $ 37,516 | $ 91,577 | $ 92,048 | |
Earnings per share | |||||
Basic | $ 0.41 | $ 0.45 | $ 1.47 | $ 1.31 | |
Diluted | $ 0.41 | $ 0.45 | $ 1.47 | $ 1.31 | |
Consolidated Statements of Cash Flows | |||||
(in thousands of Canadian dollars) | Three months | Twelve months | |||
Periods ended October 31 | 2024 (Unaudited) | 2023 (Unaudited) | 2024 | 2023 | |
OPERATING ACTIVITIES | |||||
Net income for the period | $ 22,641 | $ 25,122 | $ 81,328 | $ 72,248 | |
Adjustments for non-cash items | |||||
Depreciation | 655 | 627 | 2,347 | 2,451 | |
Depreciation of right-of-use assets | 1,375 | 1,491 | 5,981 | 6,764 | |
Interest expense – lease obligations | 126 | 164 | 556 | 695 | |
Amortization of acquired software and customer relationships | 9,322 | 11,205 | 40,505 | 39,605 | |
Stock-based compensation expense | 112 | 368 | 1,188 | 1,639 | |
Provision for income taxes | 5,607 | 4,517 | 19,938 | 14,977 | |
Finance expenses and other (income) expense | 432 | 10 | (40) | 2,113 | |
40,270 | 43,504 | 151,803 | 140,492 | ||
Changes in non-cash operating working capital | (7,674) | (11,624) | (7,920) | (11,244) | |
Income taxes paid | (1,013) | (3,562) | (11,812) | (13,950) | |
Net cash provided by operating activities | 31,583 | 28,318 | 132,071 | 115,298 | |
INVESTING ACTIVITIES | |||||
Purchase of property and equipment, net | (516) | (453) | (1,977) | (1,060) | |
Acquisitions, net of cash acquired* | - | (27,189) | (43,448) | (55,167) | |
Recovery (payment) of purchase consideration for prior-year acquisitions | - | 13 | 171 | (999) | |
Sale (purchase) of short-term investments | - | 65 | - | (4) | |
Net cash used in investing activities | ( 516) | (27,564) | (45,254) | (57,230) | |
FINANCING ACTIVITIES | |||||
Issuance of share capital | 2,990 | - | 9,085 | 604 | |
Normal course issuer bid share repurchases | (3,088) | (425) | (5,994) | (425) | |
Repayment of lease obligations | (1,283) | (1,440) | (7,030) | (7,194) | |
Dividends paid | (14,397) | (12,159) | (53,139) | (44,765) | |
Net cash used in financing activities | (15,778) | (14,024) | (57,078) | (51,780) | |
Impact of foreign exchange on cash and cash equivalents | 1,238 | 4,018 | 4,969 |
8,140 | |
Increase (decrease) in cash and cash equivalents | 16,527 | (9,252) | 34,708 | 14,428 | |
Cash and cash equivalents - beginning of period | 257,713 | 248,784 | 239,532 | 225,104 | |
Cash and cash equivalents - end of period | $ 274,240 | $ 239,532 | $ 274,240 | $ 239,532 | |
* Acquisitions are net of cash acquired of nil and $742 for the quarter and year ended October 31, 2024, respectively and nil and $2,088 for the quarter and year ended October 31, 2023, respectively.
Enghouse Systems Limited
Segment Reporting Information
(in thousands of Canadian dollars)
For the period ended October 31, 2024 | Three months | Twelve months | |||||||||||
IMG | AMG | Total | IMG | AMG | Total | ||||||||
Revenue | $ | 74,731 | $ | 50,971 | $ | 125,702 | $ | 308,920 | $ | 193,585 | $ | 502,505 | |
Direct costs | (25,900) | (19,067) | (44,967) | (102,390) | (73,196) | (175,586) | |||||||
Revenue, net of direct costs | 48,831 | 31,904 | 80,735 | 206,530 | 120,389 | 326,919 | |||||||
Operating expenses excluding special charges | (21,235) | (13,071) | (34,306) | (90,871) | (47,238) | (138,109) | |||||||
Depreciation | (416) | (239) | (655) | (1,574) | (773) | (2,347) | |||||||
Depreciation of right-of-use assets | (940) | (435) | (1,375) | (3,870) | (2,111) | (5,981) | |||||||
Segment profit | $ | 26,240 | $ | 18,159 | $ | 44,399 | $ | 110,215 | $ | 70,267 | $ | 180,482 | |
Special charges | (169) | (1,609) | |||||||||||
Corporate and shared service expenses | (10,797) | (45,027) | |||||||||||
Results from operating activities | $ | 33,433 | $ | 133,846 | |||||||||
For the period ended October 31, 2023 | Three months | Twelve months | |||||||||||
IMG | AMG | Total | IMG | AMG | Total | ||||||||
Revenue | $ | 78,578 | $ | 44,551 | $ | 123,129 | $ | 265,311 | $ | 188,711 | $ | 454,022 | |
Direct costs | (24,337) | (16,876) | (41,213) | (78,788) | (71,211) | (149,999) | |||||||
Revenue, net of direct costs | 54,241 | 27,675 | 81,916 | 186,523 | 117,500 | 304,023 | |||||||
Operating expenses excluding special charges | (21,807) | (10,450) | (32,257) | (84,493) | (45,169) | (129,662) | |||||||
Depreciation | (485) | (142) | (627) | (1,969) | (482) | (2,451) | |||||||
Depreciation of right-of-use assets | (904) | (587) | (1,491) | (4,184) | (2,580) | (6,764) | |||||||
Segment profit | $ | 31,045 | $ | 16,496 | $ | 47,541 | $ | 95,877 | $ | 69,269 | $ | 165,146 | |
Special charges | (117) | (2,477) | |||||||||||
Corporate and shared service expenses | (11,740) | (40,561) | |||||||||||
Results from operating activities | $ | 35,684 | $ | 122,108 | |||||||||
About-Enghouse
Enghouse Systems Limited is a Canadian publicly traded company (TSX:ENGH) that provides mission-critical vertically focused enterprise software solutions. Our core technologies are used for contact centers, video communications, virtual healthcare, education, telecommunications, networks, IPTV, public safety and transit. The Company's two-pronged strategy to grow earnings focuses on both organic growth and acquisitions, which, to date, have been funded through cash flows from operating activities as the Company has no outstanding external debt financing. The Company is organized around two business segments, the Interactive Management Group ("IMG") and the Asset Management Group ("AMG") due to their unique customer segments and technology offerings. Further information about Enghouse may be obtained from the Company's website at www.enghouse.com.
Conference Call and Webcast
A conference call to discuss the results will be held on Friday, December 13, 2024 at 8:45 a.m. EST. To participate, please call +1-289-514-5100 or North American Toll-Free +1-800-717-1738. Confirmation code: 59402 A webcast is also available at: https://www.enghouse.com/investors.php.
The Company uses non-IFRS measures to assess its operating performance. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings and are unlikely to be comparable to similar measures used by other companies. Accordingly, they should not be considered in isolation. The Company uses Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA per diluted share as measures of operating performance. Therefore, these collective Adjusted EBITDA measures may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is calculated based on results from operating activities adjusted for depreciation of property and equipment and right-of-use assets and special charges for acquisition related restructuring costs. Management uses Adjusted EBITDA to evaluate operating performance as it excludes amortization of software and intangibles (which is an accounting allocation of the cost of software and intangible assets arising on acquisition), any impact of finance and tax related activities, asset depreciation, foreign exchange gains and losses, other income and restructuring costs primarily related to acquisitions.
SOURCE Enghouse Systems Limited
Nachrichten zu Energy Harbor Corp Registered Shs
Keine Nachrichten im Zeitraum eines Jahres in dieser Kategorie verfügbar.
Eventuell finden Sie Nachrichten, die älter als ein Jahr sind, im Archiv
Analysen zu Energy Harbor Corp Registered Shs
Keine Analysen gefunden.