ISC Announces Annual Guidance and Management Update for 2024 - Seite 2

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.

Our capital expenditures will also increase because of the enhancement of the Saskatchewan Registries but will remain immaterial overall. As a result, the Company expects to see robust free cash flow in 2024, which will support the de-leveraging of our balance sheet to realize a long-term net leverage target of 2.0x – 2.5x.

Management update
ISC also announces the upcoming retirement of Ken Budzak, Executive Vice President, Registry Operations, effective May 2024.

Mr. Budzak has been with ISC 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 CEO. " 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 our strategic objectives, while the strong team Ken has built will continue to provide the exceptional performance and service that our customers are accustomed to.

Notes
¹Adjusted EBITDA is not a recognized measure under International Financial Reporting Standards (“IFRS”) and does not have a standardized meaning prescribed by IFRS and, therefore, it may not be comparable to similar measures reported by other corporations. Please refer to section 8 for “Non-IFRS Financial Measures” and “Financial Measures and Key Performance Indicators” in Management’s Discussion and Analysis for the three and nine months ended September 30, 2023. Additionally, see the Non-IFRS Performance Measures section noted below.