ISC's impressive 2023 performance sets stage for ambitious growth targets, CEO says

Information Services Corporation (TSX:ISV) CEO Shawn Peters discussed the company's impressive performance in 2023 and its ambitious growth plans in a recent interview with Proactive.

Peters highlighted the substantial revenue growth and strong cash flow generated by ISC, attributing their success to stable business segments and strategic investments in technology and personnel. The extension of their agreement with the government of Saskatchewan until 2053 was a significant milestone, providing a solid foundation for long-term stability and growth.

With a goal to double the company's size by 2028, ISC remains focused on organic growth initiatives and strategic mergers and acquisitions, leveraging their strong track record and market position. Peters expressed confidence in the company's ability to capitalize on growth opportunities and deliver value to stakeholders amidst an exciting period of expansion.

Proactive: The company has released its financial numbers for the fourth quarter and year-end of 2023, which marked a substantial year with significant revenue growth. Let's delve into that in a moment. Shawn, overall, are you satisfied with the current state of your company?

SP: We really are. In 2023, we issued our guidance early in the year and then updated it mid-year when we announced our extension, but we had a pretty good forecast for 2023 weeks out (that) the Saskatchewan part of the business would be stable and relatively strong. That proved out over 2023. The provinces held up a little better from both a volume and a pricing perspective, which was in line with our expectations. We also expected to see some good growth in our services business, which is again what we saw.

We made a lot of advancements in our people, in technology and in our investments in 2023. That has set us up nicely for 2024 and beyond.

You observed record revenue and adjusted EBIT in 2023, which is significant. What about cash flow coming in?

Our business is a strong free cash flow business – very reliable, very stable. We’ve shown that over the number of years and 2023, with our record numbers, is just further evidence of that.

Let's delve into the extension you mentioned. Could you elaborate on that for our audience? I mean, the figures indicate an estimated $1.3 billion until 2053. That's undeniably a significant addition to your portfolio, isn't it?

It is. The extension that we signed with the Government of Saskatchewan in 2023 was a big deal. It's the first time that's happened in Canada for a number of years. What that does is gives us an additional 20 years on top of our current agreement with the government of Saskatchewan to operate the registries. That’s a nearly 30-year runway that we have right out to 2053 in terms of exclusive rights.

You've mentioned your forward-looking plan twice now. It's an ambitious goal to double the company's size by 2028. Could you elaborate on your current position and how you plan to achieve this target?

Since 2013, we have been really focused on growth. We've doubled the size of the company over the last 10 years and have a proven track record for both organic growth and creative M&A. We think that we can do the same thing and double the size of the company but do it in the next five years. We’ve been investing in our people and technology to position us to be able to do this.