Information Services (ISC) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of CAD 67.8 million, up 27% year-over-year, with adjusted EBITDA up 53% to CAD 27.2 million and margin improving to 40% from 33.4% year-over-year, driven by strong Registry Operations and Services volumes.

• Net income rose to CAD 10.3 million (CAD 0.57 per basic share), up from CAD 8.2 million (CAD 0.47 per basic share) in Q2 2023.

• Registry Operations, especially Saskatchewan Registries, drove significant growth, aided by fee adjustments and high-value property registrations.

• Services segment saw revenue and adjusted EBITDA up 18% and 29% year-over-year, with Regulatory Solutions and Recovery Solutions both contributing.

• 2024 guidance reaffirmed; company targets doubling revenue and adjusted EBITDA by 2028.

Financial highlights

• Q2 2024 revenue reached CAD 67.8 million, a 27% increase year-over-year.

• Net income was CAD 10.3 million (CAD 0.57 per basic share), up from CAD 8.2 million (CAD 0.47 per basic share) in Q2 2023.

• Adjusted EBITDA was CAD 27.2 million, up from CAD 17.8 million in Q2 2023.

• Adjusted net income was CAD 14.1 million (CAD 0.78 per basic share), up from CAD 9.3 million (CAD 0.52 per basic share) in Q2 2023.

• Net cash flow from operating activities was CAD 24.1 million, up from CAD 14.3 million year-over-year.

Outlook and guidance

• Maintained 2024 annual guidance: revenue between CAD 240–250 million and adjusted EBITDA between CAD 83–91 million.

• Expect continued strong activity in Saskatchewan real estate due to interest rate cuts, population growth, and market confidence.

• Services segment forecasted to grow with increased transactions and customer base, especially in Regulatory Solutions.

• Recovery Solutions expected to see higher assignment levels due to consumer financial pressures.

• Expense drivers include wages, cost of goods sold, and higher operating costs from the Saskatchewan Registries extension.