MARKHAM, ONTARIO — (Marketwired) — 06/10/15 — Enghouse Systems Limited (TSX: ESL) today announced its unaudited second quarter financial results for the period ended April 30, 2015.
Second quarter revenue was $68.7 million, an increase of 25% over revenue of $55.0 million in the second quarter last year. On a year to date basis, revenue was $131.7 million compared to $102.4 million last year, an increase of 29%. The revenue increase primarily reflects incremental revenue contributions from acquisitions. Hosted and maintenance services revenue was $33.7 million in the quarter, an increase of 19% over the same period last year.
Adjusted EBITDA for the quarter was $16.2 million ($0.60 per diluted share) compared to $13.9 million ($0.52 per diluted share) in last year–s second quarter. Adjusted EBITDA for the year to date was $32.4 million ($1.20 per diluted share) compared to $26.0 million ($0.97 per diluted share) last year, an increase of 25%.
Net income for the quarter was $7.6 million ($0.28 per diluted share) compared to the prior year–s second quarter net income of $6.6 million ($0.24 per diluted share). Results from operating activities for the quarter were $15.5 million compared to $12.5 million in the prior year–s second quarter, an increase of 24% over the prior year.
Operating expenses before special charges related to restructuring of acquired operations were $31.0 million compared to $25.5 million in the prior year–s second quarter and primarily includes incremental operating costs related to acquisitions. Non-cash amortization charges in the quarter were $5.7 million compared to $4.2 million in the prior year–s second quarter and include amortization charges for acquired software and customer relationships from acquired operations.
Enghouse generated cash flows from operations of $12.2 million in the quarter and closed the quarter with $88.5 million in cash, cash equivalents and short-term investments, compared to $84.9 million at October 31, 2014. The cash balance was achieved after net cash paid of $19.8 million for the acquisition of CDRator A/S, completed March 3, 2015 and dividends of $5.2 million paid year to date. The Company continues to have no debt.
The Board of Directors has approved an eligible quarterly dividend of $0.12 per common share, payable on August 28, 2015 to shareholders of record at the close of business on August 14, 2015.
Subsequent to quarter end, Enghouse completed the acquisition of Reitek S.p.A, a leading provider of omni-channel contact center solutions for enterprises, expanding the Company–s footprint in Italy. Enghouse remains committed to diversifying its revenue stream and continues to seek accretive acquisitions to grow its market share.
A conference call to discuss the results will be held on Thursday, June 11, 2015 at 8:45 a.m. EST. To participate, please call 416-640-5946 or North American Toll-Free 1-866-233-4585. No PIN required.
About Enghouse
Enghouse Systems Limited is a leading global provider of enterprise software solutions serving a variety of distinct vertical markets. Its strategy is to build a larger, profitable and more diverse software company through strategic acquisitions targeting the Contact Center, Networks (OSS/BSS) and Transportation/Public Safety sectors. Enghouse shares are listed on the Toronto Stock Exchange under the symbol “ESL”. Further information about Enghouse may be obtained from the Company–s website at .
Non-GAAP Measures
The Company uses non-GAAP measures to assess its operating performance. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than GAAP 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 as a measure of operating performance. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is calculated as income before income taxes adjusted for depreciation of property, plant and equipment, amortization of acquired software and customer relationships, finance income, finance expenses, other income, litigation settlements 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, other income and restructuring costs primarily related to acquisitions.
Adjusted EBITDA
The table below reconciles Adjusted EBITDA to income before income taxes:
(In thousands of Canadian dollars)
(Unaudited)
Contacts:
Enghouse Systems Limited
Sam Anidjar
Vice President, Corporate Development
(905) 946-3200
You must be logged in to post a comment Login