Mr. Shawn Peters reports

ISC ANNOUNCES ANNUAL GUIDANCE AND MANAGEMENT UPDATE FOR 2024

Information Services Corp. has released its annual guidance and outlook for 2024.

Outlook

In 2024, the company expects revenue to grow within a range of $240-million and $250-million, and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to grow within a range of $83-million and $91-million. The expectations for these metrics in 2024 represent year-over-year increases of up to 18 per cent for revenue and up to 20 per cent for adjusted EBITDA when compared with the same guidance ranges for 2023. Information Services' expected performance year-over-year marks the beginning of the next phase of its growth plan. The company intends to leverage the investments and achievements of 2023, while intensifying its focus on organic growth and continuing to execute on accretive M&A (merger and acquisition) opportunities.

Services will continue to be a significant part of the company's organic growth, with a forecasted increase in transactions and the number of customers. In registry operations, the company expects transactions in 2024 to be largely flat with revenue growth through a realization of a full year of fee adjustments, including those amended in July, 2023, because of the extension of the master services agreement in Saskatchewan, and regular annual CPI fee adjustments. The company's technology solutions segment is also forecasted to see double-digit growth as it delivers on existing and new solutions delivery contracts in 2024.

The key drivers of expenses in adjusted EBITDA in 2024 are expected to be wages and salaries, and cost of goods sold. Furthermore, as a result of the extension, the company will have additional operating costs associated with the enhancement of the Saskatchewan registries and increased interest expense arising from additional borrowings in 2023, which are excluded from adjusted EBITDA.

Information Services' capital expenditures will also increase because of the enhancement of the Saskatchewan registries, but will remain immaterial over all. As a result, the company expects to see robust free cash flow in 2024, which will support the deleveraging of its balance sheet to realize a long-term net leverage target of two times to 2.5 times.

Management update

Information Services also announces the future retirement of Ken Budzak, executive vice-president, registry operations, effective May, 2024. Mr. Budzak has been with the company nearly since its inception, joining the organization in 2001. His dedication, strategic insights and unwavering commitment have significantly contributed to the company's growth and success. Appointed as executive vice-president, registry operations in 2017, he has played a pivotal role in supporting the company's trajectory and fostering its development.

"Ken has been an instrumental part of our journey as both a Crown corporation and publicly traded company. His leadership of our Saskatchewan registries business, and more recently our Reamined Systems Inc. acquisition, has been invaluable and has helped position the company to be able to execute on its growth strategy," said Shawn Peters, president and chief executive officer. "We wish him the very best in his well-deserved retirement."

During this transition period, the company will undertake a process to fill the role, ensuring it aligns with its strategic objectives, while the strong team Mr. Budzak has built will continue to provide the exceptional performance and service that the company's customers are accustomed to.

About Information Services Corp.

Headquartered in Canada, Information Services is a leading provider of registry and information management services for public data and records. Throughout its history, the company has delivered value to its clients by providing solutions to manage, secure and administer information through its registry operations, services and technology solutions segments. Information Services is focused on sustaining its core business while pursuing new growth opportunities. The Class A shares of Information Services trade on the Toronto Stock Exchange under the symbol ISV.

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