CALGARY, March 21, 2018 — Solium Capital Inc. (TSX: SUM) (“Solium” or the “Company”) today announced its financial results for the fourth quarter and year ended December 31, 2017.

Financial and operating highlights for the fourth quarter and year ended December 31, 2017, compared to the same periods in 2016:

  • Revenue increased by 21% to $22.9 million for the fourth quarter of 2017 and by 12% to $86.5 million for the year ended December 31, 2017;
  • Adjusted EBITDA1 decreased by 48% to $1.6 million in the fourth quarter of 2017 and by 21% to $12.2 million in the year ended December 31, 2017;
  • Earnings from operations decreased by $0.7 million to a loss of $0.2 million for the fourth quarter of 2017 and by 7% to $6.5 million for the year ended December 31, 2017;
  • Net earnings decreased from $0.8 million to a net loss of $0.5 million in the fourth quarter of 2017 and decreased by 9% to $3.6 million in the year ended December 31, 2017; and
  • For the year ended December 31, 2017, Solium incurred capital expenditures of $6.7 million, primarily relating to the build out of the Company’s new Calgary headquarters, as well as expansion of its data centre.

Acquisitions and bought deal financing:

  • In October 2017, the Company acquired Capshare Inc., a U.S. company that provides a cloud-based platform for capitalization table management, electronic share tracking, modeling and waterfall analysis and compliance for private companies, for total purchase consideration of $16.2 million, including potential earn-outs.
  • On November 1, 2017, the Company closed a bought deal financing for gross proceeds of $35.8 million (CAD $46.0 million). These funds provide Solium with the flexibility to move quickly on acquisition opportunities should they arise.
  • Subsequent to the year end, in February 2018, the Company announced the acquisition of Advanced-HR, a U.S. company that provides compensation data and compensation planning software for private and venture backed companies. Advanced-HR provides compensation data through its products OptionDriver and OptionImpact to over 2,500 private companies and 120 venture capital firms.

Key factors affecting financial results for the year ended December 31, 2017:

  • License revenue – License and subscription fees increased by $6.1 million or 12% for the year ended December 31, 2017 as compared to 2016. Based on local currencies, the growth was 11% as compared to 2016. Growth in license revenue is largely driven by the Morgan Stanley and UBS license agreements in the U.S., organic growth from new sales, revenue from the acquired Capshare business and migration of customers from NASDAQ Private Market, LLC to Solium.

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