CALGARY, August 9, 2017 — Solium Capital Inc. (TSX: SUM) (“Solium” or the “Company”) today announced its financial results for the three and six month periods ended June 30, 2017.

Financial and operating highlights for the three and six month period ended June 30, 2017, compared to the same periods in 2016:

  • In the second quarter, the Company entered into a license agreement with UBS Financial Services Inc. (“UBS”) whereby UBS customers will transition to a UBS branded version of the plan administration modules of Shareworks;
  • Revenue increased by 9% to $21.6 million in the second quarter of 2017 and by 12% to $42.8 million for the six month period ended June 30, 2017;
  • Adjusted EBITDA1 decreased by 15% to $3.1 million in the second quarter of 2017 and increased by 7% to $7.5 million for the six month period ended June 30, 2017;
  • Earnings from operations increased by 86% to $2.1 million in the second quarter of 2017 and by 61% to $5.5 million for the six month period ended June 30, 2017;
  • Net earnings increased from $nil to $1.7 million in the second quarter of 2017 and by 221% to $4.2 million for the six month period ended June 30, 2017;
  • For the six month period ended June 30, 2017, Solium incurred capital expenditures of $2.2 million, primarily relating to the build out of the Company’s new Calgary headquarters, as well as expansion of its data centre.

 

Key factors affecting financial results in the three and six month periods ended June 30, 2017:

  • License revenue License and subscription fees increased by $1.4 million or 11% during the second quarter of 2017 and $1.5 million or 6% for the six months ended June 30, 2017, as compared to the same periods in 2016. Based on local currencies, the growth was 12% during the second quarter and 7% for the six months ended June 30, 2017. Growth in license revenue is primarily driven by the Morgan Stanley and UBS license agreements in the U.S. entered into in November 2016 and May 2017, respectively.
  • 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 remained the same during the second quarter and increased by $2.3 million or 20% for the six months ended June 30, 2017, as compared to the same periods in 2016. The per participant trading activity was 10% lower in the second quarter of 2017 compared to the same period in 2016 and 6% higher than the historical five-year Q2 average.
  • Operating costs – Operating expenses (excluding a change in estimate to Scientific Research and Experimental Development (SRED) tax credit claims in 2016) increased by $2.2 million or 13% during the second quarter of 2017 and $3.9 million or 11% for the six months ended June 30, 2017, when compared to the same periods in 2016. The increase is primarily as a result of planned hiring to support the Morgan Stanley and UBS partnerships. The Company had 594 full-time equivalent employees (FTEs) at the end of the second quarter of 2017 compared to 474 FTEs at the end of the second quarter of 2016.

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