CALGARY, May 4, 2017 — Solium Capital Inc. (TSX: SUM) (“Solium” or the “Company”) today announced its financial results for the first quarter ended March 31, 2017.

Financial and operating highlights for the first quarter ended March 31, 2017, compared to the same period in 2016:

  • Revenue increased by 15% to $21.3 million in the first quarter of 2017;
  • Adjusted EBITDA1 increased by 33% to $4.3 million in the first quarter of 2017;
  • Earnings from operations increased by 49% to $3.4 million in the first quarter of 2017;
  • Net earnings increased by 87% to $2.5 million in the first quarter of 2017; and
  • Cash on hand as at March 31, 2017 totaled $64.8 million.

Key factors affecting financial results in the first quarter ended March 31, 2017:

  • License revenue – License and subscription fees increased by $0.1 million or 1% during the first quarter of 2017 compared to the same period in 2016. Based on local currencies, the growth was 1% between the comparable quarters. Growth in license revenue from new sales was offset by a decrease in participant counts in some of the Company’s energy sector clients due to the downturn in that industry.
  • Transaction activity – In addition to the recurring license revenue that Solium collects for the use of its Shareworks platform, the Company also collects re-occurring transaction based revenue. Transaction based revenue increased by $2.3 million or 44% during the first quarter of 2017 compared to the same period in 2016. The per participant trading activity was 39% higher in the first quarter of 2017 compared to the same period in 2016 and 5% higher than the historical five-year Q1 average.
  • Global expansion – Operating expenses increased by $1.6 million or 10% during the first quarter of 2017 when compared to the same period in 2016, primarily as a result of planned hiring to support the Morgan Stanley partnership. The Company had 553 full-time equivalent employees (FTEs) at the end of the first quarter of 2017 compared to 467 FTEs at the end of the first quarter of 2016.
  • Foreign exchange – The Canadian dollar (CAD) strengthened against the U.S. dollar (USD) during the first quarter of 2017 compared to the same period in 2016. This had a positive impact on the Company’s overall financial results due to the translation of CAD financial results into USD for consolidated financial reporting purposes for the first quarter of 2017.

 
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