CALGARY, March 13, 2019 — Solium Capital Inc. (TSX: SUM) (“Solium” or the “Company”) today announced its financial results for the fourth quarter and year ended December 31, 2018.

 

Financial and operating highlights for the fourth quarter and year ended December 31, 2018, compared to the same periods in 2017:

  • Revenue increased by 18% to $27.1 million in the fourth quarter of 2018 and by 26% to $108.3 million for the year ended December 31, 2018;
  • Adjusted EBITDA1 increased by 136% to $4.2 million in the fourth quarter of 2018 and by 22% to $15.3 million for the year ended December 31, 2018;
  • Earnings from operations was $1.4 million in the fourth quarter of 2018 and $4.1 million for the year ended December 31, 2018;
  • Net earnings increased to $1.8 million in the fourth quarter of 2018 and increased by 46% to $4.9 million for the year ended December 31, 2018;
  • Cash on hand as at December 31, 2018 totaled $97.0 million.

(1) Adjusted EBITDA is a non-IFRS financial measure. See definition and reconciliation to net earnings (loss) in Note 1 on page 4.


Key factors affecting the results for the year ended December 31, 2018:

  • License revenue License and subscription fees increased by $16.5 million or 29% for the year ended December 31, 2018 as compared to 2017. Based on local currencies, the growth was 27% as compared to 2017. Growth in license revenue is largely driven by the U.S. white label agreements, organic growth from new sales in all regions, and revenue from the acquired Capshare and Advanced-HR businesses.
  • Transaction activity In addition to the recurring license revenue that Solium collects for the use of its technology platforms, the Company also collects re-occurring transaction based revenue. Transaction based revenue increased by $3.4 million or 13% compared to 2017. The per-participant trading activity was 2% higher in 2018 compared to 2017 and 6% higher than the historical five-year average.
  • Operating costs – Operating expenses (excluding 2017 sales tax adjustment) increased by $23.0 million or 28% compared to 2017. The increases are primarily driven by planned hiring to support the U.S. white label agreements; costs from the new businesses of Capshare, Solium Analytics and Advanced-HR; and the resulting incremental systems and infrastructure costs. The Company also incurred costs in the first half of 2018 associated with an investment opportunity that did not materialize, further contributing to the increase over 2017. The Company had 781 full-time equivalent employees (FTEs) at the end of 2018 compared to 677 FTEs at the end of 2017.

 

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