@BigDataExpo Authors: Pat Romanski, Hollis Tibbetts, William Schmarzo, Elizabeth White, Kevin Jackson

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: 


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.

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

December 31, 2012 and 2011

            2012         2011
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

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
  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

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

Years ended December 31, 2012 and 2011

                      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
                      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

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.

@BigDataExpo Stories
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
SYS-CON Events announced today that Cemware will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Use MATLAB functions by just visiting website mathfreeon.com. MATLAB compatible, freely usable, online platform services. As of October 2016, 80,000 users from 180 countries are enjoying our platform service.
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...