Welcome!

@CloudExpo Authors: Elizabeth White, Anders Wallgren, Pat Romanski, AppDynamics Blog, Automic Blog

News Feed Item

Softchoice Announces Record Fourth Quarter Earnings, Increases Quarterly Dividend

Fourth Quarter Highlights

  • Reported revenue grows 15 percent
  • Gross profit increases 14 percent
  • EBITDA up 30 percent
  • Net income increases 29 percent.  Adjusted net earnings per diluted share grows 50 percent

2012 Full Year Highlights

  • Net income increases 25 percent.  Adjusted net earnings per diluted share increases 14 percent to $1.37 per diluted share
  • Gross profit up 10 percent

TORONTO, Feb. 19, 2013 /CNW/ - Softchoice Corporation (TSX: SO), a North American provider of technology solutions and services, today reported earnings for the fourth quarter and fiscal year 2012.

For the three-month period ended December 31, 2012, Softchoice reported net income of US$8.4 million compared to US$6.5 million for the same period in the prior year. Eliminating the impact of certain non-cash foreign exchange gains and losses, and an adjustment resulting from the retroactive change to Canadian tax legislation, adjusted net income grew 50 percent in the period, increasing to US$9.5 million, or US$0.48 per diluted share, compared to adjusted net income of US$6.3 million, or US$0.32 per diluted share recorded in the fourth quarter of 2011.

Fourth quarter revenue grew 15 percent to US$308.7 million. The Company's Services business grew 65 percent compared to the same quarter in the prior year, bolstered by the additive impact of the acquisition of Unis Lumin. Sales of Enterprise Software, Servers, Storage and Networking solutions also made steady gains in the period, increasing 33 percent for the quarter while sales of Microsoft grew by 10 percent. Fourth quarter earnings before interest, taxes, depreciation and amortization ("EBITDA") margin increased 63 basis points to 5.4 percent.

"Our focus on delivering high-value solutions and services to our clients and expanding our reach within the small and medium-size business segment resulted in strong net income growth in the quarter," said David MacDonald, President and CEO of Softchoice.  "Moreover, the solid growth in EBITDA reflects the leverage our operating model is delivering to our business as we benefit from the integration of UNIS LUMIN, major upgrades to our internal CRM system and strong execution on the part of our field sales organization."

On a full year basis, Softchoice reported net income of US$27.7 million or US$1.37 per diluted share. On an adjusted basis, earnings amounted to US$27.5 million or US$1.37 per diluted share, representing an earnings increase of 15 percent compared to the US$23.9 million or US$1.20 per diluted share reported for fiscal year 2011.

"The fourth quarter was a strong close to a transformational year for Softchoice," added Mr. MacDonald.  "In 2012 we largely completed the integration of UNIS LUMIN, built new recurring revenue streams with the launch of Softchoice Cloud and Keystone, our first North American-wide managed services offering, and strengthened our Services organization with the appointment of new regional leadership.  With solid momentum and alignment around our services strategy, we are well-positioned to continue outgrowing the market."

In August 2012, the Company reinstated its quarterly dividend in the amount of CAD$0.07 per common share. The quarter will see a dividend increase to CAD$0.09 per common share.  This dividend will be payable on March 15, 2013 to shareholders of record as of March 1, 2013.

At the end of the quarter, Softchoice had cash on hand of US$67.9 million compared to $33.0 million ending the fourth quarter of 2011 and total debt of nil. Cash flow generated from operations for the year was $44.1 million, which increased by $5.5 million or 14 percent.

Quarterly Operating Highlights

  • In the fourth quarter, total revenue, including imputed revenue, increased 9 percent to $589.4 million.   
  • Microsoft Canada recognized Softchoice with awards for marketing innovation and collaboration at the recent 2012 IMPACT awards ceremony in Toronto.
  • During the quarter, Softchoice was honored with the Cisco Customer Satisfaction Excellence award for both the U.S. and Canada, the highest distinction a partner can achieve for customer satisfaction within the Cisco Channel Partner Community.
  • Softchoice has once again been named to the CRN Tech Elite 250 list, a definitive list of solution providers with deep technical expertise and premier certifications in the data center market.

The Management's Discussion & Analysis and Audited Consolidated Financial Statements can be found on the company's website at http://www.softchoice.com/about/ir/financials.aspx

Softchoice Fourth Quarter Earnings Call Details

Softchoice Corporation will host its fourth quarter earnings call on February 20, 2013 at 8:00 am ET.

The call will be moderated by David MacDonald, Softchoice's President and CEO and Chief Financial Officer, David Long. The conference call will begin with a brief web presentation followed by a question-and-answer session.

Participant Information:

Local Dial in number: 416 800 1066

Toll Free Dial in number: 1 866 212 4491

Webcast URL: 

http://www.snwebcastcenter.com/custom_events/softchoice-20130220/site/

To ensure participation, please dial in at least 10 minutes prior to the start of the conference at 8:00 am ET.

For those unable to attend the call, a link will be made available on the Softchoice website to an archived web and audio version on February 21, 2013.

About Softchoice

As a leading North American provider of technology solutions and services, Softchoice combines the efficiency and reliability of a national IT supplier with the personal touch and technical expertise of a local solutions provider. Softchoice's holistic approach to technology includes solution design, implementation and asset management services, as well as access to one of the most comprehensive and cost-effective technology distribution networks in North America. With over 1,200 employees, Softchoice manages the technology needs of thousands of corporate and public sector organizations across the United States and Canada.

Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the trading symbol "SO." The common shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to expectations, intentions and plans contained in this press release that are not historical fact. When used in this press release, the words "anticipate", "expect", "will" and similar expressions generally identify forward-looking statements. These statements reflect our current expectations and are subject to a number of risks and uncertainties including, but not limited to, change in technology and general market conditions, many of which are set out or incorporated by reference in the Company's latest Annual Information Form. Due to the many risks and uncertainties, Softchoice cannot assure that the forward-looking statements contained in this press release will be realized.

SOFTCHOICE CORPORATION
Consolidated Statements of Financial Position
(In thousands of U.S. dollars)

December 31, 2012 and 2011

                       
            2012         2011
Assets                      
Current assets:                      
  Cash       $   67,875     $   32,993
  Trade and other receivables           280,241         306,434
  Inventories             3,836         8,872
  Deferred costs            2,644         2,591
  Prepaid expenses and other assets            7,635         6,158
  Total current assets            362,231         357,048
Non-current assets:                      
  Long-term accounts receivable             207         643
  Long-term prepaid expenses            1,690         1,821
  Property and equipment           5,478         6,309
  Goodwill             16,696         16,441
  Intangible assets           40,571         46,203
  Deferred tax assets           18,708         19,224
  Total non-current assets            83,350         90,641
Total assets        $   445,581     $   447,689
Liabilities and Shareholders' Equity                      
Current liabilities:                      
  Trade and other payables       $   263,813     $   290,267
  Deferred lease inducements            276         243
  Deferred revenue            11,321         10,627
  Income taxes payable            779         2,279
  Total current liabilities            276,189         303,416
Non-current liabilities:                      
  Deferred lease inducements            498         648
  Deferred revenue            3,991         3,307
  Total non-current liabilities            4,489         3,955
Total liabilities            280,678         307,371
Shareholders' equity:                      
  Capital stock           26,728         26,548
  Contributed surplus            2,907          3,274
  Retained earnings            136,567         111,689
  Accumulated other comprehensive loss            (1,299)         (1,193)
  Total shareholders' equity            164,903         140,318
Total liabilities and shareholders' equity        $   445,581     $   447,689
                       

SOFTCHOICE CORPORATION
Consolidated Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share information)

Years ended December 31, 2012 and 2011

                     
            2012        2011
Net sales        $   1,065,620     $ 999,400
Cost of sales            858,304        810,518
Gross profit            207,316        188,882
Expenses:                    
  Selling and marketing             119,543        102,434
  Administrative            47,225        45,680
            166,768         148,114
Income from operations            40,548        40,768
Finance costs             528        6,169
Finance income             (1,289)        (82)
Other income           (232)        (119)
Other expense             96        673
            (897)        6,641
Income before income taxes            41,445        34,127
Income tax expense           13,789        12,007
Net income            27,656        22,120
Other comprehensive loss:                    
  Foreign currency translation adjustment            (106)        (51)
Total comprehensive income          $   27,550     $  22,069
Net earnings per common share:                    
  Basic         $   1.40     $ 1.12
  Diluted           1.37       1.11
                       

SOFTCHOICE CORPORATION
Consolidated Statements of Changes in Equity
(In thousands of U.S. dollars)

Years ended December 31, 2012 and 2011

                                   
                      Accumulated            
                      other             Total
    Number     Capital     Contributed     comprehensive      Retained      shareholders'
2012    of shares      stock       surplus      loss      earnings      equity
Balance, January 1, 2012    19,837,211   $ 26,548   $ 3,274   $ (1,193)   $ 111,689   $ 140,318
Total comprehensive income (loss):                                  
  Net income    -      -      -      -      27,656      27,656
  Other comprehensive loss:                                  
    Foreign currency translation adjustment    -      -      -      (106)      -      (106)
  Total comprehensive income (loss)    -      -      -      (106)      27,656      27,550
Transactions with shareholders recorded directly in equity:                                  
  Share options exercised    40,151      516      (194)      -      -      322
  Share-based compensation    -      -      2,091      -      -      2,091
  Repurchase of common shares     (219,600)       (336)      (2,264)      -      -      (2,600)
  Dividends declared      -      -      -      -     (2,778)      (2,778)
    (179,449)      180      (367)      -      (2,778)      (2,965)
Balance, December 31, 2012    19,657,762   $ 26,728   $ 2,907   $ (1,299)   $ 136,567   $ 164,903
                                   
                                   
                          Accumulated        
                      other             Total
    Number      Capital      Contributed     comprehensive      Retained     shareholders'
2011    of shares      stock      surplus     loss      earnings      equity
Balance, January 1, 2011    19,780,039   $ 26,016   $ 2,054   $ (1,142)   $ 89,569   $ 116,497
Total comprehensive income (loss):                                  
  Net income    -      -      -      -      22,120      22,120
  Other comprehensive loss:                                  
    Foreign currency translation adjustment    -      -      -      (51)      -      (51)
  Total comprehensive income (loss)    -      -      -      (51)      22,120      22,069
Transactions with shareholders recorded directly in equity:                                  
  Share options exercised    8,599      108      (41)      -      -      67
  Share-based compensation    -      -      1,722      -      -      1,722
  Repurchase of common shares     (4,000)       (37)      -      -      -      (37)
  Deferred share units exercised    52,573      461      (461)      -      -      -
    57,172      532      1,220      -      -      1,752
Balance, December 31, 2011    19,837,211   $ 26,548   $ 3,274   $ (1,193)   $ 111,689   $ 140,318
                                   

SOFTCHOICE CORPORATION
Consolidated Statements of Cash Flows
(In thousands of U.S. dollars)

Years ended December 31, 2012 and 2011

                       
            2012          2011
Cash provided by (used in):                      
Operating activities:                      
  Net income        $   27,656     $   22,120
  Adjustments for:                      
    Amortization of intangible assets            8,663          5,989
    Depreciation of property and equipment            3,124          3,018
    Share-based compensation            2,091          1,722
    Income tax expense            13,789          12,007
    Unrealized foreign currency (gain) loss            (1,086)          648
    Loss on disposal of intangible assets and property and equipment            167          16
    Interest expense on financial liabilities            52          1,840
    Amortization of deferred financing costs            -          1,844
                54,456           49,204
  Change in non-cash operating working capital            2,951          4,477
            57,407          53,681
  Interest paid            (53)          (1,832)
  Income taxes paid            (13,252)          (13,259)
  Cash provided by operating activities            44,102          38,590
Financing activities:                      
  Repayment of loans and borrowings            -          (12,784)
  Proceeds from issuance of common shares            322          67
  Dividends paid to shareholders            (2,778)          -
  Repurchase of common shares            (2,600)          (37)
  Cash used in financing activities            (5,056)          (12,754)
Investing activities:                      
  Purchase of property and equipment            (2,346)          (2,280)
  Purchase of intangible assets            (2,563)          (2,620)
  Restricted cash            -          500
  Acquisition of UNIS LUMIN Inc.           -          (23,941)
  Cash used in investing activities            (4,909)          (28,341)
Increase (decrease) in cash            34,137          (2,505)
Cash, beginning of year            32,993          35,752
Effect of exchange rate fluctuations on cash held            745          (254)
Cash, end of year        $   67,875     $   32,993

SOURCE Softchoice Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, will give users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion w...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
SYS-CON Events announced today that FalconStor Software® Inc., a 15-year innovator of software-defined storage solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. FalconStor Software®, Inc. (NASDAQ: FALC) is a leading software-defined storage company offering a converged, hardware-agnostic, software-defined storage and data services platform. Its flagship solution FreeStor®, utilizes a horizonta...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
SYS-CON Events announced today that (ISC)²® (“ISC-squared”) will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Two leading non-profits focused on cloud and information security, (ISC)² and Cloud Security Alliance (CSA), developed the Certified Cloud Security Professional (CCSP) certification to address the increased demand for cloud security expertise due to rapid growth in cloud. Recently named “The Next...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, will discuss how the ability to access and analyze the massive volume of streaming data from mil...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
WebSocket is effectively a persistent and fat pipe that is compatible with a standard web infrastructure; a "TCP for the Web." If you think of WebSocket in this light, there are other more hugely interesting applications of WebSocket than just simply sending data to a browser. In his session at 18th Cloud Expo, Frank Greco, Director of Technology for Kaazing Corporation, will compare other modern web connectivity methods such as HTTP/2, HTTP Streaming, Server-Sent Events and new W3C event APIs ...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...