- Meaningful organic growth forecasted in 2024, with the top-end guidance range for revenue and adjusted EBITDA estimated to grow by 18 and 20 per cent, respectively, year over year.
- Robust free cash flow will support growth and execution of our plan to de-lever the balance sheet.
Consolidated Annual Guidance 2024 (in millions of Canadian dollars except percentages)
Guidance Ranges 2023
Guidance Ranges 2024
over Year Increase
|16% - 18%
|17% - 20%
In 2024, we expect revenue to grow within a range of
Services will continue to be a significant part of our organic growth, with a forecasted increase in transactions and the number of customers. In Registry Operations, we expect transactions in 2024 to be largely flat with revenue growth through a realization of a full year of fee adjustments, including those amended in
The key drivers of expenses in adjusted EBITDA in 2024 are expected to be wages and salaries and cost of goods sold. Furthermore, as a result of the Extension, the Company will have additional operating costs associated with the enhancement of the Saskatchewan Registries and increased interest expense arising from additional borrowings in 2023, which are excluded from adjusted EBITDA.
Our capital expenditures will also increase because of the enhancement of the Saskatchewan Registries but will remain immaterial overall. As a result, the Company expects to see robust free cash flow in 2024, which will support the de-leveraging of our balance sheet to realize a long-term net leverage target of 2.0x – 2.5x.
ISC also announces the upcoming retirement of
"Ken has been an instrumental part of our journey as both a Crown corporation and publicly traded company. His leadership of our
During this transition period, the Company will undertake a process to fill the role, ensuring it aligns with our strategic objectives, while the strong team Ken has built will continue to provide the exceptional performance and service that our customers are accustomed to.
1Adjusted EBITDA is not a recognized measure under International Financial Reporting Standards (“IFRS”) and does not have a standardized meaning prescribed by IFRS and, therefore, it may not be comparable to similar measures reported by other corporations. Please refer to section 8 for “Non-IFRS Financial Measures” and “Financial Measures and Key Performance Indicators” in Management’s Discussion and Analysis for the three and nine months ended
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities laws including, without limitation, those contained in the “Outlook” section hereof and statements related to the industries in which we operate, growth opportunities and our future financial position and results of operations. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to changes in economic, market and business conditions, changes in technology and customers’ demands and expectations, reliance on key customers and licences, dependence on key projects and clients, securing new business and fixed-price contracts, identification of viable growth opportunities, implementation of our growth strategy, competition, termination risks and other risks detailed from time to time in the filings made by the Company including those detailed in ISC’s Annual Information Form for the year ended
The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities laws, ISC assumes no obligation to update or revise such information to reflect new events or circumstances.
Non-IFRS Performance Measures
Included within this news release is reference to certain measures that have not been prepared in accordance with IFRS, such as adjusted EBITDA. This measure is provided as additional information to complement those IFRS measures by providing further understanding of our financial performance from management’s perspective, to provide investors with supplemental measures of our operating performance and, thus, highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures.
Management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet future capital expenditure and working capital requirements.
Accordingly, these non-IFRS measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. Such measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies.
|Non-IFRS Performance Measure
|Why we use it
|How we calculate it
|Most comparable IFRS financial measure
share-based compensation expense, acquisition, integration and other costs, gain/loss on disposal of assets if significant
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Source: Information Services Corporation