CALGARY, November 7, 2017 — Solium Capital Inc. (TSX: SUM) (“Solium” or the “Company”) today announced its financial results for the three and nine month periods ended September 30, 2017.

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

  • Revenue increased by 4% to $20.8 million in the third quarter of 2017 and by 9% to $63.6 million for the nine month period ended September 30, 2017;
  • Adjusted EBITDA1 decreased by 60% to $1.5 million in the third quarter of 2017 and by 17% to $9.0 million for the nine month period ended September 30, 2017;
  • Earnings from operations decreased by 41% to $1.2 million in the third quarter of 2017 and increased by 23% to $6.7 million for the nine month period ended September 30, 2017;
  • Net earnings decreased from $1.9 million to a net loss of $0.1 million in the third quarter of 2017 and increased by 29% to $4.1 million for the nine month period ended September 30, 2017;
  • For the nine month period ended September 30, 2017, Solium incurred capital expenditures of $5.2 million, primarily relating to the build out of the Company’s new Calgary headquarters, as well as expansion of its data centre.

Acquisition and bought deal financing

  • Subsequent to the quarter end, in October 2017, the Company announced the acquisition of Capshare Inc., a U.S. company that provides a cloud-based platform for cap table management, electronic share tracking, modeling and waterfall analysis and compliance for private companies, for consideration of $13.5 million;
  • On November 1, 2017, the Company closed a bought deal financing for gross proceeds of CAD $46 million. These funds provide Solium with the flexibility to move quickly on acquisition opportunities as they arise.

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

  • License revenue License and subscription fees increased by $2.0 million or 16% during the third quarter of 2017 and $3.5 million or 9% for the nine months ended September 30, 2017, as compared to the same periods in 2016. Based on local currencies, the growth was 15% during the third quarter and 9% for the nine months ended September 30, 2017. Growth in license revenue is largely driven by the Morgan Stanley and UBS license agreements in the U.S. entered into in November 2016 and May 2017, respectively.

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