TORONTO, Oct. 25, 2016 /CNW/ - DH Corporation (TSX:DH) ("D+H" or the "Company"), a leading provider of technology solutions to domestic and global financial institutions, reported its financial results for the three and nine months ended September 30, 2016.
Third Quarter 2016 Highlights
- Revenues increased 0.6% in the third quarter to $417.7 million compared with $415.1 million in the same quarter in the prior year.
- Adjusted revenues(1) in the third quarter decreased 0.1%, to $418.4 million from $418.8 million in the prior year period. By segment, Adjusted revenues increased 0.1%, to $90.5 million for Global Transaction Banking Solutions ("GTBS"); decreased 3.0%, to $147.3 million for Lending and Integrated Core ("L&IC") (Lending declined 6.7% while Integrated Core grew 1.5%) and, increased 2.3%, to $180.6 million in our Canadian segment (Lending increased 11.2% and Payments declined 8.0%).
- Income from operating activities before depreciation and amortization ("EBITDA")(1) in the third quarter decreased 16.5%, to $106.5 million from $127.5 million in the prior year period. The decrease in EBITDA was primarily due to a decrease in L&IC Lending revenues, Canadian segment cheque volume decline and changes in sales mix, higher expenses related to the Company's initiatives to align its global operations, and higher costs associated with risk management initiatives and product development primarily in the GTBS segment.
- Adjusted EBITDA(1) in the third quarter decreased 14.0% to $109.6 million (26.2% margin) in the third quarter, from $127.4 million (30.4% margin) in the same prior year period. Adjusted EBITDA removes the impacts of acquisition-related and restructuring-related expenses and other items. The Adjusted EBITDA margin reflects the change in sales mix in lending solutions in both our L&IC and Canadian segments, and the positive impact of the strengthening of the U.S. dollar in the Canadian business on certain balance sheet items.
- Consolidated net income of $16.6 million ($0.16 per share, diluted) in the third quarter decreased as compared to $30.7 million ($0.29 per share, diluted) in the prior year. The decrease is primarily due to a decline in EBITDA, partially offset by an increase in income tax recovery and a decrease in amortization of intangible assets.
- Adjusted net income(1) decreased 18.9% to $52.8 million in the third quarter from $65.2 million in the same period in the prior year primarily reflecting a decrease in EBITDA, partially offset by an increase in income tax recovery and a decrease in amortization on non-acquisition intangible assets. Adjusted net income per share, diluted(1) was $0.49 (107.0 million weighted average shares outstanding, diluted) in the third quarter compared to $0.61 (106.2 million weighted average shares outstanding, diluted) in the same period in the prior year. A reconciliation to Adjusted net income and Adjusted net income per share, diluted from net income and net income per share, diluted, respectively, can be found in section 10.1 of the MD&A.
- Net cash from operating activities increased by 29.8% in the third quarter, to $82.5 million from $63.6 million in the same period in prior year. Adjusted net cash from operating activities(1) increased by 5.8% in the third quarter, to $84.0 million from $79.4 million in the same prior year period.
- Loans, borrowings and convertible debentures totalled $1.9 billion at September 30, 2016 compared to $2.1 billion at December 31, 2015. The Company repaid $20.0 million of debt during the third quarter of 2016 and a total of $100.0 million since the acquisition of Fundtech.
- The Total Net Funded Debt to EBITDA(1) ratio was 3.071x at September 30, 2016, compared to 3.451x following the closing of the acquisition of Fundtech on April 30, 2015, and 3.185x at December 31, 2015.
Gerrard Schmid, Chief Executive Officer of DH Corporation, commented, "Our results in the quarter reflected an accelerated decline in Canadian cheque volumes, as well as delayed IT purchase decisions among large banks, most notably those outside the United States. We observed in the second quarter, and saw more visibly in the third quarter, a more cautionary stance among these institutions in light of broader economic conditions and we anticipate this may continue into 2017. However, we remain very encouraged by our growth prospects, especially in payments, as evidenced by the number and maturity of deals in which we are actively engaged."
Third Quarter and Year to Date 2016 Results
The selected financial information included in this press release is qualified in its entirety by, and should be read together with the unaudited condensed interim consolidated financial statements and the Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2016, which can be found at dh.com and in the disclosure documents filed by the Company with the securities regulatory authorities at sedar.com.
| Selected Consolidated Financial Information 2 |
Three months ended September 30 |
Nine months ended September 30 |
||||||||
| (C$ millions unless otherwise indicated, unaudited) |
2016 |
2015 |
2016 |
2015 |
||||||
| Revenues |
||||||||||
| Revenues |
$ |
417.7 |
$ |
415.1 |
$ |
1,254.0 |
$ |
1,082.5 |
||
| Add: Acquisition accounting adjustments |
0.7 |
3.7 |
3.9 |
8.0 |
||||||
| Adjusted revenues1 |
$ |
418.4 |
$ |
418.8 |
$ |
1,257.9 |
$ |
1,090.5 |
||
| EBITDA1 |
||||||||||
| EBITDA1 |
$ |
106.5 |
$ |
127.5 |
$ |
293.8 |
$ |
307.9 |
||
| Add: Acquisition accounting adjustments |
(0.8) |
0.9 |
(2.1) |
0.1 |
||||||
| Add: Acquisition-related and other charges |
(4.5) |
15.8 |
3.4 |
44.5 |
||||||
| Add: Realignment of global operations and related restructuring expenses |
6.0 |
— |
34.8 |
— |
||||||
| Add: Foreign exchange (gain) / loss |
2.4 |
(16.8) |
(0.8) |
(27.9) |
||||||
| Adjusted EBITDA1 |
$ |
109.6 |
$ |
127.4 |
$ |
329.1 |
$ |
324.6 |
||
| Adjusted EBITDA margin1 |
26.2% |
30.4% |
26.2% |
29.8% |
||||||
| Net Income |
||||||||||
| Net income |
$ |
16.6 |
$ |
30.7 |
$ |
26.8 |
$ |
70.7 |
||
| Add: Non-cash items |
54.4 |
41.3 |
163.9 |
114.9 |
||||||
| Add: Acquisition-related and other charges |
(4.5) |
15.8 |
3.4 |
44.5 |
||||||
| Add: Realignment of global operations and related restructuring expenses, |
6.0 |
— |
35.0 |
— |
||||||
| Add: Tax effect of above adjustments |
(19.7) |
(22.7) |
(71.8) |
(58.0) |
||||||
| Adjusted net income1 |
$ |
52.8 |
$ |
65.1 |
$ |
157.3 |
$ |
172.1 |
||
| Net income per share, diluted (C$) |
$ |
0.16 |
$ |
0.29 |
$ |
0.25 |
$ |
0.73 |
||
| Adjusted net income per share, diluted1 (C$) |
$ |
0.49 |
$ |
0.61 |
$ |
1.47 |
$ |
1.76 |
||
| Liquidity |
||||||||||
| Net cash from operating activities |
$ |
82.5 |
$ |
63.6 |
$ |
192.6 |
$ |
125.3 |
||
| Add: Acquisition-related and other charges |
(4.5) |
15.8 |
3.4 |
44.5 |
||||||
| Add: Realignment of global operations and related restructuring expenses |
6.0 |
— |
34.8 |
— |
||||||
| Adjusted net cash from operating activities1 |
$ |
84.0 |
$ |
79.4 |
$ |
230.8 |
$ |
169.8 |
||
| Uses of Adjusted net cash from operating activities1: |
||||||||||
| Capital expenditures |
(25.8) |
(30.8) |
(69.5) |
(75.6) |
||||||
| Cash Dividends |
(32.9) |
(24.0) |
(90.3) |
(69.1) |
||||||
| Adjusted net cash from operating activities after capital expenditures and |
$ |
25.3 |
$ |
24.6 |
$ |
71.0 |
$ |
25.1 |
||
| Net debt repayment |
(20.0) |
(20.0) |
(50.0) |
(126.5) |
||||||
| Adjusted net cash from operating activities after capital expenditures, cash |
$ |
5.3 |
$ |
4.6 |
$ |
21.0 |
$ |
(101.4) |
||
Adjusted revenue by type for the three and nine months ended September 30, 2016.
| Adjusted revenues by type 1, 2 |
||||||||||||
| (In thousands of dollars, unless |
Three months ended September 30 |
Nine months ended September 30 |
||||||||||
| 2016 |
2015 |
$ Change |
% Change |
2016 |
2015 |
$ Change |
% Change |
|||||
| SaaS |
$109,533 |
26% |
$106,107 |
25% |
$3,426 |
3.2% |
$319,143 |
25% |
$260,012 |
24% |
$59,131 |
22.7% |
| Software Licenses (Perpetual |
46,872 |
11% |
52,708 |
13% |
(5,836) |
(11.1)% |
139,255 |
11% |
133,622 |
12% |
5,633 |
4.2% |
| Maintenance |
58,418 |
14% |
58,177 |
14% |
241 |
0.4% |
175,468 |
14% |
140,136 |
13% |
35,332 |
25.2% |
| Professional Services |
32,989 |
8% |
32,973 |
8% |
16 |
0.0% |
106,267 |
8% |
70,588 |
6% |
35,679 |
50.5% |
| Transaction Processing Services |
87,701 |
21% |
77,920 |
19% |
9,781 |
12.6% |
254,315 |
20% |
227,836 |
21% |
26,479 |
11.6% |
| Canadian Payments |
75,739 |
18% |
82,287 |
20% |
(6,548) |
(8.0)% |
237,881 |
19% |
237,363 |
22% |
518 |
0.2% |
| Other 4 |
7,193 |
2% |
8,590 |
2% |
(1,397) |
(16.3)% |
25,640 |
2% |
20,899 |
2% |
4,741 |
22.7% |
| Total |
$418,445 |
100% |
$418,762 |
100% |
$(317) |
(0.1)% |
$1,257,969 |
100% |
$1,090,456 |
100% |
$167,513 |
15.4% |
Revenues and Adjusted revenues by service area for the three and nine months ended September 30, 2016.
| Revenues and Adjusted revenues by Service Area1,2 |
Three months ended September 30 |
Nine months ended September 30 |
||||||||||
| (C$ millions unaudited) |
2016 |
2015 |
2016 |
2015 |
||||||||
| Revenues by service area |
||||||||||||
| Lending solutions |
$ |
180.8 |
$ |
175.3 |
$ |
524.1 |
$ |
505.4 |
||||
| Global transaction banking solutions |
90.5 |
87.9 |
275.0 |
143.0 |
||||||||
| Payments solutions |
75.7 |
82.3 |
237.9 |
237.4 |
||||||||
| Integrated core solutions |
70.7 |
69.7 |
217.0 |
196.7 |
||||||||
| Total revenues |
$ |
417.7 |
$ |
415.2 |
$ |
1,254.0 |
$ |
1,082.5 |
||||
| Adjusted revenues1 by service area |
||||||||||||
| Lending solutions |
$ |
181.4 |
$ |
176.3 |
$ |
526.2 |
$ |
509.0 |
||||
| Global transaction banking solutions |
90.5 |
90.4 |
276.4 |
146.9 |
||||||||
| Payments solutions |
75.7 |
82.3 |
237.9 |
237.4 |
||||||||
| Integrated core solutions |
70.8 |
69.8 |
217.5 |
197.2 |
||||||||
| Total Adjusted revenues1 |
$ |
418.4 |
$ |
418.8 |
$ |
1,258.0 |
$ |
1,090.5 |
||||
Results by segment for the three and nine months ended September 30, 2016.
| Results by Segment 2 |
Three months ended September 30 |
|||||||||||||||||||||||||||||
| (C$ millions unless otherwise |
GTBS |
L&IC |
Canada |
Corporate |
Consolidated |
|||||||||||||||||||||||||
| 2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
|||||||||||||||||||||
| Revenues |
$ |
90.5 |
$ |
87.9 |
$ |
146.6 |
$ |
150.6 |
$ |
180.6 |
$ |
176.6 |
— |
— |
$ |
417.7 |
$ |
415.1 |
||||||||||||
| Expenses |
76.1 |
69.0 |
100.3 |
90.1 |
130.8 |
129.4 |
$ |
4.0 |
$ |
(1.0) |
$ |
311.2 |
$ |
287.5 |
||||||||||||||||
| EBITDA1 |
$ |
14.4 |
$ |
18.9 |
$ |
46.3 |
$ |
60.5 |
$ |
49.8 |
$ |
47.2 |
$ |
(4.0) |
$ |
1.0 |
$ |
106.5 |
$ |
127.6 |
||||||||||
| EBITDA margin1 |
15.9% |
21.4% |
31.6% |
40.2% |
27.6% |
26.7% |
— |
— |
25.5% |
30.7% |
||||||||||||||||||||
| Adjusted revenues1 |
$ |
90.5 |
$ |
90.4 |
$ |
147.3 |
$ |
151.8 |
$ |
180.6 |
$ |
176.6 |
— |
— |
$ |
418.4 |
$ |
418.8 |
||||||||||||
| Adjusted EBITDA1 |
$ |
14.4 |
$ |
20.7 |
$ |
45.5 |
$ |
59.6 |
$ |
49.8 |
$ |
47.2 |
— |
— |
$ |
109.7 |
$ |
127.5 |
||||||||||||
| Adjusted EBITDA margin1 |
15.9% |
22.9% |
30.9% |
39.2% |
27.6% |
26.7% |
— |
— |
26.2% |
30.4% |
||||||||||||||||||||
| Results by Segment 2 |
Nine months ended September 30 |
|||||||||||||||||||||||||||||
| (C$ millions unless otherwise |
GTBS |
L&IC |
Canada |
Corporate |
Consolidated |
|||||||||||||||||||||||||
| 2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
|||||||||||||||||||||
| Revenues |
$ |
275.0 |
$ |
143.0 |
$ |
441.9 |
$ |
428.2 |
$ |
537.1 |
$ |
511.3 |
— |
— |
$ |
1,254.0 |
$ |
1,082.5 |
||||||||||||
| Expenses |
219.5 |
112.9 |
307.1 |
273.4 |
396.3 |
371.8 |
$ |
37.4 |
$ |
16.6 |
$ |
960.3 |
$ |
774.7 |
||||||||||||||||
| EBITDA1 |
$ |
55.5 |
$ |
30.1 |
$ |
134.8 |
$ |
154.8 |
$ |
140.8 |
$ |
139.5 |
$ |
(37.4) |
$ |
(16.6) |
$ |
293.7 |
$ |
307.8 |
||||||||||
| EBITDA margin1 |
20.2% |
21.0% |
30.5% |
36.2% |
26.2% |
27.3% |
— |
— |
23.4% |
28.4% |
||||||||||||||||||||
| Adjusted revenues1 |
$ |
276.4 |
$ |
146.9 |
$ |
444.4 |
$ |
432.2 |
$ |
537.1 |
$ |
511.3 |
— |
— |
$ |
1,257.9 |
$ |
1,090.4 |
||||||||||||
| Adjusted EBITDA1 |
$ |
56.1 |
$ |
32.9 |
$ |
132.2 |
$ |
152.1 |
$ |
140.9 |
$ |
139.5 |
— |
— |
$ |
329.2 |
$ |
324.5 |
||||||||||||
| Adjusted EBITDA margin1 |
20.3% |
22.4% |
29.8% |
35.2% |
26.2% |
27.3% |
— |
— |
26.2% |
29.8% |
||||||||||||||||||||
Segment results in U.S. dollars for the three and nine months ended September 30, 2016.
| Revenues, Adjusted revenues1 and Adjusted EBITDA1 |
Three months ended September 30 |
Nine months ended September 30 |
||||||||||
| (US$ millions except where noted, unaudited) |
2016 |
2015 |
2016 |
2015 |
||||||||
| GTBS Segment Revenues, Adjusted revenues1 and |
||||||||||||
| GTBS Segment revenues 3 |
$ |
69.3 |
$ |
67.0 |
$ |
208.4 |
$ |
111.9 |
||||
| GTBS Segment Adjusted revenues 1,3 |
$ |
69.3 |
$ |
68.9 |
$ |
209.5 |
$ |
115.0 |
||||
| GTBS Segment Adjusted EBITDA 1,3 |
$ |
11.0 |
$ |
15.7 |
$ |
42.7 |
$ |
25.7 |
||||
| GTBS Segment Adjusted EBITDA margin 1,3 |
15.8% |
22.8% |
20.4% |
22.3% |
||||||||
| L&IC Segment revenues |
||||||||||||
| Lending solutions |
$ |
58.2 |
$ |
61.7 |
$ |
170.3 |
$ |
183.6 |
||||
| Integrated core solutions |
54.2 |
53.2 |
164.3 |
156.1 |
||||||||
| Total L&IC Segment revenues |
$ |
112.4 |
$ |
114.9 |
$ |
334.6 |
$ |
339.7 |
||||
| L&IC Segment Adjusted revenues1 and Adjusted EBITDA1 |
||||||||||||
| Lending solutions |
$ |
58.6 |
$ |
62.6 |
$ |
171.9 |
$ |
186.4 |
||||
| Integrated core solutions |
54.3 |
53.3 |
164.6 |
156.4 |
||||||||
| Total L&IC Segment Adjusted revenues1 |
$ |
112.9 |
$ |
115.9 |
$ |
336.5 |
$ |
342.8 |
||||
| L&IC Segment Adjusted EBITDA 1 |
$ |
34.9 |
$ |
45.4 |
$ |
100.3 |
$ |
120.3 |
||||
| L&IC Segment Adjusted EBITDA margin 1 |
30.9% |
39.2% |
29.8% |
35.1% |
||||||||
| 1. |
Non-IFRS measure. See the "Use of Non-IFRS Financial Information" section of this press release for further details. |
| 2. |
Totals may not add due to rounding. |
| 3. |
Reported results for GTBS begin as of closing of the acquisition of Fundtech on April 30, 2015 and include the period from April 30, 2015 through September 30, 2015. |
| 4. |
Other includes hardware sales, conference revenues and other billable costs. |
Dividend
DH Corporation today announced that its Board of Directors has declared a quarterly dividend of $0.32 per common share payable on December 30, 2016 to shareholders of record at the close of business on December 15, 2016. The dividend is an eligible dividend for Canadian income tax purposes.
Suspension of Dividend Reinvestment Plan
The Company also announced that it has suspended its dividend reinvestment plan ("DRIP") effective October 25, 2016. Shareholders that were enrolled in the DRIP will therefore receive the regular cash dividend for all future dividends, including for the dividend payable on December 30, 2016.
Outlook
In the fourth quarter of 2016 and in fiscal 2017, the Company intends to continue with the strategy outlined in Management's Discussion and Analysis for the three and nine months ended September 30, 2016. In addition, the Company will focus on the following initiatives:
- Disciplined focus on cost management in light of uncertain market conditions;
- Disciplined and strategic focus on organic revenue growth;
- Enhancing capabilities in software engineering and product management, including employing agile development practices across our main product groups;
- Optimize our products by increasing investment in innovation and next generation financial technologies and rationalizing certain products;
- Continue to embed our new global operating model to more effectively manage a global business;
- Continuing to strengthen our risk management practices and regulatory compliance capabilities; and
- Continued reduction in leverage.
Although the Company continues to include acquisitions as part of its growth and diversification strategy, the focus in the near term will be on organic activities, including investing capital to advance our existing solutions and product offerings to customers, cross-selling, reduction of financial leverage and operating effectiveness.
During the second quarter and into the third quarter the Company noted an increasing focus from global financial institutions on macro global economic conditions, particularly in our GTBS segment where we primarily serve large global financial institutions. There is growing evidence of a broader, more cautionary stance in terms of technology spend by these banks, most notable among banks outside the United States, which we believe will continue to impact the timing of implementations and decisioning among these institutions. Additionally, in certain markets, financial institutions continue to assess the potential impact of the exit of the United Kingdom from the European Union ("Brexit"), and other unrelated regulatory events that are consuming technology resources and spend. We believe that each of these factors will cause some headwinds in demand for technology solutions.
As an offset, increasing regulatory requirements will continue to help create demand for several of our products. We have seen evidence of this on four fronts: (i) in markets where faster payments have been adopted, (ii) in new markets turning to faster payments (like Hong Kong) (iii) in the US market with changes in lending regulations, lastly, (iv) in markets with changing payments regulation like the European Union via the Payment Services Directive.
In the United States, where the economic environment is more positive, we do not currently see a change in economic conditions that we would expect to negatively affect our business.
In Canada, where economic growth is increasingly muted, we anticipate slowing lending volumes as well as ongoing declines in cheque volumes.
For further information on management's outlook by segment for 2016, please refer to section 3 of the MD&A for the three and nine months ended September 30, 2016.
In 2016, given our results in the third quarter, the uncertain economic environment, potentially higher cheque volume declines, and our outlook for the remainder of the year, our estimate for growth in 2016 is revised as follows:
- Revenue growth, as reported, in the range of 10% to 12%
- Adjusted revenue growth on a proforma constant currency basis of 0% to 2%
- EBITDA decline of between 6% to 0%, with EBITDA margins of between 24% to 25%
- Adjusted EBITDA decline of between 7% to 3%, with Adjusted EBITDA margins in the range of 27% to 28%
The 2016 outlook is revised due to the following:
- In the Canada segment, our payments solutions revenue declined in the third quarter as cheque volume declines accelerated. These revenues are expected to continue to decline.
- In our GTBS segment, both revenue and income from operating activities before depreciation and amortization have been impacted by slower decision-making by customers that first arose in the second quarter and continued into the third quarter. Our current forecast is based on revised estimates of current contracting activities.
- EBITDA has also been impacted by increased costs related to various risk initiatives. Additionally, the savings expected in Adjusted EBITDA in 2016 from our operating realignment have been slower to realize than expected.
- The difference between actual foreign exchange assumptions from our planned rates negatively impacted Adjusted revenues by approximately $26 million and Adjusted EBITDA by approximately $8 million.
Our outlook for fiscal 2017 will be influenced by:
- Strength of our fourth quarter sales activities which is historically our most active sales quarter;
- Growth in our payment technologies with some potential impact from further IT buying decision delays caused by macroeconomics uncertainty;
- Growth in our L&IC business as LaserPro contract renewed patterns strengthen; and
- Some moderation in Canadian segment revenue as cheque volumes decline and lending volumes potentially soften.
The Company will provide financial guidance for fiscal 2017 including for revenues, EBITDA and Adjusted EBITDA, net income and adjusted net income per share in addition to capital expenditures and debt repayment on or before we report on the fourth quarter and year results. In addition, the Company will provide revenue by type and bookings, quarterly, and backlog annually.
MANAGEMENT CONFERENCE CALL AND WEBCAST
Teleconference:
A conference call to review these financial results, including a presentation, will take place at 6:00 p.m. (EDT) on Tuesday, October 25, 2016 hosted by Chief Executive Officer Gerrard Schmid and Chief Financial Officer Karen H. Weaver. To access the call, please dial 647-427-7450 (Local/Int'l) or 1-888-231-8191 (toll-free within North America). A replay of the call will also be available until November 2, 2016 by dialing 416-849-0833 (Local/Int'l) or 1-855-859-2056 (toll-free within North America), with Encore Password 91645744.
Webcast:
The conference call will also be webcast at
http://event.on24.com/r.htm?e=1278872&s=1&k=C123D7538DFBC17F1384E4A43FB5BBEE
and will be archived for 90 days after the call. The link to the webcast and an accompanying slide presentation will be posted in the Investors section of the D+H website under Events and Presentations at http://www.dh.com/investors/investor-events.
ABOUT D+H
D+H (TSX: DH) is a leading financial technology provider that the world's financial institutions rely on every day to help them grow and succeed. Our global payments, lending and financial solutions are trusted by nearly 8,000 banks, specialty lenders, community banks, credit unions, governments and corporations. Headquartered in Toronto, Canada, D+H has more than 5,500 employees worldwide who are passionate about partnering with clients to create forward-thinking solutions that fit their needs. With annual revenues in excess of $1.5 billion, D+H is recognized as one of the world's top FinTech companies on IDC Financial Insights FinTech Rankings and American Banker's FinTech Forward rankings. For more information, visit dh.com
USE OF NON-IFRS FINANCIAL INFORMATION
D+H's financial results are prepared in accordance with International Financial Reporting Standards ("IFRS"). D+H reports several non-IFRS financial measures, including "Adjusted revenues", "Bookings", "Constant Currency", "Proforma Adjusted Revenues", "EBITDA", "EBITDA margin" (EBITDA divided by revenues), "Adjusted EBITDA", "Adjusted EBITDA margin" (Adjusted EBITDA divided by Adjusted revenues), "Adjusted net income", "Adjusted net income per share (diluted)" and "Adjusted net cash from operating activities". D+H also reports "Debt to EBITDA ratio", which is also not a defined term under IFRS. See "Non-IFRS financial measures and key performance indicators" in D+H's MD&A for the three and nine months ended September 30, 2016 for a more complete description of these terms and for reconciliations to their most directly comparable IFRS measure, where applicable. Any non-IFRS financial measures should be considered in context with the IFRS financial statement presentation and should not be considered in isolation or as a substitute for IFRS revenues, net income or cash flows. Furthermore, D+H's financial measures may be calculated differently from similarly titled financial measures of other companies.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"), including without limitations, the statements contained in section entitled "Objectives, strategy and outlook". Statements concerning D+H's objectives, goals, strategies, priorities, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of D+H are forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would", "could", "should", "continue", "goal", "objective", and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
Certain material factors and assumptions were applied in providing these forward-looking statements. Forward-looking information involves numerous assumptions including projections, completion of bookings, successful project implementation, operating expense levels, volumes and values for products and transaction processing services in the Canadian segment and implementation of our global operating realignment. Projections maybe impacted by macroeconomic factors, changes in the value of the Canadian and U.S. dollar relative to other currencies, the timing of client decisioning on technology investments, the pace of implementation of technology by the customer, in addition to other factors not controllable by the Company. D+H has also made certain macroeconomic and general industry assumptions in the preparation of such forward-looking statements. Management believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, Management can give no assurance that actual results will be consistent with these forward-looking statements. Not all factors which affect our forward-looking information are known, and actual results may vary from the projected results in a material respect, and may be above or below the forward-looking information presented in a material respect.
A comprehensive discussion of the risks that impact D+H can be found on the Company's most recently filed Annual Information Form and the most recently filed annual MD&A for the year ended December 31, 2015, available on SEDAR at www.sedar.com. Risks and uncertainties related to the Company have not significantly changed since the filing of the 2015 Annual Information Form and the 2015 annual MD&A.
D+H does not undertake any obligation to update forward-looking statements should the factors and assumptions related its plans, estimates, projections, beliefs and opinions, including those listed above, change except as required by applicable securities laws.
All of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company.
REGULATORY FILINGS AND ADDITIONAL INFORMATION
DH Corporation is listed on the Toronto Stock Exchange under the symbol DH. Further information can be found at dh.com and in the disclosure documents filed by DH Corporation with the securities regulatory authorities at sedar.com.
SOURCE DH Corporation
Karen H. Weaver, Chief Financial Officer, D+H, Anthony Gerstein, Head, Investor Relations, D+H [email protected] or visit our website at dh.com
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