Information Services (ISC) Sidoti September Small-Cap Virtual Conference summary

Business overview and operations

• Operates through registry operations, services, and technology solutions, serving governments, legal, financial, and corporate clients.

• Registry operations are anchored by a long-term contract with Saskatchewan, extended to 2053, expected to generate over CAD 1.3 billion in cash flow.

• Services segment has grown from CAD 12 million to over CAD 100 million in revenue since 2015, focusing on due diligence, collateral management, and asset recovery.

• Technology solutions segment leverages proprietary RegSys technology for global registry clients, supporting international expansion.

• Revenue guidance for 2024 is CAD 240–250 million, with adjusted EBITDA of CAD 83–91 million.

Growth strategy and financial targets

• Aims to double annual revenue and adjusted EBITDA by 2028, based on 2023 actuals, through organic growth and M&A.

• Strong history of M&A, deploying over CAD 200 million in 8 transactions since 2015, with a disciplined capital allocation approach.

• Actively deleveraging, targeting 2–2.5x EBITDA leverage, while maintaining a stable dividend program.

• Developing next-generation RegSys technology for Saskatchewan, with plans to leverage it for global opportunities.

• Prefers M&A opportunities over CAD 50 million, focusing on accretive, EBITDA-positive businesses that add value and cross-sell potential.

Market positioning and industry trends

• Positioned to benefit from trends in outsourcing, increased regulatory requirements, and the emergence of new registry types (e.g., drone registries).

• Competes with Teranet, infrastructure funds, and global tech firms like Accenture and Deloitte, with customer stickiness driven by long-term contracts and service quality.

• Registry operations provide stable, predictable cash flows, relatively insulated from economic cycles.

• International expansion is a focus, with clients in Ireland, Cyprus, Guernsey, and new ventures like the Regulis rolling stock registry.

• Board includes experienced leaders, with the Government of Saskatchewan holding just under 30% and appointing three directors.